Electricity is essential for nearly every aspect of daily life. We expect it all day every day and rarely think about how it is produced and delivered to our homes. You might be surprised to learn that, behind the scenes, a network of experts is working daily (and even by the minute) to anticipate how much electricity is needed before it is used. This is critical because we are all connected to the electric grid, and ensuring the right amount of electricity for all involves a complex process of forecasting energy demand, planning for capacity, and securing enough supply to meet Americans’ needs. It is a balancing act.

POWER SOURCES

Electricity must be generated at a power plant using either traditional sources, like coal, natural gas, or nuclear energy, or renewable sources, such as solar, wind, or hydropower.

At Warren County REMC, we work closely with Wabash Valley Power Alliance, our Indiana-based wholesale power partner, to secure enough electricity for our communities. We use a diverse mix of energy sources to generate the power we deliver to homes, business, schools and farms. By maintaining a diverse energy mix — coal, natural gas, wind and solar — Warren County REMC has options to ensure reliable power at a competitive cost.

On a larger scale, electricity supply and demand across the country are managed through a market that includes long-term planning agreements, where electricity is bought and sold, just like other common goods and services. Because Warren County REMC works with Wabash Valley Power Alliance, which is also a cooperative, we pool resources and expertise to deliver affordable power to our communities.

Electricity supply changes throughout the day because demand fluctuates based on member-consumers’ needs. For example, Warren County REMC knows we need to ensure more electricity is available in the mornings when you’re starting your day and in the evenings when you’re cooking dinner, running appliances, and watching TV. Demand also increases when weather patterns change, such as extremely warm or cold temperatures.

MANAGING SUPPLY AND DEMAND ACROSS THE GRID

Electric utilities across the country are managing the same task of balancing supply and demand, which is why we have a larger network of key players in place to ensure enough power is delivered across the grid.

In most cases, the amount of electricity generated and how much is sent to specific areas are coordinated and monitored by regional transmission organizations (RTOs) and independent system operators (ISOs). In other areas, individual electric utilities perform these tasks.

RTOs, ISOs, and electric utilities act as air traffic controllers for the electric grid. They forecast when you, your neighbors, and communities across a large region will need more power. These organizations take measured steps to ensure there’s enough supply to meet demand.

THE FUTURE AND YOU

As the energy sector undergoes rapid change, it is important for all consumers to understand the basics of electricity supply and demand.

Electricity use in the U.S. is expected to rise to record highs this year and next, with the demand for electricity projected to at least double by 2050. At the same time, energy policies are pushing the early retirement of always-available generation sources, which has the potential to compromise reliable electricity.

Warren County REMC remains committed to providing affordable, reliable energy to the members we serve. That is why we are preparing now for increased demand and other challenges that could compromise our local electric supply.

Managing the balancing act of electricity supply and demand is a complex job, which is why we have a network of utilities, power plant operators, and energy traffic managers in place to direct the electricity we need and keep the electric grid balanced.

To learn more about Warren County REMC’s power supply, please contact our office.