Nick Tumilowicz is the Director of Product Management for Distributed Energy Management at Itron. With 25 years of experience in the energy industry, he focuses on advancing global markets toward energy flexibility and a clean energy future. In his current role, he leads Itron’s Distributed Energy Management business unit, overseeing the global development of the company’s Grid Edge DERMS Platform, which includes Energy Forecasting, Demand Response, and Consumer Engagement solutions designed to enhance access to flexible customer energy resources.
Itron develops solutions for utilities and cities to manage energy and water more efficiently. With customers in over 100 countries, the company designs technologies aimed at improving resource management, enhancing operational efficiencies, and promoting sustainability. As AI and cryptocurrency adoption continue to grow, increasing energy demands could lead to power outages, rising electricity costs, and the need for significant power grid upgrades. Itron is scaling its solutions to help utilities address these challenges by optimizing grid performance, enabling demand response, and enhancing energy forecasting to support a more resilient and sustainable infrastructure.
You’ve had a diverse career path from mechanical engineering to managing one of the largest renewable power plant fleets globally. How has this experience shaped your current approach to distributed energy management?
As the director of product for distributed energy management at Itron, my varied career across the energy sector has directly influenced my strategic approach to energy management. Beginning as an industrial engineer, I gained a foundational understanding of complex manufacturing processes, which was further enriched by challenges faced during my tenure at the Naval Research Lab, especially with long-term technology planning and navigating government contracts. My roles with leading Independent Power Producer (IPP) renewable energy companies taught me the intricate balance between standalone microgrids and grid-connected systems. My time at the Electric Power Research Institute (EPRI) significantly enriched my global energy perspective, helping to strategize and plan for future energy demands and driving decarbonization efforts. It is one of several pivotal experiences that guide my strategic decisions daily and inform every aspect of my current role.
With your experience at Itron and previously at SunEdison and EPRI, what major trends have you observed in the renewable energy sector, and how do these trends align with the growing energy demands of crypto mining farms, data centers, and AI applications?
In my years at Itron, and previously at SunEdison and EPRI, I’ve observed several key trends within the renewable energy sector that align closely with today’s rising energy demands from industries like cryptocurrency mining, data centers and artificial intelligence (AI). Firstly, the cost of renewable technologies, especially solar, has seen a significant decrease. When I entered the field in the early 2000s, the cost to install solar was around $10 per watt. Today, these costs have dropped to less than $1 per watt, installed. Secondly, the evolution of technology has streamlined the once cumbersome process of integrating various components into a more efficient, cohesive solution. For example, energy storage deployments ten years ago consisted of a patchwork quilt of solutions that were not fully harmonized, integrated, and long-term tested for cost optimization and reliability. Today, solar, batteries and now AMI are consolidating into comprehensive solutions toward grid edge intelligence.
These trends are particularly relevant as we see an increasing demand for sustainable energy solutions from sectors that require substantial amounts of power. Data centers and AI applications, for instance, consume considerable energy, which is prompting a shift in how customers and their utilities manage their loads. There’s a growing trend toward establishing grid-enabled microgrids in areas with high concentrations of data centers. This proactive approach not only meets their immediate energy needs but also aligns with broader goals for sustainability and efficiency in energy use.
The energy demands from data centers, AI and cryptocurrency are expected to double by 2026. How do you see renewable energy solutions, like solar and storage, playing a role in meeting these demands?
As we anticipate the doubling of energy demands from data centers, AI and cryptocurrency mining by 2026, renewable energy solutions, particularly solar and energy storage, will become essential. The decreasing costs of solar installations now make it viable for large facilities to deploy solar arrays extensively. This shift not only meets their energy, reliability and economic goals, but also promotes a more sustainable energy footprint.
Integrating solar energy with local battery storage and energy management systems further enhances this capability. For sectors like cryptocurrency and AI, where cooling demands are substantial, these integrated systems can dynamically manage energy use. Adjusting power usage during peak times ensures continuous operation and grid stability, offering a robust response to the challenges posed by increased energy consumption.
What role can distributed energy resources (DERs) such as electric vehicles, solar and storage play in supporting the increased loads on the grid from energy-intensive technologies like AI and crypto mining?
Distributed energy resources (DERs) such as electric vehicles, solar panels and battery storage are becoming increasingly vital in supporting the additional loads imposed on the grid by energy-intensive technologies like AI and cryptocurrency mining. For regions like Northern Virginia, which hosts a high concentration of data centers, the deployment of local DERs can significantly alleviate the burden on the main power grid. By generating energy on site, these facilities can enhance their operational reliability while reducing overall grid dependency.
Moreover, the strategic use of DERs extends beyond reliability to include economic advantages. There is a growing practice of dynamic load management, where operations are adjusted in response to utility price signals. For example, during periods when energy prices peak, facilities might reduce their energy consumption or even sell surplus power back to the grid. This capability not only helps stabilize grid conditions during demand spikes but also allows companies to monetize their investments in DERs, turning what is essentially an operational necessity into a potential profit center.
Given your experience with grid modernization, how can utilities balance the transition to renewable energy while ensuring grid reliability, especially with the rise of energy-hungry sectors?
Balancing grid modernization with the integration of renewable energy sources is fundamentally about leveraging existing infrastructure more intelligently. For instance, rather than completely overhauling infrastructure when challenges arise—as we notice with power flickers in the neighborhood due to an overwhelmed transformer—utilities can implement smart grid technologies. These technologies enable more effective load management through software solutions, thereby preserving existing grid assets, saving customers money on their energy bills. Utilities can modulate loads dynamically, rather than replacing physical components. Additionally, by utilizing tools like time-of-use billing, utilities can strategically shift demand to off-peak times, alleviating stress on the grid during high-demand periods and minimizing the necessity for extensive physical upgrades.
What are the current barriers to integrating more renewables into the power grid for sectors like data centers, and how can these challenges be overcome with technology?
One significant barrier to integrating more renewable energy sources into the power grid, particularly for sectors like data centers, is the inherent variability of these energy sources. Traditionally, utilities would cap interconnections at 500 kilowatts to accommodate worst-case scenarios. However, advancements in technology now allow for better management of these connections. There is considerable underutilized capacity within the grid, and by implementing sensors and smart meters at the grid’s edge—like in residential areas—we can significantly enhance load distribution optimization.
For instance, in scenarios where local transformers are stressed by unexpected loads—such as a neighbor acquiring an electric vehicle—utilities no longer need to resort only to costly substation, service transformer or service conductor upgrades. Instead, they can employ grid and customer optimized software solutions to manage and balance the load more efficiently. This approach not only addresses immediate needs but does so without the need for extensive capital investments in new infrastructure.
How can utilities and technology providers work together to ensure that the integration of renewable energy sources does not compromise the reliability or affordability of the grid?
Utilities and technology providers must collaborate closely to deploy software and data-driven solutions that optimize grid performance. By incorporating smart meters, utilities are equipped to monitor and manage energy loads in real time, thereby adjusting usage patterns as needed to prevent overloading. This strategic approach not only helps in maintaining grid stability and keeping energy costs affordable but also ensures that the economic benefits of renewable energy, such as solar and wind, are effectively transferred to consumers. This partnership between utilities and technologists is crucial for harmonizing the growth of renewable sources with grid reliability and cost-efficiency.
With aging infrastructure and increasing pressure from electrification and renewable integration, how can utilities accelerate the modernization of their grids to handle new demands from sectors like AI and EVs?
To address the challenges posed by aging infrastructure and the rising demands from electrification and renewable integration, utilities should adopt a targeted approach to grid modernization. Instead of overhauling the entire system, focusing on specific areas of concern—such as transformers in neighborhoods with high electric vehicle usage—can provide immediate relief. Utilizing smart software to evenly distribute load can mitigate the immediate need for costly infrastructure upgrades. By employing predictive maintenance and advanced planning tools, utilities can implement gradual upgrades, ensuring that the grid remains robust and capable of meeting new demands without extensive replacements. This localized and incremental approach to modernization allows for more manageable adaptations to the evolving energy landscape.
How do smart grids and grid edge intelligence improve the ability of utilities to manage distributed energy resources and support the growth of AI, crypto and data centers?
Smart grids and grid edge intelligence equip utilities with enhanced capabilities to anticipate demand growth and manage distributed energy resources effectively. By leveraging advanced forecasting tools, utilities can proactively predict and respond to energy demand spikes, allowing for strategic grid infrastructure planning. Additionally, the implementation of real-time sensors across the grid facilitates detailed load monitoring, ensuring that utilities can adapt to the needs of new and expanding facilities, such as those required for AI and cryptocurrency operations. This detailed insight and proactive management are crucial in maintaining system reliability and responsiveness as demand patterns become increasingly dynamic and unpredictable.
Itron has been a leader in providing grid management solutions. What advancements in smart grid technologies do you see as critical to enabling the next generation of decentralized, renewable-centric energy systems?
Today, we are demonstrating a sea of change in deployment of smart grid technology and innovation. Itron is responding to utility and customer feedback to leverage existing infrastructure investments, to plan, see and manage customer energy resources. This accelerates social climate goals at the lowest cost possible with reduced barriers to entry. Decarbonization and electrification is moving the grid pain point toward the edge, and we can now solve this problem at its root, the customer premise. By accessing flexible customer energy resources, we can optimize the bidirectional power flow of electrons to improve reliability, power quality, customer choice and customer comfort.
Among the most significant advancements in smart grid technologies is the integration of distributed intelligence throughout the grid. By incorporating AI and machine learning into grid devices, such as smart meters, we can achieve a high degree of energy optimization at the local level. This capability allows for real-time communication between smart meters and various devices, including inverters for solar panels and electric vehicle chargers. This ensures that grid stability is maintained even under fluctuating demand conditions.
Such technological enhancements not only streamline the management of decentralized energy systems but also empower consumers to take more active control of their energy usage. This shift is instrumental in facilitating a broader adoption of renewable energy sources, positioning utilities to better meet future energy needs in an increasingly decentralized and renewable-focused landscape.
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