Balancing Electricity Supply and Demand
Electricity is essential for nearly every aspect of daily life—so essential that we rarely think about how it’s produced and delivered to our homes. You might be surprised to learn that behind the scenes, a network of experts works daily (and even by the minute) to anticipate how much electricity you need before using it.
We’re all connected to the electric grid, so 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.
Powerful sources
First, electricity must be generated at a power plant using either traditional sources, such as coal, natural gas, or nuclear energy, or renewable sources, such as solar, wind, or hydropower.
At JOEMC, we work closely with North Carolina Electric Cooperatives, our local 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 your home or business. By maintaining a diverse energy mix—nuclear, natural gas, renewables (including hydro), and coal—JOEMC 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 JOEMC works with our wholesale power partner, which is also a cooperative, we can pool resources and expertise to deliver affordable power to our local communities.
Electricity supply changes throughout the day because demand fluctuates based on consumers’ needs. For example, the co-op knows that we need to ensure more electricity in the mornings when you start your day and in the evenings when you cook dinner, run appliances, and watch TV. Demand also increases when weather patterns change, such as extremely warm or cold temperatures.
Managing supply and demand across the grid
Other 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 places, individual electric utilities perform these tasks. These 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 and take measured steps to ensure there’s enough supply to meet demand.
Looking ahead
As the energy sector undergoes rapid change, all consumers need 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 expected to at least double by 2050. At the same time, energy policies are pushing the early retirement of always-available generation sources, which will undoubtedly compromise reliable electricity. JOEMC remains committed to providing affordable, reliable energy to our members. That’s why we are actively 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 complex. We have a network of utilities, power plant operators, and energy traffic managers to direct the electricity we need and keep the electric grid balanced.
