Last week, more than 700 million people in India were without power. Experts say the outage was the worst in world history, and warn the same thing could happen in the U.S., especially as our nation’s power grid continues to age.
Since the U.S. is connected through a vast network of computers and data centers that consume enormous amounts of electricity, our nation’s demand for power has increased by 25 percent. As we continue to make technological advancements, we increase the burden on an analog power grid that is inefficient and surging demand, susceptible to inclement weather and even a cyber terrorist attack.
Experts say a one second power outage among industrial and digital firms can cost up to $1,477. That being said, the average power outage in the U.S. can cost the economy $104 billion to $164 billion every year. If what happened in India occurred in the U.S., our economy would plummet.
However, fixing the grid would cost the country two trillion dollars, or about 14 percent of our nation’s GDP. Because of the high costs and a lack of funding, there are no plans in place to re-create or even fix the current system.
The energy industry says the problem stems from a lack of funds and influx of regulations. The 3,200 utility companies are heavily regulated by government agencies to ensure consumers are not overcharged, but the current system has also left us with a power grid that no one is solely responsible for.