Legacy Grid, New Demands: Bridging The Gap In Our Electrification Boom

Forbes

05-08-2025

Dr. Michael Ponting is Chief Scientific Officer at Peak Nano, a leading innovator in advanced capacitor films, specialty films, and optics.
America's power grid is at a crossroads. As we stand on the brink of an electrification boom, driven by AI, electric vehicles (EVs), data centers and the promise of fusion energy, our aging infrastructure is under unprecedented strain, facing demands it was never designed to meet.
The stakes are high: Every blackout, supply chain disruption and overheating substation reminds us that the future we envision cannot exist without a resilient, modern power grid. Grid-enhancing technologies are essential to manage these new pressures.
A Grid Built For Yesterday, Facing Tomorrow's Challenges
The U.S. power grid was built for a different era, when demand was predictable and technology advanced slowly. Today, extreme weather events such as wildfires, hurricanes and summer heatwaves push our grid to the brink, causing blackouts and exposing the limits of outdated materials and systems. These vulnerabilities aren't hypothetical. They're disrupting communities now. As AI, EVs, data centers and eventually fusion energy accelerate electrification, the pressure on the grid will only intensify.
After nearly 20 years of flat demand, the U.S. faces a surge in energy consumption that requires significant grid expansion. AI, cloud computing and data storage are driving this growth. According to McKinsey, data centers alone are projected to account for 30-40% of new electricity demand through 2030. They consumed around 178 terawatt-hours (TWh) of electricity in 2024, a number that could soar to 606 TWh by 2030—tripling their share to 12% of total U.S. electricity use.
This is already driving up utility costs. Bloomberg reported a $9.4 billion increase for the largest U.S. grid in June 2025, costs that will ultimately be passed on to consumers.
The Right Materials For The Job
The grid of our future demands higher temperature switches, increased voltages and more durable, easy-to-integrate components. This is something I know all too well as the chief scientific officer at Peak Nano, an innovator in capacitor films and more.
The right materials could make or break our energy supply. Current capacitors that store, transfer and deliver power use industry-standard biaxially oriented polypropylene (BOPP), which cannot withstand today's extreme conditions, particularly heatwaves. BOPP performance degrades at high temperatures, forcing utilities to install more capacitors, add cooling infrastructure and replace them more frequently.
Beyond Capacitors: The Broader Technology Imperative
Capacitor films are just one piece of the puzzle. Legacy grid components must be modernized to handle higher loads and temperatures. Technologies such as dynamic line ratings, power flow controllers, topology optimization software and conductors are critical.
We can also leverage AI for energy management, along with digital advancements like solid-state transformers and high-frequency switching, which will strengthen the grid.
Reshoring Supply Chains To Secure Our Energy Future
What most people don't realize—and what I've realized during my time in the industry—is that a large portion of BOPP capacitor films are imported. In my opinion, this poses a significant risk. BOPP is consumable and forces utilities to replace entire capacitor units every couple of years. If China flipped the switch and cut off our BOPP supply, the U.S. grid would cease to function. We couldn't provide replacement parts to keep the system up and provide power for Americans. With rising geopolitical tensions, supply disruptions and fires like the one at India's main manufacturing facility, America is dangerously exposed.
To lead the next energy revolution, we need locally made materials that withstand power surges, last longer and provide reliable, affordable power.
Fusion, SMRs And The Grid Of Tomorrow
As the energy landscape evolves, so must our grid. Fusion and small modular reactors (SMRs) promise nearly limitless clean energy but require unprecedented power delivery and storage. You can't start a fusion reactor without capacitors (you must have power in order to get power). Only then does fusion become self-fulfilling.
Today, the U.S. is completely dependent on other countries—primarily China—to supply the capacitors needed to start the fusion process. This puts us at China's mercy. If China has to choose between powering their fusion reactors or ours, they're not going to pick ours. Without the right grid materials, made here in America, we risk falling behind.
Policy, Investment And The Path Forward
The solution to our aging grid infrastructure won't come from a single technology. We need coordinated action across the public and private sectors—from fusion and electric utilities to plastic materials, capacitor manufacturing, government and more.
We've known about our grid's vulnerabilities for decades, but underinvestment and regulatory inertia have delayed upgrades. Now, the need and capabilities are converging. The private sector must invest in next-generation materials and embrace innovation, like smart grids and underground high-voltage DC substations that withstand extreme weather. Policymakers need to prioritize grid modernization, streamline permitting for new technologies and incentivize domestic manufacturing.
A Call To Arms
Without investment in a secure, stable grid, the future we envision—including AI, EVs and fusion—will remain out of reach. This is our greatest Achilles' heel. America has the talent, technology and manufacturing prowess to secure our energy future. The only question is whether we have the conviction. The time to act is now.
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