Hitachi and SPP Partner to Modernise U.S. Energy Infrastructure

Hitachi and Southwest Power Pool (SPP) have announced a strategic partnership to develop an integrated AI-based solution aimed at addressing critical challenges slowing the modernisation of the U.S. energy infrastructure. The initiative is focused on accelerating the generator interconnection (GI) process by reducing study analysis time by up to 80%, thereby improving decision-making for GI customers and facilitating the timely addition of new generation capacity across SPP’s 14-state operational region.

Growing Energy Demand and Grid Constraints

The U.S. energy sector is currently experiencing a rise in demand of 2% to 3% annually, driven by factors such as increased data centre activity, expanded manufacturing, and broader electrification efforts. Projections show that data centres could consume up to 12% of U.S. electricity by 2028, a significant increase from 4.4% in 2023. Without intervention, the generation capacity margin within the SPP region is forecasted to decline from 24% in 2020 to 5% in 2029, raising concerns about the grid's ability to meet future electricity needs.

Challenges in the Generator Interconnection Process

The current generator interconnection process presents a major bottleneck. Although the U.S. generates approximately 1.28 terawatts of power, more than twice that amount remains in a queue, awaiting integration due to the backlog in study and simulation requirements. These studies are necessary to ensure grid reliability and performance but are time-intensive and contribute to delays in bringing new generation sources online.

Multi-Domain Technical Collaboration

To overcome these challenges, Hitachi will bring together multiple competencies to support the development of the solution. The collaboration will include:

• Method’s design services

• GlobalLogic’s software engineering

• Hitachi Energy’s asset modelling for energy portfolio management

• Hitachi R&D’s AI-based energy grid algorithm

• Hitachi Vantara’s iQ platform for storage and computing, powered by NVIDIA technology

These elements will form the foundation of an AI-driven system designed to streamline the generator interconnection process and enhance decision-making capabilities.

SPP’s Role in Project Integration and Coordination

As the regional transmission organisation, SPP will lead the integration of the technical components and ensure alignment with grid operations and regulatory requirements. In its role as a reliability coordinator, SPP will also guide the deployment of the solution to optimise operational performance and enhance the customer experience.

“Our nation’s demand for electricity has risen sharply in recent years following a long period of slow growth. Our industry has struggled to keep up with this sudden and significant shift,” said SPP President and CEO Lanny Nickell. “There are a lot of would-be power producers out there waiting to connect to the grid, but yesterday’s systems and technology haven’t been sufficient to enable us to bring incremental capacity online fast enough. It’s time to fix that, and SPP is proud to work with Hitachi and NVIDIA, two AI industry leaders who have the means to help realise a vision of a better energy future for our nation.” 

AI-Based Solution to Support U.S. Grid Modernisation Efforts

As part of the ongoing partnership between Hitachi and Southwest Power Pool (SPP), an integrated industrial AI system will be developed to address inefficiencies in the U.S. energy grid's generator interconnection process. At the core of the solution is Hitachi iQ’s enterprise AI technology stack, which supports proprietary AI algorithms for performance optimisation and scalability.

Application of AI Across Key Operational Areas

The solution will deploy AI-driven capabilities across several functional domains, including:

• Process automation

• Predictive analysis

• Integration of communication systems
  
  

These AI tools are intended to enhance the accuracy and speed of generator interconnection studies while supporting improved operational planning across transmission networks.

The collaboration with Hitachi and NVIDIA aligns with additional modernisation activities underway at SPP. This includes a restructured approach to transmission planning designed to address current grid demands and prepare for future growth.

Expected Outcomes for Grid Planning and Operations

The combined impact of advanced technologies and updated planning methodologies is expected to establish new benchmarks in the electric power sector. Areas of improvement include efficiency in generator interconnection, Mid- and long-term grid planning, forecasting accuracy, and evaluation and adoption of grid-enhancing technologies.

These efforts support a broader strategy to ensure the energy grid can meet rising demand while maintaining system reliability and performance.

“This initiative is about reimagining the electricity production and distribution process through the lens of modern AI technology,” said Frank Antonysamy, Chief Growth Officer, Hitachi Digital. “Real-time data access is needed to create truly realistic scenarios caused by new generator introductions. The AI solution we’re all developing will provide that data, among other advantages. SPP can then make significantly quicker, better-informed decisions that will increase overall ROI while better serving the nation’s population with accessible power. We’re proud to be a part of this important three-way collaboration addressing such a crucial problem.”

“Interconnection process acceleration is critical to meet the unprecedented demand on our grid,” said Marc Spieler, Senior Managing Director of the Global Energy Industry at NVIDIA. “Using advanced NVIDIA accelerated computing and AI, Hitachi and SPP are helping speed interconnection studies to bring essential infrastructure online faster.”

Conclusion

This partnership between Hitachi and SPP represents a coordinated effort to address the pressing infrastructure needs of the U.S. energy grid. By leveraging advanced AI, engineering, and energy management tools, the collaboration aims to reduce interconnection delays and support the transition to a more resilient and efficient energy future.

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