Inside the ‘crazy grid’: why the future of energy needs everything, everywhere, all at once

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Jul 8, 2025

Quinn Nakayama, Senior Director of Grid Research and Innovation at PG&E, dives into the complexities of the 'crazy grid'. He explains how California's electricity system is adapting to new demands like variable renewable energy and electric vehicles. The discussion touches on the role of AI in increasing power demand and grid management. Nakayama debates the effectiveness of Virtual Power Plants and highlights the urgent need for infrastructure upgrades to meet rising consumption patterns, especially with the growing influence of data centers.

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INSIGHT

The 'Crazy Grid' Demands Everything at Once to Fuel Our Energy Future

California's electricity grid faces unprecedented challenges due to rapid electrification, climate change, and increased demand from EVs, data centers, and renewables.

Quinn Nakayama calls this the 'crazy grid' where everything happens simultaneously, making predictability and planning a huge challenge. He emphasizes that the solution isn't about choosing one technology but requires all resources: wires, generation, renewables, storage, and grid flexibility.

Planning uncertainties, especially with EV charging patterns and climate impacts, mean utilities must innovate with technologies like demand response and distributed energy management systems (DERMS) while still expanding physical infrastructure like new feeders and substations.

Nakayama warns that delays or cuts in clean energy investments could cause the US to fall behind global competitors like China in EV and AI-related industries.

> "We need everything and the reason why is that... if you have minimal load growth, great; for today's world, that's not how that works. We need absolutely everything."

INSIGHT

Defining the 'Crazy Grid'

The electricity grid is undergoing simultaneous multiple challenges: electrification of transport and buildings, climate change impacts, and variable renewable integration.
Quinn Nakayama calls this convergence the 'crazy grid' era, requiring new ways to manage and innovate.

INSIGHT

Grid Planning Uncertainty Challenge

Planning and operating the grid now requires managing high uncertainty and variability in load due to new technologies like EVs.
Quinn compares it to landing a jet fighter blindfolded on a moving aircraft carrier, emphasizing the unpredictability.

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Building out the electricity grid was traditionally a predictable and straightforward business. Now it’s like trying to land a jet on a moving aircraft carrier in the dark. That’s a quote from this week’s guest Quinn Nakayama. He’s the senior director of Grid Research and Innovation at Pacific Gas & Electric (PG&E). He joins host Ed Crooks and regular guest Amy Myers Jaffe to discuss how California is dealing with all the uncertainty created by new demands being placed on the grid: variable renewable generation, electric vehicles, data centers, and more.

Quinn refers to the fast-changing electricity system of today as the ‘crazy grid’, because so many things are happening at once. Wind and solar power create new challenges for grid stability, while batteries and demand response offer new solutions. Electric vehicles, following mandates from the state of California and other governments around the world, create new patterns of electricity consumption. The latest breakthroughs in AI are creating a surge in power demand from data centers. And those advances in AI are also opening up new possibilities for grid management.

Planning is harder than ever. Are Virtual Power Plants (VPPs) an important solution? Amy, Ed and Quinn debate their effectiveness; these tools are helpful, but they can't solve everything. Large loads such as data centers still need major upgrades to wires and substations. But with a high penetration of electric vehicles, California is working on smart tech that makes it easier to install EV chargers without expensive upgrades. PG&E is also exploring faster ways to connect large users, such as allowing temporary solutions until new lines are built.

Despite the range of innovations that are available, and the exciting rate of progress in new technologies, the US risks falling behind other countries. Quinn and Amy warn that cuts in support for clean energy and EVs could lead to the US losing out to China, which is investing heavily in these technologies. The Reconciliation Bill that was signed into law last week included abrupt curtailments of tax credits for wind and solar power. So what is the right way forward for the grid? For the electricity system to meet the fast-evolving demands of the modern world, it needs everything: more energy, more flexibility, and faster action.

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