The Omaha Public Power District projects it will have under 100 megawatts of available capacity for large new or expanding customers for the next several years, a constraint that utility leaders and economic development officials say could hinder the Omaha metropolitan area's ability to recruit major employers and support large expansions.
Capacity and customers
OPPD serves eastern Nebraska and provides what it calls adequate capacity for normal residential and commercial growth, but officials warn that any development requiring roughly 2 megawatts or more could be at risk unless additional supply or capacity arrangements are secured. For context, OPPD officials and industry experts say:
- A very large data center can require up to 1,000 megawatts, though many facilities are smaller.
- Some downtown high-rise buildings draw about 6 to 7 megawatts.
- Manufacturing sites typically range from a few megawatts to sometimes over 100 megawatts.
OPPD President and CEO Javier Fernandez said the utility is prioritizing certain types of growth while it completes long-term planning and searches for solutions to bridge the shortfall.
“The biggest question my board is likely going to have to answer is going to be how big of (an economic development) plan we approve,” Fernandez said.
Implications and options
Economic development leaders in the region expressed concern that limited capacity could make Omaha less competitive in attracting large employers such as data centers, manufacturers and other heavy power users. Fernandez said OPPD is exploring options including purchasing capacity from other utilities and bringing new generation online as part of long-range planning, but he told the Flatwater Free Press that few utilities have excess capacity to sell.
- OPPD said available capacity estimates could change depending on customer commitments and new generation coming online.
- The utility intends to continue supporting defense and health-care sector growth as a priority.
planning and decision points
OPPD is engaged in long-term planning to address the constraint while balancing reliability, cost and policy goals. Fernandez cited the hard tradeoffs the board faces when considering how aggressive an economic development plan to approve given limited near-term capacity.
Officials did not provide a timetable for when additional capacity might become reliably available for large customers, but noted that the grid modernization and new generation projects typically take years to plan, permit, finance and build.
Local and state economic development agencies are monitoring the situation and discussing potential responses with OPPD, including whether to pursue collaborative solutions to meet the power needs of major prospects and expansions.
