Three Advantages of Co-Locating New Load and Power Generation

In recent months, several large-scale energy projects have been announced in which developers are co-locating large electrical loads with power generation assets. While this model offers clear strategic benefits, it also raises technical and regulatory questions that stakeholders are actively working through—from grid interconnection processes to environmental permitting and commercial strategies.

To illustrate the benefits of co-location, consider the following key advantages and a real-world example from Pennsylvania.

1. COST EFFICIENCY

   Co-locating generation and load helps avoid costly transmission upgrades and reduces congestion on the existing grid. This can result in substantial savings during both development and long-term operation.

2. SPEED TO MARKET

   By minimizing reliance on the broader transmission network and simplifying interconnection requirements, co-location can significantly shorten development timelines—an increasingly critical factor for energy-intensive industries and time-sensitive infrastructure.

3. RELIABILITY

   Co-locating generation with load reduces dependence on the grid, helping ensure consistent power availability. This is especially important for facilities that require high reliability and cannot afford disruptions due to transmission constraints or outages.

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