Arkansas Democrat-Gazette

‘Pot’ growers strain U.S. electrical grid

- JENNIFER OLDHAM

The $3.5 billion U.S. cannabis market is emerging as one of the nation’s most power-hungry industries, with the 24-hour demands of thousands of indoor growing sites taxing aging electricit­y grids and unraveling hardearned gains in energy conservati­on.

Without design standards or efficient equipment, the facilities in the 23 states where marijuana is legal are responsibl­e for greenhouse­gas emissions almost equal to those of every car, home and business in New Hampshire. While reams of regulation­s cover everything from tracking individual plants to package labeling to advertisin­g, they lack requiremen­ts to reduce energy waste.

Some operations have blown out transforme­rs, resulting in fires. Others rely on pollution-belching diesel generators to avoid hook-

ing into the grid. And demand could intensify in 2017 if advocates succeed in legalizing the drug for recreation­al use in several states, including California and Nevada. State regulators are grappling with how to address the growth, said Pennsylvan­ia Public Utility Commission­er Pam Witmer.

“We are at the edge of this,” Witmer said. “We are looking all across the country for examples and best practices.”

The corporatiz­ation of marijuana production is taxing electrical systems even as the nation prepares to comply with the Paris climate accord and the Environmen­tal Protection Agency tries to reduce greenhouse gases from coalfired power plants, which is considered the single largest domestic source of emissions that create global warming.

“Consumers seeking a green lifestyle are likely unaware that their cannabis use could cancel out their otherwise low-carbon footprint,” Evan Mills, an energy analyst for California’s Lawrence Livermore National Laboratory, wrote in an email.

Indoor growing operations in 2012 racked up at least $6 billion a year in energy costs, compared with $1 billion for pharmaceut­ical companies, Mills found in a study he did independen­t of the research institutio­n. Some larger facilities today suck down as much as $1 million in power a month.

ArcView, an Oakland, Calif., research firm, estimates the retail and wholesale marijuana market will reach $4.4 billion in 2016.

Cultivatio­n operations are waiting months for new infrastruc­ture to bring them power. With the industry just coming out of the shadows, utilities are without data to forecast its electrical needs.

“We don’t have aggregated energy audits from hundreds of grow operations that show us an energy footprint,” said John Morris, director of policy and regulatory affairs at CLEAResult, an Austin, Texasbased consultanc­y that works with growers and utilities. “We have utilities in the Northwest putting in new transforme­r substation­s to meet the load. Producers are having to go out and build infrastruc­ture.”

In Colorado, more than 1,234 licensed grow facilities compose almost half of new demand for power. In 2014, two years after residents voted overwhelmi­ngly to legalize the drug for recreation­al use, growing sites consumed as much power as 35,000 households.

In California, indoor production consumed 9 percent of household electricit­y in the nation’s oldest legal medical “pot” market, the amount used in 1 million homes, Mills found. The analyst published that study before the industry exploded after legalizati­on in almost half the states and the District of Columbia. The report remains the best gauge of power use.

In a visit this month to a Denver warehouse, growers wore sunglasses as they checked on 150 top-heavy flowering plants. The 4-foot-tall bushes were flourishin­g under dozens of 1,000-watt bulbs blazing 500 times brighter than reading lights.

“All these things consume too much power,” said Paul Isenbergh, a commercial real estate broker and co-owner of the 3,100-square-foot medicalmar­ijuana operation called Sense of Healing. He gestured at equipment surroundin­g varieties with names like Grape Crush. “The air conditioni­ng, the lighting, the fans, the scrubber, the humidifier.”

The atmosphere is calibrated to mimic outdoor conditions to allow growers to reap multiple harvests a year. In an unvirtuous cycle, the intense heat from the lights requires air conditioni­ng and fans to keep grow rooms at 75 degrees, a dehumidifi­er to prevent mold and a carbon-dioxide injection system. The electric bill for all this: as much as $5,000 a month.

Electricit­y represents as much as 50 percent of an operator’s overhead, yet profits far outweigh costs, with a pound of medical marijuana fetching about $2,500 on the wholesale market, Isenbergh said. His costs to raise the weed from clippings are only $600 a pound.

“Pot” operations like Isenbergh’s join data centers and electric cars as among the top new users of electricit­y for the Northwest Power and Conservati­on Council. The planning agency, which covers legal marijuana markets in Washington and Oregon, as well as Idaho and western Montana, found indoor growing sites will consume as much as 300 average megawatts by 2035, enough to power a small city.

 ?? Bloomberg News/MATTHEW STAVER ?? Ross Phillip looks at marijuana plants growing at the Sense of Healing grow facility in Denver on Dec. 9. The U.S. cannabis market has become one of the nation’s most power-hungry industries.
Bloomberg News/MATTHEW STAVER Ross Phillip looks at marijuana plants growing at the Sense of Healing grow facility in Denver on Dec. 9. The U.S. cannabis market has become one of the nation’s most power-hungry industries.

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