This Hidden Device Could Free Up Gigawatts of Grid Power

17 October 2026 5 min read هدهد تك | Hudhud Tech

America’s energy supply crunch is driving a surge of federal and private investment in new electricity generation — from polluting gas turbines to cleaner developments like solar farms and geothermal plants. However, gigawatts of power are already available across the U.S. economy in the form of wasted energy from an unexpected source: motors.

Approximately 50 million electric motors drive the fans, pumps, and compressors found in virtually every factory and building. Together, they consume enough electricity to equal nearly a third of total U.S. power demand. Often, these motors use far more energy than necessary to keep America’s machines operating efficiently.

To enhance efficiency, companies can install devices known as variable frequency drives (VFDs). Despite their potential, the adoption of VFDs remains relatively low, partly due to the perceived hassle of retrofitting existing equipment and the fact that they are typically not mandated. According to a 2021 market report by Lawrence Berkeley National Laboratory, only 16 percent of motor systems at industrial facilities and 4 percent of commercial-sector motors utilize VFDs.

Energy experts and device manufacturers are advocating for a broader rollout of VFDs, urging federal agencies, utilities, and wealthy tech companies to provide financial incentives and establish efficiency standards. They argue that reducing motors’ power consumption would free up grid capacity for large electricity users like data centers and electric vehicles, while also helping factories that are transitioning from fossil-fueled heating systems to electrified, motor-based solutions like heat pumps.

What are Variable Frequency Drives?

The main issue with electric motors is that they often run at full capacity, even when demand decreases. For instance, in an office building that empties out in the evening, the heating, ventilation, and air-conditioning system can reduce its output, but the motors and fans continue to operate, wasting energy.

VFDs are electronic controllers equipped with temperature sensors that adjust the speed of motors to match demand automatically. This technology, also referred to as adjustable speed drives, can reduce a motor’s energy use by approximately 40 to 60 percent, according to Neal Elliott, director emeritus of the American Council for an Energy-Efficient Economy.

Energy savings from VFDs can be substantial. For example, Toyota installed VFDs on over 200 motors in the HVAC system at its auto manufacturing plant in Georgetown, Kentucky, as part of a $1.25 million pilot project in 2015. This installation resulted in over $700,000 in annual electricity savings, and the company continues to implement VFD technology in other facilities across the U.S.

Electric Motors in Nearly Every Factory

Since their introduction in the late 1960s, certain aspects of VFD technology have hindered widespread adoption. Historically, measuring the flow of water, air, or refrigerant in systems driven by motors was an expensive engineering process. Accurately controlling motors to deliver the right amount of energy at the right time faced similar challenges.

However, recent advancements in sensors and machine-learning algorithms have significantly reduced the cost and complexity of using VFDs. Additionally, modern VFDs have benefited from increased production of advanced power chips used in high-voltage applications, such as electric vehicles and solar power inverters.

Another challenge has been that developers of commercial and industrial buildings often prioritize reducing upfront costs over achieving long-term energy savings, which can lead to overlooking VFDs. Zack Valdez, senior director of regulatory and industry affairs at the National Electrical Manufacturers Association, notes that if a facility does not require VFDs, they are often disregarded in favor of meeting minimum energy requirements.

The trade association has recently launched a pilot program with manufacturers, utilities, and energy-efficiency groups to gather real-world data on how VFDs can reduce motors’ electricity use and lower utility bills. The aim is to demonstrate the benefits of VFD technology not only for individual facilities but also for the wider grid, providing utilities with a concrete reason to offer rebates to industrial customers.

VFDs Slash Motors’ Electricity Use

Proponents hope that the results from this pilot program will assist the U.S. Department of Energy in shaping future efficiency measures and incentives that promote the adoption of VFDs, including in federally owned buildings. Despite previous administrative resistance to appliance and equipment mandates, there appears to be a willingness to discuss solutions that address the growing power needs of data centers.

Kirk Anderson, director of government relations and public affairs for ABB, a global manufacturing giant that produces VFDs, suggests that if VFDs were installed on all existing motors, it could accommodate up to five years of data center growth without necessitating new generation capacity. He proposes that tech companies could help fund the installation of VFDs in factories to alleviate pressure on the grid.

Michael Reckamp, director of enterprise strategy for Danfoss Drives, another VFD manufacturer, notes that while adoption rates have traditionally been low, the technology is gaining traction among factories and buildings as rising electricity costs and grid challenges make energy waste increasingly untenable. He emphasizes the need for renewed focus on deploying VFDs to reduce grid stress and enhance energy savings.