Why Capacitor Films Are The Unsung Hero of America’s Energy Transition

By Dr. Ponting, Chief Scientific Officer, Peak Nano

America’s power grid is at a tipping point. On July 7th, the Department of Energy (DOE) issued an unmistakable warning: with growing trends in power plant retirement, surging electrification, and exploding demand from AI data centers, the U.S. could see a 100-fold increase in blackouts by 2030. Without quickly developing and adopting U.S.-made grid-enhancing technologies (GETs), system failure is inevitable.

The department’s conclusion is blunt: incremental, patchwork improvement— “business-as-usual” grid management—no longer cuts it. It’s time for “radical change.”

Energy demand is growing at an extraordinary pace. By 2030, electric vehicles and data centers alone will consume 35 gigawatts (GW)—doubling their 2022 demand and adding unprecedented stress to systems already on edge. Meanwhile, our grid will lose 104GW of reliable baseload power from coal and gas plant retirements, and the vast majority of new generation will come from intermittent wind and solar power.

Utilities have traditionally adopted new technologies at a glacial pace. For decades, the urgency wasn’t there. From my earliest days as a scientist, I’ve wanted to solve genuine, large-scale grid problems. Today, there’s a clear and compelling reason to innovate: we can’t afford to proceed with the old, decade-long timelines for adopting new technologies.

But the hands of our innovators are tied. If we don’t streamline regulatory hurdles, we could slide into an era of chronic energy insecurity. Without immediate, decisive action, rolling blackouts and grid failures will become routine, threatening everything from basic public safety to the future of our cities, industries, and national competitiveness.

For an AI-powered, electrified nation, that is simply untenable. While we can’t throw caution to the wind, we need reasonable policy changes to fast-track new, proven grid technologies.

Upgrading Our Foundation

With smarter, American-made solutions, we can strengthen our grid from within. Grid-enhancing technologies (GETs) enable utilities and grid operators to quickly drop in and deploy upgraded components on existing infrastructure, without large-scale overhauls.

One example is advanced capacitor film—a specialized, super-thin plastic that forms the backbone of the capacitors that store and release energy across the grid. These components are foundational—if the underlying technology isn’t robust, you can’t guarantee stability. As we push to meet rising demand on aging infrastructure, the cracks in our foundation are starting to show, resulting in power blackouts, bottlenecks, and project delays.

The films traditionally used in capacitors are made of BOPP (biaxially oriented polypropylene) and start to break down at 85°C. As temperatures rise above that threshold, these films shrink, degrading performance, forcing operators to replace capacitors more frequently, invest in cooling infrastructure, and/or “derate” (run capacitors below their maximum voltage). This requires more oversight and reduces capacitor performance and efficiency, making it harder to meet increasing energy demand.

Compounding the issue, our energy security is at risk. We rely solely on foreign companies, primarily in China, to supply this consumable material. Cutting off our supply would directly threaten grid reliability, public safety, and our national economy.

Innovative alternatives are emerging. At Peak Nano, we’ve pioneered a high-performance, drop-in-ready capacitor film made in the U.S. called NanoPlex™. This film extends equipment service life by up to five times, cuts energy loss in half, and operates at temperatures up to 135°C with virtually none of the shrinkage or derating issues seen with traditional materials.

Deploying technologies that allow grid operators to get more power and reliability out of existing assets is exactly the kind of leap forward the DOE demands.

We cannot do it alone. The capacitor film industry is worth $200 billion annually, and China is raking in the lion’s share. With broader investment in R&D and commitment to building domestic manufacturing, we can kick-start a supply chain revolution to reshore critical grid-enhancing technology, strengthening the foundation of our grid. This isn’t just about better performance—it’s an investment in America’s energy security.

Practical Change and Policy Imperatives

To rebuild the foundation of our grid, we need to rethink how our grid is structured and operated.

We’re seeing a shift away from large, centralized power plants towards a distributed mesh of modular generation units called microgrids, which create localized power and sell excess back to the grid. Startups and utilities are beginning to embrace this model, which better integrates diverse energy sources and enables grid growth without the delays and opposition tied to building massive power stations. Capacitors sit at the intersection of microgrids and the main grid, holding and distributing power on demand.

Future-proofing our grid also requires a move from analog to digital grid management. Enhancements like solid-state transformers and high-frequency switching will enable more precise energy management and reduce power loss. AI-based demand forecasting and consumption matching will allow us to squeeze greater efficiency from existing equipment, but that depends on the reliability and longevity of our power hardware.

Utilities and OEMs face obstacles to adopting GETs—high upfront costs, regulatory barriers, and public resistance. Modernization will require significant investment and collaboration among state and local actors.

The Advancing GETs Act of 2024 presents a promising framework to accelerate innovation and utilities investment. But success also hinges on policymakers funding public outreach to win community support, helping people understand that short-term disruptions will bring long-term benefits such as lower electricity bills, reliable power, and new local jobs.

We must also move technology out of the lab and into the field. I tell young engineers, “You can’t build a modern power grid from a conference room.” We need skilled electricians and line workers trained on new solutions and practical, real-world deployments to refine and scale innovations.

Securing Our Energy Future

According to Secretary Wright, “In the coming years, America’s reindustrialization and the AI race will require a significantly larger supply of around-the-clock, reliable, and uninterrupted power… to keep the lights on, win the AI race, and keep electricity prices from skyrocketing, the United States must unleash American energy.”

We must bring in new technologies that will “hold up the house” during the energy transition. Capacitor films may seem like a small component, but they’re the very foundation on which our energy infrastructure is built.

Our national security, economic prosperity, and daily lives depend on a modern, resilient power grid. As we race to meet demand, these upgrades must begin today. America’s future can’t wait.