Indoor and outdoor cannabis production represents the other half of the current agricultural revolution. Due to weather conditions and indoor production costs in states where cannabis is legalized, about 90% of cannabis production in the U.S. is outdoors. In Tennessee, Kentucky, Hawaii and Washington, outdoor production is close to 100%. In Idaho and Oregon, the method of production is more balanced: 65% of cannabis in Idaho is produced outdoors; in Oregon, the percentage is 55%. Montana is at the other end of the spectrum, with only 20% outdoor production. Most states mandate a certain level of security on the growing operations, which can force growers inside regardless of the climate.
According to a 2014 study from the Northwest Power and Conservation Council, hundreds of producers in the state of Washington have been licensed to process cannabis. Growers of cannabis represent about 80-163 MW of new demand to the Northwest region’s system. Since the estimated share of cannabis production in this region amounts to 21% (18% in Washington and 1% each in Oregon, Idaho and Montana), the total demand in the U.S. can be estimated to vary between 381 MW and 776 MW. This amount deserves some special attention from electric utilities, especially as more states legalize cannabis and demand continues to grow.
Even though only 10% of cannabis in the U.S. is grown indoors, the load profile for cannabis plant factories is far from flat -- but growers who have limited access to capacity or have a demand charge tend to engineer the facility and lighting cycles to make it flat. Growers tend to segment the facility into “rooms,” dividing different stages of growth by room. This allows year-round harvest, and growth-cycle management. A typical plant close to harvest may consume 3 kW of energy for up to 16 hours a day. In a typical, 1,000-plant operation the operation may be a 5-MW to 8-MW load depending on the local regulation on odor and the local environment.
Indoor growth requires 5,000 kWh/kg of cannabis, and lighting alone accounts for up to 80% of electricity use. Again, it is important to note how artificial lighting efficiency plays a crucial role in the balance between indoor and outdoor farms. Switching to more efficient lighting has the potential to generate demand savings of 23 MW to 50 MW by 2021 in Washington. Many growers might consider switching to the more efficient LED lamps but are concerned about their cost and the quality of the product produced. Most growers continue to use the conventional lighting that was pioneered in the 1960s.
Finally, it is important to characterize the load types in the different plant factory rooms required for cannabis production. The vegetation room requires a 1,000-watt metal-halide lamp for every two to eight plants and needs the lamps to be on for at least 18 hours per day. The flowering room requires a 1,000-watt high-pressure sodium adjustable ballast lamp for every two to three plants and needs to be on for 12 hours and off for 12 hours. A separate HVAC with temperature and humidity set points is required for each room in addition to an air conditioning mini split for every 1,000 square feet.