tech
January 30, 2026
Much of grid risks failure in years ahead as fossil fuels phase out, regulator warns
U.S. grid regulators warned that North America’s electric power system is not expanding fast enough to meet rising demand, meaning that several regions are at heightened risk of shortages over the next five years.
TL;DR
- North America's electric power system is not expanding fast enough to meet rising demand.
- Several regions face heightened risk of electricity shortages over the next five years.
- Growth in generation and transmission is lagging behind the needs of large loads like data centers.
- Shifting to weather-dependent sources (solar, wind) and reducing fuel diversity increases grid reliability risks.
- Retirement of fossil-fuel generators reduces on-site fuel availability, impacting the system's ability to handle demand spikes.
- PJM Interconnection, MISO, ERCOT, and WECC regions are at high risk of electricity supply shortfalls.
- Rising electricity demand is fueled by data centers, AI, electrification, and manufacturing reshoring.
- Electricity prices have risen faster than overall inflation.
- Peak demand and energy growth forecasts are climbing significantly higher than in the past two decades.
- The Trump administration blames the Biden administration's green energy policies for rising energy costs and advocates for fossil fuel production.
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