The United States is rapidly moving towards the power crisis. Electric demand outweighs supply as demand driven by strategic industries such as advanced manufacturing and AI-driven data centers is soaring. [emphasis, links added]
Today’s economy relies on a stable, affordable supply of electricity available throughout the day, regardless of weather conditions.
However, power plants are closing prematurely, and if this trend continues, power supply may be disrupted.
Many industries depend on a constant power flow without reliable energy, They may relocate to countries with more practical energy policies and thus work overseas.
Over the past two decades, electricity demand has remained relatively stable, with an annual growth rate of about 0.5%.
However, in 2024, demand soared to more than 2%, and demand is expected to grow at a rate of 3% per year in the coming years..
While 3% may seem moderate, it applies to a massive energy system, equaling the addition of 50 million homes on the grid by 2029.
The power industry is planning a new generation of facilities and transmission infrastructure to meet this demand, but faces significant regulatory and economic challenges.
The Biden administration's plan is to shut down all coal-fired power plants and significantly reduce gas production through unrealized EPA regulations. Currently, the coal fleet can provide 16% of U.S. electricity.
Within the time frame envisioned by proponents of these technologies, even if there is a transition to storage, it is not feasible to have storage even if there is a transition.
Eliminating this generation capability can have a significant impact on grid reliability even before the increase in power demand is expected. The growing supply will inevitably make electricity prices higher.
It is crucial to reverse the Biden administration’s regulatory restrictions and enable these factories to operate to meet market demand.
In short, we cannot build new reliable power generation capabilities, as well as the infrastructure that supports it, to meet the speed and scale required for rapidly growing power requirements.
Even if there is a storage transition, even a storage transition is not feasible within the time frame envisioned by proponents of these technologies. Furthermore, these energy sources are not reliable.
Even if sufficient amounts of necessary materials are provided to build the required battery, storing electricity is still expensive. Solar and wind cannot replace coal and gas with the scale and reliability required to maintain the U.S. economy.
The energy industry has proposed additional gas pipelines and new power transmission capabilities. However, allowing the infrastructure is challenging.
Each project faces and will continue to face numerous legal challenges from various opponents.
While we can build new factories and data centers that consume energy almost overnight, The infrastructure required for energy required for transportation can take ten years to navigate the licensing process. This shocking mismatch is driving shortages and higher prices across the country.
The Trump administration has declared an “energy emergency” in response to a surge in energy demand that could exceed supply.
While a comprehensive policy response is still taking shape, the guiding principle must be to do everything to deal with the crisis and start to keep the coal fleet running.
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