NEW YORK (Reuters) – About half of the United States is at increased risk of power shortages over the next decade, which could lead to power outages and electricity conservation measures. American electric (NASDAQ:) Reliability Corporation said this on Tuesday.
While U.S. energy consumption is rising due to AI data centers and the electrification of buildings and transportation, efforts to add electricity generation have fallen short, creating a widening imbalance between supply and demand, NERC said in its annual Long-Term Reliability Assessment.
“We are seeing demand growth like we haven’t seen in decades,” said John Moura, director of NERC’s Reliability Assessment and Performance Analysis. “Our infrastructure is not being built fast enough to keep up with rising demand.”
The Middle Continent Independent (LON:) System Operator, which manages the electricity grid in 15 states, was at high risk of shortages even during normal peak demand periods, NERC said.
Other grid operators at increased risk, where shortages may occur during extreme heat or cold, include operators of PJM Interconnection, ISO New England, Texas and California. Parts of the Northwest, Northeast, Southeast and Midwest were better positioned to keep the lights on long term, NERC said.
Accelerating electricity demand has contributed to the high-risk and elevated risk areas, along with the planned decommissioning of fossil fuel power plants, which may be taken out of service before new supply becomes available.
NERC found that there are 78 gigawatts of confirmed generator retirements through 2034, and another 37 gigawatts with announced retirement plans.
One gigawatt of capacity can power as many as 1 million American homes.
NERC is a North American nonprofit regulator that develops industry standards, ratings and forecasts focused on the reliability and safety of the electric grid.
