Source: Niskanen Center
by Alexandra B Klass & Matthew Appel
“For the first time in decades, electricity demand in the United States is increasing, driven by A.I., new data centers, electric vehicle growth, new manufacturing hubs, and transportation electrification. At the same time, coal-fired power plants have been closing in response to competition from lower-cost natural gas and renewable energy. Clean energy is being rapidly deployed to replace those plants, but this is not happening fast enough to address concerns about demand growth and grid reliability. Specifically, recent electricity market data show that there is a growing imbalance between supply and demand in many regions of the country that threatens to increase electricity prices, delay coal plant retirements, and undermine the clean energy transition in the face of climate-driven increases in extreme weather.” (03/24/25)