Electric Grid Operators Warn Panel of Potential Challenges in Meeting Growing Demand
Revise federal permitting regulations and ease state restrictions on fossil fuels, but refrain from revoking the Biden administration’s incentives for renewable energy expansion, they argue.
On March 25, electric transmission operators informed a House panel that they are urgently working to address rising demand. They cautioned that without regulatory flexibility at both federal and state levels—particularly in the Northeast—many will face difficulties in expanding already overburdened grids necessary for an electrified economy.
“Our country is undeniably in the midst of a reliability crisis, and it arrives at a particularly inopportune time,” commented committee chair Rep. Bob Latta (R-Ohio). “It remains uncertain whether the rate at which base-load generation is brought online will suffice to close the gap created by retiring supply and meet escalating demands in the near future.”
The grid operators, overseeing wholesale electricity markets covering two-thirds of the United States, expressed similar concerns regarding demand exceeding the capacity to expand. Many raised alarms about an increasing dependency on intermittent renewable sources—especially those reliant on weather conditions, like solar and wind—without sufficient additions of “dispatchable base-load” power from fossil fuels including natural gas, coal, and oil.
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“This gap between retirements and the increase in demand alone amounts to over 240 gigawatts, which is equivalent to the amount of power required to supply 195 million homes for an entire year,” explained Energy and Commerce Committee Chair Brett Guthrie (R-Ky.).
“One of the simplest solutions,” she noted, “is to slow down the retirements of these existing resources.”
MISO, which serves 45 million people within its 223-member utility and industrial consumers across 15 states, is exhibiting a “growing preference” for low or zero-carbon emission resources. However, she added, these replacements often lack the 24/7 availability, flexibility, and endurance attributes of the power plants they are substituting.
Power lines near a coal ash pond from an abandoned coal-fired power plant near Elizabeth River in Chesapeake, Va., in 2016. AP Photo/Steve Helber
Encouraging Intermittent Resources
Guthrie, Latta, and other Republicans noted that the rise of renewable energy sources supplying the grid was fueled by the 2022 Inflation Reduction Act (IRA). This legislation authorizes billions in tax credits, low-interest loans, and grant programs over a decade to encourage private investment in renewable energy, advanced manufacturing, and grid development.
“The extensive subsidies for intermittent generation undermine the economic viability of base-load, or on-demand dispatchable generation resources, which are essential for maintaining energy supply,” Latta remarked.
Trump’s executive orders halted certain IRA initiatives, and the new GOP-led Congress has vowed to dismantle much of it. Democrats contend that this would imperil the momentum in grid expansion precisely when energy is crucial.
“Grid operators and FERC are making strides” in reducing interconnection backlogs, “and Congress should assist them,” asserted Rep. Kathy Castor (D-Fla.).
“There are more than 2,000 gigawatts of energy and storage awaiting connection,” which corresponds to roughly one billion homes at peak demand,” she highlighted.
In recent years, utility-scale solar generation surged by 32 percent, while wind generation grew by 7.7 percent across the continental U.S.
As of now, natural gas constitutes 44 percent of the “installed electric generation capacity,” followed by coal at 14 percent, wind at 12 percent, solar at 9 percent, nuclear at 8 percent, hydro at 7 percent, oil at 2 percent, battery storage at 2 percent, and biomass/fuels at 1 percent, according to FERC.
Additionally, “behind-the-meter” small-scale solar installations below 1 megawatt (MW) that are not grid-connected yielded an extra 1,200 GW in 2024 compared to 2023, according to the 2024 market report.
“Solar, wind, and battery storage serve as the most affordable and environmentally friendly means to enhance energy supply to the grid. They are now leading the way in energy production and in lowering energy costs,” stated Rep. Frank Pallone (D-N.J.).
Pallone referenced studies estimating that repealing the IRA “could cost approximately 800,000 jobs and negatively impact our [Gross Domestic Product].” He added: “Repealing the Inflation Reduction Act would lead to higher power bills for American families. Republicans may talk about affordability, yet their actions do not reflect this commitment.”
When Pallone asked seven grid executives if they supported cutting federal incentives for renewable resources, all affirmed their support for the IRA but noted the need for deregulation and permitting reforms to guarantee sufficient base-load additions.
Block Island Wind Farm wind turbines tower over the water off Block Island, R.I., in October 2016. Don Emmert/AFP via Getty Images
Wind Energy and Pipelines
Latta emphasized that grid operators “are also challenged with the complex task of preserving the reliability and adequacy of resources in states that impose restrictive regulations against fossil energy sources.”
He explained that due to the grid’s “interconnected nature,” the actions of one state to eliminate base-load power inherently affect the reliability of neighboring states.
These resources primarily consist of installed or planned wind and solar, along with batteries for storing surplus wind and solar energy, which can help mitigate the use of fossil fuels when wind and solar generation falters.
Wind energy is logical to many residents of New England, who are “consistently challenged by our geographic position at the end of the energy pipeline” and eager to “capitalize on the vast offshore wind opportunities that are right at our doorstep,” stated Van Welie.
“The region has two offshore wind projects nearing service dates,” Van Welie mentioned. “However, due to various factors, additional offshore wind developments in New England are facing fresh challenges and could experience delays.”
ISONE anticipates a 17 percent rise in electricity consumption over the next decade, but Van Welie indicated that “without the wind farms, it remains uncertain whether that projection can be met with new supports coming online.”
Since 2019, New York has denied at least four proposed natural gas pipeline projects, and currently, all new generators connecting to NYISO’s grid are wind and solar projects.
However, that trend may be shifting.
Additionally, in early March, Trump and New York Governor Kathy Hochul engaged in discussions regarding the possible revival of the Constitution pipeline, which would transport up to 650 million cubic feet of natural gas from Pennsylvania to New York.
“Striking a balance between ensuring grid reliability and accommodating the increasing volume of weather-dependent generation and policy mandates for a just transition requires meticulous attention,” Dewey remarked.
He cautioned that “without such attention, the New York grid may become inadequate in future years, potentially hindering the transmission system’s ability to fully meet demand.”
