Future-fitting the grid: How to accelerate federal
An ideal U.S. transmission grid would be well-planned and consider changes in electricity demand, the introduction of new clean
Over the past four years, new energy demand has reshaped the industry, mostly through reindustrialization, AI, data centers, and electrification. This has led to sustained load growth for the first time in nearly two decades, with power demand expected to increase by more than 3 percent a year through 2040 (Exhibit 1).
Additionally, 15,306 MW of energy storage are scheduled to come online in 2025. The largest share of capacity slated to come online in 2025 is from solar facilities (74%). Wind capacity makes up the next largest portion of projected new capacity in 2025 at 18%, and natural gas makes up 7%.
It predicts U.S. electricity demand will surge by 35-50% between 2024 and 2040. This is primarily due to AI data centers and new manufacturing activity in the short-term whereas electric vehicles (EV), space-heating electrification, and broad economic growth underlie the long-term dynamics.
The full US National Power Demand Study will describe a critical gap between the current energy supply and future needs. It predicts U.S. electricity demand will surge by 35-50% between 2024 and 2040.
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