The demand for electricity is increasing after years of stagnation, driven by factors such as the rapid expansion of AI data centers and the rising need for air conditioning during hotter months.
Steve Piper, director of North American power and renewables research at S&P Global Energy, notes that utilities face pressure to deliver more power than anticipated a few years back. “You need more of everything,” he states, pointing out the need for increased green energy while also noting that gas and coal plants are being utilized more, which contributes to higher emissions.
According to Piper, coal’s competitiveness with natural gas increased last year, with the EIA report highlighting that fuel costs were a significant factor in the rise of coal generation.
In western regions, the push to develop new power plants and transmission lines is underway, though these projects often take years to complete. This delay is prolonging the operation of some coal plants, explains Rob Gramlich, president of Grid Strategies. “Coal plants were, by and large, on their way to retiring, one by one, year by year,” Gramlich observes, “But I think in many cases, they’re being extended, and the pace of retirements is slowing.”
While renewable energy continues to grow, Gramlich mentions that utilities are likely to depend more on natural gas in the short term as they work to meet the growing electricity demand through new generation and transmission infrastructure.
Both Piper and Gramlich emphasize that the main challenge ahead is building enough infrastructure to accommodate the rising electricity demand while reducing carbon emissions in the long run.
This article was produced by the Mountain West News Bureau, a collaboration involving KUNR, Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNC in Northern Colorado, KANW in New Mexico, Colorado Public Radio, KJZZ in Arizona, and NPR, with additional support from affiliate newsrooms across the region. Funding for the Mountain West News Bureau is provided in part by the Corporation for Public Broadcasting and Eric and Wendy Schmidt.
