The U.S. is seeing a shift in electricity consumption, less dominated by residential loads and more so by industrial customers (data centers, AI, manufacturing, etc.).
Keeping prices affordable is becoming more and more challenging. Prices are expected to climb up to 25% in some areas over the next 5 years, driven by grid expansion and infrastructure projects.
Another key issue is the nature of industrial loads. Residential loads have predictable seasonal and daily variation. Industrial loads tend to be consistent. ICF is predicting that by 2035, about 40% of the country’s load will have a “flat, power-quality-sensitive profile.”
America’s capacity reserves are currently between 20% and 25%. By 2030, that figure is expected to drop below the 15% target reserve margin. By 2035, we will be negative.
We need more power, and we need it now. To meet demand, we will need to see a combination of new generation, delayed power plant retirements, and smarter infrastructure.
