Rising Electricity Demand and Capacity Challenges

Electricity demand in the U.S. is projected to grow significantly, with estimates indicating an annual increase of about 3% over the next decade. This demand surge is largely driven by the expansion of data centers, energy-intensive manufacturing, and the electrification of transportation. The growing demand translates to an expected need for an additional 75 to 80 gigawatts of generating capacity in five years, which equates to 15 to 16 gigawatts of new capacity required each year. However, existing renewable energy additions may only meet a portion of this demand due to mismatched locations and timing for electricity supply.