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NERC Warns of Increased Power Supply Risk

In its annual Long-Term Reliability Assessment, the North American Electric Reliability Corporation (NERC) recently announced an expected increased risk of power supply deficiency for nearly half of the United States in the next decade. The growing gap between surging electricity demand and inadequate infrastructure expansion could lead to more outages and the need for electricity conservation measures.

As energy consumption increases from AI data centers and the electrification of transportation and buildings, the struggle to keep up is exacerbated. NERC’s director of Reliability Assessment and Performance Analysis, John Moura, stated that unprecedented demand growth outpaced efforts to expand power generation capacity. 

The Midcontinent Independent System Operator (MISO), which oversees 15 states’ grid, faced significant shortfall risks even during regular peak periods. The accelerated retirement of fossil-fuel power plants contributed to these vulnerabilities. Replacing this with renewable energy and storage systems has not been enough and has left significant gaps in states’ power grids.

NERC’s assessment highlights the need to prioritize infrastructure investments and policy frameworks supporting liquid natural gas (LNG) integration and grid resilience. Without timely action, the United States risks widespread outages and increased reliance on external sources. The incoming Trump administration, working with state and regional organizations, should make it a priority to expand energy infrastructure projects that efficiently and reliably transport vital fuels to utilities under increased risks. As the country transitions to a more electrified economy, using LNG, for example, is essential to avoid critical power disruptions in the years ahead.

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