U.S. power developers are shifting back toward fossil fuels
The report says that shift could shape grid costs, reliability and emissions for years as demand keeps rising.
A new report says U.S. power developers are shifting toward fossil fuels even as electricity demand rises from data centers, factories, and EVs, and that matters because it could lock in higher power costs and emissions for years. The report, from the Environmental Defense Fund and Atlas Public Policy, says fossil fuel infrastructure is expanding faster than it has in a decade and warns the grid is at a turning point. It finds that planned fossil capacity moved from 5% of new capacity in 2024 to 30% by the second quarter of 2026, and says fossil fuel projects could account for 70% of the pipeline by the end of the decade if the trend holds. It also says planned fossil capacity would reach 68 gigawatts by 2030, up 45% from construction plans six months earlier, while renewable projects are being canceled more often than fossil ones. Even so, the report says new utility-scale solar and wind still cost less than new combined-cycle gas plants.
Why it matters
For utilities, regulators and large power buyers, the mix of new capacity matters because the report says the market is moving toward more fossil buildout just as demand grows. If that continues, the report says it could leave the grid with higher costs and emissions for years, even though utility-scale solar and wind are still cheaper than new combined-cycle gas plants.
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Sources
- The Verge