In fact, the North American Reliability Corporation predicts a 15% increase in summer demand incertain areas of the country over the next decade, with peak winter demand likely increasing by 18%. That means that in about five years, almost 20 states will face an elevated risk of rolling blackouts under peak conditions.

The mid-Atlantic shutdown of 2022, which left a million Americans without power, is just such an
example. And while this is going on, the calls continue to close critical generation facilities with no replacements fully available.

This is due in part to a lengthy permitting process at the federal level, which limits the construction of new generation resources, while increasing burdening rules for existing power plants.

There are five things to be considered:

Grid uncertainty due to EPA’s Power Plant Rule

The development of new resources is being impacted by many regulations, but nothing more so than the EPA Power Plant Rule. This rule requires existing coal plants to reduce carbon emissions by 90% by 2032 or risk being shut down no later than 2038. While reducing carbon emissions has been the plan for quite some time, this abrupt change to the original timeline, as well as the mandate of technologies that are not yet viable for use, has co-ops looking at options that might be as reliable as traditional power generation.

Grid strain is due to energy policy and greater demand.

Concerns over electric grid reliability have been rising as several factors, including an increase in demand, have heavily contributed to strain on resources. This is due in part to the growth of the technology sector, like AI data centers, there is also a push for the electrification of the U.S. economy and onshoring of businesses and manufacturing. Not only that, but the retirement of generation facilities is happening faster than they can be replaced. This closes power plants preemptively, when there is still useful life in them.

Federal regulations endanger the reliability of electricity

While the EPA rule is a big concern, it is not the only one, especially on the federal level. Permitting has become slow and unworkable, which is slowing efforts by electric cooperatives, to meet rising demand. The process often leads to litigation, which delays the siting of power plants and routine activities. In fact, the process is so unpredictable at times that even widely supported solar plants have been delayed. The 50- year-old National Environmental Policy Act stifles the development of infrastructure, which further decreases accessibility.

Current administration must work to ensure a stronger electric sector

Current administration needs to coordinate with the Department of Energy, among other federal agencies, to boost the reliability of the power grid. That means the EPA power plant rule would be struck down, as well as several other overzealous regulations, which limit the energy sector. Federal permitting overhaul could also gain bipartisan support in Congress. Increasing supply to meet growing demand will take time, and it is not a single step approach, it’s multiple items that need to be considered for a balanced approach.

The wide-ranging impacts on the U.S. energy sector — local economies to global competitiveness

Electricity is still a cornerstone of America’s economy and is critical to global competitiveness, particularly as we explore AI and technologies of the like. Not only that, but it is paramount to rural economies and development, in order to provide access to reliable, affordable electricity. Regulations that could increase the cost of producing electricity, or indeed threaten, its availability will pose serious threats to rural economies. South River EMC and the nation’s electric cooperative network is dedicated to advocating for common-sense energy policy that ensures safety, affordability and reliability.