Powering America's electricity: a sensible way ahead
In the face of growing energy demands, America is called upon to adopt a pragmatic, all-of-the-above strategy. This approach prioritizes infrastructure investment, preserves dependable power sources, and fosters innovation, ensuring a diverse energy portfolio that is essential for affordability and reliability.
The diverse energy portfolio includes fossil fuels, low-carbon alternatives such as hydroelectric, geothermal, and nuclear energy sources, as well as wind and solar energy. As electricity demand rises, utilities expect rate increases between 15% and 40%. To mitigate these increases, more funds must prioritize grid upgrades and reliable baseload power over renewable-heavy projects.
The strain on America's energy infrastructure is unprecedented, driven by the increased electricity demand from AI, data centers, a revitalized manufacturing sector, and electric vehicles. Streamlining permitting and regulatory processes for pipelines and power lines is critical to deliver energy where it's needed most.
The Desert Southwest pipeline, which delivers natural gas from West Texas to Arizona, is an example of targeted infrastructure aimed at stabilizing energy supplies in high-demand regions. Modernized grids and expanded transmission networks, when coupled with the Desert Southwest pipeline, can support emerging technologies while ensuring reliability.
By 2029, America's electricity demand is projected to grow by 15.8%. The U.S. Department of Energy has warned of potential energy shortages in the near future. To prevent bottlenecks, the Department of Energy and the Federal Energy Regulatory Commission should collaborate to develop a cohesive, long-term strategy to guarantee uninterrupted energy transmission across state boundaries.
The Infrastructure Investment and Jobs Act and Inflation Reduction Act provide initial support for grid upgrades and reliable baseload power. An energy mix composed of multiple sources of energy is necessary to ensure energy availability, reliability, and affordability. We must refrain from prematurely phasing out reliable and inexpensive fossil fuels until adequate new capacity is fully operational.
The individual Brigham McCown, a senior fellow and director of the Initiative on American Energy Security at Hudson Institute, and a professor of practice at Miami University, emphasizes the need for a comprehensive study on expanding transmission capacity to avoid bottlenecks. Without strategic intervention, American families and businesses may find it increasingly challenging to access dependable and affordable electricity.
ICF International expects record-high national power consumption in 2025 and 2026, with demand rising 25% by 2030 and 78% by 2050. A proper all-in approach to energy includes a diverse range of sources, including renewable and non-renewable energy options. The DOE's National Transmission Planning Study calls for tripling transmission capacity by 2050 to prevent bottlenecks.
In conclusion, America's energy future requires a balanced, pragmatic approach that invests in infrastructure, prioritizes reliability, and fosters innovation. By working together, the Department of Energy, the Federal Energy Regulatory Commission, and other stakeholders can ensure a secure, affordable, and sustainable energy future for all Americans.
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