U.S. grids face greater risks as generators retire, demand rises - NERC

The group painted a bleak picture for some power markets in the U.S., as wide-scale electrification spurs demand to grow at a faster pace than new generation capacity additions, and as old facilities retire. Those markets could face capacity shortfalls as a result, NERC said.

“New environmental regulations and incentives are likely to drive even higher levels of retirements than what we’ve accounted for,” said Mark Olson, NERC’s manager for reliability assessments.

More areas are at risk over the next 10 years than previously reported, Olson added.

The Biden administration’s commitment to shift to carbon-free electricity generation by 2035 has spurred electrification of transportation, heating and other sectors and accelerated the retirements of fossil-fuel based generators.