The future of America’s power grid Image By Kim David We live in a great country with an abundant supply of energy. We enjoy freedoms that so many others will never have. However, there are important and timely issues about the future of America’s power grid and the challenges we face in balancing energy transition with grid stability, affordability, and reliability. I was all set to write about Natural gas as a stabilizing force and the essential role it plays in providing grid reliability until I saw the NERC 2024 Long Term Reliability Assessment that was just released. Don’t get me wrong, natural gas is still incredibly important to the future of America’s power generation, but we still can’t meet our current energy needs – let alone generate the significant amount of energy needed for tomorrow – without taking a good look at what’s going on with coal. Increasing demands on a diminished baseload The report highlights the looming power shortage in the wake of the planned retirements of America’s coal-fired power plants. The ongoing shift from coal to renewable energy sources like wind and solar is a key component of the current national environmental policy. The impacts of retiring three-fourths of all U.S. coal power plants by 2029 – and the loss of 60,000 megawatts (MW) of generated power – can’t be ignored. The grid’s reliance on intermittent energy sources, such as wind and solar, presents a significant challenge. Without large-scale, reliable backup systems—primarily natural gas or other dispatchable energy sources like coal—there are substantial risks to grid stability, particularly during peak demand periods or extreme weather events when renewable energy generation can be low. Add in an expected increase of 128,000MW needed to meet the demands of artificial intelligence, data centers, bitcoin mining, and industry. We can’t build power plants fast enough. Our energy balancing act There’s an important tension between pushing for a cleaner energy future and maintaining grid reliability and affordability. While the move toward renewables is part of long-term environmental goals, the immediate costs of transitioning—such as building new infrastructure for solar and wind, decommissioning coal plants, and increasing reliance on natural gas—are being passed on to consumers. The rising cost of utility rates, is a growing concern even in states like Oklahoma, where both traditional and renewable energy sources are part of the mix. The financial burden of higher utility rates can disproportionately affect low- and middle-income households. The broader economic impact, including higher costs for goods and services, also compounds the issue. Another key concern is the inadequate infrastructure to fully capitalize on natural gas resources as well renewables. While natural gas is abundant in the U.S., the pipeline infrastructure required to transport it efficiently from production areas to power plants or industrial centers is underdeveloped in many regions. Moreover, as renewables become more prominent, expanding and modernizing grid infrastructure to handle distributed generation from solar and wind farms is also essential. This all takes time and money. Going forward It is imperative that the Trump administration and Congress prioritize grid stability, reliability, and affordability. Policymakers will need to develop a more coherent, long-term strategy that balances environmental goals with economic realities. This includes ensuring that we have the policies in place to prevent the loss of power generated from coal until it can be economically and adequately replaced. Energy policy has historically been a highly politicized issue, but moving forward, it may be essential for both sides of the aisle to work together. The situation requires pragmatic solutions, not ideological purity, especially when it comes to grid security and the need for reliable, affordable energy. The future of America’s power grid must focus on the balance between environmental goals, energy security, affordability, and the practical realities of power generation. As the energy landscape continues to evolve, it will require bold, forward-thinking policies and investments to ensure a reliable, affordable energy future for all Americans. The importance of bridging the gap between retiring coal plants and using natural gas as a stabilizing force in this transition cannot be ignored. Kim David, of Oklahoma, is a small business owner, former state senator and current chairman of the Oklahoma Corporation Commission. *The opinions expressed in this column are those of the author and do not necessarily reflect the views of EnergyPlatform.News.
