New report downgrades U.S. energy infrastructure By EPN Staff An engineering industry association says the nation is moving in the wrong direction regarding its energy infrastructure. The American Society of Civil Engineers (ASCE) has given U.S. energy infrastructure a D+ in its most recent report card, down from a C- in 2021. The 2025 Report Card for America’s Infrastructure includes grades for 18 different categories, including roads, schools, wastewater, aviation and broadband. Why it matters The reasons for the downgraded energy infrastructure grade are tied to supply and demand: Soaring electricity demand due to data centers and electric vehicles is occurring just at the time federal and state regulations aim to reduce greenhouse gas emissions and move away from more reliable oil, coal and gas. Electricity demand is expected to double by 2030. Meanwhile, the infrastructure that delivers that power is aging past its useful life, while severe weather and cyberattacks threaten the grid. The report says utilities will need to double existing transmission capacity to connect new renewable generation sources, while noting a shortage of distribution transformers. The National Renewable Energy Laboratory estimates half of the nation’s 60 to 80 million distribution centers are reaching their end of life, while Wood Mackenzie, an energy consulting firm, indicates lead times on transformer availability have grown to 120 weeks. The bigger picture Electricity is distributed nationwide via high-voltage transmission lines linked to substations that reduce power for delivery through distribution lines. However, as electric generation grows, the infrastructure remains insufficient, requiring equipment replacement and grid expansion. Despite investments from the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, 80% of outages since 2000 are due to severe weather, causing long recovery times. The report highlights vulnerabilities in the 79,000 substation transformer facilities to intentional attacks and severe weather. Without proper infrastructure, new energy generation cannot be utilized. Furthermore, the lengthy permitting process averages 35 months, leading to project delays and increased interconnection queues. Additional context Nearly 2,600 GW of generation and storage capacity is seeking grid interconnection. Though FERC adopted reforms in 2023 to expedite this process, most regions have yet to implement them. “New generation or storage projects must submit interconnection requests to be added to the grid,” the report states. “The lengthy request process, which can take an average of 35 months to complete, and coordination with all stakeholders is cited by developers as the leading cause of project delays and cancellations, and this has led to interconnection queues increasing nearly eightfold in the past decade and by 30% in 2023 alone.” The ASCE has made several recommendations to improve the nation’s energy infrastructure grade: Adopt a federal energy policy to address technology changes, carbon reduction, renewables, distributed generation, state factors, and rate affordability. Develop a national transformer inventory for quick replacement after disasters. Enhance grid and pipeline inspections to improve reliability and mitigate risks. Increase storage infrastructure. Harden the grid against natural disasters and cyberattacks. Design energy infrastructure with life-cycle cost analysis and expand transmission grids to meet demand. Adjust electricity rates to support capital expenditures and resilience initiatives.
