Helping the Trump administration get its initiative to build the largest electricity grid ever seen in the contiguous United States. They’re pledging $15 billion— yes billion— to develop new, cleaner power generation projects. This initiative is particularly timely given the sharply rising demand for electricity, especially from data centers, and a projected rise in peak load. Additionally, the plan clearly recognizes the growing energy demands of the region. In tandem, it highlights the increasing hurdles to build new fossil fuel power plants.
Tim is an independent climate reporter based in Oakland, CA. He teaches in MIT’s Graduate Program in Science Writing and keeps a careful eye on events in energy policy. De Chant received his PhD in environmental science, policy, and management from the University of California, Berkeley. He has a solid background in environmental studies, English, and biology after earning his BA from St. Olaf College.
In fact, reports indicate that PJM’s peak load has skyrocketed 10% in just the past 10 years. Experts already expect it to grow an additional 6.5% by 2027. The demand and need for electricity has never been greater. Tellingly, in response, the Trump administration is planning significant new infrastructure investments to shore up the electricity grid against such attacks. Yet constructing new fossil fuel power plants is fraught with risk. These projects are highly competitive with demand far exceeding available funds and often need hundreds of millions of dollars and take years to complete.
Electricity rates are already increasing to account for the growing demands. By 2025, news stories announced that they had already gone up by close to 10% to 15% over the previous year. It isn’t just traditional consumers driving up demand for electricity. According to a recent study, data centers worldwide will be tripling their energy consumption within just the next 10 years.
Unlike fossil fuels, which provide a clunky response, renewable energy is a much more nimble option. A large, typical utility-scale solar farm can be built in less than 18 months—and can begin generating power even before construction is fully finished. This flexibility can allow them to meet immediate energy needs more quickly and effectively than long lead-time fossil fuel projects.
Despite the urgency of the situation, some industry experts remain cautious about the administration’s push for new power generation investments. Jeffrey Shields, a spokesperson for an industry group, said there’s something to like about the proposal but raised concerns over its specifics.
“We don’t have a lot to say on this,” – Jeffrey Shields
The need for smart, sustainable and clean energy solutions has never been greater. Indeed, stakeholders are watching closely for signs of how much proposed investments can tip the scales toward a cleaner, healthier, more equitable future for the country’s energy sector.
