A report by the North American Electric Reliability Corp (NERC) warns that more than half of North America is at risk of energy shortfalls in the next five to 10 years. The forecast, released on Tuesday, points to a surge in electricity demand driven by data centers, electrification, and industrial growth, which threatens resource adequacy.
Summer peak demand is expected to rise by over 122 GW in the next decade, adding 15.7% to current system peaks. NERC’s 10-year summer peak demand forecast has grown by more than 50% within the last year. The organization warns that generator retirements and changing resource mix pose significant threats to reliable electricity.
Peak reserve margins will fall below required levels in almost every assessment area, indicating an urgent need for additional resources. However, NERC notes that resource additions are slower than projected, raising concerns about the system’s capacity. The Midcontinent Independent System Operator faces a high risk beginning next year, with energy shortfalls possible during normal peak conditions.
Federal policies are needed to support energy production, manufacturing, and infrastructure, according to National Rural Electric Cooperative Association CEO Jim Matheson. Grid officials have sounded the alarm around system reliability for years, urging policymakers to take action before it’s too late.
Source: https://www.utilitydive.com/news/explosive-demand-growth-blackouts-NERC-LTRA-reliability/735866