9 US electric power sector issues to watch in 2025

Robert Walton, Ethan Howland, Diana DiGangi, Larry Pearl, Brian Martucci | Source: Utility DIVE | Posted 01/09/2025

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In November, Renew Home and NRG announced plans to deploy a 1-GW smart thermostat VPP in Texas by 2035. The following month, the Electric Reliability Council of Texas proposed a doubling of capacity in its aggregated distributed energy resource pilot program. In addition, the Electric Power Research Institute is leading two initiatives to advance common DER interoperability standards.


AI generated summary

The U.S. power sector witnessed significant policy advancements in renewables, transmission, nuclear energy, and other areas in 2024. As 2025 unfolds, experts predict that electricity prices will continue to rise due to factors like increased demand, transmission and distribution cost hikes, and higher natural gas prices. With U.S. LNG exports projected to surge, concerns about reliability due to inadequate natural gas pipeline capacity alongside rising electricity consumption from various sectors contribute to this price escalation.

Rising electricity demand poses reliability threats at the start of 2025, with warnings from the North American Electric Reliability Corp. indicating potential energy shortfalls and intense weather conditions that could strain the grid. Additionally, grid operators are planning market changes in response to supply-demand dynamics, with challenges faced by PJM Interconnection and other operators as they navigate capacity market overhauls amid potential supply shortfalls. As the industry grapples with these issues, nuclear reforms, declining battery costs, and advancements in transmission policies are expected to shape the sector's landscape in the coming year.



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Source Link: https://www.utilitydive.com/news/electric-power-sector-issues-to-watch-prices-demand-reliability-renewables-nuclear-vpp-transmission/736492/

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