Climate Extremes and Energy Challenges Shape U.S. Outlook
The U.S. is facing a convergence of climate extremes and energy challenges, as highlighted in a recent report. The National Oceanic and Atmospheric Administration (NOAA) data indicates that 2023, 2024, and 2025 are among the hottest years on record. Meanwhile, energy demands are surging, driven by the rapid expansion of data centers, which could increase demand by up to 70 gigawatts by 2038. This comes as 15 gigawatts of energy generation have been retired in recent years, creating a reliability gap. To address this, the PJM Interconnection, a regional transmission organization, has proposed reforms, including a one-time procurement of new capacity, a registry for large energy users, and a 'connect-and-manage' system to ensure new large loads meet their energy needs. These measures aim to balance growing demand with resource adequacy while mitigating climate-related risks.