Utility Dive•25 days ago
2026 US power sector outlook
Key Takeaway
Developers and large power consumers must strategically navigate evolving FERC regulations, IRA incentives, and grid infrastructure challenges to capitalize on the rapid growth in renewables and address increasing load demands.
AI Summary
- •Expect continued rapid growth in renewable energy (solar, wind, storage) and distributed energy resources (DERs), driven by policy and economics, alongside significant load growth from sectors like datacenters.
- •Anticipate ongoing electricity price volatility, potential for increased capacity market prices in some regions due to reliability concerns, and continued strong demand for Power Purchase Agreements (PPAs) as developers and large loads seek long-term stability.
- •FERC's interconnection reform (Order 2023 implementation) and transmission planning initiatives will be central, alongside continued rollout and clarification of Inflation Reduction Act (IRA) tax credits and state-level policies impacting DER deployment.
- •The outlook will likely highlight trends in project development, emphasizing hybrid projects (solar+storage) and the critical need for grid-enhancing technologies to address persistent interconnection queue backlogs.
Topics
capacity-marketccgtdatacenterercotfercinterconnectiramisopjmpolicyppaqueuesolarstoragetransmissionwind