INSIGHTSSERIES
Power & Utilities | Wholesale Markets
June 23, 2025
Rising Electricity Demand Draws Attention to Resource Adequacy Challenges
Regulators and grid operators are responding with emergency measures, interconnection reforms, and market rule changes to address tightening supply-demand margins.
Across the U.S., accelerating electrification and large-load growth driven by data center expansion are contributing to higher demand projections, while generator retirements are…Read the full report
Key Takeaways
- After years of flat demand, U.S. electricity consumption is projected to rise in 2025 and 2026, surpassing the 2024 record, driven largely by data center growth in the commercial sector and increased industrial use, according to EIA.
- FERC is examining resource adequacy challenges across RTO/ISO regions, including issues related to generation capacity, interconnection processes, market reforms, and the evolving role of states.
- NERC forecasts record load growth for summer 2025, with aggregate peak demand expected to rise by 10 GW—more than double the year-over-year increase seen in 2024.
