U.S. Central Region and New England at Risk of Electricity Shortfalls this Summer

The North American Electric Reliability Corp. warns that most of the central US and New England may face electricity shortfalls this summer due to high temperatures and a changing mix of power supplies. This increases reliability risks, according to the regulator.

The North American Electric Reliability Corp. (NERC) has issued a stark warning: most of the central U.S. and New England may face electricity shortfalls this summer due to high temperatures and a shifting mix of power supplies. This increased risk to grid reliability has been attributed to a combination of factors, including rising demand and changes in the power generation mix [1].

According to NERC, electricity demand in the United States and Canada has grown by 10 gigawatts since last summer, a significant increase from the previous year's growth. This surge in demand is driven by various factors, including the growing use of data centers, manufacturing, and the electrification of industries like transportation. Concurrently, fossil-fired power supplies, such as coal and natural gas, are retiring, while solar and wind power are being increasingly adopted [2].

The shift towards intermittent renewable energy sources like solar and wind presents new challenges for grid reliability, particularly during the summer months when energy consumption peaks due to air conditioning use. Regions like the Southwest Power Pool and the Midwestern grid operator MISO are expected to face significant supply-demand imbalances. For instance, low wind power generation in the Southwest Power Pool and the retirement of 1,575 megawatts of natural gas and coal-fired generation in MISO could exacerbate these issues [2].

NERC's report highlights that more than 7 gigawatts of fossil-fired power generation, including coal and natural gas, is expected to retire since last summer in North America. Simultaneously, the continent has seen the addition of about 30 gigawatts of installed solar capacity and 13 gigawatts of battery storage capacity over the last year [2].

To mitigate the risk of shortfalls, NERC recommends investing in new transmission lines and power supplies to keep up with demand and rising temperatures. John Moura, who leads NERC's reliability assessment and system analysis, emphasized the need for infrastructure development to meet the growing demand [2].

Investors and financial professionals should closely monitor these developments, as they may impact the financial performance of energy companies and the broader economy. The increased risk of electricity shortfalls could lead to higher energy prices and potential disruptions to various sectors, including manufacturing, transportation, and data centers.

References:
[1] https://seekingalpha.com/news/4449872-central-us-at-risk-of-electricity-shortfalls-this-summer-power-regulator-says
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3RM11N:0-middle-swath-of-north-america-at-risk-of-power-shortfalls-this-summer-regulator-says/