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Gas Turbine Supply Constraints Threaten Grid Reliability; More Affordable Near-Term Solutions Can Help
US utilities face a projected 270 GW power gap due to rising demand from AI and electrification and the retirement of coal plants. While utilities are increasingly relying on gas-fired capacity, major turbine manufacturers (GE Vernova, Siemens Energy, and Mitsubishi Power) report delivery timelines extending to 2028-2030 and record backlogs. This supply crunch, combined with rising procurement costs—exemplified by a $900 million cost increase for Duke Indiana's Cayuga plant—creates reliability risks. The report suggests alternatives such as energy efficiency, virtual power plants, grid-enhancing technologies, and clean repowering to meet near-term load growth.
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Document type: Report