A Goldman Sachs report warns of impending U.S. power grid instability, predicting insufficient power to meet peak summer demand within the next few years. Shrinking spare generation capacity increases the risk of rolling blackouts and price surges. Increased power demand, fueled by electrification, electric vehicles, and data centers, outpaces the growth of stable power generation. While renewable energy sources like solar and wind have expanded, their unreliability during peak demand periods is a major concern. The buildout of natural gas power generation has also slowed due to high costs and supply constraints. The U.S. is projected to fall below the recommended 20% reserve margin, reaching a critical 14% by 2027. Specific grids, including PJM, MISO, and ERCOT, face critical capacity shortfalls within the next few years. This situation stems from policies prioritizing rapid clean energy transition over stable fossil fuel generation. The report suggests increased price volatility, investment needs, and consumer risk management strategies as consequences. The article concludes with a call to consider whole-house generators to mitigate potential blackouts.
zerohedge.com
zerohedge.com
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