NextEra Energy, the largest utility in the U.S., has expressed concerns that natural gas power plants can only satisfy a portion of the growing electricity demand projected to surge through the end of this decade. CEO John Ketchum noted that even under optimal conditions, only about 75 gigawatts (GW) of gas-powered generation might be developed by 2030, representing a mere 16% of the total 460 GW needed.

The costs associated with constructing these gas plants have skyrocketed in the past 18 months, and if the U.S. continues to focus primarily on gas, prices will rise further, burdening consumers and businesses alike. Instead, Ketchum advocates for a diversified energy strategy that includes a significant reliance on renewable sources to fulfill the majority of the energy demand—around 350 GW. The remaining capacity is expected to come from extending the life of current coal plants.

Ketchum emphasized the necessity for a mixed energy approach, stating, “We need renewables, we need gas, we need nuclear.” He argued against overly relying on one type of energy generation, warning that losing the renewable tax credits would make the U.S. dependent solely on gas generation.

The surge in electricity demand is being significantly driven by the expansive operational needs of major technology companies, such as Google, Microsoft, Meta, and Amazon. The race for power access has become a pivotal issue. However, increasing supply chain challenges, such as shortages of turbines and skilled labor, are likely to hinder the rapid development of new power generation capacities.

In parallel, U.S. Energy Secretary Chris Wright confirmed a strategic shift aimed at reinforcing fossil fuel dependence, marking a departure from the previous administration’s renewable energy initiatives. Ketchum predicts a staggering 55% increase in U.S. electricity demand over the next 20 years, a growth rate six times higher than the 9% seen in the past two decades.

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