2026 US power sector outlook

Read Utility Dive's road map to the year ahead for FERC, affordability, renewable energy, distributed energy resources and more.

Read Utility Dive's road map to the year ahead for FERC, affordability, renewable energy, distributed energy resources and more.

Energy affordability has long been a problem for the poorest Americans, but now middle-income families are starting to feel the squeeze.

Wind turbine orders increased 8% in 2025 — mainly outside the U.S. — despite the Trump administration’s efforts to stifle offshore wind development.
However, it is unclear how much generation could be available, and the grid operator doubts it will be needed during the ongoing bitter cold.

“The system is changing faster than the infrastructure needed to support it,” said John Moura, NERC's director of reliability assessments and performance analysis.

“Additional de-obligations are in process but cannot be publicly disclosed until finalized,” said Olivia Tinari, deputy press secretary for DOE’s Office of Public Affairs.

Growing PSE&G’s electric vehicle initiative from a pilot to a full-scale program required flexibility and persistence, writes Dawn Neville, the utility’s senior manager of electric transportation.
Sen. Sheldon Whitehouse, D-R.I., said permitting talks could resume if the Trump administration stops its moves to thwart wind and solar projects.

DOE’s colocation proposal and transmission planning reforms will set FERC’s agenda this year against a backdrop of rising concern over affordability, former commission chairmen and experts say in our 2026 outlook.

Gas generation in the Lower 48 states increased 14%, while solar, wind and hydropower contributions declined from the week before, according to the U.S. Energy Information Administration.
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The plants need flexibility to meet rising electricity demand, the EPA says. Environmental groups argue that undermines Clean Water Act protections for rivers and drinking water sources.

U.S. Energy Secretary Chris Wright and Democratic Gov. Mikie Sherrill of New Jersey used their respective bully pulpits to push their energy priorities. Plus, transmission and, of course, PJM news.
The agency also approved a 1.2-GW pumped storage project planned by Rye Development in Washington.

The White House asked that Congress zero out the solar and wind energy programs of the Office of Energy Efficiency and Renewable Energy, but Congress provided $320 million to those two Energy Department programs.

Secretary of Energy Chris Wright asked grid operators to be prepared to utilize up to 35 GW of backup generation. A consumer advocate warned the plan is unworkable.

Federal Energy Regulatory Commission Chairman Laura Swett said she is “encouraged that PJM and its stakeholders are working cooperatively now, much more so than they have in the recent past.”

The industry is navigating new FEOC rules and steeling itself for the end of some IRA credits. But load growth and rising electricity bills present opportunity, according to experts in our renewable energy outlook.

Madhu Gottumukkala said the Trump administration supports a long-term renewal of the 2015 Cybersecurity and Infrastructure Security Act. The agency is also working on finalizing regulation under the Cyber Incident Reporting for Critical Infrastructure Act.