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US accelerates power grid projects in AI

The Trump administration launched a new initiative on Thursday to accelerate the development of power plants, transmission lines and other infrastructure as artificial intelligence increases demand.

The Department of Energy (DOE) is asking stakeholders, including utilities and transmission managers, for information on investment opportunities near term, the readiness of projects, growth expectations in power demand and any constraints it could address.

On his first day in office, Donald Trump issued an executive order declaring a state of energy emergency. Artificial intelligence, data centres, and electric cars are driving the demand for power to its highest level in 20 years.

The DOE has ordered that several coal and gas plants, which had planned to close down, continue to operate. This is the latest U.S. effort to support fossil fuels.

Trump claims that the rapid adoption of solar power and wind energy has caused U.S. electricity to be unstable and costly, which is why he wants to stop most subsidies. Texas has seen an improvement in reliability, but the grid that uses the most renewable energy in the U.S. is still the one with the highest rate of failure.

The DOE will use the Speed to Power program to determine the best way to utilize funding programs, national emergency authorities and grid expansion to increase power generation.

DOE has millions of dollars in funding and financing, including through its Loan Programs Office. The DOE cancelled a $4.9billion loan guarantee in July for a transmission system that was supposed to transmit power from Kansas wind and solar projects to cities in Midwest and East.

The Federal Energy Regulatory Commission also took action on Thursday to improve grid security. FERC has approved and proposed new rules to reduce risks associated with supply chains, cyber attacks, and electrical grid disruptions due to extreme cold. Extreme cold can sometimes cause blackouts. Green energy opponents claim that coal plants scheduled to retire in Trump's second tenure will still be needed.

Tom Pyle of the American Energy Alliance predicted that, on Trump's orders or out of their own volition, 38 coal plants scheduled to close by 2028 will remain open.

According to the U.S. Energy Information Administration, in July 2025, power plants will burn about 20% more coal in the first quarter of 2025 than in 2024.

(source: Reuters)