Latest News

Maguire: US-driven gas-turbine crunch could speed up global clean energy adoption

The rush to buy as many gas turbines by U.S. utilities to boost their local power production is leading to a global shortage. This may also prompt other power systems into pursuing cleaner alternatives.

According to Global Energy Monitor data, the amount of U.S. natural gas-fired power plants under construction in the United States has more than doubled since a year earlier, and that amount is more than fivefold higher than it was at early 2025.

The U.S. surge in gas-fired power capacity has pushed the delivery of new gas turbines well into the 2030s. Meanwhile, the cost of utility-scale solar farm backed by energy storage battery systems continues to fall.

Companies in other countries are prioritising non-gas power sources as a result of the combination of increasing uncertainty in the gas supply chain and the availability of cleaner power alternatives.

Rapid Growth at Home

According to GEM, the U.S. pipeline of new gas-powered generator capacity has exploded over the last year. The total capacity under construction is expected to more than double by 2025 and reach 30 gigawatts.

Pre-construction capacity for U.S. Gas has increased by 420% since early 2025, to just under 159 GW.

Pre-construction capacity in the U.S. represents a third the global capacity pipeline for gas at the same stage of development. This means the U.S. holds a record share of global gas power pipeline.

Utilities are the main contractors for the new capacity planned, but a few so-called hyperscalers such as Meta and Microsoft intend to power their facilities directly from gas plants.

The appeal of gas-fired electricity in the U.S. has been boosted by the strong policy support in Washington and the record high domestic production of natural gases.

The promise to reduce restrictions on gas exploration in federal lands has also fueled expectations that U.S. supplies of gas will continue to grow and will?remain the most abundant source of power available to U.S. tech firms and utilities.

COOLING Demand Overseas

There are signs that gas power is losing popularity in other countries.

Gas prices have risen and fluctuated in Europe and the U.S., reaching three-year highs last month.

Gas-importing countries also do not want to become dependent on potentially belligerent trading partner.

The fallout from Russia's invasion in Ukraine 2022 is still affecting several European gas-consuming countries. They are reluctant to import LNG from the U.S. and instead use tariffs and threats of trade as tools of coercion.

In Asia and Africa as well, energy sovereignty is a growing concern. The production of solar panels and batteries for the energy transition creates local jobs while also helping to reduce energy imports.

MOVING TARGETS

Around 234 GW of gas pipelines are planned for Asia, and another 19.3 GW is planned for Africa.

China has 61 GW in pre-construction and 31 GW under construction. It is increasing its gas-powered footprint.

The wide time frame of the pre-construction project means that these capacity levels will change over time, especially in China, where the mix of generation is changing at a record pace.

China is the world's leading producer of renewable energy and manufacturer of clean-energy components. Its utilities and government are prioritising energy generated locally over imported fuels.

China is the largest exporter in the world of clean energy systems and parts, such as solar panels and batteries, which are increasingly popular with utilities around the globe.

Beijing continues to place a high priority on supporting these manufacturing and export-oriented industries, which means that China will continue to ship clean energy components even as the scarcity of gas turbines increases.

The prospect of a plentiful supply of affordable renewable equipment may be more appealing to global power system managers than the uncertain timeline and high costs of gas power parts.

This could lead to a divergence of global power systems, with the U.S. becoming ever more gassy while other major markets choose a cleaner composition.

These are the opinions of the columnist, who is also an author. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.

(source: Reuters)