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US faces increasing risks of power outages because of rising winter demand and changing fuel mix

North American Electric Reliability Corporation reported on Thursday that the risk of U.S. outages has increased due to the changing mix of electricity supplies and the rapidly increasing demand during the winter months.

NERC stated that the Mid-Atlantic region, Midwest, Northeast, and Texas may face a high-risk of power shortages before the end of 'the 'decade.

This week, high winds and prolonged freezing caused electrical systems to struggle. More than one million U.S. households and businesses lost power at a single point.

In its long-term analysis, NERC stated that the coldest months will pose an increased challenge to the grid. This is partly due to the rapid additions of solar energy, which works best during the summer sun, and the 'electrification heating systems. According to NERC (an independent regulator for the U.S.-Canadian bulk power system), the report predicted that the electricity demand in North America will exceed the peak demand from the last 20 years over the next decade. Winter peak demand will increase by 245 gigawatts in the next decade. A gigawatt of electricity is enough to run about 750,000 households.

As more heating systems electrify, winter demand for power is growing faster than summer demand. Data centers are primarily responsible for the projected rise in demand.

According to the assessment, power reserve margins will?reduce in many regions due to rising demand and new supply.

NERC's assessment is a?evolving? process that uses data, other information and will be available from mid-2025.

PJM Interconnection - the largest grid in North America - is forecast to have a supply reserve margin of about '14% by 2030, down from almost 30% this year. This is based on data collected last year. MISO's Midwest U.S. Grid is expected to see reserves fall from 11% to 4% over the same time period. (Reporting from Laila K. Kearney, New York; Tim McLaughlin, Boston; editing by Cynthia Osterman).

(source: Reuters)