A hot-button topic that I’d like to inform you about is the escalating issue of increased demand of electricity and its impact on grid reliability. Our mission has always been to provide safe, reliable, and affordable power to our members. However, we face significant challenges in fulfilling this promise due to rapidly growing demand, diminishing supply, and public policy.
Demand is surging, largely driven by the rapid growth of data centers. The Energy Information Administration (EIA) projects that power demand will reach record highs in 2024 and 2025, with increases of 2.5% and 3.2%, respectively. Furthermore, grid planners forecast a peak demand growth of 38 gigawatts through 2028, which is equivalent to adding another California to our grid.
Meanwhile, our nation’s electricity supply is decreasing. The North American Electric Reliability Corporation (NERC) has highlighted that more than 110 gigawatts of always-available generation will retire by 2033. This significant reduction in supply puts parts of 19 states, spanning from Montana to Louisiana, at high risk of rolling blackouts during peak conditions over the next five years.
Energy policy plays a critical role in this scenario. NERC has warned that energy policy, particularly timelines for implementation, can be a reliability risk factor. Current U.S. energy policies often fail to adequately consider the impacts on grid resiliency and reliability, exacerbating the challenges we face.
In response, electric cooperatives across the country, alongside the National Rural Electric Cooperative Association (NRECA), are advocating for common-sense policies that balance the growing demand with grid reliability. We believe that energy policy should support the development of new infrastructure and technologies while ensuring that the existing grid remains stable and resilient. Your support for energy conservation efforts and staying informed about energy policy is encouraged and greatly appreciated.
Crow Wing Power is dedicated to cutting carbon emissions and adhering to new state and federal mandates, but we must also prioritize the reliability and affordability of electric service for our members. As a member of the National Rural Electric Association and the Minnesota Rural Electric Association, we advocate for sound energy policy and actively participate in local and regional government affairs. We will continue to keep you informed about our cooperative's business and relevant state energy policies.
Electric cooperatives understand the importance of providing reliable and affordable electricity to local families and businesses. While we support the transition to clean energy technologies, it is crucial to balance these with always-available generation sources to ensure a stable electric grid. Crow Wing Power, along with other cooperatives, delivers power to 42 million Americans. Our top priority is to meet our members' energy needs, and reliable electricity is essential to achieving that goal.