Above: Pennsylvania State Capitol in Harrisburg. Photo source: Pennsylvania Capitol.

By Ruth McCormick, Vice President, Federal and State Programs, BCSE

In 2025, U.S. electricity demand rose considerably for the first time in decades, coinciding with rising electricity prices. This unprecedented growth is a real, urgent, and complex challenge facing many states across America.

Few are facing this challenge and opportunity as acutely as state-level regulators. This month, BCSE’s American Energy Abundance Alliance convened a discussion between utility commissioners and energy business leaders alongside NARUC’s Winter Policy Summit in Washington, DC.

During these roundtables, utility commissioners discussed what states are doing to attract data centers, re-industrialize, and meet the needs of residential customers. BCSE member companies – from the energy efficiency, renewable energy, natural gas, and energy storage sectors – in turn shared information with commissioners about what technology providers are seeing in the market and how they can help states meet growing energy demand.

One thing is certain: no single solution will meet the challenge. An all-of-the-above, technology-inclusive approach along with demand-side management is required.

Here are the discussion takeaways on the top five priorities for meeting demand growth in states across the country:

 

1) Energy demand is rising, driven by growth in data centers, manufacturing, and increased electricity use.

Rising energy demand is leading to increased focus on energy reliability and affordability for states across the country.

For example, Utah forecasts the need to triple energy generation by 2050 as the result of increased energy demand from population growth, electrification, energy-intensive industries, and retirement of existing resources.

States are approaching these issues in different ways. Utah is looking at a large load tariff for high-energy users like data centers and large industrial facilities. This aims to manage new, rapid, and massive power demand while protecting existing ratepayers from the high costs of grid upgrades and potential stranded assets.

Other states, like Texas, are leading the “bring your own energy” movement. Large load centers are required to provide their own energy so as not to increase costs or cause reliability issues for existing customers.

 

2) Amid this demand growth, America needs more energy now – and U.S. power generation hit a 20-year high in 2025.

The United States built the most new power-generating capacity in more than two decades in 2025 with 54 GW of new utility-scale generation and storage capacity commissioned, according to the 2026 Sustainable Energy in America Factbook.

Renewables accounted for 61% of new capacity, with utility-scale solar specifically leading with 27 GW alternating current commissioned. Utility-scale energy storage emerged as a central component of new capacity, with a record 15 GW added in 2025, up 35% year-on-year. Renewables plus storage offers transformative, flexible, and sustainable infrastructure that can store and dispatch energy on demand.

Large customers should be viewed as potential grid partners, not just cost drivers. Hyperscalers that offer on-demand computing, storage, and network resources are looking at hydropower and geothermal generation, as well as emerging technologies such as small modular nuclear reactors and fusion.

The timeliness of new generation capacity is now a dominant consideration for large loads. States like Pennsylvania are focused on revitalizing sites of retired generation assets, where transmission lines already exist.

States like California are interested in speeding up interconnection processes to reduce the time it takes for new power generation projects to receive approval and physically connect to the electrical grid. The state is transitioning from a “first-come, first-served” model to “first-ready, first-served,” while also increasing automation to eliminate backlogs.

 

3) Demand-side solutions are key to easing strain on the grid.

Technologies and strategies that reduce energy consumption, make the electrical grid operate more efficiently, and offer cost savings are highly valuable. However, their implementation is currently slowed down by overly complex, slow, or outdated government and utility regulations.

Nevertheless, states like Vermont are focused on grid efficiency and flexibility to rapidly respond to changing supply and demand conditions.

 

4) Battery storage and microgrid technologies can improve energy reliability and project economics.

Microgrids can provide utility-grade installations that seamlessly integrate solar, energy storage, and low-emission natural gas generators. Together, they provide clean, cost-effective electric resilience. They also enable load flexibility that provides economic value to the asset owner as well as the energy system overall.

Long duration energy storage (LDES) involves various readily available commercial technologies with no degradation. These crucial technologies – such as iron-flow batteries and thermal storage – offer high-capacity, long-term storage lasting from hours to days and are used to balance grid demand.

 

5) Building public-private partnerships and long-term business certainty will drive the next era of energy investment.

Clear, predictable policy signals and market access are essential to mobilize private capital. Investors need to trust that the government’s rules, laws, and market access will remain stable and predictable over time.

Near-term actions must be aligned with mid- and long-term benefits for the entirety of the energy system to ensure a “no-regrets” policy. Decisions, policies, and investments made today must support the long-term goals of the energy system rather than focusing solely on quick, temporary fixes that might cause problems later.

Public-private partnerships are critical to accelerating infrastructure development and reducing risk. In a world with limited public funds and urgent infrastructure needs, partnering with the private sector can get projects built faster, cheaper, and with better risk management.

 

Conclusion

America needs affordable, reliable energy now – and a broad portfolio of energy technologies is ready to hit the ground running. By supporting the deployment of these technologies, state utility commissioners can keep energy costs low, improve reliability, and build a prosperous America for all.

Interested in building a vibrant, competitive, and sustainable U.S. economy across all 50 states? Learn more about how to get involved with the American Energy Abundance Alliance.