Report says large parts of the US power grid are past their prime

In short: New analysis says the US power grid is aging and demand is rising, but the biggest problem is how fast new connections can be built.

What's going on

Large parts of the US electrical grid are old. The grid is the system of wires, transformers, and equipment that moves electricity from power plants to homes and businesses. Estimates cited in the report say 31% of transmission equipment (the long distance lines) and 46% of distribution equipment (the local neighborhood network) is within five years of, or already past, its expected working life.

Transformers are a key weak point. They act like electrical “gearboxes” that adjust power to the right levels for different parts of the system. Nearly 70% of power transformers are over 25 years old, which can raise the risk of failures.

Electricity use is also expected to grow. More electric cars, more electric heating, new factories, and data centers all add demand. A major issue is timing, since a data center can be built in two to three years, but new or upgraded transmission lines can take seven years or more.

Utilities are spending, but much of it goes to replacing old parts, not expanding capacity. In 2024, utilities invested about $35 billion in transmission and $60 billion in distribution, and about one third of that went toward expansion. Separately, one estimate projects a $197 billion cumulative investment gap for new power generation by 2029.

What to watch

Outages already cost the US economy an estimated $28 billion to $169 billion each year. Still, the grid has backups and multiple connections, and about 90% of outages happen on local distribution lines, not the big cross-country network. Watch for faster permitting and construction, plus targeted upgrades in areas adding large new loads like data centers.

Source: NYTimes