Electric Power Generation, Transmission, and Distribution Business Guide
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We documented 18 challenges in Electric Power Generation, Transmission, and Distribution. Now get the actionable solutions — vendor recommendations, process fixes, and cost-saving strategies that actually work.
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All 18 Documented Cases
Massive Generation Interconnection Queue Backlog
$10M-$100MTwo terawatts of capacity are stuck in interconnection queues across the United States—nearly twice the currently installed capacity. This backlog creates multi-year delays for both renewable and conventional generation projects seeking grid connections. For utilities and independent power producers, this means delayed revenue streams, project financing failures, and inability to serve customer demand. Grid operators struggle with oversized interconnection queues (MISO proposed MW caps in 2025) that consume engineering resources without resolution. Nearly half of project delays occur during construction phase due to supply chain bottlenecks, lack of prioritization by transmission owners, and delayed interconnection customers lacking necessary permits or power purchase agreements. This bottleneck prevents utilities from meeting the forecasted 128 GW peak demand increase by 2029 and forces them to retain aging generation assets.
Grid Reliability Crisis from Demand Surge
$50M-$500MNERC published an assessment in December 2024 concluding that more than half of the U.S. electric grid could see energy shortfalls in the next five to 10 years, particularly under extreme weather conditions. Peak summer demand is forecast to rise by more than 122 GW in the next decade while generation retirements of up to 115 GW are possible by 2034. Data centers alone could account for 44% of U.S. electricity load growth from 2023-2028, creating sudden hyperscale demand that regional grids cannot absorb. This reliability crisis forces utilities to maintain underutilized generation assets, invest in emergency capacity, operate plants beyond rated capacity, and risk blackouts. The Department of Energy warns blackouts could increase 100-fold by 2030 if reliable power sources are retired without replacement. Operations directors face impossible choices: retire coal/nuclear assets per climate mandates or maintain them for reliability.
Electricity Price Escalation Pressures Affordability
$50M-$300MAverage residential retail electricity prices are projected to be approximately 4.5% higher in 2025 compared to 2024, with ICF forecasting prices could increase almost 20% by 2028 in some regions like Texas and New England. This price escalation creates regulatory and political pressure on utilities, as CFOs face rate case denials, customer activism, and state legislative intervention. Multiple states (Virginia, Georgia, California) introduced bills in 2025 requiring state energy regulators to analyze and reduce data center development's energy cost burdens to consumers, threatening utilities' ability to fully recover infrastructure costs. Rising prices also increase bad debt (customer non-payment) and churn risk as residential customers seek to reduce consumption. Utilities must invest heavily in new generation, transmission, and distribution while simultaneously absorbing costs that regulators will not allow into rates.
Transmission Infrastructure Age and Capacity Constraints
$100M-$500MOver 70% of the country's transmission lines are more than 25 years old, with many approaching the end of their 50-80 year lifespans. This aging infrastructure creates recurring maintenance emergencies, limits grid capacity expansion, and constrains regional generation delivery—particularly for renewable energy sources stuck in remote locations. Transmission owners face inadequate capacity on a regional basis to support new generation and load, forcing them to either invest billions in upgrades or deny interconnection requests. The lack of sufficient transmission to deliver renewable energy where it's needed is seen as a key challenge by the renewable industry. Natural gas pipeline capacity is also inadequate regionally, forcing generation retirements and operational inflexibility. Operations directors must manage equipment failure risks, coordinate complex maintenance windows, and justify massive capital expenditures while CFOs struggle to secure financing for projects with 40-50 year payback periods.