Shovels in Ground for New Power Plants, Wright Says

Summary

US Energy Secretary Chris Wright discussed efforts to meet surging power demand from data centers and new manufacturing without raising electricity prices for Americans. He said power plants are under construction, regulatory reforms are easing bottlenecks, and US gas turbine production will triple next year versus two years ago. Wright also said the administration wants to refill the Strategic Petroleum Reserve and can use both light and heavy crudes.

• Wright says tech and data center developers want power quickly and are willing to help avoid consumer electricity price hikes.
• He expects new large loads from data centers and manufacturing, including a giant aluminum smelter, to drive US industrialization.
• Power plants are under construction, but new capacity takes years; regulatory changes aim to free existing grid output.
• The administration is expediting permits for equipment suppliers, with US gas turbine production set to triple next year versus two years ago.
• Wright warns of reliability risks from prior policies but says reliability and affordability are priorities again.
• He notes gasoline prices are low, while electricity markets will take longer to show results.
• On energy security, he says the US wants to refill the SPR and can process both light and heavy crudes; more crude on the market helps.