For years, grid operators, utilities and NERC have warned about the risk of the U.S. electric grid becoming too dependent on intermittent resources and batteries to serve load. To bring more balance and diversity back to the generation fleet, several ISOs/RTOs have adopted interconnection processes that expedite the deployment of what the markets consider to be “reliability resources.” This has led to the prioritization of thousands of megawatts of thermal generation in PJM and MISO.
A dramatic increase in load growth forecasts driven primarily by investment in datacenters has developers and load serving entities seeking capacity wherever they can get it, from traditional natural gas to more emerging platforms like SMRs. This is especially the case for assets that do not require new bulk transmission, which while showing promise in places such as west Texas, is hitting snags in other regions like SPP and MISO.
A change in administration in Washington D.C. in 2025 has hastened nearly all of these trends. The accelerated phaseout of the IRA wind and solar tax credits has many of our clients looking to other asset classes to fill their generation development pipelines beyond 2027. The integrated resource plans of many utility clients look very different than they did just two years ago, especially with the White House fully backing the race to lead in artificial intelligence through rapid data center expansion.
The market response has been swift and measurable. As Reuters reported in August, the U.S. now far outpaces the rest of the world in natural gas generation projects in pre-construction. As this transition unfolds, Ulteig is well positioned to help clients adapt. We have a long history in conventional sources of energy, and many of our utility clients continue to operate gigawatts of thermal resources. Ulteig’s Field Services and Environmental teams have permitted thousands of miles of pipelines, and our Studies experts model the interconnection of large data center loads while optimizing site-specific generation. Across our business, Ulteig has subject matter experts with deep backgrounds in thermal resources.
Ulteig remains committed to supporting clients as they work to complete their wind and solar development pipelines before the tax credits expire. In parallel, we’re helping these same clients, as well as new ones, respond to rapidly changing market dynamics. Agility and unbiased, data-driven decision-making will remain essential for sustained success.