Nearly halfway through a decade critical for mitigating climate change, US utilities and investors plan to add 133 new natural gas-fired power plants to the nation’s grid, as reported by S&P Global Market Intelligence. Additionally, 4 oil-fired plants and two coal-fired plants are either under construction or in early development.
These plans for new fossil fuel-based power generation emerge amidst growing concerns over increasing power demand driven by electrification and industrial growth.
Surging Power Demand in the U.S.
Electricity use in the United States was around 4,085 terawatt hours in 2022, per Statista data. Projections indicate that U.S. electricity consumption will rise to 5,178 terawatt hours by 2050. That’s an increase of about 27% from 2022 levels.
In December 2023, grid regulators warned of potential power demand surpassing supply in the coming decade. Notably, consulting firm Grid Strategies noted that the “era of flat power demand is over.”
According to some experts, long-term investments in natural gas infrastructure pose a threat to the nation’s commitment to halving economy-wide greenhouse gas emissions by 2030, which could result in stranded assets.
For instance, Lauren Shwisberg, a principal in the carbon-free electricity practice at RMI, emphasized the need for a significant reduction in gas generation and emissions in the power sector by 2035. However, current utility plans suggest otherwise.
RMI’s latest forecast, based on data from 121 utility resource plans, projects an 18% increase in US natural gas-fueled power generation between 2024 and 2035.
This trend raises concerns about aligning energy development with climate goals, highlighting the challenges of transitioning to a cleaner grid.
Balancing Climate Goals with Gas Infrastructure
Limiting global warming to 1.5°C above preindustrial levels calls for states to cut emissions across sectors by nearly 50% by 2030. However, US CO2 emissions from gas plants were 39% higher in 2023 than in 2017, as per the US Energy Information Administration. Notably, 2023 saw CO2 emissions from gas plants surpass those from coal for the first time.
More remarkably, the surge in energy use by data centers, driven by the rise of AI, has placed the energy industry in a challenging position.
Estimates show that power demand from data centers will explode. The International Energy Agency forecasts that energy use in data centers will rise to around 1,050 TWh in 2026, from 200 terawatt-hours (TWh) in 2022. Putting this in context, this is equivalent to the energy demand of Germany.
Ernest Moniz, head of the nonprofit energy research group EFI Foundation, addressed this power concern during a recent interview.
“There’s some battery storage, there’s some renewables, but the inability to [quickly] build electricity transmission infrastructure is a huge impediment. So we need the gas capacity.”
Monitz emphasized that natural gas still has a role in a decarbonized world. Despite this, US utilities continue to advance new natural gas projects. And while ratepayer advocates, environmental groups and climate-conscious corporate customers closely scrutinize their plans.
Regional Developments and Controversies
Wisconsin Electric Power Co., part of WEC Energy Group, seeks state approval for $2.1 billion in rate increases to fund 2 new natural gas-fired plants, an LNG storage facility, and 33 miles of pipelines. This infrastructure will replace 4 coal units shutting down by 2025.
In Arizona, the Salt River Project (SRP) plans to add 2 GW of gas-fired generation by 2035 to integrate 9.5 GW of renewables and storage and replace over 1.3 GW of retiring coal capacity. SRP cites a 40% rise in demand over the next decade.
Critics, including the Sierra Club, argue this plan will exacerbate water issues, raise costs, and worsen the climate crisis. SRP’s analysis showed no-gas options would not be reliable or affordable.
In Texas and the Southeast, utilities are pushing for more natural gas generation. Duke Energy’s updated plans for the Carolinas include 10 new gas-fired units, adding nearly 9 GW by 2033. These “hydrogen-capable” plants aim to help Duke reach carbon neutrality by 2050, despite public concerns over rising renewables costs.
Georgia Power Co.’s proposal for over 1.4 GW of new gas and oil-fired power by 2027 was approved, despite Microsoft’s claims of over-forecasting demand. The Southern Environmental Law Center estimates these investments will cost customers about $3 billion.
Critics argue that regulators in states without emissions reduction laws focus solely on costs, ignoring climate benefits. For a watchdog utility group’s leader, David Pomerantz, utilities’ attempts to balance decarbonization goals with building new gas plants are contradictory.
As the US faces growing power demands and strives to meet climate goals, new fossil fuel plants raise significant concerns. The projected increase in natural gas infrastructure may conflict with the nation’s emissions reduction commitments, highlighting the challenges of balancing energy needs with environmental responsibilities.
The post US Power Demand Surge Spurs 133 New Gas Plants Amid Climate Targets appeared first on Carbon Credits.
The uranium price has continued its upward trajectory this week, climbing to 85.67 USD. This represents a solid 2.19% gain over the last seven days and extends the year-to-date performance to a 5.09% increase. After a period of consolidation, the market is witnessing renewed momentum driven by the converging forces of a widening supply deficit and escalating energy demands from the technology sector.
Uranium Price
Market Drivers for the Uranium Price
The primary catalyst behind the recent movement is the intensifying focus on nuclear energy as a critical solution for powering artificial intelligence (AI) infrastructure. As data centers expand globally, tech giants are increasingly seeking reliable, carbon-free baseload power, prompting a reassessment of long-term demand. Recent reports indicate that major utilities are accelerating their contracting cycles to secure fuel inventory, anticipating a squeeze as new reactors come online in Asia and dormant facilities restart in Japan.
On the supply side, geopolitical friction continues to tighten the market. Persistent restrictions on Russian nuclear fuel imports have forced Western utilities to pivot toward alternative suppliers, creating bottlenecks in conversion and enrichment services. Additionally, recent activity from physical funds—most notably a reported purchase of 100,000 pounds of yellowcake by Sprott—has removed spot inventory, adding immediate upward pressure to the uranium price.
Technical Outlook
Technically, uranium has firmly established support above the psychological $80 level. The breakout above $85 signals bullish sentiment, with analysts eyeing the $90 mark as the next key resistance zone. The 30-day movement of 8.27% suggests that buyers are stepping in aggressively on dips, reinforcing a strong uptrend. If the price can sustain a close above $86, it may open the door for a retest of the cyclical highs seen in previous years. However, investors should remain attentive to upcoming production reports from major miners like Kazatomprom and Cameco, which could introduce short-term volatility.
The post Uranium Price Today: AI Power Demand and Supply Deficits Fuel Rally appeared first on Carbon Credits.
The Lithium Price surged to a fresh two-year high today, closing at 170,999.81 CNY per tonne. This marks a significant 7.55% gain over the last seven days and extends a powerful year-to-date rally of 44.38%. After a prolonged period of consolidation, the battery metal has broken critical resistance levels, driven by a convergence of aggressive policy shifts in China and renewed supply constraints.
Lithium Price
Market Drivers for the Lithium Price Rally
The primary catalyst for this week’s 7.55% move is the sudden tightening of supply in China’s Jiangxi province. Authorities have canceled 27 mining permits in the hub as part of an environmental "anti-involution" campaign, effectively removing significant feedstock from the market. This supply shock coincided with Beijing’s announcement that export tax rebates for battery products will be cut from 9% to 6% starting in April. This policy shift has triggered a massive "front-running" effect, with manufacturers rushing to secure raw materials and export finished goods before the deadline.
Adding fuel to the fire, industry giant CATL reportedly placed a massive $17.2 billion order for cathode materials earlier this week. This demand signal has forced downstream players to cover spot positions aggressively, exacerbating the squeeze created by the Jiangxi permit cancellations.
Technical Outlook
Technically, the Lithium Price has staged a decisive breakout above the psychological 170,000 CNY level. The 30-day movement of 71.86% suggests the market is in a steep markup phase, fueled by short covering and panic buying. Momentum indicators are currently in overbought territory, but the fundamental supply deficits suggest support remains strong at the 155,000 CNY breakout zone. If the rally sustains, the next key resistance target lies near 200,000 CNY, a level not seen since the market began its correction two years ago.
The post Lithium Price Today: China’s Supply Crackdown and Tax Overhaul Fuel 7% Rally appeared first on Carbon Credits.
The Lithium price continued its explosive start to 2026, surging to 170,999.81 CNY per tonne on Friday. The battery metal has posted a remarkable 7.55% gain over the last seven days alone, extending a massive 71.86% rally over the past month. Year-to-date, lithium prices are up 44.38%, marking a definitive reversal from the surpluses that plagued the market in previous years.
Lithium Price
Market Drivers
Two primary factors are fueling the current rally: a surge in utility-scale energy storage demand and sudden supply constraints in China’s mining hubs.
- Energy Storage Demand Spike: While EV sales remain steady, the demand for lithium iron phosphate (LFP) batteries in energy storage systems (ESS) has outperformed expectations. Analysts forecast a 55% growth in ESS installations for 2026, driven by Beijing’s mandate to double EV charging capacity and grid storage infrastructure by 2027.
- Jiangxi Supply Crunch: On the supply side, Chinese authorities recently canceled 27 mining permits in the lithium hub of Jiangxi as part of an environmental crackdown. This follows the suspension of operations at CATL’s Jianxiawo mine, effectively removing significant monthly tonnage from the market just as downstream battery makers rush to restock ahead of reduced export rebates.
Technical Outlook
Technically, the Lithium price has decisively broken through the psychological resistance level of 150,000 CNY. The steep vertical ascent suggests intense buying pressure, likely exacerbated by short covering from traders who were positioned for a surplus. With the price now firmly establishing support above 160,000 CNY, market participants are eyeing the 200,000 CNY level as the next major target. However, the Relative Strength Index (RSI) indicates the metal is in overbought territory, suggesting potential volatility in the short term as the market digests these rapid gains.
The post Lithium Price Today: Energy Storage Boom and Supply Cuts Ignite 71% Rally appeared first on Carbon Credits.
Uranium Price Today: AI Power Demand and Supply Deficits Fuel Rally
Lithium Price Today: China’s Supply Crackdown and Tax Overhaul Fuel 7% Rally
Lithium Price Today: Energy Storage Boom and Supply Cuts Ignite 71% Rally
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