US Fossil Fuel Infrastructure Construction Rises as Renewable Growth Slows

Increased Fossil Fuel Development

The United States is experiencing a surge in fossil fuel infrastructure construction, reaching levels not seen in a decade. This trend coincides with a slowdown in the growth of renewable energy sources, according to a report by the Environmental Defense Fund and Atlas Public Policy.

Rising Electricity Demand

Electricity demand in the US is climbing at its fastest rate in over a decade. This increase is attributed to the proliferation of data centers, new factories, and a growing number of electric vehicles connecting to the grid. These factors are placing significant pressure on the national power supply.

Policy Shifts and Impact

The current administration's policies are reportedly favoring fossil fuels, with efforts to impede wind and solar projects through stop-work orders, permit blocks, and removal of tax incentives. This policy direction is contributing to the shift in the energy landscape. If planned gas projects are completed, they could lead to increased pollution and higher electricity prices for decades.

Plans for new fossil fuel infrastructure have risen from 5% of all new capacity in 2024 to 30% by the second quarter of 2026, based on US Energy Information Administration data analyzed in the report.

Renewables' Previous Gains

Despite the recent shift, renewables have made significant progress. In 2024, wind and solar combined produced more electricity than coal for the first time. Solar was the fastest-growing source of new electricity generation that year, accounting for 81% of added capacity. Globally, solar has become the most economical power source in many regions.