The selected projects span several areas, including new power generation and storage systems, equipment maintenance, environmental monitoring and fish passage. If negotiations are completed, the developers will receive vouchers providing in-kind support from testing facilities selected according to their technical requirements.

Hydropower Testing Network Expands Technology Access

This marks the second selection round for the network. Funded by the DOE’s Hydropower and Hydrokinetic Office (H2O), the Hydropower Testing Network provides access to more than 65 specialised physical testing and modelling capabilities across 21 facilities. These resources include hydraulic and biological testing as well as techno-economic analysis.

“By pairing industry innovators with leading U.S. test facilities and technical expertise, HyTN accelerates the development of next-generation technologies that keep hydropower reliable and abundant,” said H2O Director Nichole Fitzgerald.

New Generation And Storage Technologies

Among the selected projects, Emrgy will demonstrate a low-head turbine prototype designed to generate electricity from man-made water infrastructure, including irrigation canals. GenH will test a rapidly deployable technology for existing non-powered dams at the University of Minnesota. The results are expected to support a predictive framework for developing systems suited to different locations.

Two projects involve pumped storage. Hydro Green Energy will collaborate with the National Laboratory of the Rockies on an economic analysis focused on a grid-oriented scheme using an existing dam and reservoir. The work is intended to support further progress toward licensing and construction.

RCAM Technologies, operating as Sperra, will work with Polaris EcoSystems to develop a 3D-printed subsea pumped storage system. The technology is designed to store electricity using hollow concrete spheres positioned on the seafloor.

Equipment Maintenance And Component Performance

Several projects will examine equipment maintenance and component performance. Chelan County Public Utility District will conduct two projects with Pacific Northwest National Laboratory (PNNL). One will evaluate self-lubricating, grease-free wicket gate stem bushings, while the other will validate a low-temperature cold spray process for repairing worn turbine components on site without applying heat.

Kingsbury will continue its work with Oak Ridge National Laboratory (ORNL) to assess an advanced thermoplastic polymer as a potential bearing material for hydropower generators. VBASE Oil Company will also continue working with ORNL to test a lubricant intended for hydropower facilities.

Dry Surface Technologies will partner with PNNL to scale production of a non-toxic antifouling coating toward a pilot manufacturing process. The coating is intended to provide a lower-cost method for limiting component clogging and reducing repairs.

Prometheus Innovations has received two project selections with PNNL. One will continue testing a coating designed to prevent aquatic growth, including invasive mussels and brown algae. The second will evaluate an underwater net coating designed to attract or repel fish and help prevent them from entering water intake structures.

Fish passage specialist Radmantis will continue work initiated during the first HyTN selection round at a Verdantas testing flume. The project will examine whether mechanically guided fish entrainment can improve AI-based selective fish passage at hydropower facilities.

Environmental Monitoring Technologies

Environmental monitoring work includes Nucleic Sensing Systems’ validation of a real-time environmental DNA sensor. The device is designed to distinguish fresh, dissolved eDNA from stale or transported material.

The University of Washington’s Applied Physics Laboratory will work with PNNL to evaluate the reliability and durability of a small, low-cost water quality sensor for hydropower and pumped storage facilities.

The voucher programme is managed by ENERGYWERX in partnership with DOE under a partnership intermediary agreement established by the department’s Office of Technology Commercialization.

The investment advances a previous executive order by President Donald Trump aimed at increasing reactor-powered generation and securing civil nuclear supply chains. “By getting more power out of the nuclear plants we already have, we can deliver more affordable, reliable, around-the-clock energy for American families and businesses,” said DOE Secretary Wright in a statement.

Vistra operates six reactors at four U.S. plants generating more than 6.5 GW, enough to power over 3 million homes. It also secured PPAs with Facebook parent company Meta for more than 2.6 GW of nuclear power, including 2,176 MW from Perry and 900 MW from Davis–Besse Nuclear Power Station.

The nuclear financing comes today as hyperscalers seek existing reliable nuclear assets for carbon-free, baseload power for AI demand across the U.S. nuclear sector. The Trump administration is targeting 300 GW of nuclear capacity by 2050. Wright said DOE’s Energy Dominance Financing Office has “significant lending authority” and “by far the biggest use of those dollars will be for nuclear power plants.” Utilities have used power uprates since the 1970s, and the NRC approved more than 170 as of 2022. “These investments will extend the life of existing reactors, increase nuclear generation, and deliver abundant, around-the-clock power to lower costs and power American prosperity for decades to come,” said Energy Dominance Financing director Gregory A. Beard.

EIA Projects Sustained Growth in Electricity Demand

The EIA forecast that total U.S. power consumption will climb from a record 4,195 billion kilowatt-hours (kWh) in 2025 to 4,270 billion kWh in 2026, and further to 4,349 billion kWh in 2027. The agency attributes this sustained upward trajectory to data centers serving artificial intelligence and cryptocurrency operations, alongside a growing shift away from fossil fuels for heating and transport across both residential and commercial sectors.

U.S. power demand, according to the outlook, is being shaped by structural changes in how energy is consumed nationwide, with technology infrastructure playing an increasingly central role.

West South Central Region Leads Electricity Sales Growth

Despite a temporary pause on connecting new data center projects to the grid in Texas, the West South Central region has emerged as the largest contributor to electricity sales growth in the EIA’s forecast period. This underscores the region’s continued significance as a hub for large-scale power-intensive facilities, even as grid interconnection challenges create short-term friction.

Sector-by-Sector Electricity Sales Breakdown for 2026

The EIA provided detailed projections for electricity sales by customer category in 2026. Commercial customers are expected to account for 1,542 billion kWh, surpassing residential consumers at 1,527 billion kWh and industrial customers at 1,059 billion kWh.

These figures represent notable milestones when placed against historical benchmarks. Residential electricity consumption reached an all-time high of 1,515 billion kWh in 2025, while commercial customers set their record at 1,493 billion kWh in the same year. Industrial electricity consumption peaked at 1,064 billion kWh back in 2000. The 2026 projections are set to exceed all prior records across residential and commercial categories.

Renewable Energy Share Rising as Coal Continues to Decline

The EIA outlook also highlights a continuing shift in the fuel mix used for power generation. The share of electricity generated from coal is projected to fall from 17% in 2025 to 16% in 2026, and further to 14% in 2027. Natural gas is expected to maintain a steady 40% share across both 2026 and 2027, unchanged from 2025.

Renewable energy’s share of total power generation is forecast to grow from approximately 24% in 2025 to 25% in 2026, reaching 27% by 2027. Nuclear power is expected to hold a consistent 18% share in both 2026 and 2027, matching its 2025 contribution.

Natural Gas Consumption Trends Across Key Sectors

On the natural gas side, the EIA projected that residential consumption will ease to 12.5 billion cubic feet per day (bcfd) in 2026, while commercial usage is expected to dip to 9.5 bcfd. Industrial consumption, however, is forecast to rise to 23.9 bcfd, and natural gas use for power generation is expected to reach 36.8 bcfd.

These projections sit alongside historically significant reference points. Residential natural gas consumption peaked at 14.3 bcfd in 1996, while commercial customers reached their all-time high of 9.9 bcfd in 2025. Industrial natural gas use hit its record of 23.8 bcfd in 1973, and power generation consumption matched its 2024 peak of 36.8 bcfd.

AI Data Centers and Electrification Driving the Outlook

The convergence of AI data center expansion and widespread electrification continues to define the trajectory of U.S. power demand through the remainder of the decade. The EIA’s forecast reflects a market in which commercial electricity sales are on pace to exceed residential demand for the first time in 2026, a threshold that underscores the growing weight of technology-driven consumption in the national energy profile.

The SHARE Virtual Power Plant initiative brings together an expansive coalition of industry partners including Rewiring America, Google, Carrier Global Corporation, Tesla, Sunrun, Renew Home, Demand Side Analytics, encoord, and others to deploy a coordinated network of home batteries, smart devices, and battery-enabled heat pumps. This network is built to reduce energy use during periods of high demand, create additional grid capacity, and help put downward pressure on energy rates — while participating households benefit through smarter energy management and next-generation home technology.

A New Approach to Meeting Rising Electric Demand

Electric demand is rising across the country as more businesses, vehicles, homes, and buildings rely on electricity. PG&E continues to build and modernize the electric system to meet long-term growth needs, including critical transmission and distribution investments.

SHARE adds a complementary, near-term pathway: investing directly in homes located where energy demand is growing. This proof-of-concept program is designed to demonstrate how targeted investments in residential properties can improve reliability and lower costs by making better use of flexible home energy resources alongside continued grid investment, expand capacity during periods of high demand, and support new and growing energy users more quickly.

“This is about delivering power at the speed our economy demands — while improving affordability and reliability for the people we serve,” said Chelle Izzi, Chief Commercial Officer at PG&E. “SHARE shows how investing in customers can unlock grid capacity, support growth, and bring real benefits back to communities.”

Enrolling Existing Devices and Deploying New Technologies

PG&E is working with Tesla, Sunrun, and Renew Home to enroll nearly 21,000 existing flexible energy devices into the SHARE program. Participating households will gain new ways to manage their energy costs and earn rewards for smart features they already use, while demand is shifted during peak periods to make better use of existing infrastructure — benefiting customers across the broader region. The resource is expected to begin supporting the grid as early as fall 2026.

“Home energy devices hold enormous, untapped capacity that can meaningfully improve affordability and reliability for all Californians,” said Mary Powell, Chief Executive Officer of Sunrun. “This initiative unlocks that potential while giving customers an opportunity to share in the economic benefits of helping improve their local grid.”

Carrier as Launch Partner for New Deployments

Carrier is the initiative’s launch partner for new technology deployments, providing its battery-enabled heat pump solution — including the Carrier Performance™ Series Variable-Speed Heat Pump with EnerSync™ — which automatically stores and shifts energy use to help lower costs for customers, maintain comfort, and support grid reliability during periods of peak demand.

“As energy demand grows, SHARE demonstrates how Carrier can help deliver distributed capacity with the firmness to scale as a fast and reliable grid resource,” said Hakan Yilmaz, President of Carrier Energy and Chief Sustainability Officer. “Carrier’s battery-enabled HVAC technology brings together our trusted comfort, market presence and dealer scale to help deliver homeowner value and reliable grid flexibility.”

Eligible customers in Santa Clara and Alameda counties will have the opportunity to receive new Carrier high-efficiency, battery-enabled heat pumps, lower monthly energy bills through smarter energy management, and greater comfort alongside improved home resilience.

Google Fully Funds the Program

SHARE is structured so that existing customers benefit from growing grid capacity needs and will be fully funded by Google to support customer incentives, technology deployment, and program delivery.

“As demand scales, our current electricity grid can bridge the gap — if we optimize it correctly,” said Amanda Peterson Corio, Global Head of Energy and Power at Google. “This program unlocks the potential of local distributed energy resources to strengthen grid capacity and resiliency while delivering meaningful benefits for local communities.”

Impact of Economic Pressures on Renewable Energy

This record-breaking demand for electricity in the United States is being propelled by the expansion of data centers and the ongoing electrification of various sectors, including transportation. Such growth has intensified the requirement for new generating capacity while concurrently driving up capital costs. According to Lazard’s findings, the levelized cost—representing the average expense of producing a unit of electricity over a power plant’s operational lifespan—for utility-scale solar has climbed to a range of $40-$98 per megawatt hour, up from the previous year’s range of $38-$92 per MWh. The firm noted that data centers are a primary driver of this capacity need, which in turn impacts the overall capital costs of development.

Factors Driving the Increase in Development Expenses

Samuel Scroggins, who serves as the head of renewables and sustainable infrastructure at the firm, noted that the levelized Solar Power Costs, along with storage costs, have risen due to several influential factors. These include elevated interest rates and inflationary pressures stemming from tariff pass-throughs. Additionally, the repricing of supply chains as they transition away from China toward other regions, such as Southeast Asia, has contributed to the upward trend. Even with these shifts, renewable energy options like onshore wind remain a primary choice for new capacity. Onshore wind costs also saw an increase, moving to a range of $37-$99 per MWh from the prior $37-$86 per MWh.

The report emphasizes that even when factoring in the expenses required to back up intermittent renewable energy to maintain grid reliability, solar and wind projects remain broadly competitive against new gas-fired options. This highlights the significant role that renewable energy is expected to play in addressing the nation’s rising power needs while maintaining grid reliability. Meanwhile, the levelized cost for electricity generation over a plant’s operational lifespan for combined-cycle natural gas plants rose to between $51 and $129 per MWh. These natural gas plants remain a functional choice for utilities and developers due to their consistent power output, even as the industry navigates a complex landscape of Solar Power Costs.

Changes in the National Generation Mix

As electricity demand accelerates, the composition of the nation’s energy sources is anticipated to shift. The EIA indicates that natural gas will likely decrease its share of the generation mix from 40% in 2025 to 39% across 2026 and 2027. During the same period, coal’s contribution is expected to slide from 17% to 15%. Conversely, renewable output is poised for a significant climb, rising from approximately 24% in 2025 to 25% in 2026, and eventually reaching 28% by 2027. Nuclear energy is projected to fluctuate slightly, moving from 18% in 2025 to 19% in 2026 before returning to 18% in 2027. In the natural gas sector, although residential, commercial, and industrial sales are expected to decline slightly from previous highs, the volume used specifically for power generation is projected to rise to 35.8 billion cubic feet per day (bcfd) in 2026.

Infrastructure Demands and AI Integration

The rapid escalation of computing power requirements is fundamentally reshaping the grid’s physical footprint. Between 2020 and 2025, the power density of AI servers increased elevenfold, with further growth anticipated by 2027. Modern server racks can now consume as much energy as dozens of residential homes, placing intense pressure on local grids and occasionally requiring utilities to maintain fossil fuel plants longer than originally intended. To manage these loads, operators are increasingly investing in grid batteries and on-site storage solutions. The financial scale of this transition is vast; capital spending by major technology firms exceeded $400 billion in 2025 and is projected to increase in 2026, a rate of investment that currently outpaces global spending on oil and gas production. Despite ongoing research into efficiency methods, such as a new MIT technique for predicting AI workload energy draw, the industry faces significant challenges in ensuring generation keeps pace with the rising U.S. power consumption and avoids potential shortages in data center clusters by 2027.

The US wind industry also faces stiff competition from other sources of renewable energy. Solar power and battery storage are currently outpacing wind in terms of new annual capacity additions. Experts note that solar technology is generally cheaper and faster to install, which is a vital advantage as demand grows from energy-intensive data centers. Additionally, the geographic locations suitable for a large-scale wind farm are becoming increasingly limited. Many prime onshore areas, such as the Texas panhandle, have already been heavily developed, leaving fewer sites where installing massive turbines remains economically viable.

Political and regulatory hurdles have further complicated the landscape for any new wind farm project. The current administration has implemented several measures to restrict development, including an executive order aimed at halting approvals on federal lands and waters. While some of these decrees have been challenged in court, other obstacles remain, such as alleged delays in security reviews by the Pentagon. David Carroll, chief executive officer of Engie North America and chair of the American Clean Power Association, stated that the difficulty in securing permitting approvals has left the sector in a precarious state. “You’ve got capital investments that are just frozen,” Carroll remarked, noting that many boards are now questioning the feasibility of future domestic projects. While existing stalled projects may move forward, the high risk profile is currently deterring significant new investment in turbines and infrastructure. Consequently, the lack of timely permitting approvals and the struggle to integrate with power grids continue to hinder the expansion of renewable energy across the country.

The move comes as data centers continue to drive electricity consumption to unprecedented levels, creating challenges for power systems in multiple regions. According to FERC, the objective is to establish clearer procedures for connecting major energy users and ensuring that the infrastructure required to serve them is funded appropriately. The regulator said the review is intended to support faster deployment of facilities tied to artificial intelligence development while reducing risks to grid stability. FERC Chairman Laura Swett described the issue as a national priority, stating, “This is the biggest priority our country is facing at the moment.” Referring to efforts to expand AI-related infrastructure, she added, “This is a race against time, and we are going to win.”

Under the orders, grid operators and transmission owners have 60 days to explain why their current approaches remain appropriate or outline potential revisions across five key areas. These include creating transparent procedures for connecting large electricity users and determining how infrastructure expenses should be allocated. The review of Data Center Power Rules also encourages grid operators to consider frameworks that allow large customers to develop dedicated power sources, including their own generation facilities, and to deploy advanced technologies that improve the efficiency of existing networks.

Industry stakeholders broadly welcomed the initiative. Robert Montejo, a partner at Duane Morris representing data center developers and power companies, said, “The grid and ⁠prior policy were not built for the pace and scale of demand we’re seeing from AI infrastructure, and FERC is signaling that standing still is no longer an option.” Environmental groups also responded positively. The Sierra Club stated, “We are energized that there is a clear path forward to adopt responsible large load interconnection policies that safeguard reliability, improve transparency, and embed affordability and ratepayer protections for American households.” Alongside the review of Data Center Power Rules, FERC said it would no longer automatically assess cumulative environmental impacts in rulemaking conducted under the National Environmental Policy Act. Swett said, “We are no longer going to waste valuable staff and applicant time and money doing an analysis that is not necessary under the law.”

The dispute centered on a presidential memorandum issued on January 20, 2025, titled “Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind Leasing and Review of the Federal Government’s Leasing and Permitting Practices for Wind Projects.” Section 2 of the memorandum, widely referred to as the offshore wind ban, directed federal agencies to halt all processing and issuance of permits, approvals, and other authorizations for offshore wind projects. This freeze applied even to areas already under active leases and was tied to an indefinite comprehensive review of offshore wind activities. It also instructed the Department of Interior to assess offshore wind leasing and permitting practices, including environmental review processes under the National Environmental Policy Act.

A coalition of 17 states and the District of Columbia, led by New York, filed a legal challenge on May 5, 2025, in NY et al. v. Trump. The plaintiffs argued that the halt to permitting and leasing harmed the economic and environmental interests of the states and DC, overstepped executive authority in managing federal waters for clean energy development, and violated established legal procedures.

Ten days after the lawsuit was filed, the National Wildlife Federation and nine other environmental non-profits submitted an amicus brief in support of the plaintiffs. The brief stated that “the Agencies simultaneously are seeking to gut the federal wildlife protection that permitting processes are intended to safeguard, and to fast-track non-wind projects that kill and harm species.”

Amber Hewett, senior director of offshore wind energy at the National Wildlife Federation, emphasized that the court’s decision affirmed what advocates had long maintained. “Arbitrary halts to responsible offshore wind development interfere with efforts to protect wildlife, reduce carbon emissions, and address the rising demand for affordable and reliable energy,” Hewett said. “Offshore wind leasing and development is subject to rigorous review and public comment processes to ensure wildlife and communities are protected. The Court’s decision upholds what we have known: that this ban was a baseless overstep of authority impeding responsible offshore wind development, a critical solution to safeguard wildlife and people from the effects of climate change.”

On December 8, 2025, Judge Patti B. Saris issued her decision in the case, ruling that the implementation of the offshore wind ban under Section 2 was unlawful and vacated it in its entirety. The federal government filed notice of appeal on February 17, 2026. However, upon consideration of the appellants’ agreement, the First Circuit Court entered a judgment ordering that the government’s appeal be voluntarily dismissed. The judgment is now final.

New York Attorney General Letitia James released a statement following the resolution. “New York’s wind projects will create jobs, strengthen our economy, and bring down New Yorkers’ electric bills. My office will continue to fight any attempt to undermine that progress,” James said.

Massachusetts Attorney General Andrea Joy Campbell noted that her state has directed hundreds of millions of dollars into offshore wind development, “and the court correctly protected those critical investments from the Trump administration’s unlawful order.” Campbell added that the administration’s decision to drop the appeal and the court’s formal dismissal “will preserve well-paying clean energy jobs and ensure access to reliable, affordable energy as Massachusetts continues to advance its climate goals.”

The conclusion of this case secures the legal standing of existing offshore wind leasing and permitting activities, removing the federal court challenge that had cast uncertainty over the sector’s future along the Outer Continental Shelf.

The Rabbit’s Foot Solar installation, situated in Bowie County, Texas, commenced on-site construction during the early part of this year. Upon completion, projected for the end of 2027, the project will serve as a critical component in Meta’s broader commitment to align its operational energy requirements with 100% clean energy sources. The facility’s generation capacity will directly contribute to this sustainability milestone for the technology company.

The Meta and RWE Solar partnership has already materialized through several significant projects. Previously executed agreements encompass the 274-MW Emily Solar project in Illinois, the 100-MW Lafitte Solar initiative in Louisiana, and the 200-MW Waterloo Solar facility in Texas. These three projects collectively represent 574 MW of generation capacity. With the addition of Rabbit’s Foot Solar, the cumulative portfolio now spans 872 MW across all signed agreements over the previous two years, demonstrating sustained commitment from both organizations toward renewable energy expansion.

Ingmar Ritzenhofen, chief commercial officer for RWE Americas, provided insight into the partnership’s significance: “Our partnership with Meta continues to grow as we work together to deliver reliable power that supports their energy commitments. This agreement for the Rabbit’s Foot Solar project demonstrates how collaboration can drive meaningful economic growth and community benefits. By investing in Bowie County, we’re not only creating approximately 200 local construction jobs, but also generating substantial long-term tax revenue that will help support schools, technical education programs, emergency services, and critical road maintenance and infrastructure improvements across the community.”

The corporate power purchase agreement structure allows both organizations to achieve complementary objectives. For Meta, the renewable energy infrastructure supports long-term sustainability targets and operational efficiency. For RWE, such agreements enable predictable revenue streams and capacity planning across its generation portfolio.

Amanda Yang, head of Clean and Renewable Energy for Meta, outlined the company’s perspective on the expanded partnership: “Through our continued partnership with RWE, the Rabbit’s Foot Solar project will bring new generation to the Texas grid while creating local jobs and delivering lasting economic benefits to Bowie County. We’re proud to deepen our collaboration with RWE with our expanded portfolio.”

RWE operates as a substantial power generation operator throughout the United States, currently maintaining 13 GW of generation capacity across installations in 27 states. The renewable energy developer has articulated ambitious growth plans, targeting an additional 9 GW of net new capacity additions by 2031. This expansion roadmap positions RWE to meet growing demand from technology companies and other corporate entities pursuing clean energy solutions through corporate power purchase agreements and similar mechanisms.

The Rabbit’s Foot Solar facility represents a continuation of this strategic expansion while simultaneously fulfilling Meta’s clean energy commitments through the ongoing Meta and RWE Solar partnership. The project’s anticipated completion by year-end 2027 aligns with both organizations’ longer-term operational and sustainability objectives.