Energy Systems
United States
Electricity Generation & Grid Mix: The U.S. power system in 2025 stood at a crossroads of rapid change and persistent legacy infrastructure. Total electricity generation reached roughly 4.26 trillion kWh in 2025, and demand ticked upward by about 2.6% – a notable surge after years of flat growth 50 . This jump was partly driven by the proliferation of energy-intensive data centers, which have become a new source of load growth 51 . In terms of generation mix, natural gas remained the dominant power source (approximately 40% of generation), although its share had begun to edge down from a peak of 42% in 2024 7 52 . Coal, long in decline, saw a temporary resurgence in 2025: coal-fired output was about 12% higher than the year prior 3 . This countertrend was influenced by a spike in natural gas prices (making coal more competitive economically) and direct federal intervention to keep aging coal plants running for grid reliability 4 27 . In late 2025, for example, the Department of Energy issued emergency orders requiring at least one coal plant (Centralia Unit 2 in Washington) to remain online past its planned retirement, overriding state agreements 27 53 . Such moves were unprecedented in recent decades and signaled a policy tilt to “prop up” coal. However, industry experts expect this coal uptick to be short-lived; the EIA projects coal’s generation share will resume falling as more renewables and gas capacity come online in 2026 54 . Meanwhile, renewable energy continued its swift ascent. Wind and solar combined made up roughly 18–20% of U.S. electricity in 2025, up from ~13% in 2020 7 5 . Solar power in particular is on a fast growth curve: utility-scale solar generation for 2025 hit an all-time high (around 290 billion kWh) and is forecast to jump nearly 50% by 2027 as an enormous pipeline of new projects (70 GW) comes online 55 . Texas led the nation in solar additions, reflecting a broader trend of red-state renewable growth 56 . Wind energy growth was more modest in 2025 (slowed by a lull in new installations in some regions) 57 , but offshore wind projects on the East Coast progressed in construction. Significantly, nuclear power maintained a 17–18% share of generation – and in 2025 the first new U.S. nuclear reactor in decades (at Plant Vogtle in Georgia) operated for its first full year, highlighting nuclear’s continued role in the decarbonization mix. Overall, the grid mix in 2025 was in flux: dispatchable sources (gas, coal, nuclear) still supplied ~75% of electricity, but that share is declining as renewables steadily erode the position of coal and eventually gas 7 .
Grid/Transmission Expansion: To accommodate the renewable surge and enhance reliability, the U.S. urgently needs more high-voltage transmission – a fact acknowledged by regulators, planners, and both 2020s infrastructure laws. Some progress occurred in 2025: major multi-state transmission projects finally broke ground after years of planning. For instance, the SunZia transmission line (delivering New Mexico wind power to Arizona and California) entered construction, and the long-delayed Grain Belt Express HVDC line (linking Kansas wind to the Midwest and East) secured remaining permits. The Department of Energy’s Grid Deployment Ofice also announced $1.5 billion in financing support for four critical transmission projects in late 2024, aimed at easing major regional bottlenecks 58 . However, a dramatic shift in federal policy in 2025 put some of these efforts at risk. The incoming administration took a skeptical view of transmission projects seen as primarily benefiting renewable energy. In mid-2025, DOE rescinded a $4.9 billion loan guarantee for the Grain Belt Express line and canceled a $464 million grant for a Midwest “Grid of the Future” project (the MISO-SPP interconnection upgrades), effectively derailing those projects’ federal support 59 60 . In total, nearly $8 billion in grid modernization funds were clawed back as part of a broader budget cut package in October 2025 61 29 . Oficials justified the cuts by labeling the projects as “green energy schemes” not aligned with the administration’s agenda 29 . Grid operators and many Republicans in the central U.S. actually objected to the cancellations, noting that stronger transmission is vital for reliability and for lowering consumer energy costs (by moving power to where it’s needed in peak times) 62 63 . The upper Midwest “JTIQ” lines, for example, would have paid an estimated 7:1 benefit-cost ratio by preventing blackouts and price spikes during extreme weather 64 65 . Despite the federal pullback, some transmission expansion will continue via utility and regional efforts, but the pace is not yet commensurate with renewable growth. A 2024 DOE study warned the U.S. needs to build ~5,000 miles of new transmission each year this decade to meet clean energy goals 66 – far above current build rates. In 2025, FERC’s regulatory initiatives to spur interregional transmission were also in limbo amid leadership changes. In summary, transmission developments in 2025 were mixed: a few big projects moved ahead and Congress funded grid component manufacturing, yet political opposition to “wires for wind” introduced new uncertainty. Grid resilience investments (like undergrounding lines and deploying advanced grid controls) likewise continued piecemeal, often funded by states or utilities rather than a unified federal push.
Fossil Fuels vs. Renewables: The balance of fossil and renewable energy in the U.S. saw both contention and transition in 2025. On the fossil fuels side, U.S. oil production remained near record highs (hovering around 12 million barrels per day) as high global prices incentivized drilling, especially in the Permian Basin. The administration opened new areas for oil and gas leasing, including a large offshore lease sale in the Gulf of Mexico in late 2025 (marketed as part of an “energy dominance” strategy) 67 68 . At the same time, it paused offshore wind leasing over (stated) national security concerns 69 – a sharp departure from the previous administration’s renewable push. Natural gas, where Pennsylvania and Texas lead production, saw robust output feeding growing LNG export terminals. Domestically, however, gas power’s expansion slowed; a few planned gas power plants were canceled or converted due to uncertain economics and community opposition. Meanwhile, renewable energy deployment hit new records, thanks in part to the still-active tax credits from the 2022 IRA. The U.S. installed tens of gigawatts of solar and wind in 2025 (with solar leading), bringing renewable capacity to roughly 330 GW nationwide. Several states achieved noteworthy milestones: e.g. California hit 35% renewable generation, and Texas at times got over 50% of its power from wind and solar. Utility-scale batteries also scaled up (over 10 GW of storage now online), improving grid flexibility 57 . However, clashes intensified. In 2025, the federal government sought to roll back or challenge state clean energy policies: the DOJ signaled support for lawsuits against state and local clean energy mandates, arguing some city natural gas bans (like Berkeley’s) were unlawful – following a court decision that struck down one such ban 70 71 . There were also moves to weaken federal eficiency and emissions standards: efforts to freeze tighter fuel economy rules for vehicles and to ease EPA’s proposed power plant carbon rules (which were still under review in 2025). Fossil fuel advocates argued these regulations would raise costs and threaten grid reliability, whereas proponents said they’re critical for climate commitments. In the marketplace, renewables largely out-competed new fossil generation on cost. Even with temporary coal boosts, utilities across many states continued to retire coal plants (or set retirement schedules) because coal could not economically compete with cheap gas and renewables. For example, multiple coal units in the Midwest and Southeast closed in 2025, collectively reducing U.S. coal capacity by another ~5%. No new coal plants are planned in the U.S., and by 2025 even capacity markets (PJM, etc.) began adjusting rules to accommodate more intermittent resources and retire uneconomic fossil units. Natural gas, though still the backbone, faces its own crossroads: some regions like New England and the West Coast are constraining new gas infrastructure in favor of storage and renewables, while other regions (e.g. Southeast) are still adding gas plants for now. Across the country, debates over “clean firm” power are ongoing – whether maintaining some gas (potentially with carbon capture) or nuclear is needed to backstop renewables. In 2025 Congress did not enact any new major energy legislation, but the implementation of the IRA and IIJA continued to tilt economics toward cleaner energy.
Electrification Trends: The drive to electrify transportation and buildings continued nationwide, albeit with varying momentum. Electric vehicle (EV) adoption in the U.S. reached a new high in 2025: about 9–10% of new light-duty vehicle sales were EVs (battery-electric or plug-in hybrid) 72 . This represents steady growth (up from ~5% in 2022), but the U.S. still lags regions like Europe (where ~25% of new cars are electric) 73 74 . Notably, EV market share actually plateaued in mid-2025, slipping from 10% to around 9% as federal purchase incentives became less certain and some consumers gravitated to hybrids amid high EV prices 72 . Automakers responded by increasing production of hybrid models and lobbying for flexibility in upcoming EPA tailpipe rules 75 . Policy remained a patchwork: California’s mandate for all new cars to be zero-emission by 2035 still stands (and a dozen states plan to follow it), but in 2025 the federal government reconsidered California’s Clean Air Act waiver authority, creating uncertainty over those state-level EV mandates. On the infrastructure side, EV charging buildout accelerated using funds from the National Electric Vehicle Infrastructure (NEVI) program. By late 2025, every state had NEVI-funded highway fast chargers under construction, aiming to install EV chargers every 50 miles on Interstates. Utilities also invested in grid upgrades to handle EV growth, and some introduced managed charging programs to shift EV load to off-peak hours. Building electrification saw divergent approaches in 2025. Progressive states and cities forged ahead with measures to transition away from natural gas heating and cooking. For example, New York State’s all-electric building code (banning gas hookups in most new constructions starting 2026) was approved 76 , making NY the first state with such a mandate. Dozens of cities (primarily in California, the Northeast, and Pacific Northwest) have also enacted ordinances favoring electric HVAC and appliances in new buildings. Heat pump sales in the U.S. hit record levels in 2025, boosted by IRA rebates and high eficiency gains – in fact, heat pumps outsold gas furnaces nationally for the second year in a row. The federal government’s stance shifted, however, in late 2025: it moved to prevent restrictions on gas use, supporting legislation to bar local natural gas bans (20+ states had already passed preemption laws). Additionally, the DOE’s proposed tighter eficiency standards for residential gas stoves and furnaces were put on hold. Nonetheless, market trends continue toward electrification, especially for heating in warmer climates and for water heating (with heat pump water heaters). Grid impacts: Electrification is gradually boosting power demand – EVs and heat pumps added an estimated 1–2% to U.S. electricity consumption in 2025 – reinforcing the need for generation and grid upgrades. Utilities are experimenting with “vehicle-to-grid” pilots and demand response to ensure electrification doesn’t overstress peak loads. In sum, 2025 showed incremental but important gains in electrification, even as policy signals sent mixed messages.
Consumers are growing more familiar with EVs and electric appliances, but continued incentives and infrastructure will be critical to sustain the electrification trend in the face of policy uncertainty.
Pennsylvania
Electricity Generation & Grid: Pennsylvania’s energy system in 2025 was marked by contrasts: it is both one of the nation’s largest energy producers (thanks to natural gas and nuclear) and a laggard in renewable adoption. The state generates far more electricity than it consumes (exporting power to the PJM regional grid). In terms of generation mix, Pennsylvania relies predominantly on two fuels – natural gas (~58–60%) and nuclear (~30–32%) – which together account for about 90% of in-state electricity production 32 . The remaining slice comes from coal (~5% and falling) and renewables (only ~3–4%) 32 . Coal-fired generation, once a backbone in Pennsylvania, has dwindled dramatically: by 2025 only a handful of coal units remained operational, and coal contributed just a twentieth of the state’s power (for comparison, coal was 20% of PA generation a decade earlier). In 2023, two of the last big coal plants – Cheswick and Keystone – had retired, and Homer City (the largest coal plant) was shut down in 2023 as well 77 . This effectively marks the end of coal power in Pennsylvania, apart from a couple of small waste-coal facilities. Natural gas has filled the gap; Pennsylvania’s embrace of gas combined-cycle plants over the past 10 years means gas now provides the majority of power (as well as fuels out-of-state exports). Despite being a gas-rich state, Pennsylvania experienced the flip side of heavy gas dependence in 2024–2025: spiking natural gas prices led to surging electricity rates for consumers, since generation costs rose 33 . By early 2025, retail electric utilities were warning of rate increases up to 30%. This has renewed calls for diversifying the generation mix. However, renewable capacity in Pennsylvania, while growing, remains modest. The state has roughly ~2,500 MW of wind and ~1,300 MW of solar installed. Solar output doubled from 2022 to 2024 (thanks to a burst of utility-scale projects) 78 , but overall renewables still produce less than 4% of Pennsylvania’s electricity 32 . The Alternative Energy Portfolio Standard (AEPS) – requiring 8% Tier I renewables (solar, wind, etc.) – has not been raised in years, which many see as a policy shortfall. Governor Shapiro in 2025 proposed increasing the AEPS targets as part of his energy plan 39 , but legislation had yet to advance. Meanwhile, corporate and institutional buyers (like tech companies and universities) have driven some renewable projects in Pennsylvania via power purchase agreements. A notable trend is utilizing legacy coal sites for renewables: for example, a 200 MW solar farm is underway on a reclaimed strip mine in northeastern PA, and a pilot wind project on a former industrial site in Cambria County.
On the grid and transmission front, Pennsylvania is integrated into the large PJM Interconnection grid, which in 2025 faced capacity and interconnection challenges. The PJM region has a massive backlog of new generation waiting to connect – mostly renewables – and PJM’s interconnection queue reform (approved in 2022) is gradually processing projects. By 2025, some progress was made: PJM cleared hundreds of older queue applications and signed new interconnection agreements for solar, storage, and even a few small modular reactor (SMR) proposals in the region. Pennsylvania itself saw interest in utility-scale solar in its rural central and eastern counties, but grid congestion and local zoning have constrained development. A major transmission upgrade affecting Pennsylvania is PJM’s Queue Project 2025 cluster, which identified the need for new lines and substation upgrades in PA to accommodate renewables from Ohio/West Virginia. While PJM approved those upgrades, the uncertainty in federal transmission grants (due to 2025 cuts) put some funding in question 60 59 . Within the state, grid resilience is a focus following some high-profile outages: a severe ice storm in February 2022 knocked out power to thousands in the Poconos, and the remnants of Hurricane Ida in 2021 caused extended outages around Philadelphia. Utilities in PA responded by accelerating tree trimming, and in 2025 several launched grid-hardening programs (like replacing wooden poles with steel in critical areas). Additionally, microgrids and distributed energy gained attention: Pittsburgh’s grid-of-microgrids initiative expanded, linking hospitals and universities with on-site generation and backup storage for resilience. Pennsylvania also started leveraging federal grid funds – e.g. a DOE grant to PECO (Philadelphia’s utility) to deploy automated “self-healing” grid technology that isolates faults during storms. In terms of transmission expansion, one notable project in 2025 was the proposal for a new high-voltage line from western PA into Maryland to relieve congestion and enable more wind imports; this project is in planning stages, facing the usual siting hurdles. In summary, Pennsylvania’s grid in 2025 is reliable but constrained, heavily fueled by gas and nuclear. The state’s challenge is to integrate more renewables and storage to diversify its energy supply and stabilize prices, without compromising reliability in its role as a regional power exporter.
Fossil vs. Renewable Developments: Pennsylvania’s energy economy straddles traditional and emerging sources. Natural gas remains king: Pennsylvania is the nation’s #2 gas producer (after Texas), thanks to the prolific Marcellus and Utica Shale. Gas production in PA hit record volumes in 2025, averaging over 21 billion cubic feet per day. New pipeline capacity (like the final segments of the Mariner East and the resumed Mountain Valley Pipeline project through neighboring states) helped carry PA gas to markets. The state did implement stricter methane regulations for oil and gas operations (as required by EPA rules) starting in 2024, aiming to cut down on methane leaks from wells and compressor stations. Nevertheless, environmental groups continued to press for more – in 2025 they urged Governor Shapiro to enact broader fracking reforms, citing University of Pittsburgh studies linking shale gas development to health issues like higher childhood asthma and lymphoma rates near drilling sites 79 . Shapiro’s administration acknowledged the studies and in late 2024 ordered DEP to update rules on well siting and bonding, but by 2025 few of those reforms were finalized 80 81 . In short, fracking in PA continues with minimal new restrictions, frustrating advocates who note that a grand jury in 2020 had made dozens of recommendations to better protect residents (most still unimplemented by 2025) 80 81 . On the renewable energy side, Pennsylvania shows signs of awakening. Utility-scale solar saw a burst of development: more than 2,000 MW of solar capacity have been certified under the AEPS program, doubling generation in just the last couple years 78 . Large solar farms have been built on former farms and reclaimed mines, often spurred by corporate clean energy procurement. For example, in 2025 a 100 MW solar project in Franklin County began supplying power to Penn State University and several state agencies via a long-term contract. Community solar remained an opportunity largely untapped – legislation to allow community solar projects (letting multiple customers share a solar array’s output) has been introduced for several sessions but not passed, due to utility opposition. Wind power in PA is steady but hasn’t grown recently (the best onshore wind resources are in the southwest and along ridges in central PA, where about 1,400 MW are installed). New wind projects face local resistance over viewsheds and a focus on neighboring states with stronger incentives. Pennsylvania’s renewable advocates argue that the state is missing out on jobs and investment – neighboring New Jersey and New York, for example, are far ahead in solar capacity despite PA’s ample land and industrial base. To catch up, Governor Shapiro’s proposed 2025 energy package included increasing the AEPS Tier I requirement (possibly to 15% by 2030) and creating a state tax credit for renewable manufacturing. While not yet law, these ideas indicate a shift in tone.
Electrification & Energy Use: Pennsylvania’s transportation and building sectors are beginning to electrify, though at a slower pace than coastal states. EV adoption in PA roughly mirrors the national average – by 2025, there were over 70,000 electric vehicles registered in Pennsylvania (up from ~23,000 in 2020) 82 . EV sales were around 8–9% of new car sales in the state in 2025, boosted by the availability of more models (pickup trucks and SUVs) and federal tax credits. The state government itself set targets to electrify 25% of its vehicle fleet by 2025, and agencies like PennDOT have begun transitioning maintenance vehicles and installing charging stations at rest stops. Pennsylvania received about $171 million in NEVI formula funds
for EV charging – projects are underway to install DC fast chargers along all the major corridors (I-76, I-80, I-95, etc.), with a focus on rural gaps like I-81 in the northern tier. By late 2025, new charging hubs opened around Harrisburg and Scranton, giving EV drivers more confidence in regional travel. In buildings, heat pump adoption is slowly rising, particularly in electrically heated regions of the state. Some municipal utilities and rural electric co-ops offer rebates for heat pumps, and the IRA’s forthcoming rebate (up to $8,000 for low-income households) generated interest – contractors in PA reported growing demand for heat pump installations in 2025. However, in Philadelphia and other cities with widespread gas heating, building electrification remains controversial due to the potential impact on the municipally owned gas utility (Philadelphia Gas Works). Philadelphia has not attempted a natural gas ban for new buildings 70 , unlike some peer cities, out of concern for affordability and PGW’s revenue. Instead, Philly’s climate strategy (updated in 2025) focuses on improving energy eficiency in buildings (through retrofits, cool roofs, etc.) and gradually greening its district heating systems. The city is piloting the use of geothermal heating/cooling loops in a couple of neighborhoods and exploring the feasibility of blending renewable natural gas or hydrogen to lower emissions from the gas system. Statewide, the Department of Environmental Protection’s new PFAS drinking water regulations (setting stringent 14 ppt and 18 ppt limits for two PFAS chemicals) came into effect in 2023 83 , and by 2025 water utilities had to install treatments or blend sources to meet these standards. This represents an electrification of a different sort – water companies are adding advanced filtration (which often requires significant electricity) to remove PFAS and other contaminants, indirectly increasing energy use for water services. On a broader level, Pennsylvania’s overall energy consumption in 2025 remained dominated by fossil fuels (for transportation, heating, industry), but eficiency gains continued. The state’s Act 129 utility eficiency programs have cumulatively saved billions of kWh, and new buildings are gradually being built to stricter energy codes (the 2018 ICC code was adopted statewide in 2022). If Pennsylvania recommits to climate goals, electrification of transport and buildings will need to accelerate; for now, 2025 saw incremental progress without major mandates, reflecting Pennsylvania’s centrist approach to energy transition.
