Soaring energy demands and frequent heatwaves have placed the U.S. on the brink of a severe threat with the potential to impact millions of lives: widespread grid failure across multiple states. While the North American Electric Reliability Corporation (NERC), tasked with overseeing grid reliability under the Federal Energy Regulatory Commission (FERC), has issued warnings about the heightened risk of grid failures, the federal government has not found a solution. Projections from NERC paint a dire picture: between 2024 and 2028, an alarming 300 million people across the United States could face power outages.
This underscores the pressing need for robust emergency response and public health planning. Grid failures risk our lives, the economy, and national security as the U.S. moves toward a more sustainable, stable, and reliable electric grid system. The U.S. is at a critical moment where energy resilience, disaster preparedness, and economic security intersect. Strategic policy advocacy and public-private collaboration will be key to ensuring stronger, more reliable power infrastructure for future disaster relief efforts. Bi-partisan public affairs firms like A10 Associates are uniquely positioned to help companies and policymakers align on energy resilience, electrification, and economic growth.
Reviewing the Issues with Grid Stability
Grids are facing unprecedented strain due to record-high temperatures, which reduce their energy transmission efficiency and spike demand for air conditioning during the summer. On top of this, new industries are pushing grids to their limits. The Washington Post and insights from the utility industry cite the exponential growth of artificial intelligence and data centers for cloud computing and crypto mining as drivers of a nearly twofold increase in electricity consumption over the past decade.
The impact of power loss is especially profound for vulnerable populations, including those reliant on electricity-dependent medical equipment and life-saving medications that require refrigeration. Extreme heat significantly increases public health risks by exacerbating mental health, behavioral disorders, and chronic illnesses such as heart and respiratory conditions, and increasing the likelihood of preterm births and developmental issues in infants and children. Excessive temperatures also impose burdens on older adults.
When the lights go out, restoring power across America is a complex, intricate process requiring seamless collaboration among various agencies, levels of government, and power providers amid constraints extending beyond just the loss of electricity. In a blackout, access to critical services like telecommunications, transportation, and medical assistance is also compromised, which only intensifies and compounds the urgency for coordinated response efforts.
Since 2015, national power outages have surged by over 150% owing to demand and extreme weather amplified by climate change. Increasing temperatures can cause transformers to overheat and explode, sometimes sparking fires and cascading outages. Other types of severe weather events, such as lightning strikes, high winds, and flying debris, further escalate the risk of utility infrastructure damage.
Why Grid Resilience and Stability Matters for All Americans
In 2020, 22 extreme weather events – from cyclones to hurricanes, heat, and drought – cost the U.S. a combined $95 billion.
In 2021, disasters like the Texas winter storm and the Pacific Northwest heatwave vividly illustrated the severe consequences of extreme weather on grid stability. The Pacific Northwest heatwave resulted in thousands of heat-related emergency department visits and over 700 deaths. During the Texas winter storm, 4.5 million customers went without power, leading to over 240 deaths and economic damages estimated at $130 billion.
A 2023 study reported that “If a multi-day blackout in Phoenix coincided with a heat wave, nearly half the population would require emergency department care for heat stroke or other heat-related illnesses.” Under such conditions, the researchers estimate that 12,800 people in Phoenix would die.
In 2024, grid shut down as a result of natural disasters killed over 200 people in North Carolina and Florida alone, on top of the number that died during the actual storms.
While the Inflation Reduction Act (IRA) was focused on renewable energy technologies and zero emissions requirements, many critics believe that a more balanced approach is necessary to stabilize the grid while transitioning more slowly to alternative energy. The best way to hedge risk is through asset diversification, a strategy the U.S. should deploy in order to ensure energy independence while creating reliable back-up systems for all regions. Renewable energy, battery storage, and microgrids are all all essential for keeping critical infrastructure operational during emergencies. For example, Texas is strengthening its grid by investing in renewable energy sources, leading planned wind and solar projects in the U.S. The state has transformed its energy infrastructure and is advocating for the integration of artificial intelligence technologies to improve resilience and reliability. Policymakers are focusing on funding a comprehensive study of technical, environmental, economic, social, geographic, and regulatory issues. Ultimately, Texas is adding 1,600 megawatts of generation capacity through multiple different means to the Southeast Texas power grid by 2028.
In the Midst of An Energy Emergency
On his first day in office, President Trump declared an energy emergency, instructing agencies to determine how they can use the Defense Production Act to increase energy production nationwide. Promising to reduce energy prices by 50%, the President’s plan is to increase supply in order to drive down prices. An increase in permitting for fossil fuels will transition jobs, investment, and technology development efforts back to this industry. The U.S. will continue to focus on Natural Gas, which has replaced coal widely, reducing greenhouse gases were used by 16%. An increase in energy production means more jobs in this sector, as well as the logistics and supply chain industries that support it.
As tariffs continue to loom, as a mechanism to drive foreign policy, multiple foreign businesses are looking at reshoring key energy manufacturing (batteries, transformers, solar panels, grid components)which will strengthen supply chains and reduce dependency on foreign production. Throughout the Biden Administration, the CHIPS Act has already invested $10B to bring semiconductor manufacturing home to the USA, this has accelerated demand for energy, while creating new technology for the industry. Both the previous Trump Administration and the Biden Administration required public private partnerships through corporate matches from 10% to 50% for government investment in infrastructure, continuance of these policies will drive stakeholder engagement and strengthen the financial viability of such ventures.
Ultimately, every time the U.S. experiences a black out – whether it be from a natural disaster, general grid failure, or power deficits, our nation loses time, money, and lives. This is no risk that a first world country should experience. By deploying American energy capabilities, renewable to fossil fuels, leveraging our ingenuity, and mining our critical minerals, the United States has a unique opportunity in time to strengthen our grid while creating more jobs and improving our economy. As the U.S. seeks to balance our trade deficits, repay our national debt, and bring middle class families back to financial stability, a mix of energy use will be the key to drive stability at home and abroad.
