In a concerted effort to address rising energy costs and accelerate the construction of large power plants, the Trump administration has called for an emergency power auction prioritizing traditional energy sources. During a recent event near the White House, US Interior Secretary Doug Burgum emphasized the need for baseload power generation, specifically naming coal, natural gas, and nuclear as the focal points. Notably absent from this energy strategy was any mention of renewable sources.
Burgum’s statements come amid significant challenges in developing the kind of power plants favored by the administration. The last new coal plant in the United States was constructed over a decade ago, while no large-scale nuclear projects have been launched since the completion of a reactor that faced substantial budget overruns and delays.
Gas plants, although regarded as essential, are also encountering hurdles. According to a BloombergNEF report, the average lead time for bringing a gas plant into operation has extended from 3.5 years to 5 years between 2023 and 2025. Furthermore, costs for building combined-cycle gas plants—the more efficient variant—have surged by around 49% during the same period. Evercore analyst Nicholas Amicucci pointed to the constrained turbine market and ongoing site permitting challenges as significant limits to progress.
The escalating power demands posed by burgeoning data centers, new manufacturing facilities, and overall electrification are exerting pressure on the market for high-demand turbines utilized in natural gas generation. GE Vernova, a prominent turbine manufacturer, has reported being fully booked through 2028, with orders now being accepted for 2029.
Burgum and Energy Secretary Chris Wright, who serve as the chair and vice chair of President Trump’s National Energy Dominance Council, joined forces with governors from 13 states—both Republican and Democratic—to advocate for an emergency wholesale electricity auction scheduled for later this year. This auction would enable tech firms operating large data centers to bid for 15-year contracts, potentially facilitating $15 billion in investments for new power plants, which could yield an additional 7.5 gigawatts of capacity. For context, one gigawatt is approximately equivalent to the output of a traditional nuclear reactor.
Despite the urgent need to bolster the US power grid, there exists a fundamental divide regarding energy sources. While many Democratic leaders are resistant to further fossil fuel infrastructure, numerous Republicans criticize subsidies for solar and wind developments. Rob Gramlich, president of Grid Strategies and a former senior economist at PJM Interconnection, has suggested that clean energy sources, including offshore wind and battery storage, should also be incorporated into the auction framework, arguing that these alternatives provide comparable value to natural gas plants.
During the recent White House event, Glenn Youngkin, Virginia’s outgoing governor, along with Trump administration officials, largely dismissed the viability of renewable energy in meeting immediate energy demands. Youngkin asserted the necessity of gas and nuclear plants for ensuring energy security, emphasizing, “We need it all. We need it now.”
