Jan. 22 at 8:18 PM
A powerful winter storm is set to hit much of the U.S., putting severe stress on the electric grid in what could be its toughest test since Winter Storm Uri in 2021. More than 120 million people are under winter storm alerts, with extreme cold expected across Texas, the South, and parts of the Midwest, raising the risk of power outages.
Grid strain is higher this winter due to rising electricity demand from data centers, which now run year-round and have lifted peak demand by about 2.5% in the past year. At the same time, winter weather limits renewable generation, while natural gas—still the main power source—faces production and transportation disruptions in extreme cold. Gas prices are already surging rapidly.
Power plant owners and utilities face significant financial risk if they cannot deliver contracted power and are forced to buy electricity or gas at elevated spot prices. During the 2021 storm, such dynamics caused billions in losses.
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