Solmar Insights
Jim Robb, CEO of the North American Electric Reliability Corp. (NERC), has called for transformative changes in the way the United States approaches electric grid development and capacity planning. With constraints on new infrastructure buildout and rapidly growing demand led by data centers and electrification, Robb emphasized that self-imposed limitations and entrenched mindsets present some of the largest barriers to a resilient national grid.
Key figures
US electricity under 20% of end-use energy consumption
Testimony delivered to US House subcommittee, September 2026
NERC CEO highlights rising strain from data centers and electrification
US grid outpaced by demand
Robb’s testimony highlights that the US electric grid is struggling to meet an unprecedented pace of demand growth, particularly from the expanding footprint of data centers and the effects of federal, state, and local electrification policies. In addition, industrial growth and demographic shifts are further tightening the supply-demand balance, putting additional pressure on the nation’s aging transmission and distribution systems. Robb notes that electricity currently comprises just under 20% of America’s end-use energy consumption, but this share is expected to rise swiftly.
The inability to build electric infrastructure fast enough to meet this demand could limit US economic competitiveness and jeopardize leadership in artificial intelligence and digital infrastructure. Robb contends that the core problem is not merely physical obstacles, such as manufacturing constraints or siting, but also a set of internalized constraints that shape how approval and construction are pursued across jurisdictions. He calls this a “five-alarm fire” stemming both from underinvestment and a disorderly approach to grid transformation.
Legacy mindsets limit progress
US utilities and grid planners have historically prioritized energy efficiency and approved only the so-called “best” projects, due in part to approval regimes built when load growth was modest. As a result, the country has constructed relatively few major power infrastructure projects over the last several decades. These approval processes, while intended to select for optimal outcomes, are now identified by Robb as a bottleneck in today’s environment of fast-rising and unpredictable demand.
Robb argues these legacy mindsets, emphasizing risk aversion and perfection over speed, are holding back vital grid improvements needed to service both new technologies and expanded electrification. Such self-imposed constraints result from policies and practices established over the past 30 years, which may not be fit for today’s infrastructure imperative. Policy focus, Robb contends, must pivot towards rapidly enabling more energy supply and grid connectivity instead of enforcing perfection that delays investment.
Permitting and approvals under scrutiny
One of the primary areas Robb identifies for reform is the permitting and siting process, which currently slows or stops many large-scale grid and generation projects. He advocates for a new paradigm: permitting that enables responsible, but timely, addition of new energy resources to the system. The longstanding practice in the US of exhaustive, risk-averse review must give way to regulatory pathways that balance responsible development with accelerated execution.
Robb specifically urges rejection of the “perfect is the enemy of the good” mindset, especially as grid reliability increasingly underpins not only industrial and residential loads, but also the national security position of the United States in the context of digital and AI-driven growth. Changes in permitting processes, both at federal and state levels, are identified as a lever for unlocking much-needed grid expansion, but these require consensus on shared priorities among regulators, utilities, and developers.
Integration of new loads and energy sources
Robb highlights that electricity is not an energy source itself, but a delivery mechanism that enables flexibility across fuels. As more sectors electrify, including transportation and certain manufacturing processes, the system will require not just additional clean energy resources, but investment in delivery infrastructure and fuel supply underpinning the grid. The anticipated rise in end-use electric consumption will amplify stress on transmission bottlenecks and regional ISOs, necessitating a holistic approach to planning and expansion.
With data centers and artificial intelligence driving concentrated load growth, the importance of integrating load as an active participant in grid operations is also growing. The call is not only for more wires and substations, but for changing how demand, supply, and grid services interact, allowing utilities, grid operators, and regulators to develop strategies that move beyond the traditional binary categories of load and generation.
Market significance for buyers, investors, and developers
For institutional buyers, project developers, and infrastructure investors, Robb’s remarks carry major implications. Accelerated transmission and interconnection processes will influence the viability and speed of new renewable, storage, and load-serving projects. The emphasis on infrastructure as a foundational investment for national competitiveness signals potential shifts in federal and state policy that could alter site feasibility and risk assessment. Investors will need to reassess market entry strategies, particularly in high-growth interconnection queues and data center markets where permitting reform or increased load flexibility may change the timeline and economics of new assets.
What this means for buyers
Transmission, interconnection, and data center power capacity across the US are affected by calls to speed siting and permitting. Robb’s September 2026 testimony underscores that the current mindset is delaying new projects and limiting US competitiveness in digital infrastructure. Buyers will prioritize sites and projects in jurisdictions where permitting reforms or active policy debates signal faster approvals and a more supportive regulatory climate.
Reporting via the original publisher
