Barclays Warns U.S. Power Grid Expansion Lags Demand

Barclays reported Friday that the United States may be unable to expand its power infrastructure fast enough to meet rising electricity demand. The investment bank identified slow transmission development and lengthy permitting processes as the primary bottlenecks hindering growth.

Data in the report shows that annual transmission capacity growth slowed to 0.6% between 2017 and 2024. This falls significantly short of the minimum 3% annual growth estimated by the Congressional Budget Office. Barclays noted that large-scale projects costing over $200 million can require as many as 64 permits across 15 different federal agencies.

While the 2023 Fiscal Responsibility Act and executive orders from President Donald Trump sought to accelerate infrastructure, the bank found that 61% of environmental impact studies have missed their statutory deadlines. Barclays stated it is too early to determine the effect of the current administration's orders and concluded that durable legislative reform across all levels of government is necessary to overcome these obstacles.