Gas Turbine Shortage

[Sparty]

USA: Natural Gas & Coal Power Plant Boom Faces Turbine Shortages and Rising Costs

President Trump's Executive Order, Reinvigorating America's Beautiful Clean Coal Industry"
Designation of Steelmaking Coal as a Critical Material and Mineral

In coordination with the Department of the Interior, DOE is recommending the designation of coal used in steelmaking as both a critical material and a critical mineral in the upcoming 2025 Critical Materials Assessment. This strategic designation will help ensure the U.S. maintains a stable supply of steelmaking coal in the decades to come and underscores the vital role of steelmaking coal in bolstering national security and economic stability.

Supply-Demand Mismatch: There's a severe shortage of gas turbines needed for power plants, with wait times extending to 3-4 years (double what they were a year ago).

Soaring Costs: The cost of building gas-fired power plants has increased dramatically, now costing 2-3 times more than a few years ago, with turbine prices alone up 50% in just 10 months.

AI Impact on Energy: The boom in AI and data centers is reshaping the electric power industry, creating unprecedented demand for electricity.

Political vs. Practical Reality: There's a significant gap between the Trump administration's ambitious plans for coal & natural gas expansion and the practical limitations of equipment availability and economics.

Renewable Energy Competition: In some markets, renewable energy with battery storage is becoming price-competitive with natural gas power plants.

Tech companies initially committed to reducing emissions but are turning to gas as their power needs grow rapidly.

The current supply chain issues for power equipment resemble pandemic-era constraints.
Energy Secretary Chris Wright suggested possibly invoking the Defense Production Act to boost production of critical power equipment.

Wright projects natural gas will soon meet about half of US electricity needs (up from 43%).
Most energy experts and consulting firms disagree with Wright's optimism, expecting gas's share to remain relatively steady while renewables grow faster.

Texas lawmakers are attempting to legislate minimum requirements for non-renewable energy sources.
93% of electricity capacity added to US grids this year will be renewable energy and battery storage; only 7% will be gas.
Utility planners have historically overestimated electricity demand by 23% in their 10-year forecasts.