Energy Grid Power Reliability? New Report Says It’s Stronger Than Ever
Concerns about the stability of America’s power grid are nothing new. But a new report from the Analysis Group delivers a clear and data-driven answer: the evolving mix of energy sources is not endangering the U.S. grid. In fact, the grid is adapting and becoming more reliable.
The report was commissioned by Advanced Energy Economy (AEE) and the American Wind Energy Association (AWEA) in direct response to a 60-day study ordered by then-Energy Secretary Rick Perry in 2017. Perry had raised alarms about whether government support for renewable energy was forcing coal and nuclear plants into early retirement—and in turn, threatening reliability.
But according to the Analysis Group’s independent findings, the market—not policy—is the real driver of change.
Market Forces, Not Renewable Policies
What’s causing coal and nuclear plants to close? The report points to three factors:
- Cheap natural gas
- Flat electricity demand
- New, efficient gas-fired power plants
These forces are reshaping the grid in ways that benefit both consumers and the environment. Notably, the report found no evidence that state or federal renewable energy policies are undermining reliability. While clean energy growth adds pressure to older, uneconomical power plants, these effects are secondary compared to broader market trends.
“The evidence does not support this view,” said Susan Tierney, senior advisor to the Analysis Group and one of the report’s authors.
“The shift we’re seeing is largely economic. Markets are working.”
Out with the Old, In with the Reliable
The report also makes a strong case that retiring outdated power plants is a sign of progress—not a problem.
As older, less efficient coal and nuclear units phase out, they’re replaced with newer, more responsive technologies. These include natural gas, solar, wind, and battery storage, all of which contribute to a more flexible and diverse grid.
“The term ‘baseload’ is becoming outdated,” the report argues.
In today’s grid, flexibility and responsiveness matter more than just constant output.
And that’s where modern energy shines.
Grid Is Getting Stronger, Not Weaker
Despite ongoing fears, the report concludes that the U.S. grid is more reliable and resilient than ever before. Renewable energy, combined with advanced grid technologies and fast-ramping gas plants, offers a strong mix of reliability services. These include:
- Voltage support
- Frequency regulation
- Reserve power
According to Graham Richard, CEO of AEE:
“We have a more diverse fuel mix, a more reliable grid, and lower electricity costs. Innovation and smart policy are working.”
Industry Backs Up the Data
The Analysis Group’s conclusions echo findings from grid operators like PJM and ERCOT. These operators have shown they can manage high levels of renewable energy—even during extreme weather. Other groups, including SEIA and ACORE, submitted their own data to the Department of Energy. Together, they make one key point:
A more diverse grid is a stronger grid.
Tom Kiernan, CEO of AWEA, agreed:
“Wind and other advanced energy resources are improving reliability while cutting costs. Past dependence on just a few fuels is giving way to a more robust and flexible grid.”
Background: Why the DOE Launched the Study
On April 14, 2017, Secretary Rick Perry ordered the DOE to study “critical issues” affecting long-term grid reliability. His memo questioned whether subsidies for renewables were distorting markets and putting traditional power plants at risk.
In response, AEE, AWEA, SEIA, and ACORE called for an open and transparent process. They urged the DOE to allow public comment and peer review before finalizing any report. However, the DOE declined that request.
Still, those industry groups submitted research and policy briefs to inform the DOE study. These included:
- AEE: Showing the grid is adapting to change effectively
- AWEA: Demonstrating that wind energy strengthens reliability
- SEIA: Highlighting solar’s role in grid stability and security
- ACORE: Emphasizing renewables’ economic and grid benefits
Together, they argued that market forces and smart grid management—not renewable energy policies—are driving the evolution of the power grid.
Final Word on Energy Grid Power Reliability
The Analysis Group’s report offers a timely reminder: Grid reliability isn’t collapsing—it’s evolving. As energy markets modernize and diversify, grid operators are rising to meet new challenges with better tools, smarter technologies, and a broader mix of resources.
Renewables aren’t the problem. They’re a big part of the solution.
Sources: Advanced Energy Economy at American Wind Energy Association, June 20, 2017, Analysis Group Report, June 2017
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