ALBANY, N.Y. (NEXASTAR) — New York’s electric grid faces growing reliability concerns as old power plants close faster than new ones open and demand for electricity rises sharply, according to a report from the state’s grid operator. The state has less extra power available to meet unexpected needs, representing a shrinking safety net.

The New York Independent System Operator released its “Power Trends 2025” report on Monday. Available to read at the bottom of this story, it details how the amount of extra power available—called reliability margins—continues to shrink. That’s because power plants that burn fossil fuels are being phased out, and new power sources aren’t keeping up with the expected increase in demand for electricity.

“The grid is undergoing rapid and instrumental change,” said Rich Dewey, NYISO President and CEO. “We continue to observe declining reliability margins while forecasting a dramatic increase in load.” Load refers to the total amount of electricity used by consumers and businesses.

New, large electricity users—like factories making computer chips, generative artificial intelligence projects, and data centers—have spiked the projected demand for power. These new industries coincide with programs encouraging greener electricity sources for heating and transportation. Those narrow reliability margins raise the odds of power shortages going forward.

The report also warned that New York still depends on fossil fuel power generators that are 50 years old or more. NYISO said New York will become a winter-peaking system by the 2040s, meaning that the greatest demands for electricity will be in winter. Because more and more homes and cars will be using electricity for heating and travel, fuel supplies will be most limited on the very coldest days of the year.

The report also highlighted that energy efficiency and demand-side management, which are programs that help reduce electricity use, will continue to play an important role. Repowering older power plants—upgrading them to be more efficient and produce fewer emissions—could also help reliably meet rising demands.

NYISO manages the state’s electric grid, runs its competitive wholesale electricity market, and plans for the power system’s future. That’s why NYISO connects new power plants and transmission lines to connect to the grid in a process called interconnection. Emilie Nelson, NYISO Executive Vice President and Chief Operating Officer, said, “We recently streamlined the interconnection process for new generation and launched new market products intended to bring more power onto the grid at the most efficient cost.”

Take a look at the report below:

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