US Gas Power Revival Runs Into Turbine Shortages as Clean Energy Holds Cost Edge

A new Environmental Defense Fund report, published through Utility Dive, documents a sharp reversal in US power planning: cancellations of proposed gas generation projects fell markedly in 2024 and remained low into mid-2026, while rejection rates in the renewable energy segment trended upward over the same period.

Data center demand is a key driver, with growth pressure pushing utilities toward gas-fired capacity that could return the fuel’s market share to levels last seen in the early 2010s — provided announced projects reach completion. Federal policy shifts, including fossil fuel subsidies, relaxed greenhouse-gas oversight, and decisions to extend coal plant operations, have further encouraged utilities to rebalance their portfolios toward fuel-based assets.

Gas expansion faces structural headwinds, however. Turbine shortages, steep price increases, and years-long global supply chain delays are complicating construction timelines. EDF senior attorney David Villagrana noted that these cost and supply pressures are already pushing some developers back toward clean energy, which can reach the market faster and at lower cost.

Even approved projects are not guaranteed to advance: equipment scarcity and fuel-price volatility could ultimately constrain capacity from coming online, Villagrana cautioned. Sustained exposure to natural gas market prices poses ongoing financial risks for consumers, a dynamic that preserves the economic case for solar and wind, where fuel costs are zero.

Source: Utility Dive