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The Energy Industry Update – Volume 25, Issue 1

Energy Industry Update

As we pass into the second half of 2025, the energy industry is navigating mounting complexity as federal policy changes drastically; utilities attempt to manage the effects of surging large loads without shifting costs to other customers; AI grows as both a consumer and enabler of energy; and a growing volume of capital projects begins to strain supply chains and labor pools.

This Energy Industry Update, themed “Complicated,” examines three defining themes, among others: the rising energy demands of and energy industry potential for AI, the rapid expansion of large electrical loads and the rate implications for utilities and customers, and the critical role of flexible resources (including storage) in ensuring grid reliability amid growing renewable deployment and electrification. As decision-makers confront these challenges, actionable insights are essential.

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