Wholesale Power Prices Seen Rising 46% by 2035
Utilities and power-dependent businesses should plan for higher electricity costs as permitting reform moves forward.
Updated on Nov. 4, 2026 in Utilities
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Wood Mackenzie reports that permitting reform is likely the path forward after Democrats captured the House and Senate in the midterm elections. The firm projects wholesale power prices will rise 46% from 2026 to 2035, a development that matters for utilities and any business whose costs depend on electricity.
Why it matters
Rising energy costs driven by conflict in the Middle East have made power affordability a central bipartisan concern, while data center buildouts and electrification push U.S. electricity demand upward. Faster permitting for solar, battery storage, and high-voltage transmission is the lever policymakers are reaching for to close the gap.
Wood Mackenzie projects U.S. wholesale power prices will climb 46% from 2026 to 2035, while electricity demand rises 3% over the same span. Annual transmission congestion costs already exceed $10 billion, and transformer shortages run at 18% for power transformers and 14% for substation transformers.
The players
Wood Mackenzie
A global energy research and consulting firm whose market forecasts are widely used by utilities, developers, and investors in power and energy markets.
Democratic Party
The political party that captured the U.S. House of Representatives and Senate in the midterm elections, shifting the agenda on permitting reform.
The details
The Bipartisan American Affordability and Jobs Act (BAAJA) is the primary vehicle proposed to accelerate utility-scale solar, battery energy storage systems, and high-voltage transmission lines. It requires completing National Environmental Policy Act reviews within a two-year deadline and restricts post-approval legal challenges to a 150-day window after an environmental record of decision. High-voltage line completions in the 2020s are running at less than half the pace of the prior decade, which is why these timelines matter for utilities planning capacity.
Timeline
August: an executive order restricting bulk-power equipment from 24 nations, including China, was issued.
December: final guidelines for that executive order are expected.
2026 to 2035: the projected window for the 3% demand rise and 46% wholesale price increase.
Market Landscape
The Energy Independence and Security Act of 2007 passed during divided government, a precedent that suggests energy legislation can advance across party lines. Today's permitting reform effort is being framed around affordability and power growth rather than only energy security.
Operators whose costs depend on electricity should model wholesale power prices rising 46% over 2026 to 2035 in their planning. Utilities and large power buyers should watch permitting timelines and transformer lead times, since equipment deficits could slow grid buildout.
The takeaway
Electricity cost forecasts should be built into multi-year budgets now, not treated as a short-term swing. Track the December final guidelines on bulk-power equipment and any permitting reform legislation, and review energy contracts for exposure to wholesale price movement.
What happens next
The final guidelines for the August executive order restricting bulk-power equipment from 24 nations are expected in December.
Further reading
For broader context on how these pressures reach power providers, see the Utilities section.
Source note: This article includes information reported by pv magazine USA.
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