Southwest Power Pool Set for Faster Power Expansions

Written by Will Ploch, Assistant Editor-in-Chief for Industrial Info Resources (Sugar Land, Texas)

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Summary

The SPP is warning of a "resource adequacy crisis" in its service area, but it is getting support from a key regulator.

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FERC Backs Request for Speedier Process

The U.S. Federal Energy Regulatory Commission (FERC) is allowing power plant owners in the Southwest Power Pool (SPP) to expand power-generation facilities by up to 20% under a temporary priority review process, in an effort to speed up the process amid a rising demand for electricity. Industrial Info is tracking more than $26 billion worth of active and proposed capacity-expansion projects at power-generation facilities in the SPP region, more than $9 billion of are believed by Industrial Info to have a 70% or higher probability of beginning construction as planned.

Based in Little Rock, Arkansas, SPP is a regional transmission organization (RTO) mandated by FERC to "ensure reliable supplies of power, adequate transmission infrastructure, and competitive wholesale electricity prices on behalf of its members," according to the SPP's website. It includes the entirety of the Texas Panhandle, Oklahoma and Kansas; nearly all of Nebraska, South Dakota and North Dakota; significant portions of New Mexico, Arkansas, Missouri, Iowa and Montana; and small portions of Louisiana, Wyoming and Minnesota.

At roughly $9.4 billion of the total $26 billion in capacity expansions, solar power accounts for more proposed investment than any other energy resource. Emphasis, however, on "proposed," since more than 90% of solar power's portion is attributed to projects that have a less than 70% chance of kicking off as scheduled, according to Industrial Info's Global Market Intelligence (GMI) Power Project Database.

Among the projects deemed very likely to kick off as planned is NextEra Energy Incorporated's (Juno Beach, Florida) Skeleton Creek Energy Facility in Enid, Oklahoma, which is designed to generate 250 megawatts (MW) from photovoltaic (PV) panels. Subscribers to Industrial Info's GMI Power Project and Plant databases can learn more about Skeleton Creek--including components, investment values and necessary equipment--from a detailed project report and plant profile.

The U.S. has now seen more gigawatts (GW) of solar energy installed in 2025 than in the previous year, according to FERC, despite much less receptive leadership in Washington, D.C. For more information, see December 08, 2025, article - U.S. Solar Kicks Off 2026 with Nearly $9 Billion of Development.

By the Numbers

• Up to 20%: How much FERC will allow power-plant owners in the SPP to expand under a temporary priority review process
• $26 billion: Value of all active and proposed capacity-expansion projects across the SPP, according to Industrial Info
• $9.4 billion: Value of active and proposed solar-energy projects across SPP

SPP Warns of Energy 'Crisis'

FERC's approval for expanded capacity follows SPP's assertion in a September filing that it is "on the brink of a resource adequacy crisis."

"For the last several years, forecasted demand in the region has continued to climb significantly, while capacity retirements have accelerated," the SPP said in the filing. "A sudden increase in large loads from data centers and other technologies have further accelerated already increasing demand. At the same time, new generation has not been added fast enough to meet the growing demand."

Data centers are commonly cited as a top reason the sudden surge in energy demand seen across the U.S. in recent years. Industrial Info estimates the SPP region has more than $190 billion worth of active and proposed data center projects, more than half of which is attributed to a massive development in the Texas Panhandle. Subscribers can learn more about data center projects in the SPP from a detailed list of project reports.

Natural gas often is identified as the resource most likely to fuel data centers in the coming years, with some potential for nuclear power in the longer term. The fossil fuel accounts for more than $8 billion of the total $26 billion in SPP capacity expansions; among those most likely to kick off as scheduled is Duos Technologies Group Incorporated's (Jacksonville, Florida) Phase II unit addition at its energy center in Pampa, Texas, the first phase of which is under construction.

Duos, a developer of artificial intelligence (AI) technologies, would double capacity at its energy center to 240 MW with Phase II. Duos Energy Corporation, a subsidiary, builds and operates power plants for the parent company's data centers, including the Pampa Data Center Campus. Duos also is considering Phase III and Phase IV additions to the energy center, which could be completed as early as 2028. Subscribers can learn more from a plant profile and detailed reports on Phase I, Phase II, Phase III and Phase IV.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for active and proposed capacity-expansion projects at power-generation facilities in the SPP region.

Key Takeaways

• The SPP told FERC that newly added power generation has not been added fast enough to meet skyrocketing demand in its region.
• Solar presently accounts for more proposed investment than any other energy resource in the SPP region.
• The SPP region has more than $190 billion worth of active and proposed data center projects driving energy demand.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).