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Released September 15, 2025 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Power developers have proposed a bevy of new-build, gas-fired electric generation projects in the U.S. over the last 12 months, responding to the call of utility leaders, grid managers, commercial and industrial end-users and elected officials for the construction of new dispatchable generation capacity, according to data tracked by Industrial Info.
Over the last year, the long-term prospects for gas generation in the U.S. definitely have improved. Between 2026 and 2030, developers have scheduled construction to begin on about 107 gigawatts (GW) of new-build, gas-fired generation capacity. That's about 40 GW, or 62%, more than had been scheduled to begin construction over the 2025-2029 period, according to data in Industrial Info's Global Market Intelligence (GMI) platform.
But while the long-term outlook for gas power has improved, the near-term outlook remains cloudy due to the shortage of gas turbines, cautioned Britt Burt, Industrial Info's senior vice president of research for the global power industry. "There's a three-year backlog in getting a gas turbine, so that's going to sharply limit construction of new gas-fired generation in the near term, say over the next year or two," he said.
He added that a number of proposed projects scheduled to kick off construction in the next year or two might be delayed, unless developers can find ways to get their hands on a turbine.
"Some developers may have turbines sitting in warehouses because their projects have been delayed or cancelled due to an inability to obtain permits, financing or off-takers for the electricity," he said. "In that case, I don't expect those developers will have any trouble getting rid of unneeded turbines."
And he said there were various "escape clauses" in contracts between developers and turbine manufacturers if a developer abandoned a proposed project and had no other need for a turbine for which it had paid a reservation fee. In that case, turbine manufacturers should have no trouble reselling that equipment to another customer, given the high level of demand.
In the near term, it is unclear how the supply-demand imbalance for gas turbines will be eased. The gas turbine manufacturing industry is a global industry that is dominated by a small group of large firms, including GE Vernova Incorporated (Boston, Massachusetts), Siemens AG (Munich, Germany) and Mitsubishi Corporation (Tokyo, Japan), None of them have announced plans to expand their overseas turbine manufacturing capacity. GE currently is expanding its Greenville, South Carolina, gas turbine manufacturing plant, a $160 million project, but that expansion is not expected to be complete until yearend 2026. For more on that, see January 30, 2025, article - GE Vernova Powers Up Investments in Gas, Renewable Equipment.
Until the market finds a way to bridge the supply-demand gap for turbines, Britt said developers' plans to begin construction of gas-fired generation in the next year or two may have a higher probability of being delayed or cancelled.
In the U.S., Industrial Info is tracking 152 new-build gas-fired generation or cogeneration projects that are scheduled to begin construction over the next 12 months. The total investment value (TIV) of these planned capital projects is about $42 billion.
The states with the greatest dollar value of proposed gas-fired power plants scheduled to begin construction by September 2026 are Texas, Mississippi, North Dakota and Indiana, according to Industrial Info's data.
Click on the image at right to see a list of the 10 states and unincorporated territories with the largest dollar value of gas-fired power projects scheduled to begin construction over the next 12 months.
Texas has an estimated $17 billion of gas-fired power construction kickoffs over the next 12 months. Texas voters established the Texas Energy Fund in 2023 to support construction of new dispatchable generation or the refurbishing of existing dispatchable generation. For more on that, see November 10, 2023, article - Texans Approve Billions in Funding for Natural Gas Power Generation. While applications for grants or low-interest loans have been far greater than the availability of funding, that fund has had several projects drop out of contention in recent months. For more on that, see July 11, 2025, article - Rising Costs Could Endanger Some Texas Energy Fund Projects.
Over the next 24 months, developers have scheduled construction to begin on 265 gas-fired power projects across the U.S. valued at about $76 billion. The regions with the highest dollar value of project activity include the Southwest, Southeast and Great Lakes.
Click on the image at right to see the U.S. regions with the highest dollar value of gas-fired power plant construction activity through September 2027.
While plans to build dispatchable generation fueled by natural gas have grown over the last 12 months, renewables still are slated to garner the largest share of the new-build generation market in the U.S. over the 2026-2030 period. President Donald Trump's determination to defund or stop construction of wind and solar generation may slow the pace of new-build renewable generation requiring federal permits, Burt said, but it is unlikely to stop it altogether. That's because wind and solar generation, under certain circumstances, have become competitive with traditional forms of electric generation, even without federal tax credits, according to the annual levelized cost of electricity study produced by Lazard (New York, New York), a financial services firm.
Click on the image at right to see Lazard's most recent estimate of the levelized cost of electricity produced by various types of generators.
"There's no question that the outlook for gas generation has brightened in the last year," Burt said. "But there's always a gap between what developers plan to build and what actually gets built. Across industries, proposed projects can be delayed or cancelled for a variety of reasons. The new-build gas power business is not out of the woods by any means, but its long-term prospects look much better than they last year at this time."
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 over 200,000 current and future projects worth $17.8 Trillion (USD).
Over the last year, the long-term prospects for gas generation in the U.S. definitely have improved. Between 2026 and 2030, developers have scheduled construction to begin on about 107 gigawatts (GW) of new-build, gas-fired generation capacity. That's about 40 GW, or 62%, more than had been scheduled to begin construction over the 2025-2029 period, according to data in Industrial Info's Global Market Intelligence (GMI) platform.
But while the long-term outlook for gas power has improved, the near-term outlook remains cloudy due to the shortage of gas turbines, cautioned Britt Burt, Industrial Info's senior vice president of research for the global power industry. "There's a three-year backlog in getting a gas turbine, so that's going to sharply limit construction of new gas-fired generation in the near term, say over the next year or two," he said.
He added that a number of proposed projects scheduled to kick off construction in the next year or two might be delayed, unless developers can find ways to get their hands on a turbine.
"Some developers may have turbines sitting in warehouses because their projects have been delayed or cancelled due to an inability to obtain permits, financing or off-takers for the electricity," he said. "In that case, I don't expect those developers will have any trouble getting rid of unneeded turbines."
And he said there were various "escape clauses" in contracts between developers and turbine manufacturers if a developer abandoned a proposed project and had no other need for a turbine for which it had paid a reservation fee. In that case, turbine manufacturers should have no trouble reselling that equipment to another customer, given the high level of demand.
In the near term, it is unclear how the supply-demand imbalance for gas turbines will be eased. The gas turbine manufacturing industry is a global industry that is dominated by a small group of large firms, including GE Vernova Incorporated (Boston, Massachusetts), Siemens AG (Munich, Germany) and Mitsubishi Corporation (Tokyo, Japan), None of them have announced plans to expand their overseas turbine manufacturing capacity. GE currently is expanding its Greenville, South Carolina, gas turbine manufacturing plant, a $160 million project, but that expansion is not expected to be complete until yearend 2026. For more on that, see January 30, 2025, article - GE Vernova Powers Up Investments in Gas, Renewable Equipment.
Until the market finds a way to bridge the supply-demand gap for turbines, Britt said developers' plans to begin construction of gas-fired generation in the next year or two may have a higher probability of being delayed or cancelled.
In the U.S., Industrial Info is tracking 152 new-build gas-fired generation or cogeneration projects that are scheduled to begin construction over the next 12 months. The total investment value (TIV) of these planned capital projects is about $42 billion.
The states with the greatest dollar value of proposed gas-fired power plants scheduled to begin construction by September 2026 are Texas, Mississippi, North Dakota and Indiana, according to Industrial Info's data.
Texas has an estimated $17 billion of gas-fired power construction kickoffs over the next 12 months. Texas voters established the Texas Energy Fund in 2023 to support construction of new dispatchable generation or the refurbishing of existing dispatchable generation. For more on that, see November 10, 2023, article - Texans Approve Billions in Funding for Natural Gas Power Generation. While applications for grants or low-interest loans have been far greater than the availability of funding, that fund has had several projects drop out of contention in recent months. For more on that, see July 11, 2025, article - Rising Costs Could Endanger Some Texas Energy Fund Projects.
Over the next 24 months, developers have scheduled construction to begin on 265 gas-fired power projects across the U.S. valued at about $76 billion. The regions with the highest dollar value of project activity include the Southwest, Southeast and Great Lakes.
While plans to build dispatchable generation fueled by natural gas have grown over the last 12 months, renewables still are slated to garner the largest share of the new-build generation market in the U.S. over the 2026-2030 period. President Donald Trump's determination to defund or stop construction of wind and solar generation may slow the pace of new-build renewable generation requiring federal permits, Burt said, but it is unlikely to stop it altogether. That's because wind and solar generation, under certain circumstances, have become competitive with traditional forms of electric generation, even without federal tax credits, according to the annual levelized cost of electricity study produced by Lazard (New York, New York), a financial services firm.
"There's no question that the outlook for gas generation has brightened in the last year," Burt said. "But there's always a gap between what developers plan to build and what actually gets built. Across industries, proposed projects can be delayed or cancelled for a variety of reasons. The new-build gas power business is not out of the woods by any means, but its long-term prospects look much better than they last year at this time."
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 over 200,000 current and future projects worth $17.8 Trillion (USD).
