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Battery storage

For cooperatives, 2026 is positioned to be a high-deployment year, with storage increasingly used to manage fast-growing load pockets, relieve distribution constraints and provide firm, local capacity where equipment lead times are long.

Storage duration

Analysts expect a structural shift toward longer duration storage, with multi-hour systems becoming essential for absorbing renewable surpluses and supporting peak reliability.

Safety

Utilities are increasingly prioritizing safety-driven procurement and a wider mix of battery chemistries as storage moves from niche to mainstream grid infrastructure.

Costs

2026 is widely seen as the start of a global “storage supercycle,” with costs stabilizing near or below $80/kWh—making storage cost-competitive with gas peaker plants in many markets.

Artificial intelligence

The rise of AI-driven data center load is reshaping storage applications, accelerating interest in private-wire and behind-the-meter-solutions that bypass long interconnection queues.

Renewables

For cooperatives, 2026 is a pivotal year where solar-plus-storage hybrids can help meet rising peak demand, well-timed renewable procurement can offer cost effective power supply and clean energy additions can help support local reliability in transmission-constrained regions.

Momentum

The U.S. renewable market enters 2026 with record momentum, with the Energy Information Administration projecting that 99% or more of all net new generating capacity added this year will come from solar, wind and storage.

Solar scales

EIA expects more than 22 GW of new utility-scale solar to come online in 2026, increasing U.S. solar generation by 17% year-over-year.

Clean energy penetration

Renewables are projected to supply 27% of total U.S. electricity in 2026, up from 23% in 2024, continuing a steady rise in clean-energy penetration.

Tax incentives

Despite policy headwinds, analysts anticipate a near-term acceleration of safe-harbor solar and wind projects as developers work to secure tax incentives ahead of stricter FEOC sourcing requirements.

Natural gas

For cooperatives, natural gas continues to serve as the primary firming resource for meeting peak conditions, managing extreme weather and supporting large new member loads with fast, dispatchable power.

Reliability

Remains a foundational reliability resource heading into 2026, continuing to anchor U.S. electric system stability during high demand period.

Continued growth

EIA forecasts record U.S. natural gas production near 109 Bcf/day in 2026, along with continued growth in LNG exports.

Dependability

Gas is expected to maintain a 39% share of U.S. power generation, reinforcing its role as a dependable balancing resource amid rising load growth.

Global developments

Global analysts project 2026 as the start of a new LNG “super-cycle,” driven by major U.S. and Qatari export-capacity expansions and increased gas-to-power development in Asia.

Large loads

Rising large-load interconnection requests and tightening reserve margins strengthen Deloitte’s view that firm capacity delivery will be a top utility priority in 2026.

Electric vehicles

For cooperatives, EV adoption is accelerating across charging infrastructure, fleet conversion, and member demand. While growth is uneven, the next phase will be shaped by scalability, cost alignment, and the co-op’s role in supporting rural adoption.

Charging networks

EV charging infrastructure is expanding rapidly, with deployments increasingly focused on fleet charging and high-load use cases. Demand for fast charging is rising, though permitting, grid capacity, and reliability remain constraints. Co-ops are evaluating where to invest, balancing public access, fleet needs, and system impacts.

Retail outlook

EV sales are expected to grow, but at a slower pace as affordability and consumer sentiment fluctuate. Automakers are adjusting production strategies, while incentives and regional conditions continue to shape demand. For co-ops, this creates uncertainty in load forecasting and infrastructure timing.

Co-op impact

Electric vehicles are expected to contribute to load growth, particularly through managed charging and fleet electrification. However, growth will vary by service territory. Co-ops will play a key role in aligning infrastructure investments with member affordability and long-term system planning.

Virtual power plants

For cooperatives, VPPs offer a deployable, cost-effective tool for managing local peak demand, deferring distribution upgrades and enhancing reliability during a year of exceptional load growth.

Maturity

2026 marks a major turning point, with VPPs shifting from emerging tools to grid-level necessities as load growth accelerates.

Capacity growth

Global VPP capacity is expected to reach 75 GW in 2026, growing at a 33% annual rate as more DERs participate in grid service markets.

Investor confidence

Investor confidence is strong, with significant 2026 funding rounds for VPP and DER orchestration platforms, signaling VPPs’ arrival as utility-scale capacity resources.

Regulation

Rising electricity demand and affordability pressures are pushing regulators toward fast-acting, low-cost flexibility solutions, strengthening the case for VPPs over long lead transmission or generation projects.

Evaluation criteria

CPower’s 2026 forecast emphasizes that VPP programs will be evaluated increasingly on measurable cost reductions, not just enrollment or participation.

Uncertainty

Utility Dive warns that without accelerated scale in 2026, utilities may shift attention back to traditional large-scale generation, making this year an inflection point for the future of distributed flexibility.