The Secret Life of the US Energy Grid

Mar 31, 2026

Ryan Yonk, energy markets expert focused on regulation and permitting reform. Julia Cartwright, energy policy analyst with work on nuclear and technology-neutral policy. They unpack US electricity sources and global context. They debate permitting bottlenecks, market vs planned innovation, retail choice experiments, small modular reactors, and how subsidies and utility structure shape the grid's future.

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INSIGHT

U.S. Electricity Mix And Per‑Capita Trends

The U.S. electricity mix is dominated by natural gas (≈43%), followed by nuclear and coal, with wind, solar and hydro smaller but growing contributors.
Julia Cartwright notes the U.S. peaked per-capita energy use in 2005 and benefits from diverse domestic production and net-exporter status.

INSIGHT

Political Choices Have Narrowed U.S. Energy Robustness

Market decisions and political picks have narrowed America's historically broad energy base, making the system less robust than a generation ago.
Ryan Yonk highlights forced retirements of coal, restrictions on nuclear and oil as examples that reduce diversity.

ANECDOTE

Market Tinkering Beats Centralized Picks Anecdote

Ryan Yonk contrasts China's centralized energy planning with U.S. market serendipity, preferring entrepreneurial 'garage' innovation.
He recalls betting on U.S. engineers in open markets to produce breakthroughs rather than top-down selection.

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In this episode of The Economist Next Door, Paul Mueller is joined by AIER colleagues Julia Cartwright and Ryan Yonk for a wide-ranging conversation on the past, present, and future of American energy.

They explore how energy is produced in the United States, why the diversity of U.S. energy sources makes the system unusually robust, and how regulation and subsidies can undermine that strength.

The trio compares US and Chinese energy systems, unpacks the politics of "green" mandates and subsidies, and explains why nuclear power—especially advanced and small modular reactors—may be essential for both reliability and decarbonization. Along the way, they discuss the Trump administration's recent energy moves, the backlog of projects waiting to connect to the grid, and why letting markets—not politicians—pick winners is crucial for innovation and affordability.

Key Topics

Why energy is central to prosperity, productivity, and everyday life
How the US generates its electricity today (natural gas, nuclear, coal, wind, solar, hydro)
What makes the US energy system unusually robust compared with other countries
How global shocks (like conflict near Iran and the Strait of Hormuz) affect US prices
US vs. China: production numbers, reliability, central planning, and data skepticism
Why regulatory layering, permitting delays, and interconnection bottlenecks stall new projects
The mixed legacy of subsidies and mandates for wind, solar, and other favored technologies
The role of utilities, "natural monopolies," and why customers often lack real choice
How deregulation and competition in some gas and power markets have benefited consumers
Nuclear power's promise, the rise of advanced and small modular reactors, and why the US risks falling behind
The Trump administration's recent actions on drilling permits, nuclear, and renewable subsidies
Why technology-neutral, market-driven policy is better than "energy favoritism"

Key Takeaways

The United States has a broad, diverse mix of energy sources, which provides resilience even when global markets are disrupted.
Heavy regulatory layering, slow permitting, and grid interconnection hurdles have created a large backlog of viable projects that could otherwise expand capacity and lower prices.
Subsidies and mandates—whether for fossil fuels, wind, solar, or nuclear—distort markets, pick winners and losers, and often raise costs for consumers while reducing innovation.
Comparisons to China's headline energy statistics can be misleading; central planning, unreliable rural grids, and questionable data all complicate the picture.
Nuclear energy, especially advanced and small modular designs, is a promising path for abundant, low-carbon power, but US policy on fuel, safety rules, and subsidies heavily shapes what gets built.
Long-run energy reliability and affordability are best served by open markets, clear and limited safety regulation, and allowing entrepreneurs and consumers—not bureaucrats—to decide the energy mix.

Featured Guests Julia Cartwright – Senior Fellow at AIER, specializing in energy policy and technology-neutral regulation. She has recently written on ending "energy favoritism" and the risks of US policy falling behind China in advanced nuclear.

Ryan Yonk – Senior Fellow at AIER and director of student programs, working in the public-choice tradition with a focus on energy and environmental regulation. He is coauthor of The Reality of American Energy: The Hidden Costs of Electricity Policy.

Resources & Links Mentioned

Ryan Yonk, The Reality of American Energy: The Hidden Costs of Electricity Policy
Julia R. Cartwright, "Ending the Era of Energy Favoritism: How Technology-Neutral Policy Can Unlock the US Power Grid," American Institute for Economic Research
Julia R. Cartwright, "America Risks Losing the Advanced Nuclear Race to China," AZ Free News • Ryan Yonk, The Reality of American Energy: The Hidden Costs of Electricity Policy https://www.leslibraires.ca/livres/the-reality-of-american-energy-the-hidden-costs-of-electricity-policy-9781440853913
Julia R. Cartwright, "Ending the Era of Energy Favoritism: How Technology-Neutral Policy Can Unlock the US Power Grid," American Institute for Economic Research, 2026.https://aier.org/article/ending-the-era-of-energy-favoritism-how-technology-neutral-policy-can-unlock-the-us-power-grid/
Julia R. Cartwright, "America Risks Losing the Advanced Nuclear Race to China," AZ Free News, January 19, 2026. https://azfreenews.com/2026/01/julia-cartwright-america-risks-losing-the-advanced-nuclear-race-to-china/