TVA’s Long-Term Energy Plan Falls Short of Federal Commitments, Relies Heavily on Gas

KNOXVILLE, TENN. — Today, the Tennessee Valley Authority (TVA) released its 2025 Integrated Resource Plan (IRP), which outlines how the federal utility aims to generate electricity for its 10 million customers over the next 25 years. The proposed plan is heavily reliant on methane gas, and fails to consider more affordable, healthier, and climate-friendly clean energy alternatives.

In March, TVA submitted its budget proposal for Fiscal Year 2025, in which the utility announced plans to cut carbon emissions by 80 percent by 2035. These benchmarks do not align with the clean energy commitments outlined by the White House, whose climate experts have said it is necessary to reduce carbon emissions by 100 percent by 2035.

Not only do TVA’s benchmarks fall short of the federal guidelines, but they are also unattainable based on the IRP released today, which proposes up to 19 GW of gas-powered electricity. According to the IRP, a majority of its proposed scenarios fail to reach an 80 percent carbon reduction by 2035. Since 2020, TVA has already announced plans for nine new gas plants—the largest fossil fuel buildout of any utility across the country this decade. 

Some parts of the IRP move in the right direction. It calls for a more aggressive solar plan, increasing solar production to up to 20 GW, and integrates a more robust energy efficiency and demand response approach, which will improve grid stability, lower costs for the utility and its customers, and reduce emissions. By acting swiftly towards the higher ends of the plan’s clean energy ranges, TVA can achieve their carbon reduction targets without compromising their bottom line. 

TVA’s board will vote on the proposed plan in 2025.

In response to today’s plan release, David Rogers, deputy director for the Sierra Club’s Beyond Coal campaign, issued the following statement:

“We are disappointed that TVA has ignored overwhelming evidence that clean energy options are healthier and more affordable, and proposed a plan that relies heavily on dirty fossil fuels.

“The plan announced today is not only too dependent on gas to meet federal commitments to become carbon-free by 2035, it does not even put the utility on track for the goals it publicly set for itself. This proposal fails to meet the moment. It relies too much on gas plants that failed us during Winter Storm Elliott, when we needed them most, and moves too slowly when it comes to wind, solar, battery storage, and energy efficiency, which together can provide reliable power   for customers without jeopardizing their health or their wallets.

“TVA can, and must, transition fully away from fossil fuels and deliver the clean, affordable and reliable power communities and companies are demanding. Doing so will help strengthen the Valley’s economy and lower electricity bills for families and businesses.”