Arkansas Advanced Energy Association and Arkansas Advanced Energy Foundation recently released a report on the state’s energy sector that highlights economic opportunities, infrastructure challenges and rising electricity demand.
The 2026 Arkansas Advanced Energy State of the Industry Report is the organization’s first and provides an annual, data-driven snapshot of the state’s energy system. The need for such information became apparent after the state’s two investor-owned utilities projected shortfalls in electricity generation.
“Our goal is to provide a credible, accessible resource that brings together key data, trends, and context about Arkansas’ energy landscape so that those responsible for making decisions – and those impacted by them – have the information they need,” Executive Director Lauren Waldrip said. “This report is intended to contribute to that effort.”
The report includes information from national sources, such as the U.S. Energy Information Administration, and identifies five key themes in the state’s energy sector: growing supply-demand tension; large loads, electrification and data centers; solar dominates new capacity; advanced energy as economic strategy; and policy realignment.
Advanced energy in Arkansas comprises electricity generation, including solar, wind, nuclear, natural gas and bioenergy; grid modernization; storage; distributed energy resources; electrification technologies; and the workforce and supply chains that support them. It spans communities, including rural areas; various industries and sectors, such as agriculture, manufacturing and utilities; and entrepreneurs. According to the report, the state’s energy industry had 67,035 jobs in 2024.
The report shows that energy demand is rising faster than infrastructure can be built. In 2024, the state’s two investor-owned utilities released Integrated Resource Plans that showed energy-generation shortfalls beginning as early as 2026. Over the past three years, projected U.S. five-year peak load growth increased from 24 gigawatts to 166 gigawatts. Regional transmission organization Midcontinent Independent System Operator, which manages the grid for most of Arkansas, expects significant summer peak growth through 2030.
Data centers, advanced manufacturing and electrification are reshaping energy forecasts, according to the report. Nationwide, data centers could reach 12% of U.S. electricity consumption within three years. Electric vehicle registrations in Arkansas rose more than 24% year-over-year.
“Arkansas is not facing an energy deficit today,” the report shows. “It is facing a planning test. Arkansas’ energy future will be defined by how quickly and cost-effectively it can align supply, demand, workforce and infrastructure in a period of rapid change.”
Since 2015, nearly all net capacity additions for electricity generation have been solar, with about 1.8 gigawatts added, according to the report. Arkansas has about 2.5 gigawatts of solar generation, and about 800 megawatts planned. The state’s first utility-scale wind project started operating in 2025.
“The industry report is part of a broader commitment by Arkansas Advanced Energy to help drive an informed, solutions-oriented conversation about our state’s energy future,” Waldrip said.
Along with the report, the organization also offers a new Arkansas Energy Map, educational videos, and will launch a campaign in April to educate and inspire Arkansans about the energy sector. The map and educational videos are available on the organization’s online resource library.
The Arkansas Advanced Energy Association and Arkansas Advanced Energy Foundation represent businesses, investors and stakeholders working to modernize the state’s energy system and strengthen economic competitiveness.
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