Industries from around the world are realizing the benefits of setting up shop here, and the United States, especially the Southeast, is experiencing a resurgence of economic development.
This growth is not only bringing increased demand for electricity to the region in the form of new data centers and new manufacturing facilities, but also people moving to the region in search of job opportunities, new housing, appliances, and household appliances. It has also led to increased demand for electricity from families who have migrated in search of products and even electric cars to charge. .
To meet this rapidly increasing power demand, the region’s utilities must bring additional resources online quickly and affordably and reliably. If utilities can’t do both, these big companies will take their facilities, good-paying jobs, and economic opportunities elsewhere. Similarly, if the costs of developing these resources are too high, we will all suffer from higher energy costs and lower living standards.
The good news is that local utilities are working with regulators to propose new energy options. Natural gas is a fundamental fuel for economic growth and a source of power generation that powers modern economies at home and abroad, so it is an obvious choice to consider. Natural gas generation is a well-developed, low-risk technology that is affordable, reliable, and rapidly deployable on an industrial scale.
Despite claims of “panicked gas demand,” the permitting and construction process for these facilities is time-tested and well-known to state power regulators. Regulators are responsible for ensuring that the cost of new generation is fair and reasonable for ratepayers. . These regulatory bodies frequently seek to promote options to address increasing demands on regional grids, reliability, and proven power generation resources versus unproven, untested, and less reliable solutions. I am well aware of the difference between it and the “hopium” that is sold.
Domestic and international companies are relocating here because of cheap energy, abundant labor, and low cost of doing business. Electricity demand has generally increased by 1.5% per year over the past few years, and we need to respond responsibly to that demand.
Some groups argue that demand growth may not occur (if billions of dollars are spent on energy efficiency programs), and that “electrification of everything” would put a huge strain on power infrastructure. It is ironic that they are also the group that is promoting this. It is unreasonable to insist that regulators should assume demand will be flat while insisting on mandating electric vehicles by 2035, and that mandating EVs alone will increase electricity demand by more than 20%. will do.
Intermittent resources can also provide some incremental support, but cheap, reliable, large-scale generation is needed. We cannot provide solar or wind power at this time. All types of energy, including natural gas, have a role to play and need to be part of our energy menu for decades to come, so solar, wind, hydrogen and nuclear power need to be included in the discussion. This is not a “panic rush” for natural gas. It’s a realistic and thoughtful way to meet our needs.
Consider Germany, which offers a lesson on how not to address industrial power demands. Despite the country being Europe’s manufacturing hub, the push for low-emission electricity has led to some of the highest electricity prices in the world, grid instability and few options to solve problems. As a result, the country is becoming increasingly hollowed out, with major manufacturing and industry relocating to areas such as the southeastern United States. When the CEO of Germany’s largest energy company declares that “Germany’s industrial heartland is unlikely to fully recover from the energy crisis,” we should consider ourselves forewarned. It is.
Our utilities and regulators must recognize that there are only a limited number of ways to maintain our power grid, and all of them must adopt a comprehensive energy strategy that leverages natural gas generation. Natural gas is an essential part of our future, providing the energy needed by families, small businesses, manufacturers, farmers, and all consumers.
Kevin Doyle of Hayesville, North Carolina, is Southeast Executive Director of Consumer Energy Alliance.