There is a resurgence in economic development in the United States, especially in the southeast as industries around the world recognize the benefits of setting up shop here.
That growth brings increased electricity demand to our region not only in the form of new data centers and new manufacturing facilities, but also from the families who move here for the job opportunities, with new homes, appliances, consumer electronics and even electric vehicles to charge.
In response to this burgeoning power demand, utilities in the region need to bring additional resources online in short order and in a way that is affordable and reliable. If utilities are unable to do both, then these large companies will take their facilities, well-paying jobs and economic opportunities elsewhere. Equally, if the cost to develop these resources is too high, then we will all suffer from increased energy costs and lower standards of living.
The good news is regional utilities are working with regulators and proposing new energy options. Natural gas is an obvious choice to consider as it is a foundational fuel for economic growth and the electrical generation that powers modern economies, both domestically and internationally. Natural gas generation is a well-developed, low-risk technology rapidly deployable at an industrial scale that is affordable and reliable.
Despite claims that there is a “panicked rush to gas,” the process to permit and construct these facilities is time-tested and well known to state utility regulators, who are responsible for ensuring that the costs for new generation are just and reasonable for ratepayers. These regulatory bodies know full well the increased demands on the local grids, the options to address reliability, and the differences between proven generation resources and the “hopium” often peddled to promote unproven, untested and unreliable solutions.
Companies from around the country and world have been relocating here due to the inexpensive energy, abundant labor and low cost of doing business. Electricity demand has by and large grown 1.5% annually over the past few years, and we need to address that demand responsibly.
It is ironic that some of the same groups that are arguing demand growth may not occur (if we spend billions on energy efficiency programs) are also the ones pushing to “electrify everything,” which will put huge strains on the electrical infrastructure. It’s irrational to argue that regulators should assume flat demand while advocating for electric vehicle mandates by 2035 — and just the EV mandates alone would raise electricity demand by 20% or more.
Intermittent resources can also provide some incremental help, but we must have inexpensive and reliable generation at scale — which solar and wind cannot provide right now. Solar, wind, hydrogen and nuclear need to be included in the discussions as there is a role for all types of energy, including natural gas, which must and will be on our energy menu for decades to come. This isn’t a “panicked rush” to natural gas; it is a realistic, thoughtful way to meet our needs.
Consider Germany, an object lesson in how not to address industrial electricity demand. The country is the manufacturing heart of Europe, yet its push for low-emissions electricity led to some of the highest electricity rates in the world, grid instability and few options to fix their problems. The result is the deindustrialization of the country, with major manufacturers and industries relocating to places such as … southeastern United States. When the CEO of one of the largest German energy companies is declaring that “Germany’s industrial heartlands are unlikely to ever fully recover from the energy crisis,” we should consider ourselves forewarned.
Our utilities and regulators should recognize that there are only a few ways to sustain our grid, and all of them must employ an inclusive energy strategy that utilizes natural gas generation. Natural gas is an essential part of the future to supply the energy that families, small businesses, manufacturers, farmers and all consumers need.
Kevin Doyle of Hayesville, N.C., is southeast executive director for Consumer Energy Alliance.
Read More: Reliable natural gas needed to fuel southeast’s economy – The Virginian-Pilot