As the article in the url below starts off by saying, "Something strange is happening with utilities." Specifically:
"For decades, electricity usage in the US has been mostly flat. Even with more people starting to use more power for more things, much of that has been offset as buildings, factories and appliances become more efficient."
But suddenly that is no longer the case and, apparently, the utilities have been caught off-guard:
"Big tech companies need lots of electricity, for data centers and especially for artificial intelligence. Homes are using more electricity for heating and cooling. Factories need more electricity to shift away from fossil fuels."
As a result, ironically:
"… when faced with this sudden increase of load on the power grid, utilities are going to rely heavily on natural gas, and even coal."
This is not a minor or temporary shift, but something more fundamental:
"[Research predicts] demand to for electricity to climb almost 16% over the next five years, more than triple his estimate from a year ago. Utilities are expecting customers to need as much as 128 gigawatts of new capacity in 2029."
And, as is often the case when societies are asked to choose between economic growth and sustainability, it is the switch away from fossil fuels that is the primary casualty:
"That's really going to disrupt the green transition. Power providers that have made pledges to cut back or eliminate carbon emissions are now starting to reverse course. Duke Energy Corp. is extending the life of its largest coal-fired power plant, abandoning its plan to exit coal by 2035. FirstEnergy also will operate a pair of coal plants, stepping back from an earlier pledge to stop using the fuel by 2030. And energy companies in the US are planning new gas plants at the fastest pace in years."
Take care
David
David Chandler
© Sage Publications, 2023
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Coal-Black Swans Threaten the Green Transition
By Will Wade
December 17, 2024
Bloomberg
https://www.bloomberg.com/news/newsletters/2024-12-17/coal-black-swans-threaten-the-green-transition
