In Utah and across the nation, we face a perfect storm of energy challenges, especially when it comes to the electricity grid. The good news: Utah is rising to the moment and setting an example the rest of the country would do well to follow.
For many years, conventional wisdom held that U.S. electricity demand would remain relatively flat. But those days are over.
Post-pandemic supply-chain worries and changing views on global trade are bringing energy-intensive industries back to the U.S. after decades of offshoring. The rise of cloud computing, data centers and artificial intelligence is also driving up demand for electricity, which is the lifeblood of the digital age.
And while the number of electric vehicles may not be growing as fast as some predictions, those vehicles are also driving up electricity demand.
Surging demand for electricity, however, is on a collision course with limited supply. The cause: older power plants are being retired, there’s congestion on long-distance power transmission lines and other pieces of essential infrastructure on the grid need to be upgraded or replaced.
Indeed, a recent study looking at transmission needs on the Western grid over the next 20 years found that peak demand will increase 100 GW by 2045. To meet that demand, more than 20,000 additional miles of new transmission will be required along with a $75 billion investment.
Against this backdrop, Utah Gov. Spencer Cox recently announced a plan to double the state’s power generation capacity over the next 10 years. Dubbed Operation Gigawatt, the plan involves the construction of new power generation, adding transmission lines, investments in research and innovation and reforming policies that have restricted the potential of sources like nuclear and geothermal to meet Utah’s electricity needs.
“There is such enormous demand and growth in our state — we need to provide this for the well-being of all Utahns,” said Joel Ferry, the executive director of the Utah Department of Natural Resources.
To succeed, it will take more than just changes in Utah state law. The active involvement of the federal government will also be necessary, due to the amount of federal land in Utah and the role of federal regulators in overseeing the nation’s power grid.
Thankfully, however, Utah punches well above its weight when it comes to federal energy policy. An excellent example was the recent Conservative Climate Summit hosted by Utah Rep. John Curtis.
A major subject of discussion during the summit was how to bring together different constituencies in a highly polarized political environment to build new power generation facilities, transmission lines and other pieces of key infrastructure.
Expanding and diversifying the power grid promotes competition between energy sources, boosts overall energy security for the country and generates investment, jobs and economic growth.
“You do not have to give up your conservative credentials to be part of this,” Curtis said to his fellow Republicans.
The key is holding “frank discussions” that focus on advanced technologies and a shared belief on the left and the right in clean air, clean water and clean land, he said.
Politicians and bureaucrats cannot solve this problem on their own, however.
One energy developer — rPlus Energies, which builds a variety of energy facilities including energy storage systems based on hydroelectric technology — challenged the energy industry itself to highlight what’s at stake for the public if the power grid doesn’t expand fast enough using both traditional and renewable sources.
“I think as an industry, we need to start doing a better job of saying … (if) you want your lights to stay on reliably, we need this new natural gas plant, or this new solar plant or this new battery,” Luigi Resta, president of rPlus, told the summit.
This kind of pragmatism underpins Utah’s approach to expanding the power grid. When energy demand is rising, there’s room for many different energy sources to grow. It’s not a zero-sum game, as some political actors and ideological groups would have you believe.
Utah’s approach to energy issues is based in reality, not politics — which is why it will work and why the rest of the country would be wise to follow.
Steve Handy is a former state legislator and the Utah director for The Western Way, an organization focused on market-competitive solutions to environmental and conservation challenges.
