Navigating the Resurgence of Economic Development: The Role of Natural Gas Generation in Meeting Growing Electricity Demand

The Southeast United States is experiencing a resurgence in economic development, attracting industries from around the world to set up shop in the region. This growth has led to an increased demand for electricity, not only from new data centers and manufacturing facilities but also from families moving to the area for job opportunities.

In response to this growing power demand, regional utilities are working with regulators to propose new energy options. Natural gas is being considered as a foundational fuel for economic growth and reliable electricity generation. Despite concerns about a rushed transition to gas, the process to permit and construct these facilities is well-known to state utility regulators.

Companies are relocating to the Southeast due to the region’s inexpensive energy, abundant labor, and low cost of doing business. With electricity demand growing annually, it is crucial to address this demand responsibly. While intermittent resources can provide some help, inexpensive and reliable generation at scale is necessary, which solar and wind energy cannot currently provide.

Germany serves as a cautionary tale of how not to address industrial electricity demand, with high electricity rates and grid instability leading to deindustrialization. The CEO of a major German energy company has warned that the country may never fully recover from its energy crisis.

Utilities and regulators in the Southeast should recognize the importance of an inclusive energy strategy that includes natural gas generation to sustain the grid and meet the energy needs of families, businesses, manufacturers, and consumers. Natural gas is seen as an essential part of the future energy supply in the region.