April 17, 2025

Currents - Energy Industry Insights: V 9, Issue 4, April 2025

Hikmat Al-Chami, Kevin Carr, Stephanie Eaton, Carrie Grundmann, Mark Heath, William Herlihy, Steven Lee, Nicholas Muto, Barry Naum, Derrick Price Williamson, David Yaussy

Spilman Thomas & Battle, PLLC

+ Follow Contact

Facebook

Send

Embed

Volume 9, Issue 4

● Welcome

Welcome to our fourth issue of Currents 2025. We are covering a multitude of issues in this edition, but we want to pass along a couple of announcements first.

Again, thank you for reading!

The Data Center Boom Continues, but Pitfalls and Questions Remain

By Carrie H. Grundmann

The energy needs of data centers continue to grow, seemingly unabated. According to this Utility Dive Article, a report from the National Electrical Manufacturers Association (NEMA) estimates that data center demand (and transportation electrification) will cause U.S. electricity demand to rise two percent year-over-year for the next quarter century. In the near term (the next decade), data center demand is projected to grow 300 percent. The Trump administration has been playing an active role in facilitating the growth of data centers and the global race for AI dominance. Following on President Trump’s Executive Orders from January 2025 on AI and U.S. energy security, the Department of Energy (DOE) recently announced plans to make its DOE-owned land at 16 locations available for data center development. They have since issued a request for information (RFI) to gather feedback from industry experts on how to use this land to further data center development, advocating in favor of a public-private partnership model.

Click here to read the entire article.

Local Microgrids are Reshaping Energy Resilience and Sustainability

“A national surge in microgrid installations, driven by plummeting solar and battery prices, is helping homes, hospitals and businesses maintain power during disasters while stabilizing electricity demand.”

Why this is important: Natural disasters have become increasingly more severe given the expansive impacts of climate change. One does not need to look farther than the devastation of Hurricane Helene, which struck a huge area of the Southeast from Florida, to Georgia, to the Carolinas and beyond. The damage from the hurricane was unprecedented, with Duke Energy reporting that more than 99 percent of its South Carolina customers in the Upstate lost power. One bright spot, however, was the Hot Springs, North Carolina microgrid. This microgrid was installed to service this remote town of about 535 residents, about 40 miles from Asheville, North Carolina. During Helene, the Hot Springs microgrid performed 24/7 from October 2, 2024 through October 8, 2024 on its own 2 megawatts of solar and 4.4 megawatt hours of battery storage, with conservation of energy by customers during this time.

What are microgrids? They are small-scale energy systems that can operate as part of the larger electric grid or independently in times of need, such as following a natural disaster. Generation devices, such as solar panels and/or battery storage systems, and electric management systems to control voltage and power distribution are combined to form a microgrid. By using renewable energy sources with battery storage, microgrids provide clean and resilient sources of electricity. In fact, in 2023, 51 percent of all new microgrid generating capacity was derived from solar power.

Microgrids are most beneficial to remote or environmentally sensitive communities like Hot Springs, and also like the Blue Lake Rancheria in Northern California. After a 6.4 magnitude earthquake struck the area in December 2022, this Native American Reservation leaned on its own electric microgrid. The Blue Lake Rancheria is powered by a 500 kilowatt solar array paired with battery storage, and is also connected to the community’s water systems, food storage, EV chargers, communication facilities and other crucial infrastructure. Use of the microgrid not only provides resiliency in the event of earthquakes, forest fires or rainstorms, but also has reduced electricity costs by 25 percent and reduced the Racheria’s carbon footprint by hundreds of tons of carbon per year. It has been so successful that Blue Lake Rancheria is expanding its microgrid system through the Tribal Energy Resilience and Sovereignty project, and connecting it to three other communities.

Outside Houston, Texas, there are 140 microgrids operated by Enchanted Rock. Totaling 210 megawatts, these microgrids were operated simultaneously following Hurricane Beryl’s landfall. As a result, grocery stores, medical centers and neighborhoods had power during the storm. Microgrids may just be the best solution for communities facing the most significant natural disasters. --- Stephanie U. Eaton

Nuclear Energy Support Near Record High in U.S. and Advantages and Challenges of Nuclear-Powered Data Centers

“61% favor use of nuclear energy, one point below trend high.”

“Nuclear power has the potential to be a great partner for data centers but there are some hurdles to clear.”

Why this is important: As the use of artificial intelligence continues to rise, data centers are being planned and built to provide the computer support AI requires. The new data centers are considered to be a challenge, with huge electrical demands required to run them. A recent Gallup poll shows that most Americans support the use of nuclear power to fund those data centers. In fact, since Gallup has been polling, nuclear power is now within one percent of its highest favorability rating. In the most recent poll, 61 percent of Americans supported nuclear power for data centers. In line with this support, nuclear power is being looked at as a significant power source, and some want to reopen and refurbish closed nuclear plants.

Current estimates are that by 2028, 12 percent of U.S. power will be used for data centers only. Nuclear power continues to be examined as a likely power source. Nuclear has the advantage of being available 24 hours a day, seven days a week. It is generally always available, is flexible with stable costs, and there are existing plants that could be redeveloped or reopened to provide that power. As DOE notes, while there are advantages of nuclear power, there also are difficulties in rapid scale development now. While new technology is being implemented for the next round of nuclear plants, some of it is unproven for large-scale use and the power needs for data centers grow daily before new nuclear plants are available. And many in the coal sector, with a favorable new administration, believe coal-fired plants should be reopened to power data centers. --- Mark E. Heath

Ohio Senate Considers House Version of Energy Overhaul

“Both chambers have passed their own versions of the bill in recent weeks, but don’t appear to be rushing for the finish line.”

Why this is important: With regional energy capacity on the verge of crisis, Ohio lawmakers are advancing competing visions for power generation while carefully navigating the lingering shadow of the state's largest corruption scandal, highlighting the increasingly complex balance between energy security, economic development, and consumer protection.

The two proposed bills are meant to encourage new power plant investments along with tax incentives while also preventing utility companies such as AEP, Duke, and FirstEnergy from competing in power production. Both bills also introduce new utility pricing mechanisms and eliminate the controversial payments supporting older coal facilities—funding that emerged from the scandal-plagued House Bill 6 legislation at the heart of Ohio's most significant public corruption investigation.

Both chambers have advanced their energy bills on parallel tracks, each securing broad bipartisan support in recent votes. Despite this consensus on the need for energy reform, lawmakers are proceeding deliberately. During an April 8 hearing, legislators opted against fast-tracking one of the completing bills, House Bill 15, with Senate committee leaders canceling a follow-up session originally scheduled for later that week. With House members currently immersed in budget deliberations, the energy policy discussions are expected to continue at a measured pace through spring.

When explaining why the Senate has not settled on which bill will be the vehicle for changing the landscape of energy in Ohio, head of the Senate’s Energy Committee, Sen. Brian Chevez, R-Marietta offered "[w]e haven't figured that out yet. The House is focused on the budget right now. I think we'll pick one and we'll just go with it and we'll blend them together and hopefully come up with a really solid bill."

Despite agreement on broad principles, significant differences remain. The House bill includes additional provisions requiring quarterly "heat maps" of energy capacity and oversight of transmission projects by the state power siting board. Meanwhile, some stakeholders continue pushing for modifications, with utilities asking for a "glide path" off coal plant subsidies and permission to provide on-site power for large customers like data centers. Regardless of which path Ohio lawmakers decide on, stakeholders should be prepared for imminent changes in Ohio’s energy landscape. --- Hikmat N. Al-Chamic

Utilities, State Regulators Urge FERC to Approve MISO’s Fast-Track Interconnection Plan

“However, independent power producers, former Federal Energy Regulatory Commission members and others said it favors incumbent utilities and should be rejected.”

Why this is important: Utilities, state regulators, and data center companies are urging the Federal Energy Regulatory Commission (FERC) to approve the Midcontinent Independent System Operator's (MISO) fast-track interconnection proposal. MISO, which operates as the regional transmission organization (RTO) for the central United States, is proposing an Expedited Resource Addition Study (ERAS) that would study ERAS projects outside its standard interconnection process serially, each quarter and grant an interconnection agreement within 90 days, as long as the fast-track review project has a commercial operation date within three years of filing an application.

MISO's ERAS proposal is meant to address falling reserve margins coupled with prolonged interconnection reviews that delay bringing power supplies online. While many entities, including state regulators within MISO, support the proposal, a number of other groups, including independent power producers, former FERC members, and environmental groups, oppose the proposal as providing an opportunity for arbitrary and unduly discriminatory outcomes for certain applicants in favor of incumbent utilities. While there is a clear need for additional generation resources, it is unclear what the best path forward is for approving such resources expeditiously and fairly, as well as what, if any, negative effects accelerated programs will have on electric rates for consumers. --- Steven W. Lee

Florida is Now a Solar Superpower. Here’s How It Happened.

“The Sunshine State built more large-scale solar than California last year and was again No. 2 for residential, despite state leadership opposed to climate action.”

Why this is important: Last year, for the first time, Florida outpaced California in its utility-based solar capacity. The state was second to Texas in large-scale solar projects and remained at the top of residential solar. Florida remains a solid No. 2 behind California for the most rooftop panels installed through 2024. These facts are both surprising (Florida’s governor pushed and ultimately signed bills targeting climate change and clean energy) and unsurprising (Florida is, well, the Sunshine State).

Florida's rapid expansion in solar energy, surpassing California in new utility-scale solar capacity in 2024, indicates a shift towards energy independence and economic growth. The state's favorable permitting policies and abundant sunshine have facilitated this growth, making solar energy more accessible and cost-effective for residents and utilities alike. Despite the state's political stance on climate change, the increase in solar energy adoption enhances Florida's resilience to extreme weather events. With 34 billion-dollar weather disasters occurring in the past five years, reliable and decentralized energy sources like solar power are crucial for maintaining power during and after such events. The widespread public support for solar initiatives, including net metering, reflects a bipartisan consensus on the benefits of renewable energy. This public backing has influenced policy decisions, such as Governor DeSantis's veto of a bill that would have ended net metering, demonstrating the power of public opinion in shaping energy policy. --- Kevin L. Carr

Clean Energy's Share of World's Electricity Reaches 40%, Report Says

“But carbon dioxide emissions, which warm the planet, have risen to an all time high, the report says, with hot weather pushing up the overall demand for power.”

Why this is important: In 2024, 40 percent of the world's energy was generated without the burning of fossil fuels. However, the carbon dioxide emissions that warm the planet have risen to an all-time high. The all-time high of carbon dioxide emissions can be attributed to the demand for more power due to the hot weather. Power demand in 2025 is unlikely to see a similar surge as in the previous year. However, the European Copernicus Climate Service reported that this March was the second hottest on record, which continues the streak of record-breaking, or near-record-breaking, temperatures.

Despite the steady growth of clean energy, global carbon dioxide emissions have yet to decline. As long as global electricity demand continues to rise, significant reductions in emissions will remain out of reach. Solar energy is once again the fastest-growing source of clean energy, due to its relatively low cost and ease of installation. However, despite this rapid growth, solar power still contributes only about 7 percent to the global energy supply. In comparison, wind energy accounts for just over 8 percent, hydroelectric power represents approximately 14 percent, and nuclear energy contributes around 9 percent. The report from the Ember think tank says this is the first time since the 1940s that clean energy has accounted for more than 40 percent of global electricity generation. The demand for electricity was significantly lower in the 1940s than it is now, and these numbers highlight that global energy demand continues to outpace clean energy expansion.

The continued rise in global carbon dioxide emissions, despite the growth of clean energy, carries significant implications. The disparity between growing demand and insufficient reduction of emissions could prompt new regulations in the energy sector. In the U.S., the Trump administration emphasized the importance of coal while expressing opposition to other alternative energy sources. Clean energy in the long term is a sector where there will be continued growth and demand.

These trends emphasize the importance of accelerating the global transition to cleaner energy sources. While progress has been made, the current pace of renewable energy adoption is not sufficient to offset rising electricity demand and reduce emissions in an impactful way. Achieving climate goals will require not only continued investment in clean energy power but also strong policy support, innovation, and a shift in political priorities. Without decisive action, the gap between clean energy growth and global energy demand will continue to widen, placing climate targets increasingly out of reach. --- Nicholas A. Muto

China's Rising Dominance in Global Vehicle Innovation

“By early 2025, new energy vehicles, including battery electric and plug-in hybrid vehicles, make up nearly half of all passenger vehicle sales in the country.”

Why this is important: In the face of a brewing tariff standoff between America's tariff agenda and China's response, China's leadership in electric vehicle production stands poised to fundamentally alter global automotive power dynamics, potentially leaving western manufacturers struggling to compete in what many analysts consider the most transformative period for the industry since its inception.

In response to years of strategic government planning, China has rapidly transformed its automotive sector. By early 2025, new energy vehicles will have captured nearly half of all passenger vehicle sales in China. This growth is fueled by strong government policies, strategic subsidies, and investments in infrastructure, alongside ambitious electrification goals in major cities.

While the U.S. has invested feverishly in recent years to create a domestic supply chain for EVs, with more than $130 billion committed to reduce dependence on foreign countries, the U.S. still struggles to close the gap for dominance in the field due to issues in mining and refining processes that are critical to EV production. With a mounting trade war with the U.S., China is strategically leveraging its control of critical minerals and refining technology to potentially disrupt American supply chains. Beijing has already tightened export controls on rare earth minerals and magnets essential for electric motors, as well as graphite, a crucial material for battery anodes. Many other vital battery materials, including lithium, cobalt, and nickel, are also mined and refined in China or by companies under Chinese influence.

The transformation has reshaped the global automotive industry, with Chinese domestic companies like BYD, NIO, XPeng, and Geely driving innovation, particularly in battery technology and autonomous driving. BYD has gained 1,180 percent over the last 10 years, placing it second only to Tesla among automakers in terms of returns. Meanwhile, international players such as Tesla (closed at $221.86 down 4.9 percent) and Volkswagen continue to invest significantly, recognizing China's prominence in the EV landscape. --- Hikmat N. Al-Chami

Electric Vehicles may Worsen CO₂ Emissions Unless Powered by Renewables: Study

“This is according to a study by researchers from the University of Auckland and Xiamen University in China, published in the journal Energy.”

Why this is important: Electric vehicles will likely increase carbon dioxide emissions unless they are charged using renewable energy. Most countries still use fossil fuels for much of their electricity generation, meaning EVs are still net emitters of CO2, and may generate more CO2 indirectly than do efficient modern internal combustion engines (ICEs). And this analysis doesn’t even take into account the greater use of fossil fuels to mine and process the minerals needed for EV batteries, which further skews the CO2 analysis in favor of ICEs.

--- David L. Yaussy

Startups are Preparing for the Launch of Space-Based Solar Power

“In recent years, solar champions have focused on incremental progress, breaking down technical hurdles to make the concept more feasible instead of racing to establish space solar farms.”

Why this is important: There is renewed interest in developing solar farms in space, both by private companies and the U.S. military. The advantage of space solar is it is above all weather and has a constant supply of power from the sun. Currently, both military and private companies are working on systems to transmit space-based solar power to the Earth and developing the new type of solar panels that would be needed to operate in space. NASA has been using solar power to run systems like the space station for many years. The key here will be scaling up the size of any solar farm to allow the power to be transported to the Earth for use. The U.S. military believes it could use solar power to provide power to remote areas of operation around the globe where there are weak electrical sources. Plans exist for some initial testing of space-based solar within the next few years. --- Mark E. Heath

$8.4 Billion: Enormous Cache of Rare Earth Elements Discovered in America

“Coal ash in the U.S. holds substantial rare earth elements, potentially reducing dependence on imports, with ongoing research and pilot projects working to make extraction economically viable.”

Why this is important: At a time when the international tariff controversy puts the supply of rare earth minerals at risk, promising research at the University of Texas has emerged that could convert vast accumulations of coal ash into critical rare earth elements. In particular, ash from Appalachian Basin coal contains the highest concentration of rare earth minerals. When combined with the ongoing work by the West Virginia Water Research Institute at West Virginia University to commercialize the conversion of acid mine drainage into rare earth elements, these efforts could generate a future source of employment for Appalachian communities that are suffering from the downturn in the coal mining industry. --- William M. Herlihy

● EIA Energy Statistics

Here is a round-up of the latest statistics concerning the energy industry.

ELECTRICITY

Electric Power Monthly

PETROLEUM

This Week in Petroleum

Weekly Petroleum Status Report

NATURAL GAS

Short-Term Energy Outlook - Natural Gas

Natural Gas Weekly Update

Natural Gas Futures Prices

COAL

Short-Term Energy Outlook - Coal

Coal Markets

Weekly Coal Production

RENEWABLES

Short-Term Energy Outlook

Monthly Biodiesel Production Report

Monthly Densified Biomass Fuel Report

Send Print Report

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.