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As utility shutoffs soar in Minnesota, Xcel Energy agrees to consumer protections and racial disparities study

An alley scene with garages and a multiple power lines feeding to houses.

Amid a surge in utility shutoffs, and in the face of a groundbreaking study finding racial disparities in those outcomes, Minnesota’s largest utility is taking a closer look at the issue.

In a November agreement with consumer groups and the state’s Public Utilities Commission, Xcel Energy has outlined a series of steps to provide more information to customers and make it easier for them to restore service.

Xcel also agreed to hire an outside consultant to conduct a one-year study of disparity issues related to disconnections and outages and, separately, do its own analysis of outages. The move came in response to a University of Minnesota study released earlier this year that found that people of color were more likely than White households to have their service disconnected for falling behind on bills, even when controlling for income and home ownership status. 

The agreement falls short of a demand from the Minnesota Attorney General’s Office for Xcel to institute a temporary moratorium on shutoffs until racial disparities are addressed, based on a recommendation from Fresh Energy and a coalition formed by Cooperative Energy Futures, Environmental Law & Policy Center, Sierra Club, and Vote Solar. 

Erica McConnell, staff attorney for the Environmental Law & Policy Center, represented the clean energy organizations advocating for grid equity. She supported the agreement but believes it will do little to help reduce disparities in shutoffs. 

“These are very important improvements that don’t really address — and the commission didn’t discuss — the disparate impacts and the racial disparity (of disconnections) and how to address that specifically,” she said.

A temporary moratorium on disconnections would have allowed for time to study disparities and find ways to address them.  

“The commission didn’t talk about that,” McConnell said. “They didn’t address it at all, so that was disappointing. I understand it’s uncomfortable and it’s a tough issue, but it’s disappointing they shied away taking it head on.”

Shutoffs soaring

Beyond the challenge of disparities, Xcel’s number of service disconnections has skyrocketed. More than 45,000 Xcel customers saw their power shut off this year, a number that has grown significantly over the last two decades. 

Xcel agreed to many proposals from the Citizens Utility Board of Minnesota, the Energy CENTS Coalition, clean energy organizations and the Public Utilities Commission to create more consumer protection against shutoffs.

Xcel Energy’s involuntary disconnection notices began rising significantly in 2023 before skyrocketing in 2024, when shutoffs doubled the prior year’s total for May through July. Despite Minnesota’s cold weather protection rules that limit disconnections during the winter through April 30, shutoffs even grew during the winter months.

A line chart showing utility disconnections by month, showing between 2,000-6,000 typically in May for recent years but a spike to nearly 10,000 in 2024.
This chart, based on Xcel Energy data and submitted by consumer and clean energy groups to the Minnesota Public Utilities Commission, shows a sharp increase in utility shutoffs in 2023 and 2024, which the groups attribute to the utility’s new ability to use smart meters to disconnect customers remotely. Credit: Minnesota PUC Docket E002/M-24-27

Clean energy and consumer organizations point to Xcel’s ability to remotely disconnect customers who have smart meters as a major reason for the shutoffs, along with inflation, escalating rate increases and challenging repayment requirements. Xcel had demanded customers pay 50% of what they owe to reconnect, which may have violated Minnesota law, according to the Citizens Utility Board. 

Xcel’s pact with the Citizens Utility Board and Energy CENTS “is going to make payment agreements more affordable and hopefully help households that are behind on their bills avoid getting shut off and get caught back up,” said Annie Levenson-Falk, executive director of the Citizens Utility Board of Minnesota.

The utility board and Energy CENTS Coalition forged the agreement with Xcel under the purview of the Public Utilities Commission, which will issue a final order later. The agreement requires the following:

  • Customers will pay 10% of what they owe to have the power turned back on, instead of 50%.
  • The amount due will have to be at least $180 before Xcel can send a disconnect notice.
  • Xcel cannot shut off power until a customer reaches a $300 past due balance. Xcel’s data from this year showed disconnected customers were $441 in arrears on average in October and much higher in other months.
  • The utility must wait at least 10 days after a shutoff notice has been sent to disconnect, up from five days.
  • Xcel must post clear disconnection and payment policies on its website, along with information about customers’ right to develop an affordable repayment plan. Any changes Xcel makes to shutoff policies and repayments have to be reported to the commission, and it must collect data on repayments and customer agreements.
  • A variance allowing remote disconnections without field visits from Xcel remains, but the utility must contact customers via voicemail and use at least one other form of electronic communication.

Xcel spokesperson Kevin Coss said the utility believes “this agreement is a great step toward reducing disconnections for some of our customers who continue to struggle economically.”

Options for customers

George Shardlow, Energy CENTS executive director, said he thought a clearer explanation of the disconnection process on Xcel’s website brings a transparency that had been lacking.

“I don’t think the average person even knows that they have a right to negotiate when they’re struggling to pay their bills,” he said. “It’s all sort of opaque. We’re excited to see better documentation of people’s rights on Xcel’s website.”

Minnesota law says utility customers are “entitled” to a payment plan they can afford, Shardlow said. Customers who cannot afford the 10% down payment can still negotiate for a settlement that fits their budget, he added.

Shutoffs have been growing. This year Xcel sent disconnection notices to 51,000 customers in January and 71,000 in July. But not all notices result in shutoffs. The highest month for disconnections, May, saw more than 10,000 shutoffs. By August, slightly more than 8,400 customers had been disconnected.

Coss said Xcel works with customers to avoid disconnection by starting a nine-week process of contacting them through multiple channels to “point them to available options for energy assistance — both through the federal Low Income Home Energy Assistance Program and our own affordability programs — and offer flexible payment plans tailored to their circumstances.”

Minnesota also has cold weather protections that greatly reduce utilities’ ability to disconnect customers in winter months. But people who fail to pay their bills in winter see their balances grow, leading to higher disconnections in summer when they fail to catch up.

Xcel agreed to monitor progress and collect more data on racial disparities involving customers involuntarily shut off. The utility has already hired a third party evaluator, as the agreement requires, to study its shutoff policies and hold stakeholder engagement meetings during the year-long process.

Coss said disparities result in inequities throughout society and Xcel has been doing its part to address them. The utility has worked with the study’s authors and advocacy groups to identify actions to reduce disparities, he said.   

Earlier this year, the commission also approved a proposal by Xcel for a pilot program that will provide bill credits to select census tracts with high levels of disconnections. Coss said Xcel will provide $500 bill credits to customers in low-income census areas who have a greater than $2,000 past-due balance, using money available from a quality of service program.

Minnesota Public Utilities Commissioner Joe Sullivan said he believed the agreement negotiated among the nonprofits and utility would reduce the financial strain on households facing disconnections and assist Xcel in recovering debt.

“I thought that in that docket people came together and were constructive,” he said. “I feel like I’m hopeful that the order will make some progress.”

PUC Chair Katie Sieben said the commission is “always looking at affordability, and especially as it pertains to low-income customers, I think we have a great track record on working with stakeholders and with utilities to provide robust low-income assistance to customers.”

She mentioned the commission’s role in approving an Xcel pilot to decrease payments for low-income, low-usage customers and a September decision that used a penalty for the utility’s service quality underperformance to provide bill credits to around 1,000 customers with the oldest outstanding balances in low-income census tracts.

‘Still more work to do’

The agreement does not solve the problem of low-income customers struggling to pay utility bills. Shardlow said Energy CENTS and the Citizens Utility Board lobbied the state legislature to allow households to apply for energy assistance funding the entire year instead of the current policy of having a deadline of May 31. Only 20% of eligible Minnesota households participate in the program, he said.

Levenson-Falk wants Xcel to consider eliminating the 1.5% late fee it charges customers on their balance, or consider donating the money to affordability programs.

The Citizens Utility Board also wants Xcel to develop a plan to reconnect customers quickly on days of high heat or poor air quality. Coss said Xcel will evaluate reconnecting customers disconnected during days of air quality alerts.

Levenson-Falk said the agreement at least makes progress. “I think we resolved everything that we had discussed with Xcel but that’s not to say that we think this is going to solve the problem, because, of course, there are still going to be continuing shutoffs, and those are still very concerning,” she said. “There’s still more work to do.”

This story was updated to include a statement from Minnesota Public Utilities Commission Chair Katie Sieben.

Fresh Energy staff, board members and funders do not have access to or oversight of the Energy News Network’s editorial process. More about our relationship with Fresh Energy can be found in our code of ethics.

As utility shutoffs soar in Minnesota, Xcel Energy agrees to consumer protections and racial disparities study is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Massive data centers consuming large amounts of energy have eyes on South Dakota

A winter scene with large wind turbines on a snowy, flat prairie silhouetted against a gray sky.

This article was originally posted by South Dakota Searchlight.

Massive data centers used for cloud computing and artificial intelligence are consuming enormous amounts of energy, and developers are eyeing South Dakota as a potential location, regulators say.

These “hyperscale data centers,” or “hyperscalers,” are designed to handle immense computing demands and are often operated by tech giants. The centers are characterized by their large size — often tens of thousands of square feet — and thousands of computer servers that require significant energy to operate.

Nick Phillips with Applied Digital in Texas, a developer of the centers, highlighted South Dakota’s appeal: a cold climate that cuts down on cooling a room full of hot servers, and abundant wind energy that’s considered one of the most cost-effective renewable energy sources, which can help keep operating costs down.

State regulators are not aware of any hyperscale data centers currently operating in South Dakota. 

“There isn’t a requirement to report hyperscale data centers to the commission, so we don’t have a formal method to track that information,” said Leah Mohr with the Public Utilities Commission. 

Commissioner Kristie Fiegen noted that the state’s largest proposed data center is a 50-megawatt facility in Leola.

“We don’t know what’s coming,” she said. “But the utilities are getting calls every week from people trying to see if they have the megawatts available.”

The commission recently hosted a meeting in Pierre with representatives from regional utilities, regional power grid associations and data centers. The goal was to understand the emerging demands and facilitate an information exchange.

Bob Sahr, a former public utilities commissioner and current CEO of East River Electric Cooperative in Madison, emphasized the scale of energy needed.

“We’re talking loads that eclipse some of the largest cities in South Dakota,” he said.

A single data center campus can require anywhere from 300 to 500 megawatts of electricity to operate. One megawatt can power hundreds of homes. By one estimate, there are over 1,000 hyperscalers worldwide, with the U.S. hosting just over half of them.

Ryan Long, president of Xcel Energy, headquartered in Minneapolis, illustrated the extreme nature of the demand.

“We now have, I would say, north of seven gigawatts of requests across the Xcel Energy footprint for data centers to locate in one of our eight states,” he said. “And I’ll be very frank that there’s no way that we’re going to be able to serve all of that in a reasonable amount of time.”

Protecting existing customers from potential costs or energy shortages is another shared concern. Utility representatives emphasized the need for coal and natural gas to maintain a reliable “base load” when renewable sources like wind and solar are unavailable. Arick Sears of Iowa-based MidAmerican Energy underscored the point, noting that costs for each data center should depend on how much energy it consumes. 

“We need to ensure that large-scale energy users are paying their fair share,” he said.

Utilities also flagged the risk of “stranded costs,” referring to a data center ceasing operations, leaving a utility with added infrastructure to meet a demand that no longer exists. They said financial safeguards will need to be written into power agreements with hyperscalers.

Speed of deployment is another pressing issue. Representatives from Montana-Dakota Utilities, headquartered in North Dakota, and NorthWestern Energy, headquartered in Sioux Falls, noted that some facilities expect to be operational within months of making a deal, straining infrastructure, planning and resources.

Grid managers Brian Tulloh of Indiana-based Midcontinent Independent System Operator and Lanny Nickell of Arkansas-based Southwest Power Pool echoed those concerns. They warned that data center growth is outpacing the grid’s ability to meet demand and cautioned against decommissioning coal power plants too quickly. Setting aside how much it would cost to produce the required energy, Tulloh estimated that MISO needs $30 billion in electric transmission infrastructure to support the demand from hyperscalers.

“The grid wasn’t designed for that,” Public Utilities Commissioner Chris Nelson told South Dakota Searchlight after the meeting.

Nelson was glad to hear the data centers will include backup generators, similar to hospitals, for power outages or when homes need prioritization. He said some even aim to have huge batteries to power the plant until the generators get going. They would consume massive amounts of diesel and natural gas until the outage is over. 

Nelson said all of this makes modern nuclear energy facilities more attractive. He said few alternative “base load” options remain, and the public has little appetite for ramping up coal power. 

NorthWestern Energy is exploring the possibility of constructing a small nuclear power plant in South Dakota, with an estimated cost of $1.2 billion to $1.6 billion for a 320-megawatt facility. The plant would be the first in the state since a test facility near Sioux Falls in the 1960s. 

The company is conducting a study, partially funded by the Department of Energy. Details about the study and potential plant sites remain confidential. 

Additionally, South Dakota’s Legislature has shown interest in nuclear energy, passing a resolution for further study on the topic that led to the publication of an issue memorandum by the Legislative Research Council.

Massive data centers consuming large amounts of energy have eyes on South Dakota is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

North Carolina town sues Duke Energy for climate ‘deception’

A block of older commercial buildings.

This article was originally published by Floodlight.

A small town in North Carolina has taken a bold step, filing the first climate “deception” lawsuit against an electric utility in the United States.

In a civil lawsuit, the Town Council of Carrboro accuses Duke Energy, one of the largest power companies in the United States, of orchestrating a decades-long campaign of denialism and cover up over the dangers of fossil fuel emissions. The lawsuit claims Duke’s actions stalled the transition to clean energy and exacerbated the climate crisis.

Over the past decade, similar suits have been filed by states and communities against large oil companies and — in at least one instance — a gas utility. But Carrboro, N.C., is the first municipality to ever file such a suit against an electric utility.

“We’re a very bold group,” Carrboro Mayor Barbara Foushee told Floodlight. “And we know how urgent this climate crisis is.”

Duke Energy said in a statement, “We are in the process of reviewing the complaint. Duke Energy is committed to its customers and communities and will continue working with policymakers and regulators to deliver reliable and increasingly clean energy while keeping rates as low as possible.”

The suit, filed in Orange County, North Carolina, accuses Duke Energy of intentionally spreading false information about the negative effects of fossil fuels for decades, despite knowing since the late 1960s about planet-warming properties of carbon dioxide emissions. It claims the power company funded trade organizations and climate skeptic scientists who created doubts about the greenhouse effect and obstructed policy and public action on climate change.

“Duke misled the public concerning the causes and consequences of climate change and thereby materially slowed the transition away from fossil fuels and toward renewable energy. Duke’s deception campaign served to protect its fossil fuel-based business model.” the lawsuit reads.

It accuses the power company, which in 2019 was the third largest emitter of C02 in the United States, of falsely marketing itself as a leader in clean energy while continuing to rely heavily on fossil fuels. 

Between 2005 and 2023, the company reported reducing its CO2 emissions from electricity generation by 44%. But in 2023, at least 45% of the electricity Duke produced was still generated by burning coal or methane gas. 

“(Duke) was one of the ringleaders behind deceiving the public and municipalities and governments about the causes and consequences of manmade climate change,” said Raleigh attorney Matthew Quinn, who is representing the town.

Carrboro is a town of about 20,000 with an annual budget of $81 million, Foushee said. Quinn, the attorney, estimates the town will incur some $60 million in costs in adapting to climate change impacts, including repairs to roads, upgrades to stormwater systems and increased heating and cooling costs.

At a press conference Wednesday, Quinn explained that expert analysts had arrived at that number based on the amount and cost of climate adaptation that Carrboro would have undertaken had it not been for Duke’s alleged deception.

“There’s a major gulf between where we should be at and where we are right now,” Quinn said at the press conference.

“Really, what this case is about is that Carrboro has been a victim of the climate deception campaign by Duke Energy, (and) as a result of Duke’s conduct, Carrboro has suffered a lot of damages and injustice,” Quinn said in an interview.

Added Danny Nowell, Carrboro Mayor pro tem: “We have paid for it. We have paid for excess road repairs. We have faced the effects of stormwater, and we will continue to pay for other expenses as we uncover them. It’s time for Carrboro to be repaid.”

Quinn’s fees are being paid by NC Warn, a climate nonprofit, Foushee said.

“People that run local governments and others and people that run corporations, they all better get heavily serious about the climate crisis,” said Jim Warren, executive director of NC Warn. “It’s already harming so many across this state.”

Bob Jarvis, a law professor at Nova Southeastern University, called such lawsuits “cute.” 

“And I use that term very, you know, intentionally. These lawsuits are cute in the sense that they’re trying to shame companies … into doing better,” said Jarvis, adding that they are rarely successful. “Companies have duties to their shareholders to maximize profits. And so what these lawsuits are really saying is that companies should be punished for maximizing profit.”

“It’s interesting with this as a case directly against a utility,” said Korey Silverman-Roati, a senior fellow at the Sabin Center for Climate Change Law. “It’s a shift in perspective from companies just producing fossil fuels to those burning it.”

Although this is the first climate deception lawsuit ever filed against an electric utility, it is not the first time that electric utilities have found themselves in legal trouble for the climate warming pollution their power plants spew as they burn fossil fuels to generate electricity. 

In 2004, electric companies faced federal litigation brought by eight U.S. states, New York City and several land trusts seeking to cap the companies’ CO2 emissions. The U.S. Supreme Court unanimously ruled against the plaintiffs. 

Floodlight is a nonprofit newsroom that investigates the powerful interests stalling climate action.

North Carolina town sues Duke Energy for climate ‘deception’ is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Duke Energy data access rules poised to help North Carolina communities meet climate goals

A small open-front store with a light-up sign reading "Charlotte" on top inside a glass atrium concourse at the Charlotte airport.

Charlotte, North Carolina, may soon get access to a new tool to deploy in its push toward 100% clean power: data.

The Tar Heel state’s largest city aims to power all government operations with carbon-free electricity by the end of the decade, including the city-owned Charlotte-Douglas International Airport, one of the busiest in the world. 

But the hub is a big question mark for the city’s climate target. Officials don’t actually know how much energy it uses — or how much renewable energy they need to offset it — because the utility bills for the five-terminal airport are paid by dozens of individual customers, from Cinnabon to Jamba Juice to airline club lounges.

Now, after a decade of urging by Charlotte and others, Duke Energy has a proposal to change that: an eight-page plan for improved data access that has sign-off from the North Carolina Sustainable Energy Association; Public Staff, the state-sanctioned customer advocate; and Dominion Energy, which serves the northeast corner of the state.

Filed last month with regulators for approval, Duke’s proposed rules could have wide application, said Ethan Blumenthal, regulatory counsel for the North Carolina Sustainable Energy Association. 

“For municipalities applying for federal grants, large customers pursuing energy efficiency, and homeowners and solar companies that are trying to right-size solar installations,” Blumenthal said, “this access to data is essential.”

Avoiding a ‘laborious process’

The Charlotte airport is a prime example of one hurdle facing local communities with climate goals. Today, getting total energy usage data for government-owned buildings with multiple meters means reaching out to individual tenants to get permission to access their accounts.  

“It would be a very laborious process to do that at the airport and anywhere else we have tenants,” said Aaron Tauber, Charlotte’s sustainability analyst.

The problem extends to private building owners who aim to reduce their carbon footprints or improve efficiency but don’t have insight into their renters’ energy consumption. Honeywell, for instance, is a partner in the city’s “Power Down the Crown” initiative, whereby building managers look to reduce energy use by optimizing efficiency. 

“They don’t own all of the data,” Tauber said. “They have tenants in their properties. So, they don’t have visibility to the entire building’s energy use.” 

The new rule will allow a large user, from Honeywell to Charlotte, to access aggregated data for a large building with multiple tenants by request to Duke, so long as at least 15 individual accounts are involved, and none consumes more than 15% of the building’s energy use. 

“Being a larger city, we do have a lot of large buildings with multiple tenants,” said Tauber. “I’m just really excited for these building owners to really — for the first time — gain an understanding of how their buildings are using energy.”

That understanding, he said, is critical for commercial properties to access a new law that allows them to borrow public money for energy efficiency upgrades and pay it back on their property tax bills.  

“Being able to unlock a financing mechanism based on this data will really go a long way for the city to be able to meet our strategic energy action goal of being a low-carbon community,” said Tauber.

Not just for big buildings

The data access rule also applies to a census block, zip code, or other area with at least 15 accounts, which will help local governments meet community-wide climate goals. 

“You can use the aggregated data to make good decisions for program design, and where you might want to target,” said Ann Livingston, senior executive and director of programs with the Southeast Sustainability Directors Network. “You can assess: is this particular block or neighborhood really using a lot more energy per house per square foot than others?” 

Durham County, for instance, together with neighboring Granville and Orange counties, has a $1.5 million federal grant to help low-income homeowners cut their energy use through weatherization and other upgrades.  

“We want to focus in areas where there’s a higher energy use or higher energy burden,” said Tobin Freid, the county’s sustainability manager. “We’d like information at a more granular level than just the county.”

If the new Duke rule is approved, it will also help county officials better tailor the program to individual households and assess its impacts. The proposal would ease the approval process for allowing third-party access to data and ensure that at least two years of prior energy use is included.

“For every home that we work on, we would need historic data to see: what was your energy use before?” Freid said.

Both the aggregated data and third-party access provisions will also be critical for federal programs like Solar for All, aimed at deploying rooftop solar on low-income households. 

“Often, those federal funding opportunities require you to assess and report on energy impact,” said Livingston. “Solar for All will be a very clear example of this, where you need to report energy savings for individual participants.”

Growing interest in local impact

Apart from the sustainability goals, government officials also have a commitment to manage public dollars efficiently, Livingston noted. That’s especially pertinent for large energy users like Durham County, who may pay a higher “demand charge” for a single 30-minute spike in energy use. Large customers with net-metered solar power also pay more during times of peak demand. 

The proposed rules will help solve these challenges by allowing third parties access to machine-readable, easily analyzed data for customers of all sizes. The format would essentially meet national “Green Button” standards, one familiar to the many companies around the country dedicated to managing building energy performance.

The Green Button initiative, a project of the U.S. Department of Energy that originated in Canada, has been around for over a decade – about as long as the Sustainable Energy Association has been advocating for improved customer data access, along with counties like Durham.

But the issue seems to have gained new steam in recent months, as local governments look to take advantage of new federal grants and laws aimed at reducing climate pollution.

What’s more, Blumenthal said, Duke has pledged to implement the rules within 18 months of their approval and help expedite any data requests in the interim.

“There is a commitment to doing everything they can, essentially, to provide data for federal funding purposes up until [the proposal] is fully implemented,” Blumenthal said. “A commitment to try to bridge the gap.”

Asked what prompted the agreement with Blumenthal’s group and others after all this time, Duke spokesperson Logan Stewart said over email: 

“A lot has changed in the last decade from a technology, cybersecurity, and customer engagement perspective that made this stipulation possible. Duke Energy is always looking for ways to collaborate with stakeholders to achieve outcomes that benefit customers.”

Duke Energy data access rules poised to help North Carolina communities meet climate goals is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Xcel Energy says data center growth won’t get in the way of 2040 clean energy target in Minnesota

A birds-eye view of dozens of smokestacks release emissions over a snowy landscape.

A top executive with Minnesota’s largest utility says data center growth will not prevent it from meeting the state’s 100% clean electricity law, but it may extend the life of natural gas power plants into the next decade.

“As we take all of that coal off the system — even if you didn’t add data centers into the mix — I think we may have been looking to extend some gas (contracts) on our system to get us through a portion of the 2030s,” said Ryan Long, president of Xcel Energy’s division serving Minnesota and the Dakotas. “Adding data centers could increase the likelihood of that, to be perfectly honest.”

Long made the comments at a Minnesota Public Utilities Commission conference this fall exploring the potential impact of data centers on the state’s 2040 clean electricity mandate.

The expansion of power-hungry data centers, driven by artificial intelligence, has caused anxiety across the country among utility planners and regulators. The trend is moving the goalposts for states’ clean electricity targets and raising questions about whether clean energy capacity can keep up with demand as society also tries to electrify transportation and building heat.

Minnesota PUC commissioner Joe Sullivan organized last month’s conference in response to multiple new data centers projects, including a $700 million facility by Facebook’s parent company Meta that’s under construction in suburban Rosemount. Microsoft and Amazon have each acquired property near a retiring Xcel coal plant in central Minnesota. 

“We need to ensure that our system is able to serve these companies if they come,” Sullivan said, “and that it can serve them with clean resources consistent with state law.” 

Alongside concerns about whether clean energy can keep up with new electricity demand, there’s also an emerging view that data centers — if properly regulated — could become grid assets that help accelerate the transition to carbon-free power. Several stakeholders at the Oct. 31 event shared that view, including Xcel’s regional president.

A 100-megawatt data center could generate as much as $64 million in annual revenue for Xcel, enough to help temper rate increases or cover the cost of other projects on the system, Long said. He said the company wants to attract 1.3 gigawatts worth of data centers to its territory by 2032, and it thinks it can absorb all of that demand without harming progress toward its 2040 clean energy requirement.

Long said data center expansion will not change the company’s plans to close all of its remaining coal-fired power plants by 2040, but it may cause them to try to keep gas plans operating longer. Ultimately, meeting the needs of data centers will require more renewable generation, battery storage, and grid-enhancing technology, but rising costs and supply chain issues have slowed deployment of those solutions.

Other utilities echoed that optimism. Julie Pierce, Minnesota Power’s vice president for strategy and planning said the company has experience serving large customers such as mines in northeastern Minnesota and would be ready to serve data centers. Great River Energy’s resource planning director Zachary Ruzycki said the generation and transmission cooperative “has a lot of arrows in its quiver” to accommodate data centers.

Ruzycki noted, too, that much of the interest it has received from data center developers is because of the state’s commitment to clean energy. Many large data center operators have made corporate commitments to power them on 100% carbon-free electricity, whether from renewables or nuclear power.

Pete Wyckoff, deputy commissioner for energy at the Minnesota Department of Commerce, expressed doubts about the ability to meet unchecked demand from data centers. Even with the state’s recent permitting reforms, utilities are unlikely to be able to deliver “power of any sort — much less clean power — in the size and timeframes that data centers are likely to request.”

He sees hydrogen, long-duration batteries, carbon capture, and advanced nuclear among the solutions that will eventually be needed, but in the short-term the grid could serve more data centers with investments in transmission upgrades, virtual power plants, and other demand response programs.

“These solutions can be deployed faster and cheaper than building all new transmission and large clean energy facilities, though we’ll need those, too,” Wyckoff said.

Aaron Tinjum, director of energy policy and regulatory affairs for the Data Center Coalition, said data centers provide the computing power for things like smart meters, demand response, and other grid technologies. The national trade group represents the country’s largest technology and data center companies.

“We can’t simply view data centers as a significant consumer of energy if they’re all helping us become more efficient, and helping us save on our utility bills,” Tinjum said. 

He also pointed to data centers’ role in driving clean energy development. A recent report from S&P Global Commodity Insights found that data centers account for half of all U.S. corporate clean energy procurement. 

The true impact of data centers on emissions and the grid is complicated, though. Meta, which participated in the recent Minnesota conference, says it matches all of its annual electricity use with renewable energy, but environmental groups say there is evidence that its data centers are increasing fossil fuel use and emissions in the local markets where they are built.

Amelia Vohs, climate program director with the Minnesota Center for Environmental Advocacy, raised concerns at the conference about whether data center growth will make it harder to electrify transportation and heating. She pointed to neighboring Wisconsin, where utilities are proposing to build new gas plants to power data centers.

“This commission and the stakeholders here today have all done a ton of work and made great progress in decarbonizing the electric sector in our state,” Vohs said. “I worry about possibly rolling that back if we all of a sudden have a large load that needs to be served with fossil fuels, or [require] a fossil fuel backup.” 

The Minnesota Attorney General’s Office argued that state regulators need to scrutinize data center deals to make sure developers are paying the total cost of their impact on the system, including additional regulatory, operational and maintenance work that might be required on the grid.

In an interview, Sullivan said he was impressed by tech companies’ interest in having data centers in Minnesota because of the 2040 net zero goal, not despite it. They want to buy electricity from Minnesota utilities rather than build their own power systems or locate in neighboring states, he added, and the October meeting left him confident that “we can deal with this.”

Xcel Energy says data center growth won’t get in the way of 2040 clean energy target in Minnesota is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

In North Carolina, conservative clean energy supporters don’t think Trump will follow through on threats

Donald Trump speaks at a lectern in front of an American flag image.

Mark Fleming has a prediction for those terrified about the impact of a second Trump administration on the clean energy transition: “It’s going to work out better than folks think.”

Fleming is head of Conservatives for Clean Energy, a Raleigh-based nonprofit that brings together lobbyists, consultants, and politicians on the right who support clean energy. The group formed a decade ago, not long before Trump’s first term began, and is now active in six Southeast states. On Tuesday, together with the Chambers for Innovation and Clean Energy, it held its biennial luncheon in downtown Raleigh. 

Coming just two weeks after an election most advocates see as a major setback for federal clean energy policy, the Raleigh event was not unlike past affairs, with congenial vibes, a half dozen awards to politicians and businesses, and presentation from leading Republican consultants assessing the political salience of clean energy.

“It was an election about the economy and immigration,” explained Paul Shumaker, one such pollster and a fixture at these gatherings. “Clean energy is never going to be the issue.”

Trump and his hostile, mostly fact-free rants on the campaign trail about wind energy and the climate crisis got little mention during the formal presentations. Side conversations showed conservatives seemed relatively unconcerned about the future president’s tirades and threats.

“Governing is different than campaigning,” Fleming said. 

He and others believe much of Trump’s rhetoric was tossed as red meat to his base of supporters and won’t get meaningful follow-through. On technologies such as offshore wind — which the incoming president frequently lambasts — perhaps the administration and even the man himself can be convinced of its economic benefits, attendees suggested. 

Virginia Gov. Glenn Youngkin, a Republican who supports offshore wind in the commonwealth, “will be at the top of the list of conservative policy makers in terms of encouraging the Trump administration to look at the positives on offshore wind,” Fleming said. “It makes long term economic sense, but there’s going to be some education there.”

Indeed, to help his re-election chances, Trump did flip his stance on offshore drilling four years ago — at least for the Southern Atlantic — after input from Republicans in Southeast states who oppose the practice.

Despite Trump’s vague promise to curtail the Inflation Reduction Act, Fleming believes congressional Republicans will preserve most of Biden’s signature climate law because of its benefits in rural areas.

Nine new projects announced in North Carolina the year after the measure’s passage, from lithium processing to vehicle-charging equipment plants, will spur tens of thousands of jobs and add $10 billion to the state’s GDP, the clean economy group E2 found.

Such data should be fodder for members of Congress like Sen. Thom Tillis, North Carolina’s senior U.S. senator and a Republican, to fight to keep most of the Inflation Reduction Act’s provisions.

“He has been such a thoughtful leader on energy issues,” Fleming said of Tillis. “He’s going to be a key decision maker in the U.S. Senate on these clean energy issues moving forward.” 

‘We won’t agree on everything’ 

Jason Saine, a Lincoln County Republican who served more than a dozen years in the North Carolina House and now works as a lobbyist, was among the luncheon’s awardees. He says Trump’s rhetoric is just part of politics. 

“Good science and good facts will rule the day, but in the meantime, we’ll suffer through a lot of rhetoric,” he said.

Like some of his conservative colleagues who focus on federal policy, Fleming hopes the closely divided Congress will have new reason to enact reforms to the permitting process that will speed approval of clean energy as well as fossil fuel projects.

And though he’s confident that much of the Inflation Reduction Act will survive, Fleming believes Congress will trim it — a “scalpel rather than a sledgehammer” approach. 

Saine agrees. “It can always be recreated in a different format and voted on again,” he said. “What’s dead today is never dead tomorrow.”

One item in the climate law that’s ripe for repeal is the $7,500 tax credit for electric vehicles, Fleming said. That incentive is spurring plenty of economic development in rural areas in the form of EV and battery factories, but it’s perceived as benefiting only urban folk. 

“The administration will want wins,” Fleming insisted. “We won’t agree on everything. But I think we’ll have opportunities to work together to move the economy forward and move the clean energy cause forward in D.C.”

No matter what, most of the luncheon attendees remained focused on incremental reforms in North Carolina — where the power dynamics are largely unchanged after Nov. 5. Trump won the state, but Democrat Josh Stein trounced a scandal-plagued Republican to win the governor’s race. The GOP continues to control a heavily gerrymandered legislature and is just one vote shy of a veto-proof majority in the House. 

Still, as “Trump II” approaches, Fleming acknowledged Conservatives for Clean Energy has an important role to play.

“It’s going to be better than folks think,” he repeated. “But the onus will be on all of us to make it happen. Now, groups like ours are more needed than ever. That thought leadership on these issues will be on the right. It’s not going to be from our friends on the left.”

In North Carolina, conservative clean energy supporters don’t think Trump will follow through on threats is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Ohio program wants to play matchmaker and wedding planner for clean energy collaborations

Solar panels atop a grassy former landfill site with trees in the background

A successful regional collaboration to secure federal Inflation Reduction Act money in northeast Ohio has inspired a new, ongoing effort to help cities, counties, utilities and community groups coordinate on clean energy.

Three Cleveland-area foundations last month announced the launch of Power Up Local, which aims to play both a matchmaker and wedding planner role on large-scale, regional clean energy developments. The initiative plans to help connect potential partners, maximize projects’ community benefits, and facilitate joint funding opportunities such as federal grants, tax incentives, or green bank loans.

“This is really looking for the larger, more ambitious stakeholder projects that have direct stakeholder benefits,” said Daniel Gray, Power Up Local’s executive director. A big emphasis will be on assembling groups who “might not have worked with each other originally or understood where there’s an overlap” between clean energy and other goals.

The initiative could offer a new path for local leaders to advance in a place where state government remains hostile to clean energy. The continued availability of federal funding is in question following former President Donald Trump’s reelection, but Gray and others said they are confident some form of federal support for clean energy will remain during his second term.

The idea for Power Up Local grew out of collaboration among Cuyahoga County, the cities of Cleveland and Painesville, and other organizations on a $129 million grant application under the federal Climate Pollution Reduction Grant program. The application was among those awarded funding in July. It includes money for closing a coal plant and building multiple solar arrays, including on four closed landfills.

Beyond reducing pollution, the project will help lower electricity costs and generate revenue. Some of that will in turn aid in conservation efforts for the West Creek Conservancy, including lakeside access for residents in Lake County. Gray did some work on the project as director of local strategies for the Citizens Utility Board of Ohio, and local philanthropic support also helped in assembling the grant application.

The Cleveland Foundation, George Gund Foundation and the Fund for Our Economic Future are providing initial funding for Power Up Local. Initially, the program’s three full-time employees are being housed under Fund for Our Economic Future, with a goal of spinning it out as an independent nonprofit by 2027. 

The George Gund Foundation also provides funding to the Energy News Network. Like other donors, it has no oversight or input into the editorial process and may not influence stories.

Gray said Power Up Local will help stakeholders think bigger and more broadly about projects. For example, a project to redevelop a former industrial site may be able to help bring in other properties from a land bank or other group, potentially expanding into an economic redevelopment district that might support a microgrid, he suggested.

“We can add efficiency to projects, both financially and timewise,” Gray said.

Power Up Local will be a resource for organizations that want to add clean energy to a project but may not have the time or bandwidth to figure out how to do it. “They don’t necessarily know how to engage the marketplace,” Gray said.

And when it comes to funding, competitive grants will just be part of the story. A range of other credits or incentives can also help bring more clean energy. That raised a question, said Stephen Love, program director for environmental initiatives at the Cleveland Foundation: “What would it look like at scale beyond just the competitive grants to really unlock the whole scale of federal resources?”

While Power Up Local will work on clean energy projects, those projects must still be “net-neutral or revenue-positive” in order to promote economic development, Gray said. “We’re looking to develop as much community benefit as possible.”

Those benefits can come from lower electricity rates for people with high energy burdens, health benefits from lower pollution, job opportunities, conservation, access to parks, redevelopment of properties to attract businesses, and so on.

“This is about economic development. This is about creating economic opportunity in our communities,” said Love. As he sees it, clean energy can help drive that development.

Uncertainties ahead

No one knows what Trump’s presidential victory will mean for federal clean energy funding, but advocates are confident some funding will still be available.

“There are still grants to go after, and will likely still be grants to go after in the future,” Gray said. A repeal of the Inflation Reduction Act and Bipartisan Infrastructure Law would take time, and much of the grant funding has flowed to districts that supported Trump in 2020.

Even if agencies under Trump stopped carrying out the law, “I don’t think the bulk of the IRA direct credits are going to go away,” Gray said. He noted that Rep. Dave Joyce (R-Bainbridge Township) is among 18 members of Congress who wrote to House Speaker Mike Johnson this summer to support continuation of the energy tax credits.

Atlas Public Policy’s Climate Portal Program estimates those tax credits could exceed a quarter of a trillion dollars, with nearly another $250 billion of potential credits under the 2021 Bipartisan Infrastructure Law. Those credits can serve as refunds for nonprofits and local governments, which is how sewage treatment authorities in Columbus and Cincinnati plan to offset big chunks of the costs for biogas plants at two of their wastewater treatment facilities.

Financing opportunities will also be available from green banks, Gray said. Commercial banks also are looking to expand their portfolios for financing clean energy projects as part of corporate sustainability goals, he noted.

Power A Clean Future Ohio has already been working for several years to help its 50 local government members find ways to cut greenhouse gas emissions, based on their individual interests and priorities. Executive Director Joe Flarida said Power Up Local’s work will be a welcome complement to its ongoing work. 

“It just underscores the huge needs we have in the state of Ohio to invest locally and ensure that our local leaders and local governments have all the resources they need to do this work efficiently,” he said.

In Flarida’s view, an anti-climate approach by the incoming Trump administration “is also an anti-jobs approach.” And even if the federal government no longer treats climate change as a key priority, “that doesn’t change the reality that this is an issue we have to address head on,” he said.

Gray encourages local governments and other organizations with ideas for projects to reach out in the coming weeks and months.

“Now is the time to start thinking about what might be possible,” he said.

Ohio program wants to play matchmaker and wedding planner for clean energy collaborations is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

How Trump’s second term could derail the clean energy transition

The Biden administration has enacted the most consequential federal clean energy and climate policy in U.S. history, giving the nation a fighting chance at reducing greenhouse gas emissions fast enough to deal with the climate crisis. Former President Donald Trump, who has won the 2024 presidential election, has pledged to undo that work.

Though Trump’s executive powers will allow him to slow the energy transition in a number of ways, the extent to which he rolls back Biden’s clean energy accomplishments will be dictated in part by whether Republicans retain control of the House of Representatives. The GOP flipped the U.S. Senate, but votes are still being counted in key House races as of Wednesday morning.

Here’s what clean energy and climate experts say is most likely to be lost under a second Trump administration — and what might survive.

What Trump has said about energy

Trump’s rhetoric presages a worst-case future. He has called climate change a hoax and the Biden administration’s climate policies a ​“green new scam.” He has said he wants to repeal the landmark Inflation Reduction Act and halt the law’s hundreds of billions of dollars of tax credits, grants, and other federal incentives for clean energy, electric vehicles, and other low-carbon technologies.

Trump has also made ​“drill, baby, drill” a call-and-response line at his rallies, pledging to undo any restraints on production and use of the fossil fuels driving climate change. U.S. oil and gas production is already at a record high under the Biden administration.

“He has pledged to do the bidding for Big Oil on day one,” Andrew Reagan, executive director of Clean Energy for America, said during a recent webinar.

“Oil and gas lobbyists are drafting executive orders for him to sign on day one,” Reagan added, citing news reports of plans from oil industry groups to roll back key Biden administration regulations and executive orders.

A Trump administration would be all but certain to reverse key Environmental Protection Agency regulations limiting greenhouse gas emissions from power plantslight-duty and heavy-duty vehicles, and the oil and gas industry, all of which analysts say are necessary to meet the country’s climate commitments. It’s also almost sure to lift the Biden administration’s pause on federal permitting of fossil-gas export facilities.

Trump has also promised to withdraw the U.S. from international climate agreements (again), including the Paris agreement aimed at limiting global warming to no more than 2 degrees Celsius above pre-industrial levels.

“We know that Trump would take us out of the Paris agreement, and that would be the last time his administration uttered the word ​‘climate,’” Catherine Wolfram, an economist at the MIT Sloan School of Management and former deputy assistant secretary for climate and energy economics in the Biden administration’s Treasury Department, told Canary Media. ​“Losing that global leadership would be one of the greatest losses of a Trump presidency.”

What will happen to the Inflation Reduction Act? 

Trump won’t have the power to enact all of his promises on his own. Some of the decisions must be made by Congress, including any effort to repeal the Inflation Reduction Act or to claw back unspent funds from that law or the 2021 bipartisan infrastructure law.

Complete repeal of the Inflation Reduction Act would be highly disruptive to a clean energy sector that has seen planned investment grow to roughly $500 billion since the law was passed in mid-2022.

It would also undermine clean energy job growth, which has increased at roughly twice the pace of U.S. employment overall. A recent survey of clean energy companies found that a repeal of the law would be expected to lead to half of them losing business or revenue, roughly one-quarter losing projects or contracts, about one-fifth laying off workers, and about one in 10 going out of business. 

“We found that especially rural areas and smaller rural communities would experience the largest negative impacts of repeal of the Inflation Reduction Act,” Shara Mohtadi, co-founder of S2 Strategies, said in an October webinar presenting the survey data. ​“These are the regions of the country that have seen the biggest uptake in the economic benefits and the manufacturing jobs coming from other countries into the United States.”

Indeed, most of the investment and job growth the IRA has spurred has taken place in states and congressional districts represented by Republicans.

These on-the-ground realities have driven expectations that large swaths of the law’s tax credits would be likely to survive even with Republican control of the White House and both houses of Congress. Trump would face pushback within his own party to undoing the law entirely.

In an August letter to current Speaker of the House Mike Johnson (R-Louisiana), 18 House Republicans warned against repealing the clean energy and manufacturing tax credits created by the Inflation Reduction Act, which have ​“spurred innovation, incentivized investment, and created good jobs in many parts of the country — including many districts represented by members of our conference.”

“Prematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing,” the 18 House Republicans wrote. ​“A full repeal would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return.”

Republicans would need a roughly 20-seat majority to overcome opposition from these party members opposed to a full repeal, said Harry Godfrey, head of the federal investment and manufacturing working group of trade group Advanced Energy United.

“I don’t envision Republicans holding the House with 20-plus seats,” he said.

Godfrey also doubted that a Trump administration would be eager to undermine the domestic manufacturing boom that the law’s tax credits have spurred. He noted that at the October 1 vice-presidential debate, J.D. Vance, the Republican Ohio senator and Trump’s running mate, emphasized the need for the U.S. to ​“consolidate American dominance” in key energy sectors and industries now dominated by China.

While Vance went on to falsely accuse the Biden administration of failing to bolster U.S. industries against China, the goal of emphasizing domestic competitiveness could lead Republicans to avoid undermining progress in that direction, he suggested.

How Trump’s second term could derail the clean energy transition is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Where will captured carbon go? Ohio company among those seeking to embed it in new products

An aerial picture of a farm with a barn, silos, and two white cylindrical structures that comprise a bioenergy facility.

Work headed by an Ohio waste-to-energy company to make plastic from biodigester byproducts is among seven projects recently selected for federal grants to develop new ways to use captured carbon dioxide. 

The grants aim to advance the federal government’s goal of net-zero greenhouse gas emissions by 2050 in order to address ongoing climate change. 

Quasar Energy Group, headquartered south of Cleveland in Independence, designs and builds anaerobic digesters, in which bacteria break down manure, food waste, or other organic materials. Methane is the systems’ main gas output and can be used to power generators or heat buildings, among other uses. 

But anaerobic digesters also produce carbon dioxide, another greenhouse gas which has fewer commercial uses. Customers today include fertilizer manufacturers, oil and gas companies, and food and beverage makers. But those markets are tiny compared to the amount of CO₂ scientists think will need to be removed from industrial emissions, or even pulled from the atmosphere, to deal with climate change. 

There’s a limit to how much carbon dioxide will be able to be stored in the ground, and community opposition to pipelines is another barrier to Midwest carbon capture plans. Using the carbon in products — such as cement or plastics — can be a useful alternative, especially if it displaces other fossil fuel inputs. 

On Oct. 9, the U.S. Department of Energy’s Office of Fossil Energy and Carbon Management announced funding for seven projects aimed at commercializing new approaches to incorporating carbon dioxide into products. The selections are aimed at hard-to-decarbonize sectors, said Ian Rowe, division director for carbon dioxide conversion at DOE’s office of Fossil Energy and Carbon Management. 

“There’s not going to be a non-carbon solution for those needs in the future, but we should make them from more sustainable forms of carbon,” Rowe said. “And carbon dioxide represents a feedstock that you can use.”

How the process works

Ohio is already a leader in plastics production that relies heavily on the fossil fuel industry. Hundreds of companies across the state play a role in manufacturing or the supply chain. And midstream processing provides a ready supply of natural gas feedstocks from the Utica shale play.

Quasar Energy’s team designed its process for making plastic so it will work well with biodigesters. Basically, the project will use lipids from algae as a feedstock for a type of polyurethane. Liquid effluent from the biodigester could help grow the algae and supply nutrients for it, such as nitrogen and phosphorus.

Carbon dioxide from the biogester’s gas would be another ingredient in the process. The project team estimates the process could cut carbon dioxide emissions at least 25%, compared to current technology for making the plastic.

The process already works on a bench-scale level in the lab, said Tao Dong, a chemical engineer with the National Renewable Energy Laboratory in Colorado, who is also working on the project. Other team members named in the group’s grant application to DOE include Caixia “Ellen” Wan at the University of Missouri, Xumeng Ge at Quasar, and Ashton Zeller, director of research at Algix.

Costs are an important factor for the Quasar team’s project or any other products aimed at displacing those made from fossil fuel sources. Those costs include expenses for “cleaning up” the biodigester gas to separate methane from carbon dioxide. But a chunk of that expense also can be allocated to the separated methane, which has its own value for energy, either for on-site use or for sale for use elsewhere

In other words, using the gas for making the plastic and for energy helps the economics for both uses, versus just flaring the gas into the atmosphere.

“Our process can be cost-effective,” said Yebo Li, Quasar’s chief innovation and science officer. 

The plastic made from the process also has an advantage from being a non-isocyanate polyurethane, said Mel Kurtz, president of Quasar. The Occupational Safety and Health Administration links isocyanates to various health problems, and some are potential carcinogens. So, a polyurethane plastic that doesn’t have them should reduce risks for workers at factories who would then use the material to manufacture products, such as shoes or other items.

“If [farms] can add another revenue stream, that can improve the economics” for biodigesters on farms, said Andy Olsen, a senior policy advocate for the Environmental Law & Policy Center, whose work focuses on energy issues relating to agriculture and is not part of the project team. 

It’s also important to make sure staff are properly trained to use and maintain the equipment properly, Olsen added, noting potential problems with leaked gases. Others question whether emissions offsets from some biodigesters have been overstated.

Next steps

The Quasar project team still faces hurdles. Work under the grant will focus on identifying and addressing risks so the technology can be scaled up.

One challenge will be maintaining algae ponds over time to provide the lipids for the process. Another will be optimizing the process for making them into small chemical building blocks called monomers and then assembling them into polymers, which are the plastic. Maintaining the reduction in greenhouse gas emissions over time also will be important.

Other Midwest grant recipients include LanzaTech, an Illinois sustainable fuels company, and Washington University in St. Louis, which will develop a low-carbon process to convert carbon dioxide to high-quality carbon nanotubes. Those will be tested for use as anodes for lithium-ion batteries.

Whether these and other carbon management projects can scale up quickly enough for the United States to achieve net-zero emissions by 2050 is a big question, said Rowe at DOE.

The energy source for the production process will also make a big difference, Rowe said. Algae can make their own food with carbon dioxide and sunlight. But it takes energy to maintain the ponds throughout the year. The equipment to process the algae and then make the lipids and biodigesters’ carbon dioxide into polyurethane also needs energy.

“Carbon management strategies go hand in hand with an increased deployment of cheap clean electricity. So, a lot of these won’t work without the other,” Rowe said. On the flip side, “if that energy does not come from clean sources, you’ve just produced something that is worse for the environment than if you dug it up and just used fossil carbon.” 

Where will captured carbon go? Ohio company among those seeking to embed it in new products is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Commentary: Michigan is the epicenter of America’s clean energy manufacturing renaissance

Cranes erecting the steel frame of a battery plant.

The following commentary was written by Mel Mackinm, director of state policy at Ceres, a nonprofit that works with investors and companies to advance clean energy policy. See our commentary guidelines for more information.


Look out across Michigan and you’ll see groundbreakings for major solar panel manufacturing sites, huge investments to build battery cells, and sparkling new facilities to ensure the state stays in the driver’s seat as the auto industry moves into the future.

It seems Michigan manufacturing is having a moment.

It’s little wonder why. Michigan has always had the legacy, the workforce, the supply chains, and the know-how to serve as the epicenter of an American manufacturing renaissance. That’s exactly what’s happened since Congress finalized the nation’s largest-ever clean energy investment in the summer of 2022.

Powered by incentives for companies to manufacture and deploy clean energy infrastructure and technology here in the U.S., the Inflation Reduction Act has unlocked more than $360 billion in private-sector investment in less than two years, according to research from Climate Power. Its impact has been felt in every corner of the country with hundreds of new projects taking shape to build innovative technologies, employ hundreds of thousands of workers, and power the economy – all while cutting costs and pollution. But no other state has seen as much activity as Michigan, the site of 58 new clean energy projects.

Michigan policymakers deserve some credit for moving quickly to take full advantage of this opportunity. In 2022, Gov. Gretchen Whitmer made clear in her MI Healthy Climate Plan that she wanted to make Michigan one of the best places in the world to build and deploy clean energy. Lawmakers since followed her lead with legislation that will move the state to 100% clean electricity by 2040 and ensure clean power infrastructure can be built both quickly and responsibly – a pair of laws that boasted ample support from Michigan companies that recognize confronting climate change is also an economic opportunity.

These policies were designed to fully harness the Inflation Reduction Act, making clear that the state is ready to support the growing number of businesses that supply or rely on innovative clean technology. In response, businesses that include classic Michigan manufacturers like GM, global brands like Corning, and upstarts like Lucid Motors have flooded the state with more than $21.5 billion in new clean energy innovation and manufacturing investment, creating some 20,100 new jobs.

With projects located from Detroit to Holland to Traverse City, so much of the state is already benefitting. That includes communities that have so far been left behind in the 21st century economy. About half of the state’s recent clean energy investment is located in rural or low-income areas, such as Norm Fasteners’ $77 million facility that will create 200 electric vehicle supply chain jobs in Bath Charter Township.

Now is not the time to slow down. We are now in the throes of the 2024 election, and we all know Michigan has been getting a lot of attention. No matter what happens in November, Michigan and the U.S. must continue investing in this revamped manufacturing base. Policymakers on both sides of the aisle have prioritized rebuilding American industry to provide good jobs and bolster U.S. leadership

Michigan’s clean energy manufacturing boom provides clear evidence that this shared goal is coming to fruition. Policymakers at both the federal and state levels, along with leaders in the private sector, must maintain this momentum and the strong policy environment that will allow the U.S. and its workforce to lead the global economy in the emerging industries of the future – with Michigan, as it so often has, standing strong as the foundation.

Commentary: Michigan is the epicenter of America’s clean energy manufacturing renaissance is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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