Pragmatic Energy Policy Addresses Rising Electricity Demand

Introduction

EPA Administrator Lee Zeldin has proposed repealing the Biden-era EPA rule known as the Clean Power Plan 2.0, which aimed to regulate greenhouse gas emissions from power plants. This rule accelerated the closure of reliable electricity producers, particularly coal plants, and restricted new natural gas generation. The repeal aligns with Sustainable Development Goals (SDGs) by promoting affordable and reliable energy (SDG 7) while balancing environmental considerations (SDG 13).

Rising Power Demand and Technological Drivers

After years of stagnant electricity demand in the United States, recent developments—especially the growth of generative artificial intelligence and data centers—have driven significant increases in power consumption. Technology companies are seeking reliable power sources, often favoring nuclear and natural gas due to their stability and capacity to meet demand.

Importance of Maintaining Existing Power Plants

Maintaining existing thermal power plants (coal, natural gas, and nuclear) is critical to meeting rising demand. According to the North American Electric Reliability Corporation’s 2024 assessment:

• Nearly 79 GW of thermal units are scheduled for retirement by 2034.
• An additional 43 GW of coal and natural gas generators have announced retirement plans but have not yet scheduled them.

The Clean Power Plan 2.0 contributed to the premature closure of coal plants and potentially natural gas plants, threatening grid reliability and energy affordability (SDG 7).

Impact of the Clean Power Plan 2.0 on Energy Infrastructure

The EPA’s power plant rule applied to all new or substantially modified gas power plants, discouraging necessary upgrades and leading to closures rather than compliance. This regulatory environment hindered the construction of new natural gas plants, creating supply chain delays for critical components such as turbines, with wait times ranging from one to seven years.

Policy Recommendations and Market Response

1. Repeal of the Clean Power Plan 2.0 to preserve existing thermal capacity and encourage new investments.
2. Support for natural gas and nuclear power as reliable energy sources to meet growing demand.
3. Encouragement of infrastructure development to reduce component supply delays.

Repealing the rule is expected to restore confidence in the energy market, facilitating investments that align with SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure).

Conclusion

The proposed repeal of the Clean Power Plan 2.0 represents a pragmatic step toward ensuring the United States can meet increasing electricity demand while maintaining grid reliability. This approach supports multiple Sustainable Development Goals by promoting sustainable energy production, economic growth, and climate action.

References

• Independent Institute Article
• EPA Clean Power Plan 2.0
• NERC 2024 Reliability Assessment
• S&P Global Report on Gas Turbine Wait Times

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article discusses electricity demand, power plant operations, and energy policy, directly relating to ensuring access to affordable, reliable, sustainable, and modern energy.
2. SDG 13: Climate Action
   • The article mentions EPA regulations aimed at reducing greenhouse gas emissions from power plants, which connects to combating climate change and its impacts.
3. SDG 9: Industry, Innovation, and Infrastructure
   • The discussion about new power plant construction, technology companies’ energy needs, and infrastructure development relates to building resilient infrastructure and fostering innovation.
4. SDG 12: Responsible Consumption and Production
   • Energy policy decisions and managing existing power plants affect sustainable consumption and production patterns.

2. Specific Targets Under Those SDGs

1. SDG 7: Affordable and Clean Energy
   • Target 7.1: By 2030, ensure universal access to affordable, reliable, and modern energy services.
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology.
2. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
3. SDG 9: Industry, Innovation, and Infrastructure
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
4. SDG 12: Responsible Consumption and Production
   • Target 12.2: Achieve the sustainable management and efficient use of natural resources.

3. Indicators Mentioned or Implied to Measure Progress

1. SDG 7 Indicators
   • Indicator 7.1.1: Proportion of population with access to electricity – implied by discussion on power plant availability and grid connection.
   • Indicator 7.2.1: Renewable energy share in the total final energy consumption – indirectly referenced through the discussion of coal, natural gas, and nuclear power plants.
   • Indicator 7.a.1: International financial flows to clean energy research and development – implied by references to technology companies investing in new power plants.
2. SDG 13 Indicators
   • Indicator 13.2.2: Total greenhouse gas emissions per year – referenced through EPA regulations targeting emissions from power plants.
3. SDG 9 Indicators
   • Indicator 9.4.1: CO2 emission per unit of value added – implied by the discussion of power plant emissions and infrastructure upgrades.
4. SDG 12 Indicators
   • Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP – indirectly related to resource use efficiency in power generation.

4. Table of SDGs, Targets, and Indicators

Source: cei.org