Category Archives: Renewable energy

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The bills are back in town

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Legislators cue up last year’s vetoed legislation for a new session, but leave us wanting more

Last spring Gov. Glenn Youngkin vetoed more energy bills than he signed, killing legislation designed to increase rooftop solar and energy storage, strengthen utility planning requirements, and make efficiency improvements more available to low-income residents. 

Now, with Abigail Spanberger set to replace Youngkin in the Governor’s Mansion and Democrats in a position of legislative strength, those bills are back.

Members of the Commission on Electric Utility Regulation (CEUR) met several times this fall to examine last year’s failed energy bills to determine which should get the commission’s endorsement this year. CEUR is comprised primarily of legislative leaders from the Senate and House committees that hear energy bills, so endorsements signal a strong likelihood of passage. 

But while the bills CEUR endorsed show promise, I can’t help thinking they had better be just a starting point.  

Energy affordability and making data centers pay their fair share are supposed to be the top objectives for legislators this year. That makes it interesting, and concerning, that even as CEUR went beyond the vetoed bills to endorse some small new initiatives, it didn’t propose any legislation that would either supercharge generation in Virginia or put the onus on the tech companies to solve their supply problem themselves.  

We know bills like that are coming. Ann Bennett, the lead author of the Sierra Club’s comprehensive report on the state of the industry in Virginia, was, I hope, being hyperbolic when she told me she expects “a hundred” data center bills this session. Regardless, there will be a lot of them. 

Many will be land use bills that don’t go to the energy committees, but others will tackle the central contradiction at the heart of Virginia’s data center buildout: our leaders want the industry to grow, but haven’t faced squarely the problem of where the energy will come from. 

Getting more power on the grid (or freeing up capacity)

Some of the vetoed bills returning this year will put more energy on the grid. They won’t be enough to power the data center industry, but every bit helps. This includes one of the environmental communities’ top priorities, a bill that expands the role of rooftop solar in Virginia’s renewable portfolio standard (RPS). 

A new bill permitting balcony solar also got CEUR’s endorsement. Balcony solar – two or three panels that plug into a wall outlet, reducing a resident’s need to buy power – is the buzziest new idea of the year. The systems are too small to make much of a difference in megawatt terms, but by democratizing access to solar they counter the reputation of solar as a technology for rich people and will make it possible for solar skeptics to see for themselves that solar does actually work and save money.

Another CEUR initiative is a bill similar to one Youngkin vetoed that creates a carveout in the state’s renewable portfolio standard specifically for geothermal heat pumps. Like balcony solar, geothermal heat pumps don’t put electricity onto the grid, but by freeing up power for other customers it has the same effect.

 CEUR also endorsed a bill to simplify billing in the shared solar program in Appalachian Power Company’s territory, but a far more significant proposal to greatly expand shared solar in Dominion territory was deemed not ready for consideration after one of its patrons, Del. Rip Sullivan, D-Fairfax, said it was still in negotiation.  

The SCC recently directed a change in the calculation of Dominion Energy’s minimum bill that industry advocates say should make the program workable for customers beyond the low-income residents who were the only ones formerly able to access it. As currently drafted, the bill would allow shared solar to increase up to a maximum of 6% of Dominion’s peak load. That gives this bill the potential to make a meaningful dent in Virginia’s energy shortfall – if Dominion doesn’t block it. 

That assumes developers can get the community solar projects permitted at the local level. 

Virginia localities are notorious for denying permits to solar projects of all sizes, a recalcitrance that has contributed to Virginia having to import fully half of the electricity consumed in the state. CEUR has now scrapped last year’s big idea of allowing solar developers to appeal local government permit denials to the SCC, after failing to persuade enough legislators to vote for it last year. All that is left of that bill is a piece that establishes a university consortium to provide research and technical assistance. 

Luckily, last year’s other major solar siting bill lives on; it codifies best practices for solar projects without removing localities’ ability to deny permits even for projects that meet the high standards. New this year, however, is a requirement that localities provide a record of their decisions to the SCC, including the reason for any adverse decision. 

It’s not the solution the industry and landowners need to bring predictability to the local permitting process, but it does ratchet up pressure on county boards that have a habit of denying projects without articulating a legitimate reason. And sure enough, imposing that modest amount of accountability was enough to get Joe Lerch from the Virginia Association of Counties to speak against the proposal at the CEUR meeting. 

VACO seems likely to lose the fight this time around, and it should. Blocking solar development leads directly to higher electricity prices for consumers across the state. Moreover, it denies even a minimum of due process to landowners who want to install solar on their property – including farmers who need the income just to hold onto their land. For VACO to insist on counties having carte blanche to reject projects, with no responsibility to justify their decision, is arrogant and an abuse of the local prerogative.

Making the most of what’s already there

Anyone who keeps up with energy news has learned more in the past year about how the grid works than most of us ever wanted to know. There is widespread agreement that grid operator PJM has mismanaged its job, keeping new low-cost generation from interconnecting and driving up utility bills for customers across the region. Unfortunately, there is little that Virginia can do by itself to fix PJM.

But one key bit of information we can use is that utilities and the grid operator build infrastructure to meet the highest levels of demand on the hottest afternoons and coldest nights of the year, leaving much of that infrastructure sitting idle at other times. A recent study showed the grid could absorb far more data center demand than it can now if it weren’t for the 5% of the time when demand is at its highest. 

The issue is framed in terms of data centers being willing to curtail operations at times of peak demand, a solution for the companies that can do it. But there is also a broader point: we don’t need as much new generation if we use what we have better. 

That’s the principle behind several bills that CEUR endorsed. The most significant of these is a bill vetoed by Youngkin last year that almost doubles the targets for short-term energy storage laid out in the Virginia Clean Economy Act and adds targets for long-duration energy storage. As currently drafted, the 2026 version also adds new fire safety standards.

But CEUR did not discuss another obvious approach to increasing storage capacity on the grid: requiring data centers to have storage on-site, replacing highly-polluting diesel generators for at least the first couple of hours of a power outage and using spare battery capacity to assist the grid at other times. If Virginia is going to keep adding data centers at the current rate, this simply has to be part of the plan. We need far more storage than the CEUR bill calls for, and tech companies, not ratepayers, should bear the cost.

CEUR’s utility reform proposals would also help Virginia’s grid get the most out of what we already have. A bill to improve the integrated resource planning process (again, vetoed by Youngkin) requires utilities to consider surplus interconnection service projects to maximize existing transmission capacity. 

CEUR also proposes to have the SCC create a workgroup to study load flexibility. Though the SCC is already doing this through its technical conferences, the proposed legislation would formalize the process and task the work group with making recommendations.

And if all else fails, under another CEUR initiative, utilities would be explicitly allowed to delay service to new customers with more than 90 MW of demand if there wasn’t the generation or transmission available to serve them, or to protect grid reliability. As a fail-safe this is both obvious and inadequate; if a utility doesn’t have that authority now, it certainly needs it — but it needs it for a customer of any size.

Helping low-income residents save money 

CEUR endorsed several proposals that could help residents save money on energy bills. Some, like shared solar, balcony solar, geothermal heat pumps and the distributed solar expansion bill, would benefit anyone willing to make the investment. 

For low-income residents, weatherization and efficiency upgrades remain the focus. Last year the governor vetoed legislation from Del. Mark Sickles, D-Fairfax and Sen. Lamont Bagby, D-Henrico, which would have required Dominion and APCo to expand their low-income weatherization assistance to reach 30% of qualifying customers.  Sickles has already reintroduced his bill as HB2. CEUR endorsed a different recommendation from staff that the two utilities be required to extend their spending on energy assistance and weatherization programs. 

CEUR did not examine a related bill that has been reintroduced this year following a Youngkin veto last winter, establishing an income-qualified energy efficiency and weatherization task force to produce policy recommendations to ensure repairs and retrofits reach all eligible households. 

However, CEUR endorsed a bill that will require all utilities to disclose to the SCC information about electric utility disconnections, which presumably will inform the work of the task force.  

We’re going to need more

Even taken together, CEUR’s initiatives don’t fully address the biggest energy crunch Virginia has ever faced, and the rising utility bills that result. Possibly that is intentional; Democrats will continue to control the governor’s seat as well as the legislature for at least two years, giving them time to ramp up programs and see what works.

But data center development is so far outstripping supply side solutions that if legislators aren’t more aggressive this year, next year they will find themselves further behind than ever.  

As more bills are filed over the coming weeks, we are likely to see plenty of bold proposals. Hopefully, legislators now understand the urgency, and will be ready to act.

An earlier version of this article appeared in the Virginia Mercury on December 15, 2025. It has been edited to include the last two bills in the section titled “Making the most of what’s already there.”

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How Gov. Spanberger and a Democratic majority can make energy more affordable

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An aggressive legislative agenda this year will demonstrate national leadership on managing the data center buildout while delivering climate, health and economic benefits to all Virginians

Solar on schools and other public buildings reduce pressure on the grid while saving money for taxpayers. Photo courtesy of Secure Solar Futures LLC

If Virginia’s election last month was more than an unleashing of anti-Trump sentiment (and it definitely was that), it was about affordability. Governor-elect Abigail Spanberger made the cost of living the focus of her campaign, frequently mentioning high energy bills. House Democrats, whose majority has been boosted by the addition of 13 new members of their party, are also expected to focus on these bread-and-butter issues. 

In Virginia, the cause of these high bills is not hard to identify: Data centers are driving up demand well beyond the available supply, and high fossil fuel prices are pinching a state that relies on natural gas for most of its electricity. Spanberger has committed to making data centers “pay their fair share,” and both she and legislators will be looking for other opportunities to lower costs.

The bad news is that adding ever more data centers across Virginia means the upward pressure on electricity prices will continue. If the governor and legislators don’t want to kick tech companies to states with spare capacity, and if the administration of President Donald Trump continues to throttle the energy supply with its war on wind and solar, lowering energy costs in the near term likely isn’t possible. 

Even so, there is a lot that Spanberger and the General Assembly can do to protect residential consumers from these higher prices. 

Making data centers pay their fair share means more than tweaking rate structures. Several Virginia utilities have created special rate classes for large load users like data centers. The utilities will require data center operators to sign long-term contracts committing them to paying for a large percentage of the electricity and transmission they say they need, even if they don’t end up using that much or leave the Virginia market prematurely. 

These new tariffs can help protect other customers from some – though not all – of the risk involved in serving data centers, but they don’t address the “fair share” issue. The current allocation of transmission costs, with residential ratepayers picking up most of the tab for new lines that don’t benefit them, needs to change. If the SCC determines it doesn’t have authority to do that on its own, the General Assembly and Spanberger should pass legislation to make it happen. 

The harder problem is how to make residents whole for rate increases that result from data centers gobbling up all available power. The supply and demand problem has been compounded by a lot of bad decisions, with plenty of blame to go around. The federal government has driven up fossil fuel prices by allowing the export of increasing amounts of natural gas, while hindering and even blocking solar and offshore wind projects that could make up the deficit. 

Outgoing Gov. Glenn Youngkin is to blame for illegally pulling Virginia out of the Regional Greenhouse Gas Initiative (RGGI), removing the market incentive for Virginia utilities to increase investments in low-cost renewable energy instead of burning expensive fossil fuels. (His promotion of the false narrative that gas is “cheap” doesn’t help.) 

Virginia utilities share the blame for relying too much on natural gas and high-priced electricity imported from other PJM states. And grid operator PJM is to blame for failing to approve enough new generation, including wind and solar facilities that make up the vast majority of projects waiting for approval to interconnect.

This history leaves Spanberger with a fine mess. Keeping prices in check now requires two things that can actually be accomplished during the next four years: a greater buildout of solar generation and energy storage to get more capacity on the grid; and investments in energy efficiency and rooftop solar to take pressure off the demand side.    

Solve utility solar siting with agrivoltaics. Virginia needs more energy, and solar is the only source that can be built quickly. Yet one of the knottiest problems confronting the General Assembly in the past few years has been the rise of anti-solar sentiment in rural counties. 

Landowners who want to lease their property for solar, or even to install arrays for their own use, find themselves stymied by opposition from neighbors who don’t like the look and are able to persuade county boards to deny permits. As we’ve seen, sometimes denial of a solar permit even follows approval of an energy-sucking data center.

Last year the General Assembly came close to passing a bill that would require solar developers to implement industry best practices. Passing legislation like that this year will address the legitimate concerns of localities around controlling erosion and maintaining native plant buffers. But more can be done to make solar look and function like a normal part of Virginia’s agricultural economy.

Already, solar facilities have become integrated with agriculture, as sheep and sometimes cattle take over vegetation management and farmers learn which crops do well growing between rows of solar arrays. It’s a trend that offers benefits to the land and the community alike. Farmers are struggling; solar can provide a stable income while protecting land from permanent development and putting much-needed energy on the grid. 

Businesses are ahead of public policy on this. Virginia-based Gray’s Lambscaping manages vegetation with over 800 sheep at solar farms across the state, and the company plans to grow to over 5,000 sheep by the end of this year. Meanwhile, solar panels have proven compatible with a wide range of food crops.  

Virginia should take a leading role in expanding agrivoltaics. Virginia law already recognizes the right to farm as an exception to localities’ authority over land use decisions, and this should be extended to farmers who put solar on their land, as long as they are also using the same land for traditional agricultural practices like grazing and crops. 

Install solar on new public buildings and schools. Heck, put it everywhere.  In the past ten years or so, Virginia’s commercial solar sector has blossomed while saving taxpayers money. To date, an estimated 150 Virginia schools have installed solar panels, saving schools about 25% on their energy bills. Solar on every sunny school rooftop would add up to more than 1,000 MW of carbon-free generation. Extend the effort to the roofs of all suitable public buildings across the state, and that number can go much higher. 

Dominion and APCo have long tried to squelch competition from rooftop solar, a war that looks increasingly foolish as Virginia finds itself short on energy for all customers. Earlier this year Congress drastically accelerated the phase-out of solar tax incentives, but the savings remain available for commercial and utility-scale projects for the next two years. There is no shortage of good ideas out there to be acted upon. Spanberger and legislators should take full advantage of that opportunity to install as much solar as possible. 

Battery storage at data centers does triple duty. While solar is the cheapest, cleanest, and fastest way to generate power, it needs batteries or other forms of energy storage to make it into a 24/7 resource, and storage remains relatively expensive. For tech companies, however, the calculus makes more sense.

Data centers need backup power anyway; they typically have three layers of redundancy so that they never risk losing power when the grid goes down. Today the backup power is mostly provided by massive diesel generators, sometimes three times as many as they might actually need. Most of these have no pollution controls and are therefore not supposed to run except in emergencies and for testing and maintenance. That’s sill a lot of run time — and DEQ is proposing to make matters worse by expanding the definition of “emergency” to include scheduled outages.

Some tech companies are now installing generators with selective catalytic converters that produce fewer emissions. The catch is that these can legally be used in non-emergency situations, raising the possibility that they might be used for demand-response or peak shaving. In effect, data centers would be solving the peak demand problem with one of the dirtiest forms of energy. The cumulative effect on air quality could be worrisome, and Virginia’s carbon footprint would grow at a time when the law says it should be shrinking. 

What if, instead of diesel generators, data centers installed storage as their first line of defense against power outages, leaving diesel generators to be used only in the rare case of extended grid outages? Air quality would benefit, carbon emissions would decrease, and the data centers would have the backup power they need. The tech companies would pay more upfront but could be compensated by utilities for using their storage capability for grid services and demand response, lowering their draw from the grid at peak demand times. 

All the data centers in Virginia today use 6 gigawatts of power. That much storage would exceed the targets set in the VCEA for Dominion and APCo combined.  Even limiting the requirement to two hours of storage at new data centers would bring enough storage online quickly to eliminate the expensive demand peaks that drive the high price of energy.  

Require data center operators to source their own zero-carbon electricity. Most of the tech companies have sustainability commitments that they aren’t meeting, so it isn’t asking too much of them to put them in charge of this effort. Legislation to require this as a condition of accepting Virginia’s generous tax subsidies has been defeated for the past two years. The difference this year is that rising energy prices are now affecting everyone. 

Under this proposal, the zero-carbon electricity doesn’t have to come from Virginia, as long as it is available to customers here. Maybe the tech companies could even tap into their considerable influence with the Trump administration to make electricity more plentiful and affordable by reversing its war on solar and wind energy.

Why, after all, should Virginia residents sacrifice for the richest corporations in the world? If “paying their fair share” means anything, it should mean that data centers, not residents, bear the costs of making enough energy available to Virginia, and complying with our clean energy mandate.

Lower demand with energy efficiency and distributed solar. The gap between energy supply and demand does not have to be filled entirely through supply-side solutions. Lowering demand should also be part of the solution. Virginia utilities, Dominion in particular, have done a poor job of running energy efficiency programs. Looking on the bright side, though, that means plenty of opportunities remain.

House Democrats have already started work on this issue, with a focus on lowering winter heating costs for lower-income households. As reported in the Mercury last week, HB 2, from Farifax Del. Mark Sickles, requires Dominion and APCo to make their “best, reasonable efforts” to provide energy efficiency and weatherization to 30% of income-qualified customers by the end of 2031. HB 3, from  Del. Destiny Levere Bolling, D-Henrico, sets up a task force to study income-qualified energy efficiency and weatherization.  

These steps are okay for starters, and they would be juiced by the influx of money from RGGI carbon auctions (see next section), earmarked for low-income energy efficiency. But Dominion has repeatedly failed to meet the energy efficiency targets the legislature sets for it, and after all, why stop with 30% of low-income customers when all households could benefit from more comprehensive programs? Virginia can do much better.  

My last column discussed Rewiring America’s proposal to have tech companies pay for heat pumps, solar and batteries in the residential sector, saving money for households and freeing up capacity for data centers to come online sooner. An independent provider could run the program and verify the energy savings.  

(If the tech companies complain that an awful lot of the solutions I’m proposing come at their expense, it’s true. But the industry benefits from a state tax subsidy that has reached nearly a billion dollars per year, and will only grow further as the number of data centers doubles and triples. They can afford to give back.) 

Use RGGI for long-term affordability. Gov.-elect Spanberger has committed to seeing Virginia rejoin the Regional Greenhouse Gas Initiative (RGGI), the compact of northeastern states working to lower carbon emissions by 30% by 2030. RGGI works by requiring owners of carbon-emitting generating plants to buy carbon allowances at auction, penalizing carbon-intensive generation and rewarding investments in zero-carbon facilities like wind, solar and nuclear. States collect the auction proceeds, which in Virginia are dedicated to low-income energy efficiency and climate adaptation measures.

Republicans have already renewed their attacks on RGGI, calling it a tax on energy consumers. To the extent that’s true, it’s a tax mostly paid by the largest consumers (including data centers) for the benefit of low-income residents and people most vulnerable to storms and sea level rise. Moreover, all energy consumers benefit over the longer term as low-cost clean energy increasingly replaces expensive fossil fuels. 

Beef up efficiency standards in the residential building code. Most people who buy a new home assume that modern building codes incorporate the latest standards for insulation and efficient technology. In Virginia, they do not. Buyers would be dismayed to learn that their homes are costing them more on their utility bills than they saved on a purchase price supposedly made more affordable by poorer-quality insulation and appliances. Buyers are rarely consulted on these trade-offs, and few have the expertise to question a builder’s choices. Building codes are supposed to do that job.

Unfortunately, Virginia’s Board of Housing and Community Development, which writes the code, is dominated by the homebuilding industry. The industry wants to build homes as cheaply as possible to ensure the highest profit possible on the homes it sells. Even as national model code standards have become more rigorous, homebuilders have protected their own interests by keeping weak energy efficiency requirements in Virginia’s residential building code. 

In 2021, Virginia adopted legislation requiring the board to consider and adopt energy standards “at least as stringent as” the latest national model code standards when the benefits over time to residents and the public exceed the incremental costs of construction. But the board simply didn’t do it. Will this be the year legislators realize that a board dominated by the industry it regulates won’t act in the public interest without explicit directions? 

This is Virginia’s moment. Since the passage of the Virginia Clean Economy Act in 2020, renewable energy and storage have only gotten cheaper, while energy efficiency opportunities remain plentiful. Coal has solidified its place as the most expensive baseload source, and fossil gas remains stubbornly expensive compared to solar. Spanberger and the Democratic majority have an opening this year to go big on clean energy. An aggressive legislative agenda this year will demonstrate national leadership on managing the data center buildout while delivering climate, health and economic benefits to all Virginians.  

This column was originally published in the Virginia Mercury on December3, 2025.

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How Trump’s deal with Big Oil is raising your energy bills

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smokestack
Photo credit Stiller Beobachter

There is a principle in law that says someone intends the natural result of their actions. You cannot throw me out a window and say you didn’t mean for me to get hurt. 

By the same principle, if you block new solar and wind generation, you can’t say you didn’t intend to throttle energy production. 

President Trump has made it clear he wants to kill wind and solar, and his appointees have followed through. The Department of Interior is refusing leases and permits to wind and solar projects, even as it moves ahead on lease sales for oil and gas drilling.

Interior even issued a stop-work order on an offshore wind farm that is 80% complete. The project was on track to supply enough energy for 350,000 homes in Rhode Island and Connecticut, until the Trump administration stepped in. A judge later lifted the order, but not before the company building the project saw its share price drop to a record low. 

Reducing the amount of low-cost, clean electricity developers can add to the grid will have an enormous impact. Clean energy is so much less expensive and faster to build than fossils fuels that renewable energy and batteries made up over 90% of the energy capacity added in the U.S. last year. 

It’s fortunate for consumers that Trump won’t be able to stop all wind and solar projects, because the small number of fossil fuel plants under development won’t fill the gap. It takes years to develop a new gas plant, and gas turbines face an order backlog of up to 7 years.

The shortfall in new generation is happening at a time when the use of electricity is surging, mainly due to demand from data centers. Other customers, including ordinary residents, now have to compete with data centers for increasingly expensive electricity. Rates are going up as a result, and grid operators warn we may soon face power shortages. 

Trump’s only concession to the power crunch is to order a few fossil fuel plants to stay open that their owners had planned to close for economic reasons. Ordering an uneconomic plant to stay open means someone loses money. Trump hasn’t offered federal dollars to pay the difference. The utilities that own the plants will pass the cost on to consumers.

If throttling energy production and raising energy costs is the natural result of Trump’s actions, it’s reasonable to assume that’s his intent. So many experts have pointed out the damage his policy will do that the alternative explanation – that the president is deluded and foolishly thinks his actions will somehow result in more energy production and lower costs – doesn’t hold up.

But why would the president deliberately hamstring American energy production and raise electricity costs for consumers? 

Because that’s the deal he made with oil and gas industry leaders at a closed-door fundraiser at Mar-a-Lago last year, in exchange for the more than $200 million the industry spent to get him elected. Actually, Trump asked for a billion dollars, and in return promised to dismantle environmental regulations, go after the wind industry and scrap President Biden’s policies promoting electric vehicles. 

At a later fundraiser, he also promised to approve new natural gas exports, in spite of warnings from critics that these exports would drive U.S. prices higher – which is exactly what happened.

Promises made, promises kept, as Trump’s fans like to say. Trump’s appointees have gutted environmental protections and done their best to keep wind and solar off the grid. Most people know the “One Big Beautiful Bill” revoked tax incentives for homes and businesses to install solar; less widely reported is that it included $18 billion in tax incentives for the oil and gas industry and lowered the amounts the industry must pay to lease federal lands for drilling, among other rewards. 

Less renewable energy and higher prices means more market share and higher profits for fossil fuels. The natural result is that the American consumer will have to pay through the nose for energy. 

Too bad, folks, but that was the deal.

This article was originally published in the Richmond Times-Dispatch on September 30, 2025.

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Five things every Virginia candidate (and voter!) should know about energy

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What lights up your life? Photo by Pixabay on Pexels.com

Running for office requires candidates to know about topics they might never have given much thought to. Most Virginia campaigns are won or lost on hot-button issues like taxes, education, reproductive rights, guns and gay marriage, so everyone who runs for office has a position on these questions. This holds true for candidates in this year’s high-stakes races for the state’s executive branch and all 100 House of Delegates seats. 

Inevitably, though, there are topics the average candidate doesn’t completely grasp. Some are narrow and – thankfully – nonpartisan. Where do you stand on Sunday hunting? Should I-81 have more lanes? How do you feel about skill games? Will you vote to save the menhaden, whatever a menhaden is? (It’s a fish, and I encourage you to say yes.)

Other topics affect the lives of every Virginian, but they are, frankly, complicated. One of these is energy. Not only is it hard to get up to speed on energy issues, but technology is changing so rapidly that keeping abreast of developments would be a full-time job. Who would spend that kind of time on such a dreary topic?

Uh, that would be me. 

So here we go: I’m going to cover five things political hopefuls need to know about energy in Virginia before you get to the General Assembly and start passing laws that affect your constituents’ wallets and futures. And for voters, these are things you should ask candidates about before they earn your vote. 

First up:

If you are going to talk about energy, you have to talk about data centers

By now you surely know that Virginia has embraced the most energy-intensive industry to come along since the steam engine launched the Industrial Revolution. Northern Virginia hosts the world’s largest concentration of data centers, which already consume an estimated 25% of the state’s electricity, with massively more development planned. The reason isn’t vacation photos or Instagram cat videos; it’s the competition to develop artificial intelligence (AI).  

After putting tax incentives in place to attract the industry 15 years ago, the General Assembly and the current governor have rejected all attempts to put guardrails on development or make data centers more energy efficient. The subsidies now cost taxpayers a billion dollars per year (and counting). Virginia asks for almost nothing in return. 

Under the best of circumstances, the skyrocketing demand for electricity would put upward pressure on energy prices. But our situation is even worse: Virginia already imports about half our electricity from other states, and the regional grid that we’re part of faces its own energy crunch. 

Grid manager PJM has been so slow to approve new generation that governors from member states, including Virginia Gov. Glenn Youngkin, wrote a letter taking PJM to task and urging it to move faster. But the damage has been done. Supply is tight, electricity prices have risen, and prices will continue to rise unless and until supply catches up.

PJM has decided to fast-track new high-cost, gas-fired generating plants ahead of the cheaper renewable energy projects that make up 95% of the queue. It’s a much-criticized move and seems more likely to increase costs. Once built, fossil gas plants burn a fuel that has doubled in price just over the past year, threatening a repeat of the post-pandemic price surge that Virginia ratepayers are still paying for. And there is no relief in sight, with utilities now having to compete with a doubling of U.S. natural gas exports.

Short of unleashing all the renewable energy stuck in the queue, there is no easy way to protect Virginia residents from higher electricity costs. Dominion Energy, Appalachian Power, and at least one of the electric cooperatives have proposed special rate classes for large-load customers, but that would shield residents from only some of the costs of serving the data centers. 

Utility bills are going up. Dominion Energy is seeking hefty rate increases that would push up residential bills by an average of more than $10 per month in base rates plus almost $11 per month in fuel costs, primarily due to those higher natural gas prices. Coal-heavy APCo has seen even steeper rate increases in the past few years.

Virginia needs new legislation ensuring data centers bear the full expense and risks of serving Big Tech, and they should be required to source their own clean energy. Localities, meanwhile, must be required to evaluate the costs to all Virginians before they issue permits to data centers, including considerations like where the energy will come from, water impacts, and the siting of transmission lines.  

You can’t get from here to there without solar

Virginia wasn’t producing all of its own energy even before the data center rush, and PJM’s problems are now pushing us into a crisis. Our near-term options are limited; new data centers are breaking ground at a breathtaking rate, and only solar can be installed on the timeline needed to prevent an energy shortfall. Even if we were willing to pay for high-priced gas or nuclear plants, developers face a backlog of as long as seven years for gas turbines, and advanced nuclear is still not commercially viable. 

Fortunately, solar is not just the fastest energy source to deploy, it’s also the cheapest and cleanest. Though President Donald Trump blames rising electricity prices on renewable energy, that’s false, just one of many myths the fossil fuel industry has propagated against solar. Nor is solar unreliable, another myth. When solar is paired with battery storage, it can match the rise and fall of demand perfectly.

It’s true, however, that while the great majority of Virginians support solar energy, many rural residents oppose it on aesthetic grounds. Of course, they would also oppose nuclear reactors and gas fracking in their neighborhoods. Legislators should  be sensitive to their concerns – but having chosen to welcome data centers, Virginia leaders can’t just shrug off the need for energy.

We also have to recognize that many farmers need to lease their land for solar in order to keep the land in their family and generate stable income. This should be as important a consideration to lawmakers as the objections of people who aren’t paying the taxes on the farm. Preventing landowners from making profitable use of their land is more likely to lead to the land being sold for development than to it remaining agricultural. 

The good news is that solar panels are compatible with agricultural uses including livestock grazing, beekeeping, vineyards and some crops. Dominion Energy uses sheep instead of lawnmowers at several of its solar facilities in Virginia and plans to expand the practice. The combination is a beautiful synergy: sheep and native grasses improve the soil, and in 30 years when the solar panels are removed, the land has not been lost to development.

While there is no getting around the need for utility-scale solar projects, rooftop solar also has an important role to play. In addition to harnessing private dollars to increase electricity generation, distributed solar saves money for customers and makes communities more resilient in the face of extreme weather.

This year the governor vetoed a bill to expand the role of distributed solar in Virginia. The legislation had garnered strong bipartisan support, so it will likely pass again next year. However, lawmakers will need to go further to encourage customer investments in solar now that federal tax credits will be eliminated for residential consumers at the end of this year.  

Batteries: For all your reliability needs

The fastest-growing energy sector today is battery storage. Batteries allow utilities to meet peaks in demand without having to build gas combustion turbines that typically run less than 10% of the time. Batteries also pair perfectly with intermittent energy sources like wind and solar, storing their excess generation and then delivering electricity when these resources aren’t available.  

Battery prices have tumbled to new lows, while the technology continues to improve. Most lithium-ion batteries provide 4 hours of storage, enough to meet evening peak demand with midday solar. When renewable energy becomes a larger part of Virginia’s energy supply (it’s less than 10% now) we will need longer term storage, such as the iron-air batteries that are part of a Dominion pilot program. This year the governor vetoed a bill that would have increased the amount of storage our utilities must invest in. Given the increasing importance of batteries to the grid, the legislation will likely be reintroduced next year.

Batteries installed at homes and businesses can also play a vital role in supporting the grid. Alone or combined with distributed solar, smart meters and electric vehicle charging, customer devices can be aggregated into a virtual power plant (VPP) to make more electricity available to the grid at peak demand times. Dominion will be developing a VPP pilot program under the terms of legislation passed this year. 

Advanced nuclear is still in Maybeland

The enormous expense of building large nuclear plants using conventional light-water technology has made development almost nonexistent in this century. Proponents believe new technology will succeed with scaled-down plants that can, in theory, be standardized and modularized to lower costs. Many political and tech leaders hope these small modular reactors (SMRs) will prove a carbon-free solution to the data center energy problem. 

It’s hard not to think they’re kidding themselves, or maybe us. Dominion Energy and Appalachian Power plan to develop one SMR each, with Dominion shooting to have one in service in 2035. Not only is this too late to meet today’s energy crunch, but a single SMR would add less energy to the supply side than new data centers add to the demand side each year. Virginia still needs near-term solutions, which means solar and batteries. 

Industry enthusiasts believe the 2035 timeline can be shortened, while critics say SMRs may never reach commercial viability. SMRs have to be able to compete on cost with much cheaper renewable energy, including wind, solar and emerging geothermal technologies, and cost parity is a long way off. The economic case for nuclear reactors also requires that they generate power all the time, including when the demand isn’t there, so SMRs need batteries almost as much as renewable energy does.

Finally, radioactive waste remains a challenging issue, as much (or more) for SMRs as for legacy nuclear plants. The U.S. has never resolved the problem of permanent storage, so nuclear waste is simply kept onsite at generating stations. The risk of accidents or sabotage makes it unlikely that communities will accept SMRs in their midst, especially if the idea is for SMRs to proliferate on the premises of privately-owned data centers near residential areas statewide.  

A nuclear technology with less of a waste problem is fusion energy. A fusion start-up plans to build its first power plant in Virginia in the “early 2030s,” if the demonstration plant it is building in Massachusetts proves successful. While fusion would be an energy game-changer, there are so many uncertainties around timeline and cost that only an inveterate gambler would bet on it helping us out of our predicament. 

Pretending climate change isn’t real won’t make it go away

We don’t have to talk about climate change to make the case for transitioning to carbon-free renewable energy, but global warming hovers in the background of any energy debate like an unwanted guest. If you need a primer or are even slightly tempted to say you “don’t know” whether human activity is responsible because you’re not a scientist, read the Intergovernmental Panel on Climate Change’s summary for policymakers. The continued habitability of the planet is too important for ignorance to be an acceptable dodge – and of course you, as a respectable candidate, would never stoop to such a thing.

Virginia codified its own action plan in 2020 with two major laws. One provides for the commonwealth to participate in the Regional Greenhouse Gas Initiative (RGGI), a multistate compact that uses auctions of carbon emission allowances to incentivize a shift away from fossil fuels and raise money for energy efficiency and climate adaptation. After taking office in 2022,  Youngkin removed Virginia from RGGI – illegally, as a court ruled. Virginia remains outside RGGI while the appeals process continues. 

The second law is the Virginia Clean Economy Act (VCEA), which creates a pathway for Dominion and APCo to transition to carbon-free electricity by 2050. The VCEA includes provisions requiring Dominion and APCo to invest in renewable energy, storage and energy efficiency and make renewable energy an increasing portion of their electricity supply. 

The VCEA contains special provisions for offshore wind, which I haven’t addressed here because  Trump is determined not to allow projects to move forward while he is in office. This is a shame, as there is bipartisan support in Virginia for this industry and the huge economic development opportunities that come with it. Still, Virginia’s Coastal Virginia Offshore Wind (CVOW) project is 60% complete and will start delivering power next year. Eventually, hopefully, it will be remembered as the first of many.

The VCEA also prohibited new investments in fossil fuel plants except under certain conditions. Dominion is currently seeking permission from the State Corporation Commission to build a $1.5 billion, fossil gas-fired peaker plant, citing data center demand and a need for reliability. Local residents, environmental organizations and ratepayer advocates oppose the plant and filed expert testimony showing that solar, storage and other less expensive technologies would better serve consumers.

In what passes for a bombshell in the energy space, Dominion was forced to admit last month that it had not obtained an independent review of the bid process before selecting its own gas plant over resources offered by third-party bidders.

“No regrets” solutions are progressive and conservative

As you’ve probably figured out by now, there is no perfect power source available today. And yet we would need new generation even if we stopped data center construction cold in its tracks – which isn’t in the plans. Solar is the cheapest, cleanest, and fastest source of generation, allowing us to preserve land – and keep options open – for the future. If the data center boom goes bust, having surplus clean energy on the grid will let us eliminate dirty sources faster, while saving money. 

Who would run against that?

First published in the Virginia Mercury on September 15, 2025.

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In Puerto Rico, customers are helping to keep the lights on. Could a Virginia program do the same?

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 Rooftop solar panels are helping generate electricity after Hurricane Maria destroyed much of the island electrical infrastructure. (Photo by Aaron Sutch/Solar United Neighbors)

Back in 2017, a hurricane destroyed Puerto Rico’s power grid. The island struggled to rebuild it, with limited success, and continues to experience a severe electricity shortage and frequent power outages. Customers and nonprofits have stepped into the void, installing solar panels on rooftops all over the island and backing them up with batteries. Today, 175,000 households have solar — about 1 in 7  – and at least 160,000 of those also have battery backup. Thousands of new installations go in every month.

The solar and batteries don’t just secure electricity for the customers who install them. Through programs like one managed by the solar company Sunrun, Puerto Rico’s grid can draw on the batteries to provide power in times of emergency, reducing the frequency and duration of power outages for everyone. 

Last month, as hurricane season got underway again, Puerto Rico’s grid operator announced it had reached a “major energy milestone.” In a statement posted on X, LUMA Energy said it “successfully dispatched approximately 70,000 batteries, contributing around 48 MW of energy to the grid.” That’s about as much as a gas peaker plant, with no need for fuel.

Puerto Rico’s experience shows how residents and businesses no longer need to be passive energy consumers. With a well-designed program they can play an active role in keeping the lights on in their communities, and get paid for it. 

This customer participation creates what is called a “virtual power plant” (VPP), sometimes also called a community power plant. The VPP may use battery aggregation, as in Puerto Rico, or demand reduction measures like temporary adjustments to smart thermostats or shifting electric vehicle charging to off-peak times. The more these measures are combined, the bigger the benefit to the grid, and the less a utility needs to invest in new generation to meet peaks in demand. 

VPPs offer such promise that this year Virginia’s General Assembly directed Dominion Energy to develop a pilot program for its customers, to be overseen by the State Corporation Commission. 

HB2346, from Del. Phil Hernandez, D-Norfolk, calls for a program of up to 450 MW to “optimize demand” with distributed energy resources, mainly batteries but also smart thermostats, electric vehicle charging and non-battery storage (e.g., electric hot water heaters). The proposal, due to be filed with the SCC by December 1, must include incentives for at least 15 MW of residential batteries. The legislation calls for stakeholder participation in the development of the VPP, with opportunities for public input. 

Dominion is also tasked with expanding the electric school bus program it began in 2019, which allows the utility to make use of school bus batteries at times of the day when the buses are not needed to transport children. As of March of 2024, Dominion had 135 electric buses in the program, spread across 25 school districts in Virginia. 

The impact of VPPs can be significant. This summer, California’s grid operator conducted an experiment to determine how much customer batteries could contribute to the needs of the grid. More than 100,000 residential batteries across California delivered an average of 535 MW of power from 7 to 9 p.m. on July 29, an output equivalent to that of a coal plant. 

Many other states are also using VPPs. Some are limited to solar-powered battery aggregation, like Xcel’s Colorado program and a new Texas program, while others involve demand response programs using smart appliances – anything that can be turned off and on remotely for short periods. In Michigan, DTE pays electric vehicle owners to charge at off-peak times, while Arizona Public Service’s VPP pays customers for the ability to access their smart thermostats to reduce peak demand.

Vermont’s Green Mountain Power runs two popular battery programs, one for people who own their own batteries and the other that leases batteries to customers. Both allow the utility to draw on the batteries when the power grid requires more capacity. 

While Virginia has not had a VPP program before, appliance-based demand response will be familiar to residents who opted into Dominion Energy’s “Smart Cooling Rewards” program.  Participants allowed the utility to remotely turn their air conditioners on and off for a few minutes at a time on hot days in exchange for an annual $40 payment. This helped the utility shave peak demand without affecting residents’ comfort. 

Dominion ended the cooling rewards program in 2022 and now offers a “Peak Time Rebate” program that rewards customers for reducing energy use during certain times of high energy demand. This program, however, requires residents to take affirmative measures themselves, like adjusting thermostats and delaying laundry. A well-designed VPP program, by contrast, takes the burden off the individual.

Josephus Allmond, a lawyer with the Southern Environmental Law Center who helped to craft the Virginia VPP legislation, told me in an email that he expects school buses and smart thermostats will make up most of Dominion’s program initially, but he’d like to see the residential battery component grow significantly from the initial 15 MW. Even 100,000 aggregated residential batteries would be a minor share of Dominion’s 2.8 million residential accounts, he pointed out.

I emailed Nathan Frost, Dominion’s general manager for new business and customer solutions, to ask for more information about the VPP program. Frost replied only that Dominion is “actively developing our VPP framework and will be engaging stakeholders soon.”    

Stakeholders, including customers themselves, are likely to have a lot to say. Clean energy advocates have long urged that VPPs, distributed generation sources and microgrids can contribute to a more efficient, secure and resilient grid, at less cost to everyone. 

No doubt recentering the grid around customers is too tall an order for a monopoly utility with a profit model based on centralized generation. But from what we’ve seen in Puerto Rico, California and elsewhere, harnessing even some of the power of customer-owned resources is a worthwhile project whose time has finally come.

This article was originally published in the Virginia Mercury on September 2, 2025.

Update: on September 15, Dominion sent this note:

Dominion Energy Virginia is preparing to file a virtual power plant (“VPP”) pilot proposal by December 1, 2025, pursuant to House Bill 2346 and Senate Bill 1100.  As part of this effort, Dominion Energy Virginia is seeking stakeholder input.  Please visit our website at https://www.dominionenergy.com/vpp.  The website contains an overview of the legislation, a timeline, an informational webinar about VPPs and the Company’s plan, and additional information.  We encourage all interested stakeholders to review the materials posted on the website and provide feedback through the link on the website by October 6, 2025.

If you have questions, please contact virtualpowerplant@dominionenergy.com. 

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With vetoes and destructive amendments, Youngkin acts to deepen Virginia’s energy woes

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This year’s General Assembly session notably failed to produce legislation addressing the widening gap between electricity demand and supply in Virginia. Legislators shied away from measures that would address the growing demand from data centers, but they also couldn’t bring themselves to improve the supply picture by supporting landowners who want to host solar facilities. By the time the session ended, a mere handful of bills had passed that could improve our ability to meet demand.  

Still, the initiatives that did pass offered positive steps forward on energy efficiency, distributed generation, interconnection of rooftop solar, energy storage, EV charging and utility planning. In addition, two data center-related bills passed requiring more planning and transparency during the local permitting process and tasking utilities with developing a demand response program to relieve some of the added burden on the grid.

Sadly, however, Republican Gov. Glen Youngkin decided to use his powers of veto and amendment to water down or scuttle the limited (and mostly bipartisan) progress legislators made. The only two data center bills were effectively killed, as were most energy bills – some by veto, others by amendments that made them worse than no action at all. 

There’s nothing very subtle going on here. The governor loves data centers and isn’t about to limit their growth, regardless of the consequences to residential ratepayers and communities. He’s also stuck in a rut of attacking the Virginia Clean Economy Act (VCEA), which prioritizes low-cost renewable energy over legacy fossil fuels. He won’t be in office when the chickens come home to roost in the form of an electricity shortfall and skyrocketing rates, but he’s setting up his party to cast blame on the liberal climate agenda.   

Data centers

The General Assembly failed to pass legislation that would have shifted responsibility for sourcing clean energy onto the data center operators. The only bill to pass that even makes energy a consideration in the siting of data centers is HB 1601, sponsored by Del. Josh Thomas, D-Gainesville. In addition to site assessment provisions at the permitting stage, it requires the utility serving the facility to describe any new electric generating units, substations and transmission voltage that would be required.

Limited as these provisions are, the governor proposed amendments to further weaken the bill, then added a clause requiring that for the bill to take effect, it has to be passed all over again in 2026. That’s a veto by another name. 

SB 1047 from Sen. Danica Roem, D-Manassas, requires utilities to implement demand-response programs for customers with a power demand of more than 25 MW, a way of  relieving grid constraints during times of high demand. The governor vetoed the bill, deeming it unnecessary. 

The only data center-related bill that did get the governor’s approval is one of questionable utility. HB 2084 from Del. Irene Shin, D-Herndon, merely requires the SCC to use its existing authority during a regular proceeding sometime in the next couple of years to determine whether Dominion and Appalachian Power are using reasonable customer classifications in setting rates, and if not, whether new classifications are reasonable. The SCC seems to be doing this already anyway, but maybe this lets our leaders claim they are doing something to protect residential ratepayers. Plus, they can now call it a bipartisan effort!

Utility reform

 With Virginia fixed on a collision course between growing demand for energy from data centers and our leaders’ refusal to support low-cost solar to provide the power, it is more important than ever that our utilities engage in transparent and comprehensive planning through the integrated resource plans (IRPs) filed with the State Corporation Commission. Over the course of last fall, the Commission on Electric Utility Regulation hammered out what I think is truly good legislation to ensure Dominion and APCo present the information the SCC and the public need to be sure our utilities are making the decisions that will improve our energy position and put the needs of ratepayers ahead of corporate profits. 

In vetoing SB 1021 from Sen. Scott Surovell, D-Fairfax, and HB 2413 from Del. Candi Mundon King, D-Dumfries, the governor offered this muddled statement: “The State Corporation Commission has the expertise and the authority to make requirements and changes to the integrated resource plan process. The Virginia Clean Economy Act is failing Virginia and those that champion it should stop trying to buttress this failing policy. But rather should be focused on procuring the dependable power needed to meet our growing demand through optimizing for reliability, affordability, and increasingly clean power generation.”

We get it: Johnny One-Note doesn’t like the VCEA. He said that already. But right now, APCo isn’t filing IRPs at all, and the SCC has been so frustrated with Dominion’s filings that it didn’t approve the last one, and demanded a supplement to the most recent one even before it was filed. Clearly the SCC could use a little help here.  

Distributed energy sources

Advocates for small-scale solar were more successful this year than their colleagues who focus on utility-scale projects. Bipartisan majorities seemed to agree that if we can’t or won’t site large solar farms, at least we should make it easier to put solar on rooftops and other small sites close to users.

Sadly, however, only one bill survived the governor’s scrutiny relatively unscathed, though it’s an important one for customer-sited solar. HB 2266 from Del. Kathy Tran, D-Springfield, resolves the interconnection dispute that has stalled commercial solar projects in the 250 kW to 3 MW size range, which includes most rooftop solar on schools. Tran’s bill requires the SCC to approve upgrades to the distribution system that utilities say are needed to accommodate grid-connected solar, a safeguard that will prevent the utility from larding on costs. The utility must then spread the costs across all projects that benefit from the expanded capacity. 

Youngkin’s proposed amendment rearranges the language a bit and places it into a new section of code, but does not otherwise change it. He then adds a provision in the tax code to make grid upgrades tax-deductible. I would have thought they would be anyway, as business expenses, but it can only be helpful to spell it out.  

Unfortunately, that’s it for the good news. 

HB 1883 from Del. Katrina Callsen, D-Charlottesville, and SB 1040 from Sen. Schuyler VanValkenburg, D-Richmond, contain several provisions aimed at increasing the amount of distributed solar in Virginia. Among other things, the legislation increases the percentage of Dominion’s renewable portfolio standard (RPS) obligation that must be met with renewable energy certificates (RECs) from behind-the-meter small solar projects, a change that would make rooftop and other distributed solar more profitable for homeowners and businesses. 

HB 1883 also increases to 3 MW from 1 MW the size of solar projects that could qualify for this favored category. Additionally, for the first time it would give all residential ratepayers the right to use power purchase agreements (PPAs) to install solar with no money down, and would increase the amount of electricity Dominion would build or buy from solar facilities on previously developed project sites. To give the market a chance to ramp up, Callsen’s bill excuses Dominion from having to meet its REC obligations from Virginia projects for an additional two years, pushing that date from this year to 2027. 

Among all those changes, the only one the governor liked is the idea of softening the requirements around REC purchases. His proposed amendment would make all REC compliance voluntary for four years. Effectively, Virginia would have no renewable energy requirements until 2028, undercutting solar development of any size. His preferred version scraps all of the provisions of Callsen’s bill, leaving no provisions to support solar development and replacing them with an open attack on the VCEA. 

I checked in with Callsen by email to get her reaction. She responded, “We sent the administration bipartisan legislation that protects ratepayers, gives Virginians more options for solar on our homes and businesses, and saves rural land. Rather than sign HB 1883 into law,” Callsen wrote, “the governor used this opportunity to attack the Clean Economy Act from 2020. Instead of looking at the past, our Administration should look around; we have a developing energy crisis and are reliant on importing energy to meet our needs.”

The governor also offered a destructive amendment to HB 2346 from Del. Phil Hernandez, D-Norfolk, and SB 1100 from Sen. Ghazala Hashmi, D-Richmond, legislation establishing a pilot program in Dominion territory for virtual power plants (VPPs), which aggregate customer solar and storage resources and demand response capabilities. Although VPPs don’t by themselves add electricity on the grid, they allow time-shifting and other efficiencies that make it easier for utilities to meet peak demand without having to build new generation. The payments utilities make to customers for this service can justify customers’ investments in things like solar, battery storage and smart appliances.  

Instead of improving on the pilot program, however, the governor’s amendment scraps it and calls for the SCC to convene a proceeding to talk about VPPs. On the plus side, Youngkin suggests that the conversation include Appalachian Power as well as Dominion, and consider allowing the service to be provided by either the utilities or third-party aggregators, the latter being the favored approach of many industry members. Still, the amendment pushes off any hope of a program for at least another year, until the SCC has made its recommendations. Since it would have been feasible to both start a pilot program this year and have the SCC consider parameters for a broader program in the future, it’s hard to see the governor’s amendment as a step forward. 

When I asked her for a comment, Hashmi did not mince words, saying it was “incredibly disappointing” that Youngkin chose to offer a substitute instead of signing the legislation.

“This legislation was the result of several months of conversation among a variety of stakeholders, including our utility companies, energy partners, and environmental groups. The Virtual Power Plant has the promise of helping Virginia meet the goals of our increasing energy demands. The Governor’s substitute shows that he is not serious about responding to the growth of Virginia’s energy needs,” Hashmi wrote.

Other solar bills drew outright vetoes, including Mundon King’s HB 2356, establishing an apprenticeship program to help develop a clean energy workforce. The bill requires participants to be paid prevailing wages, a provision that was a certain veto magnet for Youngkin, whose veto statement reads, “This bill will increase the construction costs which will ultimately be passed along to ratepayers, raising costs for consumers.”

Another bill that drew an outright veto was HB 2037 from Del. David Bulova, D-Fairfax. His bill would allow local governments to include in their land development ordinances a requirement that certain non-residential applicants install solar on a portion of a parking lot. 

The governor vetoed it because, he said, it would be expensive for developers, and if it weren’t, they would do it without having to be told. (It’s a strange objection. Does he not understand the whole concept of government acting in the public good? Well, maybe not; see the veto.)

Also vetoed was Shin’s HB 2090, changing the rules around multifamily solar. Admittedly I was not crazy about this bill; although it allows solar facilities to be placed on nearby commercial buildings instead of being restricted to the multifamily building itself, it also imports the requirement for minimum bills that has made other shared solar programs in Virginia unworkable for all but the low-income customers who are excused from the minimum bills. 

Maybe the trade-off would have opened new opportunities for apartment buildings serving low-income households, which would make it a plus on balance. But among his objections to HB2090, the governor noted that excusing low-income customers from high minimum bills would shift costs onto other customers. 

Energy efficiency

The governor vetoed SB 1342 from Sen. Lamont Bagby, D-Richmond, and HB 2744 from Del. Mark Sickles, D-Franconia, that would have pushed Dominion and APCo harder to provide energy efficiency upgrades to low-income homes, setting a target of 30% of qualifying households. 

He also vetoed SB 777 from Sen. Mamie Locke, D-Hampton, and HB 1935from Del. Destiny LeVere Bolling, D-Richmond, which would have established a task force to address the needs of low-income customers for weatherization and efficiency upgrades. The governor said it isn’t needed. 

If you notice a pattern here when it comes to helping low-income households with their energy burden, you are not alone. 

Reached on maternity leave, LeVere Bolling had this to say: “Across our Commonwealth, high utility bills are forcing Virginians to choose between essentials like groceries and medication and keeping their home at a safe temperature during hot summers and cold winters. Virginia has the 10th least affordable residential energy bills in the country. Over 75% of Virginia households have an energy burden higher than the 6% affordability threshold.” She added that the governor’s veto represents a “missed opportunity to address the pressing energy needs of Virginia’s most vulnerable communities.”

 Electric vehicles

The governor offered a substitute for a bill intended to support electric vehicle charging. As passed by the General Assembly, Shin’s HB 2087requires Dominion and APCo to file detailed plans to “accelerate transportation electrification,” including for rural areas and economically disadvantaged communities. It also allows the utilities to file proposed tariffs with the SCC to supply the distribution infrastructure necessary for EV charging stations. 

The utilities are also authorized to develop their own fast-charging stations, but only at a distance from privately-owned charging stations, with the SCC determining the proper distance. This provision responds to the request of gas station chains like Sheetz that say they want to expand their EV charging options, but don’t want to face unfair competition from utilities that can rate-base their investments.

The governor’s amendment would prohibit Dominion and APCo from owning EV charging stations at all; in addition, it would allow retail providers of EV charging stations to buy electricity from any competitive service provider. However, the amendment repeals the section of code that allows the utilities to recover costs of investments in transportation electrification.  

According to Steve Banashek, EV legislative lead with the Virginia Sierra Club, that “negates the purpose of the enrolled bill.” The amendment, he told me in an email, “removes the requirement for utilities to file for tariffs to support implementation of EV charging and to plan for transportation electrification growth via the IRP process, which is critical for speeding up the transition to electric transportation.” 

As for the prohibition on the utilities owning charging stations, Banashek noted that there are areas of the state where private businesses aren’t likely to do it, including in those economically disadvantaged and rural communities. If we don’t want these areas left behind, either the utilities have to step up, or the state does.  

Apparently, however, Youngkin doesn’t intend for the state to do it either. Along with his amendments to Shin’s bill, the governor also vetoed HB 1791 from Sullivan, creating a fund to support EV charging in rural areas of the state.  

Energy storage

The need for more energy storage seems like it would be one area of bipartisan consensus. Batteries and other forms of energy storage are critical to filling in the generation gaps for low-cost, intermittent forms of energy like wind and solar. 

But storage is also required to make full use of baseload sources like nuclear that either can’t be ramped down at times when there is a surplus of energy being produced, or where doing so makes it harder to recover the cost of building the generation. (The already-high projected cost of electricity from small modular nuclear reactors becomes even higher if you assume they don’t run when the power isn’t needed.) 

Sullivan’s HB 2537 increases the energy storage targets for Dominion and APCo, and includes new targets for long-duration energy storage. Unfortunately, Youngkin’s substitute language repeals the entire section of code that includes Virginia’s renewable portfolio standard as well as even the existing storage targets. It’s another bit of anti-VCEA flag-waving that won’t help anyone.  

Just in case you thought Youngkin might be adhering to conservative free market principles with some kind of consistency, I note that he signed HB 2540 and SB 1207 from two Republicans, Del. Danny Marshall of Danville and Sen. Tammy Brankley Mulchi of Clarksville, which provides a $60 million grant to a manufacturer of lithium-ion battery separators. 

I asked Sullivan for a comment on the governor’s action on his bill. He replied, “The Governor’s ridiculous ‘recommendation’ on HB 2537 was disappointing, but hardly surprising. This was not an amendment; he deleted everything – everything – having to do with energy storage, and turned it into a one-sentence bill which would repeal the entire Clean Economy Act.”

Moreover, wrote Sullivan, “HB 2537 was the most closely and extensively negotiated bill among stakeholders that I’ve been involved with since the VCEA. It had broad support – including from Dominion – and should have easily fit into the Governor’s ‘all of the above’ energy strategy and his economic development goals, since it would have brought all sorts of business, jobs, and companies to the Commonwealth.”  

Sullivan concluded, “Needless to say, we cannot agree to the amendment.  We’ll easily pass this bill next session, and I suspect Governor Spanberger will sign it.” 

Sullivan may be right that it will take a new administration before Virginia gets serious about meeting its energy challenges – if it does even then – but this session needn’t have ended in a partisan stalemate and near-zero progress. Most of the bills the governor vetoed or gutted were passed with the help of Republicans, making Youngkin’s actions less of a rebuke to Democrats than to the members of his own party who were simply trying to do their job. The results, sadly, are bad for everyone.

This article originally appeared in the Virginia Mercury on April 1, 2025.

UPDATE May 8: As expected, the General Assembly rejected the governor’s destructive amendments to the bills described. The governor then vetoed all but one. The exception is HB2346 from Hernandez and SB1100 from Hashmi, establishing a pilot program in Dominion territory for virtual power plants (VPPs). That one has been signed into law, along with Tran’s HB2266.

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It’s the fossil fuels, stupid

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For low-cost electricity, Virginia needs renewable energy — not gas plants

smokestack
Photo credit Stiller Beobachter via Wikimedia.

Southwest Virginia leaders are up in arms over electricity rate hikes. It’s understandable: Appalachian Power, which serves residents in 34 counties, has raised rates by over 46% since July 2021, and its rates now rank among the state’s highest. Last March, it sought another increase that would have resulted in residents paying $10.22 more per month on average. Although the State Corporation Commission’s November ruling granted APCo a much smaller rate hike, customers are raising a ruckus about the high bills.

Complaints have reached such a fever pitch that Del. James Morefield, a Republican who represents parts of five southwest Virginia counties, filed legislation this month to cap the rates APCo can charge. Over in the Senate, another southwest Virginia Republican, Travis Hackworth, has launched a direct attack on APCo’s monopoly: His legislation would allow any residential customer of APCo whose monthly bill exceeds 125% of the statewide average to buy electricity from another provider.  

These bills might be more performative than serious. But in this case, legislators themselves are at least partly to blame. In 2023, another Southwest Virginia Republican, Israel O’Quinn, drove legislation that excused APCo from having to write integrated resource plans (IRPs) – those pesky documents that tell regulators how a utility plans to comply with state laws and meet the needs of customers at least cost. Both Hackworth and Morefield voted for the bill. 

In 2024, O’Quinn also championed legislation that allows APCo to charge customers for costs of developing a small modular nuclear reactor. Hackworth also supported this new burden on ratepayers, though Morefield did not.

This year, the Commission on Electric Utility Regulation is promoting legislation to reform the IRP process, including making APCo file plans again. That may help. Fundamentally, though, the primary reason APCo’s customers are paying so much is that the utility remains so dependent on fossil fuels. As of the date of its 2022 IRP, APCo relied on coal and fracked gas for 85% of its electricity. Prices for both fuels spiked so high in 2021 and 2022 that utilities were left with huge bills to pay. 

 In 2022, APCo told the SCC it had spent an extra $361 million over budget on gas and coal. Virginia law allows fuel costs to be passed through to customers, so the SCC couldn’t prevent bills from rising to cover the outlay. Instead, the SCC allowed the company to recover the excess fuel costs from its customers over two years by charging roughly $20 more per month to residents, spreading out the pain but also extending it. O’Quinn’s 2023 legislation let the company finance the costs, which meant customers pay interest on top of the fuel costs.

 APCo was not the only utility passing along high gas costs. Dominion Energy Virginia also got caught off guard and asked to spread its excess fuel costs out over three years, adding an average of $15 to residential customer bills. Dominion customers are not happy either. 

 Gas prices have since dropped, and the remarkably short memories of legislators have led them to think they will now stay low forever. Having learned precisely nothing, they also insist that the only way to ensure an adequate supply of reliable, low-cost energy to serve the data center boom is for Virginia to increase its reliance on gas instead of transitioning away from it.    

 The evidence does not support this fantasy. Contrary to Republican orthodoxy, new renewable energy is cheaper than new fossil fuel generation. That’s why in 2024, 94% of all new power capacity in the U.S. came from solar, batteries and wind energy. Fossil gas made up just 4% of new generating capacity. Yes, many states are now proposing to build new gas plants, so the trend could reverse, but that’s only because the rush of data centers and new manufacturing has made large users desperate for more energy at any cost. 

 It’s true that solar, Virginia’s least-cost resource, only produces electricity when the sun shines. But even adding battery storage to solar energy, allowing it to serve as baseload power or a peak power resource, still results in lower electricity costs than the gas combustion plants that are used to produce electricity at peak times. (In Virginia, Del. Rip Sullivan, D-Fairfax, has introduced legislation to expand storage targets for Dominion and APco, including for long-duration storage.)

 The era of low-cost renewable energy is fairly new, but it is already impacting utility bills across the country. Virginia used to boast of its low rates; now there are 22 states with lower residential electricity rates than Virginia. And of those, U.S. Energy Information data shows that all but five generate a higher percentage of their electricity from renewable energy. 

With data centers proliferating across Virginia unchecked, utility rates are under even more pressure now. The Joint Legislative and Audit Review Commission data center study, released last month, warns that ratepayer costs will inevitably rise under an “unrestrained growth” scenario that reflects current policy.

It’s too early to tell whether any of the many bills to protect residential ratepayers and put guardrails on data center development will pass. For now, the governor and many Republicans seem to prefer to use the crisis to crush the transition to renewable energy. As in past years, Republicans have introduced bills to repeal the Virginia Clean Economy Act or undermine it in various ways.

Making solar more difficult and expensive to build is also part of the strategy. The party that used to stand for individual liberty and personal property rights now instead champions local governments that deny farmers the ability to put solar on their land.

Talking up fossil fuels and dumping on solar may make for good politics with the folks in rural districts. That doesn’t mean it’s in their interests. If high utility bills are what really matter, legislators should be pushing renewable energy and storage, not expensive gas plants. 

This article appeared in the Virginia Mercury on January 20, 2025. Interestingly, today writers at two other publications, Cardinal News and Bacon’s Rebellion, took up one aspect of this topic that I only alluded to, the fact that Virginia “imports” more electricity than any other state. Virginia politicians have been exercised on this topic for as long as I’ve been writing, and it has always struck me as strange. It’s not like we need to worry about the political ramifications of a trade imbalance with Pennsylvania.

But as Duane Yancey noted, those electrons coming into Virginia from elsewhere in PJM do tend to be dirty. That’s especially the case for APCo, which operates coal plants in West Virginia and has been ordered by the West Virginia Public Utilities Commission to run those plants at a 69% capacity factor, regardless of the economics. I have not been able to find out anywhere the percentage of APCo’s generation that comes from coal as opposed to gas, but the West Virginia PUC order unquestionably means APCo’s Virginia customers are paying too much.

One other thing to note on the topic of imports: when I wrote that APCo’s resource mix is 85% fossil fuels, that did not mean the other 15% is renewable. In fact, most of the rest is purchased power, meaning mostly fossil fuels also.

By the way, readers may notice a few discrepancies among the articles, which is worth explaining. Both Yancey and James Bacon cite figures for Virginia electricity rates and how they compare to other states that are different from my numbers. The reason is that they are working from combined rates for residential, commercial and industrial, where I’m using residential only. Virginia’s combined rate compares more favorably to those of other states than does its residential rate because our commercial and industrial rates are lower.

Virginia’s low commercial rates have been a major draw for data centers. But if you’re a residential customer right now, maybe that’s pretty cold comfort.

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The clean energy revolution will continue

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Photo credit iid.com

Eight years ago last week, I wrote a column titled, “Why Trump won’t stop the clean energy revolution.” Calling global warming a hoax, businessman and reality TV star Donald J. Trump had just been elected with a promise to save coal jobs and pull the U.S. out of the Paris climate accord. 

Climate activists were deeply distraught then, as now. I wrote in 2016, “Reading the news Wednesday morning was like waking up from a nightmare to discover that there really is a guy coming after you with a meat cleaver.”

But as I also wrote, there is only so much damage a president can do when technology, popular opinion and – especially – economics don’t support his agenda. Trump couldn’t save the coal industry (though he tried). Instead, his administration oversaw a 24% decline in coal employment. And where coal supplied 30% of U.S. electricity in 2016, by the time Trump left office it had fallen to 20%. 

In the intervening years, Trump seems to have lost interest in coal mining, even as he continues to embrace fossil gas production. His enthusiasm for gas fracking fits with his drill-baby-drill approach to energy, but it was also intended to win over voters in Pennsylvania, a major producer of shale gas. Ironically, the gas industry insists on calling methane “clean” precisely because burning it emits less CO2 than coal. 

While coal was dying, wind and solar were well on their upswing when Trump took office in 2017, and they continued to advance through his first administration. By 2020, wind and solar had become the cheapest forms of new electric generation. Today, renewable energy supplies more than 21% of the nation’s electricity, while coal’s share has dropped further, to just 16%. Trump or no Trump, technological advances and a thirst for cleaner energy continue to drive new wind and solar generation.

Indeed, the offshore wind industry – famously reviled by Trump – wasted no time last week in congratulating its erstwhile foe on his victory and insisting, hilariously, that his election is a big win for the industry. The first Trump administration, they noted hopefully, “laid out the fundamental framework for our modern offshore wind industry.”

Well, okay. From their lips to Trump’s ears. Trump is hardly known for consistency, and it is not impossible to imagine him softening his position on an industry that is creating well-paying jobs for the blue-collar workers who make up a portion of his base. His Virginia acolyte, Republican Gov. Glenn Youngkin, boasts of overseeing the building of the nation’s largest offshore wind farm. Why shouldn’t Trump pivot? 

Early in the Republican primaries, one candidate opined that all the solar panels and batteries sold in the U.S. are made in China. That wasn’t actually true. For years one U.S. company, First Solar, has ranked among the world’s top ten solar panel manufacturers. Among the domestic manufacturers of both EVs and batteries, one of the largest is Tesla, whose CEO Elon Musk is now a Trump darling. It is going to be fascinating to find out whether Musk uses his influence to benefit the clean energy transition generally, or only himself. 

Yet the notion that China dominates solar and battery production is also not wrong. China is eating our lunch on clean energy. Chinese companies produce 80% of the world’s solar panels and more than half of its electric vehicles. Sadly, perhaps, these are not cheap imitations of superior American products. They are world-leading technology. 

Chinese dominance of the world market was a major reason that President Joe Biden’s signature climate law, the Inflation Reduction Act (IRA), put so much emphasis on supporting domestic manufacturing. Tariffs on Chinese goods, Trump’s preferred approach, help U.S. companies compete for American consumers, but they don’t support an export market when other countries produce better goods for less money. Even at home, critics note, tariffs mostly just raise prices.

Yet Trump has vowed to repeal the IRA, and given that Congress passed it without Republican support, there is certainly a danger that a Republican Congress will comply. On the other hand, observers note that 80% of the manufacturing tax credits have gone to red states, and this August, 18 House Republicans signed a letter to Speaker Mike Johnson asking to keep the credits. 

I don’t want to sound too optimistic. Wait, let me rephrase that: I don’t feel optimistic at all. We are facing headwinds today that weren’t around in 2016. At that time, gains in energy efficiency meant electricity demand was not increasing, in spite of a growing population. With wind and solar displacing coal, there was a clear pathway for CO2 emissions from the electric sector to continue falling. 

Today, however, the skyrocketing demand for electricity from data centers threatens the progress we’ve made on clean energy. It remains to be seen whether artificial intelligence will unleash efficiency gains and novel technologies that can put carbon reductions back on track. Right now, though, tech companies are so desperate for power that they will take it from wherever they can get it, and regardless of carbon content.  (I notice, though, that they still want it to be cheap and are happy to greenwash it to meet their sustainability goals). 

Perhaps the biggest change from eight years ago is simply that we are that much closer to reaching catastrophic climate tipping points. 2023 was the warmest year on record, and 2024 is on track to surpass it. The effects are evident in the number and costliness of severe weather and wildfires made worse by global warming. (Just ask insurance companies.) It is frustrating, to say the least, to contemplate losing the next four years to an administration that thinks climate change wouldn’t be an issue if we would just stop talking about it.  

Yet Americans of all political stripes continue to support renewable energy by wide margins. And apart from a small minority of vocal climate deniers, most Americans want the U.S. to take stronger action on climate. 

This election revealed deep fault lines among the American public, but one thing we all have in common is the faith that our ability to solve intractable problems is stronger even than our tendency to wish the problems away. 

That’s why, even in the face of such serious headwinds, the clean energy revolution will continue. 

This column was originally published in the Virginia Mercury on November 12, 2024.

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Geothermal energy is having a moment. Could it power Virginia’s data centers?

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National Renewable Energy Laboratory

Drill down far enough into the earth, and you will hit hot rocks. Energy companies have used this heat to generate carbon-free electricity for more than a century. It’s an elegant concept, but it worked only where pockets of heat lay close to the surface, accompanied by steam ready-made to turn turbines. Those limitations confined geothermal power plants to geologically active areas like Iceland, parts of Indonesia, and a few locations in the American West. As of 2023, geothermal energy made up less than half of 1% of U.S. electricity generation. 

Suddenly, that is changing. New technology derived from oil and gas fracking methods is allowing energy companies to drill deep into the earth in places far from geologic activity. Wells can reach miles beneath the surface before branching out horizontally and creating fissures in hard, hot rock. Water injected into the wells comes back to the surface as steam to generate electricity. The steam is recaptured and re-injected to take up heat again, in a virtuous cycle powered by the earth itself. 

The benefits

These “enhanced geothermal” systems can produce 24/7 baseload electricity or fill in around variable sources like wind and solar. They can even be used like batteries to store energy, including for long durations.   

Unlike drilling for fossil fuels, geothermal companies avoid the shale formations that hold hydrocarbons, instead targeting non-porous rock. And since the product is not fossil fuel but steam, the technology produces zero-carbon energy without toxic or radioactive waste. 

Freed from geographic limitations and using the same technology and workforce as the oil and gas industry, geothermal energy is ready to take off fast. The U.S. Department of Energy (DOE) sees it spreading across the country to provide as much as 125 gigawatts (GW) of electricity by 2050. A global estimate suggests the industry could eventually produce 4,600 GW of electricity at a cost of 50 euros (around $55) per megawatt-hour or less.

In 2022 DOE launched an “Earthshot Initiative” to reduce the cost of enhanced geothermal energy in the U.S. to $45 per megawatt-hour (MWh) by 2035. If successful, that would put it at or below the cost of any other new, dispatchable energy source. 

Is this technology the answer to the surging demand for electricity from data centers and artificial intelligence? And could it allow Virginia to keep adding data centers without blowing up its climate goals?

The challenges

We do have to keep in mind that not all silver bullets prove to be sterling. Small modular nuclear reactors (SMRs) are evidence that some highly-anticipated technologies don’t follow the rosy timelines and price projections their boosters promise. 

Unlike SMRs, though, enhanced geothermal systems have already achieved commercial deployment. After successfully demonstrating the technology with a 3.5 MW pilot facility,  Fervo Energy signed a contract last year with Google to provide electricity for its data centers from a 115-MW enhanced geothermal power plant in Nevada. Fervo will deliver the power to the local utility, NV Energy, which will then charge a slightly higher price to Google via a proposed new “clean transition tariff.” Fervo has also signed a deal for an even bigger project that will deliver 400 MW to California utilities. 

Using a different fracking-based technology it calls a “Geopressured Geothermal System,” Houston-based Sage Geosystems recently agreed to supply 150 MW of power for Meta’s data centers beginning in 2027. Sage says it can make electricity not just by extracting heat but also by using pressure, an add-on technology that allows it to offer energy storage independent of steam production. 

Both Fervo and Sage say their methods can be used almost anywhere, and both cite advantages over established energy sources. Like wind and solar, geothermal is renewable and carbon-free, but it isn’t dependent on weather. It also doesn’t require fuel sources like coal and gas that are highly polluting and sometimes unreliable in extreme weather. 

Finally, with a small physical footprint relative to the energy produced, geothermal facilities could be located in urban areas or next to data centers and other large customers without the need for major new transmission lines. 

But of course, the fact that geothermal technology can be used anywhere does not mean it can be deployed profitably everywhere, or at least not yet. A map compiled by the National Renewable Energy Laboratory shows the most ideal areas are still in the West, where hot rocks lie within a few kilometers of the Earth’s surface. In most of the eastern U.S., deeper wells would be needed to reach the same temperatures. For this reason, DOE sees the technology proving out in the West first before spreading east.

But favorability is not purely a function of geology, according to Ben Serrurier, manager of government affairs and policy at Fervo. I wanted to know how soon geothermal systems could start providing electricity to the world’s largest concentration of data centers, in Northern Virginia. He said the biggest impediment for the industry is not location, but the high cost of capital and the paucity of government support compared to SMRs, hydrogen, and other new technologies. 

In spite of these challenges, Serrurier predicted geothermal would be deployed in Virginia by the latter part of the 2030s, noting that his company is already ahead of DOE’s projected timeline for the technology’s maturation. Eastern data centers present an especially attractive market, he said, because demand is increasing so quickly, and utilities have limited options for carbon-free energy. 

Alas, observers of the data center industry know that while renewable energy is nice to have, cheap energy is even nicer. So I wanted to talk about cost.

Serrurier told me Fervo’s first project will deliver power to NV Energy at a price of $107 per MWh, and Google will pay slightly more than that to the utility. That is twice DOE’s target cost for 2035, yet it still puts the price below the U.S average of 13.1 cents per kilowatt-hour ($131 per MWh) for commercial customers, and competitive with the average Nevada commercial rate of 10.92 cents, according to Energy Information Agency data.

That price is, however, more than the 9.54 cents/kWh that the average commercial customer in Virginia pays for electricity derived primarily from fossil fuels. And Fervo’s price is for drilling in the West, not in the less favorable geology of the East.

But heck, anywhere in the country, 10.7 cents for zero-carbon baseload power — with no waste to be cleaned up and no added healthcare costs from pollution — still sounds compelling. Google may have chosen to be a first mover in order to show leadership and promote a new technology, but it is also locking in a solid deal.

Sage does not make its costs public, but Lance Cook, the company’s chief technical officer, told me their process is competitive with combined cycle gas plants when the cost of fossil gas is above $6 per thousand cubic feet. (According to the Energy Information Agency, the price of gas is currently below that level in most states, though gas prices are famously volatile.)  

An additional benefit, said Cook, is that a geothermal plant could be co-located with a data center, foregoing a grid connection and obviating the need for transmission lines. “We can turn electricity into data,” he told me. “It is much easier to connect data than to wait for a grid connection.” 

Both Cook and Serrurier are confident that geothermal will beat new nuclear  price-wise, which today sounds like a safe bet. Analysts warn that cost continues to be a significant issue for the nuclear industry. Current projections for the cost of electricity from SMRs start at $142/MWh. 

Cook noted that Sage’s technology can also provide long-duration energy storage that isn’t dependent on the heat of the earth. This approach can be used anywhere to turn solar and wind power into baseload energy. Sage’s website claims it can achieve this for less than the cost of batteries or pumped hydro.  

With all this promise, enhanced geothermal has been slow to catch the attention of Virginia utilities and policy-makers. The Virginia Code includes geothermal energy in its definition of renewable energy, but enhanced geothermal is not on the list of energy sources that qualify for the state’s renewable portfolio standard (RPS). 

The General Assembly did pass legislation this year from Senate Majority Leader Scott Surovell, D-Fairfax, to include a similarly-named, but quite different, kind of geothermal energy – geothermal heating and cooling systems, also known as ground-source heat pumps – in the RPS. Geothermal heat pumps use the near-constant temperature of the ground just a few feet under our feet to help heat and cool buildings, much as air-source heat pumps do but with greater efficiency. A working group under the auspices of the State Corporation Commission is currently trying to figure out how to award renewable energy certificates (RECs) for a technology that does not produce electricity. 

But drilling down two miles or more and generating electricity at the utility level is quite another thing. Making enhanced geothermal systems eligible for the RPS would be essential to putting the technology on an even footing with other renewables for use in Virginia.

In an email, Surovell told me, “I have read about the Google geothermal project and believe there is significant potential in Virginia.I understand it is different, but we need to do all we can to try to meet the demand for energy created by data centers without upsetting the carbon-free goals we set with the Virginia Clean Energy Act.” He added, “Geothermal also has the potential to create thousands of well-paying trade jobs in drilling and pipefitting in the Commonwealth.”   

I also contacted Dominion Energy Virginia to gauge the utility’s level of interest. Dominion is facing an enormous challenge to meet the explosion of demand from data centers. Its 2023 integrated resource plan (IRP) proposed building new gas plants as early as 2028 and an SMR in 2034, but no geothermal energy. The plan failed to meet the carbon-cutting requirements of Virginia law, so the company ought to see the need to up its game for its 2024 IRP, due in October. 

Dominion’s answer was not encouraging. Aaron Ruby, Dominion’s director of Virginia and offshore wind media, responded with an email that made reference to the working group for geothermal heat pump RECs.

 “We’re certainly looking at the potential for geothermal in Virginia. The SCC is leading a geothermal working group, and there are lots of knowledgeable experts taking a close look. Most of the potential in Virginia appears to be geothermal heat pumps, with maybe less potential for power generation. The process is ongoing, so still more to learn.”

Echoing Gov. Glenn Youngkin’s rhetoric on energy, he added, “As you know, we’re experiencing an unprecedented growth in power demand. Reliably serving that growth requires an ‘all of the above’ approach, including offshore wind, solar, battery storage, next generation nuclear and natural gas. Emerging technologies like clean hydrogen, longer-duration storage and geothermal could also play a role.”

It’s not a great sign that Dominion ranks geothermal dead last. The company seems quite content to keep adding data centers to its customer base with no plan to meet its climate commitments. 

Data center developers, on the other hand, could vote with their metaphorical feet. If Dominion will not bring geothermal technology to Virginia data centers, maybe the data centers will go to the geothermal technology. Some data center operators say they need to be in Virginia to be close to customers in the East, but the industry’s rapid spread into other states shows many have flexibility. So why should they face public opposition and rising electricity rates in Virginia when they can go to Utah, Nevada or Texas to access low-cost, zero-carbon energy delivered 24/7 from a source that might even be located onsite? 

Especially since, in so doing, they would provide the capital and demand required for enhanced geothermal to achieve DOE’s goals ahead of time, and hasten the day when Dominion presents an IRP with a real zero-carbon plan.  

This article was previously published in the Virginia Mercury on September 10, 2024.

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Amazon claims to power all its operations with renewable energy. Yes, and I’m the Queen of Sheba.

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Greenpeace protesters at the site of Amazon’s HQ2 in Arlington, Virginia, in 2019 called out the company for failing to make progress towards its commitment to power the cloud with renewable energy. Since then, the company has actually increased its carbon emissions. Photo courtesy of Greenpeace.

When Amazon announced this month that it had achieved 100% renewable energy seven years ahead of schedule, that sounded like really good news for Virginia. Amazon owns more data centers here than anyone else, and data center energy demand is driving Dominion Energy Virginia’s plan to renege on its climate commitments, keep dirty coal plants online and build expensive new gas plants and transmission lines.  

Unfortunately, Amazon’s announcement is so full of asterisks it looks like a starry night. 

Let’s start with the good news. Amazon’s claim that it has purchased enough renewable energy to “match” its energy use is likely true, though its sustainability report doesn’t reveal essential details like how much energy the company uses. Amazon also says it is the largest corporate purchaser of renewable energy in the world, an impressive achievement. 

Some of that renewable energy is in Virginia, so it is reasonable to say it serves the company’s data centers here. A map on Amazon’s website shows the company has invested in 19 solar farms in Virginia, with a capacity that totals around 1,386 MW  – about a quarter of all solar installed in Virginiato date. That’s terrific. If every company operating in Virginia did as much, we’d be rolling in solar, figuratively speaking. 

So what am I complaining about? 

One problem is that the energy appetite of Amazon’s data centers in Virginia far outstrips the output of all of its solar farms here. The other problem is that producing renewable energy in the middle of the day can only very loosely be said to “match” energy used at other times of the day and night. Meeting energy demand on a 24/7 basis is harder, and Amazon isn’t even trying. 

Let’s start with the numbers. Because the sun doesn’t shine all the time, a large solar array produces, on average, 22-25% of what it produces on a cloudless day at noon. (That percentage is known as the facility’s capacity factor.) At a 25% capacity factor, Amazon’s 1,386 MW worth of solar panels produce enough electricity to “match” about 347 MW of demand. 

Amazon keeps its energy demand in Virginia a secret, but we can be pretty sure its 110 data centers here use way more than that. A 2019 Greenpeace report estimated Amazon’s Virginia data center demand at 1,700 MW in operation or under construction, an amount that would call for 6,800 MW of solar. Amazon rejected Greenpeace’s estimate at the time, but it didn’t supply a better one. More recent estimates suggest Amazon’s energy appetite in Virginia is on its way to 2,700 MW, enough to require the output of around 11,000 MW of solar. 

Luckily for us, Virginia is part of PJM, a regional transmission grid that covers all or parts of 13 states plus Washington, D.C. Generation sources located anywhere in the region can serve a Virginia customer, and Amazon’s map shows it has utility solar and wind projects in several PJM states. By my count, these add up to as much as 4,000 MW of additional renewable energy that could be allocated to Virginia data centers, if Amazon had no other operations in those states that it wanted to power. (Which, however, it does.) 

Adding together its solar in Virginia and elsewhere in PJM still leaves Amazon short of what it likely needs. So, if the company is correct that it has secured enough renewable energy to match all of its demand, a lot of those facilities must be in other regions or other countries. Yet the climate benefit of Amazon’s solar farms in (for example) Spain, which gets more than 50% of its electricity from renewable energy, is significantly less than the climate benefit of solar in PJM, where the percentage of wind and solar combined still hangs in the single digits. 

I will – almost – give Amazon a pass on this point. PJM has been so appallingly slow to approve new generation that Amazon could well have as many projects in the “queue” as online. PJM claims it will catch up in the next year and a half, and when that happens, perhaps Amazon won’t feel the need to obfuscate.

Even if Amazon were “matching” all its energy needs with wind and solar in PJM, though, it’s the second problem that troubles me more. Building solar and wind is cheap; Amazon very likely makes a profit on it. Actually ensuring renewable energy provides all the juice for the company’s operations every hour of every day, on the other hand, would require a heck of a lot of expensive energy storage. And Amazon is not doing that.

Without energy storage, solar delivers electricity only while the sun is shining. The rest of the time, Amazon’s data centers run on whatever resource mix the local utility uses. In both Virginia and PJM’s territory, fossil fuels make up the great majority of the mix. Building more Amazon data centers in Virginia increases the burning of fossil fuels, causing more pollution and raising costs that are borne by the rest of us. 

The self-styled climate hero turns out to be a climate parasite, harming people to make itself look good.

Combining renewable energy with storage to achieve true carbon neutrality isn’t prohibitively expensive. Other leading tech companies seem to be making that extra effort, with Google notable for its commitment to meeting its energy demand with renewable energy and storage on a 24/7 basis.

Amazon’s failure to rise to this challenge explains why, in spite of its massive investments in wind and solar, the company’s carbon footprint actually rose by 34% since the launch of its Climate Pledge in 2019, when it set a target of net zero carbon emissions by 2040. 

That explains why, a year ago, the Science Based Targets initiative, a U.N.-backed organization that monitors corporate net-zero plans, removed Amazon from a list of companies taking action on climate goals. According to press reports, Amazon failed “to implement its commitment to set a credible target for reducing carbon emissions.”  

Among those least impressed with the company’s efforts are its own workers. Last year, Amazon Employees for Climate Justice accused the company of failing in its climate commitments, and the group released its own report this month alleging multiple climate failures, including using “creative accounting” to inflate its achievements.

If Virginia is serious about meeting the climate challenge, we can’t blindly accept rosy claims from corporations whose central goal is not sustainability, but growth. Data centers whose energy demand isn’t met on a 24/7 basis from zero-carbon sources located on the same grid are not part of the climate solution, they are part of the problem. And currently, Amazon’s data centers are making the problem worse.

This article was first published in the Virginia Mercury on July 24, 2024.