U.S. Utilities Warn of Economic Risks Amid Rising Renewable Energy Demand

Executives from major U.S. utility companies have issued a stark warning that failing to meet the surging demand for renewable energy could threaten the nation’s economic growth. NextEra Energy CEO John Ketchum highlighted that the demand for renewable energy is projected to triple over the next seven years, driven largely by the rapid expansion of data centers to support artificial intelligence technologies. In the second quarter, NextEra added 3,000 megawatts of renewable and storage projects to its backlog, reflecting a robust investor confidence that has seen the company’s shares rise by 24% this year. Rebecca Kujawa, CEO of NextEra Energy Resources, acknowledged the challenges in quantifying the specific demand from data centers, noting that it may take several years for utilities to fully adapt to and serve this growing need. The conversation around energy sources is complex, with natural gas expected to play a significant role in meeting power demands, despite ongoing debates about the optimal energy mix between gas and renewables. Ketchum emphasized the importance of natural gas as a transitional fuel during the shift to renewable energy, while also pointing out that renewables are generally more cost-effective and quicker to deploy. As power demand continues to rise, there is increasing interest in nuclear energy as a stable, carbon-free option. Ketchum revealed that NextEra is exploring the possibility of restarting the Duane Arnold nuclear plant in Iowa, pending a comprehensive evaluation of the feasibility.