Proposed Ohio Law Would Hinder State's Renewable Energy Development

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land Texas)

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Summary

A proposed law poised to go up for a vote in the Ohio senate appears to preclude wind and solar developments from being built in the state, positioning natural gas as being key in the Ohio's future power projects.

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SB-294

Introduced late last year and potentially poised to come out of committee hearings, leading to a vote on the state senate floor, Ohio's SB-294 sets stringent criteria for the types of power generation allowed in the state, establishing a minimum capacity factor that wind and solar generation don't meet. Advanced nuclear technology doesn't fare well under the bill either, while natural gas generation comes away the obvious winner.

At the heart of SB294 is the requirement that the state "employ affordable, reliable, and clean energy sources," establishing definitions for these three criteria that preclude solar, wind and advanced nuclear power technologies.

"Affordable Energy" Definition

Among SB294's criteria for "affordable energy" are that it "has a stable and predictable cost" and "provides a cost-effective means of heating, cooling, and generating electricity." In addition to setting some additional cost criteria, the bill is forthright in what it doesn't define as affordable: "'Affordable energy source' does not include advanced nuclear energy technology," states Section 1(b) of the bill.

"Reliable Energy" Definition

It's in large part the criteria for "reliable energy" that hinders future wind, solar and other renewable energy development. Among the criteria for reliability are that the power is readily available at all times, suffers minimal interruptions during high-use periods, and has the ability to ramp up or down to appropriate levels within an hour. Wind and solar output can vary in output and availability according to solar strengths and windspeeds.

The obvious renewable-killing criterion, however, is that the bill defines "reliable energy" as having a minimum capacity factor of 50%, representing the amount of actual power output in relation to a facility's maximum generation (nameplate) capacity. It's here that wind and solar falter as their capacity factors are not this high.

A March 2025 report from the U.S. Department of Energy (DOE) listed 2024 typical capacity factors in the U.S., highlighting wind's 34.3% capacity factor and the even lower 23.4% figure for solar. In a separate study, the Oak Ridge National Laboratory listed the median national capacity factor of hydropower as 35.3%, suggesting that few power-generating dams would meet the 50% requirement. Hydro's capacity declines even more in times of lower precipitation.

SB294's capacity factor requirement also seemingly precludes new coal-fired construction, as facilities burning the black rock came in at 42.6% in the DOE study.

In fact, the DOE report specifically lists only three sources of power with capacity factors above 50%:

• Nuclear (92.3% capacity factor). Newer nuclear technologies do not qualify as "affordable" under SB294.
• Geothermal (65%). Industrial Info's Global Market Intelligence (GMI) Power Plant and Project databases show no existing geothermal plants in Ohio and no plans to deploy the technology on a commercial scale, although the state's Miami University is reconfiguring a chiller unit to run from geothermal energy. Click here to see the related project report from IIR's Industrial Manufacturing Project Database.
• Combined-cycle natural gas-fired generation (59.9% capacity factor). This hits the legislation's sweet spot. Notably, simple-cycle gas-fired configurations come in at the lowest capacity factor listed by the DOE, at 17.2%.

Natural gas has another important quality going for it: The proposed Ohio bill lists it as a form of "clean energy."

"Clean Energy" Definition

SB294's definition of "clean energy" includes most forms of renewable energy as well as hydrocarbons that meet the ambient air quality criteria established by the Clean Air Act. Clean Air Act-compliant fuels obviously includes natural gas, and presumably every type of fuel burned at power plants in the U.S. planned after the act's initial 1970 passage.

A separate provision of the Ohio bill specifically names nuclear and gas-fired generation as being "clean energy sources."

Natural Gas Classified as "Reliable," "Affordable" and "Clean"

One fuel type emerges as the clear winner from the proposed legislation: natural gas, which either fits or is named specifically as meeting the bill's requirements of being reliable, affordable and clean, according to SB294's definitions.

The Results In summary:

• Natural gas meets the three criteria of being reliable, affordable and clean, meaning gas-fired projects would seemingly have the easiest path to reaching construction under the legislation.
• Nuclear power is listed as a clean energy source, but is specifically excluded from the bill's definition of "affordable," precluding it from future development in the state.
• Similarly, renewable energy sources are listed as clean, but their low-capacity factors don't meet the bill's criterion for being reliable, precluding, if not eliminating, wind and solar developments.

Ohio Natural Gas Projects on the Horizon

Industrial Info is tracking more than a dozen capital natural-gas fired projects in Ohio that are either currently under construction or in the planning or engineering stages. These range from grassroot facilities to unit additions and power uprates at existing plants. While plans for a 1,300-megawatt (MW) facility are in an early stage, another large gas-fired project, the 950-MW Trumbell Energy Center in Lordstown, is in the process of wrapping up construction.

The Bill's Future

Having faced three hearings in the Ohio Senate's Energy Committee, the bill is poised to move to the floor for a vote soon, which if passed, would send the legislation on to the state's House for further discussion, amendments and another vote.

Key Takeaways

• SB294, under review in Ohio's state senate, sets criteria that future energy projects must use fuel sources defined as "affordable," "reliable" and "clean."
• Under the established definitions, natural gas emerges the clear winner for future power developments in the state, while development of nuclear energy and renewable forms of power are severely limited.
• Industrial Info is tracking more than a dozen active capital projects for natural gas-fired plants in the state.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).