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Released October 18, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)-- As major energy companies rethink their energy transition strategies, U.S. utility company Dominion Energy Incorporated (NYSE:D) said it's embracing an all-of-the-above plan to address an expected increase in demand.
Ed Baine, the president of Dominion Energy Virginia, said he's expecting to see the largest surge in power demand since the economic boom that followed the end of World War II in the 1940s.
"No single energy source, grid solution or energy efficiency program will reliably serve the growing needs of our customers," he said Tuesday. "We need an 'all-of-the-above' approach, and we are developing innovative solutions to ensure we deliver for our customers."
The U.S. Department of Energy said it's already seen an increase in electricity demand due to warmer summers. Compared with last year's levels, demand is expected to show a 3% increase this year and another 1% increase in 2025.
From just commercial and industrial sectors, demand is expected to show a 2% increase from year-ago levels and post another 2% increase next year.
For Dominion, it's already made strides in building out its infrastructure, completing 123 new transmission projects that included nearly 90 miles of transmission lines this year.
On the supply side, the company said that around 80% of its power over the next 15 years will come from carbon-free technology.
That will derive from everything from as much as 6 gigawatts (GW) of new offshore wind capacity, including 2.6 GW from the Coastal Virginia Offshore wind project, the largest project of its kind in the United States. Small modular reactors (SMRs), an emerging option in the energy transition, could come online for Dominion in the 2030s. For more information on the CVOW project and Dominion's overall project activity, see October 17, 2024, article - Dominion Vows to Build Out Wind, Solar on Atlantic Coast.
The company in September said it would evaluate SMRs at its 2-GW North Anna nuclear power plant in Virginia. SMRs are smaller-scale nuclear reactors that offer a more versatile and smaller footprint compared to conventional nuclear reactors. Subscribers can click here for a profile on the North Anna plant.
But the remaining 20% of demand will be met by natural gas, which is still a polluting fossil fuel due to its chemical composition. Natural gas contains methane, which has a far greater warming potential than carbon dioxide.
Dominion says that natural gas, however, remains "a critically important source of reliable backup power to ensure the lights stay on when the company's growing wind and solar fleet are not producing electricity."
Both Dominion's mix and its prices are below national trends. The U.S. Department of Energy sees natural gas accounting for about 40% of total electricity demand, and Dominion says its rates are 14% below the national average.
But it plans also suggests that fossil fuels will remain important for the global economy for years to come. In its own report on the grid, utilities, global engineering and consulting firm Black & Veatch Incorporated (Overland Park, Kansas) found that large-scale renewable projects are something of a concern for utilities because of their intermittent nature.
Battery storage and natural gas can address that, but the energy transition has been slower to advance than climate advocates had expected. From BP (NYSE:BP) (London, England) to Shell (NYSE:SHEL) (London), major energy companies are scaling back on renewable energy investments in favor of fossil fuels.
BP at the start of the decade had pushed for a 40% mix in renewables, but scaled that back to 25% last year. A recent report from the Reuters news service noted that the company has now all-but abandoned its transition strategy, suggesting the path to a carbon-free economy will be a long one.
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 200,000 current and future projects worth $17.8 Trillion (USD).
Ed Baine, the president of Dominion Energy Virginia, said he's expecting to see the largest surge in power demand since the economic boom that followed the end of World War II in the 1940s.
"No single energy source, grid solution or energy efficiency program will reliably serve the growing needs of our customers," he said Tuesday. "We need an 'all-of-the-above' approach, and we are developing innovative solutions to ensure we deliver for our customers."
The U.S. Department of Energy said it's already seen an increase in electricity demand due to warmer summers. Compared with last year's levels, demand is expected to show a 3% increase this year and another 1% increase in 2025.
From just commercial and industrial sectors, demand is expected to show a 2% increase from year-ago levels and post another 2% increase next year.
For Dominion, it's already made strides in building out its infrastructure, completing 123 new transmission projects that included nearly 90 miles of transmission lines this year.
On the supply side, the company said that around 80% of its power over the next 15 years will come from carbon-free technology.
That will derive from everything from as much as 6 gigawatts (GW) of new offshore wind capacity, including 2.6 GW from the Coastal Virginia Offshore wind project, the largest project of its kind in the United States. Small modular reactors (SMRs), an emerging option in the energy transition, could come online for Dominion in the 2030s. For more information on the CVOW project and Dominion's overall project activity, see October 17, 2024, article - Dominion Vows to Build Out Wind, Solar on Atlantic Coast.
The company in September said it would evaluate SMRs at its 2-GW North Anna nuclear power plant in Virginia. SMRs are smaller-scale nuclear reactors that offer a more versatile and smaller footprint compared to conventional nuclear reactors. Subscribers can click here for a profile on the North Anna plant.
But the remaining 20% of demand will be met by natural gas, which is still a polluting fossil fuel due to its chemical composition. Natural gas contains methane, which has a far greater warming potential than carbon dioxide.
Dominion says that natural gas, however, remains "a critically important source of reliable backup power to ensure the lights stay on when the company's growing wind and solar fleet are not producing electricity."
Both Dominion's mix and its prices are below national trends. The U.S. Department of Energy sees natural gas accounting for about 40% of total electricity demand, and Dominion says its rates are 14% below the national average.
But it plans also suggests that fossil fuels will remain important for the global economy for years to come. In its own report on the grid, utilities, global engineering and consulting firm Black & Veatch Incorporated (Overland Park, Kansas) found that large-scale renewable projects are something of a concern for utilities because of their intermittent nature.
Battery storage and natural gas can address that, but the energy transition has been slower to advance than climate advocates had expected. From BP (NYSE:BP) (London, England) to Shell (NYSE:SHEL) (London), major energy companies are scaling back on renewable energy investments in favor of fossil fuels.
BP at the start of the decade had pushed for a 40% mix in renewables, but scaled that back to 25% last year. A recent report from the Reuters news service noted that the company has now all-but abandoned its transition strategy, suggesting the path to a carbon-free economy will be a long one.
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 200,000 current and future projects worth $17.8 Trillion (USD).
