The Power Source- Monday, February 3, 2025

Happy Monday! Welcome to The Power Source- your go-to weekly newsletter that delivers the latest trends, news and updates in the world of #PowerSolutions. I hope you enjoy the brief and check back for more insights and news each week!

QUICK MARKET INSIGHTS

• Demand continues to strain the supply chain. Major electrical equipment- Generators, Transformers, Switchgear from large OEMs have lead times anywhere of 60 months or longer.
• AI users continue to lead the charge of demand for electrical gear, with no let up in sight.
• Mission critical infrastructure, large commercial users and users focused on electricfication continue to drive demand for resilency and redundancy in securing power, putting continued pressure on the industry.
• Innovative companies, like Laurkat Consulting, LLC , are helping companies to procure generators, transformers, switchgear and other like-kind electrical equipment QUICKLY. We're also purchasing obsolete gear.

ENERGY NEWS

1. Executive Order- Declaring a National Enegery Emergency (link)

On January 20, 2025, President Trump declared a national energy emergency due to the inadequate energy supply and infrastructure in the United States. The declaration goal is to expedite energy projects, facilitate domestic energy production, and improve the nation's energy security. It includes measures to utilize emergency authorities, issue fuel waivers, and prioritize energy projects on federal lands.

2. New solar plants expected to support most U.S. electric generation growth (link)

On January 24, 2025, the EIA outlined the expectation for U.S. renewable capacity additions, especially solar, to drive growth of the total U.S. Power generation over the next two years. They estimate that 26 gigawatts (GW) of solar capaity will be added to the power sector in 2025. For context, this is double of 2023 solar capacity additons.

3. Electric power sector has driven rising Pennsylvania natural gas consumption since 2013 (link)

On January 29, 2025, the EIA outlined the signifficant increase of Natural Gas- Fired electric power generation in PA as its being used as the main fuel source for electric power generation, accouting for 57% of the electricity generated in PA as of October 2024. See graph below.

4. Natural gas spot prices fell across key regional trading hubs in 2024 (link)

On February 3, 2025, EIA outlined energy pricing across the major hubs seeing a decline across the region. See graph below.