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:
Pennsylvania Governor Josh Shapiro has announced a plan to fast-track and subsidize power plants and hydrogen projects in the state.
- The initiative aims to provide hundreds of millions of dollars in tax breaks for projects that supply electricity to the grid and produce hydrogen.
- Shapiro's plan includes creating the Pennsylvania Reliable Energy Siting and Electric Transition Board to streamline permitting and support new energy projects.
- The proposal comes as Pennsylvania faces an energy crunch that could raise electricity bills and seeks to position the state as a leader in energy innovation.
The U.S. Energy Information Administration's (EIA) latest Short-Term Energy Outlook (STEO) forecasts that:
- OPEC+ production cuts will keep crude oil prices near current levels through the first quarter of 2025, with gradual increases in production and weak global oil demand growth leading to higher global oil inventories and lower prices in the second half of 2025 through 2026.
- The report also predicts a 4% increase in U.S. distillate fuel oil consumption in 2025, flat motor gasoline consumption, and rising natural gas prices through 2026.
- Additionally, U.S. electricity generation is expected to grow by 2% in 2025 and 1% in 2026, driven by renewable energy sources.
- The share of U.S. generation from solar is projected to increase from 5% in 2024 to 8% in 2026, while natural gas generation is expected to decline.
The U.S. Energy Information Administration (EIA) reports that solar and battery storage will lead new U.S. generating capacity additions in 2025.
- The EIA expects 63 gigawatts (GW) of new utility-scale electric-generating capacity to be added to the U.S. power grid in 2025, a 30% increase from 2024.
- Solar and battery storage will account for 81% of the total capacity additions, with solar making up over 50% of the increase.
- Texas and California will contribute significantly to the new solar capacity, while battery storage is expected to set a record with 18.2 GW of new capacity.
- Wind and natural gas will also see capacity additions, with Texas, Wyoming, and Massachusetts leading in wind capacity, and Utah, Louisiana, and Nebraska leading in natural gas capacity.
The U.S. Energy Information Administration (EIA) reports that planned retirements of U.S. coal-fired electric-generating capacity are set to increase by 65% in 2025, with 12.3 gigawatts (GW) of capacity expected to be retired.
- This includes 8.1 GW of coal-fired capacity, 2.6 GW of natural gas capacity, and 1.6 GW of petroleum-fired capacity.
- The largest coal plant to retire will be the 1,800-megawatt Intermountain Power Project in Utah, which will be replaced by an 840-MW natural gas combined-cycle power block.
- The report highlights the ongoing transition in the U.S. energy sector towards more efficient and sustainable energy sources.
