The Law of Energy Abundance: Addressing Electricity Demand and Supply Challenges
As electricity demand in the United States experiences its first upward trend in decades, driven by factors like artificial intelligence, data centers, electric vehicle proliferation, and manufacturing advancements, the energy landscape is undergoing significant changes. This rising demand coincides with the decline of coal-fired power plants, which are being phased out due to the competitive pricing of natural gas and renewable energy sources. While clean energy initiatives are being rapidly adopted, they are lagging behind in meeting the growing demand and maintaining grid reliability. Market data indicate a troubling imbalance between electricity supply and demand across various regions, posing risks of increased electricity costs and hindering the transition to clean energy amidst escalating climate-induced extreme weather events.
Addressing Bottlenecks in Energy Development
The slowdown in carbon-free energy supply is primarily attributed to systematic legal and regulatory bottlenecks rather than technological or economic limitations. These constraints mirror supply-side challenges observed in other sectors of the economy. The rising “abundance” movement aims to confront these barriers across multiple domains, including housing, healthcare, and energy. Advocates argue for expanding available resources and opportunities by reforming cumbersome regulatory frameworks and legislative processes.
In this context, the abundance movement holds the potential to effectively tackle the challenges in the energy sector. By advocating for policies that foster growth, job creation, and competitive pricing, the movement may appeal to a diverse array of stakeholders, particularly amid the current political polarization in the U.S.
Defining Energy Abundance
A forthcoming analysis in the North Carolina Law Review introduces the concept of energy abundance, aiming to establish a foundational “Law of Energy Abundance” to address the U.S. energy challenges comprehensively. This initiative distinguishes itself by recognizing the critical difference between proponents of supply-side energy strategies that include fossil fuels and those advocating strictly for zero-carbon alternatives. The approach highlights that achieving energy abundance must fundamentally involve a shift to renewable energy sources, given the environmental and socioeconomic costs associated with fossil fuel reliance.
The Challenge of Infrastructure Development
One of the significant supply constraints faced by the clean energy sector is the difficulty in constructing long-distance transmission lines, which are essential for enhancing grid reliability and transporting renewable energy from generation sites to urban consumption hubs. A notable case is the Cardinal-Hickory Creek transmission line that was designed to link western Wisconsin with northeastern Iowa, facilitating the transmission of wind and solar energy. This project faced legal challenges from environmental groups concerned about its impact on wildlife habitats. Ultimately, these hurdles delayed the project’s completion until 2024, accruing excess costs exceeding $150 million.
Bridging Divides Between Stakeholder Groups
This case exemplifies the permitting and litigation challenges that hinder the expansion of clean energy infrastructure crucial for maintaining grid reliability, reducing electricity costs, and achieving decarbonization goals. It also underscores the widening divide between advocates for clean energy and environmental protection, particularly regarding the prioritization of carbon reduction versus localized ecological impacts. The critical question arises: can a coalition be formed that unites advocates for clean energy with environmentalists to pursue the common objective of expanding carbon-free electricity supply?
Potential for Bipartisan Cooperation
The abundance movement, in conjunction with the “Yes in My Backyard” (YIMBY) approach seen in housing policy, has successfully influenced local and state legislative reforms aimed at easing zoning and permitting challenges. A key consideration for the future of energy abundance is whether it can inspire similar bipartisan coalitions that address regulatory delays and streamline the construction of clean energy infrastructure.
Seizing the Moment for Energy Reform
This initiative toward establishing a cohesive energy abundance framework arrives at a pivotal moment. With the anticipated administration change in early 2025 potentially reversing previous clean energy policies, including expedited approvals for fossil fuel projects, there exists an opportunity for advocates of clean energy. It is an invitation to reassess coalition strategies, unify interest groups, and prepare for coordinated efforts that align with shared objectives. By forming alliances that encompass various stakeholders, the transition to clean energy can advance more effectively at local and state levels, laying the groundwork for future energy policy at the federal level.
Ultimately, the vision of a comprehensive energy abundance strategy is not merely a response to current challenges but a proactive plan to ensure energy security, sustainability, and economic growth in the years ahead.
Authored by Alexandra Klass, James G. Degnan Professor of Law at the University of Michigan Law School, and Matthew Appel, a J.D. candidate at the University of Michigan Law School.
