2024 was another year of change for our energy landscape as we continued to see growth in renewable energy adoption, a heightened focus on energy security due to geopolitical tensions and increased sustainable aviation fuel production. In the United States, the amount of electricity produced by coal-burning plants continued to decrease, and the coal power output in the first four months of 2024 was 1.8% lower than the same period in 2023 and 30% less than in 2021, according to London Stock Exchange Group data, while for the first time, more energy was produced by wind and solar installations in the U.S. than by coal, according to the U.S. Energy Information Administration’s November 2024 Electric Power Monthly report. A similar occurrence happened in the United Kingdom, where the U.K.’s last coal-fired power plant was shut down at the end of the third quarter of 2024, while data from the National Energy System Operator showed that renewables generated slightly more than half of U.K. power last year.
As this transition occurs, we continue to see a need for increased energy production in the United States. A New York Times article states, “The nation’s demand for electricity, which has stayed more or less flat for two decades, suddenly jumped by roughly 3% in 2024, in large part because scorching heat during the summer caused many Americans to crank up their air-conditioners.” In addition, a Dec. 20, 2024, report from the U.S. Department of Energy “estimates that data center load growth has tripled over the past decade and is projected to double or triple by 2028.”
Combining the concern for having sufficient power, along with questions about energy security and reducing carbon emissions, nuclear power has gained renewed interest as a clean energy source. In 2024, Vogtle Unit 4 in Waynesboro, Georgia, finally came on line, which added two new reactors and is the first new build in the U.S. in 30 years. Also last year, Holtec international Corp. purchased and made plans to upgrade and repower the Palisades Nuclear Generating Station in Covert, Michigan, and Constellation Energy Corp. signed an agreement in September with Microsoft to restart the Three Mile Island Unit 1 reactor to generate nuclear energy for Microsoft’s artificial intelligence data center. There were numerous other nuclear advancements in 2024, including small modular nuclear reactors.
Years ago, program sellers at sports events used to constantly shout, “Get your scorecard here! You can’t tell the players without a scorecard!” and that same sentiment applies to the energy landscape today. Staying informed on 2025 energy trends is crucial for adapting to rapid technological advancements, policy shifts and market dynamics. It enables informed decision-making, optimizes energy strategies and ensures competitiveness in a transforming energy landscape.
In February on this blog, I will highlight some of the expected trends, developments, advancements and innovations we could expect in 2025, as well as potential opportunities and challenges. In the meantime, we send you our best for 2025, with the encouragement that you will stay informed and engaged with energy developments in the new year!
Bill Bradford can be reached at bbradford@hanson-inc.com.