Currents - Energy Industry Insights, V 9, Issue 5, May 2025

Hikmat Al-Chami, Stephanie Eaton, Mark Heath, Steven Lee, Nicholas Muto, Barry Naum, Derrick Price Williamson
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Volume 9, Issue 5
● Welcome

Welcome to our fifth issue of Currents 2025. We are covering a multitude of issues in this edition, but we want to pass along an announcement and an event notice first.

Again, thank you for reading!

Tapping Into Common Ground: Bipartisan Support Propels Geothermal Energy in America's Search for Energy Dominance

By Hikmat N. Al-Chami

With escalating tensions surrounding President Trump's energy and tariff initiatives, geothermal power has emerged as a rare point of bipartisan agreement in American energy policy. Lawmakers from both parties are rallying behind this renewable resource as it promises energy security, job creation, and environmental benefits without the political divisiveness that typically surrounds climate solutions. The growing enthusiasm stems from geothermal energy's fundamental mechanics and practical advantages in the modern energy economy.

Click here to read the entire article.

Norway Eyes Oil and Gas Output Boost with New Licensing Round

“Norway has become the largest supplier of pipeline natural gas to Europe and boasts the biggest sovereign wealth fund in the world thanks to its oil and gas; however, it also has the highest per-capita ownership of electric cars and a most ambitious transition state.”

Why this is important: The article highlights Norway’s increased attention to and investment in oil and gas production, dovetailing with a move toward more centrist governing. This is consistent with Norway’s role as the largest supplier of natural gas to Europe and the fact that it has the biggest sovereign wealth fund in the world as a result of its oil and natural gas. At the same time, Norway has made exceptional progress in an energy transition embracing EVs among other social targets. But increased investment and government support for enhanced production reflect the reality that Norway “will not give up oil and gas anytime soon” because the Dominant Model of energy policy focused on fossil fuels remains intact, even in paradoxically progressive countries. --- Derrick Price Williamson

Trump Admin Plans to Shut Down Money-Saving Energy Star Program Soon, Sources Say

“The agency is planning to shutter its climate change division and climate protection partnership division, both of which sit within the agency’s office of air and radiation, the sources said.”

Why this is important: CNN is reporting that the Trump administration is planning to eliminate the Energy Star ratings system of energy usage for most appliances. The program provides consumers with information on the energy costs to operate household systems like refrigerators, washing machines, air conditioners, and heat pumps. It was started by Republican President George H.W. Bush in the early 1990s and is now viewed as a widely recognized program helping consumers purchase energy efficient appliances to lower their utility bills. Surveys have found 90 percent of U.S. consumers recognize and use the yellow labels to compare energy usage in appliances when making major purchases. An explanation for eliminating the program has not been given. Maine Republican Senator Susan Collins stated she was “baffled” as to why the Trump administration wants to end the program. CNN is also reporting that the Trump administration wants to eliminate the Climate Change Division and Climate Change Protection Partnership in the Department of Energy. --- Mark E. Heath

EU Plans to End Russian Gas Imports by End of 2027

“A set of legislative proposals will be tabled in June asking all EU member states to make ‘national plans’ to phase out Russian gas, nuclear fuel and oil imports, according to the European Commission.”

Why this is important: The European Union is taking decisive steps to end its energy dependence on Russia by 2027. Under plans announced by the European Commission, imports of all Russian gas, liquefied natural gas, and oil will be banned, with member states required to submit national phase-out strategies. EU gas imports from Russia have already decreased from 45 percent in 2021 to 19 percent in 2024, while Russian oil imports have dropped from 27 percent to just 3 percent. The Commission will table legislative proposals in June requiring EU countries to outline strategies for replacing these energy sources through improved efficiency, renewable energy deployment, and supply diversification. The roadmap also targets Russia's "shadow fleets" used to bypass sanctions. Despite Kremlin spokesman Dmitry Peskov claiming Europe is "shooting itself in the foot," European Energy Commissioner Dan Jorgensen emphasized this transition is essential for European economic security and will be implemented gradually to minimize economic disruption. --- Hikmat N. Al-Chami

New Environmental Laws in Virginia Include Protecting Wetlands and Building Community 'Power Plants'

“This law creates a pilot program for so-called ‘virtual power plants,’ which would let utilities pay customers for access to their home energy resources, harnessing the combined power of home solar panels, heat pumps, electric cars and water heaters to send excess energy onto the grid.”

Why this is important: After the close of Virginia's legislative session, Governor Youngkin signed into law a bill that could reduce Virginia ratepayers' electricity costs. The law creates a pilot program for "virtual power plants" that would allow utilities to pay customers for access to their home energy resources. These resources include home solar panels, heat pumps, electric cars, and water heaters. The utility would then be able to send excess energy onto the grid from these virtual power plants.

The pilot program is aimed at improving reliability, reducing peak demand, and potentially lowering electricity costs. While the costs and benefits of the recently passed legislation are unknown, there is a clear need for reliable and affordable electricity in an environment of increasing demand and rising electricity costs. --- Steven W. Lee

Chart: Clean Energy Dominated Global Power Construction in 2024

“But emissions from the power sector still ticked up last year amid rising demand and more fossil-fuel use.”

Why this is important: For those contractors working on renewable energy projects, 2024 was a banner year. According to the International Renewable Energy Agency, more than 90 percent of projects worldwide consisted of wind, solar, and other renewable energy generation. These new projects – attributed to lower costs and strong support for global decarbonization – accounted for nearly 600 gigawatts (GW) of new generation as compared to only 47 GW of new fossil generation constructed last year. Renewable plus nuclear generation accounted for 40 percent of the world’s electricity in 2024. Construction of new clean energy generation resources will remain a significant part of the power generation equation now and for years to come, so education and training of a workforce who can site, plan, design, build, and manage solar, nuclear, wind, hydro, and geothermal facilities will also be critical.

At the same time, global demand for energy as a result of increased electrification, EVs, data center facilities, and cryptocurrency mining has required existing fossil-fuel power plants to continue operating, while newer facilities are being planned. In fact, emissions caused by power generation increased 1.7 percent in 2024 over 2023 levels. Focusing on making these new fossil generators more energy efficient, less polluting, and complementary to clean energy generation sources will be crucial to meeting these global energy demands without further expanding global carbon dioxide emissions. --- Stephanie U. Eaton

Solar Power Takes Center Stage at Central Virginia Landfill

“It approached the local director of solid waste, Phil McKalips, and suggested installing 7,200 solar panels.”

Why this is important: A landfill outside of Charlottesville, Virginia has turned to solar panels as a way to generate revenue and have someone else maintain closed areas of the landfill. The 300-acre landfill has had solar panels installed on areas that are filled and reclaimed. Approximately 7,200 panels have been installed that will provide 3MW of power to 750 homes and businesses. The landfill expects lease income for the next 35 years and areas that are part of the solar farm will be maintained by the contractor, not the landfill operator. In addition, the facility used engineering students from the nearby University of Virginia to help design and develop the project. --- Mark E. Heath

PJM, Others Urge FERC to Dismiss Ratepayer Advocates’ Capacity Auction Complaint

“’Entertaining the complaint would signal to all investors in commission-regulated markets that they cannot rely on any clearing price, as they would become at risk for adjustment at any time,’ PJM said.”

Why this is important: Ratepayer advocates filed a complaint at the Federal Energy Regulatory Commission (FERC) requesting to overturn and redo PJM Interconnection's (PJM) last capacity auction. At that auction, total capacity costs increased to $14.7 billion from $2.2 billion in the previous auction. This could result in increased utility customer costs by as much as 20 percent starting June 1. The ratepayer advocates also recommended that FERC investigate whether the auction was manipulated by market participants withholding capacity.

PJM and other organizations are urging FERC to dismiss the complaint, alleging that the request to overturn and redo the last auction would violate the "filed-rate doctrine" that bars retroactive rates. PJM also expressed concern that overturning an auction would create market uncertainty. The outcome of this dispute could have major effects on both utility customers' rates in the near term and the procedures impacting capacity auctions over the long term. --- Steven W. Lee

New Nuclear Construction Company Locating in Richland County, Creating 100 New Jobs

“This fleet-scale methodology lowers costs and minimizes delays using advanced construction and manufacturing systems, including AI-driven site selection, real-time construction updates, and integrated supply chain logistics.”

Why this is important: Few people involved in the energy sector in South Carolina have forgotten the 2017 abandonment of the decade-long, $9 billion construction of the Virgil C. Summer Nuclear Power Station just 20 miles northwest of Columbia, South Carolina. Thus, it may be surprising to hear that a new nuclear construction company—The Nuclear Company—has now located in Richland County, South Carolina. With a new disciplined and scalable approach to the construction of nuclear reactors, The Nuclear Company has plans to use AI to facilitate site selection for fleets of reactors, provide real-time updates on construction progress, and integrate supply chain logistics, all of which could have mitigated against some of the construction and project management issues that led to the demise of the V.C. Summer facility.

One other significant approach that The Nuclear Company is taking involves the shift in who bears the burden of the infrastructure construction costs. Previous U.S. facility construction projects involved a coalition of industry partners for the planning and construction of the facilities, whereas The Nuclear Company puts that burden on a single entity or traditional utility company. The CEO of The Nuclear Company, Jonathan Webb, is hopeful that this new approach will help the United States become more competitive in the global nuclear arena, where China is taking a leading role. Webb explained that during the last decade, only two reactors were built in America as compared to China, where 37 reactors were built, 30 more are under construction, and 80 more are in the construction pipeline for the next decade. Nuclear energy, however, remains a key component of many utilities’ integrated resource planning because it provides clean, stable power supply to America’s growing energy demands. For those interested in working for The Nuclear Company, go to the company's Careers page. --- Stephanie U. Eaton

Google to Fund Three Nuclear Projects with Elementl Power

“The deal marks the latest push by a major technology company to tap advanced nuclear power in support of artificial intelligence (AI) infrastructure, which is increasingly energy-intensive.”

Why this is important: Major technology company Google has decided to get into the energy business by funding at least three nuclear power projects with Elementl Power. This is not Google’s first move in the energy sector. In 2024, they announced a partnership with small modular reactors developer Kairos Power. That partnership will allow Google to procure energy from Kairos Power's reactors, with the first one slated to come online in 2030.

Like Google, other tech companies have made a push to tap into advanced nuclear power. Part of the reason for this push is to accommodate the amount of energy needed for artificial intelligence (AI). As AI continues to grow, the infrastructure needed to support it will need attention. The demand for AI is growing exponentially, leading to these team-ups between energy companies and tech giants. These types of partnerships are necessary moving forward to expand and build new nuclear projects. In addition to meeting the energy demands of AI, these partnerships must also address the challenge of aligning with climate goals.

While the exact locations and financial terms of the projects remain undisclosed, each is expected to have a generating capacity of 600 megawatts. Elementl, having only been founded in 2022, has yet to build any nuclear facilities. They have not yet selected a reactor design, as they intend to choose the most advanced and developed technology available at the time construction begins. The deal between the two entities gives Google the option to purchase electricity from the operational projects. Although still in the early stages of the partnership, this agreement demonstrates Google’s commitment to strengthening the nuclear power grid to ensure a reliable energy supply.

These partnerships, like the one between Google and Elementl, present numerous opportunities and challenges that require the knowledge of legal professionals across multiple disciplines. Corporate lawyers will play a critical role in facilitating these partnerships, as they involve navigating complex commercial agreements and ensuring legal and regulatory compliance. Energy lawyers will also have to help the entities navigate regulatory frameworks, securing permits, and compliance when building starts. --- Nicholas A. Muto

Ohio's Solar Energy Landscape: Growth Stalled by Restrictive Laws and Local Opposition

“As of today, solar power generates just under 2% of Ohio's electricity, positioning the state behind national leaders in renewable energy adoption.”

Why this is important: Ohio has vast solar resources, and as a state, it is 13th in the U.S. in solar capacity with 4,715 MW of solar that powers 594,363 homes. However, since 2021, that vast growth has been slowed by state regulatory restrictions and local zoning restrictions. State Senate Bill 52 allowed local zoning boards to control solar and 26 counties have now banned new solar farms. In addition, regulations from the Ohio Power Siting Board have allowed local government restrictions, such as 300-foot setbacks from non-participating property lines and weed management, which have significantly slowed new solar development. These same issues are now present in many other U.S. states and have similarly slowed new solar development. There are currently appeals to the Ohio Supreme Court to limit the state statute and local boards to resume what had been booming solar growth in Ohio. --- Mark E. Heath
● EIA Energy Statistics

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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