Power for the Future Part 1

CICS
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January 10, 2025
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Uncategorized

Corporations’ dependent on substantial electrical power must evaluate the accessibility and reliability of continuous, cost-effective power sources to facilitate future growth. In 2023, about 4,178 billion kilowatt-hours (kWh) was generated in the US from all large-scale power generation facilities.

Background Context

In 2011, Anheuser-Busch (AB) installed a 1,500 kilowatts per hour GE wind turbine power generator and a 6,500 solar array to provide 30% of its total power consumption at its Fairfield, California brewing facility. “The iconic wind turbine sits amid a wind belt called; “Suisun” this is the Patwin Indian word for the area’s famed west wind*.”  AB’s decision to install the wind turbine was a statement of its need for reliable, cost-effective power, and recognition of the limits of PG&E’s ability to provide it. The turbine is clearly visible from the Interstate-80 freeway corridor used by millions of travelers every year between Sacramento and San Francisco, and is a monumental example of a large, private business recognizing and providing for its own power needs. 

Novartis and Genentech, with facilities also located on the I-80 corridor, have opted to use large solar arrays to ensure power is available when needed. Again, a demonstration of private businesses recognizing the advantage of self-help. 

In November 2024, the Biden administration announced its commitment and plan to add 200+ GW of nuclear power generation over the next 25 years, with a target of achieving 35 GW by 2035 (White House November 2024, “Development Targets And A Framework For Action”)**. This is an ambitious goal××! The challenge to this goal is staggering given the current status of the U.S. manufacturing, resource capabilities, and level of required government oversight. Nonetheless, the projected power needs over the next several decades dictate this increase in available power must take place for the US to remain the powerhouse of innovation.

Chart showing nuclear capacity growth plan from 2025 to 2050. 35Gw in 2035, 125 Gw in 2045, 200 Gw in 2050

In October of 2024, Microsoft announced their commitment to using nuclear power as its primary source of energy. Microsoft intends to restart the existing Three-Mile-Island reactor # 1 facility, with an estimated power output of ~ 800 MW, and will engage in the emerging Small Modular Reactor (SMR) technology market currently in development. Amazon and Google have also announced plans to utilize SMR technology to address their growing needs. SMR solutions are reminiscent of “power on the property” systems used in the early stages of the industrial revolution, when wind and waterways were harnessed to provide power for mills and factories.

Energy Generation Options

All industries are faced with the growing need for power in the face of increasing competition for that power. Each solution has specific costs, benefits, risks, and drawbacks to consider. How can businesses and government determine the best workable decision for their needs?

If your business engages in AI data processing, hyper scaling, data mining, mining for mineral deposits, refining, smelting mineral ores, water desalinization or other large-scale activities requiring massive amounts of energy, your company is a major user of power. Increasingly, large power needs must be met via a variety of sources; these sources will be dependent on both availability and innovative solutions to manage costs and dependability. How will you power your future?

Author:
Mark Cuzner, CEO
CICS, LLC

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