More coal mining, more electricity generation, more transmission lines — Governor Patrick Morrisey wants West Virginia to be a powerhouse in energy production for the country.
The Governor mentioned his “50×50” energy generation plan during a speech at a WV Chamber of Commerce event at the Greenbriar Resort at the end of August. Yesterday evening he provided a more detailed outline of the plan in a speech at the West Virginia Energy Education Forum in Wheeling.
The plan looks ahead 25 years and sets a goal to increase West Virginia’s electricity generation capacity from the current 15 gigawatts to 50 gigawatts of power by 2050. To put that in context, 1 gigawatt of electricity could power approximately 750,000 average homes, according to the United States Energy Information Administration, or 10 hyper-scale data centers, according to a recent analysis by the research organization RAND.
During his speech, the Governor emphasized the need for baseline generation, noting that PJM Interconnection (the organization that manages the power grid across the nine-state region that includes West Virginia) is forecasting a need for 110 gigawatts of additional capacity over the next two decades. Morrisey sees coal, natural gas, and nuclear power as key elements in meeting this demand.
He also stressed the importance of building up the region’s transmission grid to enable the export of power generated in West Virginia. The 50×50 plan references recently-enacted legislation aimed at encouraging data centers to locate in West Virginia to take advantage of the state’s energy resources.
The Governor’s Speech
Full text (as provided by the Governor’s Communications Office in avance of the September 10 speech):
For generations, West Virginia has been the backbone of U.S. energy. Our coal industry fueled the American Industrial Revolution, supplying steel mills, railroads and factories that built modern infrastructure. It has been a cornerstone of electricity generation, ensuring affordable and reliable power for homes and businesses. Our natural gas industry has been a mainstay for domestic heating, manufacturing and LNG exports and has helped ensure our nation’s energy security and independence.
Energy is fundamental to national security, without it, no modern nation can sustain its economy, its military, or its way of life. Make no mistake about it, energy is being used by our adversaries to threaten the American way of life. China, Russia and Iran are three of the largest energy producing countries in the world and three of our nation’s biggest adversaries. They are coordinating diplomatically, militarily, and economically to weaken American influence and build an alternative global order.
Russia has engaged in cyber-attacks against US energy infrastructure that have resulted in US sanctions banning imports of Russian crude oil, natural gas and coal. Iran has launched ransomware attacks against US infrastructure and just months ago, the US launched missile strikes inside Iran targeting its nuclear facilities.
And then there is China, America’s foremost economic competitor. China dominates critical mineral supply chains and has restricted our access to many of these critical minerals. It is the world’s second largest economy and is the world’s largest manufacturer. China already generates half of the world’s coal-fired power, which gives it a huge advantage in the arms race for computing power and intelligence. This is important because China has invested massively in artificial intelligence, semiconductors, 5G, and quantum computing.
China is positioning itself to be the global leader of data centers and is investing in technology to encourage the flow of critical data to China instead of to the United States. America can either find a way to dramatically increase its power production, or China will eclipse our nation in a technological battle that will undermine our national security.
Over 100 years ago, America recognized the importance of energy. We recognized our obligation to support the energy industry and those who worked in it. Over the last several decades, we have stopped supporting baseload energy, stopped supporting natural resource exploration, and stopped supporting the very industries that power this great state and nation.
This is unacceptable. It is unacceptable for us to turn our back on the very industries that made this nation great. It is unacceptable to ignore the vast natural resources under our feet that provide energy security. It is unacceptable to walk away from these industries and leave them to fend for themselves. It is unacceptable and West Virginia is not going to do it.
When it comes to energy, West Virginia needs to be out front. It needs to lead. It does lead. We are the leading producer of metallurgical coal in the country. We are the second overall producer of coal and the fifth largest producer of natural gas in the country. Finally, we are the fourth largest producer of total energy and the fourth largest per-capita exporter of electricity in the country. However, we need sound policy to guide our development and use of our abundant natural resources.
That is why today I am announcing the framework for the first comprehensive energy policy in the history of West Virginia.
Together with input from the WV Legislature, numerous state agencies, our federal partners, as well as members of industry, education, and the public, my administration is pursuing a balanced energy mix fueled by West Virginia’s natural resources. It contemplates all energy sources, but places a priority on stable baseload generation over renewables. It is exemplary of West Virginia’s unique strengths as an energy powerhouse. This policy will be designed to lift West Virginia to new heights, power America for generations, and serve as a blueprint for other states to develop their own comprehensive energy policy. West Virginia will become the “battery” of the nation.
First, I want to describe several of the general principles guiding this policy.
The first is duration. A short-duration energy policy is too reactive. It may handle immediate problems but risks instability, higher costs, and missed opportunities over the long haul. A long-term energy policy reduces costly “stop-and-go” projects caused by uncertainty. It gives utilities, businesses, and investors confidence to put money into big projects that take decades to pay off. West Virginia needs an energy policy that is not only forward looking, but that looks deep into the future. That’s why we are developing a 25-year energy policy that will take us to 2050.
The policy will also be grounded in science and common sense. Science is the foundation of sound energy policy. It tells us what’s technically possible and what’s economically efficient. For example, you heard me say earlier that while all sources of energy are contemplated, we will be prioritizing baseload generation such as coal, natural gas and nuclear over renewables. There is a reason for this, and it’s based on science. Science tells us that West Virginia ranks 48th out of 50 states for average annual sunlight hours. This negatively affects the economics of solar installations by extending their estimated payback period.
There is also limited flat land available in WV. We must balance solar’s need for flat land with the needs of manufacturing, agriculture, data centers and housing. I mention this simply to highlight the fact that each energy source has its own strengths and weaknesses that must be considered.
I want to be clear, there is a place for solar generation in West Virginia and we support its continued development. However, science tells us that solar will not be the primary source of generation in the state and that we will need to rely heavily on other sources of baseload generation to meet our energy needs.
The final principle guiding this policy is location. For over a century, WV has not only shipped its valuable natural resources out of state, it has also shipped the income and economic development from those resources out of state. It is time West Virginia started using its natural resources to benefit West Virginia. We need to ensure that WV is the first state to benefit from its own natural resources and power generation, not the last.
The foundation of this policy is the Generation Plan. This plan focuses primarily on baseload generation. Baseload generation from coal, natural gas and nuclear are critical to our way of life. It provides a stable backbone to the grid, ensuring there is always a dependable supply of electricity. However, the Nation is running short on power and without immediate action, it is only going to get worse. By 2045 it is projected there will be a 70 GW increase in peak load within the PJM territory. It is also projected that approximately 40 GW of PJM generating capacity could be retired by 2030.
Within the next 20 years PJM will likely need 110 GW of new generation capacity just to keep pace with demand growth and aging retirements. Currently, very few states within PJM can produce enough power to meet their own needs, much less export power to other states. WV is one of those states. However, while WV is a national leader in per-capita electricity exports, we lack the existing generation capacity to meet future needs.
That’s why I am developing my “50 by 50” generation plan. WV has approximately 15 GW of generating capacity. Our goal is to increase that amount to 50 GW by 2050, more than tripling our generation capacity.
I recognize it is ambitious. I recognize it will be challenging, if not downright difficult. But we have no choice. The need is coming whether we like it or not. Just as our government did during WWI, we have the patriotic duty, the solemn obligation, to meet this challenge head-on. Inaction is not an option. It’s not who we are.
To meet this need, we will first focus on our existing generation. WV has numerous coal plants that have powered this country for decades. We need these plants to remain operational. We need their power. We are working with our utilities, our coal companies, our PSC and the federal government to develop a plan to upgrade these plants. The upgrades will make them more efficient, more economical to run, and will ensure that they continue to generate stable baseload power for decades to come.
Second, we must embrace new generation from our regulated utilities as well as from independent power producers. We will never turn our backs on our existing coal plants and we will work with the federal government to pursue new coal-fired generation.
But the reality is clear, PJM needs 110 GW of new generation and that generation cannot all be coal-fired. It must include natural gas, it must include nuclear. It must include all sources of baseload generation.
Third, we must grow our supply-chains or we will not be able to build out new generation. There is a shortage of transformers, turbines, switchgear and breakers that are causing delays in building new baseload generation. We should not only strive to build new generation in West Virginia, we should manufacture the needed transformers, turbines and other components in West Virginia. Let’s use West Virginia energy to manufacture things in West Virginia.
This is a critical moment in WV’s development. This generation plan could significantly raise our citizens quality of life while lifting the State to its rightful place as a global energy leader. It must be based on science and common sense.
That is why we have engaged the US Department of Energy and its national labs to help us model our new generation capacity. We need to create numerous scenarios of how the new generation should be developed based upon changes in commodity prices, changes in generating technologies, changes in federal regulations and changes in consumer demand. We need to be ready for the rapid transformation of America’s energy needs.
West Virginia is pursuing data centers. We need to ensure that their rapid innovation and demand do not outpace our ability to build and deliver power and that we can provide power without negatively impacting our consumers.
In recent months we have partnered with Oak Ridge National Laboratory, a foundational leader in the development of the Manhattan Project, to assist us with crafting our data center development strategy. We are not only incorporating science in this plan, we are partnering with some of the most technologically advanced energy laboratories in the world. We are doing it the right way.
The next component is our transmission plan. An electricity transmission plan is a blueprint for how power will be moved from where it’s generated to where it’s needed. It’s one of the most critical pieces of an energy system. A transmission plan anticipates risks and strengthens weak points, making the system more resilient. It helps against cyber or physical attacks by diversifying power flow routes, and it anticipates growth, avoiding crises where demand outstrips supply. PJM states need our new generation, and our plan will ensure we have the proper transmission system to get it to them.
I need to stop here to emphasize the enormity of this endeavor. The average person may not understand what PJM is or the significance of WV being able to supply its power needs. PJM coordinates the generation and flow of energy in 13 states. It is the largest RTO (Regional Transmission Organization) in the world by both electricity market size and customer base. It serves roughly 67 million people from Chicago to New Jersey to North Carolina. When we say that our 50 by 50 generation plan and transmission plan will allow WV to power the Country, we mean it.
We also must implement the State’s first ever Energy Security Plan. This is critical because such a plan will help provide resilience against physical and cyber threats, provide economic stability by reducing disruptions, and ensure public safety and well-being.
This aspect of energy often gets overlooked. We take our access to reliable energy for granted and assume there will always be power when we flip the switch or plug something in the outlet. That may not always be the case. I want to mention two serious incidents that threatened our wellbeing and that highlight the need for a robust energy security plan.
The first is Winter Storm Elliot which occurred on Christmas Eve in 2022. There was an unexpected cold front that caught power producers off-guard. As temperatures plunged below zero across much of the eastern US and Canada, there was an unpredicted demand for electricity that strained the grid and caused massive power outages that affected 7.5 million people and claimed 100 lives.
The second is the Colonial Pipeline Cyber Attack. The pipeline is the largest refined products pipeline in the US stretching 5,500 miles from Houston to New Jersey. It carries 3 million barrels of fuel daily and supplies approximately 45% of the East Coast’s gasoline, diesel and jet fuel needs. On May 7, 2021 it was the subject of a cyber-attack that resulted in the pipeline being shut down for five days. Over 12 states experienced fuel shortages with 71% of gas stations in Charlotte and 88% of stations in Washington D.C. running dry. Some people refer to this as a “Pearl Harbor moment” for critical infrastructure cybersecurity.
We cannot ignore incidents like these. Our energy systems are under constant attack from natural and manmade threats. Without vigilant planning and swift action, it is only a matter of time before we suffer a mass-casualty event from an attack on our energy system. We must be prepared. Incidents like the ones I just mentioned are why we are developing our plan. Specifically, our Energy Security Plan will:
- Inventory our energy resources, critical minerals and critical energy infrastructure.
- Conduct a risk and vulnerability analysis taking into account natural hazards, market and technological risks, and interdependencies with other sectors like transportation and water.
- Identify emergency response protocols and coordination of action between federal, state and private sectors.
- Address physical and cyber threats by conducting regular tabletop and field exercises that simulate disruptions or attacks on our energy infrastructure.
- Maintain continuity in our power supply during moments of international challenge.
We are going to integrate all of these components into a comprehensive playbook to safeguard the State’s energy infrastructure, protect our citizens and ensure our ability to power the nation for decades to come.
Finally, we are developing a 25-year “Strategic Development Plan” for each of our energy sources. For example, there will be a “Coal Strategic Development Plan,” a “Natural Gas Strategic Development Plan,” a “Nuclear Strategic Development Plan.” There will be a geothermal plan, a hydroelectric plan, a biomass and hydrogen plan and a water development plan. In order for WV to meet its 50 by 50 target, we must leverage all of our energy resources and develop each of them to their maximum potential.
This is a new approach, a new strategy. We have to move beyond the rivalry between the various industries and the mindset that there are limited opportunities for the taking. PJM needs 110 GW of new generation by 2050. That is over seven (7) times WV’s current generation capacity.
For WV to meet its 50 by 50 goal, we have to more than triple our current generation. For us to meet this goal, we need to maximize our coal production and generation. We need to maximize our natural gas production and generation. We have to maximize our ability to generate electricity from every one of our energy sources. Maximize them all.
This is a call to action. West Virginia, PJM and our nation needs every energy source to produce as much energy as possible for the next 25 years and beyond. Industries no longer have to fight against each other for their share of the market. By developing individual strategic development plans, the rising tide will lift all industries.
I want to emphasize that it is up to each industry to determine how big of a role they play in WV’s energy future. There are no limits. Coal’s future is not dependent upon gas or nuclear. Gas’ future is not limited by coal or geothermal. There is not only room, but a critical need, for every source of energy in WV to thrive and our Strategic Development Plans will help make that happen.
Again, each energy source will have its own strategic development plan. The following are the minimum requirements for a coal or natural gas strategic plan:
- Generation – the plan will identify a potential range of new options for coal or natural gas fired generation that will be required as part of the 50 by 50 plan and will strategize how to bring that new generation on-line. It will also endeavor to extend the reasonable commercial life of our existing coal fleet.
- Infrastructure – the plan will inventory existing coal or natural gas infrastructure and determine the need for upgraded or new infrastructure.
- Economic Development – it will identify ways to expand existing markets and create new market opportunities. For coal, that means expanding existing thermal coal exports to Asia and creating new markets for coal such as the extraction of critical minerals, construction and building materials such as carbon fiber or advanced polymers; and advanced manufacturing of electrodes and semiconductors. For natural gas, that means expanding the in-state market for generation and home heating, and creating new markets for gas as a transportation fuel, advanced manufacturing of nanomaterial, or an in-state fertilizer plant.
- Site Development – will identify economically viable sites for new coal or natural gas generation or related infrastructure such as a coking plant or a fertilizer plant.
- Energy Workforce – develop strategies for post-secondary education programs, and job training initiatives such as apprenticeships and internships to prepare the next generation coal and natural gas workers.
- Education – Develop a K-12 education program focusing on STEM, Science, Technology, Engineering and Mathematics. Develop a welding, HVAC and advanced manufacturing curriculum at our community colleges and an advanced engineering, science and geology curriculum at our universities. Develop a program to educate the public on the overall benefits and importance of coal and natural gas to the local, state and national economy.
- Legislative Review – the plan will identify unnecessary or ineffective laws and regulations that hinder development or create needless red tape. It will identify new legislation or regulations needed to spur development or increase efficiency.
- Safety – it will provide recommendations for ensuring the safety and well-being of our coal and natural gas workers.
- Environmental – ensure energy operations within the state are conducted responsibly and in compliance with existing environmental standards.
- Energy Security – it will identify potential hazards within the coal and natural gas sectors that need to be incorporated in the State Energy Security Plan.
This comprehensive energy policy is not just about increasing GW’s or Btu’s. It’s about keeping electricity affordable, ensuring safe and reliable service and providing local jobs that put food on the table and keep our children in-state. Energy is more than just a “job.” It is a civic priority that provides security, independence and a better quality of life.
I mention civic priority because our Nation is facing an energy crisis that threatens our very way of life. If America cannot win the AI and data center race against China, U.S. companies could lose ground in critical industries like finance, manufacturing, logistics, and healthcare. It is a matter of national defense. If we do not act and act quickly, we are going to run out of power. The lack of power will affect every aspect of our lives from healthcare, emergency services such as fire, police and rescue, the provision of safe drinking water, transportation, communications, commerce and national security.
The challenge is daunting. PJM needs 110 GW of new generation by 2050. By enacting my 50 x 50 plan, we are signaling to the nation and the world that WV is willing to act.
I must note that there are some who have already expressed doubt, claiming this challenge is too great. I say to those people, what do you want us to do? Do you want us to sit idly by until we run out of power and then ask “why didn’t anyone do anything”? Do you want us do nothing while other states heed the call and reap the economic benefits?
History has never been written by the timid or by those who failed to act. It has been forged by people who dared to do what others deemed impossible. West Virginians do not shrink in fear. We rise in courage with steadfast resolve. Let’s stand together with an unbreakable spirit and turn the impossible into the inevitable. Let’s make WV the global energy powerhouse it was destined to be.
By Staff Contributor