Utility CEO says 'daunting' US power growth makes 'all-the-above' a no-brainer

Renewables must be part of a US solution to meet soaring forecast demand for power, while politics should be taken out of decision-making for big infrastructure projects that are good for the country, Chris Womack, CEO of Southern Company, told a clean energy conference on Monday.

Southern, based in Atlanta, is one of the nation’s largest electric utility holding companies. It has been transitioning from a coal-heavy energy portfolio – 69% in 2007 versus about 17% now – to one that focuses on battery storage, natural gas, nuclear, and renewables.

“We’ve got about 65MW of batteries on our system. By the end of this decade, we’ll have 6GW,” he said, almost a hundred-fold increase.

“There’s always been this desire to focus on innovation in terms of how we’re going to meet that next load demand that we see,” continued Womack. “Making sure that we invest in a diverse, all-the-above portfolio, and making sure that we’re always also looking around the corner for what the next opportunity will be. I think it has served us incredibly well.”

The renewables industry has an opportunity to make sure “we tell the story in the right ways” to policymakers and to customers, so they fully understand what all-the-above really means, he said.

President Donald Trump’s administration openly favours fossil fuels over cleaner alternatives even though on their own they won’t be able to meet future electric power demand, according to multiple private studies.

Womack said he is aware of “this incredible fascination and interest in natural gas,” and agreed it will be a big part of the electric power supply solution going forward. Nevertheless, supply chain constraints are a major hurdle. It now takes four to six years to get gas turbines, “If you’re not already lined up in the queue.”

Forecast power demand in areas served by Southern’s utilities is both an incredible business opportunity and “pretty daunting because we have never seen this before,” he said.

Demand is coming from growing electrification of the economy, artificial intelligence, data centre construction and expansion, re-shoring of manufacturing, and population growth.

Southern has 50GW of demand requests in its pipeline and it continues to grow. By comparison, it had 46GW of generating capacity last year.

Womack called attention to the country’s pressing need for more transmission, both “big wires” and for distribution. He said while the renewable industry’s attention is focused on preserving federal tax credits and tax policy more broadly, permitting reform is necessary to expedite new build transmission.

He acknowledges a lot of decision-making for infrastructure projects is driven by states. “We love our state regulatory constructs,” he said, noting to a certain extent, there needs to be some uniformity across the country with a federal policy that lays out how the US is going to meet power demand going forward.

“To give all of us some certainty to make these long-term investments that need to be made,” said Womack. “So, it’s about committing to all the resources being a part of the solution set, including renewables and things we haven't thought before, making sure all that is factored into this consideration.”

Southern has the team in-house that understands what it takes to build infrastructure and work with whatever administration is in power to win support for big investments.

Still, he argued these projects are good, not just for one political party or the other, but for the country and US economy.