OnLocation, A Division of KeyLogic

The main thrust of the energy market, in the Unites States and abroad, seems to be heading in the direction of an increasingly solar future. In a recent special report on the global adoption of solar power, The Economist described the global adoption of solar power as nothing less than “revolutionary” in the history of energy and industrial development. The Economist found, crucially, that solar PV is becoming so inexpensive that solar market expansion is no longer entirely dependent on climate policy; it can often stand on its own as an option for new capacity. Learn more 👉 https://bit.ly/4i89sNv

A common characteristic of a conventional Data Center (DC) and the new AI demand is a requirement for an absolutely reliable and continuous electricity supply, in order to provide 24/7/365 service to customers. This has driven many DC/AI vendors and the utilities that service them toward dispatchable natural gas-fired generation. To avoid lengthy utility interconnection queues, some DC/AI facilities are aiming to locate near natural gas pipelines that can supply fuel to dedicated combined cycle plants. DC/AI demand has also contributed to decisions to delay the retirement of some coal-fired generators, at least for a few years. Learn more 👉 https://bit.ly/411e9mO

"Geothermal energy presents a unique opportunity for renewed American leadership with a resource that is available 24 hours a day, 365 days a year regardless of weather. This relatively untapped source of power uses energy stored in the earth to generate electricity or provide heat. It is inherently resilient and reliable, strengthens the grid, reduces energy costs and expands our energy supplies, with essentially no emissions. As President Trump and Congress work to enact meaningful policies to lower energy prices and achieve energy dominance, lawmakers must embrace policies that align with an all-of-the-above—and below—energy strategy." - RealClear Energy

The Advanced Research Projects Agency-Energy (ARPA-E) funded 16 projects with $20 million to advance the exploration and potential production of geologic hydrogen. These projects aim to: ▪️Stimulate generation in subsurface environments. ▪️Develop technologies for efficient extraction and monitoring. ▪️Understand the economic and technical feasibility of large-scale production. Learn more 👉 https://bit.ly/3EAswp7

How Will Policy Shifts Impact Data Center Energy Demand? With AI, cloud computing, and digital services driving record-breaking electricity demand, the future of data center energy use will be shaped by evolving energy policies. Our latest Energy Horizons Data Center Report Update examines how changes in IRA incentives, EPA regulations, and fossil fuel policies could impact the energy mix and emissions trajectory. Key insights from our updated analysis: ◾ Renewables vs. Natural Gas – How policy shifts impact the generation mix through 2050 ◾ Regional Power Impacts – A close look at PJM Dominion, the U.S.'s largest data center hub ◾ Emissions Projections – Comparing emissions reductions under current vs. alternative policies This report provides data-driven insights into how utilities and data centers may adjust their energy strategies amid shifting policies. Read the full report. What are your thoughts on how policy changes could reshape the energy landscape for data centers? Let us know in the comments! #DataCenters #EnergyPolicy #AI #RenewableEnergy #PowerGrid #OnLocationInsights #EnergyModeling

CERAWeek 2025 has arrived! 🚀 The energy sector is at a pivotal crossroads where innovation, policy, and market forces converge. This year, the focus is on energy dominance—ensuring U.S. leadership in production, innovation, and strategic resource management. From SMRs and AI-driven grid management to CCS and hydrogen development, groundbreaking advancements are reshaping the landscape. 🔋⚡ KeyLogic’s Erik Guckel is on the ground CERAWeek, ready to share insights on how energy innovation can drive reliability, economic growth, and security. If you're attending or want to join the conversation, let’s connect!

The potential savior for fossil generators is the growth in power demand and the characteristics of that demand. For decades growth in U.S. electricity demand has been minimal. For the period 2000 – 2023, growth in electricity sales averaged only 0.5% per annum. For six of the 10 years between 2014-2023, electricity demand growth was either zero or negative. But these trends are about to reverse. EIA’s short-term estimate as of January 2025 is that electricity sales increased by 2.2% in 2024 and will grow another 2.1% in 2025. OnLocation’s Energy Horizons study forecasts that this will kick-off robust electricity sales growth continuing to mid-century. Growth is expected to average 1.7% annually (2025-2050). This rate might not seem that high, but by 2050 the change is dramatic, with total sales more than 50% higher than in 2025 (from 3,956 to 6,059 billion kWh). A large chunk of the demand growth is expected to come from data centers, turbocharged by AI computing. In our recent data center study, OnLocation estimated that data center demand will increase from about 169 TWh in 2024 to a range of approximately 600 to 800 TWh by 2050, accounting for more than 10 percent of total U.S. electricity demand. These facilities require firm power, 24/7. Another consideration is anticipated increases in peak demand as total sales climb. As part of the justification for its Calpine deal, Constellation explicitly cited projected increases in peak load in ERCOT and PJM by 2035. Meeting peak demand requires reliable and dispatchable power. Learn more 👉 https://bit.ly/412Yi6B

Data center demand growth, while substantial (up to 20% by 2050), is expected to be met with an accelerated transition to clean energy sources, minimizing long-term emissions impacts. Clean energy expansion is expected to take over by mid-century, while natural gas and existing fossil capacity will continue to support demand growth in most regions in the near term. Multiple clean energy sources will be essential for meeting the growing demand for data centers: ▪️ Renewable generation, especially solar photovoltaics and wind, which already account for most capacity additions in many regions. ▪️ Battery storage extends the availability of renewable generation and enhances grid reliability. ▪️ Nuclear generation, especially small modular reactors, could play an increasing role in later years as a stable, low-carbon energy source. Learn more 👉https://bit.ly/4f3kGRT

Hydrogen is no longer just a "future fuel"—it is a present-day reality with real-world applications taking shape across transportation, industry, and power generation. At S&P Global’s CERAWeek 2025, stakeholders will discuss how to scale hydrogen deployment effectively. KeyLogic’s Erik Guckel will be attending, bringing insights from OnLocation’s recent work on integrating hydrogen into the National Energy Modeling System (NEMS). #CERAWeek #CWAgora

In a groundbreaking step, the U.S. Geological Survey (USGS) has released the first-ever map identifying potential geologic deposits of hydrogen across the contiguous United States. This map highlights several promising regions, including: ▪️ The mid-continent region (Kansas, Iowa, Minnesota, and Michigan). ▪️ The Four Corners area (Arizona, Colorado, New Mexico, and Utah). ▪️ Coastal areas along California and the Eastern seaboard. USGS’s Geologic Hydrogen Prospectivity initiative map provides a critical foundation by identifying favorable geological settings for production and accumulation. Learn more 👉 https://bit.ly/3EAswp7