Affordable energy fosters economic growth
The article discusses North Carolina's electricity prices relative to neighboring states and the role of renewable-portfolio standards. It addresses the political claim that data center demand is driving up electricity prices, citing research that finds no significant correlation. The author suggests policy changes to ensure affordable and reliable energy for economic growth.
North Carolina's relatively higher electricity prices compared to neighboring states like Virginia and South Carolina are a concern for economic growth, according to the Carolina Journal. The American Legislative Exchange Council (ALEC) reported North Carolina had the 28th-lowest average retail electricity price last year, while neighboring states ranked better.
The article attributes some of the price difference to North Carolina's renewable-portfolio standard, despite a recent amendment to include nuclear power. While some localities in North Carolina are attempting to slow or halt data center construction due to concerns about their impact on electricity prices, Thomas Pyle and Daniel Simmons of the Institute for Energy Research dispute this, stating there is no statistically significant correlation between data center concentration and higher or faster-increasing electricity rates.
John Locke Foundation colleague Jon Sanders suggests that modifications to North Carolina's clean-energy goals, resulting from a General Assembly override of Gov. Josh Stein's veto, could save households and businesses billions. Sanders further recommends converting carbon goals from mandatory to aspirational and requiring baseload generation replacement, potentially with nuclear or natural-gas plants. He also advocates for an "Only Pay for What You Get" Act to incentivize reliable, least-cost electricity generation.