Facing strong energy demand, Utah charts a path forward By EPN Staff Gov. Spencer Cox and the Utah legislature are pursuing parallel strategies to leverage the state’s energy resources to meet growing demand. The governor has launched Operation Gigawatt, and the state legislature is advancing HB249, which would create a Nuclear Energy Consortium, Utah Energy Council, energy development zones, and Energy Development Investment Fund. The bill passed the House and is pending in the Senate. Why it matters Utah is facing a potential energy crisis due to four converging trends: Population growth. Utah is expected to add 2.2 million people by 2060. Increased electrification. Electric mass transit and personal electric vehicle adoption are driving demand. Data centers and AI. Like much of the U.S., Utah is witnessing growth of these energy-intensive facilities and applications. Retirement of older plants. Aging plants and closure of existing facilities could strain baseload and dispatchable resources. Gov. Cox has emphasized the importance of harnessing state resources, including in his January 23 State of the State address: “We’re laying groundwork for advanced nuclear reactors while protecting national security by building capacity to be a net energy exporter through Operation Gigawatt.” Boosting transmission capacity, expanding energy production, and increasing utilization of carbon-free sources such as nuclear and geothermal are key to achieving those goals, Cox said. The bigger picture Republican state Rep. Carl Albrecht, a retired utility executive and sponsor of HB249, believes the state is a decade away from having a nuclear reactor unless the federal government lessons the regulatory burden. Lee Zeldin, the new administrator of the Environmental Protection Agency, and Chris Wright, secretary of energy, have pledged to push forward on reform that achieves President Trump’s executive order to “unleash American energy.” If the state legislation passes, the Utah Energy Council would identify prospective sites and oversee permitting and financial planning in order to prepare the way for the state’s first nuclear reactor. The legislation would also enable the administration to partner with counties and municipalities to create “energy development zones” in areas where energy resources and accessibility to the grid warrant an investment in new project infrastructure. Taxes from energy zone revenue will go to the Energy Development Investment Fund for future projects. Additional context Utah has been diversifying its energy portfolio over the past ten years. In 2015, coal generated 75% of the state’s electricity and natural gas accounted for 20% according to the US Department of Energy. Today, 46% of Utah’s electricity generation comes from coal and 34% from natural gas. Utility-scale solar generated 11% of the state’s electricity. The state is also one of only seven that have utility-scale geothermal plants. The state’s three geothermal plants provided 8% of renewable electricity production. Utah also has two uranium mines and the only uranium ore mill in the nation. The mill processes both ore and spent radioactive fuels from other states. Utah continues to be a strong energy exporter. It is the ninth ranked state in terms of oil production, 13th in natural gas, 14th in coal, and 16th in overall energy production. The state operates five oil refineries which can process about 207,000 barrels of crude oil a day.
