We All Have a Critical Role to Play in Ohio’s Energy Future

Ohio’s thriving economy has earned widespread admiration, and our prosperity is the result of years of strategic planning and public and private investment. The New Year is a natural time to assess what we, as a state, need to do in the year ahead to build on this success.  

Ohio has steadily climbed the rankings in business competitiveness rankings, landing at number 7 in CNBC’s annual rankings of top states for business, anchored by high marks in our cost of doing business and our cost of living. For two years running, the Buckeye state has been ranked number 1 in the Global Groundwork Index by Site Selection magazine thanks to strong private sector job growth, infrastructure development, and capital expenditures.

While these accolades are encouraging signs for our state’s future, we cannot rest on our laurels. This economic success comes with challenges, and Ohio’s energy needs and electrical grid capacity are near the top of the list of issues that need addressing. 

Top industrial giants have made a strategic decision to invest in our state, from Honda’s $700 million upgrades to its Marysville, East Liberty, and Anna facilities, Google’s $6.7 billion investment into Ohio data centers, to Amgen Inc.’s growing operations in Central Ohio. And who can forget Intel’s historic $28 billion semiconductor plant under construction in Licking County? Many of these manufacturing facilities are also leveraging innovative technologies like artificial intelligence and machine learning, which spur data center construction across the state.

These mega projects are undeniably good for our state’s workforce and economic leadership, but they further strain a power grid that has seen record load growth in recent years. PJM, the grid operator whose territory includes Ohio, has warned of a rash of planned powerplant closures in the coming years and has stated that the record-high capacity auction prices send a clear signal for companies to build additional generation facilities. But constructing new powerplants, pipelines, and wind farms requires significant time, money, and navigating an increasingly complicated regulatory maze.

There are, however, reasons for optimism. As President and CEO of the Columbus Chamber of Commerce, I will advocate for permitting reform to ensure our elected leaders understand that the current backlog of production and transmission projects harms all resources—and the consumers who need them. In its most recent long-term reliability assessment, the North American Electric Reliability Corporation identified delays from siting and permitting activities as the most common cause for delayed transmission projects. Additionally, state and federal lawmakers have pushed for policies to increase nuclear generation capacity and advance innovative technologies like small modular reactors.

Mitigating power constraints in a dynamic economy like Ohio’s is a multifaceted issue, and addressing these hurdles doesn’t entirely fall at the feet of government. That is why it has been encouraging to see private companies and philanthropic entities step up to drive solutions too. Just recently, Columbus Region Green Fund partnered with Google to launch the Ohio Grid Innovation Fund, which is leveraging a $1 million contribution from Google to fund an initial round of financial support to state organizations targeting energy efficiency and workforce development projects. Efforts like these are critical to ensuring that all Ohioans benefit from the economic tailwinds that are propelling our state forward. 

Ohio’s economic renaissance holds tremendous potential for residents in all corners of the state. Let’s make sure we have enough fuel to keep the good times rolling.  

Derrick R. Clay
President and CEO
COLUMBUS CHAMBER 

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About the Columbus Chamber of Commerce: The Columbus Chamber of Commerce is a mission-driven nonprofit organization that serves more than 2,400 organizations. Founded in 1884, the Columbus Chamber is dedicated to fostering prosperity and growth in the Columbus Region Business Community through connections, resources, and advocacy. Serving as the epicenter of the Columbus Region’s business community, the Columbus Chamber provides an interconnected ecosystem where businesses collaborate to eliminate barriers to prosperity, creating a vibrant environment for enterprises throughout the Columbus Region. Together, we make our region an exceptional business destination. Learn more: https://columbus.org