WHAT’S HAPPENING TODAY: Happy Election Day readers! If you are registered to vote in the U.S. we hope you have had a chance to make it to the polls or submitted your ballot early. Several hours still remain before we get any news on early results in the presidential matchup and the several climate ballot measures up across the country. Stay tuned for our coverage on those votes.
In today’s edition of Daily on Energy, Callie and Maydeen kick things off with a look at three popular power sources (nuclear, wind and coal) before previewing discussions and notable absences from COP29 next week. Also today, General Motors is looking to build a vertical supply chain to boost EV competitiveness in the United States.
Our election countdown ventures a bit outside our Energy and Environmental beat as Callie trekked up to Dixville Notch, New Hampshire last night to cover the first certified vote in the nation at midnight on Election Day. Keep reading to find out the result of the historic six-person vote.
Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
NUCLEAR OUTAGES DECLINED THIS SUMMER: The U.S. Energy Information Administration reports that U.S. nuclear capacity decreased this summer on average to 2.6 gigawatts per day from 3.1 GW in 2023. The report said there were high numbers of outages this summer between mid-July and August, averaging 3.1 GW per day and peaking at 5.7 GW in August.
“Nuclear power plants experience both planned outages, usually for maintenance and refueling, and unplanned outages, which can be caused by technical issues, weather-related disruptions, and early retirements,” the report said. It added that operators typically try to avoid planned outages during the summer and winter when there is high energy demand.
With growing energy demand, the Biden administration has invested in nuclear energy through legislation like the bipartisan infrastructure law.
WIND ENERGY COMPANIES SEE HIGHER DEMAND REGARDLESS OF PRESIDENT: Offshore wind developer Vestas and Orsted told Reuters that the demand for clean energy will continue to grow in the U.S. regardless of who wins today’s presidential election.
“We see many – both corporates and states – having an increased demand from reshoring of industries and from the tech industry,” Orsted CEO Mads Nipper told reporters. “We see it as an all boats rise situation where all energy sources, not least for electricity, are needed no matter who ends up in the White House.”
Still, wind developers have seen profits decrease due to the high cost of materials, supply chain bottlenecks, and Chinese competition. Reuters said Orsted noted construction issues and higher costs for larger offshore wind projects.
The two presidential candidates, Vice President Kamala Harris and former President Donald Trump, have contrasting views on the wind industry. Harris has supported the Biden administration in investing in wind energy projects. Trump has promised to stop offshore wind projects through executive order.
COAL PLANT CLOSURES SLOW DOWN: Utilities are slowing their roll when it comes to retiring coal-fired plants in the U.S., as only 3 gigawatts worth of coal capacity is reportedly set to close in 2024 — the lowest amount in nearly 10 years.
The details: An analysis of S&P Global Market Intelligence data now shows the scheduled closures of coal plants are slowing down heading into 2025. Next year, around 14.1 gigawatts of coal-fired capacity is set to close — down from the 16.6 gigawatts of capacity projected in 2023. According to 2023 estimates, utilities were also expected to retire a total of 34.2 gigawatts of coal-power capacity between 2025 and 2027. However, data now puts that estimate at 29.9 gigawatts – a 12.6% drop.
Matching energy demand: The projected delays to phase out coal comes amid record highs for electricity and energy demand nationwide, a phenomenon driven in part by tech companies looking to increase their investments in artificial intelligence through large load data centers. Data centers in the U.S. are expected to see this demand double by 2025 and increase more than eight times just five years later, per S&P. As a result, more coal-plants may see a second chance at life in the coming years.
Key Quote: “There is certainly a strong chance for many of the existing coal [plants] out there to run longer than what was expected prior to the now-explosive growth forecasts in datacenter electricity demand forecasts/electrification,” CreditSights analyst Nick Moglia told S&P.
CHINA REQUESTS TALKS ON TRADE RELATED CLIMATE POLICIES AT NEXT WEEK’S SUMMIT: China is requesting to discuss carbon border taxes and other restrictive trade measures at next week’s UN climate summit, according to a document seen by Reuters.
The 29th Conference of the Parties (COP29) will begin Nov. 11 in Baku, Azerbaijan. At the meeting, 198 countries will negotiate climate plans.
On behalf of Brazil, India, and South Africa, China proposed to hold talks on “concerns with climate-change related unilateral restrictive trade measures” on the COP29 agenda. These countries have criticized the European Union’s trade-related climate policies, such as a carbon border tax that imposes tariffs on imported goods based on greenhouse gas emissions.
Reuters said disruptions to the COP29 agenda could delay countries’ goals to strike a deal on new funding to address climate change.
TOP EU OFFICIAL SKIPPING OUT ON COP29: European Commission President Ursula von der Leyen will reportedly not be attending COP29.
The details: Von der Leyen had been listed on a schedule of speakers for the acclaimed conference this week, but, as of Tuesday, the European Commission confirmed to Politico she would not be attending. The conference reportedly will conflict with the top EU official’s plans to appoint new commissioners within the European Parliament through next week.
“The Commission is in a transition phase and the President will therefore focus on her institutional duties,” a spokesperson for the commission told the outlet.
This will be the first UN climate conference Von der Leyen has missed since 2019. However, she won’t be the only notable climate hawk missing at the talks next week. French President Emmanual Macron, Canadian Prime Minister Justin Trudeau, President Joe Biden, Australian Prime Minister Anthony Albanese, and Brazilian President Luiz Inácio Lula da Silva are all reportedly expected to skip out on the conference.
Some background: Azerbaijan has faced global criticism ahead of its plans to host COP29, primarily over the nation’s human rights record. Sen. Ben Cardin, a Maryland Democrat, joined the critics in September, blasting the country for failing to recognize “freedoms of speech and assembly,” pointing to the imprisonment of Armenian and environmental activists. Azerbaijan has also faced backlash for its economic dependence on oil and gas production and its burning of fossil fuels.
GM SEEKS VERTICALLY INTEGRATED ELECTRIC VEHICLE SUPPLY CHAIN: General Motors is reportedly building a vertical supply chain within the U.S. and North America to pave the way for increased use of electric vehicles.
The details: The Detroit-based automaker is seeking to boost its control over the supply chain and limit Chinese dominance by investing in local mining and processing companies that can prioritize American EV manufacturing, according to an Axios report.
Already, GM has reportedly agreed to invest around $625 million in a lithium production project in Nevada alongside Canadian miner Lithium Americas. In tandem with the investment, GM has entered a 20-year purchase agreement for roughly 38% of the lithium produced in the project. The company has also invested $150 million for the supply of graphite active material used in EV batteries from Nouveau Monde Graphite.
These investments are part of the company’s greater strategy to create a vertical supply chain to increase its capabilities in EV production, reducing reliance on foreign entities like China that have long dominated the industry.
Key quote: “A lesson from COVID is you need to be engaged deeper in your value chain in certain areas, and manage it differently,” GM chief procurement and supply chain officer Jeff Morrison told Axios. “And when you look at EVs, it’s the exact same lesson.”
ELECTION COUNTDOWN – AN OFFBEAT TRIP TO UPSTATE NEW HAMPSHIRE: For over 60 years, the small town of Dixville Notch has held the first certified vote in the nation as the clock strikes midnight on Election Day. Callie, who grew up in the great Granite State, drove up to talk with the six registered voters, planners, and spectators of the now-historic vote Monday evening into early Tuesday.
The details: Just before 12:15 am ET, former President Donald Trump and Vice President Kamala Harris were officially tied in the presidential election, garnering three votes each in the Dixville Notch vote. The town, which is made up of four registered Republicans and two unenrolled voters, has voted at midnight since 1960. All six voters had put their support behind former GOP presidential candidate Nikki Haley during the January primary.
Many kept their vote close to their chests before midnight, though at least one revealed he still didn’t know who to vote for in the hours before. “I even contemplated writing [Haley] in, then decided not to,” voter Scott Maxwell told the Washington Examiner, before revealing his indecisiveness. “I thought I did [know], and then, when it comes down to it, it’s been a tough decision.”
Several of the attendees described the event as democracy at work, as all eyes in the nation descended on the town just miles from the Canadian border. “We are executing our rights, democracy,” voter and owner/lead developer of the Balsams Resort Leslie “Lee” Otten told the Washington Examiner. “One hundred percent of our population is voting, albeit six people, but it’s still 100%. We’re doing it of our own free will. … It feels as though we’re doing something that’s important.”
Read more from Callie here about the early morning vote and The Shining-esque resort where it was held.
RUNDOWN
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