Maryland’s growing demand for electricity coupled with its declining ability to generate it has sparked a reliability crisis — a disaster that is poised to get worse if policymakers insist on speeding along the shutdown of essential coal-fired power plants.
The state’s explosive growth in electricity demand is fueled in part by the construction of data centers needed to fuel artificial intelligence. Artificial intelligence and related data centers command tremendous amounts of energy, with inquiries to ChatGPT, for example, requiring 10 times more electricity to process than a typical Google search.
At the same time, the electrification of everything from vehicles to smart homes demonstrates that electricity demand will continue growing. PJM, the regional transmission organization that serves Maryland, has estimated that electricity demand in its region will increase by nearly 40% by 2039.
Unfortunately, rather than focusing on ways to meet this rising demand, Maryland policies have been focused on taking existing electricity options like coal off the table. The state has set an ambitious and wholly unrealistic goal of producing 100% of its electricity from renewable energy sources by 2035, a target the Maryland Energy Administration has itself characterized as “extremely, extremely unlikely.”
The combination of massive growth in electricity demand with unfeasible green goals will result in higher costs and less reliable electricity for Maryland residents and businesses. For example, the electricity price increases already being felt across the state led Democratic Del. David Moon to worry that Marylanders would see rates “go up next year, 15, 20, 25%,” which a colleague in the General Assembly, Del. Jesse Pippy, attributed directly to the state’s “poor energy policies [where] we have energy-producing facilities that are closing.”
These cost increases are hastened by the fact that Maryland already has an energy deficit. The state now consumes almost twice as much electricity as it produces, forcing it to purchase in wholesale markets with increasingly scarce supplies.
In addition to a heavy price tag, the renewable electricity sources being eyed to replace fossil fuel plants are incapable of meeting the basic 24/7 electricity demands of the Maryland economy. Solar and wind plants can only reliably produce electricity under certain conditions, with the U.S. Energy Information Administration finding they “are not able to consistently produce the same power as their fossil fuel rivals.”
In the midst of an electricity crisis, it would be ridiculous for Maryland to continue shutting down coal-fired power plants that may be essential in keeping the lights on. Yet, 14 Maryland power plants have already retired or announced their retirement, according to PJM. Replacing the power generated by just two of these plants will cost Maryland ratepayers an estimated $800 million.
When it comes to electricity, Maryland policymakers would be wise to remember the axiom, “When you’re in a hole, stop digging.” Faced with energy shortages, the state needs to be looking at all possible solutions to bridge the gap, particularly those that already exist like Maryland’s remaining coal fleet.
The former chair of the Maryland Public Service Commission Jason Stanek has said that the short-term solution is to ensure no shutdowns of Maryland’s existing baseload power plants until new generating sources are brought online and deployed. Maryland Delegate C.T. Wilson has added, “Our goal is always clean energy, but we don’t want to be pressed for a timeline that ends up hurting the ratepayer.”
Aggressively shutting down essential electricity infrastructure to meet arbitrary deadlines would be a costly mistake for Maryland residents. Access to reliable and affordable electricity will be key to the state’s economy in the years ahead, and to date, coal is one of the few resources that can deliver it. Hopefully, policymakers in Annapolis realize this before it is too late.
Michelle Bloodworth, based in Washington, D.C., is president and CEO of America’s Power, a trade organization representing coal producers operating in Maryland and across the country.