Fellow VERA Members:
A recently completed study on the economic and fiscal contributions provided by the proposed Chesterfield Energy Reliability Center offers additional support for the addition of this facility to help meet the growing need for reliable, affordable power in Chesterfield County.
The study, completed by Mangum Economics headquartered in Henrico County, adds further support for the natural-gas powered plant. And this is beyond its significance in maintaining the reliability and cost-effectiveness for residential, commercial, and industrial energy consumers in Chesterfield County and more broadly in Virginia.
The Mangum study concluded that completion of CERC will create new employment opportunities along with positive economic contributions during the construction and ongoing operation of this critical facility.
During the demolition and construction phases, the project is expected to create 955 jobs, and generate more than $323 million in wages, economic output, and tax revenue for Virginia. Of this, about $135 million directly benefits Chesterfield County.
Once operating, the CERC is projected to create 55 jobs and generate more than $40 million annually in wages and economic output for Virginia, $32 million of which will stay in Chesterfield County.
Additionally, it is important to note the location for the proposed facility is on property already owned and operated by Dominion Energy - property that has for decades been used for power generation. And the natural gas used for this important facility will be sourced domestically by U.S. producers.
Back to CERC’s role in maintaining energy reliability: Federal Energy Regulatory Commission Chairman Mark Christie (formerly chairman of the Virginia State Corporation Commission) has consistently emphasized the biggest energy challenge faced by Virginia and across the United States is maintaining reliability, especially during significantly hot and cold weather. Chairman Christie has also pointed out the reality of growing power demand on a scale not experienced in our country for more than two decades.
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The electricity generated at CERC represents “dispatchable generation,” meaning it can be scheduled on short notice with a high degree of certainty. As more renewable energy is developed and added to the power grid, dispatchable generation works in synergy with renewables at times when there is not adequate wind or sun.
In this sense, CERC, and other natural-gas powered facilities like it, are essential to make renewables a more effective energy production resource and to maintain the balance of the grid.
The energy demand created through advancements in technology we use every day and increasingly depend on, has ramped up more quickly than anyone in the industry could have imagined just a few years ago.
These hyperscale users such as data centers, bitcoin mining and artificial intelligence applications will become more efficient, but they are not going away. In fact, they are likely to grow in number.
Combining this with increased onshoring of large-scale manufacturing and electrification at the retail level reinforces the urgency to act now to preserve the reliability and affordability of energy that all energy consumers, small and large, expect and deserve.
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A number of organizations have expressed opposition to the completion of the Chesterfield Energy Reliability Center. They have presented a number of questionable objections, but precious few realistic solutions.
The Mangum study shows that, in addition to its contribution to meeting growing energy demand, CERC provides both short and long-term economic benefits to Virginia and Chesterfield County. It should be supported. Join the Virginia Energy Reliability Alliance and recruit others to stay updated and learn more.
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Brent Archer is a founding member of VERA and a long-time executive in the natural gas business. He resides in Midlothian, Virginia.