Roundtable Report Seeks Action to Address Ohio Power Constraints

COLUMBUS – The Ohio Business Roundtable (OBRT), today released the Energy Competitiveness Study showing that Ohio faces electricity shortages in as soon as 2027, and that action is needed to ensure Ohio can continue to attract economic development investment by ensuring reliable, affordable energy.

The Ohio Business Roundtable sanctioned this study to address this pressing issue. It was conducted with the expertise and collaboration of more than 35 of its member organizations, representing all facets of the energy grid—including generators, transmitters, users, and more. With their input, OBRT worked to develop actionable, state-level recommendations to strengthen Ohio’s energy grid and provide a roadmap for maintaining its reliability, resilience, and affordability.

"Ohio’s energy future is at a crossroads," said Pat Tiberi, President and CEO of the Ohio Business Roundtable. "This study brings together a diverse coalition of industry leaders, all sounding the alarm: without action, our energy supply could be constrained as soon as 2027. Ohio can’t afford to fall behind."

Factors contributing to the constrained energy forecasts include:

• Impending retirement of old generating plants

• Major power demand increases driven mainly by strong economic growth in recent years, re-shoring of American manufacturing, and a projected explosion of demand for data centers supporting the implementation of AI, the data technology of the future

• Slow additions to the supply of baseload generation needed to drive 24/7 reliability which is required for large load users

“Access to reliable and affordable energy has helped make Ohio a magnet for companies seeking to capture the benefits of the best combination of a low cost of doing business and the cost of living,” said JobsOhio President and CEO J.P. Nauseef. “Ohio has a generational opportunity to grow energy innovation and infrastructure after establishing itself as a national leader in re-shoring of heavy manufacturing and advanced technology from around the globe and America’s coastal markets. Those industries require significant, affordable power, and this must continue to remain competitive.”

The report indicates that the projected increase in demand in Ohio alone is for a 50 percent growth in demand by 2034. Ninety five percent of that projection is for large load users.

Action recommendations made in the report are generally aimed at shortening the regulatory process for permitting new generation, improving transmission, making it easier for users to build their own generation, and creation of the Office of Energy Resilience to provide leadership over a coordinated statewide effort.

"These recommendations provide a roadmap to ensure we have the power needed to fuel growth, attract investment, and keep our economy strong," Tiberi said. "Now is the time to act."

Specific recommendations include:

1. Permitting and Siting Reform - Establish in law strict 90-day deadlines for regulatory action on energy projects with presumptive approval if deadlines are not met by regulators.

2. Establish Office of Energy Resilience - The office would serve as a hub for promoting economic health, fostering energy resilience and innovation, and asserting leadership over the Ohio’s regulatory landscape. It would not be a regulatory entity.

3. Designate Priority Investment Areas for Energy Development - These areas, particularly those that are economically challenged, would receive incentives and expedited regulatory process for energy projects.

4. Enhance Legal Framework for Behind-the-Meter Generation - Provide statutory clearance for (behind-the-meter) generation to serve individual or multiple industrial users by clarifying the role of third parties to operate BTM generation under contract with end users.

5. Reduce Regulatory Lag - Encourage new energy projects by allowing utilities to begin recovering investment sooner through rates and require expeditious action by the PUCO for rate case decisions.

6. Promote Deployment of Grid Enhancing Technologies - Establishing a study committee to create a roadmap for utilities and users to deploy grid-enhancing technologies (GET) that can improve transmission efficiency, capacity and reliability. 

"Energy has rapidly become a top priority for the business community—right alongside innovation, talent, and housing—to keep growing our regions and state. Companies looking to invest in Ohio need reliable, affordable power options that meet their needs,” said Baiju Shah, President and CEO of the Greater Cleveland Partnership. “Ohio has an incredible opportunity to build on its economic momentum and be a leader in energy innovation and technologies. By addressing these priorities, we can secure the jobs and industries of tomorrow."

The Ohio Business Roundtable will advocate for its recommendation among state legislators as they work to address the energy projections and find reliable, affordable solutions for Ohio.