Can Georgia Balance Green Growth with Fossil Fuel Reliance?

February 3, 2025

Georgia is at the forefront of the Inflation Reduction Act economy, attracting manufacturing companies focused on creating batteries, electric cars, and solar cells to take advantage of significant tax credits for domestically produced green technology. This surge in green manufacturing, however, is causing the state to rely heavily on natural gas and coal power to meet the growing energy demand.

Georgia’s Green Manufacturing Boom

Rapid Industrial Growth

In its 2025 Integrated Resource Plan (IRP), Georgia Power outlined its expectations for electricity demand through 2030 and described its strategy to increase its energy generation capacity to keep up with burgeoning industrial growth. The utility, which powers much of Georgia, anticipates an additional 8,200 megawatts of load growth by the end of the decade, surpassing the previously estimated 6,200 megawatts from its earlier plan. This projection reflects an annual growth rate of 7%, significantly higher than the national average of 3%.

Georgia Power’s plan doesn’t just support typical residential and commercial needs; it aims to power a rising green economy. The state has seen rapid advancement in industries such as electric transportation, data centers, and solar manufacturing since 2021. The manufacturing sector alone led job creation and investment in the state by mid-previous year, contributing to 53% of job growth and 54% of capital investment. The burgeoning demand for sustainable products and solutions drives these industries, further fueling economic growth and the creation of high-skilled jobs.

Major Investments in Green Technology

Major investments include Hyundai’s electric SUV plant near Savannah and Kia’s electric SUV manufacturing plant near the Alabama border, which received a $200 million investment. The Korean solar company Qcells started producing panels in Dalton and Cartersville, while the SK Group has plants in Commerce making batteries for Volkswagen and Ford. Additionally, Rivian got a $6.6 billion Energy Department loan to build plants between Atlanta and Athens, showcasing the varied and significant investments in Georgia’s manufacturing sector. This influx of green technology companies underscores Georgia’s commitment to becoming a hub of sustainable innovation, leveraging tax incentives and a supportive business environment to attract leading industry players.

A core reason for this industrial influx is the reliable power supply, as noted by Tim Echols, vice-chairman of the Georgia Public Service Commission, who highlighted Southern Co. and Georgia Power’s reputation for reliability in an Atlanta Journal-Constitution op-ed. Reliable energy sources are vital to manufacturing facilities operating efficiently, motivating companies to choose Georgia as their base. As a result, Georgia’s infrastructure and policies create a favorable environment for these investments, propelling the state to the forefront of the green energy movement.

Challenges of Meeting Energy Demand

Continued Reliance on Fossil Fuels

To maintain this reliability amidst growing demand, Georgia Power plans to keep some of its most polluting power plants operational beyond their earlier retirement schedules. This includes continuing operations at the four-generator Plant Bowen coal facility, extending its life past the previously set 2028 retirement date, as well as maintaining over 1,000 megawatts of coal-fired capacity at two other plants until at least 2034. These measures aim to ensure energy availability during peak demands, securing a stable grid for the expanding industrial activities in the state.

Moreover, Georgia Power aims to extend the life of a coal plant operated by its sister utility, Mississippi Power, and proposes adding 1.4 gigawatts of generation capacity that could utilize natural gas or oil. The utility stated that current capacity needs necessitate prolonging the operation of existing coal and gas-steam units and procuring new capacity resources. These decisions highlight the complexity of transitioning to a green economy, where immediate energy reliability often requires continued reliance on fossil fuels while renewable energy sources are scaled up.

Balancing Economic Growth and Environmental Concerns

While Georgia Power’s parent company, Southern Company, has a goal of achieving net-zero emissions by 2050, the utility disclosed that continued progress toward a low-carbon future depends significantly on the use of natural gas and future technological advancements. These advancements would facilitate a reliable and economical low-carbon electricity supply. To support this transition, Georgia Power plans to upgrade existing gas-fueled and hydroelectric plants and acquire an additional 1,100 megawatts of new renewable energy, totaling up to 4,000 megawatts of new procurements by 2035. This approach showcases the balance between embracing sustainable energy practices and ensuring reliable power availability.

By investing in both renewable energy sources and necessary conventional power infrastructure, Georgia Power aims to meet rising energy demands without compromising environmental goals. The strategy reflects an acknowledgment that significant technological advancements and infrastructural investments are required to achieve substantial reductions in carbon emissions. This dual approach could pave the way for a smoother transition to a fully sustainable energy grid in the future while addressing the state’s immediate economic development needs.

Investments in Clean Energy

Expanding Renewable Energy Capacity

Simon Mahan, executive director of the Southern Renewable Energy Association, emphasized the importance of clean energy resources and transmission solutions in reducing customer costs and maintaining the high reliability that Georgians expect. The IRP calls for significant investments in clean energy, including more than 4,000 megawatts of new renewables by 2035 and over 1,000 miles of new transmission lines. The utility’s previous plan included the construction of new oil and gas plants, which were approved by regulators last year, indicating a balanced approach combining renewables with conventional power sources to meet energy needs. A robust investment strategy in renewable energy would not only support Georgia’s industrial growth but also contribute to long-term sustainability goals.

Future Technological Advancements

Georgia is leading the way in the new economy shaped by the Inflation Reduction Act, pulling in manufacturing companies dedicated to producing batteries, electric cars, and solar cells. The state is becoming an attractive hub due to substantial tax incentives offered for green technologies made in the U.S. This growth in the green manufacturing sector is undeniably impressive, but it comes with a significant challenge. As more factories and facilities set up shop, the state’s energy consumption is skyrocketing. To meet this increasing demand, Georgia finds itself leaning more heavily on traditional energy sources like natural gas and coal power. This reliance on fossil fuels presents a paradox in the state’s journey towards becoming a green technology leader. Despite advancements in manufacturing eco-friendly products, the energy needed to power these operations is, ironically, coming from less sustainable sources. Balancing this equation remains a critical issue for Georgia as it aims to fulfill its green ambitions while managing its energy needs efficiently.

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