NextEra CEO says renewables needed as bridge to expanding gas power
WASHINGTON, June 10 (Reuters) - Renewable energy sources like wind and solar power are needed to meet rapidly growing energy demand in the United States amid near-term obstacles to increasing natural gas capacity, said NextEra CEO John Ketchum on Tuesday.
The head of the Florida-based power producer said at the Politico Energy Summit that competition and high costs to obtain gas turbines, a construction labor shortage, and the costs associated with tariffs mean that it will take at least seven years to get new gas-fired power plants online.
"We need a bridge to get ourselves to 2032 when that gas shows up ... And when that gas shows up, it's going be three times more expensive than it's ever been," Ketchum said.
"If we take renewables off the table, we are going to have a real power shortage problem in this country."
U.S. House lawmakers narrowly passed a budget reconciliation bill last month that would phase out clean energy tax credits, slash spending on renewables, and claw back other climate-related funds.
The House bill, which is now being debated by the Senate, shortens the window for developers to start and complete new clean energy projects to qualify for tax credits, and makes the incentives unworkable, Ketchum said.
Ketchum's comments reverse an oft-repeated defense of natural gas in the fossil fuel industry during previous administrations seeking to fight climate change that had framed the fuel as a bridge to a renewables-driven carbon-free energy system.
Trump opposes renewable energy subsidies and wants to expand production of oil, gas and coal. He has also declared an "energy emergency" to spur more fuel and electricity production, in part to meet growing demand for power for data centers and artificial intelligence.
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