The United States economy is in danger of running out of power. After a decade of flat demand, electricity demand is set to grow byare not prepared. The sudden increase in demand is being driven by both the market and by politics. The market is responding appropriately to demand signals. But the Biden administration is asleep on how to respond.for why electricity demand is exploding. Accelerated computing powered by semiconductors requires multiples more power than old fashioned data centers.
Cryptocurrencies, too, require an immense amount of electricity. People, in part, invest in cryptocurrencies in the belief that the federal government will default on the national debt. Cryptocurrency enthusiasts look at the large deficits accumulated under the Trump administration and now with the Biden administration and purchase crypto assets
The third major cause of the secular increase in demand for electricity is the Biden administration’s pursuit of a green economy. Through the inaptly named Inflation Reduction Act, the administration is providingin subsidies to transform the U.S. economy from carbon-based electricity to green energy electricity. But the Biden administration is blind to how much electricity is required for a green economy.to provide clean technologies such as solar panels and electric car batteries.
That will not happen in the U.S. because permitting reform is not politically feasible. It requires a decade or longer to build a new electricity transmission system. Put simply, politics makes it impossible for the U.S. to supply the electricity necessary for a green hydrogen economy. In turn, some local economies will successfully transition to an AI world with a low carbon footprint. But many local economies will not.
Still, the basic point remains: to meet the large and unexpected increase in demand for electricity, a combination of natural gas power, nuclear power, and some green energy power will be required. The public demands economic growth and economic prosperity. A completely green energy economy is a fantasy promoted by the progressive Left, who are clueless about economics and the “wants” of the public.