Latest news with #electricityDemand
E&E News
a day ago
- Business
- E&E News
Texas lawmakers OK bill to manage surging electricity demand
A Texas bill aimed at helping plan for data centers and other new large electricity users and ensuring the reliability of the state's main power grid will go to the desk of Republican Gov. Greg Abbott. S.B. 6, passed by Texas lawmakers last week, is among a number of proposals in state capitols nationwide made in response to a surge of data centers, manufacturing and cryptocurrency mines that are putting pressure on the grid. Nationally, electricity demand is projected to jump 25 percent by the end of the decade from 2023 levels according to a recent report from consultants ICF. In the Electric Reliability Council of Texas (ERCOT), the power grid for most of the state, that growth rate could be twice that, according to regulators. Advertisement The Texas bill, proposed by state Sen. Phil King (R) and identified by Lt. Gov. Dan Patrick (R) as a legislative priority for the session that wraps up Monday, was pitched as a way to balance economic growth and grid reliability.
Forbes
4 days ago
- Business
- Forbes
Upstream Natural Gas Valuations: A Big Year
The electron precedes the molecule or so the saying goes. Well, that is not really an axiom to my knowledge, but it does seem to fit. Amid the uncertainty in oil markets, for the past year or so, optimism and valuation metrics for natural gas producers have steadily been rising. According to data from Mercer Capital's quarterly Value Focus: Exploration and Production, reports whereas a year ago show cash flow multiples (or sometimes referred to as EBITDAX in the oil and gas industry) for both oil and gas producers tended to centralize around four (4) to five (5) times, lately, publicly traded gas producers have EBITDAX multiples in the low- to mid-teens, while predominately oil producing companies' multiples have dropped. Oil & Gas EV/EBITDAX Multiples Q1 2024-Q1 2025 This has been a dramatic change in the past year compared to the industry's history. While onshore producers of oil and gas have many similar operational and economic traits, such as the shrinking inventory of top tier wells, this decoupling is representative of a fundamentally different outlook for the future of each commodity. Demand: Record Gas Demand Is Headed For More Gas has a bright future as a commodity as one of its key consumption outlets, electricity, is at an all-time high and is growing. The EIA reported a few weeks ago that after decades of relatively flat electricity demand, the desire for more current, volts, and ohms will be required for commercial growth, onshoring of manufacturing, and, of course, data centers that fuel A.I. Much of this is anticipated to be in other forms such as solar, but natural gas will be a part of this equation with 4.4 gigawatts of new natural gas-fired capacity to be built in 2025. U.S. Electricity Consumption 1990-2026 This is not short term either. The EIA also estimates electricity demand to grow by around 50% by 2040 in its latest Annual Energy Outlook. This should take some time to translate into measurable gas demand and potential price increases, which partially explains why EBITDAX multiples for companies such as Comstock Resources are relatively high. East Daley Analytics, an energy infrastructure consultant, claims that the gas market will operate in a cautious holding pattern for the time being. However, when LNG expansion terminals ramp up and electricity demand really picks up, the markets will tighten, especially in pricing hubs connected to export markets. LNG growth remains a bulwark for future natural gas demand growth from around the world, not just domestically. Market participants anticipate this as well. In the latest Dallas Fed Energy Survey projections suggest that gas prices, although not expected to get to $ per mcf like some executives would prefer, are headed towards $4.00 per mcf. Perhaps that is fueled by larger geopolitical developments such as the EU proposing a blanket ban on Russian natural gas. What do you expect Henry Hub natural gas prices to be in six months, one year, two years and five ... More years? Infrastructure Activity Ramping Up These dynamics are driving activity within multiple related segments of the marketplace. Just this week Hart Energy reported that the long embattled Constitution Pipeline in the Northeast United States is back on the table for Williams Companies. That's right, Williams is attempting to re-petition federal and state authorities for the Northeast Supply Enhancement project after Governor Kathy Hochul agreed to show openness to the construction of natural gas infrastructure in New York. Williams is also pursuing growth in its Transco system as well. Plus, in the past 45 days the Calcasieu Pass, Louisiana LNG facility launched commercial operations. That is just 68 months after its August 2019 final investment decision, a relatively quick turnaround for a project that large. In addition, the electrical utility and generation space has ramped up merger and acquisition activity. Blackstone is acquiring TXNM Energy, NRG Energy is acquiring generation assets from LS Power, and Vistra Corp. is buying 2,557 megawatts of natural gas generation assets from Lotus Infrastructure Partners for around seven (7) times EBITDA. In the last year where merger and acquisition activity has been slow, this is an optimistic indication of more building and buying to come. Supply: Good Inventory Shrinking While Efficiency Wanes Even though the U.S. has a lot more gas reserves relative to oil, there are only so many low cost wells that are profitable at gas prices below say $3.00 per mcf. Although, technology, particularly fracking, has been revolutionizing the industry, it is now around 20 years in. As my fellow Forbes columnist, Ian Dexter Palmer showed last week, fracks are long, complex, and use a lot of water and resources. Even so, the best locations are dwindling, and it will get more and more difficult to keep capital efficiency high on a per well basis. One investor group, Kimmeridge, put out a paper on this very issue a few weeks ago. The data is fascinating. While oriented towards analyzing remaining oil inventory, it covers gas too, and it demonstrates that core shale acreage in the United States is being exhausted based on estimated ultimate recovery of resources per foot of rock. In addition, the operating costs to find and develop oil and gas as compared to the operating cash flow, what Kimmeridge refers to as the 'recycle ratio,' started shrinking a few years ago and are projected to continue to shrink. This makes drilling more economically inefficient and thus incentivizes operators to wait to drill until prices make it worthwhile. There are some formations that have more runway than others, but overall, it will become increasingly difficult for an operator to drill a relatively inexpensive well. Kimmeridge mentions the Marcellus Shale as one field with a good amount of high-quality acreage remaining, but that is more of an exception than the rule according to the paper. Blending that with the increasing demand I mentioned earlier, it is a recipe for higher natural gas prices going forward. Add all of this up and it seems investors see cash flows picking up significantly in the future for upstream natural gas producers. It shows in robust EBITDAX multiples that investors in Expand Energy, EQT, Comstock Resources, Range Resources, Antero Resources, and the like appear to be eagerly looking forward to what comes next.
Yahoo
22-05-2025
- Business
- Yahoo
High Voltage Power Transformer Industry Research 2025-2031 with Analyst Recommendations - Enhance R&D for Energy-efficient & Eco-friendly Solutions / Strengthen After-sales Contracts
The Global High Voltage Power Transformer Market is projected to grow from USD 17.63 billion in 2024 to USD 32.19 billion by 2031, at a CAGR of 7.18%. This growth is driven by increased electricity demand, renewable energy integration, and grid modernization. The report details market segmentation by Power Rating (SPT ≤ 60 MVA, LPT > 60 MVA), Cooling Type (Oil Immersed, Dry Type), and Application (Utility, Industrial, Commercial). It covers regional and key country analyses, trends, drivers, and challenges, highlighting major players like Siemens and General Electric. Dublin, May 22, 2025 (GLOBE NEWSWIRE) -- The "High Voltage Power Transformer Market (2025 Edition): Analysis By Power Rating (SPT (= 60 MVA), and LPT (> 60 MVA)), By Cooling, By Application: Market Insights and Forecast (2021-2031)" report has been added to Global High Voltage Power Transformer market showcased growth at a CAGR of 7.18% during 2021-2024. The market was valued at USD 17.63 Billion in 2024 which is expected to reach USD 32.19 Billion in 2031. This report provides a complete analysis for the historical period of 2021-2024, the estimates of 2025 and the forecast period of 2026-2031. The global high-voltage power transformer market is experiencing significant growth, driven by a combination of factors such as increasing electricity demand, the integration of renewable energy sources, grid modernization initiatives, and the expansion of transmission and distribution networks. As the world transitions toward cleaner energy systems, the need for efficient and reliable power transmission infrastructure has become paramount. High-voltage power transformers play a critical role in this ecosystem, enabling the efficient transfer of electricity over long distances with minimal driver in high voltage power transformer is the global shift toward renewable energy sources. Governments worldwide are implementing stringent climate policies and setting ambitious targets to reduce carbon emissions, leading to a rapid increase in renewable energy installations such as wind farms and solar parks. However, these energy sources are often located in remote areas, far from urban centers where electricity demand is highest. High-voltage power transformers are essential for transmitting this renewable energy efficiently to the grid, minimizing energy losses during long-distance transmission. This trend is further amplified by the growing adoption of ultra-high-voltage (UHV) transmission lines, which are capable of transporting large amounts of electricity over vast distances with minimal of the most prominent trends in the market is the increasing adoption of renewable energy sources such as wind, solar, and hydropower. As countries strive to meet their climate goals and reduce carbon emissions, the integration of renewables into the power grid has surged. However, renewable energy generation is often located in remote areas, far from consumption centers, necessitating the use of high-voltage transformers to transmit power efficiently. This trend is further amplified by the growing emphasis on cross-border electricity trading and the development of interconnected grids, which require advanced transformer technologies to manage voltage levels and ensure seamless power advancements are reshaping the high-voltage power transformer market, with a focus on enhancing efficiency, reliability, and sustainability. The development of smart transformers equipped with digital monitoring and control systems is gaining traction. These transformers enable real-time data collection, predictive maintenance, and remote diagnostics, reducing downtime and operational costs. Additionally, the use of advanced materials such as amorphous metal cores and biodegradable insulating oils is improving transformer performance while minimizing environmental impact. The integration of Internet of Things (IoT) and artificial intelligence (AI) technologies is also transforming the market, enabling utilities to optimize grid operations and enhance energy the positive outlook, the market faces challenges such as high capital costs, supply chain disruptions, and regulatory hurdles. However, these challenges are being addressed through strategic collaborations, government incentives, and technological innovations. The shift toward decentralized energy systems and the rise of microgrids are also influencing the market, creating new opportunities for high-voltage transformers in distributed generation conclusion, the global high-voltage power transformer market is poised for robust growth, underpinned by the increasing demand for electricity, the transition to renewable energy, and technological advancements. Regional dynamics, coupled with evolving energy policies and infrastructure investments, are shaping the market landscape. As the world moves toward a more sustainable and interconnected energy future, high-voltage power transformers will remain a cornerstone of the global power infrastructure, enabling efficient and reliable electricity transmission while supporting the integration of clean energy of the Report The report analyses the High Voltage Power Transformer Market by Value (USD Billion). The report analyses the High Voltage Power Transformer Market by Region (Americas, Europe, Asia Pacific, Middle East & Africa) and 10 Countries (United States, Canada, Brazil, United Kingdom, France, Germany, Italy, China, Japan, and India). The report presents the analysis of High Voltage Power Transformer Market for the historical period of 2021-2024, the estimated year 2025 and the forecast period of 2026-2031. The report analyses the High Voltage Power Transformer Market by Power Rating (SPT (< 60 MVA), and LPT (>60 MVA)). The report analyses the High Voltage Power Transformer Market by Cooling (Oil Immersed, Dry Type). The report analyses the High Voltage Power Transformer Market by Application (Utility, Industrial, Commercial). The key insights of the report have been presented through the frameworks of SWOT and Porter's Five Forces Analysis. Also, the attractiveness of the market has been presented by region, by power rating, by cooling, & by application. Also, the major opportunities, trends, drivers, and challenges of the industry has been analyzed in the report. The report tracks competitive developments, strategies, mergers and acquisitions and new product development. Analyst Recommendations Enhance R&D for energy-efficient & eco-friendly solutions Strengthen after-sales services & maintenance contracts Competitive Positioning Companies' Product Positioning Market Position Matrix Company Profiles Siemens AG Schneider Electric SE Mitsubishi Electric Corporation Fuji Electric Co. Ltd. General Electric Co. Eaton Corporation PLC Hitachi Toshiba Corporation Legrand Vertiv Holdings Co. For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
21-05-2025
- Business
- Reuters
Group that blocked New Mexico utility merger eyes data centers in Blackstone deal
NEW YORK, May 21 (Reuters) - Blackstone Infrastructure's (BX.N), opens new tab plans for data centers in New Mexico will be a deciding factor in whether stakeholders challenge the private equity group's $11.5-billion proposed acquisition of electric company TXNM Energy (TXNM.N), opens new tab, the group that blocked TXNM's previous merger plan told Reuters this week. TXNM, which is a holding company for regulated utilities, including PNM in New Mexico, announced its sale agreement with Blackstone on Monday in the latest of several recent U.S. power industry deals propelled by rising electricity demand from Big Tech's AI data centers. The agreement will require the approval of state regulators, with input from PNM stakeholders, including the New Mexico Department of Justice, consumer advocates and clean power groups such as New Energy Economy. New Energy led the effort to ultimately thwart TXNM's last agreement to sell to power company Avangrid, the U.S. unit of Spanish electric company Iberdrola. After the fight over the proposed acquisition escalated to the New Mexico Supreme Court, Avangrid abandoned its $8.3-billion bid for TXNM in late 2023. Since the foiled deal, data centers have emerged as the biggest driving force behind U.S. electricity demand, which is on track to reach record highs this year and in 2026. How Blackstone plans to capitalize on that demand in New Mexico will be a key issue in New Energy Economy's scrutiny of the TXNM purchase, the nonprofit's director, Mariel Nanasi, said. Among the considerations are whether Blackstone intends to own data centers in New Mexico, either directly or through affiliates, and how it handles the costs of upgrading electrical systems to connect the large energy loads, Nanasi said. "We are going to want to have real guardrails around that," she said. TXNM and Blackstone representatives, on a call with investors shortly after the acquisition announcement, said they planned to meet with stakeholders over the next 90 days before filing their plan with the state. As artificial intelligence data centers proliferate and grow to use record amounts of electricity, regulatory fights have emerged over who pays for additional infrastructure and upgrades needed for the giant energy consumers. The regulated utilities under TXNM can power data centers, but they are barred by state regulations from developing, owning, or operating the centers for third parties, said one person familiar with the Blackstone-TXNM arrangement, who spoke on condition of anonymity. Any transmission upgrades or power generation built to serve data centers would be paid for by the data center companies, the person said.
Bloomberg
14-05-2025
- Business
- Bloomberg
Silicon States: US Data Center Expansion in the AI Era
The rise of AI data centers is reshaping the outlook for US power markets. Forecast to account for nearly a 10th of all US electricity demand by 2035, data centers are gobbling up power more quickly than electric vehicles, hydrogen or any other demand class this decade. A profound concentration of capital has allowed for this rapid expansion, which is now exerting influence over energy infrastructure and planning investment. But what forms do data centers take, and what are the factors and strategies that influence associated decision making? On today's show, Tom Rowlands-Rees is joined by BloombergNEF's Head of US Power, Helen Kou, and Senior Associate Nathalie Limandibhratha to discuss their recent note 'US Data Center Market Outlook: The Age of AI'.
