CCS Releases White Paper to Inform Maryland Legislature on Electricity Generation and Technology Alternatives
March 10, 2025. CCS has published a white paper for the Maryland legislature to inform policymakers on the implications of State Bill 937 (SB 937) and House Bill 1035 (HB 1035). This legislation concerns the energy outlook in Maryland, primarily the presumed demand growth from data center construction in Maryland. CCS’ paper, titled Maryland Alternatives to Additional Gas-fired Generation to Meet Expected Electricity Load Growth, provides a comprehensive overview of supply and demand response options and assesses the risks and benefits of the available energy investment strategies. CCS’ Arianna Ugliano provided verbal testimony during the legislative session to summarize the paper’s takeaways.
The white paper evaluates the state’s electricity demand forecasts, the potential for energy efficiency and renewable energy solutions, and the economic implications of large-scale natural gas power plant construction, as supported by the legislation. Key findings include:
Uncertainty in Load Forecasts: Increases in electricity demand, largely attributed to the growth of data centers and Artificial Intelligence (AI) applications, are uncertain.
Risks of Long-Term Natural Gas Investments: The construction of the new gas-fired power plants could cost $5-6 billion, excluding pipeline construction and maintenance. These capital investments carry risks of stranded assets.
Energy Efficiency, Renewables, and Transmission: Scalable and cost-effective energy solutions—including battery storage, solar power, wind energy, and transmission reconductoring—offer economically viable alternatives to new fossil fuel generation.
Cost Comparisons: While SB 937 excludes gas-fired power plants from the rate base, the associated costs would likely impact electricity rates for consumers and businesses. New nuclear is also likely to remain expensive, relative to other deployable options.
Alternative Options: Steps are available to accelerate deployment of battery storage, grid upgrades, and distributed energy resources in Maryland, which can provide supply and system reliability solutions while aligning with the state’s climate commitments.
CCS recommends further study of electricity demand forecasts and technological advancements, and a comprehensive evaluation of all supply- and demand-side energy options. In the meantime, Maryland policymakers should prioritize near-term capacity expansion through battery storage, solar deployment, and transmission upgrades.
It should be noted that in addition to long term demand growth from data centers, SB 937 was also proposed in response to high winter energy costs in Maryland this year. While inadequate generation supply has been blamed for the high costs, studies have indicated that recent electricity price spikes were primarily driven by extreme weather and power delivery bottlenecks rather than generation capacity shortages.
Read the full white paper HERE
