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Last month, IBJ owner Nate Feltman outlined three “big challenges” that our next governor must address. Indiana’s energy future was rightly at the center of the list; our path forward is quite murky, especially as electricity demand surges nationally.
One would think that Indiana, a deeply pragmatic state with forward momentum, is soaring ahead with certainty on how we’ll meet the energy needs of tomorrow. No. The whole discourse feels chaotic, crowded with one-sided perspectives of special interests, including coal, eco-activists, nuclear and more. Consequently, the Statehouse finds itself regularly embroiled in fights over seemingly sensible energy legislation and pet-project bills that have marginal benefit or put the state back.
The stakes are high and dithering untenable. Almost like the flick of a light switch, billions and billions of investment dollars have landed here in the past several months to build new data centers, microchip factories and pharmaceuticals hubs—and from major players like Lilly, Google and Amazon. This is on top of the industry base that has proudly made Indiana the most manufacturing-intensive in the nation. The question facing us, and the country, is: Will we be able to keep up with electricity demand?
To chart a successful course through the next few years, Indiana needs to stake out a position of energy dominance. But we need clear thinking, comprehensive analysis and innovative approaches, especially as our pace quickens and our national allure grows.
Clear thinking on energy strategy would recognize the need to optimize around three key parameters: We need cheap energy, reliable energy and clean energy.
Once an energy affordability leader, we’ve fallen to barely average nationally, with recent energy hikes from many providers. Reliability-wise, we need to keep a commitment to being 100% reliable as we bring online all these big energy users. Finally, to keep our state nationally competitive in attracting businesses from near and far, we must deliver energy that’s low on pollution, or they just will not invest.
Clear thinking also includes seeing the difference between deployment and development. Some energy technologies are readily deployable on a meaningful, short-term time scale—like natural gas, solar, wind, and increasingly, battery storage. Others, while ripe with exciting potential, are not yet, like advanced nuclear and hydrogen. Instead, for them, we should say our approach is development over the medium term, especially given Indiana’s comparative advantages in manufacturing prowess and innovation. Purdue, with one of the nation’s top nuclear engineering programs, is already doing this with small module reactors, and Cummins and others with the new nationally announced Midwest hydrogen hub.
After this set of parameters—cheap, reliable and clean—we need a comprehensive analysis of the tools at our disposal. Smarter grids, more and improved transmission lines, energy efficiency increasingly made possible by AI and tech are just a few. Physical technologies, like heat pumps and energy-efficient HVAC, are available today. Certainly, Indiana, an industrial hub and the Crossroads of America, can lead on developing and deploying these energy-demand and transmission innovations.
I respect those that have had a serious attitude to helping the state navigate this topic, notably the Holcomb administration, and especially at a time of a global energy crunch. Now, with new energy demands stacking up, I urge our leaders to snap into focus, to keep pace with our economic development, protect the environment and keep Hoosier families whole across the state.•
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Gemelas is chief operating officer at Climate Solutions Fund, outstanding fellow of Mitch Daniels Leadership Foundation and a proud Greek-American. Send comments to ibjedit@ibj.com.
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