Welcome to today’s GridBrief! Today’s edition focuses on a major development in Iowa as NextEra Energy considers restarting its Duane Arnold nuclear plant, part of a larger trend toward nuclear energy’s resurgence. With growing electricity demand from AI data centers and electrification, nuclear is re-entering the spotlight as a reliable, carbon-free power source. We also dive into a new Heritage Foundation report that explores why electricity prices are soaring in states with aggressive renewable mandates.

Iowa Eyes Nuclear Comeback Amid National Revival

In a move reflecting the growing momentum behind nuclear energy, NextEra Energy has announced its consideration to restart the Duane Arnold nuclear plant in Iowa. This comes amid heightened demand for reliable power driven by the rise of AI data centers and increased electrification. Nuclear energy, long sidelined due to safety concerns and cost, is now making a significant comeback as utilities face pressure to stabilize supply and reduce carbon emissions.

The Duane Arnold plant, which closed in 2020, could be part of a broader nuclear revival, with even previously shuttered sites like Three Mile Island under review for reactivation. These efforts are not just about meeting power needs but ensuring the grid’s reliability—something that renewables alone have struggled to guarantee.

For those watching the energy landscape, this revival signals a crucial shift: nuclear is regaining its place as a key player in ensuring a cleaner, more resilient energy future, particularly as demand outpaces the capacity of intermittent sources like wind and solar.

Heritage Foundation Blames Renewables for Soaring Blue State Electricity Prices

A recent Heritage Foundation report highlights stark differences in electricity rates between states, claiming that progressive climate policies are to blame. Over the past 20 years, the gap between the most expensive and most affordable states has widened significantly. States with stringent renewable energy mandates—mostly blue states—are seeing sharp price hikes, while states relying on natural gas and traditional energy sources maintain lower prices.

The report criticizes renewable energy mandates and cap-and-trade systems for driving up costs. States like Texas and Florida, which have more flexible energy policies, benefit from cheaper natural gas and hydroelectric power. On the other hand, blue states like California face rising grid instability and higher costs due to their aggressive push toward solar and wind, despite significant federal subsidies. Heritage argues that this trend underscores the need for energy policies focused on reliability and affordability, particularly as grid demand increases with the rise of electric vehicles and data centers.

Upgrade to Grid Brief Premium to get extra deep dives into energy issues all over the world.

Conversation Starters

• Nigeria’s Power Revolution 
  The Enugu State Electricity Regulatory Commission (EERC) has officially replaced the Enugu Electricity Distribution Company (EEDC) with MainPower as the state's new electricity distributor. This move follows Nigeria's 2023 constitutional amendments, which now allow states to generate and regulate power independently. With local agencies stepping into the role, the shift could mark a significant step in energy independence across Africa—pioneering a sub-national model for the entire continent.
  

• Kenya’s Power Imports Surge 
  In Kenya’s 2023/2024 fiscal year, the country imported nearly 1,200 GWh of electricity, representing 8.77% of its power demand. With Ethiopia’s new 600 MW agreement now in full swing, Kenya’s energy future is increasingly tied to regional cooperation. Ethiopia is set to become Kenya’s second-largest energy provider after KenGen. As demand grows across East Africa, interconnectivity between nations is crucial to maintaining grid stability.
  

• Brazil Faces Inflation as Energy Costs Climb 
  Brazil’s inflation rate has surged in mid-October, driven largely by a sharp increase in electricity prices following a severe drought. The 5.29% jump in electricity costs has pushed consumer prices higher, and with the country’s central bank signaling more interest rate hikes, the impact on Brazilian households and industries could be significant.

Good Bet, Bad Bet

Bad Bet: Beatles and Decca Records
In 1962, Decca Records, a major British record label, made the monumental mistake of rejecting The Beatles, claiming that "guitar groups are on the way out." Decca opted to sign another band, Brian Poole and the Tremeloes, instead. Of course, The Beatles went on to become one of the most influential and successful bands in music history, selling millions of records worldwide and revolutionizing the music industry.

This bad bet by Decca Records is a stark reminder that even industry experts can completely misread the cultural and creative zeitgeist.

Good Bet: Enel Green Power (EGPW)
Invest in Enel Green Power Looking for an international player benefiting from rising energy demand in Africa and beyond? Enel Green Power has been expanding aggressively into renewable energy markets across Africa and Latin America. Their diversified portfolio includes solar, wind, and hydro projects, making them a strong bet as countries like Kenya increase their reliance on renewable imports. The company’s forward-looking strategy positions them well in regions with rapidly growing energy needs.

Share Grid Brief

We rely on word of mouth to grow. If you're enjoying this, don't forget to forward Grid Brief to your friends and ask them to subscribe!