FORWARD:
Energy policy in Ohio has become increasingly complex, creating an environment where entrenched special interests thrive while consumers are left footing the bill.
At Americans for Prosperity Ohio, in partnership with The Buckeye Institute, we are proud to present this study—a foundational resource for citizens and legislators who believe in free-market solutions and a consumer-first approach to energy policy.
For too long, Ohio’s energy policies have been dominated by cronyism and opaque frameworks that prioritize special interests over consumers, resulting in higher costs and fewer choices for Ohioans. This report seeks to demystify Ohio’s energy landscape, shedding light on the real problems while equipping policymakers with the tools to implement bold, transparent reforms.
By focusing on transparency, competition, and innovation, we can foster a
paradigm shift that places Ohio consumers—not special interests—at the center of energy policymaking. This study serves as both a primer and a call to action, laying the groundwork for a future where Ohio leads the way in energy innovation, economic growth, and individual freedom.
Together, we can ensure that Ohio’s energy policies not only power our state but also empower its people.
Donovan O’Neil
State Director
Americans for Prosperity Ohio
EXECUTIVE SUMMARY
Until recently, U.S. demand for electricity had been relatively flat for years.
Regulators and grid operators built generators and transmission lines accordingly, expecting that energy demand would continue to grow slowly. Those projections proved inaccurate as computer data storage, artificial intelligence programs, electric vehicles, and cryptocurrencies have emerged rapidly to require and consume massive amounts of electricity. New forecasts now predict that data centers alone will consume almost 10 percent of America’s total electricity consumption by the end of the decade1—an almost 400 percent increase from 2023 levels.
Energy supply should rise with demand. But government policies have artificially limited supply of less expensive, dispatchable energy, favoring more expensive and less reliable “green” energies. Bureaucracies at every level encourage reliable power producers to close or never open, and have made powerplant upgrades and expansion difficult, costly, and time-consuming. These preferences aimed at reducing the “carbon footprint” contravene the simultaneous demand for ultra-reliable energy for AI-computing, cryptocurrency mining, and data storage centers that must be powered around the clock. Intermittent energy sources cannot meet these demands and Europe’s experience should warn American policymakers of the economic dangers of pursuing poor energy policies. European energy policies and carbon taxes promoted green energy and forced many dispatchable powerplants to close. Even before Russia invaded Ukraine, Europe suffered artificially high electricity prices—with natural gas being four to five times more expensive than in the United States—that create severe economic disadvantages when compared to America, China, and other global competitors.3 Ohio faces an electricity shortfall because of inadequate energy infrastructure needed to easily produce, transmit, and store fuel sources and power relative to expected demand growth. Policymakers must address this shortfall quickly because although its effects may not be felt for several years, energy infrastructure develops slowly and current policies will impede that development.
Instead of adopting the European energy model, state and federal policymakers should promote energy sector competition, streamline regulations and permitting, and end government subsidies that favor inefficient energy types at taxpayer expense. Adopting such policies will spur economic growth, enrich American families and businesses, and sustain the standard of living that the modern U.S. household now enjoys and expects.
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