Gov. Abigail Spanberger dropped a few hints Tuesday about what will be in the energy plan she’s releasing on Thursday.
She said she backs more on-site electricity generation for data centers so they’re not pulling power from the grid. She also said her energy plan will lay out multiple options for Virginia to meet its power needs in the years ahead.
“What are the gives and takes?” Spanberger asked. “What are you sacrificing? What are you getting from the different energy mix choices? And so we modeled out and actually pushed out a variety of different examples where we show these different types of plants have various different localized pollutant risks with these types of energy generation. We have this amount of CO2 emissions. And what is the ultimate cost to the user? So that really anyone who chooses to read a 100-page report on Virginia’s energy plan has a good sense of what all the options are.
“And importantly, I think as you’ll see when we release it, there’s not one single right path because there’s something you give up with every choice that you make. When you forego one option, you’re giving something up even when you’re gaining something. And so, making sure that people have a clear understanding of the push and pull as we create the right energy mix into the future is something that very intentionally will be including in the plan we’re going to be releasing later this week.”
She said one goal of the energy plan is “making sure that people have a clear understanding of the push and pull as we create the right energy mix into the future.”
Spanberger’s hints about the energy plan came at an event in Danville sponsored by Cardinal News and the Institute for Advanced Learning and Research where the governor was invited to speak about economic development and then took questions from the audience. I served as moderator to read those audience questions. (Cardinal sponsored a similar event during then-Gov. Glenn Youngkin’s first year in office; the event was held in Bristol.)
Those remarks came in the context of a question about data centers and their energy requirements. While data centers have become pariahs in many localities, political and business leaders in Danville and Pittsylvania County have embraced a large-scale data center coming to the Southern Virginia Megasite at Berry Hill. The developer, Stack Infrastructure, has signed a performance agreement that calls for creating 2,500 permanent jobs over the next 20 years at the site. The Stack project prompted several questions from the audience about how Virginia can guarantee that localities that want data centers can still host them — and about on-site power generation.
The governor said her chief of staff had spoken recently with Stack representatives to make sure that the project is a go; she also noted that the company had spoken favorably of her recent executive order — and related legislative proposals — on data centers.
“This is a project that, importantly,” she said, “is a project that is wanted by the local community. And when I’m looking at how it is that we handle data center investment, or frankly, any type of investment into the future, it is a question of what do communities want.”
She was asked specifically about whether data centers could use natural gas to generate power on site. She enthusiastically backed on-site power — “It’s incredibly important that we have on-site generation” — but did not specifically address natural gas, something that environmental groups oppose.
“This is a place where I’ll go back to the word that I mentioned before, innovation,” she said. “Here is a lot of work being done as it relates to fuel cell, other types of noncombustion natural gas types of energy generation, where we can really ensure that we are meeting long-term the Virginia Clean Economy Act goals into the future, and also ensuring that we’re adding greater stability and reliability to the grid by having a behind-the-meter work, the bring-your-own generation.”
She also mentioned the prospect of small nuclear reactors and fusion technology, the latter of which is being developed by Commonwealth Fusion Technology in Chesterfield County.
“There are, on the path outside of Richmond, the potential, there are deals in place with data centers to develop small modular reactors,” the governor said. Her staff later said Spanberger was referring to previously announced plans by Amazon to work with Dominion Energy on a small nuclear reactor at Dominion’s North Anna nuclear station in Louisa County. (Disclosure: Dominion is one of our donors but donors have no say in news decisions; see our policy.)
Separately, Appalachian Power has announced plans to explore a small nuclear reactor at its Joshua Falls substation in Campbell County. Last year, the Goochland County Board of Supervisors voted to adopt a Technology Overlay District designed to attract data centers; it specifically allows small modular reactors.
Among other things the governor said Tuesday at the Danville event:
She acknowledged ‘solar fatigue’ in some rural counties
One questioner told the governor that Pittsylvania County, and other rural counties, “have complete solar fatigue” by the number of solar facilities in those communities. The Solar Database maintained by the Weldon Cooper Center for Public Service at the University of Virginia shows that Pittsylvania and neighboring Halifax County each has approved 24 solar projects, more than any other counties in Virginia.
“There are many communities that may have complete and total solar fatigue,” Spanberger acknowledged, but she noted that “Solar energy is the cheapest and fastest energy to get electrons out onto the grid” and that there are other ways to develop solar energy than large-scale “solar farms.”
“Among the things that we are prioritizing is really trying to expand some of our distributed energy resources,” the governor said. “Distributed energy resources and, you know, including rooftop solar, including school rooftop solar, public building rooftop solar, parking lot carport solar. Now, of course, this type of solar is more expensive than your sort of traditional larger-scale commercial solar installations. But there is a benefit to leveraging this type of distributed energy generation.”
She also mentioned that this year’s General Assembly passed a measure to promote agrovoltaics. “Those are solar panels that can be used concurrently with principally, you know, livestock grazing, some smaller local ground specialty crops can grow right alongside them to give people options,” Spanberger said. “If a farmer chooses or may wish to utilize the leverage agrivoltaics for diversification on their farm, that can be their choice.”
Virginia is ‘leaning into’ life sciences
The governor was asked what Virginia is doing to create a workforce for the future. “We are really leaning into the life sciences and biotech firms,” she said. “This is a direct result of the work that is happening at Virginia Tech, at UVa, at VCU, at Virginia State, and recognizing that we are creating a new ecosystem” around pharmaceuticals. That also follows the growth of the pharmaceutical industry in the state under former Govs. Ralph Northam and Glenn Youngkin. “We’re also working to expand our manufacturing workforce for the advanced manufacturing work” that is related to pharmaceuticals. “Now Virginia is increasingly known as a place where that type of investment is important, or will get a return because you’ll be able to get a workforce.”
She’s still looking for ways to expand childcare
The governor fielded multiple questions about ways to expand childcare — which, the questioners noted, is connected to economic development.
“Certainly my administration has made investments in the budget for the childcare subsidy,” she said. “It’s an important program, but it doesn’t contend with the supply-side challenge of just not having enough childcare options. And so I will say that we are still looking beyond the state for potential solutions to see what other states have been doing … We are still trying to figure out what are the hurdles that stop an entrepreneur from opening a childcare facility … If anyone has any feedback on this, we welcome it.”
She encouraged people to apply for boards and commissions
One question dealt with why so many economic development boards are dominated by leaders from traditional industries when the state is trying to encourage startups. Why aren’t there more representatives from younger companies?
The governor encouraged people to apply for positions on the many boards and commissions the state has. “Please reach out to our team,” she said. “If you know someone who might be hesitant to apply, please flag them for us.”
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