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The latest NJBIZ panel discussion featured an expert group talking about an issue that is critically important and has been in the news quite often these days – energy.

Moderated by NJBIZ Chief Editor Jeffrey Kanige, the distinguished virtual panel featured:

• Christine Guhl-Sadovy, president, New Jersey Board of Public Utilities (NJBPU)
• Tim Sullivan, CEO, New Jersey Economic Development Authority (NJEDA)
• Kenneth Sheehan, counsel, Genova Burns, and co-chair of the New Jersey State Bar Association Renewable Energy, Cleantech, and Climate Change Committee for 2024-25

Costs and reliability

Kanige opened the discussion getting a sense where things stand in New Jersey, in terms of energy challenges and priorities — particularly on costs and reliability.

“I want to start with Christine because your agency certainly is probably the most directly connected to all of these issues,” said Kanige. “What do you see every day as sort of the main challenges that the Board of Public Utilities is now facing? What are your challenges, what are the priorities that you see going forward as we sit here today in October 2024?”

“So, let’s start with the No. 1 priority, as always, to ensure that the utilities are providing safe and reliable service – and to do that in an affordable way,” said Guhl-Sadovy.

“When we think about our clean energy goals and our goal of 100% clean by 2035, we are doing that from our stance at the Board of Public Utilities under Gov. Murphy’s leadership – in part because climate change is impacting the grid already,” she continued. “It’s impacting the utility distribution system. Stronger storms are causing more outages. Heat waves are creating higher demand, which puts strain on the grid.”

She continued, “So, doing our part in New Jersey to make sure that we are mitigating the impacts of climate change is not only about the planet – but also about ensuring that we have the necessary and appropriate infrastructure to continue to provide that safe and reliable service.”

‘Huge opportunities’

The NJBPU president believes there are a lot of opportunities – and a lot of challenges.

“We are seeing a growth in energy demand and a tightening supply,” she explained. “In the market it creates higher prices. We need more demand for a variety of reasons. But we have seen this growth more recently as a result of AI and data center growth, electrification, some retirements of generation. And so I think that’s one of the biggest challenges that we face – is ensuring that we have the amount of energy that we’re going to need to sustain our everyday lives.”

“And Tim, the NJEDA obviously plays an important role in helping to maintain and expand the infrastructure that Christine was talking about. From your perspective, what are the biggest challenges you deal with every day?” Kanige asked Sullivan.

Replay: Energy Panel Discussion

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“I think we see huge opportunities. One of the challenges is prioritizing how you sort of organize those opportunities,” said Sullivan, noting examples such as electric vehicles, offshore wind, hydrogen and more.

“The clean energy revolution is here – it’s happening,” Sullivan continued. “It’s happening around the world. It’s happening around the country. It needs to happen in New Jersey. And that creates enormous opportunities for job creation, for new industries, for new ways to power our economy more efficiently, more cost effectively over the long run.”

The clean energy revolution is here – it’s happening … And that creates enormous opportunities for job creation, for new industries, for new ways to power our economy more efficiently, more cost effectively over the long run.
– Tim Sullivan, CEO, NJEDA

“And Kenneth, you’ve heard all of that. What do you hear from your clients?” Kanige asked. “What are they telling you about what’s most worrying them? I hear and I’m sure you — it’s mainly cost, and the high cost, particularly in New Jersey.”

Sheehan said his firm hears from two sets of business customers. First, those trying to engage in the green economy who seek clarity in areas such as offshore wind and solar.

Better understanding

“They’re looking for the ability to understand what the rules are: where the funds are coming from; what they can do; how they can move forward; how they can work with the state in all of its iterations to help the governor reach the goals that he has set,” said Sheehan.

“From those entities who are not necessarily directly involved in the green economy – it’s basically cost,” he said. “The ability to run your business – cost. Ability to work with state – cost. At all times, you’re looking at that concern of the business ratepayer.”

He noted a recent hearing in the state Assembly to discuss the skyrocketing utility bills customers have faced in New Jersey, especially over the summer months. Sheehan noted how a lot of the discussion has centered on residential ratepayers.

“What I don’t think sometimes is recognized is that 60% of the energy is used by commercial and industrial customers – so that cost of energy applies across-the-board, whether it’s residential or commercial,” he continued. “And so, I think you’re seeing a lot of interest in moving forward in the green economy – having a cleaner, renewable energy supply. But cost is always – if it’s not No. 1 -it’s certainly no lower than No. 2.”

From there, the conversation hit through a number of pertinent topics on the broader energy issue, including:

• Whether capacity and reliability of the grid has improved;
• If existing infrastructure is adequate to meet renewable energy goals;
• Generation and distribution;
• The status of the transition to clean energy;
• Emerging technologies;
• Challenges posed by the proliferation of data centers and AI; and more.

Look for more from this energy panel discussion in the upcoming Oct. 28, 2024, issue of NJBIZ.