Ken Canavan, President, E4 Carolinas, Inc.

In an interview with Invest:, Ken Canavan, president of energy trade association E4 Carolinas, spoke about the impact the association has on the Southeastern U.S. energy sector as well as the challenges that energy companies face.

The energy sector transition is one of the largest transitions in our country’s history. According to the International Energy Agency (IEA), energy companies plan to invest around $2 trillion in clean energy over the next decade, with estimates suggesting that roughly $4.6 trillion per year may be needed by the early 2030s to achieve net-zero emissions by 2050.

In speaking with Ken he mentioned that, “In today’s highly polarized society, it is important to bring people together, listen to each other and have an honest conversation about long-term issues facing our society, such as transitioning the energy sector towards cleaner, more distributed generation while meeting growing energy demand in the most affordable way. Energy in our society touches every aspect of our lives. We all need to remember  that if we get the energy transition wrong, it could have lasting economic impacts, environmental impacts and reliability impacts in our region. ” This is where E4 Carolinas comes in, bringing the energy industry together to collaborate and to educate stakeholders on the sector’s value to our economy, environment and people’s everyday lives.

What are the most important contributions of E4 Carolinas to the energy sector in the Southeast?

We are an energy trade association of around 100 energy companies in North and South Carolina and the southern regions of the country. E4 member companies range from large participants, such as Duke Energy, Framatome, Siemens, and Westinghouse, to smaller suppliers supporting those companies and their customers. We bring value to our members in two key ways: collaboration and education. We bring companies together through networking events, webinars, and other media so they can have conversations and dialog on important issues facing the energy industry and collaborate. In some instances, companies may find they have common needs for new technology for example and decide to partner. We also have several focus areas in education. While we don’t lobby, we educate and advocate for the sector as a whole. Our recent nuclear study for example educates policy makers on the economic value nuclear energy brings to the Carolinas. Another example is hosting policy forums where legislators, regulators and other stakeholders can gather and get more information on sector issues at the federal as well as the state level.

Like many sectors, workforce challenges are no exception in the energy sector. E4 Carolinas has several programs that help get employees new to the sector up to speed quickly on energy basics – providing a faster on-boarding for member’s employees. This is another example of how E4 brings value to its members through education.

What are the most important trends in the energy sector in North and South Carolina?

The energy industry is undergoing one of the most significant transitions since its inception. As older generation plants are retired, we are now transitioning to a lower carbon future, more distributed generation and smarter transmission systems. This requires an unparalleled investment in our energy infrastructure. At the same time, certain regions, such as the Carolinas, are seeing demand for energy grow. Data centers are exponentially growing and AI is only going to increase that demand. How to accomplish this transition requires balance. 

No matter what part of this business you are in, it is an exciting time. Whether you are a solar panel or wind turbine manufacturer or are in nuclear power or natural gas, there are lots of changes and opportunities to lower carbon and to make our energy generation cleaner. What is clear, is that we will need all sources and technology to transition correctly and ensure safe, affordable, available, and low carbon energy.  

What are some of the unique challenges that energy companies face in the Southeast?

It is an exciting time in the energy sector and it is not without its challenges. I suspect one of the hardest parts of being a policy maker charged with overseeing this transition in the most affordable way is that everybody sees the transition from their own perspective. 

E4 Carolinas members believe that in order to have balance, the Carolinas, and in fact much of the country, needs all generation sources, a renewed focus on efficiency and a strong plan to modernize our grid.  

We need to remind ourselves that we can get this transition wrong and the impact of that will be felt for decades in terms of economic prosperity, job growth and creation, and relevance in the new energy economy.  

How does E4 Carolinas foster collaboration among its members to drive economic growth and innovation?

One of the most important things we do is education. Our Carolinas Emerging Energy Leaders Program (CEEL) and our Energy Bootcamp are a key part of that. Our leaders program develops the next set of visionary leaders. These are the future leaders of the energy industry. These leaders understand the key drivers of the industry: the spectrum of energy sources, the importance of balancing those sources, how we distribute that energy, how we transmit it, and how we use it. 

The Energy Bootcamp is geared towards developing a general knowledge of the energy industry, the drivers, and the key issues. Anyone who works for an energy company should attend! Bootcamp is a 10-hour course that deserves the name and produces results.  E4 Carolinas also focuses on bringing people together on energy topics, topics to work together to develop the optimum solutions that balances all four E’s. An E that is often overlooked is efficiency, which is simple. Every electron generated and put on the grid needs to be used because we do not store power – at least not much. Therefore, if you are efficient and do not use an electron, then you do not generate one. In one respect, efficiency is the cleanest form of power. Finally, we focus on bringing everybody along in terms of economics. The cost of power is important for the economy and for all of us living in the Southeast. We need to keep the Carolinas and the Southeast competitive, both nationally and internationally to bring employment and prosperity. This is also really important for all of us who pay the electric bill. 

How have macroeconomic factors such as inflationary pressures, high interest rates, and uncertainty impacted the energy sector?

Energy companies are not immune to the inflationary pressures that other sectors are facing. What is somewhat unique to energy companies is that as a largely, heavily regulated industry, it can take some time for company costs to make their way to customers, particularly utilities. This can create what is called, ‘regulatory lag’ for utilities. Energy projects, such as a new transmission line or building a new pipeline or power plant, can take years to build. Political uncertainty, cost recovery uncertainty and a splintered environment can make achieving growth objectives challenging. Fortunately, the Carolinas has a generally positive regulatory environment and our members are seasoned veterans in reaching out to stakeholders to accomplish objectives. E4 plays a supporting role by educating and supporting collaboration across our members. 

Companies looking at their bottom line to remain viable. The economics of North and South Carolina and the Southeast are, in general, very positive. Nevertheless, that can and will change if we do not ensure an abundant, low cost, and environmentally sensitive energy mix. Power costs more in the Northeast, so labor, electricity, and even housing costs more. The economy is driven by power, and the cost of power is significant to regional economics. 

Power in the Southeast is lower than the national average, but if we do the transition wrong, we could increase the cost of power and hurt our economic prospects. For instance, if renewables are built too quickly and intermittency is not accounted for, coal plants may end up supporting the renewables. That is not ideal as the most polluting plants are cycling coal plants. The result is we do not get the energy transition that delivers the low-carbon results we want.

Thinking about it and doing the transition right balances and optimizes the four E’s. Doing so looks at the low-carbon future through the lens of what it costs, what sources we use, what resources are available, and how we walk through the process. For instance a thoughtful process of removing the highest carbon emitting sources such as coal while entertaining natural gas plant additions (if needed) with a careful eye on a timeline that does not break the bank but creates a sustainable path. The bottom line is that we must transition smartly, with one eye on the economy and another on the low carbon footprint. 

What are some of the key policy challenges facing the energy industry in the Carolinas, and what is the strategy of E4 to address them?

We do not directly address policy such as lobbying as E4 Carolinas is a 501(c)(6) nonprofit. We focus on educating and bringing the information and conversation to the federal, state, and local stakeholders and the industry that supports them. It is important to understand what is possible and practical. 

We work to bring the government together with the stakeholders, the industry, and the public, and gather all that input together for flexible and attainable solutions. The idea is to view the calculus as it changes to accommodate the growth that is part of the Carolinas. If we try to transition too many sources at the same time, it may become difficult to get the needed generation on line when needed and we may hazard our economic growth. E4 works through education and bringing together members of industry and government policymakers.

What are your outlook and top priorities for E4 Carolinas in the next few years?

The outlook for the Carolinas, the Southeast, and E4 are tied together. The future looks promising because the Southeast is a place where people still like to converse and still listen to each other. The focus of E4 is to get more people involved in the conversation, to educate and help everyone understand the challenges and decisions in front of us. We need to get all involved and engaged because we all want a low-carbon future using the best available technology that we can afford.

There are also a lot more energy related companies to reach, more people to bring together, and a lot more education to be had. E4 looks forward to having that conversation and continuing our mission.