3 min read January 2024 — Justin Maierhofer, regional vice president of the Tennessee Valley Authority, sat down with Invest: to discuss the big infrastructural changes being made to Middle Tennessee’s energy system to propel the region forward as it grows. “With all of this in-migration and industry growth, we are building the energy system of the future,” he said.
How does your long-standing track record inform the way you are looking to the future?
We celebrated TVA’s 90th birthday on May 18, 2023, and it was the largest day of volunteer service ever by TVA employees. They gave back to communities across our seven-state region by cleaning up parks and campgrounds and supporting events at the Boys & Girls Club and Urban Leagues. When TVA was created in 1933, President Franklin Roosevelt said TVA’s mission was to improve the quality of life of the people who live in the Tennessee Valley region. That mission continues and thrives today. Our “three E’s” mission is Energy, Environment, and Economic Development. We keep the lights glowing, the river flowing and the Valley growing. Many things have obviously changed in our 90 years. In 1950, our electricity demand made up 2% of the country. Today, we make up 22%. We are thinking about how electrification will look in the future, especially in the transportation industry. This is so important in Tennessee and throughout the region. Manufacturers of electric vehicles and their batteries, such as Ford’s substantial investment in Tennessee, are great examples of this. TVA is working with our local power companies to accommodate the change we may see in the next 15 years because of consumer demand and technological evolution.
How are you generating user empowerment?
We partner with 153 local power companies, municipalities and cooperatives across the Tennessee Valley region and support them as the wholesale supplier of electricity. We bring electricity to the city gate, and they serve the end-use customers. We are seeing many residents and businesses demanding more out of their choices. We are trying, as the wholesale supplier of electricity, to provide as many choices as possible. They want more in distributed solar generation at their companies, for example. In the past year, we had the first Green Invest partnership with Vanderbilt University, Nashville Electric Service (NES), Silicon Ranch and TVA. We came together to develop a program that would support their clean energy and renewable goals. The ribbon was cut on a project in Bedford County. It’s a great example of TVA working with our local power company, NES, to meet the expectations and desires of one of the key customers in their footprint.
Where do you see the biggest needs in utility infrastructure in Middle Tennessee?
We are seeing a lot of economic investment throughout our region, however, Middle Tennessee may be the fastest-growing part of the Tennessee Valley region, with 98 people moving into Nashville each day. We are seeing a lot of in-migration from across the country and industry relocating to the area. We saw a period of flat and low growth from 2012 through 2020. Between 2022 and 2023, we saw a 1.5% population increase. Since 2020, we have had to add 1,000 megawatts to meet the residential, industrial and commercial demand. Over the next three years, TVA will be investing $15 billion in our system, which includes new generation and investments in current assets. We are growing substantially, and TVA is looking at building 10,000 megawatts of solar by 2035. We are looking at constructing gas plants over the next five years, and we are currently bringing on 3,000 megawatts of electricity. With all of this in-migration and industry growth, we are building the energy system of the future.
How is TVA preparing for challenges related to climate change?
As climate change continues, we are seeing more frequent and stronger natural disasters, no matter where you are in the climate change debate. When our local power companies’ customers are out of power, they do not typically get phone calls asking if it’s nuclear, gas, or solar. People just want their lights on. How quickly we can meet those challenges and restore the system is really important.
TVA delivers a diverse energy portfolio. We are fortunate to have anywhere from 10% and 15% of hydroelectric power, depending on the annual rainfall we get, and approximately 30% gas. Our nuclear fleet represents over 40% of TVA’s generation, which is clean, affordable, and reliable. TVA is very excited because our nuclear fleet, for the first time in our history, is at the top of its class. Each of our nuclear reactors at every plant has been rated at exemplary. We have a goal of being the nation’s top nuclear fleet by 2025 through improved leadership training, culture and investment. As we think about the energy system of the future, I am not sure how you can think about cleaner air and climate change without having nuclear power being part of that. We are working on being 80% carbon-free by 2035 and 100% carbon-free by 2050.
What is your outlook for Middle Tennessee’s energy system, and how does this inform TVA’s priorities?
TVA is opening a new office in downtown Nashville, and we are so excited about having this presence downtown. TVA is eager to work with new Mayor Freddie O’Connell and his team in Nashville, as well as our other state and local partners who do an exceptional job in leading our area. There is a lot of excitement going on in Nashville and in surrounding counties, and TVA is excited to play a role in it.
We are still experiencing some impacts from high inflation, which increases the cost of goods, and some supply chain challenges remain. But as far as growth in Middle Tennessee, we are still exploding. With that growth comes challenges in infrastructure, traffic congestion, affordable housing and more. TVA wants to help and work with leaders to ensure Middle Tennessee continues to thrive. Our team is charged with working with our local power company customers, industry, local, state and federal officials, and community leaders, many of whom are represented in Invest:. We will continue to do our best, working alongside all of our partners,to serve the communities that are in our footprint while taking their uniqueness into consideration.
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