As Nebraska seeks to grow, Omaha’s energy capacity is a major hurdle

In 2021, Winter Storm Uri triggered utilities to scramble for power across the country. Nebraska faced similar challenges, with Omaha Public Power District (OPPD) resorting to rolling blackouts to maintain grid stability. Following the incident, the Southwest Power Pool mandated its members to retain more power capacity in reserve for emergencies.

As new industries emerged, such as data centers and electrification, the demand for energy spiked, leaving utilities like OPPD with limited capacity to meet the growing needs of economic development projects. OPPD, serving 419,000 customers in eastern Nebraska, currently projects a shortage of less than 100 megawatts of available power for new or expanding large customers for the next few years.

This shortage threatens the region's economic growth, job creation, and tax revenue. Despite the challenges posed by aging infrastructure, increasing demand, and climate change, residents in Nebraska oppose renewable energy projects that could alleviate some of these issues. OPPD president and CEO Javier Fernandez acknowledged that new or expanding developments requiring 2 megawatts or more might face delays, which could hinder economic growth.

Economic development leaders expressed concern that if Omaha's power capacity remains limited, the region and the state could be at a competitive disadvantage. OPPD is currently planning for the next 10 years and must decide on the extent of energy capacity expansion. While more generation capacity is expected to come online, high energy demand projections and potential big customer projects pose a challenge.

The utility must balance the risks of building too little or too much capacity, as well as the need for clear economic development plans from state and local leaders.