John Ketchum, CEO of NextEra Energy, stirred the energy pot this week with a counterintuitive proposition: renewables should act as a bridge to more natural gas. This isn’t a call to arms for gas, but a stark admission of the immediate constraints facing the energy sector. Ketchum’s comments, made at the Politico Energy Summit, reflect a pressing reality: the U.S. needs new electricity now, not in a decade. With demand surging due to AI, electric vehicles, and broader electrification, renewables are the only technologies ready to deploy quickly enough to avert reliability crises.
Ketchum’s framing, though clumsy, highlights a critical issue: the timeline for new gas infrastructure is woefully slow. Gas turbines face delivery times of five to seven years due to manufacturing backlogs, aging infrastructure, and supply chain disruptions. Meanwhile, solar and storage projects can be up and running in under two years. This isn’t just a matter of speed; it’s about economics. Renewables offer lower levelized costs and price certainty, unlike volatile gas prices. Plus, the cost of new gas turbines has skyrocketed, making them less competitive.
So, what does this mean for the energy sector? For one, it underscores the urgency of investing in renewable infrastructure. If gas is to play a role, it must be as a complementary, not primary, source. This could accelerate the development of hybrid power plants that integrate renewables, storage, and gas. It might also spur innovation in small, modular gas turbines that can be deployed more quickly and flexibly.
Ketchum’s remarks also shine a spotlight on the need for policy coherence. Rolling back clean energy incentives in favor of gas could backfire, given the economic and logistical challenges of new gas projects. Policymakers might need to reconsider their approach, focusing on a more balanced, technology-neutral policy that supports the fastest, most cost-effective solutions.
Moreover, this debate could catalyze a re-evaluation of energy storage. If renewables are to act as a bridge, then storage is the key that unlocks their full potential. Expect to see increased investment and innovation in battery technologies, pumped hydro, and other storage solutions.
For investors, Ketchum’s comments serve as a wake-up call. The energy transition is happening now, and it’s happening with renewables and storage. Those who bet on gas as a long-term solution might find themselves on the wrong side of history—and economics.
Lastly, this debate could reshape the global energy landscape. If the U.S. leans heavily into renewables and storage, it could set a precedent for other countries grappling with similar challenges. It might also accelerate the development of international energy markets, with countries trading renewable energy and storage services rather than fossil fuels.
In the end, Ketchum’s remarks, however awkwardly phrased, have sparked a necessary conversation. The energy sector is at a crossroads, and the choices made today will shape the future of power for decades to come. It’s time to confront the realities of the energy transition and make decisions that prioritize speed, cost, and reliability. The future of energy is here, and it’s renewable.