Arkansas and energy production
Arkansas is a state that relies heavily on fossil fuels for its energy needs, particularly due to its industrial sector, which is energy-intensive. The state's electricity generation comes from various sources, with natural gas-fired plants dominating, followed by coal, hydroelectric, and nuclear power. Despite this reliance on fossil fuels, Arkansas is actively working to improve energy efficiency and increase the use of renewable energy. State legislation has been enacted to mandate energy reduction in state facilities and attract renewable energy initiatives through tax incentives.
Though Arkansas has one of the highest per capita energy usages in the U.S., efforts are being made to enhance energy efficiency across public utilities. The Arkansas Public Service Commission regulates energy services and encourages utilities to promote energy-saving programs. Renewable energy sources, particularly hydropower, have seen growth, with solar power expanding rapidly in recent years. As Arkansas seeks to transition to a more sustainable energy future, it faces the challenge of reducing its dependence on fossil fuels while addressing the energy needs of its industries and residents. Moreover, there is a growing call for further legislative changes and public awareness to foster greater adoption of renewable energy.
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Arkansas and energy production
Summary: Arkansas remains reliant on fossil fuels to supply its energy needs, including the demand from its energy-intensive industrial sector, but is working to implement legislation and programs to increase energy efficiency and renewable energy.
Arkansas uses a variety of energy resources in the production of electricity, including natural gas-fired, coal-fired, hydroelectric, and nuclear-powered plants owned by a variety of public, private, and municipal utilities. Natural gas-fired power plants dominate. The Arkansas Public Service Commission regulates most utilities within the state. State legislation such as Act 1494 and Executive Order 09-07 has mandated the reduction of energy usage in state facilities, while tax incentives and other measures have attracted renewable energy and green businesses to the state.
The Arkansas Energy Office and private groups offer a variety of energy efficiency and renewable energy services. Arkansas has a high per capita energy use in comparison with many other states, despite its relatively small population, in large part due to the presence of a large industrial base that leads the state in energy consumption. Arkansas is part of the West South Central Grid, alongside Louisiana, Oklahoma, and Texas. Arkansas’s electricity demands have been steadily rising since the mid-2twentieth century. In 2023, coal accounted for 27 percent of the state's electricity generation. Coal is supplied from Wyoming via railroads. Oil and natural gas are large industries and key employers in the state, with natural gas production representing approximately 1 percent of national output. The dual-unit Arkansas Nuclear One power plant, located in Russellville, produces close to a third of the state’s electricity. Natural gas accounted for 39 percent of the state's electricity generation in 2023.
Arkansas contains a variety of local, regional, and state public utilities, investor-owned utilities, municipal utilities, and cooperatives that supply the majority of its electric needs. Notable examples include Arkansas Electric Cooperatives, Entergy, the North Arkansas Electric Cooperative, Reliant Energy-ARKLA, the Southwestern Energy Company, and SWEPCO. The state government regulates the rates and services of utilities through the Arkansas Public Service Commission (APSC). These utilities include electricity, natural gas, water, telephone, and pipeline safety services. The APSC provides a variety of other services, including consumer education and the determination of ad valorem assessments for property tax purposes. The APSC does not regulate all municipal utilities.
Arkansas has taken steps to reduce its ranking as one of the worst states in terms of energy efficiency, a ranking driven in large part from its energy-intensive industrial sector. The APSC requires utilities to promote energy efficiency. Public utilities have responded through initiatives such as consumer education, customer energy audits, and rebate programs for the use of energy-saving technologies. Utilities are not required to make investments in renewable energy a certain portion of their portfolio, as other states have done. Arkansas is also part of the Southeast Regional Carbon Sequestration Partnership, whose mission is to reduce emissions, as well as other local, regional, and national initiatives.
State Act 1494 called for the state development of an energy reduction plan for all existing state buildings, setting levels at a 20 percent reduction by 2014 and a 30 percent reduction by 2017. The Governor’s Executive Order 09-07 called for all executive branch agencies under the governor’s jurisdiction to submit strategic energy plans (SEPs) detailing how they would reduce the annual maintenance and operating budget in terms of energy consumption and promote agency operations and practices to reduce their environmental impact.
The Arkansas Energy Office received a $5 million grant through the American Recovery and Reinvestment Act (ARRA) of 2009’s Energy Efficiency Conservation Block Grant (EECBG) program to benefit small cities and counties, while larger cities and counties received direct EECBG funding from the U.S. Department of Energy. Cities receiving funds included Conway, Fayetteville, Fort Smith, Hot Springs, Jonesboro, Little Rock, North Little Rock, Pine Bluff, Rogers, and Springdale. Counties receiving funds included Benton, Crawford, Crittenden, Garland, Lonoke, Pope, Pulaski, Saline, Washington, and White Counties.
The state is also actively pursuing renewable energy resources as a means to reduce its dependence on costly and environmentally damaging fossil fuels. The Governor’s Office established a commission dedicated to renewable energy and the potential future impacts of global warming. Arkansas is one of the leading southern states in terms of renewable energy generation. Hydropower is the state’s leading renewable energy resource, accounting for approximately 9 percent of its electricity generation. Other renewables include geothermal power, wind power, solar power, and biomass.
The state significantly increased its solar power sector in less than a decade. It went from generating 5 GWh in 2014 to generating 1,200 GWh in 2023. However, by 2023 the state still produced no significant electricity using wind power.
The state has actively recruited renewable energy and green companies through tax incentives and other measures. Companies such as LM Wind Power have been attracted to the state in part through these measures. The government has also worked with private industry to seek energy solutions. Private associations such as the voluntary Arkansas Clean Cities Coalition have brought together government agencies, private companies, and nonprofit organizations in the effort to protect the state’s energy, economic, and environmental futures. Many activists feel that further legislative changes, such as zoning law changes, and public education campaigns are needed to increase renewable energy adoption.
Bibliography
"Arkansas." US Energy Information Administration, 18 July 2024, www.eia.gov/beta/states/states/ar/overview. Accessed 1 Aug. 2024.
Arkansas Renewable Energy Association. www.arkansasrenewableenergyassoc.org.
Institute for Energy Research. “Arkansas Economic and Energy Data.” www.instituteforenergyresearch.org/states/arkansas/.
Fitzpatrick, Alex, and Worth Sparkman. "Arkansas' Renewable Energy Generation Lags U.S. Overall." Axios, 11 Apr. 2024, www.axios.com/local/nw-arkansas/2024/04/11/arkansas-renewable-energy-generation. Accessed 1 Aug. 2024.
U.S. Department of Energy. “Recovery Act State Memos: Arkansas.” June 2010. energy.gov/sites/prod/files/edg/recovery/documents/Recovery‗Act‗Memo‗Arkansas.pdf.
"Wind Energy in Arkansas." US Office of Energy Efficiency and Renewable Energy Wind Energy Technologies Office, 2023, windexchange.energy.gov/states/ar. Accessed 1 Aug. 2024.