Florida's energy consumption

Summary: Florida meets the energy demands of its growing population through a mix of resources, including thermal, nuclear, and renewable energy.

Florida is a large and heavily populated state with a tropical climate and, as of 2024, was one of the largest energy-consuming states in the country; however, it is among the ten states with the lowest per capita energy consumption. It is widely believed that large oil and natural gas deposits lie off Florida’s Gulf Coast. In the twenty-first century, reconsiderations of the federal government’s long-standing moratorium on offshore drilling along Florida’s Gulf Coast (set to last until at least 2032) have reenergized the debate over this controversial potential energy resource. Florida has a mixture of private and public utilities regulated by the Florida Public Service Commission, the largest of which is Florida Power and Light. The state government has created various agencies and programs to encourage the research, development, and implementation of renewable energy technologies.

One of Florida’s potential future energy resources is also one of its most controversial. Estimates of potential oil resources off the Florida Gulf Coast range from 1.6 billion to more than 3 billion barrels. Large natural gas deposits are believed to exist in the same area. Proponents have sought to overturn a federal ban on offshore drilling along this area. The recovered oil and natural gas would be transported to shore via underground pipelines. Proponents note that the shallow 60- to 80-foot-deep waters off the coast support quick and easy accessibility. Other benefits cited include job creation and economic stimulation.

Critics note the expense, possible interference with the tourism industry, and environmental damage associated with offshore drilling and possible leaks. The debate accelerated in the early twenty-first century, when the Bush administration made plans to expand allowed offshore drilling ranges. The Obama administration temporarily halted and then reversed these plans in 2009, following the explosion of the BP oil rig Deepwater Horizon and the subsequent months-long oil spill off the Louisiana Gulf Coast. Though the administration of Donald Trump moved to open up access to many coastal areas for offshore drilling as part of a comprehensive proposal in early 2018, Florida's coast was removed shortly after as a possible drilling site following adamant opposition from Governor Rick Scott. President Joe Biden permitted very limited drilling in the area.

Modernization and population growth have driven Florida’s rising energy demands since the mid-twentieth century. Between the end of World War II and the beginning of the twenty-first century, Florida changed from one of the least-populated and least-developed states to the fourth most populous state; by 2014, it had become the third most populous. Florida has one of the highest total energy use rates in the country. The hot, humid, lengthy summers and high average annual temperatures drive the widespread use of air-conditioning for most of the year. Adaptation to the hot climate also results in high heat usage during annual winter cold spells. Tourism, one of the state’s leading industries, places additional demand on the state’s energy resources.

Though most of Florida’s electric power plants once utilized petroleum as an energy source, by 2022, plants using petroleum accounted for less than one-tenth of the state's capacity for electricity generation; by that point, natural gas was used to fuel over two-thirds of electricity generation. Florida also has three operational nuclear power plants run by Florida Power and Light. Florida’s energy infrastructure is vulnerable to damage from the tropical storms and hurricanes that annually threaten this peninsula, which is almost surrounded by ocean, with the Atlantic Ocean off the east coast and the Gulf of Mexico off the west coast. The Atlantic hurricane season runs from June through November. When storms strike, widespread electric power outages are common. Devastating hurricanes such as 1993’s Hurricane Andrew, 2017's Hurricane Irma, 2022's Hurricane Ian, and 2023's Hurricane Idalia often require the assistance of outside utilities across the nation to restore power.

Florida’s leading investor-owned electric utilities include the Florida Power and Light Company (FPL), the Florida Public Utilities Company (FPU), the Gulf Power Company (GPC), Duke Energy Florida, and the Tampa Electric Company (TEC). Florida’s largest electric utility is Florida Power and Light, with approximately 5.7 million customer accounts as of 2024 and with a service region and infrastructure covering the southern half of the state. FPL is one of the state’s largest employers and one of the country’s largest rate-regulated utilities. FPL is a subsidiary of NextEra Energy, Inc., headquartered in Juno Beach. FPL operates more than 74,000 miles of power lines.

The state government has been actively involved in the development of energy policies and programs designed to meet growth in energy demand while ensuring energy security and environmental and economic sustainability. State agencies and organizations involved in the development of state energy and associated environmental policies and programs have included the Florida Energy and Climate Commission (created in 2008 but abolished in 2011), the Florida Public Service Commission, the Florida Department of Environmental Protection, the Florida Department of Community Affairs (abolished in 2011), and the Florida Energy Systems Consortium. Notable state legislative initiatives include the 2006 Florida Renewable Energy Technologies and Energy Efficiency Act and the Energy and Climate Change Action Plan.

The Florida Public Service Commission (FPSC) oversees the state’s electric, natural gas, telephone, water, and wastewater services. Part of its authority includes the regulation of electric and natural gas utility rates. The FPSC is also designed to ensure a competitive marketplace that delivers safe and reliable essential services to state residents. The Florida Energy and Climate Commission (FECC) was the lead organization coordinating the state’s energy and climate change policies and programs, annually assessing Florida’s progress under its Energy and Climate Change Action Plan, and advising the governor and state legislature.

Florida’s state government offered a variety of incentives for the development and installation of renewable energy technologies in the first decade of the twenty-first century. The programs have also encouraged capital investment in such technologies. Technologies include hydrogen, biomass, solar, geothermal, wind, ocean, waste, heat, and hydroelectric power. The 2006 Renewable Energy Technologies Grants Program provided matching grants for research, development, demonstration, and commercialization of such technologies. The program was expanded in 2008. Various tax incentive programs include sales tax exemptions, corporate income tax credits, production tax credits, and infrastructure investment tax credits.

The 2006 Solar Energy Systems Incentive Program offered rebates for the residential or commercial installation of solar energy systems over a four-year period. In 2017, Governor Scott passed a bill allowing tax exemptions to include the installation of renewable energy devices such as solar panels on certain buildings. Another popular program offered rebates for the residential installation of energy-efficient air-conditioning systems, resulting in controversy when consumer demand exceeded funding. Beneficiaries of the various programs include state agencies, municipal and county governments, private corporations, colleges and universities, utilities, nonprofit organizations, and state residents.

The state’s utilities have also promoted energy efficiency and clean and renewable energy technologies. Utility-based green initiatives include energy efficiency programs, renewable energy technology investments, energy conservation rebates and other commercial incentives, free residential energy usage profiles and makeovers, student and community education, and support for community-based and charitable programs. FPL maintains one of the nation’s lowest emissions profiles and best energy efficiency programs. As of 2022, the company operated fifty solar power energy centers.

The state legislature partnered with the Florida Energy Committee in 1974 to create the Florida Solar Energy Center (FSEC), providing the first state-supported energy organization in Florida. The FSEC researches, tests, and certifies solar systems and provides educational programming. The Florida Institute for Sustainable Energy (FISE) is based at the University of Florida in Gainesville. FISE follows a systems-based approach to the development of sustainable energy generation, distribution, and usage. FISE research activities involve several faculty members and feature the FISE Energy Technology Incubator, with a prototype development and demonstration laboratory and a biofuel pilot plant. FISE also provides public educational programming. The FESC researches and develops critical energy issues and technologies, trains students, and analyzes energy systems.

Bibliography

"About Us: Florida Institute for Sustainable Energy." Florida Institute for Sustainable Energy, aldev.co/dev/Energy/index.php?src=about‗us. Accessed 2 Aug. 2024.

"Florida: State Profile and Energy Estimates; Profile Analysis." US Energy Information Administration, 15 Feb. 2024, www.eia.gov/state/analysis.php?sid=FL. Accessed 2 Aug. 2024.

"Florida Energy Facts." Florida Energy Systems Consortium, floridaenergy.ufl.edu/florida-energy-facts/. Accessed 2 Aug. 2024.

Friedman, Lisa. "Biden Administration Offers Fewest Offshore Oil and Gas Leases in History." The New York Times, 29 Sept. 2023, www.nytimes.com/2023/09/29/climate/biden-offshore-drilling-plan.html. Accessed 2 Aug. 2024.

Tabuchi, Hiroko. "Trump Administration Drops Florida from Offshore Drilling Plan." The New York Times, 9 Jan. 2018, www.nytimes.com/2018/01/09/climate/trump-florida-offshore-drilling.html. Accessed 2 Aug. 2024.