Rural Kentucky needs an integrated, innovative energy policy to get ahead | Opinion
Rural Kentucky stands at an economics crossroads. Balancing Kentucky’s energy portfolio and rural development can restore those communities and chart a new path forward. With the elections this November, now is an excellent time to ask the gubernatorial candidates to present their vision on energy, agriculture, and rural development policy which can aid development in rural Kentucky.
In my view, energy and agricultural integration is vital to Kentucky’s rural economy. Projections show rural populations are plummeting in several counties in southeastern Kentucky. By charting a policy path forward that spurs integration and innovation, diversified rural development, and adding value to local resources, would promote a sustainable economy. This plan should encompass traditional fossil fuels, renewables, biomass, and deployment of emerging technologies to produce sustainable power and fuel, along with new value-added products, such as hydrogen, rare earth elements, and graphene. We must accelerate our embrace of renewables, compromise on the use of fossil fuels, and target infrastructure investment on post-mining sites and industrial parks left vacant for decades.
Firstly, capitalizing on our abundant natural resources, the policy must reflect integrated use of fossil fuels, renewables, and biomass for energy production as an overarching objective. Fossil fuels should remain part of Kentucky’s energy mix but with a transition with cleaner extraction technologies, while investments in renewable energy projects such as solar, wind, and hydroelectric are coupled with fossil fuels to mitigate environmental impact. Further, the abundance of biomass, particularly municipal waste disposal, is a natural fit for rural Kentucky. Reform of waste regulations to spur energy innovation and to eliminate landfilling organic waste would be a critical point. This strategy works for farmers through a hybrid cooperative model that would repurpose thousands of fallow acres and marginal pastures. It would build generational wealth for farming families and create a sustainable market.
Secondly, managing our carbon footprint should be part of our rural strategy. Reforestation and agricultural sequestration methods for carbon offset trading should be promoted through a Kentucky carbon exchange, as well as deployment of technologies to repurpose atmospheric carbon as an input for manufacturing. Monetizing carbon would control the impact to industry and consumers, and ensure a robust integrated strategy is implemented.
Moreover, fostering investment in hydrogen, rare earth elements, and graphene production derived through innovation redevelopment of fossil fuels and biomass would offer opportunities not imagined even a decade ago. Supporting research and development and promoting public-private partnerships for technological advancements and the construction of hydrogen production facilities would lay the groundwork for an advanced materials and hydrogen economy in Kentucky.
With development, must come reform, starting with the public utility monopoly. We must end the power utility monopoly, which fails consumers and stymies innovation. Public utilities hold sway over rural economic development. Their monopoly harms rural Kentucky more than helps. Legislative reform should abolish this monopoly along with legislation to reform the Kentucky Public Service Commission, expanding it to a 14-member body, from the seven Supreme Court District regions, with direct election of its members.
Needed reform of centralized grid infrastructure to a decentralized grid comes at a critical time. The existential security threats from China and others makes it vital we rapidly strengthen Kentucky’s energy security and infrastructure resilience. This shift includes a comprehensive review of current energy infrastructure, investment in microgrids, and community renewable power development. Should such an attack come, decentralization of our vital energy infrastructure lessens the detrimental impact of such an attack.
Adoption of new policy must consider energy consumption and conservation. With utility rates skyrocketing in rural Kentucky, haphazardly enacting legislation that incentivizes energy consumption behemoths, such as cryptocurrency mining companies, to locate in rural communities is foolish without counting the impacts to those communities. Although a potential source of economic development, crypto mines consume massive amounts of electricity directly contributing to spiraling rates and grid instability. A suspension of incentives and an immediate moratorium on cryptocurrency mining operations is needed. Furthermore, increased incentives for energy efficiency retrofits and new construction would ensure economic development does not sacrifice energy affordability.
The future of Kentucky’s rural communities should be a primary focus for the gubernatorial candidates. Developing an integrated approach for energy and rural development in Kentucky can chart the way for a diversified economy that is sustainable, secure, resilient, and forward-thinking. With legislative support, private sector leadership, technological advancements, and community engagement, Kentucky can lead the way in a new era of energy, agriculture, and rural development.
An eighth-generation Kentuckian, Roger Ford resides in Pikeville and is the President of Eureka Energy Corporation. He holds an M.A. in National Security from American Military University, and is authoring a book on energy policy and energy security.