Florida's energy market is one of the busiest in the United States, driven by heavy tourism and high residential demand.
With an annual consumption of approximately 240 billion kWh, Florida is the third largest consumer of electricity in the country, just behind Texas and California.
The state has a generation capacity of around 58 GW, with 75% of this energy coming from natural gas, which reflects both the abundance of this resource and the state's infrastructure geared towards its use, according to the report released by the US Energy Information istration (EIA), in 2023.
Regulated structure and limitations of choice
In Florida, the energy market is heavily regulated, with production and distribution concentrated in a few large utilities, such as Florida Power & Light (FPL) and Duke Energy Florida. The Florida Public Service Commission (FPSC) oversees these companies and sets rates and of service, seeking to ensure stability and consumer protection.
However, this regulated model limits competitiveness and consumer choice, in contrast to open markets like Texas, where there is a greater variety of suppliers and contract types.
Amusement parks: large consumers and energy security
Florida's amusement parks, such as Walt Disney World Resort and Universal Studios, are not only tourism giants, but also major energy consumers, with demands comparable to those of small cities.
Walt Disney World, for example, consumes around 1 billion kWh per year, which is enough to power approximately 90 homes.
This high consumption requires parks to adopt strict energy security measures, including backup generators powered by natural gas and diesel, as well as battery storage systems.
These features ensure service continuity in the event of external power outages, especially during hurricane season.
In addition, these parks maintain priority contracts with local concessionaires, ensuring differentiated service to quickly restore supply in the event of power outages, minimizing the impact on services and visitor experience.
Solar energy and commitment to sustainability
Florida, also known as the “Sunshine State,” offers ideal conditions for generating solar energy. The parks have invested significantly in sustainable projects, most notably Disney’s Mickey Mouse-shaped solar plant, built in partnership with FPL in 2016.
This facility has a capacity of 5 megawatts, enough to serve approximately one thousand homes, serving as a symbol of innovation and commitment to sustainability.
In 2019, Disney opened a second 50-megawatt solar power plant, expanding solar generation capacity to meet up to 25% of Walt Disney World Resort's energy demand.
These projects reinforce the sustainability of park operations and contribute to the diversification of Florida's energy matrix, reducing dependence on conventional sources and carbon emissions.
Challenges and prospects for the future
Despite advances in solar energy and energy security initiatives, Florida still faces challenges. The state’s high reliance on natural gas makes it vulnerable to price fluctuations and market swings, and creates a significant reliance on fossil fuels.
Furthermore, the geographic location, which is subject to extreme weather events, requires a robust and well-planned energy infrastructure. Discussions about a possible opening of the energy market in Florida have been gaining ground, especially to offer more options to consumers and foster competitiveness.
However, such liberalization would require careful tailoring to balance security of supply with the potential benefits of more competitive pricing and increased innovation.
Conclusion
The energy market in Florida is in a transition phase, seeking to balance high demands with the need for security and sustainability.
Amusement parks like Walt Disney World are leading the way in adopting renewable energy sources and investing in energy security, as exemplified by the iconic Mickey-shaped solar plant.
These efforts are essential to make the state's energy matrix more resilient and sustainable, serving as a model for other regions and demonstrating the potential for innovation in the energy sector.
The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of the author. Canal Solar.
