Powering Progress: How Energy Startups Drive the U.S. Economy

In the summer of 2011, with the U.S. still struggling to shake off the Great Recession that had officially ended two years earlier, I set out on a unique roadtrip. Together with John Dearie, a veteran of the Federal Reserve Bank of New York, I met with more than 200 entrepreneurs in a dozen cities to answer one question: Why had the nation’s labor market remained stubbornly crippled despite unprecedented fiscal stimulus?

We discovered something startling. While policy makers in Washington were focused on large corporations and the small business community, almost all net job creation over the previous three decades had come from businesses less than a year old. Startups were the real engine of job growth. John and I shared these findings in our book Where the Jobs Are, which concluded job creation across the country had slowed because funding for new businesses had dried up; skilled talent was hard to find; outdated regulations were distracting entrepreneurs; and risk tolerance was low.

Fourteen years later, the situation is even more dire. Americans face a slower job market, burdened with high interest rates, persistent inflation, and a complex regulatory environment. All of which makes the role of startups even more crucial—not just for job creation but to help build new infrastructure the economy needs to grow.

In some ways, the ecosystem for innovation is more supportive than it was in 2010. Advances in the digital environment have fostered greater collaboration and faster piloting of ideas. Additionally, more creative and flexible approaches to work and lifestyle have lowered barriers to entrepreneurial risk-taking.

In other ways, though, innovation has become more challenging. Funding is tighter, and entrepreneurs often lack the resources and expertise to navigate regulatory complexities or scale their solutions. To succeed, they need sector-specific guidance. Meanwhile, the energy industry needs entrepreneurs. While utilities focus on providing reliable, affordable electricity, entrepreneurs can drive innovation, tackle niche challenges, and quickly adapt to changing market needs.

And change in the power sector is happening faster than at any time in a century. Demand is soaring thanks to the reindustrialization of the American economy and to datacenters that power artificial intelligence. While distributed energy resources like wind farms and home solar arrays can generate new supply, the intermittent nature of renewables raises issues with reliability and cost in the short term.

National Grid Partners, our company’s venture investment and innovation arm, provides capital and other crucial resources for startups from pre-seed through growth stage. Since launch in 2018, we’ve put more than $500 million to work in 51 companies and specialty funds. Our team offers market and product direction and helps evangelize new technologies across National Grid—and throughout the NextGrid Alliance, a network of more than 120 innovation-minded utility companies around the world.

The National Grid Partners portfolio includes innovators like LineVision, which develops sensors to optimize power flow on existing lines; and Transcend, a generative software application that speeds engineering designs for physical infrastructure, including electrical substations to connect new sources and consumers of electricity to the grid.

Another portfolio startup, Viridi, is advancing failsafe battery storage systems for backup power while also making an impact through its employment practices. Based in an underserved area of Buffalo, New York, the company actively hires, trains, and supports a local workforce—which brings us back to the critical role of job creation.

I can’t predict how many jobs energy-sector startups will produce in the next decade, but one thing is clear: Power connects to everything. The jobs created will extend beyond utilities, impacting industries such as construction, manufacturing, and transportation—and reaching across society. The future isn’t just about hiring engineers; it’s about building a multi-skilled workforce.

By collaborating in new and integrated ways, entrepreneurs and utilities can deliver not only abundant electricity, but also thriving growth and a job-creating economy.

Courtney Geduldig is Chief Corporate Affairs Officer of National Grid, one of the world's largest investor-owned energy utilities. She has more than 20 years’ experience in public policy, government, external affairs and public affairs. Prior to joining National Grid in February 2024, Courtney served as President of Camden Global Partners and held corporate roles at S&P Global, Chime and Micron Technology. She also served as Chief Financial Counsel to Senator Bob Corker (R-TN) and played a key role in advising him during and after the global financial crisis. Earlier in her career, Courtney held the Deputy Assistant Secretary position at the US Department of the Treasury. She holds a Juris Doctorate from the University of Baltimore School of Law and a Bachelor of Arts degree from the University of Maryland, College Park.