Electricity News in October 2018
Hurricane Michael by the numbers: 32 dead, 1.6 million homes, businesses without power
Hurricane Michael Statistics track catastrophic wind speed, storm surge, rainfall totals, power outages, evacuations, and fatalities across Florida and the Southeast, detailing Category 4 intensity, Saffir-Simpson scale impacts, and emergency response resources.
Key Points
Hurricane Michael statistics detail wind speed, storm surge, rainfall, outages, and deaths from Category 4 landfall.
✅ 155 mph landfall winds; 14 ft storm surge; 12 in rainfall max
✅ 1.6M without power; 30,000 restoring crews; 6 states emergency
✅ 325k ordered evacuations; 32 deaths; FEMA and Guard deployed
Hurricane Michael, a historic Category 4 storm, struck the Florida Panhandle early Wednesday afternoon, unleashing heavy rain, high winds and a devastating storm surge.
Here is a look at the dangerous storm by the numbers:
155 mph: Wind speed -- nearly the highest possible for a Category 4 hurricane -- with which Michael made landfall near Mexico Beach and Panama City. A hurricane with 157 mph or higher is a Category 5, the strongest on the Saffir-Simpson hurricane wind scale.
129 mph: Peak wind gust reported Wednesday at Tyndall Air Force Base, which is about 12 miles southeast of Panama City, Florida.
32: Number of storm-related deaths attributed to Michael thus far, including an 11-year-old girl who local officials say was killed when part of a metal carport crashed into her family's mobile home in Lake Seminole, Georgia, and a 38-year-old man who was killed when a tree fell onto his moving car in Statesville, North Carolina.
Waves take over a house as Hurricane Michael comes ashore in Alligator Point, Fla., Oct. 10, 2018.
14 feet: Maximum height forecast for the storm surge when Michael's strong winds pushed the ocean water onto land. A storm surge just over 9 feet was reported Wednesday in Apalachicola, Florida.
12 inches: Isolated maximum amount of rain that Michael was expected to dump across the Florida Panhandle and the state's Big Bend region, as well as in southeast Alabama and parts of southwest and central Georgia.
9 inches: Maximum amount of rain that Michael could bring to isolated areas from Virginia to North Carolina.
1.6 million: Number of homes and businesses without power in Florida, Alabama, Georgia, South Carolina, North Carolina and Virginia as of Friday morning, a reminder that extended outages can persist after major disasters.
30,000: Number of workers mobilized from across the country to help restore power, underscoring the risks of field repairs such as line crew injuries during recovery.
6: Number of states that had emergency declarations in anticipation of Michael: Florida, Alabama, Georgia, South Carolina, North Carolina and Virginia.
325,000: Estimated number of people in the storm's path who were told to evacuate by local authorities.
6,000: Approximate number of people who stayed in the roughly 80 shelters across Florida, Alabama, Georgia, South Carolina and North Carolina on Wednesday night, while those sheltering at home were urged to avoid overheated power strips that can spark fires.
3,000: Number of personnel the Federal Emergency Management Agency deployed ahead of landfall, while utilities prepared on-site staffing plans to maintain operations during widespread disruptions.
35: Number of counties in Florida, of the state's 67, where Gov. Rick Scott declared a state of emergency prior to landfall, and grid reliability warnings often underscore systemic risks during national emergencies.
3,500: Number of Florida National Guard troops activated for pre-landfall coordination and planning, with an emphasis on high water and search-and-rescue operations.
600: Number of Florida state troopers assigned to the Panhandle and Big Bend region to assist with response and recovery efforts, including public reminders about downed line safety in affected communities.
500: Number of disaster relief workers that the American Red Cross was sending to affected areas in the Sunshine State.
200: Approximate number of patients being evacuated from at least two hospitals in Florida due to damage from the hurricane, highlighting how critical facilities depend on staff who have raised workforce safety concerns during other crises. Bay Medical Center Sacred Heart in Panama City said in a statement Thursday that its facility was damaged during the storm and thus is transferring more than 200 patients, including 39 who are critically ill, to regional hospitals. Gulf Coast Regional Medical Center, also in Panama City, announced in a statement Thursday that it's evacuating its roughly approximately patients, starting with the most critically ill, "because of the infrastructure challenges in our community."
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Crews have restored power to more than 32,000 Gulf Power customers
Gulf Power Hurricane Michael Response details rapid power restoration, grid rebuilding, and linemen support across the Florida Panhandle, Panama City, and coastal areas after catastrophic winds, rain, and storm surge damaged transmission lines and substations.
Key Points
Gulf Power's effort to restore electricity after Hurricane Michael, including grid rebuilding and storm recovery.
✅ 3,000+ crews deployed for restoration and rebuilding
✅ Transmission, distribution, and substations severely damaged
✅ Panhandle customers warned of multi-week outages
Less than 24 hours ago, Hurricane Micheal devastated the residents in the Florida Panhandle with its heavy winds, rainfall and storm surge, as reflected in impact numbers across the region.
Gulf Power crews worked quickly through the night to restore power to their customers.
Linemen crews were dispatched from numerous of cities all over the U. S., reflecting FPL's massive Irma response to help those impacted by Hurricane Michael.
According to Jeff Rogers, Gulf Power spokesperson; “This was an unprecedented storm, and our customers will see an unprecedented response from Gulf Power. The destruction we’ve seen so far to this community and our electrical system is devastating — we’re seeing damage across our system, including distribution lines, transmission lines and substations.”
Gulf Power told Channel 3 said they dealt with issues like trees and heavy debris blocking roads from strong winds, and communications down can slow down the rebuilding and restoration process, but Gulf Power said they are prepared for this type of storm devastation.
According to Gulf Power, Hurricane Micheal caused so much damage to Panama City's electrical grid that crews not only had repair the lines, they had to rebuild the electrical system, a scenario similar to a complete rebuild seen after Hurricane Laura in Louisiana.
Gulf Power officials say, "Less than 24 hours after the storm, more than 3,000 storm personnel from around the country arrived in the Panama City area Thursday to begin the restoration and rebuilding process. So far, more than 4,000 customers have been restored on Panama City Beach. Power has been restored to all customers in Escambia, Santa Rosa and Okaloosa counties, and it’s expected that customers in Walton County will be restored tonight. But customers in the hardest hit areas should prepare to be without power for weeks, not days in some areas. Initial evaluations by Gulf Power indicate widespread, heavy damage to the electrical system in the Panama City area."
According to Gulf Power, crews have restored power to more than 32,000 Gulf Power customers in the wake of Hurricane Michael, but the work is just beginning for power restoration in the Panama City area.
Rogers said, “We’re heartbroken for our customers and our teammates who live in and near the Panama City area,” said Rogers. “This is the type of storm that changes lives — so aside from restoring power to our customers quickly and safely, our focus in the coming days and weeks will also be to help restore hope to these communities and help give them a sense of normalcy as soon as possible.”
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Hydro One stock has too much political risk to recommend, Industrial Alliance says
Hydro One Avista merger faces regulatory scrutiny in Washington, Oregon, and Idaho, as political risk outweighs defensive utilities fundamentals like stable cash flow, rate base growth, EPS outlook, and a near 5% dividend yield.
Key Points
A planned Hydro One-Avista acquisition awaiting key state approvals amid elevated political and regulatory risk.
✅ Hold rating, $24 price target, 28.1% implied return
✅ EPS forecast: $1.27 in 2018; $1.38 in 2019
✅ Defensive utility: stable cash flow, 4-6% rate base growth
A seemingly positive development for Hydro One is overshadowed by ongoing political and regulatory risk, as seen after the CEO and board ouster, Industrial Alliance Securities analyst Jeremy Rosenfield says.
On October 4, staff from the Washington Utilities and Transportation Commission filed updated testimony in support of the merger of Hydro One and natural gas distributor Avista, which had previously received U.S. antitrust clearance from federal authorities.
The merger, which was announced in July of 2017 has received the green light from federal and key states, with Washington, Oregon and Idaho being exceptions, though the companies would later seek reconsideration from U.S. regulators in the process.
But Rosenfield says even though decisions from Oregon and Idaho are expected by December, there are still too many unknowns about Hydro One to recommend investors jump into the stock.
Hydro One stock defensive but risky
“We continue to view Hydro One as a fundamentally defensive investment, underpinned by (1) stable earnings and cash flows from its regulated utility businesses (2) healthy organic rate base and earning growth (4-6%/year through 2022) and (3) an attractive dividend (~5% yield, 70-80% target payout),” the analyst says. “In the meantime, and ahead of key regulatory approvals in the AVA transaction, we continue to see heightened political/regulatory risk as an overhand on the stock, outweighing Hydro One’s fundamentals in the near term.”
In a research update to clients today, Rosenfield maintained his “Hold” rating and one year price target of $24.00 on Hydro One, implying a return of 28.1 per cent at the time of publication.
Rosenfield thinks Hydro One will generate EPS of $1.27 per share in fiscal 2018, even though its Q2 profit plunged 23% as electricity revenue fell. He expects that number will improve to EPS of $1.38 a share the following year.
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Opponent of Site C dam sharing concerns with northerners
Site C Dam Controversy highlights Peace River risks, BC Hydro claims, Indigenous rights under Treaty 8, environmental assessment findings, and potential impacts to agriculture and the Peace-Athabasca Delta across Alberta and the Northwest Territories.
Key Points
Debate over BC Hydro's Site C dam: clean energy vs Indigenous rights, Peace-Athabasca Delta impacts, and agriculture.
✅ Potential drying of Peace-Athabasca Delta and wildlife habitat
✅ Treaty 8 rights and First Nations legal challenges
✅ Loss of prime Peace Valley farmland; alternatives in renewables
One of the leading opponents of the Site C dam in northeastern B.C. is sharing her concerns with northerners this week.
Proponents of the Site C dam say it will be a cost-effective source of clean electricity, even as a major Alberta wind farm was scrapped elsewhere in Canada, and that it will be able to produce enough energy to power the equivalent of 450,000 homes per year in B.C. But a number of Indigenous groups and environmentalists are against the project.
Wendy Holm is an economist and agronomist who did an environmental assessment of the dam focusing on its potential impacts on agriculture.
On Tuesday she spoke at a town hall presentation in Fort Smith, N.W.T., organized by the Slave River Coalition. She is also speaking at an event in Yellowknife on Friday, as small modular reactors in Yukon receive study as a potential long-term option.
Worried about downstream impacts, Northern leaders urge action on Site C dam
"I learned that people outside of British Columbia are as concerned with this dam as we are," Holm said.
"There's just a lot of concern with what's happening on the Peace River and this dam and the implications for Alberta, where hydro's share has diminished in recent decades, and the Northwest Territories."
If completed, BC Hydro's Site C energy project will be the third dam on the Peace River in northeast B.C. and the largest public works project in B.C. history. The $10.7-billion project was approved by both the provincial and federal governments as B.C. moves to streamline clean energy permitting for future projects.
Amy Lusk, co-ordinator of the Slave River Coalition, said many issues were discussed at the town hall, but she also left with a sense of hope.
"I think sometimes in our little corner of the world, we are up against so much when it comes to industrial development and threats to our water," she said.
"To kind of take away that message of, this is not a done deal, and that we do have a few options in place to try and stop this and not to lose hope, I think was a very important message for the community."
Drying of the Peace-Athabasca Delta
Holm said her main concern for the Northwest Territories is how it could affect the Peace-Athabasca Delta. She said the two dams already on the river are responsible for two-thirds of the drying that's happening in the delta.
"These are very real issues and very present in the minds of northerners who want to stay connected to a traditional lifestyle, want to have access to those wild foods," she said.
Lusk said northerners are fed up with defending waters "time after time after time."
BC Hydro, however, said studies commissioned during the environmental assessment of Site C show the project will have no measurable effect on the delta, which is located 1,100 kilometres away.
Holm said the fight against the Site C dam is also important when it comes to First Nations treaty rights.
The West Moberly and Prophet River First Nations applied for an injunction to halt construction on Site C, as well as a treaty infringement lawsuit against the B.C. government. They argue the dam would cause irreparable harm to their territories and way of life, which are rights protected under Treaty 8.
Agricultural land
While the project is located in B.C., Holm said its impacts on prime horticulture land would also affect northerners, something that's important given issues of food security and nutrition.
"This is some of the best agriculture land in all of Canada," she said of the Peace Valley.
According to BC Hydro, around 2.6 million hectares of land in the Peace agricultural region would remain available for agricultural production while 3,800 hectares would be unavailable. It has also proposed a number of mitigation efforts, including a $20-million agricultural compensation fund.
Holm said renewable energy, including tidal energy for remote communities, will be cheaper and less destructive than the dam, and there's a connection between the dams on the Peace River and water sharing with the U.S.
"When you run out of water there's nothing else you can use. You can't use orange juice to irrigate your fields or to run your industries or to power your homes," she said.
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Utilities commission changes community choice exit fees; what happens now in San Diego?
CPUC Exit Fee Increase for CCAs adjusts the PCIA, affecting utilities, San Diego ratepayers, renewable energy procurement, customer equity, and cost allocation, while providing regulatory certainty for Community Choice Aggregation programs and clean energy goals.
Key Points
A CPUC-approved change raising PCIA exit fees paid by CCAs to utilities, balancing cost shifts and customer equity.
✅ PCIA rises from about 2.5c to roughly 4.25c per kWh in San Diego
✅ Aims to reduce cost shifts and protect non-CCA customers
✅ Offers regulatory certainty for CCA launches and clean energy goals
The California Public Utilities Commission approved an increase on the exit fees charged to customers who take part in Community Choice Aggregation -- government-run alternatives to traditional utilities like San Diego Gas & Electric.
After reviewing two competing exit fee proposals, all five commissioners voted Thursday in favor of an adjustment that many CCA advocates predicted could hamper the growth of the community choice movement.
But minutes after the vote was announced, one of the leading voices in favor of the city San Diego establishing its own CCA said the decision was good news because it provides some regulatory certainty.
"For us in San Diego, it's a green light to move forward with community choice," said Nicole Capretz, executive director of the Climate Action Campaign. "For us, it's let's go, let's launch and let's give families a choice. We no longer have to wait."
Under the CCA model, utilities still maintain transmission and distribution lines (poles and wires, etc.) and handle customer billing. But officials in a given local government entity make the final decisions about what kind of power sources are purchased.
Once a CCA is formed, its customers must pay an exit fee -- called a Power Charge Indifference Adjustment -- to the legacy utility serving that particular region. The fee is included in customers' monthly bills.
The fee is required to offset the costs of the investments utilities made over the years for things like natural gas power plants, renewable energy facilities and other infrastructure.
Utilities argue if the exit fee is set too low, it does not fairly compensate them for their investments; if it's too high, CCAs complain it reduces the financial incentive for their potential customers.
The Public Utilities Commission chose to adopt a proposal that some said was more favorable to utilities, leading to complaints from CCA boosters.
"We see this will really throw sand in the gears in our ability to do things that can move us toward (climate change) goals," Jim Parks, staff member of Valley Clean Energy, a CCA based in Davis, said before the vote.
Commissioner Carla Peterman, who authored the proposal that passed, said she supports CCAs but stressed the commission has a "legal obligation" to make sure increased costs are not shouldered by "customers who do not, or cannot, join a CCA. Today's proposal ensures a more level playing field between customers."
As for what the vote means for the exit fee in San Diego, Peterman's office earlier in the week estimated the charge would rise from 2.5 cents a kilowatt-hour to about 4.25 cents.
The Clear the Air Coaltion, a San Diego County group critical of CCAs, said the newly established exit fee -- which goes into effect starting next year -- is "a step in the direction."
But the group, which includes the San Diego Regional Chamber of Commerce, the San Diego County Taxpayers Association and lobbyists for Sempra Energy (the parent company of SDG&E), repeated concerns it has brought up before.
"If the city of San Diego decides to get into the energy business this decision means ratepayers in National City, Chula Vista, Carlsbad, Imperial Beach, La Mesa, El Cajon and all other neighboring communities would see higher energy bills, and San Diego taxpayers would be faced with mounting debt," coalition spokesman Tony Manolatos said in an email.
CCA supporters say community choice is critical in ensuring San Diego meets the pledge made by Mayor Kevin Faulconer to adopt the city's Climate Action Plan, mandating 100 percent of the city's electricity needs must come from renewable sources by 2035.
Now attention turns to Faulconer, who promised to make a decision on bringing a CCA proposal to the San Diego City Council only after the utilities commission made its decision.
A Faulconer spokesman said Thursday afternoon that the vote "provides the clarity we've been waiting for to move forward" but did not offer a specific time table.
"We're on schedule to reach Mayor Faulconer's goal of choosing a pathway that achieves our renewable energy goals while also protecting ratepayers, and the mayor looks forward to making his recommendation in the next few weeks," said Craig Gustafson, a Faulconer spokesman, in an email.
A feasibility study released last year predicted a CCA in San Diego has the potential to deliver cheaper rates over time than SDG&E's current service, while providing as much as 50 percent renewable energy by 2023 and 80 percent by 2027.
"The city has already figured out we are still capable of launching a program, having competitive, affordable rates and finally offering families a choice as to who their energy provider is," said Capretz, who helped draft an initial blueprint of the climate plan as a city staffer.
SDG&E has come to the city with a counterproposal that offers 100 percent renewables by 2035.
Thus far, the utility has produced a rough outline for a "tariff" program that would charge ratepayers the cost of delivering more clean sources of energy over time.
Some council members have expressed frustration more specifics have not been sketched out.
SDG&E officials said they will take the new exit fee into account as they go forward with their counterproposal to the city council.
Speaking in general about the utility commission's decision, SDG&E spokeswoman Helen Gao called it "a victory for our customers, as it minimizes the cost shifts that they have been burdened with under the existing fee formula.
"As commissioners noted in rendering their decision, reforming the (exit fee) addresses a customer-to-customer equity issue and has nothing to do with increasing profits for investor-owned utilities," Gao said in an email.
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Electric Utilities Plot Bullish Course for EV Charging Infrastructure
EV Charging Infrastructure Incentives are expanding as utilities fund public chargers, Level 2 networks, DC fast charging, grid-managed off-peak programs, and equitable access across Ohio, New Jersey, and Florida to accelerate clean transportation.
Key Points
Utility-backed programs funding Level 2 and DC fast chargers, managing grid demand, and expanding EV equity.
✅ Incentives for Level 2 and DC fast public charging stations.
✅ Grid-friendly off-peak charging to balance demand.
✅ Equity targets place chargers in low-income communities.
Electric providers in Florida, Ohio and New Jersey recently announced plans to expand electric vehicle charging networks and infrastructure through various incentive programs that could add thousands of new public chargers in the next several years.
Elsewhere, utilities are advancing similar efforts, with Michigan EV programs proposing more than $20 million for charging infrastructure to accelerate adoption.
American Electric Power in Ohio will offer nearly $10 million in incentives toward the build out of 375 EV charging stations throughout the company's service territory, which largely includes Columbus.
Meanwhile, the Public Service Electric and Gas Company (PSE&G), an electric utility provider in New Jersey, has proposed a six-year plan to support the development of nearly 40,000 electric vehicle chargers across a wide range of customers and sectors, said Francis Sullivan, a spokesperson for PSE&G.
And Duke Energy in Florida is installing up to 530 EV charging stations across its service area, as part of its Park and Plug pilot program, which will be making the charging ports available in multifamily housing complexes, workplaces and other high traffic areas.
"We are bringing cleaner energy to Florida through 700 megawatts of new universal solar, and we are helping our customers to bring clean transportation to the state as well," Catherine Stempien, Duke Energy Florida president, said in a statement. "We are committed to providing smarter, cleaner energy alternatives for all our customers."
The project in Ohio is making incentive funding available to government organizations, multifamily housing developments and workplaces, covering from 50 percent to all of the costs. The plan, to be rolled out in the next four years, aims to incentivize the development of 300 level-two chargers and 75 "fast chargers" capable of charging a car's battery in minutes rather than hours.
"I think what's interesting about what we're seeing now in the industry is that electric vehicles and electric vehicle charging are expanding beyond California, and like other Pacific Coast states," said Scott Fisher, vice president of marketing at Greenlots, maker of car chargers and software. Greenlots has been selected as one of the companies to provide the chargers for the AEP project.
California has occupied the lion's share of the electric vehicle market, making up about 5 percent of the cars on the state's highways. The U.S. market sits at about 1.5 percent. However, indications show the EV boom may be set to take off as more models are being rolled out, and prices are making the electric cars more competitive with their gas-powered counterparts. The group Securing America's Future Energy (SAFE) announced the one-millionth electric vehicle is on course to be sold in the United States this month.
In a statement, Ben Prochazka, vice president of the Electrification Coalition, an EV advocacy group, called this "a major milestone and brings us one step closer to reducing our transportation system's dependence on oil. This is a direct result of the tireless efforts by communities and advocates throughout the 'EV ecosystem.'"
In New Jersey, PSE&G's efforts -- which are part of the company's proposed Clean Energy Future program -- will not only focus on building out the charging infrastructure, but structure car recharging to control charging and encourage residents to charge their cars during off-peak times.
"For now, with a modest number of charging stations in the market, it's not a huge problem. But over time, as you're putting in many thousands of these stations, what you want to make sure is that those stations are operating in sync with state power grids, where you don't have people all charging at the same time at like 5 p.m. on a hot summer day," said Fisher.
PSE&G also plans to offer incentives to encourage the development of level-two chargers and DC fast-chargers, as well as "provide grants and incentives for 100 electric school buses and EV charging infrastructure at school districts in PSE&G's service territory," said Sullivan.
"PSE&G will also help fund electrification projects at customer locations such as ports, airports and transit facilities," Sullivan added, via email.
Utilities and transportation planners are also keeping the concept of equity in mind -- to ensure EVs are adopted by more than just the Tesla owner -- and will also focus on placing infrastructure in low-income areas.
"Ten percent of the stations will be in low income areas, defined by census blocks," said Scott Blake, a communications consultant at AEP in Columbus.
Duke Energy also announced 10 percent of the chargers it is installing in Florida will be in "income-qualified communities," according to a company press release.
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Is The Global Energy Transition On Track?
Global Decarbonization Strategies align renewable energy, electrification, clean air policies, IMO sulfur cap, LNG fuels, and the EU 2050 roadmap to cut carbon intensity and meet Paris Agreement targets via EVs and efficiency.
Key Points
Frameworks that cut emissions via renewables, EVs, efficiency, cleaner marine fuels, and EU policy roadmaps.
✅ Renewables scale as wind and solar outcompete new coal and gas.
✅ Electrification of transport grows as EV costs fall and charging expands.
✅ IMO 2020 sulfur cap and LNG shift cut shipping emissions and particulates.
Are we doing enough to save the planet? Silly question. The latest prognosis from the United Nations’ Intergovernmental Panel on Climate Change made for gloomy reading. Fundamental to the Paris Agreement is the target of keeping global average temperatures from rising beyond 2°C. The UN argues that radical measures are needed, and investment incentives for clean electricity are seen as critical by many leaders to accelerate progress to meet that target.
Renewable power and electrification of transport are the pillars of decarbonization. It’s well underway in renewables - the collapse in costs make wind and solar generation competitive with new build coal and gas.
Renewables’ share of the global power market will triple by 2040 from its current level of 6% according to our forecasts.
The consumption side is slower, awaiting technological breakthrough and informed by efforts in countries such as New Zealand’s electricity transition to replace fossil fuels with electricity. The lower battery costs needed for electric vehicles (EVs) to compete head on and displace internal combustion engine (ICE) cars are some years away. These forces only start to have a significant impact on global carbon intensity in the 2030s. Our forecasts fall well short of the 2°C target, as does the IEA’s base case scenario.
Yet we can’t just wait for new technology to come to the rescue. There are encouraging signs that society sees the need to deal with a deteriorating environment. Three areas of focus came out in discussion during Wood Mackenzie’s London Energy Forum - unrelated, different in scope and scale, each pointing the way forward.
First, clean air in cities. China has shown how to clean up a local environment quickly. The government reacted to poor air quality in Beijing and other major cities by closing older coal power plants and forcing energy intensive industry and the residential sector to shift away from coal. The country’s return on investment will include a substantial future health care dividend.
European cities are introducing restrictions on diesel cars to improve air quality. London’s 2017 “toxicity charge” is a precursor of an Ultra-Low Emission Zone in 2019, and aligns with UK net-zero policy changes that affect transport planning, to be extended across much of the city by 2020. Paris wants to ban diesel cars from the city centre by 2025 and ICE vehicles by 2030. Barcelona, Madrid, Hamburg and Stuttgart are hatching similar plans.
College Promise In California: Community-Wide Efforts To Support Student Success
Second, desulphurisation of global shipping. High sulphur fuel oil (HSFO) meets around 3.5 million barrels per day (b/d) of the total marine market of 5 million b/d. A maximum of 3.5% sulphur content is allowed currently. The International Maritime Organisation (IMO) implements a 0.5% limit on all shipping in 2020, dramatically reducing the release of sulphur oxides into the atmosphere.
Some ships will switch to very low sulphur fuel oil, of which only around 1.4 million b/d will be available in 2020. Others will have to choose between investing in scrubbers or buying premium-priced low sulphur marine gas oil.
Longer-term, lower carbon-intensity gas is a winner as liquefied natural gas becomes fuel of choice for many newbuilds. Marine LNG demand climbs from near zero to 50 million tonnes per annum (tpa) by 2040 on our forecasts, behind only China, India and Japan as a demand centre. LNG will displace over 1 million b/d of oil demand in shipping by 2040.
Third, Europe’s radical decarbonisation plans. Already in the vanguard of emissions reductions policy, the European Commission is proposing to reduce carbon emissions for new cars and vans by 30% by 2030 versus 2020. The targets come with incentives for car manufacturers linked to the uptake of EVs.
The 2050 roadmap, presently at the concept stage, envisages a far more demanding regime, with EU electricity plans for 2050 implying a much larger power system. The mooted 80% reduction in emissions compared with 1990 will embrace all sectors. Power and transport are already moving in this direction, but the legacy fuel mix in many other sectors will be disrupted, too.
Near zero-energy buildings and homes might be possible with energy efficiency improvements, renewables and heat pumps. Electrification, recycling and bioenergy could reduce fossil fuel use in energy intensive sectors like steel and aluminium, and Europe’s oil majors going electric illustrates how incumbents are adapting. Some sectors will cite the risk decarbonisation poses to Europe’s global competitiveness. If change is to come, industry will need to build new partnerships with society to meet these targets.
The 2050 roadmap signals the ambition and will be game changing for Europe if it is adopted. It would provide a template for a global roll out that would go a long way toward meeting UN’s concerns.
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Electricity distributors warn excess solar power in network could cause blackouts, damage infrastructure
Australian Rooftop Solar Grid Constraints are driving debates over voltage rise, export limits, inverter curtailment, DER integration, and network reliability, amid concerns about localized blackouts, infrastructure protection, tariff reform, and battery storage adoption.
Key Points
Limits on solar exports to curb voltage rise, protect equipment, and keep the distribution grid reliable.
✅ Voltage rise triggers transformer protection and local outages.
✅ Export limits and smart inverter curtailment manage midday backfeed.
✅ Tariff reform and DER orchestration defer costly network upgrades.
With almost 1.8 million Australian homes and businesses relying on power from rooftop solar panels, there is a fight brewing over the impact of solar energy on the national electricity grid.
Electricity distributors are warning that as solar uptake continues to increase, there is a risk excess solar power could flow into the network, elevating power outage risks, causing blackouts and damaging infrastructure.
But is it the network businesses that are actually at risk, as customers turn away from centrally produced electricity?
This is what three different parties have to say:
Andrew Dillon of the network industry peak body, Energy Networks Australia (ENA), told 7.30 the way customers are charged for electricity has to change, or expensive grid upgrades to poles and wires will be needed to keep solar customers on the grid.
"The engineering reality is once we get too much solar in a certain space it does start to cause technical issues," he said.
"If there is too much energy coming back up the system in the middle of the day, it can cause frequency voltage disturbances in the system, which can lead to transformers tripping off to protect themselves from being damaged and that will cause localised blackouts.
"There are pockets of the grid already where we have significant penetration and we are starting to see technical issues."
However, he acknowledges that excess solar power has yet to cause any blackouts, or damage electricity infrastructure.
"I don't buy that at all," he said.
"It can be that in some suburbs or parts of suburbs a high penetration of solar on the point of use can raise voltage, these issues generally can be dealt with quickly.
"The critical issue is think where you are getting that perspective from. It is from an industry whose underlying market is threatened by customers doing it for themselves through peer-to-peer energy models. So, think with some critical insight to these claims."
He said when too many people rely on solar it threatens the very business model of the companies that own Australia's poles and wires.
"When the customers use the network less to buy centrally produced electricity, they ship less product," he said.
"When they ship less product, their underlying business is undermined, they need to charge more to the customers left and that leads to what has been called a death spiral.
"We are seeing rapid reductions in consumption at the point of use per household."
But Mr Dillon denies the distributors are acting out of self-interest.
"I absolutely reject that claim," he said.
"[What] we, as networks, have an interest in is running a safe network, running a reliable network, enabling the transition to a low carbon future and doing all that while keeping costs down as much as possible."
Solar installers say the networks are holding back business
Around Australia the poles and wires companies can decide which solar systems can connect to the grid.
Small systems can connect automatically, but in some areas, those wanting a larger system can find themselves caught up in red tape.
The vice-president of the Australian Solar Council, Glen Morris, said these limitations were holding back solar installation businesses and preventing the take-up of new battery storage technology.
"If you've already got a five kilowatt system, your house is full as far as the network is concerned," Mr Morris said.
"You go to add a battery, that's another five kilowatts and so they say no you're already full … so you can't add storage to your solar system."
The powers that be are stumbling in the dark to prevent a looming energy crisis, as the grid seeks to balance renewables' hidden challenges and competing demands.
Mr Morris also said the networks had the capacity to solve the problem of any excess solar flows into the grid, and infrastructure upgrades were not necessary.
"They already have the capability to turn off your solar invertor whenever they feel like it," he said.
"If they choose to connect that functionality, it's there in the inverter. The customer already has it."
ENA has acknowledged there is frustration with rooftop system size limits in the solar industry.
"What we are seeing is solar installers and others slightly frustrated at different requirements for different networks and sometimes they are unclear on the reasons for that," Mr Dillon said.
"Limitations are in place across the country to keep the lights on and make sure the network stays safe and we don't have sudden rushes of people connecting to the grid that causes outage issues."
But Mr Mountain is unconvinced, calling the limitations "somewhat spurious".
"The published, documented, critically reviewed analyses are few and far between, so it is very easy for engineers to make these arguments and those in policy circles only have so much tolerance for the detail," he said.
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How IRENA Study Will Resolve Philippines’ Electricity Crisis
Philippines Renewable Energy Mini-Grids address rising electricity demand, rolling blackouts, off-grid electrification, and decentralized power in an archipelago, leveraging solar, wind, and hybrid systems to close the generation capacity gap and expand household access.
Key Points
Decentralized solar, wind, and hybrid systems powering off-grid areas to relieve shortages and expand access.
✅ Targets 2.3M unelectrified homes with reliable clean power
✅ Mitigates rolling blackouts via modular mini-grid deployments
✅ Supports energy access, resilience, and grid decentralization
The reason why IRENA made its study in the Philippines is because of the country’s demand for electricity is on a steady rise while the generating capacity lags behind. To provide households the electricity, the government is constrained to implement rolling blackouts in some regions. By 2030, the demand for electricity is projected to reach 30 million kilowatts as compared to 17 million kilowatts which is its current generating capacity.
One of the country’s biggest conglomerations, San Miguel Corporation is accountable for almost 20% of power output. It has power plants that has a 900,000-kW generation capacity. Another corporation in the energy sector, Aboitiz Power, has augmented its facilities as well to keep up with the demand. As a matter fact, even foreign players such as Tokyo Electric Power and Marubeni, as a result of the gradual privatization of the power industry which started in 2001, have built power plants in the country, a challenge mirrored in other regions where electricity for all demands greater investment, yet the power supply remains short.
And so, the IRENA came up with the study entitled “Accelerating the Deployment of Renewable Energy Mini-Grids for Off-Grid Electrification – A Study on the Philippines” to provide a clearer picture of what the current state of the crisis is and lay out possible solutions. It showed that as of 2016, a record year for renewables worldwide, the Philippines has approximately 2.3 million households without electricity. With only 89.6 percent of household electrification, that leaves about 2.36 million homes either with limited power of four to six hours each day or totally without electricity.
By the end of 2017, the Philippine government will have provided 90% of Philippine households with electricity. It is worth mentioning that in 2014, the National Capital Region together with two other regions had received 90 percent electrification. However, some areas are still unable to access power that’s within or above the national average. IRENA’s study has become a source of valuable information and analysis to the Philippines’ power systems and identified ways on how to surmount the challenges involving power systems decentralization, with renewable energy funding supporting those mini-grids which are either powered in parts or in full by renewable energy resources. This, however, does not discount the fact that providing electricity in every household still is an on-going struggle. Considering that the Philippines is an archipelago, providing enough, dependable, and clean modern energy to the entire country, including the remote and isolated islands is difficult. The onset of renewable energy is a viable and cost-effective option to support the implementation of mini-grids, as shown by Ireland's green electricity targets rising rapidly.
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Energy chief says electricity would continue uninterrupted if coal phased out within 30 years
Australia Energy Policy Debate highlights IPCC warnings, Paris Agreement goals, coal phase-out, emissions reduction, renewables, gas, pumped hydro, storage, reliability, and investment certainty amid NEG uncertainty and federal-state tensions over targets.
Key Points
Debate over coal, emissions targets, and grid reliability, guided by IPCC science, Paris goals, and market reforms.
✅ IPCC urges rapid cuts and coal phase-out by 2050
✅ NEG's emissions pillar stalled; reliability obligation alive
✅ States, market operators push investment certainty and storage
The United Nation’s climate body, the Intergovernmental Panel on Climate Change, on Monday said radical emissions reduction across the world’s economies, including a phase-out of coal by 2050, was required to avoid the most devastating climate change impacts.
The Morrison government dismissed the findings. Treasurer Josh Frydenberg insisted this week that “coal is an important part of the energy mix”.
“If we were to take coal out of the system the lights would go out on the east coast of Australia overnight. It provides more than 60 per cent of our power," he said.
Ms Zibelman, whose organisation operates the nation’s largest gas and electricity markets, said if Australia was to make an orderly transition to low-emissions electricity generation, aligning with the sustainable electric planet vision, “then certainly we would keep the lights on”.
Ms Zibelman said coal assets should be maintained “as long as they are economically viable and we should have a plan to replace them with resources that are lowest cost”.
Those options comprised gas, renewables, pumped hydro and other energy storage, she told ABC radio, as New Zealand weighs electrification to replace fossil fuels.
Under the Paris treaty the government has pledged to lower emissions by 26 per cent by 2030, based on 2005 levels, even as national emissions rose 2% recently according to industry reports.
Labor would increase the goal to a 45 per cent cut - a policy Prime Minister Scott Morrison said last month would " shut down every coal-fired power station in the country and ... increase people’s power bill by about $1,400 on average for every single household”.
The federal government has scrapped its proposed National Energy Guarantee, which would have cut emissions in the electricity sector, but the reliability component of the plan may continue in some form.
The policy was being developed by the Energy Security Board. The group’s chairwoman Kerry Schott has expressed anger at its demise but on Thursday revealed the board was still working on the policy because “nobody told us to stop”.
Speaking at the Melbourne Institute's Outlook conference, she urged the government to revive the emissions reduction component of the plan to provide investment certainty, noting the IEA net-zero report on Canada shows electricity demand rises in decarbonisation.
Energy Minister Angus Taylor, an energy consultant before entering Parliament, on Thursday said the electricity sector would reduce emissions in line with the Paris deal without a mandated target.
Mr Taylor said only a “very brave state” would not support the policy’s reliability obligation.
The federal government has called a COAG energy council meeting for October 26 in Sydney to discuss electricity reliability.
It is understood Mr Taylor has not contacted Victoria, Queensland or the ACT since taking the portfolio, despite needing unanimous support from the states to progress the issue.
The Victorian government goes into caretaker mode on October 30 ahead of that state's election.
Victorian Energy Minister Lily D’Ambrosio said the federal government was “a rabble when it comes to energy policy, and we won’t be signing anything until after the election".
Speaking at the Melbourne Institute conference, prominent business leaders on Thursday bemoaned a lack of political leadership on energy policy and climate change, saying the only way forward appeared to be for companies to take action themselves, with some pointing to Canada's race to net-zero as a case study in the role of renewables.
Jayne Hrdlicka, chief executive of ASX-listed dairy and infant-formula company a2 Milk, said "we all have an obligation to do the very best job we can in managing our carbon footprint".
"We just need to get on doing what we can .. and then hope that policy will catch up. But we can’t wait," she said.
Ms Hrdlicka said the recent federal political turmoil had been frustrating "because if you invest in building relationships as most of us do in Canberra and then overnight they are all changed, you’re starting from scratch".
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Government of Canada Invests in the Future of Work in Today's Rapidly Changing Electricity Sector
EHRC National Occupational Standards accelerate workforce readiness for smart grids, renewable energy, digitalization, and automation, aligning skills, reskilling, upskilling across the electricity sector with a career portal, labour market insights, and emerging jobs.
Key Points
Industry benchmarks from EHRC defining skills, training, and competencies for Canada's evolving electricity workforce.
✅ Aligns skills to smart grids, renewable energy, and automation
✅ Supports reskilling, upskilling, and career pathways
✅ Informs employers with labour market intelligence
Smart grids, renewable electricity generation, automation, carbon capture and storage, and electric vehicles are transforming the traditional electricity industry. Technological innovation is reshaping and reinventing the skills and occupations required to support the electrical grid of the 21st century, even as pandemic-related grid warnings underscore resilience needs.
Canada has been a global leader in embracing and capitalizing on drivers of disruption and will continue to navigate the rapidly changing landscape of electricity by rethinking and reshaping traditional occupational standards and skills profiles.
In an effort to proactively address the needs of our current and future labour market, building on regional efforts like Nova Scotia energy training to enhance participation, Electricity Human Resources Canada (EHRC) is pleased to announce the launch of funding for the new National Occupational Standards (NOS) and Career Portal project. This project will explore the transformational impact of technology, digitalization and innovation on the changing nature of work in the sector.
Through this research a total of 15 National Occupational Standards and Essential Skills Profiles will be revised or developed to better prepare jobseekers, including young Canadians interested in electricity to transition into the electricity sector. Occupations to be covered include:
- Electrical Engineering Technician/ Technologist
- Power Protection and Control Technician/ Technologist
- Power Systems Operator
- Solar Photovoltaic Installer
- Power Station Operator
- Wind Turbine Technician
- Geothermal Heat Pump Installer
- Solar Thermal Installer
- Utilities Project Manager
- Heat Pump Designer
- Small System Designer (Solar)
- Energy Storage Technician
- Smart Grid Specialist
- 2 additional occupations TBD
The labour market intelligence gathered during the research will examine current occupations or job functions facing change or requiring re-skilling or up-skilling, including specialized courses such as arc flash training in Vancouver that bolster safety competencies, as well as entirely emerging occupations that will require specialized skills.
This project is funded in part by the Government of Canada’ Sectoral Initiative Program and supports its goal to address current and future skills shortages through the development and distribution of sector-specific labour market information.
“Canada’s workforce must evolve with the changing economy. This is critical to building the middle class and ensuring continued economic growth. Our government is committed to an evidence-based approach and is focused on helping workers to gain valuable work experience and the skills they need for a fair chance at success. By collaborating with partners like Electricity Human Resources Canada, we can ensure that we are empowering workers today, and planning for the jobs of tomorrow.” – The Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour
“By encouraging the adoption of new technologies and putting in place the appropriate support for workers, Canada can minimize both skills shortages and technological unemployment. A long-term strategic and national approach to human resource planning and training is therefore critical to ensuring that we continue to maintain the level of growth, reliability, safety and productivity in the system – with a workforce that is truly inclusive and diverse.” – Michelle Branigan, CEO, EHRC.
“The accelerated pace of change in our sector, including advancements in technology and innovation will also have a huge impact on our workforce. We need to anticipate what those impacts will be so employers, employees and job seekers alike can respond to the changing structure of the sector and future job opportunities.” – Jim Kellett, Board Chair, EHRC.
About Electricity Human Resources Canada
EHRC helps to build a better workforce by strengthening the ability of the Canadian electricity industry to meet current and future needs for a highly skilled, safety-focused, diverse and productive workforce by addressing the electrical safety knowledge gap that can lead to injuries.
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New fuel cell concept brings biological design to better electricity generation
Quinone-mediated fuel cell uses a bio-inspired organic shuttle to carry electrons and protons to a nearby cobalt catalyst, improving hydrogen conversion, cutting platinum dependence, and raising efficiency while lowering costs for clean electricity.
Key Points
An affordable, bio-inspired fuel cell using an organic quinone shuttle and cobalt catalyst to move electrons efficiently
✅ Organic quinone shuttles electrons to a separate cobalt catalyst
✅ Reduces platinum use, lowering cost of hydrogen power
✅ Bio-inspired design aims to boost efficiency and durability
Fuel cells have long been viewed as a promising power source. But most fuel cells are too expensive, inefficient, or both. In a new approach, inspired by biology, a team has designed a fuel cell using cheaper materials and an organic compound that shuttles electrons and protons.
Fuel cells have long been viewed as a promising power source. These devices, invented in the 1830s, generate electricity directly from chemicals, such as hydrogen and oxygen, and produce only water vapor as emissions. But most fuel cells are too expensive, inefficient, or both.
In a new approach, inspired by biology and published today (Oct. 3, 2018) in the journal Joule, a University of Wisconsin-Madison team has designed a fuel cell using cheaper materials and an organic compound that shuttles electrons and protons.
In a traditional fuel cell, the electrons and protons from hydrogen are transported from one electrode to another, where they combine with oxygen to produce water. This process converts chemical energy into electricity. To generate a meaningful amount of charge in a short enough amount of time, a catalyst is needed to accelerate the reactions.
Right now, the best catalyst on the market is platinum -- but it comes with a high price tag, and while advances like low-cost heat-to-electric materials show promise, they address different conversion pathways. This makes fuel cells expensive and is one reason why there are only a few thousand vehicles running on hydrogen fuel currently on U.S. roads.
Shannon Stahl, the UW-Madison professor of chemistry who led the study in collaboration with Thatcher Root, a professor of chemical and biological engineering, says less expensive metals can be used as catalysts in current fuel cells, but only if used in large quantities. "The problem is, when you attach too much of a catalyst to an electrode, the material becomes less effective," he says, "leading to a loss of energy efficiency."
The team's solution was to pack a lower-cost metal, cobalt, into a reactor nearby, where the larger quantity of material doesn't interfere with its performance. The team then devised a strategy to shuttle electrons and protons back and forth from this reactor to the fuel cell.
The right vehicle for this transport proved to be an organic compound, called a quinone, that can carry two electrons and protons at a time. In the team's design, a quinone picks up these particles at the fuel cell electrode, transports them to the nearby reactor filled with an inexpensive cobalt catalyst, and then returns to the fuel cell to pick up more "passengers."
Many quinones degrade into a tar-like substance after only a few round trips. Stahl's lab, however, designed an ultra-stable quinone derivative. By modifying its structure, the team drastically slowed down the deterioration of the quinone. In fact, the compounds they assembled last up to 5,000 hours -- a more than 100-fold increase in lifetime compared to previous quinone structures.
"While it isn't the final solution, our concept introduces a new approach to address the problems in this field," says Stahl. He notes that the energy output of his new design produces about 20 percent of what is possible in hydrogen fuel cells currently on the market. On the other hand, the system is about 100 times more effective than biofuel cells that use related organic shuttles.
The next step for Stahl and his team is to bump up the performance of the quinone mediators, allowing them to shuttle electrons more effectively and produce more power. This advance would allow their design to match the performance of conventional fuel cells, but with a lower price tag.
"The ultimate goal for this project is to give industry carbon-free options for creating electricity, including thermoelectric materials that harvest waste heat," says Colin Anson, a postdoctoral researcher in the Stahl lab and publication co-author. "The objective is to find out what industry needs and create a fuel cell that fills that hole."
This step in the development of a cheaper alternative could eventually be a boon for companies like Amazon and Home Depot that already use hydrogen fuel cells to drive forklifts in their warehouses.
"In spite of major obstacles, the hydrogen economy, with efforts such as storing electricity in pipelines in Europe, seems to be growing," adds Stahl, "one step at a time."
Financial support for this project was provided by the Center for Molecular Electrocatalysis, an Energy Frontier Research Center funded by the U.S. Department of Energy, Office of Science, Office of Basic Energy Sciences, and by the Wisconsin Alumni Research Foundation (WARF) through the WARF Accelerator Program.
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OPINION Rewiring Indian electricity
India Power Sector Crisis: a tangled market of underused plants, coal shortages, cross-subsidies, high transmission losses, and weak PPAs, requiring deregulation, power exchanges, and cost-reflective tariffs to fix insolvency and outages.
Key Points
India power market failure from subsidies, coal shortages, and losses, needing deregulation and reflective pricing.
✅ Deregulate to enable spot trading on power exchanges
✅ End cross-subsidies; charge cost-reflective tariffs
✅ Secure coal supply; cut T&D losses and theft
India's electricity industry is in a financial and political tangle.
Power producers sit on thousands of megawatts of underutilized plant, while consumers face frequent power cuts, both planned and unplanned.
Financially troubled generators struggle to escape insolvency proceedings. The state-owned banks that have mostly financed power utilities fear that debts of troubled utilities totaling 1.74 trillion rupees will soon go bad.
Aggressive bidding for supply contracts and slower-than-expected demand growth, including a recent demand slump in electricity use, is the root cause. The problems are compounded by difficulties in securing coal and other fuels, high transmission losses, electricity theft and cash-starved distribution companies.
But India's 36 state and union territory governments are contributing mightily to this financial and economic mess. They persist with populist cross-subsidies -- reducing charges for farmers and households at the cost of nonagricultural businesses, especially energy-intensive manufacturing sectors such as steel.
The states refuse to let go of their control over how electricity is produced, distributed and consumed. And they are adamant that true markets, with freedom for large industrial users to buy power at market-determined rates from whichever utility they want at power exchanges -- will not become a reality in India.
State politicians are driven mainly by the electoral need to appease farmers, India's most important vote bank, who have grown used to decades of nearly-free power.
New Delhi is therefore relying on short-term fixes instead of attempting to overhaul a defunct system. Users must pay the real cost of their electricity, as determined by a properly integrated national market free of state-level interference if India's power mess is to be really addressed.
As of Aug. 31, the country's total installed production capacity was 344,689 MW, underscoring its status as the third-largest electricity producer globally by output. Out of that, thermal power comprising coal, gas and diesel accounted for 64%, hydropower 13% and renewables accounted for 20%. Commercial and industrial users accounted for 55% of consumption followed by households on 25% and the remaining 20% by agriculture.
Coal-fired power generation, which contributes roughly 90% of thermal output and the bulk of the financially distressed generators, is the most troubled segment as it faces a secular decline in tariffs due to increasing competition from highly subsidized renewables (which also benefit from falling solar panel costs), coal shortages and weak demand.
The Central Electricity Act (CEA) 2003 opened the gates of the country's power sector for private players, who now account for 45% of generating capacity.
But easy credit, combined with an overconfident estimation of the risks involved, emboldened too many investors to pile in, without securing power purchase agreements (PPAs) with distribution companies.
As a result, power capacity grew at an annual compound rate of 11% compared to demand at 6% in the last decade leading to oversupply.
This does not mean that the electricity market is saturated. Merely that there are not enough paying customers. Distributors have plenty of consumers who will not or cannot pay, even though they have connections. There is huge unmet demand for power. There are 32 million Indian homes -- roughly 13% of the total -- mostly rural and poor with no access to electricity.
Moreover, consumption by those big commercial and industrial users which do not enjoy privileged rates is curbed by high prices, driven up by the cost of subsidizing others, extra charges on exchange-traded power and transmission and distribution losses (including theft) of 20-30%.
With renewables increasingly becoming cheaper, financially stressed distributors are avoiding long-term power purchase agreements, preferring spot markets. Meanwhile, coal shortages force generators to buy expensive imported coal supplies or cut output. The operating load for most private generators, which suffer particularly acute coal shortages in compared to state-owned utilities, has fallen from 84% in 2009-2010 to 55% now.
Smoothing coal supplies should be the top priority. Often coal is denied to power generators without long-term purchase contracts. Such discrimination in coal allocation prevails -- because the seller (state-run Coal India and its numerous subsidiaries) is an inefficient monopolist which cannot produce enough and rations coal supplies, favoring state-run generators over private.
To help power producers, New Delhi plans measures including auctioning power sales contracts with assured access to coal. However, even though coal and electricity shortages eased recently, such short-term fixes won't solve the problem. With electricity prices in secular decline, distributors are not seeking long-term supply contracts -- rather they are often looking for excuses to get out of existing agreements.
India needs a fundamental two-step reform. First, the market must be deregulated to allow most bulk suppliers and users to move to power trading exchanges, which currently account for just 10% of the market.
This would lead to genuine price discovery in a spot market and, in time, lead to the trading of electricity futures contracts. That would help in consumers and producers hedge their respective costs and revenues and safeguard their economic positions without any need for government intervention.
The second step to a healthy electricity industry is for consumers to pay the real cost of power. Cross-subsidization must end. That would promote optimal electricity use, innovation and environmental protection. Farmers enjoying nearly-free power create ecological problems by investing in water-guzzling crops such as rice and sugar cane.
Most industrial consumers, who do not have power supply privileges, have their businesses distorted and delayed by high prices. Lowering their costs would encourage power-intensive manufacturing to expand, and in the process, boost electricity demand and improve capacity utilization.
Of course, cutting theft is central to making consumers pay their way. Government officials must stop turning a blind eye to theft, especially when such transmission and distribution losses average 20%.
Politicians who want to continue subsidizing farmers or assist the poor can do so by paying cash out directly to their bank accounts, instead of wrongly relying on the power sector.
Such market-oriented reforms have long been blocked by state-level politicians, who now enjoy the influence born of operating subsidies and interfering in the sector. New Delhi must address this opposition. Narendra Modi, as a self-styled reforming prime minister, should have the courage to bite this bullet and convince state governments (starting with those ruled by his Bharatiya Janata Party) to reform. To encourage cooperation, he could offer states securing real improvements an increased share of centrally collected taxes.
Ritesh Kumar Singh is to be the chief economist of the new policy research and advocacy company Indonomics Consulting. He is former assistant director of the Finance Commission of India.
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Bitcoin mining uses so much electricity that 1 city could curtail facility's power during heat waves
Medicine Hat Bitcoin Mining Facility drives massive electricity demand and energy use, leveraging natural gas and nearby wind power; Hut 8 touts economic growth, while critics cite carbon emissions, renewables integration, and climate impact.
Key Points
A Hut 8 project in Alberta that mines bitcoin at scale, consuming up to 60 MW and impacting energy and emissions.
✅ Consumes more than 60 MW, rivaling citywide electricity use
✅ Sited by natural gas plant; wind turbines nearby
✅ Economic gains vs. carbon emissions and climate risks
On the day of the grand opening of the largest bitcoin mining project in the country, the weather was partly cloudy and 15 C. On a Friday afternoon like this one, the new facility uses as much electricity as all of Medicine Hat, Alta., a city of more than 60,000 people and home to several large industrial plants.
The vast amount of electricity needed for bitcoin mining is why the city of Medicine Hat has championed the economic benefits of the project, while environmentalists say they are wary of the significant energy use.
Toronto-based Hut 8 has spent more than $100 million to develop the 4½-hectare site on the northern edge of the city. It has 56 shipping containers, each filled with 180 computer servers that digitally mine for bitcoin around the clock.
The company said it has already mined more than 3,300 bitcoins in Alberta, including at its much smaller site in Drumheller. On average, the Medicine Hat facility mines about 20 bitcoins per day. The value of bitcoin can fluctuate daily, but has sold recently for around $9,000.
The bitcoin mining facility is located right beside the city of Medicine Hat's new natural gas-fired power plant and four wind turbines are a short distance away. The bitcoin plant can consume more than 60 megawatts of power, more than 10 times more electricity used by any other facility in the city, according to the mayor.
That's why, in the event of a summer heat wave, the city has provisions in place to pull the plug on the electricity it provides to Hut 8, mirroring utility pauses on crypto loads seen elsewhere, so there won't be any blackouts for residents, according to the mayor.
Still, some say the bitcoin mining industry wastes far too much energy
"It's a huge magnitude when you talk about the carbon emissions," said Saeed Kaddoura, an analyst with the Pembina Institute, an environmental think-tank. "Moving forward, there needs to be some consideration on what the environmental impact of this is."
Medicine Hat owns its own natural gas and electricity generation and distribution businesses. The city leases the land to Hut 8 and the facility employs 40 full-time workers. Add up the economic benefits and the city of Medicine Hat will receive a significant financial boost from the new project, says Ted Clugston, the city's mayor.
Financial details of the city's deal with Hut 8 are not disclosed.
For more than a century, the city has attracted business by offering low-cost energy, and the mayor said this project is no different.
"They could have gone anywhere in the world and they chose Medicine Hat," said Clugston. "[Hut 8] is not here for renewable energy because it is not reliable. They need gas-fired generation and we have it in spades."
Environmental groups are concerned by the sheer amount of energy consumed by bitcoin mining, with some utilities warning they can't serve new energy-intensive customers right now, especially in places like Medicine Hat where most of the electricity is produced by fossil fuels.
The bitcoin system is designed, so only a limited number of the cryptocurrency can be mined everyday. Over time, as more miners compete for a decreasing number of available bitcoins, facilities will have to use more electricity compared to the amount of the cryptocurrency they collect.
"The way the bitcoin algorithm works is that it's designed to waste as much electricity as possible. And the more popular bitcoin becomes, the more electricity it wastes," said Keith Stewart, a spokesperson for Greenpeace.
Stewart questions whether natural gas should be used to produce a digital product.
"If you live in Alberta, you want to have heat and light, those types of things. I don't think bitcoin is a necessity of life for anyone," he said.
The CEO of Hut 8 completely disagrees, arguing the cryptocurrency is essential.
"Bitcoin was created during the financial crisis. It has really served a purpose in terms of providing the opportunity for people who don't necessarily trust their government or their central banks," said Andrew Kiguel.
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National Steel Car appealing decision in legal challenge of Ontario electricity fee it calls an unconstitutional tax
Ontario Global Adjustment Appeal spotlights Ontario's electricity fee, regulatory charge vs tax debate, FIT contracts, green energy policy, and constitutional challenge as National Steel Car contests soaring power costs before the Ontario Superior Court.
Key Points
Court challenge over Ontario's global adjustment fee, disputing its status as a regulatory charge instead of a tax.
✅ Challenges classification of global adjustment as tax vs regulatory charge.
✅ Focuses on FIT contracts, renewable energy payments, power cost impacts.
✅ Appeals Ontario ruling; implications for ratepayers and policy.
A manufacturer of steel rail cars is pursuing an appeal after its lawsuit challenging the constitutionality of a major Ontario electricity fee was struck down earlier this year.
Lawyers for Hamilton, Ont.-based National Steel Car Ltd. filed a notice of appeal in July after Ontario Superior Court Justice Wendy Matheson ruled in June that an electricity fee known as the global adjustment charge was a regulatory charge, and not an unconstitutional tax used to finance policy goals, as National Steel Car alleges.
The company, the decision noted, began its legal crusade last year after seeing its electricity bills had “increased dramatically” since the Ontario government passed green energy legislation nearly a decade ago, and amid concerns that high electricity rates are hurting Ontario manufacturers.
Under that legislation, the judge wrote, “private suppliers of renewable energy were paid to ’feed in’ energy into Ontario’s electricity grid.” The contracts for these so-called “feed-in tariff” contracts, or FIT contracts, were the “primary focus” of the lawsuit.
“The applicant seeks a declaration that part of the amount it has paid for electricity is an unconstitutional tax rather than a valid regulatory charge,” the judge added. “More specifically, it challenges part of the Global Adjustment, which is a component of electricity pricing and incorporates obligations under FIT contracts.”
Chiefly representing the difference between Ontario’s market price for power and the guaranteed price owed to generators, global adjustment now makes up the bulk of the commodity cost of electricity in the province. The fee has risen over the past decade, amid calls to reject steep Nova Scotia rate hikes as well — costing electricity customers $37 billion in global adjustment from 2006 to 2014, according to the province’s auditor general — because of investments in the electricity grid and green-energy contracts, among other reasons.
National Steel Car argued the global adjustment is a tax, and an unconstitutional one at that because it violated a section of the Constitution Act requiring taxes to be authorized by the legislature. The company also said the imposition of the global adjustment broke an Ontario law requiring a referendum to be held for new taxes.
The province, Justice Matheson wrote, had argued “that it is plain and obvious that these applications will fail.” In a decision released in June, the judge granted motions to strike out National Steel Car’s applications.
“The Global Adjustment,” she added, “is not a tax because its purpose, in pith and substance, is not to tax, and it is a regulatory charge and therefore, again, not a tax.”
Now, National Steel Car is arguing that the judge erred in several ways, including in fact, “by finding that the FIT contracts must be paid, when they can be cancelled.”
There has been a change in government at Queen’s Park since National Steel Car first filed its lawsuit last year, and that change has put green energy contracts under fire. The Progressive Conservative government of new Premier Doug Ford has already made a number of decisions on the electricity file, such as moving to cancel and wind down more than 750 renewable energy contracts, as well as repealing the province’s Green Energy Act.
The Tories also struck a commission of inquiry into the province’s finances that warned the global adjustment “may be struck down as unconstitutional,” a warning delivered amid cases where Nova Scotia's regulator approved a 14% rate hike in a high-profile decision.
“There is a risk that a court may find the global adjustment is not a valid regulatory charge if shifting costs over a longer period of time inadvertently results in future ratepayers cross-subsidizing today’s ratepayers,” the commission’s report said.
A spokesperson for Ontario’s Ministry of Energy, Northern Development and Mines said in an email that it would be “inappropriate to comment about the specifics of any case before the courts or currently under arbitration.”
National Steel Car is also prepared to fight its case all the way up to the Supreme Court of Canada, according to its lawyer.
“What is clear from our proceeding with the appeal is National Steel Car has every intention of seeing that lawsuit through to its conclusion if this government isn’t interested or prepared to reasonably settle it,” Jerome Morse said.
