Electricity News in July 2018
Russians hacked into US electric utilities: 6 essential reads
U.S. power grid cyberattacks expose critical infrastructure to Russian hackers, DHS warns, targeting SCADA, smart grid sensors, and utilities; NERC CIP defenses, microgrids, and resilience planning aim to mitigate outages and supply chain disruptions.
Key Points
U.S. power grid cyberattacks target utility control systems, risking outages, disruption, requiring stronger defenses.
✅ Russian access to utilities and SCADA raises outage risk
✅ NERC CIP, DHS, and utilities expand cyber defenses
✅ Microgrids and renewables enhance resilience, islanding capability
The U.S. Department of Homeland Security has revealed that Russian government hackers accessed control rooms at hundreds of U.S. electrical utility companies, gaining far more access to the operations of many more companies than previously disclosed by federal officials.
Securing the electrical grid, upon which is built almost the entirety of modern society, is a monumental challenge. Several experts have explained aspects of the task, potential solutions and the risks of failure for The Conversation:
1. What’s at stake?
The scale of disruption would depend, in part, on how much damage the attackers wanted to do. But a major cyberattack on the electricity grid could send surges through the grid, much as solar storms have done.
Those events, explains Rochester Institute of Technology space weather scholar Roger Dube, cause power surges, damaging transmission equipment. One solar storm in March 1989, he writes, left “6 million people without power for nine hours … [and] destroyed a large transformer at a New Jersey nuclear plant. Even though a spare transformer was nearby, it still took six months to remove and replace the melted unit.”
More serious attacks, like larger solar storms, could knock out manufacturing plants that build replacement electrical equipment, gas pumps to fuel trucks to deliver the material and even “the machinery that extracts oil from the ground and refines it into usable fuel. … Even systems that seem non-technological, like public water supplies, would shut down: Their pumps and purification systems need electricity.”
In the most severe cases, with fuel-starved transportation stalled and other basic infrastructure not working, “[p]eople in developed countries would find themselves with no running water, no sewage systems, no refrigerated food, and no way to get any food or other necessities transported from far away. People in places with more basic economies would also be without needed supplies from afar.”
2. It wouldn’t be the first time
Russia has penetrated other countries’ electricity grids in the past, and used its access to do real damage. In the middle of winter 2015, for instance, a Russian cyberattack shut off the power to Ukraine’s capital in the middle of winter 2015.
Power grid scholar Michael McElfresh at Santa Clara University discusses what happened to cause hundreds of thousands of Ukrainians to lose power for several hours, and notes that U.S. utilities use software similar to their Ukrainian counterparts – and therefore share the same vulnerabilities.
3. Security work is ongoing
These threats aren’t new, write grid security experts Manimaran Govindarasu from Iowa State and Adam Hahn from Washington State University. There are a lot of people planning defenses, including the U.S. government, as substation attacks are growing across the country. And the “North American Electric Reliability Corporation, which oversees the grid in the U.S. and Canada, has rules … for how electric companies must protect the power grid both physically and electronically.” The group holds training exercises in which utility companies practice responding to attacks.
4. There are more vulnerabilities now
Grid researcher McElfresh also explains that the grid is increasingly complex, with with thousands of companies responsible for different aspects of generating, transmission, and delivery to customers. In addition, new technologies have led companies to incorporate more sensors and other “smart grid” technologies. He describes how that, as a recent power grid report card underscores, “has created many more access points for penetrating into the grid computer systems.”
5. It’s time to ramp up efforts
The depth of access and potential control over electrical systems means there has never been a better time than right now to step up grid security amid a renewed focus on protecting the grid among policymakers and utilities, writes public-utility researcher Theodore Kury at the University of Florida. He notes that many of those efforts may also help protect the grid from storm damage and other disasters.
6. A possible solution could be smaller grids
One protective effort was identified by electrical engineer Joshua Pearce at Michigan Technological University, who has studied ways to protect electricity supplies to U.S. military bases both within the country and abroad. He found that the Pentagon has already begun testing systems, as the military ramps up preparation for major grid hacks, that combine solar-panel arrays with large-capacity batteries. “The equipment is connected together – and to buildings it serves – in what is called a ‘microgrid,’ which is normally connected to the regular commercial power grid but can be disconnected and become self-sustaining when disaster strikes.”
He found that microgrid systems could make military bases more resilient in the face of cyberattacks, criminals or terrorists and natural disasters – and even help the military “generate all of its electricity from distributed renewable sources by 2025 … which would provide energy reliability and decrease costs, [and] largely eliminate a major group of very real threats to national security.”
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Russian hackers had 'hundreds of victims' as they infiltrated U.S. power grid
Russian cyberattacks on U.S. power grid exposed DHS warnings: Dragonfly/Energetic Bear breached control rooms, ICS networks, and could trigger blackouts via switch manipulation, phishing, and malware, threatening critical infrastructure and utility operations nationwide.
Key Points
State-backed breaches of utility ICS and control rooms enabled potential switch manipulation and blackouts.
✅ DHS: Dragonfly/Energetic Bear breached utility networks
✅ Access reached control rooms and ICS for switch control
✅ Ongoing campaign via phishing, malware, lateral movement
Russian hackers for a state-sponsored organization invaded hundreds of control rooms of U.S. electric utilities that could have led to blackouts, a new report says.
The group, known as Dragonfly or Energetic Bear, infiltrated networks of U.S. utilities as part of an effort that is likely ongoing, Department of Homeland Security officials told the Wall Street Journal.
Jonathan Home, chief of industrial-control-system analysis for DHS, said the hackers “got to the point where they could have thrown switches” and upset power flows.
Although the agency did not disclose which companies were impacted, the officials at a briefing Monday said that there were “hundreds of victims” including breaches at power plants across the U.S., and that some companies may not be aware that hackers infiltrated their networks yet.
According to experts, Russia has been preparing for such attacks for some time now, prompting a renewed focus on protecting the grid among utilities and policymakers.
“They’ve been intruding into our networks and are positioning themselves for a limited or widespread attack,” said former Deputy Assistant Defense Secretary Michael Carpenter, now senior director at the Penn Biden Center at the University of Pennsylvania, per the Wall Street Journal. “They are waging a covert war on the West.”
Earlier this year, the Trump administration claimed Russia had staged a power grid hacking campaign against the U.S. energy grid and other U.S. infrastructure.
The report comes after President Trump told reporters last week during a joint press conference in Helsinki alongside Russian President Vladimir Putin that he had no reason not to believe the Russian leader's assurances to him that the Kremlin was not to blame for interference in the election.
Trump later admitted that he misspoke when he said he didn’t “see any reason why” Russia would have meddled in the 2016 election, and said he believes the U.S. intelligence community assessment that found that the Russian government did interfere in the electoral process.
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Senate Committee Advised by WIRES Counsel That Electric Transmission Still Faces Barriers to Development
U.S. Transmission Grid Modernization underscores FERC policy certainty, high-voltage infrastructure upgrades, renewables integration, electrification, and grid resilience to cut congestion and enable distributed energy resources, safeguarding against extreme weather, cyber threats, and market volatility.
Key Points
A plan to expand, upgrade, and secure high-voltage networks for renewables integration, electrification, reliability.
✅ Replace aging lines to cut congestion and customer costs
✅ Integrate renewables and distributed energy resources at scale
✅ Enhance resilience to weather, cyber, and physical threats
Today, in a high-visibility hearing on U.S. energy delivery infrastructure before the United States Senate Committee on Energy and Natural Resources, WIRES Executive Director and Former FERC Chairman Jim Hoecker addressed the challenges and opportunities that confront the modern high-voltage grid as the industry strives to upgrade and expand it to meet the demands of consumers and the economy.
In prepared testimony and responses to Senators' questions, Hoecker urged the Committee to support industry efforts to expand and upgrade the transmission network and to help regulators, especially the Federal Energy Regulatory Commission (FERC action on aggregated DERs), promote certainty and predictability in energy policy and regulation.
His testimony stressed these points:
Significant transmission investment is needed now to replace aging infrastructure like the aging grid risks to clean energy, reduce congestion costs, and deliver widespread benefits to customers.
Increasingly, the role of the transmission grid is to integrate new distributed resources and renewable energy into the electric system and make them available to the market.
The changing electric generation mix, including needed nuclear innovation, and the coming electrification of transportation, heating, and other segments of the American economy in the next quarter century will depend on a strong and adaptable electric system. A robust transmission grid will be the linchpin that will enable us to meet those demands.
"Transmission is the common element that will support all future electricity needs and provide a hedge against uncertainties and potential costly outcomes. The time is now to be proactive in encouraging additional investments in our nation's most crucial infrastructure: the electric transmission system," Hoecker said.
Hoecker's testimony also emphasized that transmission investment will contribute to the overall resilience of the electric system by bringing multiple resources and technologies to bear on threats to the power system, including extreme weather and proposals like a wildfire-resilient grid bill, cyber or physical attacks, or other events. Visit WIRES website for recently filed comments on the subject (supported by a Brattle Group study).
"Transmission gives us the optionality to adapt to whatever the future holds, and a modern and resilient transmission system, informed by Texas reliability improvements, will be the most valuable energy asset we have," says Nina Plaushin, president of WIRES and vice president of federal affairs, regulatory and communications for ITC Holdings Corp.
Hoecker closed his testimony by emphasizing that the "electrification" scenario that is being discussed across multiple industries demands action now in order to ensure policy and regulatory certainty that will support needed transmission investment. More studies need to be conducted to better understand and define how this delivery network must be configured and planned in anticipation of this potential transformation in how we use electrical energy. A full copy of the WIRES testimony can be found here.
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EVs could drive 38% rise in US electricity demand, DOE lab finds
EV-Driven Electricity Demand Growth will reshape utilities through electrification, EV adoption, grid modernization, and ratebasing of charging, as NREL forecasts rising terawatt-hours, CAGR increases, and demand-side flexibility to manage emissions and reliability.
Key Points
Growth in power consumption fueled by EV adoption and electrification, increasing utility sales and grid investment.
✅ NREL projects 20%-38% higher U.S. load by 2050
✅ Utilities see CAGR up to 1.6% and 80 TWh/year growth
✅ Demand-side flexibility and EV charging optimize grids
Utilities have struggled with flat demand for years, but analysis by the National Renewable Energy Laboratory predicts steady growth across the next three decades — largely driven by the adoption of electric vehicles, including models like the Tesla Model 3 that are reshaping expectations.
The study considers three scenarios, a reference case and medium- and high-adoption electrification predictions. All indicate demand growth, but in the medium and high scenarios for 2050, U.S. electricity consumption increases by 20% and 38%, respectively, compared to business as usual.
Utilities could go from stagnant demand to compound annual growth rates of 1.6%, which would amount to sustained absolute growth of 80 terawatt-hours per year.
"This unprecedented absolute growth in annual electricity consumption can significantly alter supply-side infrastructure development requirements," the report says, and could challenge state power grids in multiple regions.
NREL's Trieu Mai, principal investigator for the study, cautions that more research is needed to fully assess the drivers and impacts of electrification, "as well as the role and value of demand-side flexibility."
"Although we extensively and qualitatively discuss the potential drivers and barriers behind electric technology adoption in the report, much more work is needed to quantitatively understand these factors," Mai said in a statement.
However, utilities have largely bought into the dream.
"Electric vehicles are the biggest opportunity we see right now," Energy Impact Partners CEO Hans Kobler told Utility Dive. And the impact could go beyond just higher kilowattt-hour sales, particularly as electric truck fleets come online.
"When the transportation sector is fully electrified, it will result in around $6 trillion in investment," Kobler said. "Half of that is on the infrastructure side of the utility." And the industry can also benefit through ratebasing charging stations and managing the new demand.
One benefit that NREL's report points to is the possibility of "expanded value streams enabled by electric and/or grid-connected technologies," such as energy storage and mobile chargers that enhance flexibility.
"Many electric utilities are carefully watching the trend toward electrification, as it has the potential to increase sales and revenues that have stagnated or fallen over the past decade," the report said, highlighting potential benefits for all customers as adoption grows. "Beyond power system planning, other motivations to study electrification include its potential to impact energy security, emissions, and innovation in electrical end-use technologies and overall efficient system integration. The impacts of electrification could be far-reaching and have benefits and costs to various stakeholders."
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Wind and solar make more electricity than nuclear for first time in UK
UK Renewables Surpass Nuclear Milestone as wind farms and solar panels outpace atomic output, cutting greenhouse gas emissions. BEIS data show low-carbon power generation rising while onshore wind subsidies and auction timelines face policy debate.
Key Points
It is the quarter when UK wind and solar generated more electricity than nuclear, signaling cleaner, low-carbon growth.
✅ BEIS reports wind and solar at 18.33 TWh vs nuclear 16.69 TWh
✅ Energy sector emissions fell 8% as coal use dropped
✅ Calls grow to reopen onshore wind support via CFD auctions
Wind farms and solar panels, with wind leading the power mix during key periods, produced more electricity than the UK’s eight nuclear power stations for the first time at the end of last year, official figures show.
Britain’s greenhouse gas emissions also continued to fall, dropping 3% in 2017, as coal use fell and the use of renewables climbed, though low-carbon generation stalled in 2019 according to later data.
Energy experienced the biggest drop in emissions of any UK sector, of 8%, while pollution from transport and businesses stayed flat.
Energy industry chiefs said the figures showed that the government should rethink its ban on onshore wind subsidies, a move that ministers have hinted could happen soon.
Lawrence Slade, chief executive of the big six lobby group Energy UK, said: “We need to keep up the pace ... by ensuring that the lowest cost renewables are no longer excluded from the market.”
Across the whole year, low-carbon sources of power – wind, solar, biomass and nuclear – provided a record 50.4% of electricity, up from 45.7% in 2016, when wind beat coal for the first time.
But in the fourth quarter of 2017, high wind speeds, new renewables installations and lower nuclear output saw wind and solar becoming the second biggest source of power for the first time.
Wind and solar generated 18.33 terawatt hours (TWh), with nuclear on 16.69TWh, and the UK later set a new record for wind power during 2019, the figures published by the Department for Business, Energy and Industrial Strategy show.
But renewables still have a long way to go to catch up with gas, the UK’s top source of electricity at 36.12TWh, which saw its share of generation fall slightly, though at times wind became the main source as capacity expanded.
Greenpeace said the figures showed the government should capitalise on its lead in renewables and “stop wasting time and money propping up nuclear power”.
Horizon Nuclear Power, a subsidiary of the Japanese conglomerate Hitachi, is in talks with Whitehall officials for a financial support package from the government, which it says it needs by midsummer.
By contrast, large-scale solar and onshore wind projects are not eligible for support, after the Conservative government cut subsidies in 2015.
However the energy minister, Claire Perry, recently told House Magazine that “we will have another auction that brings forward wind and solar, we just haven’t yet said when”.
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UK breaks coal free energy record again but renewables still need more support
UK Coal-Free Grid Streak highlights record hours without coal, as renewable energy, wind and solar boost electricity generation, cutting CO2 emissions, reducing fossil fuel reliance, and accelerating grid decarbonization amid volatile gas markets.
Key Points
It is the UKs longest coal-free power run, driven by renewables, signaling decarbonization and reduced gas reliance.
✅ Record-breaking hours of electricity with zero coal generation
✅ Enabled by wind, solar, and growing offshore wind capacity
✅ Highlights need to cut gas use and expand renewable investment
Today is the fourth the UK has entered with not a watt of electricity generated by coal.
It’s the longest such streak since the 1880s and comes only days after the last modern era coal-free power record of 55 hours was set.
That represents good news for those of us who have children and would rather like there to be a planet for them to live on when we’re gone.
Coal generated power is dirty power, and not just through the carbon that gets pumped into the atmosphere when it burns.
The fact that the UK is increasingly able to call upon cleaner alternatives for its requirements, to the extent that records are being regularly broken and coal's share has fallen to record lows, is a welcome development.
The trouble is one of those alternatives is gas, and while it is better than coal it still throws off CO2, among other pollutants. The UK’s use of it, for electricity generation and most of its heating, comes with the added disadvantage of leaving it in hock to volatile international markets and producers that aren’t always friendly.
It was only last month, with the country in the middle of a cold snap, that the Grid was issuing a deficit warning (its first in eight years).
As I wrote at the time, we need to burn less of the stuff as low-carbon progress stalled in 2019 shows, too.
As such, Greenpeace’s call for more investment in renewable energy technology and generation, including solar, onshore wind and offshore wind, which is making an increasing contribution as wind beat coal in 2016 demonstrated, was well made.
Those who complain about onshore wind farms, particularly when they are built in windy places that are pretty, seem willfully blind to the pollution caused by gas.
The need to be listened to less. So do those, like British Gas owner Centrica, that bellyache about green taxes.
It bears repeating that fossil fuels are subsidised still more. It’s just that the subsidies are typically hidden.
A report issued last year by a coalition of environmental organisations found the UK provided $972m (£695m) of annual financing for fossil fuels on average between 2013 and 2015, compared with $172m for renewable energy.
But while they come up with wildly varying amounts as a result of wildly varying approaches, the OECD, the IMF and the International Energy Agency have all quantified substantial subsidies for fossils fuels. Their annual estimates have ranged from $160bn to $5.3tn (yes you read that rate and the number was the IMF’s) globally.
So by all means celebrate coal free days, and a full week without coal power as milestones. But we need more of them more quickly and we need more renewable energy to pick up the slack. As such, the philosophy and approach of government needs to change.
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Australia PM rules out taxpayer funded power plants amid energy battle
ACCC energy underwriting guarantee proposes government-backed certainty for new generation, cutting electricity prices and supporting gas, pumped hydro, renewables, batteries, and potentially coal-fired power, addressing market failure without direct subsidies.
Key Points
A tech-neutral, government-backed plan underwriting new generation revenue to increase certainty and cut power prices.
✅ Government guarantee provides a revenue floor for new generators.
✅ Technology neutral: coal, gas, renewables, pumped hydro, batteries.
✅ Intended to reduce bills by up to $400 and address market failure.
Australian Taxpayers won't directly fund any new power plants despite some Coalition MPs seizing on a new report to call for a coal-fired power station.
The Australian Competition and Consumer Commission recommended the government give financial certainty to new power plants, guaranteeing energy will be bought at a cheap price if it can't be sold, as part of an electricity market plan to avoid threats to supply.
It's part of a bid to cut up to $400 a year from average household power prices.
Prime Minister Malcolm Turnbull said the finance proposal had merit, but he ruled out directly funding specific types of power generation.
"We are not in the business of subsidising one technology or another," he told reporters in Queensland today.
"We've done enough of that. Frankly, there's been too much of that."
Renewable subsidies, designed in the 1990s to make solar and wind technology more affordable, have worked and will end in 2020.
Some Coalition MPs claim the ACCC's recommendation to underwrite power generation is vindication for their push to build new coal-fired power plants.
But ACCC chair Rod Sims said no companies had proposed building new coal plants - instead they're trying to build new gas projects, pumped hydro or renewable projects.
Opposition Leader Bill Shorten said Mr Turnbull was offering solutions years away, having overseen a rise in power prices over the past year.
"You don't just go down to K-Mart and get a coal-fired power station off the shelf," Mr Shorten told reporters, admitting he had not read the ACCC report.
Energy Minister Josh Frydenberg said the recommendation to underwrite new power generators had a lot of merit, as it would address a market failure highlighted by AEMO warnings about reduced reserves.
"What they're saying is the government needs to step in here to provide some sort of assurance," Mr Frydenberg told 9NEWS today.
He said that could include coal, gas, renewable energy or battery storage.
Deputy Nationals leader Bridget McKenzie said science should determine which technology would get the best outcomes for power bills, with a scrapping coal report suggesting it can be costly.
Mr Turnbull said there was strong support for the vast majority of the ACCC's 56 recommendations, but the government would carefully consider the report, which sets out a blueprint to cut electricity bills by 25 percent.
Acting Greens leader Adam Bandt said Australia should exit coal-fired power in favour of renewable energy to cut pollution.
In contrast, Canada has seen the Stop the Shock campaign advocate a return to coal power in some provinces.
The Australian Energy Council, which represents 21 major energy companies, said the government should consult on changes to avoid "unintended consequences".
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Abengoa, Acciona to start work on 110MW Cerro Dominador CSP plant in Chile
Cerro Dominador CSP Plant delivers 110MW concentrated solar power in Chile's Atacama Desert, with 10,600 heliostats, 17.5-hour molten salt storage, and 24/7 dispatchable energy; built by Acciona and Abengoa within a 210MW complex.
Key Points
A 110MW CSP solar-thermal plant in Chile with heliostats and 17.5h molten salt storage, delivering 24/7 dispatchable clean power.
✅ 110MW CSP with 17.5h molten salt for 24/7 dispatch
✅ 10,600 heliostats; part of a 210MW hybrid CSP+PV complex
✅ Built by Acciona and Abengoa; first of its kind in LatAm
A consortium formed by Spanish groups Abengoa and Acciona, as Spain's renewable sector expands with Enel's 90MW wind build activity, has signed a contract to complete the construction of the 110MW Cerro Dominador concentrated solar power (CSP) plant in Chile.
The consortium received notice to proceed to build the solar-thermal plant, which is part of the 210MW Cerro Dominador solar complex.
Under the contract, Acciona, which has 51% stake in the consortium and recently launched a 280 MW Alberta wind farm, will be responsible for building the plant while Abengoa will act as the technological partner.
Expected to be the first of its kind in Latin America upon completion, the plant is owned by Cerro Dominador, which in turn is owned by funds managed by EIG Global Energy Partners.
The project will add to a Abengoa-built 100MW PV plant, comparable to California solar projects in scope, which was commissioned in February 2018, to form a 210MW combined CSP and PV complex.
Spread across an area of 146 hectares, the project will feature 10,600 heliostats and will have capacity to generate clean and dispatachable energy for 24 hours a day using its 17.5 hours of molten salt storage technology, a field complemented by battery storage advances.
Expected to prevent 640,000 tons of CO2 emission, the plant is located in the commune of María Elena, in the Atacama Desert, in the Antofagasta Region.
“In total, the complex will avoid 870,000 tons of carbon dioxide emissions into the atmosphere every year and, in parallel with Enel's 450 MW U.S. wind operations, will deliver clean energy through 15-year energy purchase agreements with distribution companies, signed in 2014.
“The construction of the solarthermal plant of Cerro Dominador will have an important impact on local development, with the creation of more than 1,000 jobs in the area during its construction peak, and that will be priority for the neighbors of the communes of the region,” Acciona said in a statement.
The Cerro Dominador plant represents Acciona’s fifth solar thermal plant being built outside of Spain. The firm has constructed 10 solarthermal plants with total installed capacity of 624MW.
Acciona has been operating in Chile since 1993. The company, through its Infrastructure division, executed various construction projects for highways, hospitals, hydroelectric plants and infrastructures for the mining sector.
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A Snapshot of the US Market for Smart Solar Inverters
Smart solar inverters anchor DER communications and control, meeting IEEE 1547 and California Rule 21 for volt/VAR, reactive power, and ride-through, expanding hosting capacity and enabling grid services via secure real-time telemetry and commands.
Key Points
Smart solar inverters use IEEE 1547, volt/VAR and reactive power to stabilize circuits and integrate DER safely.
✅ Meet IEEE 1547, Rule 21 ride-through and volt/VAR functions
✅ Support reactive power to manage voltage and hosting capacity
✅ Enable utility communications, telemetry, and grid services
Advanced solar inverters could be one of the biggest distributed energy resource communications and control points out there someday. With California now requiring at least early-stage “smart” capabilities from all new solar projects — and a standards road map for next-stage efforts like real-time communications and active controls — this future now has a template.
There are still a lot of unanswered questions about how smart inverters will be used.
That was the consensus at Intersolar this week, where experts discussed the latest developments on the U.S. smart solar inverter front. After years of pilot projects, multi-stakeholder technical working groups, and slow and steady standards development, solar smart inverters are finally starting to hit the market en masse — even if it’s not yet clear just what will be done with them once they’re installed.
“From the technical perspective, the standards are firm,” Roger Salas, distribution engineering manager for Southern California Edison, said. In September of last year, his utility started requiring that all new solar installations come with “Phase 1" advanced inverter functionality, as defined under the state’s Rule 21.
Later this month, it’s going to start requiring “reactive power priority” for these inverters, and in February 2019, it’s going to start requiring that inverters support the communications capabilities described in “Phase 2,” as well as some more advanced “Phase 3” capabilities.
Increasing hosting capacity: A win-win for solar and utilities
Each of these phases aligns with a different value proposition for smart inverters. The first phase is largely preventative, aimed at solving the kinds of problems that have forced costly upgrades to how inverters operate in solar-heavy Germany and Hawaii.
The key standard in question in the U.S. is IEEE 1547, which sets the rules for what grid-connected DERs must do to stay safe, such as trip offline when the grid goes down, or avoid overloading local transformers or circuits.
The old version of the standard, however, had a lot of restrictive rules on tripping off during relatively common voltage excursions, which could cause real problems on circuits with a lot of solar dropping off all at once.
Phase 1 implementation of IEEE 1547 is all about removing these barriers, Salas said. “They need to be stable, they need to be connected, they need to be able to support the grid.”
This should increase hosting capacity on circuits that would have otherwise been constrained by these unwelcome behaviors, he said.
Reactive power: Where utility and solar imperatives collide
The old versions of IEEE 1547 also didn’t provide rules for how inverters could use one of their more flexible capabilities: the ability to inject or absorb reactive power to mitigate voltage fluctuations, including those that may be caused by the PV itself. The new version opens up this capability, which could allow for an active application of reactive power to further increase hosting capacity, as well as solve other grid edge challenges for utilities.
But where utilities see opportunity, the solar industry sees a threat. Every unit of reactive power comes at the cost of a reduction in the real power output of solar inverters — and almost every solar installation out there is paid based on the real power it produces.
“If you’re tasked to do things that rob your energy sales, that will reduce compensation,” noted Ric O'Connell, executive director of the Oakland, Calif.-based GridLab. “And a lot of systems have third-party owners — the Sunruns, the Teslas — with growing Powerwall fleets — that have contracts, performance guarantees, and they want to get those financed. It’s harder to do that if there’s uncertainty in the future with curtailment."
“That’s the bottleneck right now,” said Daniel Munoz-Alvarez, a GTM Research grid edge analyst. “As we develop markets on the retail end for ...volt/VAR control to be compensated on the grid edge and that is compensated back to the customer, then the customer will be more willing to allow the utility to control their smart inverters or to allow some automation.”
But first, he said, “We need some agreed-upon functions.”
The future: Communications, controls and DER integration
The next stage of smart inverter functionality is establishing communications with the utility. After that, utilities will be able use them to monitor key DER data, or issue disconnect and reconnect commands in emergencies, as well as actively orchestrate other utility devices and systems through emerging virtual power plant strategies across their service areas.
This last area is where Salas sees the greatest opportunity to putting mass-market smart solar inverters to use. “If you want to maximize the DERs and what they can do, the need information from the grid. And DERs provide operational and capability information to the utility.”
Inverter makers have already been forced by California to enable the latest IEEE 1547 capabilities into their existing controls systems — but they are clearly embracing the role that their devices can play on the grid as well. Microinverter maker Enphase leveraged its work in Hawaii into a grid services business, seeking to provide data to utilities where they already had a significant number of installations. While Enphase has since scaled back dramatically, its main rival SolarEdge has taken up the same challenge, launching its own grid services arm earlier this summer.
Inverters have been technically capable of doing most of these things for a long time. But utilities and regulators have been waiting for the completion of IEEE 1547 to move forward decisively. Patrick Dalton, senior engineer for Xcel Energy, said his company’s utilities in Colorado and Minnesota are still several years away from mandating advanced inverter capabilities and are waiting for California’s energy transition example in order to choose a path forward.
In the meantime, it’s possible that Xcel's front-of-meter volt/VAR optimization investments in Colorado, including grid edge devices from startup Varentec, could solve many of the issues that have been addressed by smart inverter efforts in Hawaii and California, he noted.
The broader landscape for rolling out smart inverters for solar installations hasn’t changed much, with Hawaii and California still out ahead of the pack, while territories such as Puerto Rico microgrid rules evolve to support resilience. Arizona is the next most important state, with a high penetration of distributed solar, a contentious policy climate surrounding its proper treatment in future years, and a big smart inverter pilot from utility Arizona Public Service to inform stakeholders.
All told, eight separate smart inverter pilots are underway across eight states at present, according to GTM Research: Pacific Gas & Electric and San Diego Gas & Electric in California; APS and Salt River Project in Arizona; Hawaiian Electric in Hawaii; Duke Energy in North Carolina; Con Edison in New York; and a three-state pilot funded by the Department of Energy’s SunShot program and led by the Electric Power Research Institute.
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No deal Brexit could trigger electricity shock for Northern Ireland
Northern Ireland No-Deal Power Contingency outlines Whitehall plans to deploy thousands of generators on barges in the Irish Sea, safeguard the electricity market, and avert blackouts if Brexit disrupts imports from the Republic of Ireland.
Key Points
A UK Whitehall plan to prevent NI blackouts by deploying generators and protecting cross-border electricity flows.
✅ Barges in Irish Sea to host temporary power generators
✅ Mitigates loss of EU market access in a no-deal Brexit
✅ Ensures NI supply if Republic cuts electricity exports
Such a scenario could see thousands of electricity generators being requisitioned at short notice and positioned on barges in the Irish Sea, even as Great Britain's generation mix shapes wider supply dynamics, to help keep the region going, a Whitehall document quoted by the Financial Times states.
An emergency operation could see equipment being brought back from places like Afghanistan, where the UK still has a military presence, the newspaper said.
The extreme situation could arise because Northern Ireland shares a single energy market with the Irish Republic, where Irish grid price spikes have heightened concern about stability.
The region relies on energy imports from the Republic because it does not have enough generating capacity itself, and the UK is aiming to negotiate a deal to allow that single electricity market on the island of Ireland to continue post-EU withdrawal, while virtual power plant proposals for UK homes are explored to avoid outages, the FT stated.
However, if no Brexit deal is agreed Whitehall fears suppliers in the Irish Republic could cut off power because the UK would no longer be part of the European electricity market, and a recent short supply warning from National Grid underscores the risk.
In a bid to prevent blackouts in Northern Ireland in a worse case situation the Government would need to put thousands of generators into place, even as an emergency energy plan has reportedly not gone ahead nationwide, according to the report.
And officials fear they may need to commandeer some generators from the military in such a scenario, the FT reports.
An official was quoted by the newspaper as saying the preparations were “gob-smacking”.
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B.C. Hydro adds more vehicle charging stations across southern B.C.
BC Hydro EV Charging Stations expand provincewide with DC fast chargers, 80% in 30 minutes at 35 c/kWh, easing range anxiety across Vancouver, Vancouver Island, Coquihalla Highway, East Kootenay, between Kamloops and Prince George.
Key Points
Public DC fast-charging network across B.C. enabling 80% charge in 30 minutes to cut EV range anxiety.
✅ 28 new stations added; 30 launched in 2016
✅ 35 c/kWh; about $3.50 per tank equivalent
✅ Coverage: Vancouver, Island, Coquihalla, East Kootenay
B.C. Hydro is expanding its network of electric vehicle charging stations.
The Crown utility says 28 new stations complete the second phase of its fast-charging network and are in addition to the 30 stations opened in 2016.
Thirteen of the stations are in Metro Vancouver, seven are on Vancouver Island, including one at the Pacific Rim Visitor Centre near Tofino, another is in Campbell River, and two have opened on the Coquihalla segment of B.C.'s Electric Highway at the Britton Creek rest area.
A further six stations are located throughout the East Kootenay and B.C. Hydro says the next phase of its program will connect drivers travelling between Kamloops and Prince George, while stations in Prince Rupert are also being planned.
BC Hydro has also opened a fast charging site in Lillooet, illustrating expansion into smaller communities.
Hydro spokeswoman Mora Scott says the stations can charge an electric vehicle to 80 per cent in just 30 minutes, at a cost of 35 cents per kilowatt hour.
Mora Scott says that translates to roughly $3.50 for the equivalent of a full tank of gas in the average four-cylinder car.
“The number of electric vehicles on B.C. roads is increasing, there’s currently around 9,000 across the province, and we actually expect that number to rise to 300,000 by 2030,” Scott says in a news release.
In partnership with municipalities, regional districts and several businesses, B.C. Hydro has been installing charging stations throughout the province since 2012 with support from the provincial and federal governments and programs such as EV charger rebates available to residents.
Scott says the utility wants to ensure the stations are placed where drivers need them so charging options are available provincewide.
“One big thing that we know drivers of electric vehicles worry about is the concept called range anxiety, that the stations aren’t going to be where they need them,” she says.
Several models of electric vehicle are now capable of travelling up to 500 kilometres on a single charge, says Scott.
BC Hydro president Chris O’Riley says the new charging sites will encourage electric vehicle drivers to explore B.C. this summer.
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Independent power project announced by B.C. Hydro now in limbo
Siwash Creek Hydroelectric Project faces downsizing under a BC Hydro power purchase agreement, with run-of-river generation, high grid interconnection costs, First Nations partnership, and surplus electricity from Site C reshaping clean energy procurement.
Key Points
A downsized run-of-river plant in BC, co-owned by Kanaka Bar and Green Valley, selling power via a BC Hydro PPA.
✅ Approved at 500 kW under a BC Hydro clean-energy program
✅ Grid interconnection initially quoted at $2.1M
✅ Joint venture: Kanaka Bar and Green Valley Power
A small run-of-river hydroelectric project recently selected by B.C. Hydro for a power purchase agreement may no longer be financially viable.
The Siwash Creek project was originally conceived as a two-megawatt power plant by the original proponent Chad Peterson, who holds a 50-per-cent stake through Green Valley Power, with the Kanaka Bar Indian Band holding the other half.
The partners were asked by B.C. Hydro to trim the capacity back to one megawatt, but by the time the Crown corporation announced its approval, it agreed to only half that — 500 kilowatts — under its Standing Order clean-energy program.
“Hydro wanted to charge us $2.1 million to connect to the grid, but then they said they could reduce it if we took a little trim on the project,” said Kanaka Bar Chief Patrick Michell.
The revenue stream for the band and Green Valley Power has been halved to about $250,000 a year. The original cost of running the $3.7-million plant, including financing, was projected to be $273,000 a year, according to the Kanaka Bar economic development plan.
“By our initial forecast, we will have to subsidize the loan for 20 years,” said Michell. “It doesn’t make any sense.”
The Kanaka Band has already invested $450,000 in feasibility, hydrology and engineering studies, with a similar investment from Green Valley.
B.C. Hydro announced it would pursue five purchase agreements last March with five First Nations projects — including Siwash Creek — including hydro, solar and wind energy projects, as two new generating stations were being commissioned at the time. A purchase agreement allows proponents to sell electricity to B.C. Hydro at a set price.
However, at least ten other “shovel-ready” clean energy projects may be doomed while B.C. Hydro completes a review of its own operations and its place in the energy sector, where legal outcomes like the Squamish power project ruling add uncertainty, including B.C.’s future power needs.
With the 1,100-megawatt Site C Dam planned for completion in 2024, and LNG demand cited to justify it, B.C. Hydro now projects it will have a surplus of electricity until the early 2030s.
Even if British Columbians put 300,000 electric vehicles on the road over the next 12 years, amid BC Hydro’s first call for power, they will require only 300 megawatts of new capacity, the company said.
A long-term surplus could effectively halt all small-scale clean energy development, according to Clean Energy B.C., even as Hydro One’s U.S. coal plant remains online in the region.
“(B.C. Hydro) dropped their offer down to 500 kilowatts right around the time they announced their review,” said Michell. “So we filled out the paperwork at 500 kilowatts and (B.C. Hydro) got to make its announcement of five projects.”
In the new few weeks, Kanaka and Green Valley will discuss whether they can move forward with a new financial model or shelve the project, he said.
B.C. Hydro declined to comment on the rationale for downsizing Siwash Creek’s power purchase agreement.
The Kanaka Bar Band successfully operates a 49.9-megawatt run-of-river plant on Kwoiek Creek with partners Innergex Renewable Energy.
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Cancelling Ontario's wind project could cost over $100M, company warns
White Pines Project cancellation highlights Ontario's wind farm contract dispute in Prince Edward County, involving IESO approvals, Progressive Conservatives' legislation, potential court action, and costs to ratepayers amid green energy policy shifts.
Key Points
The termination effort for Ontario's White Pines wind farm contract, triggering legal, legislative, and cost disputes.
✅ Contract with IESO dates to 2009; final approval during election
✅ PCs seek legislation insulating taxpayers from litigation
✅ Cancellation could exceed $100M; cost impact on ratepayers
Cancelling an eastern Ontario green energy project that has been under development for nearly a decade could cost more than $100 million, the president of the company said Wednesday, warning that the dispute could be headed to the courts.
Ontario's governing Progressive Conservatives said this week that one of their first priorities during the legislature's summer sitting would be to cancel the contract for the White Pines Project in Prince Edward County.
Ian MacRae, president of WPD Canada, the company behind the project, said he was stunned by the news given that the project is weeks away from completion.
"What our lawyers are telling us is we have a completely valid contract that we've had since 2009 with the (Independent Electricity System Operator). ... There's no good reason for the government to breach that contract," he said.
The government has also not reached out to discuss the cancellation, he said. Meanwhile, construction on the site is in full swing, he said.
"Over the last couple weeks we've had an average of 100 people on site every day," he said. "The footprint of the project is 100 per cent in. So, all the access roads, the concrete for the base foundations, much of the electrical infrastructure. The sub-station is nearing completion."
The project includes nine wind turbines meant to produce enough electricity to power just over 3,000 homes annually, even as Ontario looks to build on an electricity deal with Quebec for additional supply. All of the turbines are expected to be installed over the next three weeks, with testing scheduled for the following month.
MacRae couldn't say for certain who would have to pay for the cancellation, electricity ratepayers or taxpayers.
"Somehow that money would come from IESO and it would be my assumption that would end up somehow on the ratepayers, despite legislation to lower electricity rates now in place," he said. "We just need to see what the government has in mind and who will foot the bill."
Progressive Conservative house leader Todd Smith, who represents the riding where the project is being built, said the legislation to cancel the project will also insulate taxpayers from domestic litigation over the dismantling of green energy projects.
"This is something that the people of Prince Edward County have been fighting ... for seven years," he said. "This shouldn't have come as a surprise to anybody that this was at the top of the agenda for the incoming government, which has also eyed energy independence in recent decisions."
Smith questioned why Ontario's Independent Electricity System Operator gave the final approval for the project during the spring election campaign.
"There's a lot of questions about how this ever got greenlighted in the first place," he said. "This project was granted its notice to proceed two days into the election campaign ... when (the IESO) should have been in the caretaker mode."
Terry Young, the IESO's vice president of policy, engagement and innovation, said the agency could not comment because of the pending introduction of legislation to cancel the deal, following a recent auditor-regulator dispute that drew attention to oversight.
NDP Leader Andrea Horwath said the new Tory government is behaving like the previous Liberal government by cancelling energy projects and tearing up contracts amid ongoing debates over Ontario's hydro mess and affordability. She likened the Tory plan to the Liberal gas plant scandal that saw the government relocate two plants at a substantial cost to taxpayers.
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Sudbury Hydro crews aim to reconnect service after storm
Sudbury Microburst Power Outage strains hydro crews after straight-line winds; New Sudbury faces downed power lines, tree damage, and hazardous access as restoration efforts, mutual aid, and safety protocols aim to reconnect customers by weekend.
Key Points
A microburst downed lines in New Sudbury, cutting power as crews tackle hazardous access and complex repairs.
✅ Straight-line winds downed poles, trees, and service lines
✅ Crews face backyard access hazards, complex reconnections
✅ Mutual aid linemen, arborists, and crane work speed restoration
About 300 Sudbury Hydro customers are still without power Thursday after Monday's powerful microburst storm, part of a series of damaging storms in Ontario seen across the province.
The utility's spokesperson, Wendy Watson, says the power in the affected New Sudbury neighbourhoods should be back on by the weekend, even as Toronto power outages persisted in a recent storm.
The storm, which Environment Canada said was classified as a microburst or straight line wind damage, similar to a severe windstorm in Quebec, downed a number of power lines in the city.
Now crews are struggling with access to the lines, a challenge that BC Hydro's atypical storm response also highlighted, as they work to reconnect service in the area.
"In some cases, you can't get to someone's back yard, or you have to go through the neighbour's yard," Watson said.
"We have one case where [we had] equipment working over a swimming pool. It's dicey, it's really dirty and it's dangerous."
Monday's storm caused massive property damage across the city, particularly in New Sudbury. (Benjamin Aubé/CBC)
Veteran arborist Jim Allsop told CBC News he hasn't seen damage like this in his 30-plus years in the business.
"I don't know how many we've done up to date, but I have another 35 trees on houses," Allsop said. "We'll be probably another week."
"We've rented a crane to help speed up the process, and increase safety, and we're getting five or six done in our 12-hour days."
Scott Aultman, a lineman with North Bay Hydro, said he has seen a few storms in his career, and isn't usually surprised by extensive damage a storm can cause.
"When you see a trailer on its side, you know, you don't see that every day," Aultman said.
But during the clean up, Aultman said the spirit of camaraderie runs high with crews from different areas, as seen when Canadian crews helped Florida during Hurricane Irma.
"We were pumped. It's part of the trade, everybody gets together," Aultman said. "We had a big storm in 2006 and the Sudbury guys were up helping us, so it's great, it's nice to be able to return the favour and help them out."
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NEW Hydro One shares down after Ontario government says CEO, board out
Hydro One Leadership Shakeup unsettles investors as Ontario government ousts CEO and board, pressuring shares; analysts cite political and regulatory risk, stock volatility, trimmed price targets, and dividend stability at the regulated utility.
Key Points
An abrupt CEO exit and board overhaul at Hydro One, driving share declines and raising political and regulatory risk.
✅ Shares fall as CEO retires and board resigns under provincial pressure.
✅ Analysts cut price targets; warn of political, regulatory risks.
✅ New board to pick CEO; province consults on compensation.
Hydro One Ltd. shares slid Thursday with some analysts sounding warnings of greater uncertainty after the new Ontario government announced the retirement of the electrical utility's chief executive and the replacement of its board of directors.
After sagging by almost eight per cent in early trading on the Toronto Stock Exchange, following news that Q2 profit plunged 23% amid weaker electricity revenue, shares of the company were later down four per cent, or 81 cents, at $19.36 as of 11:42 a.m. ET.
On Wednesday, after stock markets had closed for the day, Ontario Premier Doug Ford announced the immediate retirement of Hydro One CEO Mayo Schmidt. He leaves with a $400,000 payout in lieu of post-retirement benefits and allowances, Hydro One said.
Doug Ford's government forces out Hydro One '$6-million man'
During the recent provincial election campaign, Ford vowed to fire Schmidt, who earned $6.2 million last year and whose salary wouldn't be reduced despite calls to cut electricity costs.
Paul Dobson, Hydro One's chief financial officer, will serve as acting CEO until a new top executive is selected.
Ford also said the entire board of directors of the utility would resign. Hydro One said a new board — four members of which will be nominated by the province — will select the company's next CEO, and the province will be consulted on the next leader's compensation.
A new board is expected to be formed by mid-August.
The provincial government is the largest single investor in Hydro One, holding a 47 per cent stake. The company was partly privatized by the former Liberal government in 2015, while the NDP has proposed to make hydro public again in Ontario to change course.
Doug Ford promises to keep Pickering nuclear plant open until 2024
In response to the government's move to supplant the utility's board and CEO, some analysts cautioned investors about too many unknowns in the near-term outlook, citing raised political or regulatory risks.
Analyst Jeremy Rosenfield of iA Securities cut his rating on Hydro One shares to hold from buy, and reduced his 12-month price target for the stock to $24 from $26.
Rosenfield said the stock is still a defensive investment supported by stable earnings and cash flows, good earnings growth and healthy dividend.
However, he said in a research note that "the heightened potential for further political interference in the province's electricity market and regulated utility framework represent key risk factors that are likely to outweigh Hydro One's fundamentals over the near term."
Potential challenge to find new CEO
Laurentian Bank Securities analyst Mona Nazir said in a research note that the magnitude of change all at once was "surprising but not shocking."
She said the agreement that will see Hydro One consult with the provincial government on matters involving executive pay could have an impact on the hiring of a new CEO for the utility.
"Given the government's open and public criticism of the company and a potential ceiling on compensation, it may be challenging to attract top talent to the position," she wrote.
Laurentian cut its rating on the Hydro One to hold and reduced its price target to $21 from $24.
Analysts at CIBC World Markets said investors face an uncertain future, noting parallels with debates at Manitoba Hydro over political direction.
"In particular, we are are concerned about the government meddling in with [power] rates," wrote Robert Catellier and Archit Kshetrapal in a research note, adding they believe the new provincial government is aiming for a 12 per cent reduction in customers' power bills.
CIBC reduced its price target on Hydro One's shares to $20.50 from its previous target of $24.
