Electricity News in August 2018
Canadian gold mine cleans up its act with electricity
Electric mining equipment enables zero-emission, diesel-free operations at Goldcorp's Borden mine, using Sandvik battery-electric drills and LHD trucks to cut ventilation costs, noise, and maintenance while improving underground air quality.
Key Points
Battery-powered mining equipment replaces diesel, cutting emissions and ventilation costs in underground operations.
✅ Cuts diesel use, heat load, and noise in underground headings.
✅ Reduces ventilation infrastructure and operating expense.
✅ Improves air quality, worker health, and equipment uptime.
Mining operations get a lot of flack for creating environmental problems around the world. Yet they provide much of the basic material that keeps the global economy humming. Some mining companies are drilling down in their efforts to clean up their acts, exploring solutions such as recovering mine heat for power to reduce environmental impact.
As the world’s fourth-largest gold mining company Goldcorp has received its share of criticism about the impact it has on the environment.
In 2016, the Canadian company decided to do something about it. It partnered with mining-equipment company Sandvik and began to convert one of its mines into an all-electric operation, a process that is expected to take until 2021.
The efforts to build an all-electric mine began with the Sandvik DD422iE in Goldcorp’s Borden mine in Ontario, Canada.
Goldcorp's Borden mine in Borden, Ontario, CanadaGoldcorp's Borden mine in Borden, Ontario, Canada
The machine weighs 60,000 pounds and runs non-stop on a giant cord. It has a 75-kwh sodium nickel chloride battery to buffer power demands, a crucial consideration as power-hungry Bitcoin facilities can trigger curtailments during heat waves, and to move the drill from one part of the mine to another.
This electric rock-chewing machine removes the need for the immense ventilation systems needed to clean the emissions that diesel engines normally spew beneath the surface in a conventional mining operation, though the overall footprint depends on electricity sources, as regions with Clean B.C. power imports illustrate in practice.
These electric devices improve air quality, dramatically reduce noise pollution, and remove costly maintenance of internal combustion engines, Goldcorp says.
More importantly, when these electric boring machines are used across the board, it will eliminate the negative health effects those diesel drills have on miners.
“It would be a challenge to go back,” says big drill operator Adam Ladouceur.
Mining with electric equipment also removes second- or third-highest expenditure in mining, the diesel fuel used to power the drills, said Goldcorp spokesman Pierre Noel, even as industries pursue dedicated energy deals like Bitcoin mining in Medicine Hat to manage power costs. (The biggest expense is the cost of labor.)
Electric load, haul, dump machine at Goldcorp Borden mine in OntarioElectric load, haul, dump machine at Goldcorp Borden mine in Ontario
Aside from initial cost, the electric Borden mine will save approximately $7 million ($9 million Canadian) annually just on diesel, propane and electricity.
Along with various sizes of electric drills and excavating tools, Goldcorp has started using electric powered LHD (load, haul, dump) trucks to crush and remove the ore it extracts, and Sandvik is working to increase the charging speed for battery packs in the 40-ton electric trucks which transport the ore out of the mines, while utilities add capacity with new BC generating stations coming online.
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Sask. sets new record for power demand
SaskPower Summer Power Demand Record hits 3,520 MW as heat waves drive electricity consumption; grid capacity, renewables expansion, and energy efficiency tips highlight efforts to curb greenhouse gas emissions while meeting Saskatchewan's growing load.
Key Points
The latest summer peak load in Saskatchewan: 3,520 MW, driven by heat, with plans to expand capacity and lower emissions.
✅ New peak surpasses last August by 50 MW to 3,520 MW.
✅ Capacity target: 7,000 MW by 2030 with more renewables.
✅ Tips: AC settings, close blinds, delay heat-producing chores.
As the mercury continues to climb in Saskatchewan, where Alberta's summer electricity record offers a regional comparison, SaskPower says the province has set a new summer power demand record.
The Crown says the new record is 3,520 megawatts. It’s an increase of 50 megawatts over the previous record, or enough electricity for 50,000 homes.
“We’ve seen both summer and winter records set every year for a good while now. And if last summer is any indication, we could very well see another record before temperatures cool off heading into the fall,” said SaskPower Vice President of Transmission and Industrial Services Kory Hayko in a written release. “It’s not impossible we’ll break this record again in the coming days. It’s SaskPower’s responsibility to ensure that Saskatchewan people and businesses have the power they need to thrive. That’s what drives our investment of $1 billion every year, as outlined in our annual report, to modernize and grow the province’s electrical system.”
The previous summer consumption record of 3,740 megawatts was set last August, and similar extremes in the Yukon electricity demand highlight broader demand pressures this year. The winter demand record remains higher at 3,792 megawatts, set on Dec. 29, 2017.
SaskPower says it plans to expand its generation capacity from 4,500 megawatts now to 7,000 megawatts in 2030, with a focus on decreasing greenhouse gas emissions and doubling renewable electricity by 2030 as part of its strategy.
To reduce power bills, the Crown suggests turning down or programming air conditioning when residents aren’t home, inspecting the air conditioner to make sure it is operating efficiently, keeping blinds closed to keep out direct sunlight, delaying chores that produce heat and making sure electronics are turned off when people leave the room.
The new record beats the previous summer peak of 3,470 MW, set last August after also being broken twice in July. The winter demand record is still higher at 3,792 MW, which was set on December 29, 2017. To meet growing power demand, and amid projections that Manitoba's electrical demand could double in the next 20 years, SaskPower is expanding its generation capacity from approximately 4,500 MW now to 7,000 MW by 2030 while also reducing greenhouse gas emissions by 40 per cent from 2005 levels. To accomplish this, we will be significantly increasing the amount of renewables on our system.
Cooling and heating represents approximately a quarter of residential power bills. To reduce consumption and power bills during heat waves, SaskPower’s customers can:
Turn down or program the air conditioning when no one is home (for every degree that air conditioning is lowered for an eight-hour period, customers can save up to two per cent on their power costs);
Consider having their air conditioning unit inspected to make sure it is operating efficiently;
Keep the heat out by closing blinds and drapes, especially those with direct sunlight;
Delay chores that produce heat and moisture, like dishwashing and laundering, until the cooler parts of the day or evening; and
As with any time of the year, make sure lights, televisions and other electronics are turned off when no one's in the room. For example, a modern gaming console can use as much power as a refrigerator.
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Manitoba Hydro's burgeoning debt surpasses $19 billion
Manitoba Hydro Debt Load surges past $19.2B as the Crown corporation faces shrinking net income, restructuring costs, and PUB rate decisions, driven by Bipole III, Keeyask construction, aging infrastructure, and rising interest rate risks.
Key Points
Manitoba Hydro Debt Load refers to the utility's escalating borrowings exceeding $19B, pressuring rates and finances.
✅ Debt rose to $19.2B; projected near $25B within five years.
✅ Major drivers: Bipole III, Keeyask, aging assets, restructuring.
✅ Rate hikes sought; PUB approved 3.6% vs 7.9% request.
Manitoba Hydro's debt load now exceeds $19 billion as the provincial Crown corporation grapples with a shrinking net income amid ongoing efforts to slay costs.
The utility's annual report, to be released publicly on Tuesday, also shows its total consolidated net income slumped from $71 million in 2016-2017 to $37 million in the last fiscal year, mirroring a Hydro One profit drop as electricity revenue fell.
It said efforts to restructure the utility and reduce costs are partly to blame for the $34 million drop in year-over-year income.
These earnings come nowhere close, however, to alleviating Hydro's long-term debt problem, a dynamic also seen in a BC Hydro deferred costs report about customer exposure. The figure is pegged at $19.2 billion this fiscal year, up from $16.1 billion the previous year and $14.2 billion in 2016.
The utility projects its debt will grow to about $25 billion in the next five years. Its largest expenses include finishing the Bipole III line, working on the Keeyask Generating System that is halfway done and rebuilding aging wood poles and substations, the report said.
"This level of debt increases the potential financial exposure from risks facing the corporation and is a concern for both
the corporation and our customers who may be exposed to higher rate increases in the event of rising interest rates, a prolonged drought or a major system failure," outgoing president and CEO Kelvin Shepherd wrote.
The income drop is primarily a result of the $50 million spent in the form of restructuring charges associated with the utility's efforts to streamline the organization and drive down costs, amid NDP criticism of Hydro changes related to government policy.
Those efforts included the implementation of buyouts for employees through what the utility dubbed its "voluntary departure program."
Among the changes, Manitoba Hydro reduced its workforce by 800 employees, which is expected to save the utility over $90 million per year. It also reduced its management positions by 26 per cent, a Monday news release said, while Hydro One leadership upheaval in Ontario drove its shares down during comparable governance turmoil.
To improve its financial situation, Hydro has applied for rate increases, even as the Consumers Coalition pushes to have the proposal rejected. The Public Utilities Board offered a 3.6 per cent average rate hike, instead of the 7.9 per cent jump the utility asked for.
In May, when the PUB rendered its decision, it made several recommendations as an alternative to raising rates, including receiving a share of carbon tax revenue and asking the government to help pay for Bipole III.
Hydro is projecting a net income of $70 million for 2018-2019, which includes the impact of the recent rate increase. That total reflects an approximately 20 per cent reduction in net income from 2017-18 after restructuring costs are calculated.
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Vehicle-to-grid could be ‘capacity on wheels’ for electricity networks
Vehicle-to-Grid (V2G) enables EV batteries to provide grid balancing, flexibility, and demand response, integrating renewables with bidirectional charging, reducing peaker plant reliance, and unlocking distributed energy storage from millions of connected electric vehicles.
Key Points
Vehicle-to-Grid (V2G) lets EVs export power via bidirectional charging to balance grids and support renewables.
✅ Turns parked EVs into distributed energy storage assets
✅ Delivers balancing services and demand response to the grid
✅ Cuts peaker plant use and supports renewable integration
“There are already many Gigawatt-hours of batteries on wheels”, which could be used to provide balance and flexibility to electrical grids, if the “ultimate potential” of vehicle-to-grid (V2G) technology could be harnessed.
That’s according to a panel of experts and stakeholders convened by our sister site Current±, which covers the business models and technologies inherent to the low carbon transition to decentralised and clean energy. Focusing mainly on the UK grid but opening up the conversation to other territories and the technologies themselves, representatives including distribution network operator (DNO) Northern Powergrid’s policy and markets director and Nissan Europe’s director of energy services debated the challenges, benefits and that aforementioned ultimate potential.
Decarbonisation of energy systems and of transport go hand-in-hand amid grid challenges from rising EV uptake, with vehicle fuel currently responsible for more emissions than electricity used for energy elsewhere, as Ian Cameron, head of innovation at DNO UK Power Networks says in the Q&A article.
“Furthermore, V2G technology will further help decarbonisation by replacing polluting power plants that back up the electrical grid,” Marc Trahand from EV software company Nuvve Corporation added, pointing to California grid stability initiatives as a leading example.
While the panel states that there will still be a place for standalone utility-scale energy storage systems, various speakers highlighted that there are over 20GWh of so-called ‘batteries on wheels’ in the US, capable of powering buildings as needed, and up to 10 million EVs forecast for Britain’s roads by 2030.
“…it therefore doesn’t make sense to keep building expensive standalone battery farms when you have all this capacity on wheels that just needs to be plugged into bidirectional chargers,” Trahand said.
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Michigan utilities propose more than $20M in EV charging programs
Michigan EV time-of-use charging helps DTE Energy and Consumers Energy manage off-peak demand, expand smart charger rebates, and build DC fast charging infrastructure, lowering grid costs, emissions, and peak load impacts across Michigan's distribution networks.
Key Points
Michigan utility programs using time-based EV rates to shift charging off-peak and ease grid load via charger rebates.
✅ Off-peak rates cut peak load and distribution transformer stress.
✅ Rebates support home smart chargers and DC fast charging sites.
✅ DTE Energy and Consumers Energy invest to expand EV infrastructure.
The two largest utilities in the state of Michigan, DTE Energy and Consumers Energy, are looking at time-of-use charging rates in two proposed electric vehicle (EV) charging programs, aligned with broader EV charging infrastructure trends among utilities, worth a combined $20.5 million of investments.
DTE Energy last month proposed a $13 million electric vehicle (EV) charging program, which would include transformer upgrades/additions, service drops, labor and contractor costs, materials, hardware and new meters to provide time-of-use charging rates amid evolving charging control dynamics in the market. The Charging Forward program aims to address customer education and outreach, residential smart charger support and charging infrastructure enablement, DTE told regulators in its 1,100-page filing. The utility requested that rebates provided through the program be deferred as a regulatory asset.
Consumers Energy in 2017 withdrew a proposal to install 800 electric vehicle charging ports in its Michigan service territory after questions were raised over how to pay for the $15 million plan. According to Energy News Network, the utility has filed a modified proposal building on the former plan and conversations over the last year that calls for approximately half of the original investment.
Utilities across the country are viewing new demand from EVs as a potential boon to their systems, a shift accelerated by the Model 3's impact on utility planning, potentially allowing greater utilization and lower costs. But that will require the vehicles to be plugged in when other demand is low, to avoid the need for extensive upgrades and more expensive power purchases. Michigan utilities' proposal focuses on off-peak EV charging, as well as on developing new EV infrastructure.
While adoption has remained relatively low nationally, last year the Edison Electric Institute and the Institute for Electric Innovation forecast 7 million EVs on United States' roads by the end of 2025. But unless those EVs can be coordinated, state power grids could face increased stress, the National Renewable Energy Laboratory has said distribution transformers may need to be replaced more frequently and peak load could push system limits — even with just one or two EVs on a neighborhood circuit.
In its application, DTE told regulators that electrification of transportation offers a range of benefits including "reduced operating costs for EV drivers and affordability benefits for utility customers."
"Most EV charging takes place overnight at home, effectively utilizing distribution and generation capacity in the system during a low load period," the utility said. "Therefore, increased EV adoption puts downward pressure on rates by spreading fixed costs over a greater volume of electric sales."
DTE added that other benefits include reduced carbon emissions, improved air quality, increased expenditures in local economies and reduced dependency on foreign oil for the public at large.
A previous proposal from Consumers Energy included 60 fast charging DC stations along major highways in the Lower Peninsula and 750 240-volt AC stations in metropolitan areas. Consumers' new plan will offer rebates for charger installation, as U.S. charging networks jostle for position amid federal electrification efforts, including residential and DC fast-charging stations.
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A goodwill gesture over electricity sows discord in Lebanon
Lebanon Power Barge Controversy spotlights Karadeniz Energy's Esra Sultan, Lebanon's electricity crisis, prolonged blackouts, and sectarian politics as Amal and Hezbollah clash over Zahrani vs Jiyeh docking and allocation across regions.
Key Points
A political dispute over the Esra Sultan power ship, its docking, and power allocation amid Lebanon's chronic blackouts.
✅ Karadeniz Energy lent a third barge at below-market rates.
✅ Docking disputes: Zahrani refused; Jiyeh limited; Zouq connected.
✅ Amal vs Hezbollah split exposes sectarian energy politics.
It was supposed to be a goodwill gesture from an energy company in Turkey.
This summer, the Karadeniz Energy Group lent Lebanon a floating power station to generate electricity at below-market rates to help ease the strain on the country's woefully undermaintained power sector.
Instead, the barge's arrival opened a Pandora's box of partisan mudslinging in a country hobbled by political sectarianism and dysfunction.
There have been rows over where it should dock, how to allocate its 235 megawatts of power, and even what to call the barge, echoing controversies like the Maine electric line debate that pit local politics against energy needs.
It has even driven a wedge between Lebanon's two dominant parties among Shiite Muslims: Amal and the militant group Hezbollah.
Amal, which has held the parliament speaker's seat since 1992, revealed sensationally last week it had refused to allow the boat to dock in a port in the predominantly Shiite south, even though it is one of the most underserved regions of Lebanon.
Power outages in the south can stretch on for more than 12 hours a day, much like the Gaza electricity crisis, according to regional observers.
Hezbollah, which normally stands pat with Amal in political matters, issued an exceptional statement that it had nothing to do with the matter of the barge at Zahrani port. A Hezbollah lawmaker went further to say his party disagreed on the issue with Amal.
Ali Hassan Khalil, Lebanon's Finance Minister and a leading Amal party member, said southerners wanted a permanent power station, not a stop-gap solution, in an implied dig at the rival Free Patriotic Movement, a Christian party that runs the Energy Ministry.
But critics seized on the statement as confirmation that Amal's leaders were in bed with the operators of private generators, who have been making fortunes selling electricity during blackouts at many times the state price.
"For decades there's been nothing stopping them from building a power plant," said Mohammad Obeid, a former Amal party official, in an interview with Lebanon's Al Jadeed TV station.
"Now there's a barge that's coming for three months to provide a few more hours of electricity -- and that's the issue?"
Hassan Khalil, reached by phone, refused to comment.
Nabih Berri, Amal's chief and Lebanon's parliament speaker, who has long been the subject of critical coverage from Al Jadeed's, sued the TV channel for libel on Wednesday for its reporting.
Energy Minister Cesar Abi Khalil, a Christian, lashed out at Amal, saying the ministry even changed the barge's name from Ayse, Turkish for Aisha, a name associated in Lebanon with Sunnis, to Esra Sultan, which does not carry any Shiite or Sunni connotations, to try to get it to dock in Zahrani.
Karadeniz said the barge was renamed "out of courtesy and respect to local customs and sensitivities."
"Ayse is a very common Turkish name, where such preferences are not as sensitive as in Lebanon," it said in a statement to The Associated Press.
Finally, on July 18, the barge docked in Jiyeh, a harbour south of Beirut but north of Zahrani, and in a religiously mixed Muslim area.
But two weeks later it was unmoored again, after Abi Khalil, the energy minister, said the infrastructure at Jiyeh could only handle 30 megawatts of the Esra Sultan's 235 capacity, and upgrades such as burying subsea cables are expensive.
With Zahrani closed to the Esra Sultan, it could only go to Zouq Mikhael, a port in the Christian-dominated Kesrouan region in the north, where it was plugged to the grid Tuesday night, giving the region almost 24 hours of electricity a day.
Lebanon has been contending with rolling blackouts since the days of its 1975-1990 civil war. Successive governments have failed to agree on a permanent solution for the chronic electricity failures, largely because of profiteering, endemic corruption and lack of political will, despite periodic pushes for electricity sector reform in Lebanon over the years.
In 2013, the Energy Ministry contracted with Karadeniz to buy electricity from a pair of its barges, which are still docked in Jiyeh and Zouq Mikhael.
This summer, Abi Khalil signed a new contract with Karadeniz to keep the barges for another three years. As part of the deal, Karadeniz agreed to lend Lebanon the third barge, the Esra Sultan, to produce electricity for three months at no cost - Lebanon would just have to pay for the fuel.
The company said Lebanon's internal squabbles do not affect how long the Esra Sultan would stay in Lebanon, even amid wider sector volatility and the pandemic's impact highlighted in a recent financial update. It arrived on July 18 and it will leave on Oct. 18, it said.
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Maryland opens solar-power subscriptions to all
Maryland Community Solar Program enables renters and condo residents to subscribe to offsite solar, earn utility bill discounts, and support projects across BGE, Pepco, Delmarva, and Potomac Edison territories, with low to moderate income participation.
Key Points
A pilot allowing residents to subscribe to offsite solar and get bill credits and savings, regardless of home ownership.
✅ 5-10 percent discounts on standard utility rates
✅ Available in BGE, Pepco, Delmarva, Potomac Edison areas
✅ Includes low and moderate income subscriber carve-outs
Maryland has launched a pilot program that will allow anyone to power their home with solar panels — even if they are renters or condo-dwellers, or live in the shade of trees.
Solar developers are looking for hundreds of residents to subscribe to six power projects planned across the state, including recently announced sites in Owings Mills and Westminster. Their offers include discounts on standard electric rates.
The developers need a critical mass of customers who are willing to buy the projects’ electricity before they can move forward with plans to install solar panels on about 80 acres. Under state rules, the customer base must include low- and moderate-income residents, many of whom face energy insecurity challenges.
The idea of the community solar program is to tap into the pool of residential customers who don’t want to get their energy from fossil fuels but currently have no way to switch to a cleaner alternative.
That could significantly expand demand for solar projects, said Gary Skulnik, a longtime Maryland solar entrepreneur.
Skulnik is now CEO of Neighborhood Sun, a company recruiting customers for the six projects.
“You’re signing up for a project that won’t exist unless we get enough subscribers,” Skulnik said. “You’re actually getting a new project built.”
It could also stoke simmering conflicts over what sort of land is appropriate for solar development.
The General Assembly authorized the community solar pilot program in 2015. But not-in-my-backyard opposition and concerns about the loss of agricultural land have slowed progress.
Community solar could force more communities to confront those sorts of clashes — and to consider more carefully where solar farms belong.
“We are going to see a lot more solar development in the state,” said Megan Billingsley, assistant director of the Valleys Planning Council in Baltimore County. “One of the things we haven’t seen is any direction or thoughtful planning on where we want to see solar development.”
The General Assembly authorized about 200 megawatts in community solar projects — enough to power about 40,000 households — over three years.
Customers can sign up for projects built within the territory of their electric utility. About half of that solar energy load has been allotted for the region served by Baltimore Gas and Electric Co.
By subscribing to a community solar project, customers won’t actually be getting their electricity from its photovoltaic panels. But their payments will help finance it and, in some cases, complementary battery storage solutions as well.
The Public Service Commission has approved six projects so far: Two in BGE territory, in Owings Mills and near Westminster; one in Pepco territory, in Prince George’s County; two in Delmarva Power and Light territory, in Caroline and Worcester counties; and one in Potomac Edison territory, in Washington County where planning officials have developed proposed recommendations.
More projects are expected to win approval in the next two years.
But none of them can be built unless they catch on with electricity customers. The developers are looking for 2,600 customers statewide.
Skulnik would not say how many customers an individual project needs to get the green light. But he said that the Prince George’s proposal, a 25-acre array atop a Fort Washington landfill is the closest, with about 100 subscribers so far.
The terms of subscription vary by project, but discounts range from 5 percent to 10 percent off utility rates. Customers are asked to commit to the projects for as long as 25 years. (They can break the contracts with advance notice, or if they move to a different utility service area.)
Maryland joins more than a dozen states in advancing community solar projects, as scientists work to improve solar and wind power technology.
Corey Ramsden is an executive for Solar United Neighbors, a nonprofit that promotes the solar industry in eight states and the District of Columbia.
He said potential customers are often confused by the mechanics of subscribing to community solar, or hesitant to commit for years or even decades. The industry is working to answer questions and get people more comfortable with the idea, he said.
But it has been a challenge across the country, including debates over New England grid upgrades, and in Maryland. Advocates for solar say there is broad support for renewable energy generation. The state has set goals to increase green energy use and reduce greenhouse gas emissions.
Still, many Marylanders don’t welcome the reality when a project attempts to move in.
Rural land is often the most desirable for solar developers, because it requires the least effort to prepare for an array of panels. But community groups in those areas have asked whether land historically used for farming is right for a more industrial use.
“People are very much in favor of going for a lot more renewables, for whatever reason,” said Dru Schmidt-Perkins, the former president of the land conservation group 1,000 Friends of Maryland. “That support comes to a screeching halt when land that is perceived to be valuable for other things, whether a historic viewshed or farming, suddenly becomes a target of a location for this new project.”
Such concerns have at least temporarily stalled the momentum for solar across the state. Anne Arundel County had at least five small community solar projects in the pipeline in December when officials decided to pause development for eight months. Baltimore County officials imposed a four-month moratorium on solar development before passing an ordinance last year to limit the size and number of solar farms.
Billingsley said the Valley Plannings Council, which advocates for historic and rural areas in western Baltimore County, is frustrated that there hasn’t been more discussion about which areas the county should target for solar development — and which it shouldn’t.
She said she fears that pressure to expand solar farms across rural lands is only going to grow as community solar projects launch, and as lawmakers in Annapolis talk about more policies to promote investment in renewable energy.
Schmidt-Perkins called community solar “an amazing program” for those who would install solar panels on their roofs if they could. But she said its launch heightens the importance of discussions about a broader solar strategy.
“Most communities are caught a little flat-footed on this and are somewhat at the mercy of an industry that’s chomping at the bit,” she said. “It’s time for Maryland to say, ‘Okay, let’s come up with our plan so that we know how much solar can we really generate in this state on lands that are not conflict-based.’”
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Texas Utilities back out of deal to create smart home electricity networks
Smart Meter Texas real-time pricing faces rollback as utilities limit on-demand reads, impacting demand response, home area networks, ERCOT wholesale tracking, and thermostat automation, reducing efficiency gains promised through deregulation and smart meter investments.
Key Points
A plan linking smart meters to ERCOT prices, enabling near real-time usage alignment and automated demand response.
✅ Twice-hourly reads miss 15-minute ERCOT price spikes.
✅ Less than 1% of 7.3M meters use HAN real-time features.
✅ Limits hinder automation for HVAC, EV charging, and pool pumps.
Utilities made a promise several years ago when they built Smart Meter Texas that they’d come up with a way for consumers to monitor their electricity use in real time. But now they’re backing out of the deal with the approval of state regulators, leaving in the lurch retail power companies that are building their business model on the promise of real time pricing and denying consumers another option for managing their electricity costs.
Texas utilities collected higher rates to finance the building of a statewide smart meter network that would allow customers to track their electricity use and the quickly changing prices on wholesale power markets almost as they happened. Some retailers are building electricity plans around this promise, providing customers with in-home devices that would eventually track pricing minute-by-minute and allow them to automatically turn down or shut off air conditioners, pool pumps and energy sucking appliances when prices spiked on hot summer afternoons and turn them back on when they prices fell again.
The idea is to help save consumers money by allowing them to shift their electricity consumption to periods when power is cheaper, typically nights and weekends, even as utility revenue in a free-power era remains a debated topic.
“We’re throwing away a large part of (what) ratepayers paid for,” said John Werner, CEO of GridPlus Texas, one of the companies offering consumers a real-time pricing plan that is scheduled to begin testing next month. “They made the smart meters dumb meters.”
When Smart Meter Texas was launched a decade ago by a consortium of the state’s biggest utilities, it was considered an important part of deregulation. The competitive market for electricity held the promise that consumers would eventually have the technology to control their electricity use through a home area network and cut their power bills.
Regulators and legislators also were enticed by the possibility of making the electric system more efficient and relieving pressure on the power grid as consumers responded to high prices and cut consumption when temperatures soared, with ongoing discussions about Texas grid reliability informing policy choices.
One study found that smart meters coupled with smart real time consumption monitors could reduce electricity use between 3 percent and 5 percent, according to Call Me Power, a website sponsored by the European electricity price shopping service Selectra.
But utilities complained that the home area network devices were expensive to install and not used very often, and, with flat electricity demand weighing on growth, they questioned further investment. CenterPoint manager Esther Floyd Kent filed an affidavit with the commission in May that it costs the utility about $30,000 annually to support the network devices, plus maintenance.
Over a six-year period, CenterPoint paid $124,500, or about $20,000 a year, to maintain the system. As of April, there were only 4,067 network devices in CenterPoint’s service area, meaning the utility pays about $30.70 each year to maintain each device.
Centerpoint last year generated $9.6 billion in revenues and earned a $1.8 billion profit, according to its financial filings. CenterPoint officials did not respond to requests for comment.
Other utilities that are part of the Smart Meter consortium also complained to the Public Utility Commission that, up to now, the system hasn’t developed. All told, Texas has 7.3 million meters connected to Smart Meter Texas, but less than 1 percent are using the networking functions to track real-time prices and consumption, according to the testimony of Donny R. Helm, director of technology strategy and architecture for the state’s largest utility Oncor Electric Delivery Co. in Dallas.
The isssue was resolved recently through a settlement agreement that limits on-demand readings to twice an hour that Smart Meter Texas must provide customers. The price of power changes every 15 minutes, so a twice an hour reading may miss some price spikes.
The Public Utility Commission signed off on the deal, and so did several other groups including several retail electricity providers and the Office of Public Utility Counsel which represents residential customers and small businesses.
Michele Gregg, spokeswoman for the Public Utility Counsel, testified in December that the consumer advocate supported the change because widespread use of the networks never materialized. Catherine Webking, an Austin lawyer who represents the Texas Energy Association for Marketers, a group of retail electric providers, said she believes the deal was a reasonable resolution of providing the benefits of Smart Meter Texas while not incurring too much cost.
But Griddy, an electricity provider that offers customers the opportunity to pay wholesale power prices, which also issued a plea to customers during a price surge, said the state hasn’t given the smart-meter networks a chance and could miss out on its potential. Griddy was counting on the continued adoption of real time pricing as the next step for customers wanting to control their electricity costs.
Right now, Griddy sends out price alerts from the grid operator Electric Reliability Council of Texas so businesses like hotels can run washers and dryers when electricity prices are cheapest. But the company was counting on a smart-meter program that would allow customers to track wholesale prices and manage consumption themselves, making Griddy’s offerings attractive to more people.
Wholesale prices are generally cheaper than retail prices, but they can fluctuate widely, especially when the Texas power grid faces another crisis during extreme weather. Last year, wholesale prices averaged less than 3 cents per kilowatt hour, much lower than than retail rates that now are running above 11 cents, but they can spike at times of high demand to as much as $9 a kilowatt hour.
What customers want is to be able to use energy when it’s cheapest, said Greg Craig, Griddy’s CEO, and they want to do it automatically. They want to be able to program their thermostat so that if the price rises they can shut off their air conditioning and if the price falls, they can charge their electric-powered vehicle.
Griddy customers may still save money even without real time data, he said. But they won’t be able to see their usage in real time or see how much they’re spending.
“The big utilities have big investments in the existing way and going to real time and more transparency isn’t really in their best interest,” said Craig.
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Canadian Solar and Tesla contribute to resilient electricity system for Puerto Rico school
SunCrate Solar Microgrid delivers resilient, plug-and-play renewable power to Puerto Rico schools, combining Canadian Solar PV, Tesla Powerwall battery storage, and Black & Veatch engineering to ensure off-grid continuity during outages and disasters.
Key Points
A compact PV-and-battery system for resilient, diesel-free power and microgrid backup at schools and clinics.
✅ Plug-and-play, modular PV, inverter, and battery architecture
✅ Tesla Powerwall storage; Canadian Solar 325 W panels
✅ Scales via daisy-chain for higher loads and microgrids
Eleven months since their three-building school was first plunged into darkness by Hurricane Maria, 140 students in Puerto Rico’s picturesque Yabucoa district have reliable power. Resilient electricity service was provided Saturday to the SU Manuel Ortiz school through an innovative scalable, plug-and-play solar system pioneered by SunCrate Energy with Black & Veatch support. Known as a “SunCrate,” the unit is an effective mitigation measure to back up the traditional power supply from the grid. The SunCrate can also provide sustainable power in the face of ongoing system outages and future natural disasters without requiring diesel fuel.
The humanitarian effort to return sustainable electricity to the K-8 school, found along the island’s hard-hit southeastern coast, drew donated equipment and expertise from a collection of North American companies. Additional support for the Yabucoa project came from Tesla, Canadian Solar and Lloyd Electric, reflecting broader efforts to build a solar-powered grid in Puerto Rico after Hurricane Maria.
“We are grateful for this initiative, which will equip this school with the technology needed to become a resilient campus and not dependent on the status of the power grid. This means that if we are hit with future harmful weather events, the school will be able to open more quickly and continue providing services to students,” Puerto Rico Secretary of Education Julia Keleher said.
The SunCrate harnesses a scalable rapid-response design developed by Black & Veatch and manufactured by SunCrate Energy. Electricity will be generated by an array of 325-W CS6U-Poly modules from Canadian Solar. California-based Tesla contributed advanced battery energy storage through various Powerwall units capable of storing excess solar power and delivering it outside peak generation periods, with related experience from a virtual power plant in Texas informing deployment. Lloyd Electric Co. of Wichita Falls, Texas, partnered to support delivery and installation of the SunCrate.
“As families in the region begin to prepare for the school year, this community is still impacted by the longest U.S. power outage in history,” said Dolf Ivener, a Midwestern entrepreneur who owns King of Trails Construction and SunCrate Energy, which is donating the SunCrate. “SunCrate, with its rapid deployment and use of renewable energy, should give this school peace of mind and hopefully returns a touch of long-overdue normalcy to students and their parents. When it comes to consistent power, SunCrate is on duty.”
The SunCrate is a portable renewable energy system conceived by Ivener and designed and tested by Black & Veatch. Its modular design uses solar PV panels, inverters and batteries to store and provide electric power in support of critical services such as police, fire, schools, clinics and other community level facilities.
A SunCrate can generate 23 to 156 kWh per day, and store 10 kWh to 135 kWh depending on configuration. A SunCrate’s power generation and storage capacity can be easily scaled through daisy-chained configurations to accommodate larger buildings and loads. Leveraging resources from Tesla, Canadian Solar, Lloyd Electric and Lord Electric, the unit in Yabucoa will provide an estimated 52 kWh of storable power without requiring use of costlier diesel-powered generators and cutting greenhouse gas emissions. Its capabilities allow the school to strengthen its function as a designated Community Emergency Response Center in the event of future natural disasters.
“Canadian Solar has a long history of using solar power to support humanitarian efforts aiding victims of social injustice and natural disasters, including previous donations to Puerto Rico after Hurricane Maria,” said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. “We are pleased to make the difference for these schoolchildren in Yabucoa who have been without reliable power for too long.”
The SunCrate will also substantially lower the school’s ongoing electricity costs by providing a reliable source of renewable energy on site, as falling costs of solar batteries improve project economics overall.
“Through our experience providing engineering services in Puerto Rico for nearly 50 years, including dozens of specialized projects for local government and industrial clients, we see great potential for SunCrate as a source of resilient power for the Commonwealth’s remote schools and communities at large, underscoring the importance of electricity resilience across critical infrastructure,” said Charles Moseley, a Program Director in Black & Veatch’s water business. “We hope that the deployment of the SunCrate in Yabucoa sets a precedent for facility and municipal level migro-grid efforts on the island and beyond.”
SunCrate also has broad potential applications in conflict/post-conflict environments and in rural electrification efforts in the developing world, serving as a resilient source of electricity within hours of its arrival on site and could enable peer-to-peer energy within communities. Of particular benefit, the system’s flexibility cuts fuel costs to a fraction of a generator’s typical consumption when they are used around the clock with maintenance requirements.
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Japan to host one of world's largest biomass power plants
eRex Biomass Power Plant will deliver 300 MW in Japan, offering stable baseload renewable energy, coal-cost parity, and feed-in tariff independence through economies of scale, efficient fuel procurement, and utility-scale operations supporting RE100 demand.
Key Points
A 300 MW Japan biomass project targeting coal-cost parity and FIT-free, stable baseload renewable power.
✅ 300 MW capacity; enough for about 700,000 households
✅ Aims to skip feed-in tariff via economies of scale
✅ Targets coal-cost parity with stable, dispatchable output
Power supplier eRex will build its largest biomass power plant to date in Japan, hoping the facility's scale will provide healthy margins, a strategy increasingly seen among renewable developers pursuing diverse energy sources, and a means of skipping the government's feed-in tariff program.
The Tokyo-based electric company is in the process of selecting a location, most likely in eastern Japan. It aims to open the plant around 2024 or 2025 following a feasibility study. The facility will cost an estimated 90 billion yen ($812 million) or so, and have an output of 300 megawatts -- enough to supply about 700,000 households. ERex may work with a regional utility or other partner
The biggest biomass power plant operating in Japan currently has an output of 100 MW. With roughly triple that output, the new facility will rank among the world's largest, reflecting momentum toward 100% renewable energy globally that is shaping investment decisions.
Nearly all biomass power facilities in Japan sell their output through the government-mediated feed-in tariff program, which requires utilities to buy renewable energy at a fixed price. For large biomass plants that burn wood or agricultural waste, the rate is set at 21 yen per kilowatt-hour. But the program costs the Japanese public more than 2 trillion yen a year, and is said to hamper price competition.
ERex aims to forgo the feed-in tariff with its new plant by reaping economies of scale in operation and fuel procurement. The goal is to make the undertaking as economical as coal energy, which costs around 12 yen per kilowatt-hour, even as solar's rise in the U.S. underscores evolving benchmarks for competitive renewables.
Much of the renewable energy available in Japan is solar power, which fluctuates widely according to weather conditions, though power prediction accuracy has improved at Japanese PV projects. Biomass plants, which use such materials as wood chips and palm kernel shells as fuel, offer a more stable alternative.
Demand for reliable sources of renewable energy is on the rise in the business world, as shown by the RE100 initiative, in which 100 of the world's biggest companies, such as Olympus, have announced their commitment to get 100% of their power from renewable sources. ERex's new facility may spur competition.
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Russian hackers accessed US electric utilities' control rooms
Russian Utility Grid Cyberattacks reveal DHS findings on Dragonfly/Energetic Bear breaching control rooms and ICS/SCADA via vendor supply-chain spear-phishing, threatening blackouts and critical infrastructure across U.S. power utilities through stolen credentials and reconnaissance.
Key Points
State-backed ops breaching utilities via vendors to reach ICS/SCADA, risking grid disruption and control-room access.
✅ Spear-phishing and watering-hole attacks on vendor networks
✅ Stolen credentials used to reach isolated ICS/SCADA
✅ Potential to trigger localized blackouts and service disruptions
Hackers working for Russia were able to gain access to the control rooms of US electric utilities last year, allowing them to cause blackouts, federal officials tell the Wall Street Journal.
The hackers -- working for a state-sponsored group previously identified as Dragonfly or Energetic Bear -- broke into utilities' isolated networks by hacking networks belonging to third-party vendors that had relationships with the power companies, the Department of Homeland Security said in a press briefing on Monday.
Officials said the campaign had claimed hundreds of victims and is likely continuing, the Journal reported.
"They got to the point where they could have thrown switches" to disrupt the flow power, Jonathan Homer, chief of industrial-control-system analysis for DHS, told the Journal.
"While hundreds of energy and non-energy companies were targeted, the incident where they gained access to the industrial control system was a very small generation asset that would not have had any impact on the larger grid if taken offline," the DHS said in a statement Tuesday. "Over the course of the past year as we continued to investigate the activity, we learned additional information which would be helpful to industry in defending against this threat."
Organizations running the nation's energy, nuclear and other critical infrastructure have become frequent targets for cyberattacks in recent years due to their ability to cause immediate chaos, whether it's starting a blackout or blocking traffic signals. These systems are often vulnerable because of antiquated software and the high costs of upgrading infrastructure.
The report comes amid heightened tension between Russia and the US over cybersecurity, alongside US condemnation of power grid hacking in recent months. Earlier this month, US special counsel Robert Mueller filed charges against 12 Russian hackers tied to cyberattacks on the Democratic National Committee.
Hackers compromised US power utility companies' corporate networks with conventional approaches, such as spear-phishing emails and watering-hole attacks as seen in breaches at power plants across the US that target a specific group of users by infecting websites they're known to visit, the newspaper reported. After gaining access to vendor networks, hackers turned their attention to stealing credentials for access to the utility networks and familiarizing themselves with facility operations, officials said, according to the Journal.
Homeland Security didn't identify the victims, the newspaper reports, adding that some companies may not know they had been compromised because the attacks used legitimate credentials to gain access to the networks.
Cyberattacks on electrical systems aren't an academic matter. In 2016, Ukraine's grid was disrupted by cyberattacks attributed to Russia, which is engaged in territorial disputes with the country over eastern Ukraine and the Crimean peninsula. Russia has denied any involvement in targeting critical infrastructure.
President Donald Trump signed an executive order in May designed to bolster the United States' cybersecurity by protecting federal networks, critical infrastructure and the public online. One section of the order focuses on protecting the grid like electricity and water, as well as financial, health care and telecommunications systems.
The Department of Homeland Security didn't respond to a request for comment.
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Peterborough Distribution sold to Hydro One for $105 million.
Peterborough Distribution Inc. Sale to Hydro One delivers a $105 million deal pending Ontario Energy Board approval, a 1% distribution rate cut, five-year rate freeze, job protections, and a new operations centre and fleet facility.
Key Points
A $105M acquisition of PDI by Hydro One, with OEB review, rate freeze, job protections, and a new operations centre.
✅ $105 million purchase; Ontario Energy Board approval required
✅ 1% distribution rate cut and a five-year rate freeze
✅ New operations centre; PDI employees offered roles at Hydro One
The City of Peterborough said Wednesday it has agreed to sell Peterborough Distribution Inc. to Hydro One for $105 million, amid a period when Hydro One shares fell after leadership changes.
The deal requires approval from the Ontario Energy Board before it can proceed.
According to the city, the deal includes a one per cent distribution rate reduction and a five-year freeze in distribution rates for customers, plus:
- A second five-year period with distribution rate increases limited to inflation and an earnings sharing mechanism to offset rates in year 11 and onward
- Protections for PDI employees with employees receiving employment offers to move to Hydro One
- A sale price of $105 million
- An agreement to develop a regional operations centre and new fleet maintenance facility in Peterborough
“Hydro One was unique in its ability to offer new investment and job creation in our community through the addition of a new operations centre to serve customers throughout the broader region,” Mayor Daryl Bennett said.
“We’re surrounded by Hydro One territory — in fact, we already have Hydro One customers within the City of Peterborough and new subdivisions will be in Hydro One territory. Hydro One will be able to create efficiencies by better utilizing its existing infrastructure, benefiting customers and supporting growth.”
The sale comes after months of negotiations amid investor concerns about Hydro One’s uncertainties. At one point, it looked like the sale wouldn’t go through, after it was announced that Hydro One had walked away from the bargaining table.
City council approved the sale of PDI in December 2016, despite a strong public opposition and debate over proposals to make hydro public again among some parties.
Elsewhere in Canada, political decisions around utilities have also sparked debate, as seen when Manitoba Hydro faced controversy over policy shifts.
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Japanese utilities buy into vast offshore wind farm in UK
Japan Offshore Wind Investment signals Japanese utilities entering UK offshore wind, as J-Power and Kansai Electric buy into Innogy's Triton Knoll, leveraging North Sea expertise, 9.5MW turbines, and 15-year fixed-rate contracts.
Key Points
Japanese utilities buying UK offshore wind stakes to import expertise, as J-Power and Kansai join Innogy's Triton Knoll.
✅ $900M deal: J-Power 25%, Kansai Electric ~16% in Innogy unit
✅ Triton Knoll: 860MW, up to 90 9.5MW turbines, 15-year fixed PPA
✅ Goal: Transfer North Sea expertise to develop Japan offshore wind
Two of Japan's biggest power companies will buy around 40% of a German-owned developer of offshore wind farms in the U.K., seeking to learn from Britain's lead in this sector, as highlighted by a UK offshore wind milestone this week, and bring the know-how back home.
Tokyo-based Electric Power Development, better known as J-Power, will join Osaka regional utility Kansai Electric Power in investing in a unit of Germany's Innogy.
The deal, estimated to be worth around $900 million, will give J-Power a 25% stake and Kansai Electric a roughly 16% share. It will mark the first investment in an offshore wind project by Japanese power companies, as other markets shift strategies, with Poland backing wind over nuclear signaling broader momentum.
Innogy plans to start up the 860-megawatt Triton Knoll offshore wind project -- one of the biggest of its kind in the world -- in the North Sea in 2021. The vast installation will have up to 90 9.5MW turbines and sell its output to local utilities under a 15-year fixed-rate contract.
J-Power, which supplies mainly fossil-fuel-based electricity to Japanese regional utilities, will set up a subsidiary backed by the government-run Development Bank of Japan to participate in the Innogy project. Engineers will study firsthand construction and maintenance methods.
While land-based wind turbines are proliferating worldwide, offshore wind farms have progressed mainly in Europe, though U.S. offshore wind competitiveness is improving in key markets. Installed capacity totaled more than 18,000MW at the end of 2017, which at maximum capacity can produce as much power as 18 nuclear reactors.
Japan has hardly any offshore wind farms in commercial operation, and has little in the way of engineering know-how in this field or infrastructure for linking such installations to the land power grid, with a recent Japan grid blackout analysis underscoring these challenges. But there are plans for a total of 4,000MW of offshore wind power capacity, including projects under feasibility studies.
J-Power set up a renewable energy division in June to look for opportunities to expand into wind and geothermal energy in Japan, and efforts like a Japan hydrogen energy system are emerging to support decarbonization. Kansai Electric also seeks know-how for increasing its reliance on renewable energy, even as it hurries to restart idled nuclear reactors.
They are not the only Japanese investors is in this field. In Asia, trading house Marubeni will invest in a Taiwanese venture with plans for a 600MW offshore wind farm.
