Electricity News in March 2020
BC Hydro to begin reporting COVID-19 updates at Site C
BC Hydro COVID-19 Site C updates detail monitoring, self-isolation at the work camp, Northern Health coordination, social distancing, reduced staffing, progress on diversion tunnels, Highway 29 realignment, and public reports to Peace River Regional District.
Key Points
Regular reports on COVID-19 monitoring, isolation protocols, staffing, and Site C work with Northern Health.
✅ Daily updates to Peace River Regional District
✅ Isolation rooms reserved in camp dorms
✅ Construction continues with social distancing
BC Hydro says it will begin giving regular updates to the public and the Peace River Regional District about its monitoring of the coronavirus COVID-19 at Site C, reflecting broader industry alerts such as a U.S. grid warning on pandemic risks.
BC Hydro met with the Peace River Regional District Sunday via phone call to discuss the forthcoming measures.
"We did a make a commitment to provide regular updates to Peace River Regional District member communities on an ongoing basis," said spokesman Dave Conway.
"(It's) certainly one of the things that we heard that they want and we heard that strongly and repeatedly."
Conway said updates could be posted as early as Monday on BC Hydro's website for the project.
As of March 23, there were sixteen people in self-isolation at the work camp just outside Fort St. John. Conway did not know how many of the workers have been tested for the virus, but said there are no confirmed cases on site. Provincial guidelines are being followed, he said.
"If they show any of the following symptoms, so sneezing, sore throat, muscle aches, headaches, coughs, or difficulty breathing, they're isolated for 14 days," Conway said.
"We're being very cautious of our application of the guidelines. We're asking anybody to self isolate if they have any slight symptoms."
BC Hydro has set aside one 30-room dorm at the camp for workers who need to isolate themselves, similar to measures in other jurisdictions where the power industry may house staff on-site to maintain operations, and has another four dorms with another 120 rooms that can be used as necessary. Conway could not immediately say whether additional rooms at hotels or at its apartment block have also been reserved.
There have been 700 workers home since a scale-back in construction was announced on March 18, and more workers are expected to be sent home this week. There were 940 people in camp on March 23, Conway said.
"To put that into perspective, the number of people staying in camp at this time of year, based on previous years, usually averages around 1,700," Conway said.
Brad Sperling, board chair for the Peace River Regional District, said BC Hydro has committed to formulating a strategy over the next few days to keep local government and public informed.
Electoral director Karen Goodings said she was pleased by that, and that it's important to everyone that BC Hydro works with Northern Health and adheres to provincial guidelines.
"The senior governments are critical to what measures will be undertaken not only on the project, including the camp, but also on the rules around transportation of workers and on addressing workplace conduct investigations at other utilities," Goodings wrote in an email.
On Sunday, the Site C leisure bus was seen at Totem Mall with two passengers on board.
Conway said the ongoing use of the shuttle is being monitored and evaluated, and is operating under social distancing and extra cleaning guidelines aligned with public transportation changes that have come under BC Transit.
The bus makes 10 trips per day from the camp, with an average of two passengers per trip, Conway said.
"We still have, of course, people in camp, and it's an opportunity for guests to get out and go for a walk and re-provision themselves for essentials for personal needs," Conway said.
Construction of the river diversion tunnels continues to meet a fall deadline, while work also carries on to realign Highway 29, build the transmission line, and clear the valley and future reservoir. Other site security and environmental monitoring work also continues, as utilities confront a dangerous dam-climbing trend driven by social media.
BC Hydro has said measures have been put into place, amid concerns similar to those voiced by nuclear plant workers about precautions at industrial sites, to minimize the potential spread of the COVID-19 on site, such as closing the camp gym and theatre, eliminating self serve dining stations, as well as non-essential travel, tours, and meetings.
Some workers, however, have raised worries about the tight working conditions on site, noting field safety incidents that highlight risks in the sector.
The province announced Monday 48 new cases in B.C., including one more in the Northern Health region, bringing the region's total to five, while Saskatchewan's numbers show how the crisis has reshaped that province. Their precise whereabouts are not being reported by B.C. public health officials.
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Hydro One: No cut in peak hydro rates yet for self-isolating customers
Hydro One COVID-19 Rate Relief responds to time-of-use pricing, peak rates, and Ontario Energy Board rules as residents stay home, offering a Pandemic Relief Fund, flexible payments, and support for electricity bills amid off-peak adjustments.
Key Points
Hydro One's COVID-19 rate relief includes payment flexibility and hardship aid to ease time-of-use bill burdens.
✅ Advocates flexibility on time-of-use and peak rate impacts
✅ Pandemic Relief Fund offers aid and payment options
✅ OEB sets prices; utilities relay concerns and support
Hydro One says it is listening to requests by self-isolating residents for reduced kilowatt hour peak rates during the day when most people are home riding out the COVID-19 pandemic.
Peak rates of 20.8 cents per kw/h are twice as high from 7 a.m. to 7 p.m. – except weekends – than off-peak rates of 10.1 cents per kw/h and set by the Ontario Energy Board and not electricity providers such as Hydro One and Elexicon (formerly Veridian).
Frustrated electrical customers have signed their John Henry’s more than 50,000 times to a change.org petition demanding Hydro One temporarily slash rates for those already struggling with work closures and loss of income amid concerns about a potential recovery rate that could raise bills.
Alex Stewart, media relations spokesman for Hydro One, said the corporation is working toward a solution.
“While we are regulated to adhere to time-of-use pricing by the Ontario Energy Board, we’ve heard the concerns about time-of-use pricing and the idea of a fixed COVID-19 hydro rate as many of our customers will stay home to stop the spread of COVID-19,” Stewart told The Intelligencer.
“We continue to advocate for greater choice during this difficult time and are working with everyone in the electricity sector to ensure our customers are heard.”
Stewart said the electricity provider is reaching out to customers to help them during a difficult self-isolating and social distancing period in other ways to bring financial relief.
For example, new hardship measures are now in play by Hydro One to give customers some relief from ballooning electricity bills.
“This is a difficult time for everyone. Hydro One has launched a new Pandemic Relief Fund to support customers affected by the novel coronavirus COVID-19. As part of our commitment to customers, we will offer financial assistance, as well as increased payment flexibility, to customers experiencing hardship,” Stewart said.
“Hydro One is also extending its Winter Relief program to halt disconnections and reconnections to customers experiencing hardship during the coldest months of the year. This is about doing the right thing and offering flexibility to our customers so they have peace of mind and can concentrate on what matters most – keeping their loved ones safe.”
Stewart said customers having difficult times can visit the company’s website for more details at www.HydroOne.com/ReliefFund.
Elexicon Energy, meanwhile, said earlier the former Veridian company is passing along concerns to the OEB but otherwise can’t lower the rates unless directed to do so, as occurred when the province set off-peak pricing temporarily.
Chris Mace, Elexicon corporate communications spokesperson, said, “We don’t have the authority to do that.
“The Ontario Energy Board sets the energy prices. This is in the Ministry of Energy’s hands. We at Elexicon, along with other local distribution companies (LDC), have shared this feedback with the ministry and OEB to come up with some sort of solution or alternative. But this is out of our hands. We can’t shift anything.”
He suggested residents can shift the use of higher-drawing electrical appliances to early morning before 7 or in the evening after 7 p.m. when ultra-low overnight rates may apply.
Families may want to be “mindful whether it be cooking or laundry and so on and holding off on doing those until off-peak hours take effect. We are hearing customers and we have passed along those concerns to the ministry and the OEB.”
Hydro One power tips
Certain electrical uses in the home consumer more power than others, as reflected in Ontario’s electricity cost allocation approach:
62 per cent goes to space heating
19 per cent goes to water heaters
13 per cent goes to appliances
2 per cent goes to space cooling
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EPA Policy to limit telework emerges during pandemic
EPA Telework Policy restricts remote work, balancing work-from-home guidance during the COVID-19 pandemic with flexible schedules, union contracts, OMB guidance, and federal workforce rules, impacting managers, SES staff, and non-bargaining employees nationwide.
Key Points
A directive limiting many EPA staff to two telework days weekly, with pandemic exceptions and flexible schedules.
✅ Limits telework to two days per week for many employees
✅ Allows flexible schedules, including maxiflex, during emergencies
✅ Aligns with OMB, OPM, CDC guidance; honors union agreements
EPA has moved forward on a new policy that would restrict telework even as agency leadership has encouraged staff to work from home during the coronavirus outbreak.
The new EPA order obtained by E&E News would require employees to report to the office at least three days every week.
"Full-time employees are expected to report to the official worksite and duty station a minimum of three (3) days per week," says the order, dated as approved on Feb. 27. It went into effect March 15 — that night, EPA Administrator Andrew Wheeler authorized telework for the entire agency due to the pandemic.
The order focuses on EPA employees' work schedules and gives them new flexibilities that could come in handy during a public health emergency like the COVID-19 virus, when parts of the power sector consider on-site staffing to ensure continuity.
It also stipulates a deep reduction in EPA employees' capability to work remotely, leaving them with two days of telework per week. An agency order on telework, issued in January 2016, said staff could telework full time.
"The EPA supports the use of telework," said that order. "Regular telework may range from one day per pay period up to full time."
An EPA spokeswoman said the new order doesn't change the agency's guidance to staff to work from home during the pandemic.
"The health and safety of our employees is our top priority, and that is why we have requested that all employees telework, even as residential electricity use increases with more people at home, until at least April 3. There is no provision in the work schedules policy, telework policy or collective bargaining agreement that limits this request," said the spokeswoman.
"While EPA did implement the national work schedule policy effective 3/15/2020, it was implemented in order to provide increased work schedule flexibilities for non-bargaining unit employees who were not previously afforded flexible schedules, including maxiflex," she added.
"The implementation of the policy does not currently impact telework opportunities for EPA employees, and EPA has strongly encouraged all staff to telework," she said.
Still, the new order has caused consternation among EPA employees.
One EPA manager described it as another move by the Trump administration to restrict telework across the government.
"Amidst the COVID-19 crisis, this policy seems particularly ill-timed and unwise. It doesn't even give the administration the chance to evaluate the situation once the COVID-19 pandemic passes," said the manager.
"I think this is a dramatic change in the flexibilities available to the EPA employees without any data to support such a drastic move," the manager said. "It has huge ramifications for employees, many of whom commute over an hour each way to the office, increasing air pollution in the process."
Another EPA staffer said, "I honestly think such an order, given current circumstances, would elicit little more than a scoff and a smirk."
The person added, "How tone-deaf and heavy-handed can one administration be?"
Inside EPA first reported on the new order. E&E News obtained the memo independently.
The recently issued policy applies only to non-bargaining-unit employees, including "full-time and part-time" agency staff as well as "supervisors and managers in the competitive, excepted, Senior Level, Scientific and Professional, and Senior Executive Service positions."
In addition, the order covers "Public Health Service Officers, Schedule C, Administratively Determined employees and non-EPA employees serving on Intergovernmental Personnel Act assignments to EPA."
Nevertheless, EPA employees covered under union contracts must adhere to those contracts if the policy runs counter to them.
"If provisions of this order conflict with the provisions of a collective bargaining agreement, the provisions of the agreement must be applied," the order says.
EPA has taken a more restrictive approach with the agency's largest union, American Federation of Government Employees Council 238, which represents about 7,500 EPA employees. EPA imposed a contract on the council's bargaining unit employees last July that limited them to one day of telework per week, among other changes that triggered union protests.
EPA and AFGE have since relaunched contract negotiations, and how to handle telework is one of the issues under discussion. Both sides committed to complete those bargaining talks by April 15 and work with the Federal Service Impasses Panel if needed (Greenwire, Feb. 27).
Both sides of the telework debate
EPA's new order has been under consideration for some time.
E&E News obtained a draft version last year. The agency had circulated it for comment in July, noting the proposal "limits the number of days an employee may telework per week," among other changes (Greenwire, Sept. 12, 2019).
EPA, like other federal agencies under the Trump administration, has sought to reduce employees' telework. That effort, though, has run into the headwinds of a global pandemic, with a U.S. grid warning highlighting broader risks, leading agency leaders to reverse course and now encourage staff to work remotely in order to stop the spread of the COVID-19 virus.
Wheeler in an email last week told staff that he authorized telework for employees across the country. Federal worker unions had sought the opportunity for remote work on behalf of EPA employees, and the agency had already relaxed telework policies at various offices the prior week where the coronavirus had begun to take hold.
The EPA spokeswoman said the agency moved toward telework after guidance from other agencies.
"Consistent with [Office of Management and Budget], [Centers for Disease Control and Prevention] and [Office of Personnel Management] guidance, along with state and local directives, we have taken swift action in regions and at headquarters to implement telework for all employees. We continue to tell all employees to telework," said the spokeswoman.
Wheeler said in a later video message that his expectation was most EPA employees were working from home.
"I understand that this is a difficult and scary time for all of us," said the EPA administrator.
The coronavirus has become a real challenge for EPA, and utilities like BC Hydro Site C updates illustrate broader operational adjustments.
Agency staff have been exposed to the virus while some have tested positive, and nuclear plant workers have raised similar concerns, according to internal emails. That has led to employees self-quarantining while their colleagues worry they may next fall ill (Greenwire, March 20).
One employee said that since EPA's operations have been maintained with staff working from home, even as household electricity bills rise for many, it's harder for the Trump administration to justify restricting remote work.
"With the current climate, I think employees have shown we can keep the agency going with nearly 95% teleworking full time. It makes their argument hard to justify in light of things," said the EPA employee.
The Trump administration overall has pushed for more remote work by the federal workforce in the battle with the COVID-19 virus. The Office of Management and Budget issued guidance to agencies last week "to minimize face-to-face interactions" and "maximize telework across the nation."
Lawmakers have also pushed to expand telework for federal workers due to the virus.
Democratic senators sent a letter last week urging President Trump to issue an executive order directing agencies to use telework.
In addition, Sens. James Lankford (R-Okla.), Chris Van Hollen (D-Md.) and Kyrsten Sinema (D-Ariz.) introduced legislation that would allow federal employees to telework full time during the pandemic.
Some worry EPA's new order could further sour morale at the agency after the pandemic passes, as other utilities consider measures like unpaid days off to trim costs. Employees may leave if they can't work from home more.
"People will quit EPA over something like this. Maybe that's the goal," said the EPA manager.
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Extensive Disaster Planning at Electric & Gas Utilities Means Lights Will Stay On
Utility Pandemic Preparedness strengthens grid resilience through continuity planning, critical infrastructure protection, DOE-DHS coordination, onsite sequestration, skeleton crews, and deferred maintenance to ensure reliable electric and gas service for commercial and industrial customers.
Key Points
Plans that sustain grid operations during outbreaks using staffing limits, access controls, and deferred maintenance.
✅ Deferred maintenance and restricted site access
✅ Onsite sequestering and skeleton crew operations
✅ DOE-DHS coordination and control center staffing
Commercial and industrial businesses can rest assured that the current pandemic poses no real threat to our utilities, with the U.S. grid remaining reliable for now, as disaster planning has been key to electric and gas utilities in recent years, writes Forbes. Beginning a decade ago, the utility and energy industries evolved detailed pandemic plans, outlining what to know about the U.S. grid during outbreaks, which include putting off maintenance and routine activities until the worst of the pandemic has passed, restricting site access to essential personnel, and being able to run on a skeleton crew as more and more people become ill, a capability underscored by FPL's massive Irma response when crews faced prolonged outages.
One possible outcome of the current situation is that the US electric industry may require essential staff to live onsite at power plants and control centers, similar to Ontario work-site lockdown plans under consideration, if the outbreak worsens; bedding, food and other supplies are being stockpiled, reflecting local response preparations many utilities practice, Reuters reported. The Great River Energy cooperative, for example, has had a plan to sequester essential staff in place since the H1N1 bird flu crisis in 2009. The cooperative, which runs 10 power plants in Minnesota, says its disaster planning ensured it has enough cots, blankets and other necessities on site to keep staff healthy.
Electricity providers are now taking part in twice-weekly phone calls with officials at the DOE, the Department of Homeland Security, and other agencies, as Ontario demand shifts are monitored, according to the Los Angeles Times. By planning for a variety of worst case scenarios, including weeks-long restorations after major storms, “I have confidence that the sector will be prepared to respond no matter how this evolves,” says Scott Aaronson, VP of security and preparedness for the Edison Electric Institute.
Related News
COVID-19 Response: Electric Power Industry Closely Coordinating With Federal Partners
ESCC COVID-19 Response coordinates utilities, public power, and cooperatives to protect the energy grid and electricity reliability, aligning with DOE, DHS, CDC, FERC, and NERC on continuity of operations, mutual assistance, and supply chain resilience.
Key Points
An industry government effort ensuring reliability, operations continuity and supply chain stability during COVID-19.
✅ Twice weekly ESCC calls align DOE, DHS, HHS, CDC, FERC, NERC priorities.
✅ Focus on control centers, generation, quarantine access, mutual aid.
✅ Resource Guide supports localized decisions and supply chain resilience.
The nation’s investor-owned electric companies, public power utilities, and electric cooperatives are working together to protect the energy grid as the U.S. grid addresses COVID-19 challenges and ensure continued access to safe and reliable electricity during the COVID-19 global health crisis.
The electric power industry has been planning for years, including extensive disaster planning across utilities, for an emergency like the COVID-19 pandemic, as well as countless other types of emergencies, and the industry is coordinating closely with government partners through the Electricity Subsector Coordinating Council (ESCC) to ensure that organizations have the resources they need to keep the lights on.
The ESCC is holding high-level coordination calls twice a week with senior leadership from the Departments of Energy, Homeland Security, and Health and Human Services, the Centers for Disease Control and Prevention, the Federal Energy Regulatory Commission, and the North American Electric Reliability Corporation. These calls help ensure that industry and government work together to resolve any challenges that arise during this health emergency and that electricity remains safe for customers.
“Electricity and the energy grid are indispensable to our society, and one of our greatest strengths as an industry is our ability to convene and adapt quickly to changing circumstances and challenging events,” said Edison Electric Institute President Tom Kuhn. “Our industry plans for all types of contingencies, with examples such as local response planning, and strong industry-government coordination and cross-sector collaboration are critical to our planning and response. We appreciate the ongoing leadership and support of our government partners as we all respond to COVID-19 and power through this crisis together.”
The ESCC quickly mobilized and established strategic working groups dedicated to identifying and solving for short-, medium-, and long-term issues facing the industry during the COVID-19 pandemic, with utilities implementing necessary precautions to maintain service across regions.
The five current areas of focus are:
1. Continuity of operations at control centers, including on-site staff lockdowns when needed
2. Continuity of operations at generation facilities
3. Access to, and operations in, restricted or quarantined areas
4. Protocols for mutual assistance
5. Supply chain challenges
“The electric power industry has taken steps to prepare for the evolving coronavirus challenges, while maintaining our commitment to the communities we serve, including customer relief efforts announced by some providers,” said National Rural Electric Cooperative Association CEO Jim Matheson. “We have a strong track record of preparing for many kinds of emergencies that could impact the ability to generate and deliver electricity. While planning for this situation is unique from other business continuity planning, we are taking actions to prepare to operate with a smaller workforce, potential disruptions in the supply chain, and limited support services for an extended period of time.”
The ESCC has developed a COVID-19 Resource Guide linked here and available at electricitysubsector.org. This document was designed to support electric power industry leaders in making informed localized decisions in response to this evolving health crisis. The guide will evolve as additional recommended practices are identified and as more is learned about appropriate mitigation strategies.
“The American Public Power Association (APPA) continues to work with our communityowned public power members and our industry and government partners to gather and share upto-date information, best practices, and guidance to support them in safely maintaining operational integrity,” said APPA CEO Joy Ditto.
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FortisAlberta Takes Necessary Precautions to Provide Electricity Service for Alberta
FortisAlberta COVID-19 response delivers safe electricity distribution across Alberta, with remote monitoring, 24/7 support, outage alerts, dispersed crews, and business continuity measures to sustain essential services for customers and communities.
Key Points
Plan ensuring reliable electricity in Alberta through 24/7 support, remote monitoring, outage alerts, and dispersed crews.
✅ 24/7 customer support via 310-WIRE and mobile app
✅ Remote monitoring and rapid outage restoration
✅ Dispersed crews in 50 communities for faster response
As the COVID-19 pandemic continues to evolve in Alberta (and around the world), FortisAlberta is taking the necessary actions and precautions informed by utility disaster planning to protect the health and well-being of its employees and to provide electricity service to its customers. FortisAlberta serves more than half a million customers with the electricity they depend on to take care of their families and community members throughout our province.
"We recognize these are challenging times as while most Albertans are asked to stay home others continue to work in the community to provide essential services, including utility workers in Ontario demonstrating support efforts. As your electricity distribution provider, please be assured you can count on us to do what we do best – provide our customers with safe and reliable electricity service wherever and whenever they need it," says Michael Mosher, FortisAlberta President and CEO.
FortisAlberta is proud to be a part of the communities it serves and commits to keeping the lights on for its customers. The company is providing a full range of services for its customers and has instilled best practices within critical parts of its business. The company's control centre continues to remotely monitor, control, and restore, where possible, the delivery of power across the entire province, including during events such as an Alberta grid alert that stress the system. Early in March, FortisAlberta implemented its business continuity plan and the company remains fully accessible to customers 24/7 by phone at 310-WIRE (9473) or through its mobile app where customers can report outages online or view details of an outage. Customers can also sign up for outage alerts to their mobile phone and/or email address to let them know if an outage does occur.
FortisAlberta's power line employees are geographically dispersed across 50 different communities so they can quickly address any issues that may arise. The company has implemented work from home measures and isolation best practices, and is planning for potential on-site lockdowns where necessary to ensure no disruption to customers.
FortisAlberta will continue to remain in close communication with its stakeholders to provide updates to customers and with industry associations to share guidance specific to the electricity sector, including insights on the evolving U.S. grid response to COVID-19 from peer utilities. FortisAlberta will also continue to invest in and empower its communities by contributing to organizations that offer programs and services aligned with the greatest needs in the communities it serves.
With the Alberta Government's recent announcement to provide relief to eligible Albertans by deferring electricity and gas charges for up to 90 days, similar to some B.C. relief measures being implemented, FortisAlberta is committed to working with stakeholders and retail partners to ensure this option is available to customers quickly and efficiently, and to learn from initiatives like the Hydro One relief fund that support customers.
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COVID-19 Pandemic Puts $35 Billion in Wind Energy Investments at Risk, Says Industry Group
COVID-19 Impact on U.S. Wind Industry: disrupting wind power projects, tax credits, and construction timelines, risking rural revenues, jobs, and $35B investments; AWEA seeks Congressional flexibility as OEM shutdowns like Siemens Gamesa intensify delays.
Key Points
Pandemic disruptions threaten 25 GW of projects, $35B investment, rural revenues, jobs, and tax-credit timelines.
✅ 25 GW at risk; $35B investment jeopardized
✅ Rural taxes and land-lease payments may drop $8B
✅ AWEA seeks Congressional flexibility on tax-credit deadlines
In one of the latest examples of the havoc that the novel coronavirus is wreaking on the U.S. economy and the crisis hitting solar and wind sector alike, the American Wind Energy Association (AWEA) -- the national trade association for the U.S. wind industry -- yesterday stated its concerns that COVID-19 will "pose significant challenges to the American wind power industry." According to AWEA's calculations, the disease is jeopardizing the development of approximately 25 gigawatts of wind projects, representing $35 billion in investments, even as wind additions persist in some markets amid the pandemic.
Rural communities, where about 99% of wind projects are located, in particular, face considerable risk. The AWEA estimates that rural communities stand to lose about $8 billion in state and local tax payments and land-lease payments to private landowners. In addition, it's estimated that the pandemic threatens the loss of over 35,000 jobs, and the U.S. wind jobs outlook underscores the stakes, including wind turbine technicians, construction workers, and factory workers.
The development of wind projects is heavily reliant on the earning of tax credits, and debates over a Solar ITC extension highlight potential impacts on wind. However, in order to qualify for the current credits, project developers are bound to begin construction before Dec. 31, 2020. With local and state governments implementing various measures to stop the spread of the virus, the success of project developers' meeting this deadline is dubious, as utility-scale solar construction slows nationwide due to COVID-19. Addressing this and other challenges, the AWEA is turning to the government for help. In the trade association's press release, it states that "to protect the industry and these workers, AWEA is asking Congress for flexibility in allowing existing policies to continue working for the industry through this period of uncertainty."
Illustrating one of the ways in which COVID-19 is affecting the industry, Siemens Gamesa, a global leader in the manufacturing of wind turbines, closed a second Spanish factory this week after learning that a second of its employees had tested positive for the novel coronavirus.
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Working From Home Will Drive Up Electricity Bills for Consumers
Remote Work Energy Costs are rising as home offices and telecommuting boost electricity bills; utilities, broadband usage, and COVID-19-driven stay-at-home policies affect productivity, consumption patterns, and household budgets across the U.K. and Europe.
Key Points
Remote Work Energy Costs are increased household electricity and utility expenses from telecommuting and home office use.
✅ WFH shifts energy load from offices to households.
✅ Higher device, lighting, and heating/cooling usage drives bills.
✅ Broadband access gaps limit remote work equity.
Household electricity bills are set to soar, with rising residential electricity use tied to the millions of people now working at home to avoid catching the coronavirus.
Running laptops and other home appliances will cost consumers an extra 52 million pounds ($60 million) each week in the U.K., according to a study from Uswitch, a website that helps consumers compare the energy prices that utilities charge.
For each home-bound household, the pain to the pocketbook may be about 195 pounds per year extra, even as some utilities pursue pandemic cost-cutting to manage financial pressures.
The rise in price for households comes even as overall demand is falling rapidly in Europe, with wide swaths of the economy shut down to keep workers from gathering in one place, and the U.S. grid overseer issuing warnings about potential pandemic impacts on operations.
People stuck at home will plug in computers, lights and appliances when they’d normally be at the office, increasing their consumption.
With the Canadian government declaring a state of emergency due to the coronavirus, companies are enabling work-from-home structures to keep business running and help employees follow social distancing guidelines, and some utilities have even considered housing critical staff on site to maintain operations. However, working remotely has been on the rise for a while.
“The coronavirus is going to be a tipping point. We plodded along at about 10% growth a year for the last 10 years, but I foresee that this is going to really accelerate the trend,” Kate Lister, president of Global Workplace Analytics.
Gallup’s State of the Workplace 2017 study found that 43% of employees work remotely with some frequency. Research indicates that in a five-day workweek, working remotely for two to three days is the most productive. That gives the employee two to three days of meetings, collaboration and interaction, with the opportunity to just focus on the work for the other half of the week.
Remote work seems like a logical precaution for many companies that employ people in the digital economy, even as some federal agencies sparked debate with an EPA telework policy during the pandemic. However, not all Americans have access to the internet at home, and many work in industries that require in-person work.
According to the Pew Research Center, roughly three-quarters of American adults have broadband internet service at home. However, the study found that racial minorities, older adults, rural residents and people with lower levels of education and income are less likely to have broadband service at home. In addition, 1 in 5 American adults access the internet only through their smartphone and do not have traditional broadband access.
Full-time employees are four times more likely to have remote work options than part-time employees. A typical remote worker is college-educated, at least 45 years old and earns an annual salary of $58,000 while working for a company with more than 100 employees, according to Global Workplace Analytics, and in Canada there is growing interest in electricity-sector careers among younger workers.
New York, California and other states have enacted strict policies for people to remain at home during the coronavirus pandemic, which could change the future of work, and Canadian provinces such as Saskatchewan have documented how the crisis has reshaped local economies across sectors.
“I don’t think we’ll go back to the same way we used to operate,” Jennifer Christie, chief HR officer at Twitter, told CNBC. “I really don’t.”
Related News
Entergy Creates COVID-19 Emergency Relief Fund to Help Customers in Need
Entergy COVID-19 Emergency Relief Fund provides financial assistance to ALICE households, low-income seniors, and disabled customers via United Way grants for rent, mortgage, utilities, food, and bill payment support during COVID-19, alongside a disconnect moratorium.
Key Points
A shareholder-funded program offering essential grants and bill support to Entergy customers affected by COVID-19.
✅ Shareholders commit $700,000; grants distributed via United Way partners.
✅ Focus on ALICE families, low-income seniors, and disabled customers.
✅ Disconnects suspended; bill tools and LIHEAP advocacy underway.
In an effort to help working families experiencing financial hardships as a result of the coronavirus pandemic, the Entergy Charitable Foundation has established the COVID-19 Emergency Relief Fund, recognizing the need for electricity across communities.
"The health and safety of our customers, employees and communities is Entergy's top priority," said Leo Denault, chairman and CEO of Entergy Corporation. "For more than 100 years, Entergy has never wavered in our commitment to supporting our customers and the communities we serve. This pandemic is no different. During this challenging time, we are helping lessen the impact of this crisis on the most vulnerable in our communities. I strongly encourage our business partners to join us in this effort."
As devastating and disruptive as this crisis is for everyone, we know from past experience that those most heavily impacted are ALICE households (low-wage working families) and low-income elderly and disabled customers, who often face energy insecurity during such events - roughly 40%-50% of Entergy's customer base.
"We know from experience that working families and low-income elderly and disabled customers are hardest hit during times of crisis," said Patty Riddlebarger, vice president of Entergy's corporate social responsibility. "We are working quickly to make funds available to community partners that serve vulnerable households to lessen the economic impact of the COVID-19 crisis and ensure that families have the resources they need to get by during this time of uncertainty."
To support our most vulnerable customers, Entergy shareholders are committing $700,000 to the COVID-19 Emergency Relief Fund to help qualifying customers with basic needs such as food and nutrition, rent and mortgage assistance, and other critical needs, alongside measures like Texas utilities waiving fees that ease household costs, until financial situations become more stable. Grants from the fund will be provided to United Way organizations and other nonprofit partners across Entergy's service area that are providing services to impacted households.
Company shareholders will also match employee contributions to the COVID-19 relief efforts of local United Way organizations up to $100,000 to maximize impact.
In addition to establishing the COVID-19 Emergency Relief Fund, Entergy is taking additional steps to support and protect our customers during this crisis, similar to PG&E's pandemic response measures, including:
With support from our regulators, we are temporarily suspending customer disconnects, as seen in New Jersey and New York policies, as we continue to monitor the situation.
We are working with our network of community advocates, as the industry coordination with federal partners continues, to request a funding increase of the Low Income Home Energy Assistance Program to help alleviate financial hardships caused by COVID-19 on vulnerable households.
We are developing bill payment solutions and tools to help customers pay their accumulated balances once the disconnect moratorium is lifted.
Already in place to support vulnerable customers is Entergy's The Power to Care program, which provides emergency bill payment assistance to seniors and disabled individuals. To mark the 20th anniversary of Entergy's low-income customer initiative, the limit of shareholders' dollar for dollar match of customer donations was increased from $500,000 to $1 million per year. Shareholders continue to match employee donations dollar for dollar with no limit.
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Sen. Cortez Masto Leads Colleagues in Urging Congress to Support Clean Energy Industry in Economic Relief Packages
Clean Energy Industry Support includes tax credits, refundability, safe harbor extensions, EV incentives, and stimulus measures to stabilize renewable energy projects, protect the workforce, and ensure financing continuity during economic recovery.
Key Points
Policies and funding to stabilize renewables, protect jobs, and extend tax incentives for workforce continuity.
✅ Extend PTC/ITC and remove phase-outs to sustain projects
✅ Enable direct pay or refundability to unlock financing
✅ Preserve safe harbor timelines disrupted by supply chains
U.S. Senator Catherine Cortez Masto (D-Nev.) led 17 Senate colleagues, as the Senate moves to modernize public-land renewables, in sending a letter calling on Congress to include support for the United States' clean energy industry and workforce in any economic aid packages.
"As Congress takes steps to ensure that our nation's workforce is prepared to emerge stronger from the coronavirus health and economic crisis, we must act to shore up clean energy businesses and workers who are uniquely impacted by the crisis, echoing a power-sector call for action from industry groups," said the senators. "This action, which has precedent in prior financial recovery efforts, could take several forms, including tax credit extensions or removal of the current phase-out schedule, direct payment or refundability, or extensions of safe harbor continuity."
"We need to make sure that any package protects workers and helps families stay afloat in these challenging times. Providing support to the clean energy industry will give much-needed certainty and confidence, as the sector targets a market majority, for those workers that they will be able to keep their paychecks and their jobs in this critical industry," the senators also said.
In addition to Senator Cortez Masto, the letter was also signed by Senators Ed Markey (D-Mass.), Martin Heinrich (D-N.M), Sheldon Whitehouse (D-R.I.), Debbie Stabenow (D-Mich.), Tina Smith (D-Minn.), Jack Reed (D-R.I.), Cory Booker (D-N.J.), Richard Blumenthal (D-Conn.), Amy Klobuchar (D-Minn.), Chris Van Hollen (D-Md.), Dianne Feinstein (D-Calif.), Jacky Rosen (D-Nev.), Tammy Duckworth (D-Ill.), Chris Coons (D-Del.), Mazie Hirono (D-Hawaii), Dick Durbin (D-Ill.), and Kyrsten Sinema (D-Ariz.).
Dear Leader McConnell, Leader Schumer, Chairman Grassley, Ranking Member Wyden:
As Congress takes steps to ensure that our nation's workforce is prepared to emerge stronger from the coronavirus health and economic crisis, we must act to shore up clean energy businesses and workers who are uniquely impacted by the crisis, with wind investments at risk amid the pandemic. This action, which has precedent in prior financial recovery efforts, could take several forms, including tax credit extensions or removal of the current phase-out schedule, direct payment or refundability, or extensions of safe harbor continuity.
First and foremost, we need to take care of workers' health and immediate needs to stay in their homes and provide for their families, and the Families First Coronavirus Response Act is a critical down payment. Now, we must make sure the workforce has jobs to return to and that employers remain able to pay for critical benefits like paid sick and family leave, healthcare, and Unemployment Insurance.
The renewable energy industry employs over 800,000 people across every state in the United States. This industry and its workers could suffer significant harms as a result of the coronavirus emergency and resulting financial impact. Renewable energy businesses are already seeing project cancellations or delays, as the Covid-19 crisis hits solar and wind across the sector, with the solar industry reporting delays of 30 percent. Likewise, the energy efficiency sector is susceptible to similar impacts. As the coronavirus pandemic intensifies in the United States, that rate of delay or cancellations will only continue to skyrocket. Global and domestic supply chains are already facing chaotic changes, with equipment delays of three to four months for parts of the industry. A major collapse in financing is all but certain as investment firms' profits turn to losses and capital is suddenly unavailable for large labor-intensive investments.
To ensure that we do not lose years of progress on clean energy and the source of employment for tens of thousands of renewable energy workers, Congress should look to previous relief packages as an example for how to support this sector and the broader American economy. The American Recovery and Reinvestment Act of 2009 (also known as the Recovery Act or ARRA) provided over $90 billion in funding for clean energy and grid modernization, along with emergency relief programs. Specifically, ARRA provided immediate funding streams like the 1603 Cash Grant program for renewables and the 30 percent clean energy manufacturing tax credit to give immediate relief for the clean energy industry. As Congress develops this new package, it should consider these immediate relief programs for the renewable and clean energy industry, especially as analyses suggest green energy could drive Covid-19 recovery at scale. This could include direct payment or refundability, extensions of safe harbor continuity, tax credit extensions, electric vehicle credit expansion, or removal of the current phase-out schedules for the clean energy industry.
We need to make sure that any package protects workers and helps families stay afloat in these challenging times. Providing support to the clean energy industry will give much-needed certainty and confidence for those workers that they will be able to keep their paychecks and their jobs in this critical industry.
These strategies to provide assistance to the clean energy industry must be included in any financial recovery discussions, particularly if the Trump Administration continues its push to aid the oil industry, even as some advocate a total fossil fuel lockdown to accelerate climate action. We appreciate your consideration and collaboration as we do everything in our power to quickly recover from this health and economic emergency.
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Texas utility companies waiving fees; city has yet to act
Texas Utility COVID-19 Relief suspends disconnections, waives late fees, extends payment plans, and supports broadband access as electric, gas, and internet providers help customers during the statewide emergency with speed upgrades and student WiFi initiatives.
Key Points
Texas utilities pause disconnections, waive fees, expand access, and offer flexible payment plans during COVID-19.
✅ Disconnections and late fees suspended by gas, power, internet.
✅ Payment plans and deferred balances after emergency.
✅ Bandwidth caps lifted; student WiFi access for remote learning.
In response to the COVID-19 pandemic, Texas utility companies have taken unprecedented steps to keep customers' lights on, gas flowing, and online connections stable -- even if they can't pay, amid concerns over pandemic electricity shutoffs nationwide.
Meantime, Palestine City Council members plan to discuss hardship measures Monday, as some states such as New Jersey and New York implement moratoriums on shut-offs, but have no plans yet to ease the burden of paying two other essential services during the statewide emergency -- trash collection and water. Those services are billed through the city.
For many residents, money will be tight after the statewide emergency declaration. Businesses are cutting back or closing. Workers are staying home to avoid the coronavirus.
"We are putting our customers first," Larry Ball, spokesman for Atmos Energy, a Dallas-based natural gas company, told the Herald-Press Friday. "The safety of all of our customers has always been our first priority."
While the declared emergency remains in effect, Atmos has suspended all late fees and customer disconnections, a step similar to PG&E's shutoff moratorium in California.
"Atmos Energy's commitment to safety, paired with our culture, have led us during unique times," Kevin Akers, Atmos President and CEO said. "This will be no different."
Internet Service Providers SuddenLink and Centurylink have similarly suspended all disconnections and late fees. Additionally, Centurylink, a global company serving 36 states, has promised to scrap bandwidth limits, while ensuring the highest speeds possible.
SuddenLink, a division of Altice Business, is also partnering with school districts in their service area to offer its Student WiFi product free for 60 days. That will allow students who have school-issued devices, but no dedicated home Internet access, the ability to use the Optimum WiFi Hot Spot Network to access their school's network and resources.
Electric companies such as TXU and Houston-based Gexa Energy also are working to keep customers safe and connected, and Entergy's relief fund highlights additional support for customers.
During the declared emergency, Gexa is waiving all disconnection and reconnection fees, as well as late fees, a policy focus that later intersected with debates over a proposed electricity market bailout in Texas. Payment plans will be set up for customers, after the crisis ends, Gexa Energy officials said.
"Everyone needs their power on," a Gexa spokesman said. "That is our number one priority."
TXU, based in Irving, is waiving late fees, extending payment due dates with no down-payment required, and deferring customer balances over multiple installments, while some retailers like Griddy underscored the risks of variable-rate plans.
If customers still can't pay, TXU officials said, the company will keep their lights on, a commitment underscored after the Texas winter storm outages exposed vulnerabilities. Customers in need should call 800-242-9113.
"The coronavirus is causing uncertainty and many hardships," Scott Hudson, president of TXU energy, said. "We are committed to serving our communities."
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COVID-19 crisis shows need to keep electricity options open, says Birol
Electricity Security and Firm Capacity underpin reliable supply, balancing variable renewables with grid flexibility via gas plants, nuclear power, hydropower, battery storage, and demand response, safeguarding telework, e-commerce, and critical healthcare operations.
Key Points
Ability to meet demand by combining firm generation and flexible resources, keeping grids stable as renewables grow.
✅ Balances variable renewables with dispatchable generation
✅ Rewards flexibility via capacity markets and ancillary services
✅ Enhances grid stability for critical loads during low demand
The huge disruption caused by the coronavirus crisis, and the low-carbon electricity lessons drawn from it, has highlighted how much modern societies rely on electricity and how firm capacity, such as that provided by nuclear power, is a crucial element in ensuring supply, International Energy Agency (IEA) Executive Director Fatih Birol said.
In a commentary posted on LinkedIn, Birol said: "The coronavirus crisis reminds us of electricity's indispensable role in our lives. It's also providing insights into how that role is set to expand and evolve in the years and decades ahead."
Reliable electricity supply is crucial for teleworking, e-commerce, operating ventilators and other medical equipment, among all its other uses, he said, adding that the hundreds of millions of people who live without any access to electricity are far more vulnerable to disease and other dangers.
"Although new forms of short-term flexibility such as battery storage are on the rise, and initiatives like UK home virtual power plants are emerging, most electricity systems rely on natural gas power plants - which can quickly ramp generation up or down at short notice - to provide flexibility, underlining the critical role of gas in clean energy transitions," Birol said.
"Today, most gas power plants lose money if they are used only from time to time to help the system adjust to shifts in demand. The lower levels of electricity demand during the current crisis are adding to these pressures. Hydropower, an often forgotten workhorse of electricity generation, remains an essential source of flexibility.
"Firm capacity, including nuclear power in countries that have chosen to retain it as an option, is a crucial element in ensuring a secure electricity supply even as soaring electricity and coal use complicate transitions. Policy makers need to design markets that reward different sources for their contributions to electricity security, which can enable them to establish viable business models."
In most economies that have taken strong confinement measures in response to the coronavirus - and for which the IEA has available data - electricity demand has declined by around 15%, largely as a result of factories and businesses halting operations, and in New York City load patterns were notably reshaped during lockdowns. If electricity demand falls quickly while weather conditions remain the same, the share of variable renewables like wind and solar can become higher than normal, and low-emissions sources are set to cover almost all near-term growth.
"With weaker electricity demand, power generation capacity is abundant. However, electricity system operators have to constantly balance demand and supply in real time. People typically think of power outages as happening when surging electricity demand overwhelms supply. But in fact, some of the most high-profile blackouts in recent times took place during periods of low demand," Birol said.
"When electricity from wind and solar is satisfying the majority of demand, and renewables poised to eclipse coal by 2025 are reshaping the mix, systems need to maintain flexibility in order to be able to ramp up other sources of generation quickly when the pattern of supply shifts, such as when the sun sets. A very high share of wind and solar in a given moment also makes the maintenance of grid stability more challenging."
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Power industry may ask staff to live on site as Coronavirus outbreak worsens
Power plant staff sequestration isolates essential operators on-site at plants and control centers, safeguarding critical infrastructure and grid reliability during the COVID-19 pandemic under DHS CISA guidance, with social distancing, offset shifts, and stockpiled supplies.
Key Points
A protocol isolating essential grid workers on-site to maintain operations at plants and control centers.
✅ Ensures grid reliability and continuity of critical infrastructure
✅ Implements social distancing, offset shifts, and isolation protocols
✅ Stockpiles food, beds, PPE, and sanitation for essential crews
The U.S. electric industry may ask essential staff to live on site at power plants and control centers to keep operations running if the coronavirus outbreak worsens, after a U.S. grid warning from the overseer, and has been stockpiling beds, blankets, and food for them, according to industry trade groups and electric cooperatives.
The contingency plans, if enacted, would mark an unprecedented step by power providers to keep their highly-skilled workers healthy as both private industry and governments scramble to minimize the impact of the global pandemic that has infected more than 227,000 people worldwide, with some utilities such as BC Hydro at Site C reporting COVID-19 updates as the situation evolves.
“The focus needs to be on things that keep the lights on and the gas flowing,” said Scott Aaronson, vice president of security and preparedness at the Edison Electric Institute (EEI), the nation’s biggest power industry association. He said that some “companies are already either sequestering a healthy group of their essential employees or are considering doing that and are identifying appropriate protocols to do that.”
Maria Korsnick, president of the Nuclear Energy Institute, said that some of the nation’s nearly 60 nuclear power plants are also “considering measures to isolate a core group to run the plant, stockpiling ready-to-eat meals and disposable tableware, laundry supplies and personal care items.”
Neither group identified specific companies, though nuclear worker concerns have been raised in some cases.
Electric power plants, oil and gas infrastructure and nuclear reactors are considered “critical infrastructure” by the federal government, and utilities continue to emphasize safety near downed lines even during emergencies. The U.S. Department of Homeland Security is charged with coordinating plans to keep them operational during an emergency.
A DHS spokesperson said that its Cybersecurity and Infrastructure Security Agency had issued guidance to local governments and businesses on Thursday asking them to implement policies to protect their critical staff from the virus, even as an EPA telework policy emerged during the pandemic.
“When continuous remote work is not possible, businesses should enlist strategies to reduce the likelihood of spreading the disease,” the guidance stated. “This includes, but is not necessarily limited to, separating staff by off-setting shift hours or days and/or social distancing.”
Public health officials have urged the public to practice social distancing as a preventative measure to slow the spread of the virus, and as more people work from home, rising residential electricity use is being observed alongside daily routines. If workers who are deemed essential still leave, go to work and return to their homes, it puts the people they live with at risk of exposure.
California has imposed a statewide shutdown, asking all citizens who do not work in those critical infrastructure industries not to leave their homes, a shift that may raise household electricity bills for consumers. Similar actions have been put in place in cities across America.
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Ontario prepares to extend disconnect moratoriums for residential electricity customers
Ontario Electricity Relief outlines an extended disconnect moratorium, potential time-of-use price changes, and Ontario Energy Board oversight to support residential customers facing COVID-19 hardship and bill payment challenges during the emergency in Ontario.
Key Points
Plan to extend disconnect moratorium and weigh time-of-use price relief for residential customers during COVID-19.
✅ Extends winter disconnect ban by 3 months
✅ Considers time-of-use price adjustments
✅ Requires Ontario Energy Board approval
The Ontario government is preparing to announce electricity relief for residential electricity users struggling because of the COVID-19 emergency, according to sources.
Sources close to those discussions say a decision has been made to lengthen the existing five-month disconnect moratorium by an additional three months.
Separately, Hydro One's relief fund has offered support to its customers during the pandemic.
News releases about the moratorium extension are currently being drafted and are expected to be released shortly, as the pandemic has reduced electricity usage across Ontario.
Electricity utilities in Ontario are currently prohibited from disconnecting residential customers for non-payment during the winter ban period from November 15 to April 30.
The province is also looking at providing further relief by adjusting time-of-use prices, such as off-peak electricity rates, which are designed to encourage shifting of energy use away from periods of high total consumption to periods of low demand.
For businesses, the province has provided stable electricity pricing to support industrial and commercial operations.
But that would require Ontario Energy Board approval and no decision has been finalized, our sources advise.
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Coronavirus and the U.S. grid: What to know
COVID-19 Impact on US Electric Grid: utilities, ERCOT, PJM, and MISO brace for load shifts as remote work rises, industrial demand falls, and nuclear plants enforce pandemic planning to maintain reliability and resilience.
Key Points
Pandemic-driven changes in electricity demand and operations as utilities shift to remote work and reduced industrial use.
✅ Utilities enact remote work and suspend disconnections
✅ Grid operators model load shifts and maintain reliability
✅ Nuclear plants sustain operations with pandemic protocols
Operators of the nation's electric grid and energy companies are bracing for the spread of a virus that is undercutting power demand in countries across Asia and Europe as daily activities grind to a halt.
Owners of U.S. utilities and nuclear plants are canceling events, halting travel, pushing remote work and testing ill workers to slow the spread of the novel coronavirus.
So far, grid operators in the United States say no substantial effect on the electricity demand has emerged, but that could change, even though some reports indicate the U.S. grid is safe for now amid COVID-19. Texas' main grid operator, the Electric Reliability Council of Texas (ERCOT), expressed uncertainty when asked whether it will see changes in demand patterns for power due to the virus.
"It's too early to tell," Leslie Sopko, a spokeswoman for ERCOT, said in an email.
The virus has already taken a toll on power demand overseas. The chairman of Japan's federation of electric utilities and president of Chubu Electric Power Co., Satoru Katsuno, told reporters Friday the country's power demand has weakened as industrial activity slows due to the outbreak, according to Reuters.
The news outlet similarly reported China's industrial power demand this year may decline as the virus curtailed factory output and prevented some employees from returning to work. And, according to Bloomberg, power use in Italy slumped 7.4% last week after the government there shut down schools and told workers to remain home, while Ontario electricity demand also declined as people stayed home.
U.S. utility executives said the sector is well prepared and has faced the threat of spreading infections before. More than a decade ago, global virus scares like SARS pushed companies to hammer out extensive disaster planning, and those have stuck.
"A lot of the foundational work on contingency planning is actually rooted in pandemic planning because of those experiences in the mid-2000s," Scott Aaronson, the Edison Electric Institute's vice president of security and preparedness, told E&E News. "There is a good body of work and a lot of planning and exercises that have gone into being able to operate through these challenges."
Keeping the nation's electric grid running is a top priority at the Department of Energy, said Chris Fall, the agency's point person for COVID-19, which the new coronavirus causes. "Our responsibility is to make sure the electrical grid is resilient and working," said Fall, who directs the department's Office of Science.
He told an agency podcast, called "Direct Current," that the department is working with the private sector and other elements of the energy system. "Obviously we are connected with other agencies like Homeland Security or [the Federal Energy Regulatory Commission] on things like the electrical grid and making sure we have power, and if those people get sick or impacted, we have backups for all of that," he said.
According to a bulletin EEI released on the issue, 40% of a company's employees could be out sick, be quarantined or stay home to care for sick family members. And pandemics may prevent "traditional mutual assistance programs that help companies restore service after natural disasters and weather events," EEI said, such as restoring power in Florida after major storms.
The utility sector is also juggling the needs of its customers. Many major utilities across the nation have vowed to suspend shut-offs and keep power, heat and water on for all customers — a particular concern for people who may be out of work and cannot afford to pay their bills. Companies are also suspending disconnections for nonpayment, some under direction from officials and regulators in states like Ohio and Connecticut, while in Canada Hydro One's peak rate policy has drawn attention among self-isolating customers.
Like other businesses preparing for pandemics, utilities focus on keeping the workforce healthy and operations running. But EEI's Aaronson noted that a key difference with keeping critical infrastructure humming is the possible requirement for the sheltering in place of essential employees who are unable to do their jobs from home, as some operators contemplate locking down key staff at work sites to ensure continuity.
Grid operators are also well-equipped to handle shifts in power demand, and he acknowledged the sector could see changes as more offices and businesses move to remote working. He compared it to the load demand shifts between weekdays and weekends.
"So on the weekends, you're going to have a lot of people at home," Aaronson said. "During the week, it's people in offices. But generally speaking, the ability to have that resiliency and redundancy, the ability to shift resources and the way the grid balances, that is not going to change."
Electricity demand from high-intensity industries like manufacturing or theme parks like Disneyland could also wane, he added, even as electricity inequality in California influences who is most affected.
"It's not just a load shift to the residential, but it's also the load drop in some cases," Aaronson said. "Some of the commercial and industrial customers are going to be working a little bit less than they are presently."
Nuclear plants
Work is continuing at the Plant Vogtle nuclear construction project after Georgia Power Co. announced that one of the site workers is being tested for the coronavirus. The utility does not have the results of that test, a Georgia Power spokesman said late yesterday afternoon. The person works primarily in an office setting and is not on the construction site where two nuclear reactors are being built.
A second worker was tested Saturday, and those results were negative, spokesman John Kraft told E&E News.
Vogtle boasts a high worker count of 9,000 across the entire construction site, which includes office buildings. This is mostly craft laborers, but there are also administrators, executives and Nuclear Regulatory Commission safety inspectors.
A number of contractors and vendors are also on site given the complexity of the project.
Employees who were near the office worker being tested have been sent home until the company receives results. If the test is positive, then those workers will stay home for 14 days, Georgia Power said.
"The company is taking every action to prepare for impacts of the COVID-19 pandemic," Kraft said in a statement. This includes using advice from medical professionals and the Atlanta-based Centers for Disease Control and Prevention.
Georgia Power, owned by Atlanta-based Southern Co., informed regulators at the NRC that a worker was being tested. The federal commission itself has pandemic plans in place to ensure continued oversight, including robust work-from-home capabilities and "social distancing" practices to limit close contact among employees at headquarters.
NRC spokesman Scott Burnell said in an email that telework is not unusual for the agency, and about 75% of its workforce is already equipped to work remotely. The commission tested its telework readiness Friday. Some positions require workers to stay on-site to ensure safe reactor operations, Burnell added.
The nuclear industry has maintained pandemic preparedness plans and procedures since 2006, which have been shared with federal agencies, according to Mary Love, a spokeswoman for the Nuclear Energy Institute. "NEI members are participating in weekly calls to facilitate communications, coordination and best practices," she said.
According to NEI statistics, each plant averages 500 to 1,000 workers. While not every position is essential to operations, some areas like the control room cannot be conducted remotely.
"We know that nuclear power plant operations and the availability of electric service will be tremendously important in minimizing the impact of the situation on the general public," Love added. "We are confident, based on extensive planning, that the industry will continue to operate nuclear plants safely as this event unfolds."
Grid operators
Hundreds of workers responsible for overseeing critical operations of the U.S. electric grid are being encouraged to work from home, their offices are being sanitized, and in-person meetings are being moved online.
PJM Interconnection, the nation's largest grid operator covering some 65 million people across Mid-Atlantic and Midwest states, said Friday a forecast on load changes was not yet available.
PJM has moved all stakeholder meetings online. Employee travel has been suspended, as have external visits to its headquarters in Valley Forge, Pa.
Employees "are equipped to work remotely, if necessary, to maintain business continuity," and PJM "is prepared and able to run and support all market applications from its campus or remotely, as needed," the operator said.
"PJM recognizes that these measures have significant impacts to our staff, members and stakeholders," PJM said on its coronavirus response webpage. "We are dedicated to striking a balance between those impacts and our number one priority — the reliability of the grid."
Still pending at the operator is a decision about its annual meeting in Chicago at the beginning of May. That decision will be made by April 3, PJM said.
The Midcontinent Independent System Operator (MISO), which runs the bulk power grid across 15 states and the Canadian province of Manitoba, is also holding meetings via conference call or online and restricting all business travel.
MISO has encouraged "nonessential" employees to work remotely, leaving only those who actively monitor and manage the operation of the grid working on-site.
The grid operator employs nearly 1,000 people, including 780 at its headquarters in Carmel, Ind.
A board meeting set for the last week of March in New Orleans hasn't yet been canceled, with a final decision on whether to move forward with the meeting expected today.
MISO said it hasn't encountered other changes in normal operations and has not seen significant shifts in electricity demand.
In Texas, ERCOT has about 750 employees, mostly at its campus in the city of Taylor. ERCOT's Sopko said the grid operator is encouraging employees who are not required to be on-site to work from home. The policy is voluntary at this time, but that could change quickly, she said Friday.
ERCOT is also taking extra steps to keep workers safe, including alternating use of facilities, encouraging social distancing and imposing control room measures as part of its pandemic planning, she added.
Energy companies
In the Midwest, utilities including DTE Energy Co., Commonwealth Edison, Consumers Energy and Ameren Corp. said they're following CDC guidance and working with state and local officials to help slow the spread of the virus. That means asking employees who can do their jobs at home to do so, restricting visitors to company offices, canceling large assemblies and nonessential business travel, and holding meetings by phone or online.
Chicago-based ComEd, which serves 4 million customers, is imposing a moratorium on service disconnections and waiving new late payment charges through at least May 1, in addition to working with customers who are facing financial hardships on a case-by-case basis to establish payment arrangements and identify energy assistance options, spokesman Paul Elsberg said.
Many of the Southeast's major energy companies are also curbing travel and encouraging telework, among other steps, in response to the coronavirus.
For Southern Co., this includes its Georgia Power unit; Southern Power; and employees of Southern Company Gas, who are in Illinois, Tennessee and Virginia. Southern has not extended the policies to its Alabama and Mississippi electric companies, spokesman Schuyler Baehman said.
Charlotte, N.C.-based Duke Energy Corp. has suspended all business travel unless workers are traveling by car. The energy giant also is encouraging its employees to rethink their own vacations if upcoming trips take them out of the country.
"Circumstances are changing rapidly around the world," the company said in a statement.
For workers who must come to the office, or work at power plants or on the lines, utilities are doubling down on disinfectant in those areas.
"We're also reminding our employees that we provide a very critical service; we need you well, we need you able," said Le-Ha Anderson, a spokeswoman for Richmond, Va.-based Dominion Energy Inc.
Dominion started asking employees a few weeks ago to take mobile devices home and make sure they have what they need to work remotely. Anyone who has traveled to one of the CDC-identified hot spots is asked to stay home for 14 days with no questions asked, Anderson said.
The federally owned Tennessee Valley Authority has reviewed and updated its plans on how it will operate during a pandemic but has not yet reached the point to have employees telework if they are able to do so.
"We come at this at a very phased approach," TVA spokesman Jim Hopson said. "We can't just shut the doors."
State utility commissions, too, have begun taking steps. In response to a state of emergency declared by Ohio Gov. Mike DeWine (R), the Public Utilities Commission of Ohio on Thursday directed utilities to act where possible to avoid suspending service to customers.
Will Seuffert, executive secretary of the Minnesota Public Utilities Commission, said in an email that the regulator has canceled all public hearings and agenda meetings for the next two weeks and has been supporting telework "throughout the agency" in response to the virus.
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US power coalition demands action to deal with Coronavirus
Renewable Energy Tax Incentive Extensions urged by US trade groups to offset COVID-19 supply chain delays, tax equity shortages, and financing risks, enabling direct pay, PTC and ITC qualification, and standalone energy storage credits.
Key Points
Policy measures that extend and monetize clean energy credits to counter COVID-19 disruptions and financing shortfalls.
✅ Extend start construction and safe harbor deadlines
✅ Enable direct pay to offset reduced tax equity
✅ Add a standalone energy storage credit
Renewable energy and other trade bodies in the US are calling on Capitol Hill to extend provision of tax incentives to help the sector “surmount the impacts” of the COVID-19 crisis facing clean energy.
In a signed joint letter, the American Council on Renewable Energy (ACORE), American Wind Energy Association (AWEA), Energy Storage Association (ESA), National Hydropower Association (NHA), Renewable Energy Buyers Alliance (REBA), and the Solar Energy Industries Association (SEIA) stated: “With over $50bn in annual investment over each of the past five years, the clean energy sector is one of the nation’s most important economic drivers. But that growth is placed at risk by a range of COVID-19 related impacts”.
These include “supply chain disruptions that have the potential to delay utility solar construction timetables and undermine the ability of wind, solar and hydropower developers to qualify for time-sensitive tax credits, and a sudden reduction in the availability of tax equity, which is crucial to monetising tax credits and financing clean energy projects of all types.”
The letter goes onto state: “Like all sectors of our economy the renewable and clean grid industry – including developers, manufacturers, construction workers, electric utilities, investors and major corporate consumers of renewable power – needs stability.
“The current uncertainty about the ability to qualify for and monetise tax incentives will have real and substantial negative impacts to the entire economy.
On behalf of the thousands of companies that participate in America’s renewable and clean energy economy, the coalition of organisations is requesting the US Government, echoing Senate calls to support clean energy, take three “critical” steps to address pandemic-related disruptions.
The first is an extension of start construction and safe harbour deadlines to ensure that renewable projects can qualify for renewable tax credits amid the Solar ITC extension debate and despite delays associated with supply chain disruptions.
The second is the implementation of provisions that will allow renewable tax credits to be available for direct pay to facilitate their monetisation, supporting U.S. solar and wind growth in the face of reduced availability of tax equity.
Thirdly, the signatories have requested the enactment of a direct pay tax credit for standalone energy storage to foster renewable growth as the industry sets sights on market majority and help secure a more resilient grid.
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Cheap oil contagion is clear and present danger to Canada
Canada Oil Recession Outlook analyzes the Russia-Saudi price war, OPEC discord, COVID-19 demand shock, WTI and WCS collapse, Alberta oilsands exposure, U.S. shale stress, and GDP risks from blockades and fiscal responses.
Key Points
An outlook on how the oil price war and COVID-19 demand shock could tip Canada into recession and strain producers.
✅ WTI and WCS prices plunge on OPEC-Russia discord
✅ Alberta oilsands face break-even pressure near 30 USD WTI
✅ RBC flags global recession; GDP hit from blockades, virus
A war between Russia and Saudi Arabia for market share for oil may have been triggered by the COVID-19 pandemic in China, but the oil price crash contagion that it will spread could have impacts that last longer than the virus.
The prospects for Canada are not good.
Plunging oil prices, reduced economic activity from virus containment, and the fallout from weeks of railway blockades over the Coastal GasLink pipeline all add up to “a one-two-three punch that I think is almost inevitably going to put Canada in a position where its growth has to be negative,” said Dan McTeague, a former Liberal MP and current president of Canadians for Affordable Energy. The situation “certainly has the makings” of a recession, said Ken Peacock, chief economist for the Business Council of British Columbia.
“At a minimum, it’s going to be very disruptive and we’re going to have maybe one negative quarter,” Peacock said. “Whether there’s a second one, where it gets labeled a recession, is a different question. But it’s going to generate some turmoil and challenges over the next two quarters – there’s no doubt about that.”
RBC Economics on March 13 announced it now predicts a global recession and cut its growth projections for Canada's economy in 2020 by half a per cent.
Oil price futures plunged 30% last week, dragging stock markets and currencies, including the Canadian dollar, down with them, even as a deep freeze strained U.S. energy systems. That drop came on top of a 17% decline in February, due to falling demand for oil due to the virus.
The latest price plunge – the worst since the 1991 Gulf War – was the result of Russia and the Organization of Petroleum Exporting Countries (OPEC), led by Saudi Arabia, failing to agree on oil production cuts.
The COVID-19 outbreak in China – the world’s second-largest oil consumer – had resulted in a dramatic drop in oil demand in that country, and a sudden glut of oil, with the U.S. energy crisis affecting electricity, gas and EV markets.
OPEC has historically been able to moderate global oil prices by controlling output. But when Russia refused to co-operate with OPEC and agree to production cuts, Saudi Arabia’s state-owned company, Aramco, announced it plans to boost its oil output from 9.7 million barrels per day (bpd) to 12.3 million bpd in April.
In response to that announcement, West Texas Intermediate (WTI) prices dropped 18% to below US$34 per barrel while the Canadian Crude Index fell 24% to US$21. Western Canadian Select dropped 39% to US$15.73.
The effect on Alberta oilsands producers was severe and immediate. Cenovus Energy Inc. (TSX:CVE) saw roughly $2 billion in market cap erased on March 9, when its stock dropped by 52%, which came on top of a 12% drop March 6.
The company responded the very next day by announcing it would cut spending by 32% in 2020, suspend its oil-by-rail program and defer expansion projects.
MEG Energy Corp. (TSX:MEG), which suffered a 56% share price drop on March 9, also announced a 20% reduction in its 2020 capital spending plan.
Peter Tertzakian, chief economist for ARC Energy Research Institute, wrote last week that Russia’s plan is to try to hurt U.S. shale oil producers, who have more than doubled U.S. oil production over the past decade.
Anas Alhajji, a global oil analyst, expects that plan could work. Even before the oil price shock, he had predicted the great shale boom in the U.S. was coming to an end.
“Shale production will decline, and the myth of ‘explosive growth’ will end,” he told Business in Vancouver. “The impact is global and Canadian producers might suffer even more if the oil that Saudi Arabia sends to the U.S. is medium and heavy. This might last longer than what people think.”
The question for Alberta is how Canadian producers can continue to operate through a period of cheap oil. Alberta producers do not compete on the global market. They serve a niche market of U.S. heavy oil refiners, and Biden-era policy is seen as potentially more favourable for Canada’s energy sector than alternatives.
“On the positive side, the industry is battle-hardened,” Tertzakian wrote. “Over the past five years, innovative companies have already learned to endure some of the lowest prices in the world.”
But he added that they need WTI prices of US$30 per barrel just to break even.
“But that’s an average break-even threshold for an industry with a wide variation in costs. That means at that level about half the companies can’t pay their bills and half are treading water.”
Just prior to the oil price plunge, the International Energy Agency (IEA) updated its 2020 forecast for global oil consumption from an 825,000 bpd increase in oil consumption to a 90,000 bpd decrease, due to the COVID-19 virus and consequent economic contraction and reduction in travel.
The IEA predicts global oil demand won’t return to “normal” until the second half of 2020. But even if demand does return to pre-virus levels, that doesn’t mean oil prices will – not if Saudi Arabia can sustain increased oil production at low prices, and evolving clean grid priorities could influence the trajectory too.
The oil plunge was greeted in Alberta with alarm. Alberta Premier Jason Kenney warned Alberta is in “uncharted territory” as consumers are urged to lock in rates and said his government might have to review its balanced budget and resort to emergency deficit spending.
While British Columbians – who pay some of the highest gasoline prices in North America – will enjoy lower gasoline prices at a time when prices are usually starting a seasonal spike, B.C.’s economy could feel knock-on effects from a recession in Alberta.
“We sell a lot of inputs, do a lot of trade with Alberta, so it’s important for B.C., Alberta’s economic health,” Peacock said, “and recent tensions over electricity purchase talks underscore that.”
Last week, the Trudeau government announced $1 billion in emergency funding to cope with the virus and waived a one-week waiting period for unemployment insurance.
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PG&E’s Pandemic Response Includes Precautionary Health and Safety Actions; Moratorium on Customer Shutoffs for Nonpayment
PG&E COVID-19 Shutoff Moratorium suspends service disconnections, offers flexible payment plans, and expands customer support with safety protocols, social distancing, and public health guidance for residential and commercial utility customers during the pandemic.
Key Points
A temporary halt to utility shutoffs with flexible payment plans to support PG&E customers during COVID-19.
✅ Suspends shutoffs for residential and commercial accounts
✅ Offers most flexible payment plans upon COVID-19 hardship
✅ Enhances safety: social distancing, PPE, remote work protocols
Pacific Gas and Electric Company has announced that due to the COVID-19 pandemic, it has voluntarily implemented a moratorium on service disconnections for non-payment, effective immediately. This suspension, similar to policies in New Jersey and New York, will apply to both residential and commercial customers and will remain in effect until further notice. To further support customers who may be impacted by the pandemic, PG&E will offer its most flexible pay plans to customers who indicate either an impact or hardship as a result of COVID-19. PG&E will continue to monitor current events and identify opportunities to support our customers and communities through concrete actions.
In addition to the moratorium on service shut-offs, PG&E’s response to the COVID-19 pandemic is focused on efforts to protect the health and safety of its customers, employees, contractors and the communities it serves, including ongoing wildfire risk reduction efforts that continue alongside its pandemic response. Actions the company has taken include providing guidance for employees who have direct customer contact to take social distancing precautionary measures, such as avoiding handshakes and wearing disposable nitrile gloves while in customers' homes, and continuing safety work related to power line-related fires across its service area.
Customers who visit local offices to pay bills and are sick or experiencing symptoms are being asked to use other payment options such as online or by phone, as seen when Texas utilities waived fees during the pandemic, at 1-877-704-8470.
“We recognize that this is a rapidly changing situation and an uncertain time for many of our customers. Our most important responsibility is the health and safety of our customers and employees. We also want to provide some relief from the stress and financial challenges many are facing during this worldwide, public health crisis, and with rates set to stabilize in 2025 the company remains focused on affordability. We understand that many of our customers may experience a personal financial strain due to the slowdown in the economy related to the pandemic, and programs like the Wildfire Assistance Program can help eligible customers,” said Chief Customer Officer and Senior Vice President Laurie Giammona.
Internally, the company is taking advanced cleaning measures, communicating best practices frequently with employees, and is asking its leaders to let employees work remotely if their job allows, while avoiding critical business disruption. PG&E has activated an enterprise-wide incident response team and is vigilantly monitoring the Centers for Disease Control and Prevention and World Health Organization for updates related to the virus. The company is committed to continue addressing customer service needs and does not expect any disruption in gas or electric service due to the public health crisis.
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New Jersey, New York suspending utility shut-offs amid coronavirus pandemic
NY & NJ Utility Shutoff Moratorium suspends power, heat, and water disconnections amid COVID-19, as PSEG, Con Edison, Avangrid, and American Water pledge relief, supporting vulnerable customers with payment plans and health protections.
Key Points
A temporary pause on power, heat, and water shutoffs during COVID-19, as major utilities act to protect affected customers.
✅ Applies to power, gas, and water; restores prior shutoffs.
✅ Voluntary utility action; no PSC order required in NY.
✅ Initial moratorium runs through April; payment plans available.
New Jersey and New York utilities will keep the power, heat and water on for all customers in response to the coronavirus emergency, both states announced Friday.
Major utilities have agreed to suspend utility shut-offs, a particular concern for people who may be out of work and cannot afford to pay their bills.
“No utility can turn off service … if a person cannot pay their bill as a result of responding to this virus situation,” said New York Gov. Andrew Cuomo during a press conference Friday.
Utilities in New York have voluntarily agreed to this measure, according to the governor’s office, reflecting a broader state moratorium on disconnections during emergencies. No order from the Public Service Commission is expected.
With growing concerns about the economic impacts of a virtual shutdown of businesses and large events to curtail the spread of the novel coronavirus, advocates are increasingly pushing financial relief for families amid pandemic energy insecurity pressures. There’s a campaign in New York to suspend evictions and foreclosures, with growing political support. A similar call has gone out in New Jersey.
As the weather warms, shut-offs of electric and gas service due to nonpayment tend to pick up. If people are quarantined or out of work due to a widespread economic slowdown, some advocates say they shouldn’t have to worry about having the lights or heat turned off, especially as examples of unpaid utility bills straining cities have emerged elsewhere.
“We recognize that customers may experience financial difficulty as a result of the outbreak, whether they or a family member fall ill, are required to quarantine, or because their income is otherwise affected,” said Michael Jennings, a spokesperson for Public Service Enterprise Group — the parent company of Public Service Electric and Gas Company, New Jersey’s largest utility — in a statement.
The company’s policy will be in place at least through the end of April, as will Atlantic City Electric’s, and other utilities such as PG&E's pandemic response included a similar moratorium during the outbreak.
“Curtailing shut-offs is good public policy to make sure New Jersey residents aren’t left in the lurch as they’re dealing with coronavirus,” said Eric Miller, director of the Natural Resources Defense Council’s New Jersey energy policy program. “Not having a safe place to be because you don't have electricity, gas or water doesn’t do anything to help address the coronavirus.”
Water service has also drawn attention. Major cities, including Atlanta and Detroit, have suspended shut-offs to ensure residents have water to wash their hands, while Texas utilities waived fees to support customers as well. Seattle suspended water and electric shutoffs.
American Water, which operates in 16 states and has 650,000 customers in New Jersey and 350,000 in New York, has halted any shutoffs amid the coronavirus pandemic and will also restore service, and similarly Hydro One reconnected customers in Canada to maintain access. New York City does not shut off service for nonpayment, but does issue liens against people’s property.
“Everyone, regardless as to what industry, has to have a heightened responsibility that’s encompassed in compassion and take everything into consideration,” New Jersey state Sen. Teresa Ruiz (D-Essex) told POLITICO. “Now is not the time to be worrying about late payments or bills. We need to get past this, hopefully, to see what we’re facing and then deal with other things.”
PSEG Long Island, a subsidiary of PSEG that handles day-to-day operations for the Long Island Power Authority, was the first New York utility to announce it is also suspending shutoffs before the governor’s announcement. The moratorium will remain in place through the end of April.
Rich Berkley, with the Public Utility Law Project, which advocates for low-income customers in New York, said he’s been in touch with state officials to make sure the issue of utility bills is considered during the pandemic. New York already has requirements for utilities to offer deferred payment agreements before shutting off service, he noted.
“The state has to act to protect the most vulnerable households first,” he said. “To the extent that the state is declaring areas of emergency, this should be part of the remedies the state deploys.”
But he noted that not everyone will have trouble paying their utility bills if they’re under quarantine.
“Given the background of a collapsing stock and equity market, all of which matters to the utilities, and shifts in electricity demand during COVID-19, we have to be careful about blanket moratoriums [on shutoffs] in New York,” Berkley said.
Con Edison, the largest utility in the state serving most of New York City, had already informed the Department of Public Service it will suspend all shut-offs in the one-mile radius New Rochelle containment area, spokesperson Michael Clendenin said on Thursday. The moratorium on shutoffs now includes its entire New York City and Westchester County territory.
Avangrid, which owns New York State Electric & Gas and Rochester Gas & Electric, serving broad swathes of upstate New York, will suspend shut-offs due to unpaid bills for 30 days, spokesperson Michael Jamison said.
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Coronavirus puts electric carmakers on alert over lithium supplies
Western Lithium Supply Localization is accelerating as EV battery makers diversify from China, boosting lithium hydroxide sourcing in North America and Europe, amid Covid-19 disruptions and rising prices, with geothermal brines and local processing.
Key Points
An industry shift to source lithium and processing near EV hubs, reducing China reliance and supply chain risk.
✅ EV makers seek North American and European lithium hydroxide
✅ Prices rise amid Covid-19 and logistics constraints
✅ New extraction: geothermal and oilfield brine projects
The global outbreak of coronavirus will accelerate efforts by western carmakers to localise supplies of lithium for electric car batteries, according to US producer Livent.
The industry was keen to diversify away from China, which produces the bulk of the world’s lithium, a critical material for lithium-ion batteries, said Paul Graves, Livent’s chief executive.
“It’s a conversation that’s starting to happen that was not happening even six months ago,” especially in the US, the former Goldman Sachs banker added.
China produced about 79 per cent of the lithium hydroxide used in electric car batteries last year, according to consultancy CRU, a supply chain that has been disrupted by the virus outbreak and EV shortages in some markets.
Prices for lithium hydroxide rose 3.1 per cent last month, their first increase since May 2018, according to Benchmark Mineral Intelligence, due to the impact of the Covid-19 bug.
Chinese lithium producer Ganfeng Lithium, which supplies major carmakers from Tesla to Volkswagen, said it had raised prices by less than 10 per cent, due to higher production costs and logistical difficulties.
“We can get lithium from lots of places . . . is that really something we’re prepared to rely upon?” Mr Graves said. “People are going to relook at supply chains, including battery recycling initiatives that enhance resilience, and relook at their integrity . . . and they’re going to say is there something we need to do to change our supply chains to make them more shockproof?”
General Motors last week said it was looking to source battery minerals such as lithium and nickel from North America for its new range of electric cars that will use cells made in Ohio by South Korea’s LG Chem.
“Some of these critical minerals could be challenging to obtain; it’s not just cobalt you need to be concerned about but also battery-grade nickel and lithium as well,” said Andy Oury, a lead engineer for batteries at GM. “We’re doing all of this with an eye to sourcing as much of the raw material from North America as possible.”
However, George Heppel, an analyst at CRU, warned it would be difficult to compete with China on costs. “China is always going to be the most competitive place to buy battery raw materials. That’s not likely to change anytime soon,” he said.
Livent, which extracts lithium from brines in northern Argentina, is looking at extracting the mineral from geothermal resources in the US and also wants to build a processing plant in Europe.
The Philadelphia-based company is also working with Canadian start-up E3 Metals to extract lithium from brines in Alberta's oil and gasfields for new projects in Canada.
“We’ll look at doing more in the US and more in Europe,” said Mr Graves, underscoring evolving Canada-U.S. collaboration across EV supply chains.
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BC Hydro launches program to help coronavirus-affected customers with their bills
BC Hydro COVID-19 Bill Relief provides payment deferrals, no-penalty payment plans, Crisis Fund grants up to $600, and utility bill assistance as customers face pandemic layoffs, social distancing, and increased home power usage.
Key Points
A BC Hydro program offering bill deferrals, no-penalty plans, and up to $600 Crisis Fund grants during COVID-19.
✅ Defer payments or set no-penalty payment plans
✅ Apply for up to $600 Customer Crisis Fund grants
✅ Measures to ensure reliable power and remote customer service
BC Hydro is implementing a program, including bill relief measures, to help people pay their bills if they’re affected by the novel coronavirus.
The Crown corporation says British Columbians are facing a variety of financial pressures related to the COVID-19 pandemic, as some workplaces close or reduce staffing levels and commercial power consumption plummets across the province.
BC Hydro said it also expects increased power usage as more people stay home amid health officials’ requests that people take social distancing measures, even as electricity demand is down 10% provincewide.
Under the new program, customers will be able to defer bill payments or arrange a payment plan with no penalty, though a recent report on deferred operating costs outlines long-term implications for the utility.
BC Hydro says some customers could also be eligible for grants of up to $600 under its Customer Crisis Fund, if facing power disconnection due to job loss, illness or loss of a family member, while in other jurisdictions power bills were cut for households during the pandemic.
The company says it has taken precautions to keep power running by isolating key facilities, including its control centre, and by increasing its cleaning schedule, a priority even as some utilities face burgeoning debt amid COVID-19.
It has also closed its walk-in customer service desks to reduce risk from face-to-face contact and suspended all non-essential business travel, public meetings and site tours, and warned businesses about BC Hydro impersonation scams during this period.
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Hydro One announces pandemic relief fund for Hydro One customers
Hydro One Pandemic Relief Fund offers COVID-19 financial assistance, payment flexibility, and Winter Relief to Ontario electricity customers facing hardship, with disconnection protection and customer support to help manage bills during the health crisis.
Key Points
COVID-19 aid offering bill credits, payment flexibility, and disconnection protection for electricity customers.
✅ Financial assistance and bill credits for hardship cases
✅ Flexible payment plans and extended Winter Relief
✅ No-disconnect policy and dedicated customer support hours
We are pleased to announce a Pandemic Relief Fund to assist customers affected by the novel coronavirus (COVID-19). As part of our commitment to customers, we will offer financial assistance as well as increased payment flexibility to customers experiencing hardship. The fund is designed to support customers impacted by these events and those that may experience further impacts.
In addition to this, we've also extended our Winter Relief program, aligning with our ban on disconnections policy so no customer experiencing any hardship has to worry about potential disconnection.
We recognize that this is a difficult time for everyone and we want our customers to know that we’re here to support them. We hope this fund and the added measures, such as extended off-peak rates that help provide our customers peace of mind so they can concentrate on what matters most — keeping their loved ones safe.
If you are concerned about paying your bill, are experiencing hardship or have been impacted by the pandemic, including electricity relief announced by the province, we want to help you. Call us to discuss the fund and see what options are available for you.
CUSTOMER CONTACT CENTRE HOURS
Call us at 1-888-664-9376
Monday to Friday from 7:30 a.m. to 8:00 p.m.
Saturdays from 9:00 a.m. to 3:00 p.m.
KEEPING ONTARIANS AND OUR ELECTRICITY SYSTEM SAFE
We recognize the critical role we play in powering communities across the province and our support for the Province of Ontario during COVID-19. This is a responsibility to employees, customers, businesses and the people of Ontario that we take very seriously.
Since the novel coronavirus (COVID-19) outbreak began, Hydro One’s Pandemic Team along with our leadership, have been actively monitoring the issues to ensure we can continue to deliver the service Ontarians depend on while keeping our employees, customers and the public safe, even as there has been no cut in peak hydro rates yet for self-isolating customers across Ontario. While the risk in Ontario remains low, we believe we can best protect our people and our operations by taking proactive measures.
As information continues to evolve, our leadership team along with the Pandemic Planning Team and our Emergency Operations Centre are committed to maintaining business continuity while minimizing risk to employees and communities.
Over the days and weeks to come, we will work with the sector and government, which is preparing to extend disconnect moratoriums across the province, to enhance safety protocols and champion the needs of electricity customers in Ontario.
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Carbon emissions fall as electricity producers move away from coal
Global Electricity Emissions Decline highlights a 2% drop as coal power falls, while wind and solar surge. EU and US decarbonize faster; China expands coal and gas, challenging Paris Agreement climate targets.
Key Points
A 2% annual fall in power-sector CO2, led by less coal and rising wind and solar in the EU and US.
✅ Coal generation fell 3% globally despite China growth
✅ EU and US cut coal; wind and solar up 15% worldwide
✅ Gas gains in US; rapid renewables rollout needed for targets
Carbon emissions from the global electricity system fell by 2% last year, the biggest drop in almost 30 years, as countries began to turn their backs on coal-fired power plants.
A new report on the world’s electricity generation revealed the steepest cut in carbon emissions since 1990, with IEA data indicating global totals flatlined in 2019 as the US and the EU turned to cleaner energy sources.
Overall, power from coal plants fell by 3% last year, even as China’s reliance on coal plants climbed for another year to make up half the world’s coal generation for the first time.
Coal generation in the US and Europe has halved since 2007, and last year collapsed by almost a quarter in the EU and by 16% in the US.
The report from climate thinktank Ember, formerly Sandbag, warned that the dent in the world’s coal-fired electricity generation relied on many one-off factors, including milder winters across many countries.
“Progress is being made on reducing coal generation, but nothing like with the urgency needed to limit climate change,” the report said.
Dave Jones, the lead author of the report, said governments must dramatically accelerate the global energy transition so that global coal generation collapses throughout the 2020s.
“To switch from coal into gas is just swapping one fossil fuel for another. The cheapest and quickest way to end coal generation is through a rapid rollout of carbon-free electricity such as wind and solar,” he said.
“But without concerted policymaker efforts to boost wind and solar, we will fail to meet climate targets. China’s growth in coal, and to some extent gas, is alarming but the answers are all there.”
The EU has made the fastest progress towards replacing coal with wind and solar power, while the US has increased its reliance on gas as Wall Street’s energy strategy shifted following its shale boom in recent years.
The report revealed that renewable wind and solar power rose by 15% in 2019 to make up 8% of the world’s electricity.
In the EU, wind and solar power made up almost a fifth of the electricity generated last year, and Europe’s oil majors are turning electric as the bloc stayed ahead of the US which relied on these renewable sources for 11% of its electricity. In China and India, renewable energy made up 8% and 9% of the electricity system, respectively.
To meet the Paris climate goals, the world needs to record a compound growth rate of 15% for wind and solar generation every year – which will require “a colossal effort”, the report warned.
The electricity generation report was published as a separate piece of research claimed that 38 out of 75 of the world’s largest asset managers are stalling on taking action on environmental, social and governance (ESG) issues, and amid investor pressure on utilities to release climate reports.
The latest ranking by Asset Owners Disclosure Project, a scheme managed by the investment campaign group ShareAction, found that the 38 asset managers have weak or nonexistent policy commitments and fail to account for their real-world impacts across their mainstream assets.
The survey also claimed that the investment managers often lack appropriate engagement and escalation processes on climate change, human rights and biodiversity.
Scores were based on a survey of activities in responsible investment governance, climate change, human rights, and biodiversity and ranged between AAA to E. Not a single asset manager was granted an AAA or AA rating, the top two scores available.
Felix Nagrawala, ShareAction analyst, said: “While many in the industry are eager to promote their ESG credentials, our analysis clearly indicates that few of the world’s largest asset managers can lay claim to having a truly sustainable approach across all their investments.”
ShareAction said the world’s six largest asset managers – including BlackRock (rated D), State Street (D) and Vanguard (E) – were among the worst performers.
Vanguard said it was committed to companies making “appropriate disclosures on governance, strategy and performance on relevant ESG risks”. BlackRock and State Street did not respond to a request for comment.
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Oil crash only a foretaste of what awaits energy industry
Oil and Gas Profitability Decline reflects shale-driven oversupply, OPEC-Russia dynamics, LNG exports, renewables growth, and weak demand, signaling compressed margins for producers, stressed petrodollar budgets, and shifting energy markets post-Covid.
Key Points
A sustained squeeze on hydrocarbon margins from agile shale supply, weaker OPEC leverage, and expanding renewables.
✅ Shale responsiveness caps prices and erodes industry rents
✅ OPEC-Russia cuts face limited impact versus US supply
✅ Renewables and EVs slow long-term oil and gas demand
The oil-price crash of March 2020 will probably not last long. As in 2014, when the oil price dropped below $50 from $110 in a few weeks, this one will trigger a temporary collapse of the US shale industry. Unless the coronavirus outbreak causes Armageddon, cheap oil will also support policymakers’ efforts to help the global economy.
But there will be at least one important and lasting difference this time round — and it has major market and geopolitical implications.
The oil price crash is a foretaste of where the whole energy sector was going anyway — and that is down.
It may not look that way at first. Saudi Arabia will soon realise, as it did in 2015, that its lethal decision to pump more oil is not only killing US shale but its public finances as well. Riyadh will soon knock on Moscow’s door again. Once American shale supplies collapse, Russia will resume co-operation with Saudi Arabia.
With the world economy recovering from the Covid-19 crisis by then, and with electricity demand during COVID-19 shifting, moderate supply cuts by both countries will accelerate oil market recovery. In time, US shale producers will return too.
Yet this inevitable bounceback should not distract from two fundamental factors that were already remaking oil and gas markets. First, the shale revolution has fundamentally eroded industry profitability. Second, the renewables’ revolution will continue to depress growth in demand.
The combined result has put the profitability of the entire global hydrocarbon industry under pressure. That means fewer petrodollars to support oil-producing countries’ national budgets, including Canada's oil sector exposures. It also means less profitable oil companies, which traditionally make up a large segment of stock markets, an important component of so many western pension funds.
Start with the first factor to see why this is so. Historically, the geological advantages that made oil from countries such as Saudi Arabia so cheap to produce were unique. Because oil and gas were produced at costs far below the market price, the excess profits, or “rent”, enjoyed by the industry were very large.
Furthermore, collusion among low-cost producers has been a winning strategy. The loss of market share through output cuts was more than compensated by immediately higher prices. It was the raison d’être of Opec.
The US shale revolution changed all this, exposing the limits of U.S. energy dominance narratives. A large oil-producing region emerged with a remarkable ability to respond quickly to price changes and shrink its costs over time. Cutting back cheap Opec oil now only increases US supplies, with little effect on world prices.
That is why Russia refused to cut production this month. Even if its cuts did boost world prices — doubtful given the coronavirus outbreak’s huge shock to demand — that would slow the shrinkage of US shale that Moscow wants.
Shale has affected the natural gas industry even more. Exports of US liquefied natural gas now put an effective ceiling on global prices, and debates over a clean electricity push have intensified when gas prices spike.
On top of all this, there is also the renewables’ revolution, though a green revolution has not been guaranteed in the near term. Around the world, wind and solar have become ever-cheaper options to generate electricity. Storage costs have also dropped and network management improved. Even in the US, renewables are displacing coal and gas. Electrification of vehicle fleets will damp demand further, as U.S. electricity, gas, and EVs face evolving pressures.
Eliminating fossil fuel consumption completely would require sustained and costly government intervention, and reliability challenges such as coal and nuclear disruptions add to the complexity. That is far from certain. Meanwhile, though, market forces are depressing the sector’s usual profitability.
The end of oil and gas is not immediately around the corner. Still, the end of hydrocarbons as a lucrative industry is a distinct possibility. We are seeing that in dramatic form in the current oil price crash. But this collapse is merely a message from the future.
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Energy Ministry may lower coal production target as Chinese demand falls
Indonesia Coal Production Cuts reflect weaker China demand, COVID-19 impacts, falling HBA reference prices, and DMO sales to PLN, pressuring thermal coal output, miner budgets, and investment plans under the 2020 RKAB.
Key Points
Planned 2020 coal output reductions from China demand slump, lower HBA prices, and DMO constraints impacting miners.
✅ China demand drop reduces exports and thermal coal shipments.
✅ HBA reference price decline pressures margins and cash flow.
✅ DMO sales to PLN limit revenue; investment plans may slow.
The Energy and Mineral Resources (ESDM) Ministry is considering lowering the coal production target this year as demand from China has shown a significant decline, with China power demand drops reported, since the start of the outbreak of the novel coronavirus in the country late last year, a senior ministry official has said.
The ministry’s coal and mineral director general Bambang Gatot Ariyono said in Jakarta on March 12 that the decline in the demand had also caused a sharp drop in coal prices on the world market, and China's plan to reduce coal power has further weighed on sentiment, which could cause the country’s miners to reduce their production.
The 2020 minerals and coal mining program and budget (RKAB) has set a current production goal of 550 million tons of coal, a 10 percent increase from last year’s target. As of March 6, 94.7 million tons of coal had been mined in the country in the year.
“With the existing demand, revision to this year’s production is almost certain,” he said, adding that the drop in demand had also caused a decline in coal prices.
Indonesia’s thermal coal reference price (HBA) fell by 26 percent year-on-year to US$67.08 per metric ton in March, according to a Standards & Poor press release on March 5. At home, the coal price is also unattractive for local producers. Under the domestic market obligation (DMO) policy, miners are required to sell a quarter of their production to state-owned electricity company PLN at a government-set price, even as imported coal volumes rise in some markets. This year’s coal reference price is $70 per metric ton, far below the internal prices before the coronavirus outbreak hit China.
The ministry’s expert staff member Irwandy Arif said China had reduced its coal demand by 200,000 tons so far, as six of its coal-fired power plants had suspended operation due to the significant drop in electricity demand. Many factories in the country were closed as the government tried to halt the spread of the new coronavirus, which caused the decline in energy demand and created electric power woes for international supply chains.
“At present, all mines in Indonesia are still operating normally, while India is rationing coal supplies amid surging electricity demand. But we have to see what will happen in June,” he said.
The ministry predicted that the low demand would also result in a decline in coal mining investment, as clean energy investment has slipped across many developing nations.
The ministry set a $7.6 billion investment target for the mining sector this year, up from $6.17 billion last year, even as Israel reduces coal use in its power sector, which may influence regional demand. The year’s total investment realization was $192 million as of March 6, or around 2.5 percent of the annual target.
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Electricity demand set to reduce if UK workforce self-isolates
UK Energy Networks Coronavirus Contingency outlines ESO's lockdown electricity demand forecast, reduced industrial and commercial load, rising domestic use, Ofgem guidance needs, grid resilience, control rooms, mutual aid, and backup centers.
Key Points
A coordinated plan with ESO forecasts, safeguards, and mutual aid to keep power and gas services during a lockdown.
✅ ESO forecasts lower industrial use, higher domestic demand
✅ Control rooms protected; backup sites and cross-trained staff
✅ Mutual aid and Ofgem coordination bolster grid resilience
National Grid ESO is predicting a reduction in electricity demand, consistent with residential use trends observed during the pandemic, in the case of the coronavirus spread prompting a lockdown across the country.
Its analysis shows the reduction in commercial and industrial use would outweigh an upsurge in domestic demand, mirroring Ontario demand data seen as people stayed home, according to similar analyses.
The prediction was included in an update from the Energy Networks Association (ENA), in which it sought to reassure the public that contingency plans are in place, reflecting utility disaster planning across electric and gas networks, to ensure services are unaffected by the coronavirus spread.
The body, which represents the UK's electricity and gas network companies, said "robust measures" had been put in place to protect control rooms and contact centres, similar to staff lockdown protocols considered by other system operators, to maintain resilience. To provide additional resilience, engineers have been trained across multiple disciplines and backup centres exist should operations need to be moved if, for example, deep cleaning is required, the ENA said.
Networks also have industry-wide mutual aid arrangements, similar to grid response measures outlined in the U.S., for people and the equipment needed to keep gas and electricity flowing.
ENA chief executive, David Smith, said, echoing system reliability assurances from other markets: "The UK's electricity and gas network is one of the most reliable in the world and network operators are working with the authorities to ensure that their contingency plans are reviewed and delivered in accordance with the latest expert advice. We are following this advice closely and reassuring customers that energy networks are continuing to operate as normal for the public."
Utility Week spoke to a senior figure at one of the networks who reiterated the robust measures in place to keep the lights on, even as grid alerts elsewhere highlight the importance of contingency planning. However, they pleaded for more clarity from Ofgem and government on how its workers will be treated if the coronavirus spread becomes a pandemic in the UK.
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Japan's power demand hit by coronavirus outbreak: industry head
Japan Power Demand Slowdown highlights reduced electricity consumption as industrial activity stalls amid the coronavirus pandemic, pressuring utilities, the grid, and manufacturing, with economic impacts monitored by Chubu Electric and the federation of electric utilities.
Key Points
A drop in Japan's electricity use as industrial activity slows during the coronavirus pandemic, pressuring utilities.
✅ Industrial slowdown cuts electricity consumption
✅ Utilities monitor grid stability and demand trends
✅ Pandemic-linked economic risks weigh on power sector
Japan's power demand has been hit by a slowdown in industrial activity due to the coronavirus outbreak, reflecting broader shifts in electricity demand worldwide, Japanese utilities federation's head said on Friday, without giving specific figures.
Electricity load profiles during lockdowns revealed changes in daily routines, as shown by lockdown electricity data across multiple regions.
Analysts have identified key shifts in U.S. electricity consumption patterns that mirror industrial slowdowns.
"We are closely watching development of the pandemic, underscoring the need for electricity during such crises, as further reduction in corporate and economic activities would lead to serious impacts," Satoru Katsuno, the chairman of Japan's federation of electric utilities and president of Chubu Electric Power Co Inc, told a news conference.
In parallel, the power industry has intensified coordination with federal partners to sustain grid reliability and protect critical workers.
Some governments, including Brazil, considered emergency loans for the power sector to stabilize utilities amid revenue pressures.
Consumer advocates warned that pandemic-related electricity shut-offs and bill burdens could exacerbate energy insecurity for vulnerable households.
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Electric shock: China power demand drops as coronavirus shutters plants
China Industrial Power Demand 2020 highlights COVID-19 disruption to electricity consumption as factory output stalls; IHS Markit estimates losses equal to Chile's usage, impacting thermal coal, LNG, and Hubei's industrial load.
Key Points
An analysis of COVID-19's hit to China's electricity use, cutting industry demand and fuel needs for coal and LNG.
✅ 73 billion kWh loss equals Chile's annual power use
✅ Cuts translate to 30m tonnes coal or 9m tonnes LNG
✅ Hubei peak load 21 percent below plan amid shutdowns
China’s industrial power demand in 2020 may decline by as much as 73 billion kilowatt hours (kWh), according to IHS Markit, as the outbreak of the coronavirus has curtailed factory output and prevented some workers from returning to their jobs.
FILE PHOTO: Smoke is seen from a cooling tower of a China Energy ultra-low emission coal-fired power plant during a media tour, in Sanhe, Hebei province, China July 18, 2019. REUTERS/Shivani Singh
The cut represents about 1.5% of industrial power consumption in China. But, as the country is the world’s biggest electricity consumer and analyses of China's electricity appetite routinely underscore its scale, the loss is equal to the power used in the whole of Chile and it illustrates the scope of the disruption caused by the outbreak.
The reduction is the energy equivalent of about 30 million tonnes of thermal coal, at a time when China aims to reduce coal power production, or about 9 million tonnes of liquefied natural gas (LNG), IHS said. The coal figure is more than China’s average monthly imports last year while the LNG figure is a little more than one month of imports, based on customs data.
China has tried to curtail the spread of the coronavirus that has killed more than 1,400 and infected over 60,000 by extending the Lunar New Year holiday for an extra week and encouraging people to work from home, measures that contributed to a global dip in electricity demand as well.
Last year, industrial users consumed 4.85 trillion kWh electricity, accounting for 67% of the country’s total, even as India's electricity demand showed sharp declines in the region.
Xizhou Zhou, the global head of power and Renewables at IHS Markit, said that in a severe case where the epidemic goes on past March, China’s economic growth will be only 4.2% during 2020, down from an initial forecast of 5.8%, while power consumption will climb by only 3.1%, down from 4.1% initially, even as power cuts and blackouts raise concerns.
“The main uncertainty is still how fast the virus will be brought under control,” said Zhou, adding that the impact on the power sector will be relatively modest from a full-year picture in 2020, even though China's electric power woes are already clouding solar markets.
In Hubei province, the epicenter of the virus outbreak, the peak power load at the end of January was 21% less than planned, mirroring how Japan's power demand was hit during the outbreak, data from Wood Mackenzie showed.
Industrial operating rates point to a firm reduction in power consumption in China.
Utilization rates at plastic processors are between 30% and 60% and the low levels are expected to last for another two week, according to ICIS China.
Weaving machines at textile plants are operating at below 10% of capacity, the lowest in five years, ICIS data showed. China is the world’s biggest textile and garment exporter.
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U.S. Grid overseer issues warning on Coronavirus
NERC COVID-19 Grid Security Alert urges utilities to update business continuity plans, assess supply chain risk, and harden cybersecurity against spearphishing, social engineering, and remote-work vulnerabilities to protect the U.S. power grid and critical infrastructure.
Key Points
A notice urging U.S. utilities to fortify pandemic continuity, secure supply chains, and enhance cybersecurity.
✅ Mandates updates to business continuity and pandemic readiness plans
✅ Flags supply chain risks for PPE, electronics, chemicals, and logistics
✅ Warns of spearphishing, social engineering, VPN and remote-work threats
The top U.S. grid security monitor urged power utilities to prepare for the new coronavirus in a rare alert yesterday, adding to a chorus of warnings from federal and private organizations.
The North American Electric Reliability Corp. called for power providers to update business continuity plans in case of a pandemic outbreak and weigh the need to prioritize construction or maintenance projects, including updates on major projects like BC Hydro's Site C, while the COVID-19 virus continues to spread.
NERC is requiring electric utilities to answer questions on their readiness for a possible pandemic, including potential staffing strategies such as on-site sequestering, by March 20, an unusual step that underscores the severity of the threat to U.S. power systems.
The Electricity Information Sharing and Analysis Center, NERC's hub for getting the word out on dangers and vulnerabilities for the grid, also sent out an "all-points bulletin" on Feb. 5 addressing the coronavirus outbreak. That nonpublic document covered "potential supply chain issues stemming from a manufacturing slowdown in Asia," NERC spokeswoman Kimberly Mielcarek said.
Among offering basic hygiene and awareness recommendations, NERC's latest alert also encourages utilities to take stock of resources with supply chains affected by the virus. Because "China and nearby southeast Asian nations" have been impacted, NERC said, the supply chain hits will likely include "electronics, personal protective equipment and sanitation supplies, chemicals, and raw materials." The nonprofit grid overseer also warned of global transportation disruptions.
NERC also recommended utilities be on the lookout for cyberattacks taking advantage of the panic and using "coronavirus-themed opportunistic social engineering attacks" to hack into power companies' networks. Social engineering attacks are when hackers use social interactions to manipulate targets into giving up sensitive information.
"Spearphishing, watering hole, and other disinformation tactics are commonly used to exploit public interest in significant events," the alert said.
Electric utility representatives said they're working on or have already completed some of the steps outlined in NERC's alert, though nuclear plant workers have cited a lack of precautions in some cases.
"At this point, many of our members are activating and/or reviewing their business continuity and preparedness plans to ensure that operations and infrastructure are properly supported," said Tobias Sellier, director of media relations for the American Public Power Association, which represents around 1,400 electric utilities.
The power providers are also collaborating with other utilities such as "water, wastewater and gas," Sellier said.
Stephen Bell, senior director of media and public relations at the National Rural Electric Cooperative Association, said his group's members "have already taken a number of steps recommended by NERC" while continuing to maintain operations.
"Co-ops continue working with local, state and federal stakeholders to remain vigilant and prepared. These preparations include more frequent communications to key stakeholders, updating business continuity plans and monitoring new information from public health officials," said Bell.
Last week the Electricity Subsector Coordinating Council (ESCC), a panel of government and industry officials charged with responding to power-sector emergencies, scheduled a conference call discussing how to protect the grid from disruption if the virus infects system operators. Ohio-based utility American Electric Power Co. said it is limiting public visits, has created a high-level response team and is working to ensure operations can continue, while reinforcing downed power line safety, if the virus keeps spreading (Energywire, March 6).
Scott Aaronson, vice president for security and preparedness of the Edison Electric Institute, which represents major investor-owned utilities, said that the electric sector practices "contingency planning" to deal with unusual situations such as the coronavirus. That means that while the type of emergency may be new, dealing with an emergency situation is not, he said. Aaronson added that many of NERC's recommendations are based on what companies are already doing.
"We have heightened awareness given the circumstances, and we have messaging to employees all the way up and down the chain — from CEOs to frontline workers — that: given this time of heightened awareness and potential vulnerability, we have to practice hygiene both of the personal and cyber variety," said Aaronson.
Aaronson said that the ESCC had another call this week with the departments of Energy and Homeland Security and the Centers for Disease Control and Prevention to stay on top of the issue.
Hacking concerns
In a cybersecurity event yesterday, Lisa Monaco, co-chair of the Aspen Cybersecurity Group and former homeland security adviser during the Obama administration, warned that the coronavirus should be considered a national security threat.
"Frankly, [pandemic] is the thing that kept me up at night amongst many, many things that kept me up at night for four years in the White House," Monaco said.
Monaco went on to say the virus will strain organizations' IT infrastructure as more employees work remotely and households face higher electricity bills, and lead to "potentially more vulnerabilities for bad actors when it comes to cybersecurity."
On Friday, the DHS's Cybersecurity and Infrastructure Security Agency released advice on steps that can be taken to lessen the virus's impact on supply chains and cybersecurity, as well as tips for defending against scams exploiting coronavirus fears.
Cybersecurity firms also have been reporting a dramatic increase in spear-phishing attacks, with hackers reportedly using the coronavirus topic as a lure to trick victims into clicking a malicious link. Whether it's hackers aiming at industries susceptible to shipping disruptions, attacking countries like Italy hit particularly hard by the virus or even masquerading as the World Health Organization, cybercriminals are taking full advantage of the crisis, experts say.
Greg Young, vice president of cybersecurity at Trend Micro, said businesses should continue to expect an increase in targeted phishing attacks.
"With a large majority of businesses switching to a work-from-home model and less emphasis on in-person meetings, we also anticipate that malicious actors will start to impersonate digital tools such as 'free' remote conferencing services and other cloud computing software," said Young.
Working from home can be especially risky, as often home networks are less secure than corporate offices, Young said — meaning a hacker aiming to get into an enterprise network could find an "easier attack path" from a home office.
The Department of Energy is asking employees to make sure they can work remotely when needed, even as some agencies set limits with EPA telework policy, including updating security questions and asking those with government-furnished laptops to be sure they have a VPN, or virtual private network, account. In a post added this week to the agency's website, Chief Information Officer Rocky Campione said the department over the next two weeks will be initiating steps to ensure there is adequate network capacity to carry out DOE's work.
"Ensuring the continued operations of the department's many varied missions requires diligence," Campione said.
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Global oil demand to decline in 2020 as Coronavirus weighs heavily on markets
COVID-19 Impact on Global Oil Demand 2020 signals an IEA forecast of declining consumption as travel restrictions curb transport fuels, disrupt energy markets, and shift OPEC and non-OPEC supply dynamics amid economic slowdown.
Key Points
IEA sees first demand drop since 2009 as COVID-19 curbs travel, weakening transport fuels and unsettling energy markets.
✅ IEA base case: 2020 demand at 99.9 mb/d, down 90 kb/d from 2019.
✅ Travel restrictions hit transport fuels; China drives the decline.
✅ Scenarios: low -730 kb/d; high +480 kb/d in 2020.
Global oil demand is expected to decline in 2020 as the impact of the new coronavirus (COVID-19) spreads around the world, constricting travel and broader economic activity, according to the International Energy Agency’s latest oil market forecast.
The situation remains fluid, creating an extraordinary degree of uncertainty over what the full global impact of the virus will be. In the IEA’s central base case, even as global CO2 emissions flatlined in 2019 according to the IEA, demand this year drops for the first time since 2009 because of the deep contraction in oil consumption in China, and major disruptions to global travel and trade.
“The coronavirus crisis is affecting a wide range of energy markets – including coal-fired electricity generation, gas and renewables – but its impact on oil markets is particularly severe because it is stopping people and goods from moving around, dealing a heavy blow to demand for transport fuels,” said Dr Fatih Birol, the IEA’s Executive Director. “This is especially true in China, the largest energy consumer in the world, which accounted for more than 80% of global oil demand growth last year. While the repercussions of the virus are spreading to other parts of the world, what happens in China will have major implications for global energy and oil markets.”
The IEA now sees global oil demand at 99.9 million barrels a day in 2020, down around 90,000 barrels a day from 2019. This is a sharp downgrade from the IEA’s forecast in February, which predicted global oil demand would grow by 825,000 barrels a day in 2020.
The short-term outlook for the oil market will ultimately depend on how quickly governments move to contain the coronavirus outbreak, how successful their efforts are, and what lingering impact the global health crisis has on economic activity.
To account for the extreme uncertainty facing energy markets, the IEA has developed two other scenarios for how global oil demand could evolve this year. In a more pessimistic low case, global measures fail to contain the virus, and global demand falls by 730,000 barrels a day in 2020. In a more optimistic high case, the virus is contained quickly around the world, and global demand grows by 480,000 barrels a day.
“We are following the situation extremely closely and will provide regular updates to our forecasts as the picture becomes clearer,” Dr Birol said. “The impact of the coronavirus on oil markets may be temporary. But the longer-term challenges facing the world’s suppliers are not going to go away, especially those heavily dependent on oil and gas revenues. As the IEA has repeatedly said, these producer countries need more dynamic and diversified economies in order to navigate the multiple uncertainties that we see today.”
The IEA also published its medium-term outlook examining the key issues in global demand, supply, refining and trade to 2025, as well as the trajectory of the global energy transition now shaping markets. Following a contraction in 2020 and an expected sharp rebound in 2021, yearly growth in global oil demand is set to slow as consumption of transport fuels grows more slowly and as national net-zero pathways, with Canada needing more electricity to reach net-zero influencing power demand, according to the report. Between 2019 and 2025, global oil demand is expected to grow at an average annual rate of just below 1 million barrels a day. Over the period as whole, demand rises by a total of 5.7 million barrels a day, with China and India accounting for about half of the growth.
At the same time, the world’s oil production capacity is expected to rise by 5.9 million barrels a day, with more than three-quarters of it coming from non-OPEC producers, the report forecasts. But production growth in the United States and other non-OPEC countries is set to lose momentum after 2022, amid shifts in Wall Street's energy strategy linked to policy signals, allowing OPEC producers from the Middle East to turn the taps back up to help keep the global oil market in balance.
The medium-term market report, Oil 2020, also considers the impact of clean energy transitions on oil market trends. Demand growth for gasoline and diesel between 2019 and 2025 is forecast to weaken as countries around the world implement policies to improve efficiency and cut carbon dioxide emissions – and as solar power becomes the cheapest electricity in many markets and electric vehicles increase in popularity. The impact of energy transitions on oil supply remains unclear, with many companies prioritising short-cycle projects for the coming years.
“The coronavirus crisis is adding to the uncertainties the global oil industry faces as it contemplates new investments and business strategies,” Dr Birol said. “The pressures on companies are changing, with European oil majors turning electric to diversify. They need to show that they can deliver not just the energy that economies rely on, but also the emissions reductions that the world needs to help tackle our climate challenge.”
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Japan opens part of last town off-limits since nuclear leaks
Futaba Partial Reopening marks limited access to the Fukushima exclusion zone, highlighting radiation decontamination progress, the train station restart, and regional recovery ahead of the Tokyo Olympics after the 2011 nuclear disaster and evacuation.
Key Points
A lift of entry bans in Futaba, signaling Fukushima recovery, decontamination progress, and a train station restart.
✅ Unrestricted access to 2.4 km² around Futaba Station
✅ Symbolic step ahead of Tokyo Olympics torch relay
✅ Decommissioning and decontamination to span decades
Japan's government on Wednesday opened part of the last town that had been off-limits due to radiation since the Fukushima nuclear disaster nine years ago, in a symbolic move to show the region's recovery ahead of the Tokyo Olympics, even as grid blackout risks have drawn scrutiny nationwide.
The entire population of 7,000 was forced to evacuate Futaba after three reactors melted down due to damage at the town's nuclear plant caused by a magnitude 9. 0 quake and tsunami March 11, 2011.
The partial lifting of the entry ban comes weeks before the Olympic torch starts from another town in Fukushima, as new energy projects like a large hydrogen system move forward in the prefecture. The torch could also arrive in Futaba, about 4 kilometres (2.4 miles) from the wrecked nuclear plant.
Unrestricted access, however, is only being allowed to a 2.4 square-kilometre (less than 1 square-mile) area near the main Futaba train station, which will reopen later this month to reconnect it with the rest of the region for the first time since the accident. The vast majority of Futaba is restricted to those who get permission for a day visit.
The three reactor meltdowns at the town's Fukushima Dai-ichi nuclear power plant spewed massive amounts of radiation that contaminated the surrounding area and at its peak, forced more than 160,000 people to flee, even as regulators later granted TEPCO restart approval for a separate Niigata plant elsewhere in Japan.
The gate at a checkpoint was opened at midnight Tuesday, and Futaba officials placed a signboard at their new town office, at a time when the shutdown of Germany's last reactors has reshaped energy debates abroad.
“I'm overwhelmed with emotion as we finally bring part of our town operations back to our home town," said Futaba Mayor Shiro Izawa. “I pledge to steadily push forward our recovery and reconstruction."
Town officials say they hope to see Futaba’s former residents return, but prospects are grim because of lingering concern about radiation, and as Germany's nuclear exit underscores shifting policies abroad. Many residents also found new jobs and ties to communities after evacuating, and only about 10% say they plan to return.
Futaba's registered residents already has decreased by 1,000 from its pre-disaster population of 7,000. Many evacuees ended up in Kazo City, north of Tokyo, after long bus trips, various stopovers and stays in shelters at an athletic arena and an abandoned high school. The town's government reopened in a makeshift office in another Fukushima town of Iwaki, while abroad projects like the Bruce reactor refurbishment illustrate long-term nuclear maintenance efforts.
Even after radiation levels declined to safe levels, the region's farming and fishing are hurt by lingering concerns among consumers and retailers. The nuclear plant is being decommission in a process that will take decades, with spent fuel removal delays extending timelines, and it is building temporary storage for massive amounts of debris and soil from ongoing decontamination efforts.
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Should California classify nuclear power as renewable?
California Nuclear Renewable Bill AB 2898 seeks to add nuclear to the Renewables Portfolio Standard, impacting Diablo Canyon, PG&E compliance, carbon-free targets, and potential license extensions while addressing climate goals and natural gas reliance.
Key Points
A bill to add nuclear to California's RPS, influencing Diablo Canyon, PG&E planning, and carbon-free climate targets.
✅ Reclassifies nuclear as renewable in California's RPS.
✅ Could influence Diablo Canyon license extension and ownership.
✅ Targets carbon-free goals while limiting natural gas reliance.
Although he admits it's a long shot, a member of the California Legislature from the district that includes the Diablo Canyon nuclear plant has introduced a bill that would add nuclear power to the state's list of renewable energy sources.
"I think that nuclear power is an important component of generating large-scale electricity that's good for the environment," said Jordan Cunningham, R-San Luis Obispo. "Without nuclear as part of the renewable portfolio, we're going to have tremendous difficulty meeting the state's climate goals without a significant cost increase on electricity ratepayers."
Established in 2002, California's Renewables Portfolio Standard spells out the power sources eligible to count toward the state's goals to wean itself of fossil fuels. The list includes solar, wind, biomass, geothermal, small hydroelectric facilities and even tidal currents. The standard has been updated, currently calling for 60 percent of California's electricity to come from renewables by 2030 and 100 percent from carbon-free sources by 2045, even as some analyses argue net-zero emissions may be difficult to achieve without nuclear power.
Nuclear power is not part of the portfolio standard and Diablo Canyon — the only remaining nuclear plant in California — is scheduled to stop producing electricity by 2025, even as some Southern California plant closures face postponement to maintain grid reliability.
Pacific Gas & Electric, the operators of Diablo Canyon, announced in 2016 an agreement with a collection of environmental and labor groups to shut down the plant, often framed as part of a just transition for workers and communities. PG&E said Diablo will become uneconomical to run due to changes in California's power grid — such as growth of renewable energy sources, increased energy efficiency measures and the migration of customers from traditional utilities to community choice energy programs.
But Cunningham thinks the passage of Assembly Bill 2898, which he introduced last week, — as innovators like Bill Gates' mini-reactor venture tout new designs — could give the plant literally a new lease on life.
"If PG&E were able to count the power produced (at Diablo) toward its renewable goals, it might — I'm not saying it will or would, but it might — cause them to reconsider applying to extend the operating license at Diablo," Cunningham said.
Passing the bill, supporters say, could also make Diablo Canyon attractive to an outside investor to purchase and then apply to the Nuclear Regulatory Commission for a license extension.
But nuclear power has long generated opposition in California and AB 2898 will face long odds in Sacramento, and similar efforts elsewhere have drawn opposition from power producers as well. The Legislature is dominated by Democrats, who have expressed more interest in further developing wind and solar energy projects than offering a lifeline to nuclear.
And if the bill managed to generate momentum, anti-nuclear groups will certainly be quick to mobilize, reflecting a national energy debate over Three Mile Island and whether to save struggling plants.
When told of Cunningham's bill, David Weisman, outreach coordinator for the Alliance for Nuclear Responsibility, said flatly, "Diablo Canyon has become a burdensome, costly nuclear white elephant."
Critics say nuclear power by definition cannot be considered renewable because it leaves behind waste in the form of spent nuclear fuel that then has to be stored, while supporters point to next-gen nuclear designs that aim to improve safety and costs. The federal government has not found a site to deposit the waste that has built up over decades from commercial nuclear power plants.
Even though Diablo Canyon is the only nuclear plant left in the Golden State, it accounts for 9 percent of California's power mix. Cunningham says if the plant closes, the state's reliance on natural gas — a fossil fuel — will increase, pointing to what happened when the San Onofre Nuclear Generating Station closed.
In 2011, the final full year operations for San Onofre, nuclear accounted for 18.2 percent of in-state generation and natural gas made up 45.4 percent. The following year, nuclear dropped to 9.3 percent and gas shot up to 61.1 percent of in-state generation.
"If we're going to get serious about being a national leader as California has been on dealing with climate change, I think nuclear is part of the answer," Cunningham said.
But judging from the response to an email from the Union-Tribune, PG&E isn't exactly embracing Cunningham's bill.
"We remain focused on safely and reliably operating Diablo Canyon Power Plant until the end of its current operating licenses and planning for a successful decommissioning," said Suzanne Hosn, a PG&E senior manager at Diablo Canyon. "The Assemblyman's proposal does not change any of PG&E's plans for the plant."
Cunningham concedes AB 2898 is "a Hail Mary pass" but said "it's an important conversation that needs to be had."
The second-term assemblyman introduced a similar measure late last year that sought to have the Legislature bring the question before voters as an amendment to the state constitution. But the legislation, which would require a two-thirds majority vote in the Assembly and the Senate, is still waiting for a committee assignment.
AB 2898, on the other hand, requires a simple majority to move through the Legislature. Cunningham said he hopes the bill will receive a committee assignment by the end of next month.
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IAEA Reviews Belarus’ Nuclear Power Infrastructure Development
Belarus Nuclear Power Infrastructure Review evaluates IAEA INIR Phase 3 readiness at Ostrovets NPP, VVER-1200 reactors, legal and regulatory framework, commissioning, safety, emergency preparedness, and energy diversification in a low-carbon program.
Key Points
An IAEA INIR Phase 3 assessment of Belarus readiness to commission and operate the Ostrovets NPP with VVER-1200 units.
✅ Reviews legal, regulatory, and institutional arrangements
✅ Confirms Phase 3 readiness for safe commissioning and operation
✅ Highlights good practices in peer reviews and emergency planning
An International Atomic Energy Agency (IAEA) team of experts today concluded a 12-day mission to Belarus to review its infrastructure development for a nuclear power programme. The Integrated Nuclear Infrastructure Review (INIR) was carried out at the invitation of the Government of Belarus.
Belarus, seeking to diversify its energy production with a reliable low-carbon source, and aware of the benefits of energy storage for grid flexibility, is building its first nuclear power plant (NPP) at the Ostrovets site, about 130 km north-west of the capital Minsk. The country has engaged with the Russian Federation to construct and commission two VVER-1200 pressurised water reactors at this site and expects the first unit to be connected to the grid this year.
The INIR mission reviewed the status of nuclear infrastructure development using the Phase 3 conditions of the IAEA’s Milestones Approach. The Ministry of Energy of Belarus hosted the mission.
The INIR team said Belarus is close to completing the required nuclear power infrastructure for starting the operation of its first NPP. The team made recommendations and suggestions aimed at assisting Belarus in making further progress in its readiness to commission and operate it, including planning for integration with variable renewables, as advances in new wind turbines are being deployed elsewhere to strengthen the overall energy mix.
“This mission marks an important step for Belarus in its preparations for the introduction of nuclear power,” said team leader Milko Kovachev, Head of the IAEA’s Nuclear Infrastructure Development Section. “We met well-prepared, motivated and competent professionals ready to openly discuss all infrastructure issues. The team saw a clear drive to meet the objectives of the programme and deliver benefits to the Belarusian people, such as supporting the country’s economic development, including growth in EV battery manufacturing sectors.”
The team comprised one expert from Algeria and two experts from the United Kingdom, as well as seven IAEA staff. It reviewed the status of 19 nuclear infrastructure issues using the IAEA evaluation methodology for Phase 3 of the Milestones Approach, noting that regional integration via an electricity highway can shape planning assumptions as well. It was the second INIR mission to Belarus, who hosted a mission covering Phases 1 and 2 in 2012.
Prior to the latest mission, Belarus prepared a Self-Evaluation Report covering all infrastructure issues and submitted the report and supporting documents to the IAEA.
The team highlighted areas where further actions would benefit Belarus, including the need to improve institutional arrangements and the legal and regulatory framework, drawing on international examples of streamlined licensing for advanced reactors to ensure a stable and predictable environment for the programme; and to finalize the remaining arrangements needed for sustainable operation of the nuclear power plant.
The team also identified good practices that would benefit other countries developing nuclear power in the areas of programme and project coordination, the use of independent peer reviews, cooperation with regulators from other countries, engagement with international stakeholders and emergency preparedness, and awareness of regional initiatives such as new electricity interconnectors that can enhance system resilience.
Mikhail Chudakov, IAEA Deputy Director General and Head of the Department of Nuclear Energy attended the Mission’s closing meeting. “Developing the infrastructure required for a nuclear power programme requires significant financial and human resources, and long lead times for preparation and the approval of major transmission projects that support clean power flows, and the construction activities,” he said. “Belarus has made commendable progress since the decision to launch a nuclear power programme 10 years ago.”
“Hosting the INIR mission, Belarus demonstrated its transparency and genuine interest to receive an objective professional assessment of the readiness of its nuclear power infrastructure for the commissioning of the country’s first nuclear power plant,” said Mikhail Mikhadyuk, Deputy Minister of Energy of the Republic of Belarus. ”The recommendations and suggestions we received will be an important guidance for our continuous efforts aimed at ensuring the highest level of safety and reliability of the Belarusian NPP."
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The Phillipines wants nuclear power to be included in the country's energy mix as the demand for electricity is expected to rise.
Philippines Nuclear Energy Policy aims to add nuclear power to the energy mix via executive order, meeting rising electricity demand with 24/7 baseload while balancing safety, renewables, and imported fuel dependence in the Philippines.
Key Points
A government plan to include nuclear power in the energy mix to meet demand, ensure baseload, and uphold safety.
✅ Executive order proposed by Energy Secretary Alfonso Cusi
✅ Targets 24/7 baseload, rising electricity demand
✅ Balances safety, renewables, and energy security
Phillipines Presidential spokesman Salvador Panelo said Energy Secretary Alfonso Cusi made the proposal during last Monday's Cabinet meeting in Malacaaang. "Secretary Cusi likewise sought the approval of the issuance of a proposed executive order for the inclusion of nuclear power, including next-gen nuclear options in the country's energy mix as the Philippines is expected to the rapid growth in electricity and electricity demand, in which, 24/7 power is essential and necessary," Panelo said in a statement.
Panelo said Duterte would study the energy chief's proposal, as China's nuclear development underscores regional momentum. In the 1960s until the mid 80s, the late president Ferdinand Marcos adopted a nuclear energy program and built the Bataan Nuclear Plant.
The nuclear plant was mothballed after Corazon Aquino became president in 1986. There have been calls to revive the nuclear plant, saying it would help address the Philippines' energy supply issues. Some groups, however, said such move would be expensive and would endanger the lives of people living near the facility, citing Three Mile Island as a cautionary example.
Panelo said proposals to revive the Bataan Nuclear Plant were not discussed during the Cabinet meeting, even as debates like California's renewable classification continue to shape perceptions. Indigenous energy sources natural gas, hydro, coal, oil, geothermal, wind, solar, biomassand ethanol constitute more than half or 59.6%of the Philippines' energy mix.
Imported oil make up 31.7% while imported coal, reflecting the country's coal dependency, contribute about 8.7%.
Imported ethanol make up 0.1% of the energy mix, even as interest in atomic energy rises globally.
In 2018, Duterte said safety should be the priority when deciding whether to tap nuclear energy for the country's power needs, as countries like India's nuclear restart proceed with their own safeguards.
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What is plan for clean energy when Pickering nuclear plant closes?
Pickering Clean Energy Replacement maps GTA strategies to replace nuclear capacity with renewables, energy efficiency, demand response, off-peak EV charging, and distributed energy resources to cut emissions, curb natural gas use, and strengthen grid resilience.
Key Points
A plan to replace Pickering with renewables, efficiency, and DERs to avoid gas and keep the GTA grid low-carbon.
✅ Targeted efficiency to cut peaks and defer grid upgrades
✅ Distributed solar + storage, microgrids for resilience
✅ Demand response and off-peak EV charging to limit gas
In the flurry of debate around the Pickering nuclear plant and its future, the one thing that almost no one has talked about is what to do when it finally closes.
Pickering has been providing climate friendly electricity to Ontario — particularly to the Greater Toronto Area — for almost half a century but will retire by 2025. When it does, the default response will be to increase electricity generation from natural gas, which alone would more than double climate change emissions from electricity.
Ontario is justifiably proud of its low-emission power, with 95 per cent coming from clean sources, a fact celebrated in the government’s environment plan and its broader embrace of clean power across the province. It would be a shame to backslide now and increase emissions.
Since Pickering’s closure was decided, no plan has been developed to replace it with non-emitting solutions despite a growing electricity supply gap identified by recent studies. Many municipalities in the GTA have ambitious emissions-reduction targets. The GTA needs to consider how it will keep its electricity system clean.
According to Pollution Probe’s new report, “Replacing Pickering: The Next Step in the GTA’s Clean Energy Transition,” funded by The Atmospheric Fund and released Wednesday, filling the post-Pickering gap by 2025 with clean electricity solutions is an ambitious but achievable goal.
Pollution Probe brought together utilities, government, industry and civil society to discuss options for 2025. There is agreement that increasing energy efficiency and developing small scale clean electricity solutions could fill the gap.
Reducing demand will be key. Ontario has improved energy efficiency over the years, helping reduce consumer bills and the need for new electricity, and this should continue. But we need to target energy efficiency where it can provide the greatest value, like specific areas of the grid where reducing demand could avoid the need for new utility infrastructure, or during times of high demand across the province (e.g., midsummer) when the alternative would be to burn more natural gas.
We cannot, of course, conserve our way out of needing more power. Renewable energy has had bad press in Ontario due to high costs, but the market has shifted. Renewables, developed in a way that provides value to the grid, are now often the lowest-cost option.
These actions provide benefits beyond reducing emissions — including building resiliency to extreme weather and local economic development.
There is an opportunity to keep our clean, affordable electricity while also saving consumers money. To get there, Ontario’s energy policy, market and regulatory systems need to be updated. In the short-term, electric vehicle owners can benefit by shifting charging to low-demand hours. Utilities should properly consider the cost and benefits of conservation and small clean energy systems and compensate appropriately for all the value they can add.
We have solutions to help Ontario retain its clean power supply, which is important for all Ontarians, not just those in the GTA. However, for an effective transition, political commitment to supporting these goals is needed.
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Nuclear Innovation Needed for American Energy, Environmental Future
Advanced Nuclear Technology drives decarbonization through innovation, SMRs, and a stable grid, bolstering U.S. leadership, energy security, and clean power exports under supportive regulation and policy to meet climate goals cost-effectively.
Key Points
Advanced nuclear technology uses SMRs to deliver low-carbon, reliable power and strengthen energy security.
✅ Accelerates decarbonization with firm, low-carbon baseload power
✅ Enhances grid reliability via SMRs and advanced fuel cycles
✅ Supports U.S. leadership through exports, R&D, and modern regulation
The most cost-effective way--indeed the only reasonable way-- to reduce greenhouse gas emissions and foster our national economic and security interests is through innovation, especially next-gen nuclear power innovation. That's from Rep. Greg Walden, R-Oregon, ranking Republican member of the House Energy and Commerce Committee, speaking to a Subcommittee on Energy hearing titled, "Building a 100 Percent Clean Economy: Advanced Nuclear Technology's Role in a Decarbonized Future."
Here are the balance of his remarks.
Encouraging the deployment of atomic energy technology, strengthening our nuclear industrial base, implementing policies that helps reassert U.S. nuclear leadership globally... all provide a promising path to meet both our environmental and energy security priorities. In fact, it's the only way to meet these priorities.
So today can help us focus on what is possible and what is necessary to build on recent policies we've enacted to ensure we have the right regulatory landscape, the right policies to strengthen our domestic civil industry, and the advanced nuclear reactors on the horizon.
U.S. global leadership here is sorely needed. Exporting clean power and clean power technologies will do more to drive down global Co2 emissions on the path to net-zero emissions worldwide than arbitrary caps that countries fail to meet.
In May last year, the International Energy Agency released an informative report on the role of nuclear power in clean energy systems; it did not find current trends encouraging.
The report noted that nuclear and hydropower "form the backbone of low-carbon electricity generation," responsible for three-quarters of global low-carbon generation and the reduction of over 60 gigatons of carbon dioxide emissions over the past 50 years.
Yet IEA found in advanced economies, nuclear power is in decline, with closing plants and little new investment, "just when the world requires more low-carbon electricity."
There are various reasons for this, some relating to cost overruns and delays, others to policies that fail to value the "low-carbon and energy security attributes" of nuclear. In any case, the report found this failure to encourage nuclear will undermine global efforts to develop cleaner electricity systems.
Germany demonstrates the problem. As it chose to shut down its nuclear industry, it has doubled down on expanding renewables like solar and wind. Ironically, to make this work, it also doubled down on coal. This nuclear phase out has cost Germany $12 billion a year, 70% of which is from increased mortality risk from stronger air pollutants (this according to the National Bureau of Economic Research). If other less technologically advanced nations even could match the rate of renewables growth reached by Germany, they would only hit about a fifth of what is necessary to reach climate goals--and with more expensive energy. So, would they then be forced to bring online even more coal-fired sources than Germany?
On the other hand, as outlined by the authors of the pro-nuclear book "A Bright Future," France and Sweden have both demonstrated in the 1970s and 1980s, how to do it. They showed that the build out of nuclear can be done at five times the rate of Germany's experience with renewables, with increased electricity production and relatively lower prices.
I think the answer is obvious about the importance of nuclear. The question will be "can the United States take the lead going forward?"
We can help to do this in Congress if we fully acknowledge what U.S. leadership on nuclear will mean--both for cleaner power and industrial systems beyond electricity, here and abroad--and for the ever-important national security attributes of a strong U.S. industry.
Witnesses have noted in recent hearings that recognizing how U.S. energy and climate policy effects energy and energy technology relationships world-wide is critical to addressing emissions where they are growing the fastest and for strengthening our national security relationships.
Resurrecting technological leadership in nuclear technology around the world will meet our broader national and energy security reasons--much as unleashing U.S. LNG from our shale revolution restored our ability to counter Russia in energy markets, while also driving cleaner technology. Our nuclear energy exports boost our national security priorities.
We on Energy and Commerce have been working, in a bipartisan manner over the past few Congresses to enhance U.S. nuclear policies. There is most certainly more to do. And I think today's hearing will help us explore what can be done, both administratively and legislatively, to pave the way for advanced nuclear energy.
Let me welcome the panel today. Which, I'm pleased to see, represents several important perspectives, including industry, regulatory, safety, and international expertise, to two innovative companies--Terrapower and my home state of Oregon's NuScale. All of these witnesses can speak to what we need to do to build, operate and lead with these new technologies.
We should work to get our nation's nuclear policy in order, learning from global frameworks like the green industrial revolution abroad. Today represents a good step in that effort.
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Affordable, safe' nuclear power is key to reaching Canada's climate goals: federal minister
Canada Nuclear Power Expansion highlights SMRs, clean energy, net-zero targets, and robust regulation to deliver safe, reliable baseload electricity, spur investment, and economically decarbonize remote communities, mines, and grids across provinces securely.
Key Points
Canada Nuclear Power Expansion grows SMRs and reactors to meet climate targets with safe, reliable baseload power.
✅ Deploys SMRs for remote communities, mines, and industrial sites
✅ Streamlines regulation to ensure safety, trust, and timely approvals
✅ Provides clean, reliable baseload to hit net-zero electricity goals
Canada must expand its nuclear power capacity if it is to reach its climate targets, according to Canadian Minister of Natural Resources Seamus Oregan.
Speaking to the Canadian Nuclear Association’s annual conference, Seamus O’Regan said the industry has to grow.
“As the world tackles a changing climate, nuclear power is poised to provide the next wave of clean, affordable, safe and reliable power,” he told a packed room.
The Ottawa conference was the largest the industry has run with dozens of companies and more than 900 people in attendance. Provincial cabinet ministers from Saskatchewan and Ontario were also there. Those two provinces, along with New Brunswick, signed a memorandum in December as part of a premiers' nuclear initiative to work together on small modular reactor technology.
People need to know that it’s safe
Small modular reactors are units that produce less power than large generating stations, but can be constructed easier and are expected to be safer to operate. Canadian firms have about a dozen of the proposed reactors working their way through the regulatory process, with New Brunswick's SMR plans drawing scrutiny.
The smaller reactors could be used in groups to replace large units, but the industry also hopes to use them in rural or isolated communities, mines or even oilsands projects, potentially replacing the diesel power generators some remote communities use.
The Canadian government issued a road map to support the industry in 2018 and O’Regan committed Thursday to putting some teeth on that proposal later this year, as provinces like Ontario explore new large-scale nuclear plants to meet demand, with specific steps the government will take.
“We have been working so hard to support this industry. We are placing nuclear energy front and centre, something that has never been done before.”
O’Regan said the government’s role is a clear, streamlined regulatory system that will promote the industry, but also help the Canadian public to trust the reactors will be safe.
“People need to know that it’s safe. They need to know that it’s regulated. They need to know that it’s safe for them,” he said.
The Liberals promised during the campaign that they would gradually reduce Canada’s carbon emissions even after hitting the targets in the Paris Agreement by 2030. By 2050, Prime Minister Justin Trudeau said he expects Canada to be carbon neutral, mindful of lessons from Europe's power crisis on reliability.
The government hasn’t outlined how it will achieve that goal. O’Regan said more detail is coming, but it’s clear that nuclear is going to have to play a major part, echoing the UK’s green industrial revolution approach to reactor deployment.
“I have not seen a credible plan for net zero without nuclear as part of the mix. I don’t think we are going to be relying on any one technology. I think it’s going to be a whole host of things.”
O’Regan said large investors are looking for countries that are on the path to net zero.
“Everybody has their shirt sleeves rolled up and we know we need to work on this, not only do we have to work on this for the urgency of the planet, but we have to work on it for Canadian jobs.”
He added, “We must focus on those areas where Canada can and should lead, like nuclear.”
Canadians are ready to take a fresh look at nuclear
John Gorman, president of the Canadian Nuclear Association, said he was thrilled with O’Regan’s comments.
“I took the minister’s remarks this morning as being perhaps the strongest language of support for the nuclear industry in a number of years.”
Gorman said the industry is in strong shape and is working with utility companies such as Ontario Power Generation and regulators to move projects forward.
“It’s this amazing collaboration and coordination that is enabling us to beat others to the roll out of these small modular reactors,” he said.
He said provinces that might not have looked at nuclear before now have an incentive to do it, because of climate change. A former solar industry executive, Gorman said solar and wind power are important, as Ontario plans to seek new wind and solar power to ease supply pressures, but they won’t be able to keep up with rising power demands.
“Globally we are seeing increased recognition that climate change is real and that it’s a crisis, we are also seeing recognition that we are not making as much progress on decarbonizing our electricity system as we thought,” he said. “Canadians are ready to take a fresh look at nuclear and see the real facts.”
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Group to create Canadian cyber standards for electricity sector IoT devices
Canadian Industrial IoT Cybersecurity Standards aim to unify device security for utilities, smart grids, SCADA, and OT systems, aligning with NERC CIP, enabling certification, trust marks, compliance testing, and safer energy sector deployments.
Key Points
National standards to secure industrial IoT for utilities and grids, enabling certification and NERC CIP alignment.
✅ Aligns with NERC CIP and NIST frameworks for energy sector security
✅ Defines certification, testing tools, and a trusted device repository
✅ Enhances OT, SCADA, and smart grid resilience against cyber threats
The Canadian energy sector has been buying Internet-connected sensors for monitoring a range of activities in generating plants, distribution networks facing harsh weather risks and home smart meters for several years. However, so far industrial IoT device makers have been creating their own security standards for devices, leaving energy producers and utilities at their mercy.
The industry hopes to change that by creating national cybersecurity standards for industrial IoT devices, with the goal of improving its ability to predict, prevent, respond to and recover from cyber threats, such as emerging ransomware attacks across the grid.
To help, the federal government today announced an $818,000 grant support a CIO Strategy Council project oversee the setting of standards.
In an interview council executive director Keith Jansa said the money will help a three-year effort that will include holding a set of cross-country meetings with industry, government, academics and interest groups to create the standards, tools to be able to test devices against the standards and the development of product repository of IoT safe devices companies can consult before making purchases.
“The challenge is there are a number of these devices that will be coming online over the next few years,” Jansa said. “IoT devices are designed for convenience and not for security, so how do you ensure that a technology an electricity utility secures is in fact safeguarded against cyber threats? Currently, there is no associated trust mark or certification that gives confidence associated with these devices.”
He also said the council will work with the North American Electric Reliability Corporation (NERC), which sets North American-wide utility safety procedural standards and informs efforts on protecting the power grid across jurisdictions. The industrial IoT standards will be product standards.
According to Robert Wong, vice-president and CIO of Toronto Hydro, all the big provincial utilities are subject to adhering to NERC CIP standards which have requirements for both cyber and physical security. Ontario is different from most provinces in that it has local distribution companies — like Toronto Hydro — which buy electricity in bulk and resell it to customers. These LDCs don’t own or operate critical infrastructure and therefore don’t have to follow the NERC CIP standards.
Regional reforms, such as regulatory changes in Atlantic Canada, aim to bring greener power options to the grid.
Electricity is considered around the world as one of a country’s critical national infrastructure. Threats to the grid can be used for ransom or by a country for political pressure. Ukraine had its power network knocked offline in 2015 and 2016 by what were believed to be Russian-linked attackers operating against utilities.
All the big provincial utilities operate “critical infrastructure” and are subject to adhering to NERC CIP (critical infrastructure protection) standards, which have requirements for both cyber and physical security, as similar compromises at U.S. electric utilities have highlighted recently. There are audited on a regular basis for compliance and can face hefty fines if they fail to meet the requirements. The LDCs in Ontario don’t own or operate “critical infrastructure” and therefore are not required to adopt NERC CIP standards (at least for now).
The CIO Strategy Council is a forum for chief information officers that is helping set standards in a number of areas. In January it announced a partnership with the Internet Society’s Canada Chapter to create standards of practice for IoT security for consumer devices. As part of the federal government’s updated national cybersecurity strategy it is also developing a national cybersecurity standard for small and medium-sized businesses. That strategy would allow SMBs to advertise to customers that they meet minimum security requirements.
“The security of Canadians and our critical infrastructure is paramount,” federal minister of natural resources Seamus O’Regan said in a statement with today’s announcement. “Cyber attacks are becoming more common and dangerous. That’s why we are supporting this innovative project to protect the Canadian electricity sector.”
The announcement was welcomed by Robert Wong, Toronto Hydro’s vice-president and CIO. “Any additional investment towards strengthening the safeguards against cyberattacks to Canada’s critical infrastructure is definitely good news. From the perspective of the electricity sector, the convergence of IT and OT (operational technology) has been happening for some time now as the traditional electricity grid has been transforming into a Smart Grid with the introduction of smart meters, SCADA systems, electronic sensors and monitors, smart relays, intelligent automated switching capabilities, distributed energy resources, and storage technologies (batteries, flywheels, compressed air, etc.).
“In my experience, many OT device and system manufacturers and vendors are still lagging the traditional IT vendors in incorporating Security by Design philosophies and effective security features into their products. This, in turn, creates greater risks and challenges for utilities to protecting their critical infrastructures and ensuring a reliable supply of electricity to its customers.”
The Ontario Energy Board, which regulates the industry in the province, has led an initiative for all utilities to adopt the National Institute of Standards and Technology (NIST) Cybersecurity Framework, along with the ES-C2M2 maturity and Privacy By Design models, he noted. Toronto Hydro has been managing its cybersecurity practice in adherence to these standards, as the city addresses growing electricity needs as well, he said.
“Other jurisdictions, such as Israel, have invested heavily on a national level in developing its cybersecurity capabilities and are seen as global leaders. I am confident that given the availability of talent, capabilities and resources in Canada (especially around the GTA) if we get strong support and leadership at a federal level we can also emerge as a leader in this area as well.”
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B.C. politicians must focus more on phasing out fossil fuels, report says
BC Fossil Fuel Phase-Out outlines a just transition to a green economy, meeting climate targets by mid-century through carbon budgets, ending subsidies for fracking, capping production, and investing in renewable energy, remediation, and resilient infrastructure.
Key Points
A strategic plan to wind down oil and gas, end subsidies, and achieve climate targets with a just transition in BC.
✅ End new leases, phase out subsidies, cap fossil production
✅ Carbon budgets and timelines to meet mid-century climate targets
✅ Just transition: income supports, retraining, site remediation jobs
Politicians in British Columbia aren't focused enough on phasing out fossil fuel industries, a new report says.
The report, authored by the left-leaning Canadian Centre for Policy Alternatives, says the province must move away from fossil fuel industries by mid-century in order to meet its climate targets, with B.C. projected to fall short of 2050 targets according to recent analysis, but adds that the B.C. government is ill prepared to transition to a green economy.
"We are totally moving in the wrong direction," said economist Marc Lee, one of the authors of the report, on The Early Edition Wednesday.
He said most of the emphasis of B.C. government policy has been on slowing reductions in emissions from transportation or emissions from buildings, even though Canada will need more electricity to hit net-zero according to the IEA, while still subsidizing fossil fuel extraction, such as fracking projects, that Lee said should be phased out.
"What we are putting on the table is politically unthinkable right now," said Lee, adding that last month's provincial budget called for a 26 per cent increased gas production over the next three years, even though electrified LNG facilities could boost demand for clean power.
B.C.'s $830M in fossil fuel subsidies undermines efforts to fight climate crisis, report says
He said B.C. needs to start thinking instead about how its going to wind down its dependence on fossil fuel industries.
'Greener' job transition needed
The report said the provincial government's continued interest in expanding production and exporting fossil fuels, even as Canada's race to net-zero intensifies across the energy sector, suggests little political will to think about a plan to move away from them.
It suggests the threat of major job losses in those industries is contributing to the political inaction, but cited several examples of ways governments can help move workers into greener jobs, as many fossil-fuel workers are ready to support the transition according to recent commentary.
Lee said early retirement provisions or income replacement for transitioning workers are options to consider.
"We actually have seen a lot of real-world policy around transition starting to happen, including in Alberta, which brought in a whole transition package for coal workers producing coal for electricity generation, and regional cooperation like bridging the electricity gap between Alberta and B.C. could further support reliability," Lee said.
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Make it easier for small businesses to go green, B.C. Chamber of Commerce urges government
Lee also said well-paying jobs could be created by, for example, remediating old coal mines and gas wells and building green infrastructure and renewable electricity projects in affected areas.
The report also calls for a moratorium on new fossil fuel leases and ending fossil fuel subsidies, as well as creating carbon budgets and fossil fuel production limits.
"Change is coming," said Lee. "We need to get out ahead of it."
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BC Ferries celebrates addition of hybrid ships
BC Ferries Island Class hybrid ferries deliver quiet, battery-electric travel with shore power readiness, lower emissions, and larger capacity on northern routes, protecting marine wildlife while replacing older vessels on Powell River and Texada services.
Key Points
Hybrid-electric ferries using batteries and diesel for quiet, low-emission service, ready for shore power upgrades.
✅ Operate 20% electric at launch; future full-electric via shore power
✅ 300 passengers, 47 vehicles; replacing older, smaller vessels
✅ Quieter transits help protect West Coast whales and marine habitat
In a champagne celebration, BC Ferries welcomed two new, hybrid-electric ships into its fleet Wednesday. The ships arrived in Victoria last month, and are expected to be in service on northern routes by the summer.
The Island Aurora and Island Discovery have the ability to run on either diesel or electricity.
"The pressure on whales on the West Coast is very intense right now," said BC Ferries CEO Mark Collins. "Quiet operation is very important. These ships will be gliding out of the harbor quietly and electrically with no engines running, that will be really great for marine space."
BC Ferries says the ships will be running on electricity 20 per cent of the time when they enter service, but the company hopes they can run on electricity full-time in the future. That would require the installation of shoreline power, which the company hopes to have in place in the next five to 10 years. Each ship costs around $40-million, a price tag that the federal government partially subsidized through CIB support as part of the electrification push.
When the two ships begin running on the Powell River to Texada, and Port McNeill, Alert Bay, and Sointula routes, two older vessels will be retired.
On Kootenay Lake, an electric-ready ferry is slated to begin operations in 2023, reflecting the province's wider shift.
"They are replacing a 47-car ferry, but on some routes they will be replacing a 25-car ferry, so those routes will see a considerable increase in service," said Collins.
Although the ships will not be servicing Colwood, the municipality's mayor is hoping that one day, they will.
"We can look at an electric ferry when we look at a West Shore ferry that would move Colwood residents to Victoria," said Mayor Rob Martin, noting that across the province electric school buses are hitting the road as well. "Here is a great example of what BC Ferries can do for us."
BC Ferries says it will be adding four more hybrid ships to its fleet by 2022, and is working on adding hybrid ships that could run from Victoria to Tsawwassen, similar to Washington State Ferries' hybrid upgrade underway in the region.
B.C’s first hybrid-electric ferries arrived in Victoria on Saturday morning ushering in a new era of travel for BC Ferries passengers, as electric seaplane flights are also on the horizon for the region.
“It’s a really exciting day for us,” said Tessa Humphries, spokesperson for BC Ferries.
It took the ferries 60 days to arrive at the Breakwater District at Ogden Point. They came all the way from Constanta, Romania.
“These are battery-equipped ships that are designed for fully electric operation; they are outfitted with hybrid technology that bridges the gap until the EV charging infrastructure and funding is available in British Columbia,” said Humphries.
The two new "Island Class" vessels arrived at about 9 a.m. to a handful of people eagerly wanting to witness history.
Sometime in the next few days, the transport ship that brought the new ferries to B.C. will go out into the harbor and partially submerge to allow them to be offloaded, Humphries said.
The transfer process could happen in four to five days from now. After the final preparations are finished at the Breakwater District, the ships will be re-commissioned in Point Hope Maritime and then BC Ferries will officially take ownership.
“We know a lot of people are interested in this so we will put out advisory once we have more information as to a viewing area to see the whole process,” said Humphries.
Both Island Class ferries can carry 300 passengers and 47 vehicles. They won’t be sailing until later this year, but Humphries tells CTV News they will be named by the end of February.
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Federal Government announces funding for Manitoba-Saskatchewan power line
Birtle Transmission Line connects Manitoba Hydro to SaskPower, enabling 215 MW of clean hydroelectricity, improving grid reliability, supporting affordable rates, and advancing Green Infrastructure goals under the Investing in Canada Plan across Manitoba and Saskatchewan.
Key Points
A 46 km line moving up to 215 MW from Manitoba Hydro to SaskPower, improving reliability and supplying cleaner power.
✅ Enables interprovincial grid tie between Manitoba and Saskatchewan
✅ Delivers up to 215 MW of renewable hydroelectricity
✅ Supports affordable rates and lower GHG emissions
The federal government announced funding for the Birtle Transmission Line Monday morning.
The project will help Manitoba Hydro build a transmission line from Birtle South Station in the Municipality of Prairie View to the Manitoba–Saskatchewan border 46 kilometres northwest. Once completed, the new line will allow up to 215 megawatts of hydroelectricity to flow from the Manitoba Hydro power grid to the SaskPower power grid, similar to the Great Northern Transmission Line connecting Manitoba and Minnesota today.
The government said the transmission line would create a more stable energy supply, keep energy rates affordable and help Saskatchewan's efforts to reduce cumulative greenhouse-gas emissions in that province.
"The Government of Canada is proud to be working with Manitoba to support projects that create jobs and improve people's lives across the province. The Birtle Transmission Line will provide the region with reliable and greener energy, as seen with Canadian hydropower to New York projects, that will help protect our environment while laying the groundwork for clean economic growth," said Jim Carr, member of Parliament for Winnipeg South Centre, on behalf of Catherine McKenna, minister of infrastructure and communities.
The Government of Canada is investing more than $18.7 million, and the government of Manitoba is contributing more than $42 million in this project through the Green Infrastructure Stream of the Investing in Canada Plan, which also supports Atlantic grid improvements nationwide.
"The Province of Manitoba has one of the cleanest electricity grids in Canada and the world with over 99 per cent of our electricity generated from clean, renewable sources, rooted in Manitoba's hydro history," said Central Services Minister Reg Helwer. "The Made-in-Manitoba Climate and Green Plan is good not only for Manitoba but for Canada and globally."
Jay Grewal, president, and CEO of Manitoba Hydro said the funding is a great example of co-operation between the provincial and federal governments, including investments in smart grid technology that modernize local networks.
"We are very pleased that Manitoba Hydro's Birtle Transmission Project is among the first projects to receive funding under the Canada Infrastructure Program, and we would like to thank both levels of governments for recognizing the importance of the project as we strengthen ties with our neighbours in Saskatchewan, as U.S.-Canada transmission approvals advance elsewhere," said Grewal.
A spokesperson for Manitoba Hydro said it’s too early to say how many jobs will be created during construction, as final contracts have not yet been awarded.
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Ford announces an all-electric Transit cargo van
Ford Electric Transit is an all electric cargo van for US and Canada, launching 2021, with 4G LTE hotspot, fleet telematics, GPS tracking, and driver assistance safety tech; battery, range, and performance specs TBD.
Key Points
An all electric cargo van with fleet telematics, 4G LTE, and driver assistance features for US and Canada.
✅ 4G LTE hotspot, live GPS tracking, and diagnostics
✅ Fleet telematics and management tools for operations
✅ Driver assistance: AEB, lane keeping, and collision warning
Ford is making an all-electric version of its popular Transit cargo van for the US and Canadian markets, slated to be released in 2021, aligning with Ford’s EV manufacturing plans to scale production across North America. The company did not share any specifics about the van’s battery pack size, estimated range, or performance characteristics. Ford previously announced an electric Transit for the European market in 2019.
The new cargo van will come equipped with a 4G LTE hotspot and will be outfitted with a number of tech features designed for fleet managers, like live GPS tracking and diagnostics, mirroring moves by Volvo’s electric trucks aimed at connected operations. The electric Transit van will also be equipped with a number of Ford’s safety and driver assistance features, like collision warning and assist, automatic emergency braking, pedestrian detection, and automatic lane-keeping.
Ford said it didn’t have any news to share about an electric version of its Transit passenger van “at this time,” even as the market reaches an EV inflection point for adoption.
Ford’s Transit van is the bestselling cargo van in the US, though it has seen increased competition over the last few years from Mercedes-Benz, which recently refreshed its popular Sprinter van, while others pursue electrified freight like Tesla’s electric truck plans that expand options.
Mercedes-Benz has already unveiled an electric version of the Sprinter, which comes in two configurations, targeting delivery networks where UPS’s Tesla Semi orders signal growing demand. There’s a version with a 55kWh battery pack that can travel 168 kilometers (104 miles) on a full charge, and has a payload capacity of 891 kilograms (1,964 pounds). Mercedes-Benz is making a version with a smaller 41kWh battery pack that goes 115 kilometers (72 miles), but which can carry up to 1,045 (2,304 pounds). Both versions come with 10.5 cubic meters (370.8 cubic feet) of storage space.
Mercedes-Benz also announced the EQV concept a year ago, which is an electric van aimed at slightly more everyday use, reflecting broader people-moving trends as electric bus adoption faces hurdles worldwide. The company touted more promising specs with the slightly smaller EQV, saying it will get around 249 miles out of a 100kWh battery pack. Oh, and it has 200 horsepower on offer and will be equipped with the company’s MBUX infotainment system.
Another player in the space is EV startup Rivian, which will build 100,000 electric delivery vans for Amazon over the next few years. Ford has invested $500 million in Rivian, and the startup is helping build a luxury electric SUV for the automotive giant’s Lincoln brand, though the two van projects don’t seem to be related, as Ford and others also boost gas-electric hybrid strategies in the US. Ford is also collaborating with Volkswagen on commercial vans after the two companies formed a global alliance early last year.
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Wind has become the ‘most-used’ source of renewable electricity generation in the US
U.S. Wind Generation surpassed hydroelectric output in 2019, EIA data shows, becoming the top renewable electricity source, driven by PTC incentives, expanded capacity, and utility-scale projects across states, boosting the national electricity mix.
Key Points
U.S. Wind Generation is the nation's top renewable, surpassing hydro as EIA-tracked capacity grows under PTC incentives.
✅ EIA: wind topped hydro in 2019, over 300M MWh generated
✅ PTC credits spurred growth in utility-scale wind projects
✅ 103 GW installed; 77% added in the last decade
Last year saw wind power surging in the U.S. to overtake hydroelectric generation for the first time, according to data from the U.S. Energy Information Administration (EIA).
Released Wednesday, the figures from the EIA’s “Electric Power Monthly” report show that yearly wind generation hit a little over 300 million megawatt hours (MWh) in 2019. This was roughly 26 million MWh more than hydroelectric production.
Wind now represents the “most-used renewable electricity generation source” in the U.S., the EIA said, and renewables hit a 28% monthly record in April in later data.
Overall, total renewable electricity generation — which includes sources such as solar's 4.7% share in 2022 as one example, geothermal and landfill gas — at utility scale facilities hit more than 720 million MWh in 2019, compared to just under 707 million MWh in 2018. To put things in perspective, generation from coal came to more than 966 million MWh in 2019, while renewables surpassed coal in 2022 nationally according to later analyses.
According to the EIA’s “Today in Energy” briefing, which was also published Wednesday, generation from wind power has grown “steadily” across the last decade, and by 2020, renewables became the second-most prevalent source in the U.S. power mix.
This, it added, was partly down to the extension of the Production Tax Credit, or PTC, amid favorable government plans supporting solar and wind growth. According to the EIA, the PTC is a system which gives operators a tax credit per kilowatt hour of renewable electricity production. It applies for the first 10 years of a facility’s operation.
At the end of 2019, the country was home to 103 gigawatts (GW) of wind capacity, with 77% of this being installed in the last decade, and wind capacity surpassed hydro in 2016 according to industry data. The U.S. is home 80 GW of hydroelectric capacity, according to the EIA.
“The past decade saw a steady increase in wind capacity across the country and we capped the decade with a monumental achievement for the industry in reaching more than 100 GW,” Tom Kiernan, the American Wind Energy Association’s CEO, said in a statement issued Thursday.
“And more wind energy is coming, as the industry is well into investing $62 billion in new projects over the next few years that put us on the path to achieving 20 percent of the nation’s electricity mix in 2030,” Kiernan went on to state.
“As a result, wind is positioned to remain the largest renewable energy generator in the country for the foreseeable future.”
Related News
Warren Buffett’s Secret To Cheap Electricity: Wind
Berkshire Hathaway Energy Wind Power drives cheap electricity rates in Iowa via utility-scale wind turbines, integrated transmission, battery storage, and grid management, delivering renewable energy, stable pricing, and long-term rate freezes through 2028.
Key Points
A vertically integrated wind utility lowering Iowa rates via owned generation, transmission, and advanced grid control.
✅ Owned wind assets meet Iowa residential demand
✅ Integrated transmission lowers costs and losses
✅ Rate freeze through 2028 sustains cheap power
In his latest letter to Berkshire Hathaway shareholders, Warren Buffett used the 20th anniversary of Berkshire Hathaway Energy to tout its cheap electricity bills for customers.
When Berkshire purchased the majority share of BHE in 2000, the cost of electricity for its residential customers in Iowa was 8.8 cents per kilowatt-hour (kWh) on average. Since then, these electricity rates have risen at a paltry <1% per year, with a freeze on rate hikes through 2028. As anyone who pays an electricity bill knows, that is an incredible deal.
As Buffett himself notes with alacrity, “Last year, the rates [BHE’s competitor in Iowa] charged its residential customers were 61% higher than BHE’s. Recently, that utility received a rate increase that will widen the gap to 70%.”
The Winning Strategy
So, what’s Buffett’s secret to cheap electricity? Wind power.
“The extraordinary differential between our rates and theirs is largely the result of our huge accomplishments in converting wind into electricity,” Buffett explains.
Wind turbines in Iowa that BHE owns and operates are expected to generate about 25.2 million megawatt-hours (MWh) of electricity for its customers, as projects like Building Energy operations begin to contribute. By Buffett’s estimations, that will be enough to power all of its residential customers’ electricity needs in Iowa.
The company has plans to increase its renewable energy generation in other regions as well. This year, BHE Canada is expected to start construction on a 117.6MW wind farm in Alberta, Canada with its partner, Renewable Energy Systems, that will provide electricity to 79,000 homes in Canada’s oil country.
Observers note that Alberta is a powerhouse for both green energy and fossil fuels, underscoring the region's unique transition.
But I would argue that the secret to BHE’s success perhaps goes deeper than transitioning to sources of renewable energy. There are plenty of other utility companies that have adopted wind and solar power as an energy source. In the U.S., where renewable electricity surpassed coal in 2022, at least 50% of electricity customers have the option to buy renewable electricity from their power supplier, according to the Department of Energy. And some states, such as New York, have gone so far as to allow customers to pick from providers who generate their electricity.
What differentiates BHE from a lot of the competition in the utility space is that it owns the means to generate, store, transmit and supply renewable power to its customers across the U.S., U.K. and Canada, with lessons from the U.K. about wind power informing policy.
In its financial filings for 2019, the company reported that it owns 33,600MW of generation capacity and has 33,400 miles of transmission lines, as well as a 50% interest in Electric Transmission Texas (ETT) that has approximately 1,200 miles of transmission lines. This scale and integration enables BHE to be efficient in the distribution and sale of electricity, including selling renewable energy across regions.
BHE is certainly not alone in building renewable-energy fueled electricity dominions. Its largest competitor, NextEra, built 15GW of wind capacity and has started to expand its utility-scale solar installations. Duke Energy owns and operates 2,900 MW of renewable energy, including wind and solar. Exelon operates 40 wind turbine sites across the U.S. that generate 1,500 MW.
Integrated Utilities Power Ahead
It’s easy to see why utility companies see wind as a competitive source of electricity compared to fossil fuels. As I explained in my previous post, Trump’s Wrong About Wind, the cost of building and generating wind energy have fallen significantly over the past decade. Meanwhile, improvements in battery storage and power management through new technological advancements have made it more reliable (Warren Buffett bet on that one too).
But what is also striking is that integrated power and transmission enables these utility companies to make those decisions; both in terms of sourcing power from renewable energy, as well as the pricing of the final product. Until wind and solar power are widespread, these utility companies are going to have an edge of the more fragmented ends of the industry who can’t make these purchasing or pricing decisions independently.
Warren Buffett very rarely misses a beat. He’s not the Oracle of Omaha for nothing. Berkshire Hathaway’s ownership of BHE has been immensely profitable for its shareholders. In the year ended December 31, 2019, BHE and its subsidiaries reported net income attributable to BHE shareholders of $2.95 billion.
There’s no question that renewable energy will transform the utility industry over the next decade. That change will be led by the likes of BHE, who have the power to invest, control and manage their own energy generation assets.