PJM warns FERC against tweaking RPM

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PJM doesn't want to see the performance of its Reliability Pricing Model (RPM) capacity market move to a FERC technical conference that a group of buyers in the market asked the commission to set up.

The RTO is doing its own evaluation of the RPM - an independent consultant was hired to study it - and the RTO wants to take more time than the RPM buyers would have FERC spend, said PJM.

The RPM buyers include over 20 state commissions, consumers' counsels, Duquesne Light, co-ops and a group of federal agencies. They want FERC to take a hard look at the RPM markets that they say have deviated substantially from buyer's projections and PJM's simulations.

Consumers through 2011 will have to pay an extra $26 billion in costs without the benefit of significant capacity additions.

The four auctions held thus far haven't had the three-years of planning envisioned in the RPM - and that will only happen at the next auction, said PJM.

That auction will mark the first reasonable chance for new entry to meaningfully take part and should be looked at in any review of the RPM's performance.

The market has only been in place one-year and rushing to an immediate technical conference then to get new rules in place by June 1 isn't enough time, said the RTO.

Any changes to RPM structure will likely be highly contested and making those decisions hastily would only hurt the decision-making process at FERC and among stakeholders.

Market participants signed deals for capacity in the 2008 to 2009 delivery year that starts June 1 and changing the market at this point would only raise equity concerns, damage the credibility of FERC decisions on market rules and adversely affect long-term reliability, said PJM.

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Revenue from Energy Storage for Microgrids to Total More Than $22 Billion in the Next Decade

Energy Storage for Microgrids enables renewables integration via ESS, boosting resilience and reliability while supporting solar PV and wind, innovative financing, and business models, with strong growth forecast across Asia-Pacific and North America.

 

Key Points

Systems that store energy in microgrids to integrate renewables, boost resilience, and optimize distributed power.

✅ Integrates solar PV and wind with stable, dispatchable output

✅ Reduces costs via new financing and service business models

✅ Expands reliable power for remote, grid-constrained regions

 

A new report from Navigant Research examines the global market for energy storage for microgrids (ESMG), providing an analysis of trends and market dynamics in the context of the evolving digital grid landscape, with forecasts for capacity and revenue that extend through 2026.

Interest in energy storage-enabled microgrids is growing alongside an increase in solar PV and wind deployments. Although not required for microgrids to operate, energy storage systems (ESSs) have emerged as an increasingly valuable component of distributed energy networks, including virtual power plants that coordinate distributed assets, because of their ability to effectively integrate renewable generation.

“There are several key drivers resulting in the growth of energy storage-enabled microgrids globally, including the desire to improve the resilience of power supply both for individual customers and the entire grid, the need to expand reliable electricity service to new areas, rising electricity prices, and innovations in business models and financing,” says Alex Eller, research analyst with Navigant Research. “Innovations in business models and financing will likely play a key role in the expansion of the ESMG market during the coming years.”

One example of microgrid deployment for resilience is the SDG&E microgrid in Ramona built to help communities prepare for peak wildfire season.

According to the report, the most successful companies in this industry will be those that can unlock the potential of new business models to reduce the risk and upfront costs to customers. This is particularly true in Asia Pacific and North America, which are projected to be the largest regional markets for new ESMG capacity by far, a trend underscored by California's push for grid-scale batteries to stabilize the grid.

The report, “Market Data: Energy Storage for Microgrids,” outlines the key market drivers and barriers within the global ESMG market. The study provides an analysis of specific trends, including evolving grid edge trends, and market dynamics for each major world region to illustrate how different markets are taking shape. Global ESMG forecasts for capacity and revenue, segmented by region, technology, and market segment, extend through 2026. The report also briefly examines the major technology issues related to ESSs for microgrids.

Google made energy storage news recently when its parent company Alphabet announced it is hoping to revolutionize renewable energy storage using vats of salt and antifreeze. Alphabet’s secretive research lab, simply named “X,” is developing a system for storing renewable energy that would otherwise be wasted. The project, named “Malta,” is hoping its energy storage systems “has the potential to last longer than lithium-ion batteries and compete on price with new hydroelectric plants and other existing clean energy storage methods, according to X executives and researchers,” reports Bloomberg.

 

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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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Some old dams are being given a new power: generating clean electricity

Hydroelectric retrofits for unpowered dams leverage turbines to add renewable capacity, bolster grid reliability, and enable low-impact energy storage, supporting U.S. and Canada decarbonization goals with lower costs, minimal habitat disruption, and climate resilience.

 

Key Points

They add turbines to existing dams to make clean power, stabilize the grid, and offer low-impact storage at lower cost.

✅ Lower capex than new dams; minimal habitat disruption

✅ Adds firming and storage to support wind and solar

✅ New low-head turbines unlock more retrofit sites

 

As countries race to get their power grids off fossil fuels to fight climate change, there's a big push in the U.S. to upgrade dams built for purposes such as water management or navigation with a feature they never had before — hydroelectric turbines. 

And the strategy is being used in parts of Canada, too, with growing interest in hydropower from Canada supplying New York and New England.

The U.S. Energy Information Administration says only three per cent of 90,000 U.S. dams currently generate electricity. A 2012 report from the U.S. Department of Energy found that those dams have 12,000 megawatts (MW) of potential hydroelectric generation capacity. (According to the National Hydropower Association, 1 MW can power 750 to 1,000 homes. That means 12,000 MW should be able to power more than nine million homes.)

As of May 2019, there were projects planned to convert 32 unpowered dams to add 330 MW to the grid over the next several years.

One that was recently completed was the Red Rock Hydroelectric Project, a 60-year-old flood control dam on the Des Moines River in Iowa that was retrofitted in 2014 to generate 36.4 MW at normal reservoir levels, and up to 55 MW at high reservoir levels and flows. It started feeding power to the grid this spring, and is expected to generate enough annually to supply power to 18,000 homes.

It's an approach that advocates say can convert more of the grid from fossil fuels to clean energy, often with a lower cost and environmental impact than building new dams.

Hydroelectric facilities can also be used for energy storage, complementing intermittent clean energy sources such as wind and solar with pumped storage to help maintain a more reliable, resilient grid.

The Nature Conservancy and the World Wildlife Fund are two environmental groups that oppose new hydro dams because they can block fish migration, harm water quality, damage surrounding ecosystems and release methane and CO2, and in some regions, Western Canada drought has reduced hydropower output as reservoirs run low. But they say adding turbines to non-powered dams can be part of a shift toward low-impact hydro projects that can support expansion of solar and wind power.

Paul Norris, president of the Ontario Waterpower Association, said there's typically widespread community support for such projects in his province amid ongoing debate over whether Ontario is embracing clean power in its future plans. "Any time that you can better use existing assets, I think that's a good thing."

New turbine technology means water doesn't need to fall from as great a height to generate power, providing opportunities at sites that weren't commercially viable in the past, Norris said, with recent investments such as new turbines in Manitoba showing what is possible.

In Ontario, about 1,000 unpowered dams are owned by various levels of government. "With the appropriate policy framework, many of these assets have the potential to be retrofitted for small hydro," Norris wrote in a letter to Ontario's Independent Electricity System Operator this year as part of a discussion on small-scale local energy generation resources.

He told CBC that several such projects are already in operation, such as a 950 kW retrofit of the McLeod Dam at the Moira River in Belleville, Ont., in 2008. 

Four hydro stations were going to be added during dam refurbishment on the Trent-Severn Waterway, but they were among 758 renewable energy projects cancelled by Premier Doug Ford's government after his election in 2018, a move examined in an analysis of Ontario's dirtier electricity outlook and its implications.

Patrick Bateman, senior vice-president of Waterpower Canada, said such dam retrofit projects are uncommon in most provinces. "I don't see it being a large part of the future electricity generation capacity."

He said there has been less movement on retrofitting unpowered dams in Canada compared to the U.S., because:

There are a lot more opportunities in Canada to refurbish large, existing hydro-generating stations to boost capacity on a bigger scale.

There's less growth in demand for clean energy, because more of Canada's grid is already non-carbon-emitting (80 per cent) compared to the U.S. (40 per cent).

Even so, Norris thinks Canadians should be looking at all opportunities and options when it comes to transitioning the grid away from fossil fuels, including retrofitting non-powered dams, especially as a recent report highlights Canada's looming power problem over the coming decades.

"If we're going to be serious about addressing the inevitable challenges associated with climate change targets and net zero, it really is an all-of-the-above approach."

 

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Florida PSC approves Gulf Power’s purchase of renewable energy produced at municipal solid waste plant

Gulf Power renewable energy contract underscores a Florida PSC-approved power purchase from Bay County's municipal solid waste plant, delivering 13.65 MW at a fixed price, boosting fuel diversity, lowering landfill waste, and saving customers money.

 

Key Points

A fixed-price PPA for 13.65 MW from Bay County's waste-to-energy plant, approved by Florida PSC to cut costs.

✅ Fixed-price purchase; pay only for energy produced.

✅ 13.65 MW from Bay County waste-to-energy facility.

✅ Cuts landfill waste and natural gas dependency.

 

The Florida Public Service Commission (PSC) approved Tuesday a contract under which Gulf Power Company will purchase all the electricity generated by the Bay County Resource Recovery Facility, a municipal solid waste plant, similar to SaskPower-Manitoba Hydro deal structures seen elsewhere, over the next six years.

“Gulf’s renewable energy purchase promotes Florida’s fuel diversity, further reducing our dependency on natural gas,” PSC Chairperson Julie Brown said. “This renewable energy option also reduces landfill waste, saves customers money, and serves the public interest.”

The contract provides for Gulf to acquire the Panama City facility’s 13.65 megawatts of renewable generation for its customers beginning in July 2017. Gulf will pay a fixed price, aligned with approaches in Alberta's clean electricity RFP programs, and only pays for the energy produced. The contract is expected to save approximately $250,000 and provides security for customers, a contrast to overruns at the Kemper power plant project, because if the plant does not supply energy, Gulf does not have to provide payment.

This contract is the third renewable energy contract between Gulf and Bay County, at a time when the Southern California plant closures may be postponed, continuing agreements approved in 2008 and 2014. In making the decision, the PSC considered Gulf’s need for power and developments such as the Turkey Point license renewal process, as well as the contract’s cost-effectiveness, payment provisions, and performance guarantees, as required by rule.

 

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Tens of Thousands Left Without Power as 'Bomb Cyclone' Strikes B.C. Coast

British Columbia Bomb Cyclone disrupts coastal travel with severe wind gusts, heavy rainfall, widespread power outages, ferry cancellations, flooding, and landslides across Vancouver Island, straining emergency services and transport networks during the early holiday season.

 

Key Points

A rapidly intensifying storm hitting B.C.'s coast, causing damaging winds, heavy rain, power outages, and ferry delays.

✅ Wind gusts over 100 km/h and well above normal rainfall

✅ Power outages, flooded roads, and downed trees across the coast

✅ Ferry cancellations isolating communities and delaying supplies

 

A powerful storm, dubbed a "bomb cyclone," recently struck the British Columbia coast, wreaking havoc across the region. This intense weather system led to widespread disruptions, including power outages affecting tens of thousands of residents and the cancellation of ferry services, crucial for travel between coastal communities. The bomb cyclone is characterized by a rapid drop in pressure, resulting in extremely strong winds and heavy rainfall. These conditions caused significant damage, particularly along the coast and on Vancouver Island, where flooding and landslides led to fallen trees blocking roads, further complicating recovery efforts.

The storm's ferocity was especially felt in coastal areas, where wind gusts reached over 100 km/h, and rainfall totals were well above normal. The Vancouver region, already susceptible to storms during the winter months, faced dangerous conditions as power lines were downed, and transportation networks struggled to stay operational. Emergency services were stretched thin, responding to multiple weather-related incidents, including fallen trees, damaged infrastructure, and local flooding.

The ferry cancellations further isolated communities, especially those dependent on these services for essential supplies and travel. With many ferry routes out of service, residents had to rely on alternative transportation methods, which were often limited. The storm's timing, close to the start of the holiday season, also created additional challenges for those trying to make travel arrangements for family visits and other festive activities.

As cleanup efforts got underway, authorities warned that recovery would take time, particularly due to the volume of downed trees and debris. Crews worked to restore power and clear roads, while local governments urged people to stay indoors and avoid unnecessary travel, and BC Hydro's winter payment plan provided billing relief during outages. For those without power, the storm brought cold temperatures, and record electricity demand in 2021 showed how cold snaps strain the grid, making it crucial for families to find warmth and supplies.

In the aftermath of the bomb cyclone, experts highlighted the increasing frequency of such extreme weather events, driven in part by climate change and prolonged drought across the province. With the potential for more intense storms in the future, the region must be better prepared for these rapid weather shifts. Authorities are now focused on bolstering infrastructure to withstand such events, as all-time high demand has strained the grid recently, and improving early warning systems to give communities more time to prepare.

In the coming weeks, as British Columbia continues to recover, lessons learned from this storm will inform future responses to similar weather systems. For now, residents are advised to remain vigilant and prepared for any additional weather challenges, with recent blizzard and extreme cold in Alberta illustrating how conditions can deteriorate quickly.

 

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China aims to reduce coal power production

China Coal-Fired Power Consolidation targets capacity cuts through mergers, SASAC-led restructuring, debt reduction, asset optimization, and retiring inefficient plants across state-owned utilities to improve efficiency, stabilize liabilities, and align with energy transition policies.

 

Key Points

A SASAC-driven plan merging utility assets to cut coal capacity, reduce debt, and retire outdated, loss-making plants.

✅ Merge five central utilities' coal assets to streamline operations

✅ Target 25-33% capacity cuts and >50% loss reduction by 2021

✅ Prioritize debt-ridden regions: Gansu, Shaanxi, Xinjiang, Qinghai, Ningxia

 

China plans to slash coal-fired power capacity at its five biggest utilities by as much as a third in two years by merging their assets, amid broader power-sector strains that reverberate globally, according to a document seen by Reuters and four sources with knowledge of the matter.

The move to shed older and less-efficient capacity is being driven by pressure to cut heavy debt levels at the utilities. China, is, however, building more coal-fired power plants and approving dozens of new mines to bolster a slowing economy, even as recent power cuts highlight grid imbalances.

The five utilities, which are controlled by the central government, accounted for around 44% of China’s total coal-fired power capacity at the end of 2018, a share likely to be tested by rising electrification goals, with electricity to meet 60% by 2060 according to industry forecasts.

“(The utilities) will strive to reduce coal-fired power capacity by one quarter to one third ...cutting total losses by more than 50% from the current level to achieve a significant decline in debt-to-asset ratios by the end of 2021,” the document said.

The plan, initiated and overseen by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), follows heavy losses at some of the utilities, amid a pandemic-era demand drop that hit industrial consumption.

Some of their coal-fired power stations have filed for bankruptcy in recent years as Beijing promotes the use of renewable energy and advances its nuclear program while opening up the state-controlled power market.

The SASAC did not immediately respond to a fax seeking comment and the sources declined to be identified as they were not authorised to speak to the media.

The utilities - China Huaneng Group Co, China Datang Corp, China Huadian Corp, State Power Investment Corp and China Energy Group - did not respond to faxes requesting comment.

Together, they had 474 coal-fired power plants with combined power generation capacity of 520 gigawatts (GW) at the end of last year.

Their coal-fired power assets came to 1.5 trillion yuan ($213 billion) while total coal-fired power liabilities were 1.1 trillion yuan, the document said.

The document was seen by two people at two of the utilities and was also verified by a source at SASAC and a government researcher.

It was not clear when the document was published but it said the merging and elimination of outdated capacity would start from 2019 and be achieved within three years, aiming to improve the efficiency and operations at the companies, reflecting a broader electricity sector mystery that policymakers are trying to resolve.

Utilities with debt-ridden operations in the northwestern regions of Gansu, Shaanxi, Xinjiang, Qinghai and Ningxia would be the first to carry out the plan, it said, even as India ration coal supplies during demand surges.

The government researcher said the SASAC has been researching possible consolidation in the coal-fired power sector since 2017, but added: “It’s easier said than done.”

“No one is willing to hand in their high quality assets and there is no point in merging the bad assets,” the government researcher said.

 

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