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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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Alberta Clean Electricity Regulations face federal mandates and provincial autonomy, balancing greenhouse gas cuts, net-zero 2050 goals, and renewable energy adoption across wind, solar, and hydro, while protecting jobs and economic stability in energy communities.

Key Points

Rules to cut power emissions, boost renewables, and align Alberta with federal net-zero goals under federal mandates.

✅ Phases out coal and curbs greenhouse gas emissions

✅ Expands wind, solar, and hydro to diversify the grid

✅ Balances provincial autonomy with national climate targets

In a recent development, Alberta finds itself at a crossroads between provincial autonomy and federal mandates concerning federal clean electricity regulations that shape long-term planning. The province, known for its significant oil and gas industry, faces increasing pressure to align its energy policies with federal climate goals set by Ottawa.

The federal government, under the leadership of Environment Minister Steven Guilbeault, has proposed regulations aimed at reducing greenhouse gas emissions and transitioning towards a cleaner energy future that prioritizes clean grids and batteries across provinces. These regulations are part of Canada's broader commitment to combat climate change and achieve net-zero emissions by 2050.

The Federal Perspective

From Ottawa's standpoint, stringent regulations on Alberta's electricity sector are necessary to meet national climate targets. This includes measures to phase out coal-fired power plants and increase reliance on renewable energy sources such as wind, solar, and hydroelectric power. Minister Guilbeault emphasizes the importance of these regulations in mitigating Canada's carbon footprint and fostering sustainable development.

Alberta's Response

In contrast, Alberta has historically championed provincial autonomy in energy policy, leveraging its vast fossil fuel resources to drive economic growth. The province remains cautious about federal interventions that could potentially disrupt its energy sector, a cornerstone of its economy, especially amid changes to how electricity is produced and paid for now under discussion.

Premier Jason Kenney has expressed concerns over federal overreach, and his influence over electricity policy has shaped proposals in the legislature. He emphasizes the province's efforts in adopting cleaner technologies while balancing economic stability and environmental sustainability.

The Balancing Act

The challenge lies in finding a middle ground between federal imperatives and provincial priorities, as interprovincial disputes like B.C.'s export-restriction challenge complicate coordination. Alberta acknowledges the need to diversify its energy portfolio and reduce emissions but insists on preserving its jurisdiction over energy policy. The province has already made strides in renewable energy development, including investing in wind and solar projects alongside traditional energy sources.

Economic Implications

For Alberta, the transition to cleaner electricity carries significant economic implications as the electricity market heads for a reshuffle in the coming years. It entails navigating the complexities of energy transition, ensuring job retention, and fostering innovation in sustainable technologies. Critics argue that abrupt federal regulations could exacerbate economic hardships, particularly in communities reliant on the fossil fuel industry.

Moving Forward

As discussions continue between Alberta and Ottawa, finding common ground, including consideration of recent market change proposals from the province, remains essential. Collaborative efforts are necessary to develop tailored solutions that accommodate both environmental responsibilities and economic realities. This includes exploring incentives for renewable energy investment, supporting energy sector workers in transitioning to new industries, and leveraging Alberta's expertise in energy innovation.

Conclusion

Alberta's journey towards clean electricity regulation exemplifies the delicate balance between regional autonomy and federal oversight in Canada's complex federal system. While tensions persist between provincial and federal priorities, both levels of government share a common commitment to addressing climate change and advancing sustainable energy solutions.

The outcome of these negotiations will not only shape Alberta's energy landscape but also influence Canada's overall progress towards a greener future. Finding equitable solutions that respect provincial autonomy while achieving national environmental goals remains paramount in navigating this evolving policy landscape.

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Florida Electricity Deregulation Ruling highlights the Florida Supreme Court decision blocking a ballot measure on retail choice, preserving utility monopolies for NextEra and Duke Energy, while similar deregulation efforts arise in Virginia and Arizona.

Key Points

A high court decision removing a retail choice ballot measure, keeping Florida utility monopolies intact for incumbents.

✅ Petition language deemed misleading for 2020 ballot

✅ Preserves NextEra and Duke Energy market dominance

✅ Similar retail choice pushes in VA and AZ

Florida’s top court ruled against a proposed constitutional amendment that would have allowed customers to pick their electricity provider, even as Florida solar incentives face rejection by state leaders, threatening monopolies held by utilities such as NextEra Energy Inc. and Duke Energy Corp.

In a ruling Thursday, the court said the petition’s language is “misleading” and doesn’t comply with requirements to be included on the 2020 ballot, reflecting debates over electricity pricing changes at the federal level. The measure’s sponsor, Citizens for Energy Choice, said the move ends the initiative, even as electricity future advocacy continues nationwide.

“While we were confident in our plan to gather the remaining signatures required, we cannot overcome this last obstacle,” the group’s chair, Alex Patton, noting ongoing energy freedom in the South efforts, said in a statement.

The proposed measure was one of several efforts underway to deregulate U.S. electricity markets, including New York’s review of retail energy markets this year. Earlier this week, two Virginia state lawmakers unveiled a bill to allow residents and businesses to pick their electricity provider, threatening Dominion Energy Inc.’s longstanding local monopoly. And in Arizona, where Arizona Public Service Co. has long reigned, regulators are considering a similar move, while in New England Hydro-Quebec’s export bid has been energized by a court decision.

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V.C. Summer nuclear plant leak update: Dominion Energy repaired a valve in the reactor cooling system; radioactive water stayed within containment, NRC oversight continues as power output ramps toward full operation.

Key Points

A minor valve leak in the reactor cooling system contained onsite; Dominion repaired it as the plant resumes power.

✅ Valve leak in piping to steam generators, not environmental release.

✅ Radioactive water remained in containment, monitored per NRC rules.

✅ Plant ramping from 17% power; full operations may take days.

The V.C. Summer nuclear power plant, which has been shut down since early November because of a pipe leak, is expected to begin producing energy in a few days, a milestone comparable to a new U.S. reactor startup reported recently.

Dominion Energy says it has fixed the small leak in a pipe valve that allowed radioactive water to drip out. The company declined to say when the plant would be fully operational, but spokesman Ken Holt said that can take several days, amid broader discussions about the stakes of early nuclear closures across the industry.

The plant was at 17 percent power Wednesday, he said, as several global nuclear project milestones continue to be reported this year.

Holt, who said Dominion is still investigating the cause, said water that leaked was part of the reactor cooling system. While the water came in contact with nuclear fuel in the reactor, the water never escaped the plant's containment building and into the environment, Holt said.

He characterized the valve leak as '"uncommon" but not unexpected. The nuclear leak occurred in piping that links the nuclear reactor with the power plant's steam generators. Hundreds of pipes are in that part of the nuclear plant, a complexity often cited in the energy debate over struggling nuclear plants nationwide.

"There is always some level of leakage when you are operating, but it is contained and monitored, and when it rises to a certain level, you may take action to stop it," Holt said.

A nuclear safety watchdog has criticized Dominion for not issuing a public notice about the leak, but both the company and the U.S. Nuclear Regulatory Commission say the amount was so small it did not require notice.

The V.C. Summer Nuclear plant is about 25 miles northwest of Columbia in Fairfield County. It was licensed in the early 1980s. At one point, Dominion's predecessor, SCE&G, partnered with state owned Santee Cooper to build two more reactors there, even as new reactors in Georgia were taking shape. But the companies walked away from the project in 2017, citing high costs and troubles with its chief contractor, Westinghouse, even as closures such as Three Mile Island's shutdown continued to influence policy.

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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.

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Kenya Power token glitches, inflated bills disrupt prepaid meters via M-Pesa paybill 888880 and third-party vendors like Vendit and Dynamo, causing delays, fast-depleting tokens, and billing estimates; customers report weekend outages and business losses.

Key Points

Service failures delaying token generation and disputed charges from estimated meter readings and slow processing.

✅ Impacts M-Pesa paybill 888880 and authorized third-party vendors

✅ Causes delays, fast-depleting tokens, weekend business closures

✅ Linked to system downtime, billing estimates, meter reading gaps

Kenya Power is again on the spotlight following claims of inflated power bills and a glitch in its electronic payment system that made it impossible to top up tokens on prepaid meters.

Thousands of customers started experiencing the hitch in tokens generation on Friday evening, with the problem extending through the weekend.

Small businesses such as barber shops that top up multiple times a week were hardest hit.

“My business usually thrives during weekends but I was forced to close early in the evening due to lack of power although I had paid for the tokens that were never generated,” said Mr John Kamau, a fast food restaurant owner in Nairobi.

Kenya Power processes up to 200,000 electronic transactions per day for power users, with 85 per cent done through its Safaricom M-Pesa paybill number 888880.

The remaining share is handled by its authorised third party vendors such as Vendit (paybill number 501200) and Dynamo (800904), which charge a premium for the transaction.

The sole electricity distributor admitted its system encountered challenges that crippled token generation across all vendors, advising customers on prepaid meters to buy the units from Kenya Power banking halls across the country until normalcy returned.

STATEMENT

“The IT team is trying to figure out where the problem was before we issue a comprehensive statement on the issue,” the firm responded to Nation queries, adding that the issue had been resolved by yesterday afternoon.

Customers who use Vendit confirmed to Nation they had successfully bought tokens yesterday afternoon.

However, there have been complaints that third party vendors process tokens almost in real time, unlike Kenya Power which, despite indicating a 30 minute delay in its service promise, sometimes takes up to six hours.  

But other users complained of inflated power bills after being slapped with abnormally high charges.

TOKENS

The holder of account number 30624694, for instance, received a post-paid bill of Sh16,765 last month, up from Sh894 the previous month.

She indulged the company and ended up paying just over Sh1,000.

There have also been complaints of tokens getting depleted too fast. For instance, one customer who normally uses Sh4,000 per month complained of her credit running out in a week.

Kenya Power maintains it cannot read all post-paid meters across the country, compelling it to make estimates for a number of customers.

The company argues it is not cost-effective to have meter readers go to all homes. The firm recently indicated plans to put all domestic consumers on prepaid meters to reduce non-payment of electricity bills and cut operation costs on meter reading and postage.

POWER CONSUMPTION

The Nairobi Securities Exchange-listed firm has also adopted a new integrated customer management system to enable consumers to self-check their power consumption and understand their electricity bill and payment obligations through a phone app.

In the past, concerns have been rife that customers often encounter delays when buying tokens through paybill number 888880, unlike through other vendors.

This has raised questions on the ownership of the vendors and the cash commissions they are entitled to, with holiday scam warnings circulating in some markets as well.

FOUL PLAY

Kenya Power has, however, denied any foul play, saying the authorisation of other vendors was to ease pressure on its payment channel, which handles 85 per cent of the nearly 200,000 transactions per day.

“In fact we have 11 vendors, including Equitel, it’s just that people are only aware of Vendit and Dynamo because they have been aggressive in their marketing,” the company said.

Kenya Power has been battling court cases over inflated power bills after it emerged that the utility firm was backdating bills worth Sh10.1 billion from last November.

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