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Energy Transition Grid Reforms address transmission capacity, interconnection, congestion management, and flexibility markets, enabling renewable integration and grid stability while optimizing network charges and access in Australia, Ireland, and Great Britain.

Key Points

Measures to expand transmission, boost flexibility, and manage congestion for reliable, low-carbon electricity systems.

✅ Transmission upgrades and interconnectors ease congestion

✅ Flexible markets, DER, and storage bolster grid stability

✅ Evolving network charges and access incentivize siting

Electricity networks globally are experiencing significant increases in the volume of renewable capacity as countries seek to decarbonise their power sectors, even as clean energy's 'dirty secret' highlights integration trade-offs, without impacting the security of supply. The scale of this change is creating new challenges for power networks and those responsible for keeping the lights on.

The latest insight paper from Cornwall Insight – Market design amidst global energy transition – looks into this issue. It examines the outlook for transmission networks, and how legacy design and policies are supporting decarbonisation, aligning with IRENA findings on renewables and shaping the system. The paper focuses on three key markets; Australia, Ireland and Great Britain (GB).

Australia's main priority is to enhance transmission capacity and network efficiency; as concerns over excess solar risking blackouts grow in distribution networks, without this, the transmission system will be a barrier to growth for decentralised flexibility and renewables. In contrast, GB and Ireland benefit from interconnection with other national markets. This provides them with additional levers that can be pulled to manage system security and supply. However, they are still trying to hone and optimise network flexibility in light of steepening decarbonisation objectives.

Unsurprisingly, renewable energy resources have been growing in all three markets, with Ireland regarded as a leader in grid integration, with this expected to continue for the foreseeable future. Many of these projects are often located in places where network infrastructure is not as well developed, creating pressure on system operation as a result.

In all three markets, unit charges are rising, driven by a reduced charging base as decentralised energy grows quickly. This combination of changes is leading to network congestion, a challenge mirrored by the US grid overhaul for renewables underway, as transmission network development struggles to keep up, and flexibility markets are being optimised and changed.

In summary, reforms are on-going in each jurisdiction to accommodate the rapid physical transformation of the generation mix. Each has its objectives and tensions which are reflective of wider global reform programmes being undertaken in most developed, liberalised and decarbonising energy markets.

Gareth Miller, CEO of Cornwall Insight, said: “Despite differences in market design and characteristics, all three markets are grappling with similar issues, that comes from committing to deep decarbonisation. This includes the most appropriate methods for charging for networks, managing access to them and dealing with issues such as network congestion and constraint.

“In all three countries, renewable projects are often placed in isolated locations, as seen in Scotland where more pylons are needed to keep the lights on, away from the traditional infrastructure that is closer to demand. However, as renewable growth is set to continue, the networks will need to transition from being demand-centric to more supply orientated.

“Both system operators and stakeholders will need to continually evaluate their market structures and designs to alleviate issues surrounding locational congestion and grid stability. Each market is at very different stages in the process in trying to improve any problems implementing solutions to allow for higher efficiencies in renewable energy integration.

“It is uncertain whether any of the proposed changes will fundamentally resolve the issues that come with increased renewables on the system. However, despite marked differences, they certainly could all learn from each other and elements of their network arrangements, as well as from US decarbonisation strategies research.”

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North American Grid Reliability faces extreme weather, climate change, demand spikes, and renewable variability; utilities, AESO, and NERC stress resilience, dispatchable capacity, interconnections, and grid alerts to prevent blackouts during heatwaves and cold snaps.

Key Points

North American grid reliability is the ability to meet demand during extreme weather while maintaining stability.

✅ Extreme heat and cold drive record demand and resource strain.

✅ Balance dispatchable and intermittent generation for resilience.

✅ Expand interconnections, capacity, and demand response to avert outages.

The recent alerts in Alberta's electricity grid during extreme cold have highlighted a broader North American issue, where power systems are more susceptible to being overwhelmed by extreme weather impacts on reliability.

Electricity Canada's chief executive emphasized that no part of the grid is safe from the escalating intensity and frequency of weather extremes linked to climate change across the sector.

“In recent years, during these extreme weather events, we’ve observed record highs in electricity demand,” he stated.

“It’s a nationwide phenomenon. For instance, last summer in Ontario and last winter in Quebec, we experienced unprecedented demand levels. This pattern of extremes is becoming more pronounced across the country.”

The U.S. has also experienced strain on its electricity grids due to extreme weather, with more blackouts than peers documented in studies. Texas faced power outages in 2021 due to winter storms, and California has had to issue several emergency grid alerts during heat waves.

In Canada, Albertans received a government emergency alert two weeks ago, urging an immediate reduction in electricity use to prevent potential rotating blackouts as temperatures neared -40°C. No blackouts occurred, with a notable decrease in electricity use following the alert, according to the Alberta Electric System Operator (AESO).

AESO's data indicates an increase in grid alerts in Alberta for both heatwaves and cold spells, reflecting dangerous vulnerabilities noted nationwide. The period between 2017 and 2020 saw only four alerts, in contrast to 17 since 2021.

Alberta's electricity grid reliability has sparked political debate, including proposals for a western Canadian grid to improve reliability, particularly with the transition from coal-fired plants to increased reliance on intermittent wind and solar power. Despite this debate, the AESO noted that the crisis eased when wind and solar generation resumed, despite challenges with two idled gas plants.

Bradley pointed out that Alberta's grid issues are not isolated. Every Canadian region is experiencing growing electricity demand, partly due to the surge in electric vehicles and clean energy technologies. No province has a complete solution yet.

“Ontario has had to request reduced consumption during heatwaves,” he noted. “Similar concerns about energy mix are present in British Columbia or Manitoba, especially now with drought affecting their hydro-dependent systems.”

The North American Electric Reliability Corporation (NERC) released a report in November warning of elevated risks across North America this winter for insufficient energy supplies, particularly under extreme conditions like prolonged cold snaps.

While the U.S. is generally more susceptible to winter grid disruptions, and summer blackout warnings remain a concern, the report also highlights risks in parts of Canada. Saskatchewan faces a “high” risk due to increased demand, power plant retirements, and maintenance, whereas Quebec and the Maritimes are at “elevated risk.”

Mark Olson, NERC’s manager of reliability assessments, mentioned that Alberta wasn't initially considered at risk, illustrating the challenges in predicting electricity demand amid intensifying extreme weather.

Rob Thornton, president and CEO of the International District Energy Association, acknowledged public concerns about grid alerts but reassured that the risk of a catastrophic grid failure remains very low.

“The North American grid is exceptionally reliable. It’s a remarkably efficient system,” he said.

However, Thornton emphasized the importance of policies for a resilient and reliable electricity system through 2050 and beyond. This involves balancing dispatchable and intermittent electricity sources, investing in extra capacity, enhancing macrogrids and inter-jurisdictional connections, and more.

“These grid alerts raise awareness, if not anxiety, about our energy future,” Thornton concluded.

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DOE Grid Resilience Pricing Rule faces FERC review as energy groups challenge an expedited timeline to reward coal and nuclear for reliability in wholesale markets, impacting natural gas, renewables, baseload economics, and grid pricing.

Key Points

A DOE proposal directing FERC to compensate coal and nuclear plants for reliability attributes in wholesale markets.

✅ Industry coalition seeks normal FERC timeline and review

✅ Impacts wholesale pricing, baseload economics, reliability

✅ Request for 90-day comments and reply period

A coalition of 11 industry groups is pushing back on Energy Secretary Rick Perry's efforts to quickly implement a major change to the way electric power is priced in the United States.

The Energy Department on Friday proposed a rule that stands to bolster coal and nuclear power plants by forcing the regional markets that set electricity prices to compensate them for the reliability they provide. Perry asked the Federal Energy Regulatory Commission to consider and finalize the rule within 60 days, including a 45-day period during which stakeholders can issue comments.

On Monday, groups representing petroleum, natural gas, electric power and renewable energy interests including ACORE urged FERC to reject the expedited process, as well as the Department of Energy's request that the regulatory commission consider putting in place an interim rule.

They say the time frame is "aggressive" and the department didn't provide adequate justification for fast-tracking a process that could have huge impacts on wholesale electricity markets.

"This is one of the most significant proposed rules in decades related to the energy industry and, if finalized, would unquestionably have significant ramifications for wholesale markets under the Commission's jurisdiction," the groups said in the motion filed with FERC.

"The Energy Industry Associations urge the Commission to reject the proposed unreasonable timelines and instead proceed in a manner that would afford meaningful consideration of public comments and be consistent with the normal deliberative process that it typically affords such major undertakings," they said.

The groups are requesting a 90-day comment period, as well as another period for reply comments. FERC, which has authority to regulate interstate transmission and sale of electricity and natural gas, is not required to decide in favor of the rule but, amid a recent FERC decision that drew industry criticism, must consider it.

Expediting the process or imposing an interim rule is generally limited to emergencies, the groups said. The Energy Department's letter to FERC does not even attempt to establish that an immediate threat to U.S. electricity reliability exists, they allege.

• A coalition of energy industry groups asked regulators to reject a rule proposed by the U.S. Department of Energy on Friday.
• The rule would bolster coal-fired and nuclear power plants by requiring wholesale markets to compensate them for certain attributes.
• The groups say the Energy Department proposed "unreasonable timelines" for stakeholders to offer feedback on a rule with "significant ramifications for wholesale markets."

The groups cite a recent Energy Department report on grid reliability that concluded: "reliability is adequate today despite the retirement of 11 percent of the generating capacity available in 2002, as significant additions from natural gas, wind, and solar have come online since then."

The Department of Energy did not return a request for comment.

The Energy Department's rule marks a flashpoint in the battle between natural gas-fired and renewable energy and so-called baseload power sources like coal and nuclear.

Separately, coal and business groups have supported the EPA in litigation over the Affordable Clean Energy rule, as documented in legal challenges brought during the rule's defense.

Gas, wind and solar power have eaten into coal and nuclear's share of U.S. electric power generation in recent years. That is thanks to a boom in U.S. gas production that has pushed down prices, the rapid adoption of subsidized renewable energy and President Barack Obama's efforts to mitigate emissions from power plants, which the Trump administration has sought to replace with a tune-up as policies shift.

Electric power is priced in deregulated, wholesale markets in many parts of the country. Utilities typically draw on the cheapest power sources first.

Some worry that the retirement of coal-fired and nuclear power plants undermines the nation's ability to reliably and affordably deliver electricity to households and businesses.

President Donald Trump has vowed to revive the ailing coal industry, declaring an end to the 'war on coal' in public remarks. Trump, Perry and other administration officials reject the consensus among climate scientists that carbon emissions from sources like coal-fired plants are the primary cause of global warming.

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MidAmerican Energy Wind XI expands Iowa wind power with the Beaver Creek and Prairie farms, 169 turbines and 338 MW, delivering renewable energy, grid reliability, rural jobs, and long-term tax revenue through major investment.

Key Points

MidAmerican Energy Wind XI is a $3.6B Iowa wind buildout adding 2,000 MW to enhance reliability, jobs, and tax revenue.

✅ 169 turbines at Beaver Creek and Prairie deliver 338 MW.

✅ Wind supplies 36.6 percent of Iowa electricity generation.

✅ Projects forecast $62.4M in property taxes over 20 years.

Power company MidAmerican Energy recently announced the beginning of operations at two huge wind farms in the US state of Iowa.

The two projects, called Beaver Creek and Prairie, total 169 turbines and have a combined capacity of 338 megawatts (MW), enough to meet the annual electricity needs of 140,000 homes in the state.

“We’re committed to providing reliable service and outstanding value to our customers, and wind energy accomplishes both,” said Mike Fehr, vice president of resource development at MidAmerican. “Wind energy is good for our customers, and it’s an abundant, renewable resource that also energizes the economy.”

The wind farms form part of MidAmerican Energy’s major Wind XI project, which will see an extra 2,000MW of wind power built, and $3.6 billion invested amid notable wind farm acquisitions shaping the market by the end of 2019. The company estimates it is the largest economic development project in Iowa’s history.

Iowa is something of a hidden powerhouse in American wind energy. The technology provides an astonishing 36.6 percent of the state’s entire electricity generation and plays a growing role in the U.S. electricity mix according to the American Wind Energy Association (AWEA). It also has the second largest amount of installed capacity in the nation at 6917MW; Texas is first with over 21,000MW.

Along with capital investment, wind power brings significant job opportunities and tax revenues for the state. An estimated 9,000 jobs are supported by the industry, something a U.S. wind jobs forecast stated could grow to over 15,000 within a couple of years.

MidAmerican Energy is also keen to stress the economic benefits of its new giant projects, claiming that they will bring in $62.4 million of property tax revenue over their 20-year lifetime.

Tom Kiernan, AWEA’s CEO, revealed last year that, as the most-used source of renewable electricity in the U.S., wind energy is providing more than five states in the American Midwest with over 20 percent of electricity generation, “a testament to American leadership and innovation”.

“For these states, and across America, wind is welcome because it means jobs, investment, and a better tomorrow for rural communities”, he added.

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China Nuclear Power Expansion accelerates with reactor approvals, Hualong One and CAP1400 deployments, rising gigawatts, clean energy targets, carbon neutrality goals, and grid reliability benefits to meet coastal demand and reduce emissions.

Key Points

An accelerated reactor buildout to add clean capacity, curb emissions, and improve grid reliability nationwide.

✅ Approvals surge for Hualong One and CAP1400 third-gen reactors

✅ Capacity targets approach 100 GW installed by 2030

✅ Supports carbon neutrality, energy security, and lower costs

While China has failed to accomplish its 2020 nuclear target of 58 gigawatts under operation and 30 GW under construction, insiders are optimistic about prospects for the nonpolluting energy resource in China over the next five years as the country has stepped up nuclear approvals and construction since 2020.

China expects to record 49 operating nuclear facilities and capacity of more than 51 GW as of the end of 2020. Nuclear power currently makes up around 2.4 percent of the country's total installed energy capacity, said the China Nuclear Energy Association. There are 19 facilities that have received approval and are under construction, with capacity exceeding 20 GW, ranking top globally as nuclear project milestones worldwide continue, it said.

"With surging power demand from coastal regions, more domestic technology, including next-gen nuclear, will be adopted with installations likely nearing 100 GW by the end of 2030," said Wei Hanyang, a power market analyst at Bloomberg New Energy.

Following the Fukushima nuclear reactor disaster in 2011 in Japan, China has, like many countries including Japan, Germany and Switzerland, suspended nuclear power project approvals for a period, including construction of the pilot project of Shidaowan nuclear power plant in Shandong province that uses CAP1400 technology, based on third-generation Westinghouse AP1000 reactor technology.

As China promotes greener development and prioritizes safety and security of nuclear power plant construction, it has pledged to hit peak emissions before 2030 and achieve carbon neutrality by 2060, with electricity meeting 60% of energy use by 2060 according to Shell, the Shidaowan plant, originally scheduled to launch construction in 2014 and enter service in 2018, is expected to start fuel loading and begin operations this year.

Joseph Jacobelli, an independent energy analyst and executive vice-president for Asia business at Cenfura Ltd, a smart energy services company, said recent developments confirm China's ongoing commitment to further boost the country's nuclear sector.

"The nuclear plants can help meet China's goal of reducing greenhouse gas emissions as the country reduces coal power production and provide air pollution-free energy at a lower cost to consumers. China's need for clean energy means that nuclear power generation definitely has an important place in the long-term energy mix," Jacobelli said.

He added that Chinese companies' cost control capabilities and technological advancements, and operational performance improvements such as the AP1000 refueling outage record, are also likely to continue providing domestic companies with advantages, as the cost per kilowatt-hour is very important, especially as solar, wind and other clean energy solutions become even cheaper over the next few years.

China approved two nuclear projects in 2020- Hainan Changjiang nuclear power plant unit 2 and Zhejiang San'ao nuclear power plant unit 1. This is after the country launched three new nuclear power plants in 2019 in the provinces of Shandong, Fujian and Guangdong, which marked the end of a moratorium on new projects.

The Zhejiang San'ao nuclear power plant saw concrete poured for unit 1 on Dec 31, according to its operator China General Nuclear. It will be the first of six Hualong One pressurized water reactors to be built at the site as well as the first Chinese nuclear power plant project to involve private capital.

Jointly invested, constructed and operated by CGN, Zheneng Electric Power, Wenzhou Nuclear Energy Development, Cangnan County Haixi Construction Development and Geely Maijie Investment, the project creates a new model of mixed ownership of nuclear power enterprises, said CGN.

The world's first Hualong One reactor at unit 5 of China National Nuclear Corp's Fuqing nuclear plant in Fujian province was connected to the grid in November. With the start of work on San'ao unit 1, China now has further seven Hualong One units under construction, including Fuqing 6, which is scheduled to go online this year.

CNNC is also constructing one unit at Taipingling in Guangdong and two at Zhangzhou in Fujian province. CGN is building two at its Fangchenggang site in Guangxi Zhuang autonomous region. In addition, two Hualong One units are under construction at Karachi in Pakistan, while CGN proposes to use a UK version of the Hualong One at Bradwell in the United Kingdom, aligning with the country's green industrial revolution strategy.

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Hertel-New York Interconnection delivers Hydro-Quebec renewable energy via a cross-border transmission line to New York City by 2025, supplying 1,250 MW through underground and underwater routes under a 25-year contract.

Key Points

A cross-border line delivering 1,250 MW of Hydro-Quebec hydropower to New York City via underground routes.

✅ 1,250 MW clean power to NYC by 2025

✅ 56.1 km underground, 1.6 km underwater in Quebec

✅ 25-year contract; Mohawk partnership revenue

Hydro-Quebec announced Thursday it has chosen the route for the Hertel-New York interconnection line, which will begin construction in the spring of 2023 in Quebec.

The project will deliver 1,250 megawatts of Quebec hydroelectricity to New York City starting in 2025, even as a recent electricity shortage report warns about rising demand at home.

It's a 25-year contract for Hydro-Quebec, the largest export contract for the province-owned company, and comes as hydrogen production investments gain traction in Eastern Canada.

The Crown corporation has not disclosed potential revenues from the project, but Premier François Legault mentioned on social media last September that a deal in principle worth more than $20 billion over 25 years was in the works.

The route includes a 56.1-kilometre underground and a 1.6-kilometre underwater section, similar to the Lake Erie Connector project planned under Lake Erie.

Eight municipalities in the Montérégie region will be affected: La Prairie, Saint-Philippe, Saint-Jacques-le-Mineur, Saint-Édouard, Saint-Patrice-de-Sherrington, Saint-Cyprien-de-Napierville, Saint-Bernard-de-Lacolle and Lacolle.

Across the country, new renewables such as wind projects in Yukon are receiving federal support, reflecting broader grid decarbonization.

The last part of the route will run along Fairbanks Creek to the Richelieu River, where it will connect with the American network.

Further south, there will be a 545-kilometre link between the Canada-U.S. border and New York City, while a separate Maine transmission approval advances a New England pathway for Quebec power.

Hydro-Quebec is holding two consultations on the project, on Dec. 8 in Lacolle and Dec. 9 in Saint-Jacques-le-Mineur.

Elsewhere in Atlantic Canada, EV-to-grid integration pilots are underway to test how vehicles can support the power system.

Once the route is in service, the Quebec line will be subject to a partnership between Hydro-Quebec and the Mohawk Council of Kahnawake, which will benefit from economic remunerations for 40 years.

To enhance reliability, grid-scale battery storage projects are also expanding in Ontario.

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