Green energy complex to cost $7 billion

California Income-Based Electricity Rates propose a fixed monthly fee set by income as utilities and the CPUC weigh progressive pricing, aiming to cut low-income bills while PG&E, SCE, and SDG&E retain usage-based charges.

Key Points

CPUC plan adds income-tiered fixed fees to lower low-income bills while keeping per-kWh usage charges.

✅ Adds fixed monthly fees by income to complement per-kWh charges

✅ Cuts bills for low-income households; higher earners pay more

✅ Utilities say revenue neutral; conservation signals preserved

California’s electric bills — already some of the highest in the nation — are rising as electricity prices soar across the state, but regulators are debating a new plan to charge customers based on their income level. 

Typically what you pay for electricity depends on how much you use. But the state’s three largest electric utilities — Southern California Edison Company, Pacific Gas and Electric Company and San Diego Gas & Electric Company — have proposed a plan to charge customers not just for how much energy they use, but also based on their household income, moving toward income-based flat-fee utility bills over time. Their proposal is one of several state regulators received designed to accommodate a new law to make energy less costly for California’s lowest-income customers.

Some state Republican lawmakers are warning the changes could produce unintended results, such as weakening incentives to conserve electricity or raising costs for customers using solar energy, and some have introduced a plan to overturn the charges in the Legislature.

But the utility companies say the measure would reduce electricity bills for the lowest income customers. Those residents would save about $300 per year, utilities estimate.

California households earning more than $180,000 a year would end up paying an average of $500 more a year on their electricity bills, according to the proposal from utility companies. 

The California Public Utilities Commission’s deadline for deciding on the suggested changes is July 1, 2024, as regulators face calls for action from consumers and advocates. The proposals come at a time when many moderate and low-income families are being priced out of California by rising housing costs.  

Who wants to change the fee structure?
Lawmakers passed and Gov. Gavin Newsom signed a comprehensive energy bill last summer that mandates restructuring electricity pricing across the state. 

The Legislature passed the measure in a “trailer-bill” process that limited deliberation. Included in the 21,000-word law are a few sentences requiring the public utilities commission to establish a “fixed monthly fee” based on each customer’s household income. 

A similar idea was first proposed in 2021 by researchers at UC Berkeley and the nonprofit thinktank Next 10. Their main recommendation was to split utility costs into two buckets. Fixed charges, which everyone has to pay just to be connected to the energy grid, would be based on income levels. Variable charges would depend on how much electricity you use.

Utilities say that part of customers’ bills still will be based on usage, but the other portion will reduce costs for lower- and middle-income customers, who “pay a greater percentage of their income towards their electricity bill relative to higher income customers,” the utilities argued in a recent filing. 

They said the current billing system is unjust, regressive and fails to recognize differences in energy usage among households,

“When we were putting together the reform proposal, front and center in our mind were customers who live paycheck to paycheck, who struggle to pay for essentials such as energy, housing and food,” Caroline Winn, CEO of San Diego Gas & Electric in a statement. 

The utilities say in their proposal that the changes likely would not reduce or increase their revenues.

James Sallee, an associate professor at UC Berkeley, said the utilities’ prior system of billing customers mostly by measuring their electric use to pay for what are essentially fixed costs for power is inefficient and regressive. 

The proposed changes “will shift the burden, on average, to a more progressive system that recovers more from higher income households and less from lower income households,” he said.

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Freedom Cannabis solar array powers an Acheson cannabis facility with 4,574 rooftop panels, a 1,830-kilowatt system by Enmax, cutting greenhouse gas emissions, lowering energy costs, and advancing renewable energy, sustainability, and operational efficiency in Edmonton.

Key Points

A 1,830-kW rooftop solar system with 4,574 panels, cutting GHG emissions and energy costs at the Acheson facility.

✅ 1,830-kW array offsets 1,000+ tonnes GHG annually

✅ Supplies ~8% of annual power; saves $200k-$300k per year

✅ 4,574 rooftop panels installed by Enmax in Acheson

Electricity consumption is one of the biggest barriers to going green in the cannabis industry, where the energy demands of cannabis cultivation often complicate sustainability, but an Edmonton-area pot producer has come up with a sunny solution.

Freedom Cannabis unveiled the largest rooftop solar system used by a cannabis facility in Canada at its 126,000-square foot Acheson location, 20 kilometres west of Edmonton, as solar power in Alberta continues to surge, on Tuesday.

The "state-of-the-art" 1,830-kilowatt solar array—made up of 4,574 panels—was supplied by Enmax and will offset more than 1,000 tonnes of greenhouse gas emissions each year, reflecting how new Alberta solar facilities are undercutting natural gas on price, the company said.

The state-of-the-art solar array—made up of 4,574 panels—was supplied by Enmax and will offset more than 1,000 tonnes of greenhouse gas emissions at Freedom Cannabis every year. Nov. 12, 2019. (Freedom Cannabis)

That will supply roughly eight per cent of the building's annual power consumption and reduce costs by $200,000 to $300,000 annually.

"This strategy will supplement our operating costs for power by up to eight to 10 per cent, so it is something that in time will save us costs on power requirements," said Troy Dezwart, co-founder of Freedom Cannabis.

Dezwart said sustainability was an important issue to the company from its outset, aligning with an Alberta renewable energy surge that is expected to power thousands of jobs.

"We're fortunate enough to be able to have these types of options and pursue them," said Dezwart.

The entire system cost Freedom Cannabis $2.6 million to build, but nearly a million of that came from a provincial rebate program that has since been cancelled by the UCP government, even as a federal green electricity deal with an Edmonton company signals ongoing support.

The company cited a 2017 report that found cannabis growers in the U.S. used enough electricity to power 1.7-million homes, and said cannabis-related power consumption is expected to increase by 1,250 per cent in Ontario over the next five years, even though Canadian solar demand has been lagging overall.

“It’s more important than ever for businesses to manage their energy footprint, and solar is an important part of that solution,” Enmax director Jason Atkinson, said. “This solar installation will help reduce operating costs and offset a significant portion of GHG emissions for decades to come.”

Freedom says it has other initiatives underway to reduce its footprint, in a region planning the Edmonton airport solar farm among other projects, including water remediation and offering 100 per cent recyclable cannabis packaging tins.

The company's first crops are expected to go to market in December.

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Eastern U.S. Heatwave Electricity Demand surges to record peak load, straining the power grid, lifting wholesale prices, and prompting demand response, conservation measures, and load shedding to protect grid reliability during extreme temperatures.

Key Points

It is the record peak load from extreme heat, straining grids, lifting wholesale prices, and prompting demand response.

✅ Peak electricity use stresses regional power grid.

✅ Prices surge; conservation and demand response urged.

✅ Utilities monitor load, avoid outages via load shedding.

As temperatures soar to unprecedented highs across the Eastern United States, a blistering heatwave has triggered record-breaking electricity demand. This article delves into the causes behind the surge in energy consumption, its impact on the power grid, and measures taken to manage the strain during this extraordinary weather event.

Intensifying Heatwave Conditions

The Eastern U.S. is currently experiencing one of its hottest summers on record, with temperatures climbing well above seasonal norms. This prolonged heatwave has prompted millions of residents to rely heavily on air conditioning and cooling systems to escape the sweltering heat, with electricity struggles worsening in several communities, driving up electricity usage to peak levels.

Strain on Power Grid Infrastructure

The surge in electricity demand during the heatwave has placed significant strain on the region's power grid infrastructure, with supply-chain constraints complicating maintenance and equipment availability during peak periods.

Record-breaking Energy Consumption

The combination of high temperatures and increased cooling demands has led to record-breaking energy consumption levels across the Eastern U.S. States like New York, Pennsylvania, and Maryland have reported peak electricity demand exceeding previous summer highs, with blackout risks drawing heightened attention from operators, highlighting the extraordinary nature of this heatwave event.

Impact on Energy Costs and Supply

The spike in electricity demand during the heatwave has also affected energy costs and supply dynamics. Wholesale electricity prices have surged in response to heightened demand, contributing to sky-high energy bills for many households, reflecting the market's response to supply constraints and increased operational costs for power generators and distributors.

Management Strategies and Response

Utility companies and grid operators have implemented various strategies to manage electricity demand and maintain grid reliability during the heatwave. These include voluntary conservation requests, load-shedding measures, and real-time monitoring of grid conditions to prevent power outages while avoiding potential blackouts or disruptions.

Community Outreach and Public Awareness

Amidst the heatwave, community outreach efforts play a crucial role in raising public awareness about energy conservation and safety measures. Residents are encouraged to conserve energy during peak hours, adjust thermostat settings, and utilize energy-efficient appliances to alleviate strain on the power grid and reduce overall energy costs.

Climate Change and Resilience

The intensity and frequency of heatwaves are exacerbated by climate change, underscoring the importance of building resilience in energy infrastructure and adopting sustainable practices. Investing in renewable energy sources, improving energy efficiency and demand response programs that can reduce peak demand, and implementing climate adaptation strategies are essential steps towards mitigating the impacts of extreme weather events like heatwaves.

Looking Ahead

As the Eastern U.S. navigates through this heatwave, stakeholders are focused on implementing lessons learned from California's grid response to enhance preparedness and resilience for future climate-related challenges. Collaborative efforts between government agencies, utility providers, and communities will be crucial in developing comprehensive strategies to manage energy demand, promote sustainability, and safeguard public health and well-being during extreme weather events.

Conclusion

The current heatwave in the Eastern United States has underscored the critical importance of reliable and resilient energy infrastructure in meeting the challenges posed by extreme weather conditions. By prioritizing energy efficiency, adopting sustainable energy practices, and fostering community resilience, stakeholders can work together to mitigate the impacts of heatwaves and ensure a sustainable energy future for generations to come.

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Ontario Battery Energy Storage anchors IESO strategy, easing peak demand and boosting grid reliability. Projects like Oneida BESS (250MW) and nearly 3GW procurements integrate renewables, wind and solar, enabling flexible, decarbonized power.

Key Points

Provincewide grid batteries help IESO manage peaks, integrate renewables, and strengthen reliability across Ontario.

✅ IESO forecasts 1,000MW peak growth by 2026

✅ Oneida BESS adds 250MW with 20-year contract

✅ Nearly 3GW storage procured via LT1 and other RFPs

Ontario’s electricity grid is facing increasing demand amid a looming supply crunch, prompting the province to invest heavily in battery energy storage systems (BESS) as a key solution. The Ontario Independent Electricity System Operator (IESO) has highlighted that these storage technologies will be crucial for managing peak demand in the coming years.

Ontario's energy demands have been on the rise, driven by factors such as population growth, electric vehicle manufacturing, data center expansions, and heavy industrial activity. The IESO's latest assessment, and its work on enabling storage, covering the period from April 2025 to September 2026, indicates that peak demand will increase by approximately 1,000MW between the summer of 2025 and 2026. This forecasted rise in energy use is attributed to the acceleration of various sectors within the province, underscoring the need for reliable, scalable energy solutions.

A significant portion of this solution will be met by large-scale energy storage projects. Among the most prominent is the Oneida BESS, a flagship project that will contribute 250MW of storage capacity. This project, developed by a consortium including Northland Power and NRStor, will be located on land owned by the Six Nations of the Grand River. Expected to be operational soon, it will play a pivotal role in ensuring grid stability during high-demand periods. The project benefits from a 20-year contract with the IESO, guaranteeing payments that will support its financial viability, alongside additional revenue from participating in the wholesale energy market.

In addition to Oneida, Ontario has committed to acquiring nearly 3GW of energy storage capacity through various procurement programs. The 2023 Expedited Long-Term 1 (LT1) request for proposals (RfP) alone secured 881MW of storage, with additional projects in the pipeline. A notable example is the Hagersville Battery Energy Storage Park, which, upon completion, will be the largest such project in Canada. The success of these procurement efforts highlights the growing importance of BESS in Ontario's energy strategy.

The IESO’s proactive approach to energy storage is not only a response to rising demand but also a step toward decarbonizing the province’s energy system. As Ontario transitions away from traditional fossil fuels, BESS will provide the necessary flexibility to accommodate increasing renewable energy generation, a clean energy solution widely recognized in jurisdictions like New York, particularly from intermittent sources like wind and solar. By storing excess energy during periods of low demand and dispatching it when needed, these systems will help maintain grid stability, and as many utilities see benefits even without mandates, reduce reliance on fossil fuel-based power plants.

Looking ahead, Ontario's energy storage capacity is expected to grow significantly, complemented by initiatives such as the Hydrogen Innovation Fund, with projects from the 2023 LT1 RfP expected to come online by 2027. As more storage resources are integrated into the grid, the province is positioning itself to meet its rising energy needs while also advancing its environmental goals.

Ontario’s increasing reliance on battery energy storage is a clear indication of the province’s commitment to a sustainable and resilient energy future, aligning with perspectives from Sudbury sustainability advocates on the grid's future. With substantial investments in storage technology, Ontario is not only addressing current energy challenges but also paving the way for a cleaner, more reliable energy system in the years to come.

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California Renewable Energy Curtailment highlights grid congestion, midday solar peaks, limited battery storage, and market constraints, with WEIM participation and demand response programs proposed to balance supply-demand and reduce wasted solar and wind generation.

Key Points

It is the deliberate reduction of solar and wind output when grid limits or low demand prevent full integration.

✅ Grid congestion restricts transmission capacity

✅ Midday solar peaks exceed demand, causing surplus

✅ Storage, WEIM, and demand response mitigate curtailment

California has long been a leader in renewable energy adoption, achieving a near-100% renewable milestone in recent years, particularly in solar and wind power. However, as the state continues to expand its renewable energy capacity, it faces a growing challenge: the curtailment of excess solar and wind energy. Curtailment refers to the deliberate reduction of power output from renewable sources when the supply exceeds demand or when the grid cannot accommodate the additional electricity.

Increasing Curtailment Trends

Recent data from the U.S. Energy Information Administration (EIA) highlights a concerning upward trend in curtailments in California. In 2024, the state curtailed a total of 3,102 gigawatt-hours (GWh) of electricity generated from solar and wind sources, surpassing the 2023 total of 2,660 GWh. This represents a 32.4% increase from the previous year. Specifically, 2,892 GWh were from solar, and 210 GWh were from wind, marking increases of 31.2% and 51.1%, respectively, compared to the first nine months of 2023.

Causes of Increased Curtailment

Several factors contribute to the rising levels of curtailment:

1. Grid Congestion: California's transmission infrastructure has struggled to keep pace with the rapid growth of renewable energy sources. This congestion limits the ability to transport electricity from generation sites to demand centers, leading to curtailment.
   
   

2. Midday Solar Peaks: Amid California's solar boom, solar energy production typically peaks during the midday when electricity demand is lower. This mismatch between supply and demand results in excess energy that cannot be utilized, necessitating curtailment.
   
   

3. Limited Energy Storage: While battery storage technologies are advancing, California's current storage capacity is insufficient to absorb and store excess renewable energy for later use. This limitation exacerbates curtailment issues.
   
   

4. Regulatory and Market Constraints: Existing market structures and regulatory frameworks may not fully accommodate the rapid influx of renewable energy, leading to inefficiencies and increased curtailment.

Economic and Environmental Implications

Curtailment has significant economic and environmental consequences. For renewable energy producers, curtailed energy represents lost revenue and undermines the economic viability of new projects. Environmentally, curtailment means that clean, renewable energy is wasted, and the grid may rely more heavily on fossil fuels to meet demand, counteracting the benefits of renewable energy adoption.

Mitigation Strategies

To address the rising curtailment levels, California is exploring several strategies aligned with broader decarbonization goals across the U.S.:

• Grid Modernization: Investing in and upgrading transmission infrastructure to alleviate congestion and improve the integration of renewable energy sources.
  
  

• Energy Storage Expansion: Increasing the deployment of battery storage systems to store excess energy during peak production times and release it during periods of high demand.
  
  

• Market Reforms: Participating in the Western Energy Imbalance Market (WEIM), a real-time energy market that allows for the balancing of supply and demand across a broader region, helping to reduce curtailment.
  
  

• Demand Response Programs: Implementing programs that encourage consumers to adjust their energy usage patterns, such as shifting electricity use to times when renewable energy is abundant.

Looking Ahead

As California continues to expand its renewable energy capacity, addressing curtailment will be crucial to ensuring the effectiveness and sustainability of its energy transition. By investing in grid infrastructure, energy storage, and market reforms, the state can reduce curtailment levels and make better use of its renewable energy resources, while managing challenges like wildfire smoke impacts on solar output. These efforts will not only enhance the economic viability of renewable energy projects but also contribute to California's 100% clean energy targets by maximizing the use of clean energy and reducing reliance on fossil fuels.

While California's renewable energy sector faces challenges related to curtailment, proactive measures and strategic investments can mitigate these issues, as scientists continue to improve solar and wind power through innovation, paving the way for a more sustainable and efficient energy future.

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ACCC energy underwriting guarantee proposes government-backed certainty for new generation, cutting electricity prices and supporting gas, pumped hydro, renewables, batteries, and potentially coal-fired power, addressing market failure without direct subsidies.

Key Points

A tech-neutral, government-backed plan underwriting new generation revenue to increase certainty and cut power prices.

✅ Government guarantee provides a revenue floor for new generators.

✅ Technology neutral: coal, gas, renewables, pumped hydro, batteries.

✅ Intended to reduce bills by up to $400 and address market failure.

Australian Taxpayers won't directly fund any new power plants despite some Coalition MPs seizing on a new report to call for a coal-fired power station.

The Australian Competition and Consumer Commission recommended the government give financial certainty to new power plants, guaranteeing energy will be bought at a cheap price if it can't be sold, as part of an electricity market plan to avoid threats to supply.

It's part of a bid to cut up to $400 a year from average household power prices.

Prime Minister Malcolm Turnbull said the finance proposal had merit, but he ruled out directly funding specific types of power generation.

"We are not in the business of subsidising one technology or another," he told reporters in Queensland today.

"We've done enough of that. Frankly, there's been too much of that."

Renewable subsidies, designed in the 1990s to make solar and wind technology more affordable, have worked and will end in 2020.

Some Coalition MPs claim the ACCC's recommendation to underwrite power generation is vindication for their push to build new coal-fired power plants.

But ACCC chair Rod Sims said no companies had proposed building new coal plants - instead they're trying to build new gas projects, pumped hydro or renewable projects.

Opposition Leader Bill Shorten said Mr Turnbull was offering solutions years away, having overseen a rise in power prices over the past year.

"You don't just go down to K-Mart and get a coal-fired power station off the shelf," Mr Shorten told reporters, admitting he had not read the ACCC report.

Energy Minister Josh Frydenberg said the recommendation to underwrite new power generators had a lot of merit, as it would address a market failure highlighted by AEMO warnings about reduced reserves.

"What they're saying is the government needs to step in here to provide some sort of assurance," Mr Frydenberg told 9NEWS today.

He said that could include coal, gas, renewable energy or battery storage.

Deputy Nationals leader Bridget McKenzie said science should determine which technology would get the best outcomes for power bills, with a scrapping coal report suggesting it can be costly.

Mr Turnbull said there was strong support for the vast majority of the ACCC's 56 recommendations, but the government would carefully consider the report, which sets out a blueprint to cut electricity bills by 25 percent.

Acting Greens leader Adam Bandt said Australia should exit coal-fired power in favour of renewable energy to cut pollution.

In contrast, Canada has seen the Stop the Shock campaign advocate a return to coal power in some provinces.

The Australian Energy Council, which represents 21 major energy companies, said the government should consult on changes to avoid "unintended consequences".

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