King Coal returns

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At least one noteworthy policy directive emerged from the recent G8 forum in Tokyo. It now seems that the preferred option to meet the energy needs of the 21st century is for all of us to start burning coal again.

What's being proposed is a reappraisal of the use of coal as a power source for developed economies, with a particular emphasis on carbon capture and storage (CCS) technologies.

The consensus from policy makers seems to be that, regardless of proposed investment in renewable power sources, many industrialized nations (including the UK) still face shortfalls in generating capacity. This alone is forcing a reassessment of the issue, but rising energy costs and coal's relative abundance are also leading to changes in strategic thinking.

Many CCS technologies are already used in other industrial and mining applications. CCS involves isolating and then compressing CO2 released as industrial emissions, with the CO2 then permanently stored in underground geological formations. The main point about CCS technologies is that, if successfully implemented on an industrial scale, they could effectively transform coal into a carbon-neutral fuel source. This has obvious implications for future coal demand in a world where so many economies are struggling to meet emission targets and where other fossil fuels are rapidly being exhausted.

Can it be done?

Commercial exploitation of CCS technologies within the next two decades is certainly possible, but won't come cheap. Intervention, through state or regional government subsidies and tax incentives, will almost certainly be needed for early stage development. Several regional authorities have already expressed an interest in supporting this technology.

In Canada, for instance, the Alberta provincial authority recently announced a $2 billion initiative to drive CCS technologies. The Canada-Alberta ecoEnergy CCS Task Force estimates that CCS has the potential to eliminate 600 megatonnes (mt) of greenhouse gas emissions every year. This is roughly 40 per cent of Canada's projected emissions by 2050 and is equivalent to storing all Canada's current industrial emissions, without compromising economic growth.

Milton Catelin, chief executive of the World Coal Institute, is understandably bullish about coal's emerging eco-status: "All expert analysts predict a rising demand for coal. The greatest challenge faced by coal is how well it can respond to climate change. In this regard, numerous projects, like the Sleipner Project in the North Sea, have demonstrated that CCS technologies can safely bury large quantities of CO2 that would otherwise escape to the atmosphere. The support from G8 governments recognizes that while there may be no silver bullet to combat climate change, there will equally be no effective response to it without CCS."

Coal's resurgence as a commodity is closely linked to the rapid economic and industrial expansion of emerging economies in Asia and beyond (primarily the BRIC countries of Brazil, Russia, India and China). The use of coal as a primary energy source grew by around 2.7 per cent during 2007, the majority of this attributable to the Asia Pacific region. However, the supply/demand balance is now so tight, that any supply-side shocks are amplified. Forward spot prices for both thermal (power generation) and coking (metallurgical coal, used in steelmaking) coal contracts have soared in recent months because of supply-side problems in China, South Africa and Australia.

There are separate drivers for coking and thermal coal:

Coking coal

The rapid growth in world demand for coking coal hasn't been met by supply, most notably due to production shortfalls, shipping delays and, more recently, severe weather in Australia, the world's largest coal exporter. Coking coal projects in Mozambique and Russia hold extensive resources but require major investment in transport infrastructure. Goldman Sachs expects contract prices for hard coking coal to hold comfortably above $200/t for another four years.

Thermal Coal

Goldman Sachs also sees strong demand growth for thermal coal to continue for the foreseeable future as many countries, in particular China and India, continue to invest heavily in new coal-fired power generation. Goldman has raised its long-term price estimate for thermal coal to $70/t.

China relies on coal to fuel 65 per cent of its domestic and industrial power needs. Rationing has been introduced in 13 of China's regions, and as coal stocks dwindled, the supply/demand balance became so acute that a partial export ban was imposed to ensure supplies and help cap rising electricity prices.

The worst winter weather in 50 years caused a spike in household power demand in the early part of this year. Central, eastern and southern regions of China were hit by sub-zero temperatures and heavy snow, which disrupted train and road deliveries of coal and food. Chinese officials were forced to divert electricity supplies from heavy industry in order to deal with the unprecedented domestic demand. The situation has since been exacerbated by a relatively dry spell, which resulted in low water levels and consequential reduction in the country's hydroelectric output.

Australian port and freight capacity has proved insufficient to meet burgeoning Asian demand and upgrades to infrastructure are not expected until 2012 at the earliest. The state government of Queensland is assessing the viability of a (A)$5.3bn (£2.5bn) proposal by Canadian-listed Waratah Coal for new mining interests in the state, which could produce 25mt of thermal coal a year for export, mainly to the Japanese and South Korean markets. An entirely new coal port has also been proposed for the central Queensland coast, with a capacity of 100mt a year.

The outlook for global exports has not been helped by persistent power blackouts in South Africa, which have forced the Mbeki government to restock coal inventories and cut back exports. The South African problems are likely to persist into 2009.

The price of coking or metallurgical-grade coal doubled over the past year as the infrastructure problems in Australia and South Africa curbed global supplies. Most supply contracts for metallurgical coal are agreed bilaterally, and large global steelmakers have been scrambling to secure supplies. ArcelorMittal, the world's largest steelmaker, recently received approval to break into Russia's resource sector via a $720m (£387m) purchase of three Siberian coal mines. The purchases boost ArcelorMittal's self-sufficiency in metallurgical coal to around 15 per cent, which the company is likely to increase over time.

ArcelorMittal also has a 19.9 per cent stake in Australia's Macarthur Coal. POSCO, the giant Korean steelmaker, has purchased a separate 10 per cent interest in the miner, and the Chinese investment group CITIC Resource Holdings holds another 18 per cent. Increased consolidation within the industry and the trend towards cross-ownership underlines the current scramble for coal. And these types of strategic holdings are leading to increased takeover speculation within the mining sector.

The take-up of CCS technologies by developed economies could form a key component of future demand. As emission targets come and go, it will be possible to gauge the relative success of alternative energy sources. If projects like the Sleipner field are successful from an environmental perspective, it would be difficult to imagine that carbon-neutral coal could not compete in the energy market on a 'per unit' cost basis, especially if commitments are made by G8 governments to cover a portion of development costs.

The current economic slowdown may have some near-term effect on coal prices. The Baltic Dry Index, which measures dry bulk shipping rates, fell by 23 per cent during June. The Index is viewed as a leading economic indicator, so the sharp fall-away in shipping volumes could signal the start of what may be a significant correction in the market for raw materials, including coal.

However, regardless of general economic conditions, the rapid development of the Chinese and Indian economies alone should underpin long-term growth of the coal market. And whilst coal remains in relative abundance, seams of high-grade metallurgical coal aren't as readily accessible. Further supply-side problems in Australia and South Africa cannot be ruled out and the problems experienced by China last winter demonstrate why price spikes resulting from climatic extremes aren't limited to soft commodities.

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Hydro One: No cut in peak hydro rates yet for self-isolating customers

Hydro One COVID-19 Rate Relief responds to time-of-use pricing, peak rates, and Ontario Energy Board rules as residents stay home, offering a Pandemic Relief Fund, flexible payments, and support for electricity bills amid off-peak adjustments.

 

Key Points

Hydro One's COVID-19 rate relief includes payment flexibility and hardship aid to ease time-of-use bill burdens.

✅ Advocates flexibility on time-of-use and peak rate impacts

✅ Pandemic Relief Fund offers aid and payment options

✅ OEB sets prices; utilities relay concerns and support

 

Hydro One says it is listening to requests by self-isolating residents for reduced kilowatt hour peak rates during the day when most people are home riding out the COVID-19 pandemic.

Peak rates of 20.8 cents per kw/h are twice as high from 7 a.m. to 7 p.m. – except weekends – than off-peak rates of 10.1 cents per kw/h and set by the Ontario Energy Board and not electricity providers such as Hydro One and Elexicon (formerly Veridian).

Frustrated electrical customers have signed their John Henry’s more than 50,000 times to a change.org petition demanding Hydro One temporarily slash rates for those already struggling with work closures and loss of income amid concerns about a potential recovery rate that could raise bills.

Alex Stewart, media relations spokesman for Hydro One, said the corporation is working toward a solution.

“While we are regulated to adhere to time-of-use pricing by the Ontario Energy Board, we’ve heard the concerns about time-of-use pricing and the idea of a fixed COVID-19 hydro rate as many of our customers will stay home to stop the spread of COVID-19,” Stewart told The Intelligencer.

“We continue to advocate for greater choice during this difficult time and are working with everyone in the electricity sector to ensure our customers are heard.”

Stewart said the electricity provider is reaching out to customers to help them during a difficult self-isolating and social distancing period in other ways to bring financial relief.

For example, new hardship measures are now in play by Hydro One to give customers some relief from ballooning electricity bills.

“This is a difficult time for everyone. Hydro One has launched a new Pandemic Relief Fund to support customers affected by the novel coronavirus COVID-19. As part of our commitment to customers, we will offer financial assistance, as well as increased payment flexibility, to customers experiencing hardship,” Stewart said.

“Hydro One is also extending its Winter Relief program to halt disconnections and reconnections to customers experiencing hardship during the coldest months of the year. This is about doing the right thing and offering flexibility to our customers so they have peace of mind and can concentrate on what matters most – keeping their loved ones safe.”

Stewart said customers having difficult times can visit the company’s website for more details at www.HydroOne.com/ReliefFund.

Elexicon Energy, meanwhile, said earlier the former Veridian company is passing along concerns to the OEB but otherwise can’t lower the rates unless directed to do so, as occurred when the province set off-peak pricing temporarily.

Chris Mace, Elexicon corporate communications spokesperson, said, “We don’t have the authority to do that.

“The Ontario Energy Board sets the energy prices. This is in the Ministry of Energy’s hands. We at Elexicon, along with other local distribution companies (LDC), have shared this feedback with the ministry and OEB to come up with some sort of solution or alternative. But this is out of our hands. We can’t shift anything.”

He suggested residents can shift the use of higher-drawing electrical appliances to early morning before 7 or in the evening after 7 p.m. when ultra-low overnight rates may apply.

Families may want to be “mindful whether it be cooking or laundry and so on and holding off on doing those until off-peak hours take effect. We are hearing customers and we have passed along those concerns to the ministry and the OEB.”

Hydro One power tips

Certain electrical uses in the home consumer more power than others, as reflected in Ontario’s electricity cost allocation approach:

62 per cent goes to space heating
19 per cent goes to water heaters
13 per cent goes to appliances
2 per cent goes to space cooling

 

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Energize America: Invest in a smarter electricity infrastructure

Smart Grid Modernization unites distributed energy resources, energy storage, EV charging, advanced metering, and bidirectional power flows to upgrade transmission and distribution infrastructure for reliability, resilience, cybersecurity, and affordable, clean power.

 

Key Points

Upgrading grid hardware and software to integrate DERs, storage, and EVs for a reliable and affordable power system.

✅ Enables DER, storage, and EV integration with bidirectional flows

✅ Improves reliability, resilience, and grid cybersecurity

✅ Requires early investment in sensors, inverters, and analytics

 

Much has been written, predicted, and debated in recent years about the future of the electricity system. The discussion isn’t simply about fossil fuels versus renewables, as often dominates mainstream energy discourse. Rather, the discussion is focused on something much larger and more fundamental: the very design of how and where electricity should be generated, delivered, and consumed.

Central to this discussion are arguments in support of, or in opposition to, the traditional model versus that of the decentralized or “emerging” model. But this is a false choice. The only choice that needs making is how to best transition to a smarter grid, and do so in a reliable and affordable manner that reflects grid modernization affordability concerns for utilities today. And the most effective and immediate means to accomplish that is to encourage and facilitate early investment in grid-related infrastructure and technology.

The traditional, or centralized, model has evolved since the days of Thomas Edison, but the basic structure is relatively unchanged: generate electrons at a central power plant, transmit them over a unidirectional system of high-voltage transmission lines, and deliver them to consumers through local distribution networks. The decentralized, or emerging, model envisions a system that moves away from the central power station as the primary provider of electricity to a system in which distributed energy resources, energy storage, electric vehicles, peer-to-peer transactions, connected appliances and devices, and sophisticated energy usage, pricing, and load management software play a more prominent role.

Whether it’s a fully decentralized and distributed power system, or the more likely centralized-decentralized hybrid, it is apparent that the way in which electricity is produced, delivered, and consumed will differ from today’s traditional model. And yet, in many ways, the fundamental design and engineering that makes up today’s electric grid will serve as the foundation for achieving a more distributed future. Indeed, as the transition to a smarter grid ramps up, the grid’s basic structure will remain the underlying commonality, allowing the grid to serve as a facilitator to integrate emerging technologies, including EV charging stations, rooftop solar, demand-side management software, and other distributed energy resources, while maximizing their potential benefits and informing discussions about California’s grid reliability under ambitious transition goals.

A loose analogy here is the internet. In its infancy, the internet was used primarily for sending and receiving email, doing homework, and looking up directions. At the time, it was never fully understood that the internet would create a range of services and products that would impact nearly every aspect of everyday life from online shopping, booking travel, and watching television to enabling the sharing economy and the emerging “Internet of Things.”

Uber, Netflix, Amazon, and Nest would not be possible without the internet. But the rapid evolution of the internet did not occur without significant investment in internet-related infrastructure. From dial-up to broadband to Wi-Fi, companies have invested billions of dollars to update and upgrade the system, allowing the internet to maximize its offerings and give way to technological breakthroughs, innovative businesses, and ways to share and communicate like never before.  

The electric grid is similar; it is both the backbone and the facilitator upon which the future of electricity can be built. If the vision for a smarter grid is to deploy advanced energy technologies, create new business models, and transform the way electricity is produced, distributed, and consumed, then updating and modernizing existing infrastructure and building out new intelligent infrastructure need to be top priorities. But this requires money. To be sure, increased investment in grid-related infrastructure is the key component to transitioning to a smarter grid; a grid capable of supporting and integrating advanced energy technologies within a more digital grid architecture that will result in a cleaner, more modern and efficient, and reliable and secure electricity system.

The inherent challenges of deploying new technologies and resources — reliability, bidirectional flow, intermittency, visibility, and communication, to name a few, as well as emerging climate resilience concerns shaping planning today, are not insurmountable and demonstrate exactly why federal and state authorities and electricity sector stakeholders should be planning for and making appropriate investment decisions now. My organization, Alliance for Innovation and Infrastructure, will release a report Wednesday addressing these challenges facing our infrastructure, and the opportunities a distributed smart grid would provide. From upgrading traditional wires and poles and integrating smart power inverters and real-time sensors to deploying advanced communications platforms and energy analytics software, there are numerous technologies currently available and capable of being deployed that warrant investment consideration.

Making these and similar investments will help to identify and resolve reliability issues earlier, and address vulnerabilities identified in the latest power grid report card findings, which in turn will create a stronger, more flexible grid that can then support additional emerging technologies, resulting in a system better able to address integration challenges. Doing so will ease the electricity evolution in the long-term and best realize the full reliability, economic, and environmental benefits that a smarter grid can offer.  

 

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Tornadoes and More: What Spring Can Bring to the Power Grid

Spring Storm Grid Risks highlight tornado outbreaks, flooding, power outages, and transmission disruptions, with NOAA flood outlooks, coal and barge delays, vulnerable nuclear sites, and distribution line damage demanding resilience, reliability, and emergency preparedness.

 

Key Points

Spring Storm Grid Risks show how tornadoes and floods disrupt power systems, fuel transport, and plants guide resilience.

✅ Tornado outbreaks and derechos damage distribution and transmission

✅ Flooding drives outages via treefall, substation and plant inundation

✅ Fuel logistics disrupted: rail coal, river barges, road access

 

The storm and tornado outbreak that recently barreled through the US Midwest, South and Mid-Atlantic was a devastating reminder of how much danger spring can deliver, despite it being the “milder” season compared to summer and winter.  

Danger season is approaching, and the country is starting to see the impacts. 

The event killed at least 32 people across seven states. The National Weather Service is still tallying up the number of confirmed tornadoes, which has already passed 100. Communities coping with tragedy are assessing the damage, which so far includes at least 72 destroyed homes in one Tennessee county alone, and dozens more homes elsewhere. 

On Saturday, April 1–the day after the storm struck–there were 1.1 million US utility customers without power, even as EIA reported a January power generation surge earlier in the year. On Monday morning, April 3, there were still more than 80,000 customers in the dark, according to PowerOutage.us. The storm system brought disruptions to both distribution grids–those networks of local power lines you generally see running overhead to buildings–as well as the larger transmission grid in the Midwest, which is far less common than distribution-level issues. 

While we don’t yet have a lot of granular details about this latest storm’s grid impacts, recent shifts in demand like New York City's pandemic power patterns show how operating conditions evolve, and it’s worth going through what else the country might be in for this spring, as well as in future springs. Moreover, there are steps policymakers can take to prepare for these spring weather phenomena and bolster the reliability and resilience of the US power system. 

Heightened flood risk 
The National Oceanic Atmospheric Administration (NOAA) said in a recent outlook that about 44 percent of the United States is at risk of floods this spring, equating to about 146 million people. This includes most of the eastern half of the country, the federal agency said. 

The agency also sees “major” flood risk potential in some parts of the Upper Mississippi River Basin, and relatively higher risk in the Sierra Nevada region, due in part to a historic snowpack in California.  

Multiple components of the power system can be affected by spring floods. 

Power lines – Floods can saturate soil and make trees more likely to uproot and fall onto power lines. This has been contributing to power outages during California’s recent heavy storms–called atmospheric rivers–that started over the winter. In other regions, soil moisture has even been used as a predictor of where power outages will occur due to hurricanes, so that utility companies are better prepared to send line repair crews to the right areas. Hurricanes are primarily a summer and fall phenomenon, and summer also brings grid stress from air conditioning demand in many states, so for now, during spring, they are less of a concern.  

Fuel transport – Spring floods can hinder the transportation of fuels like coal. While it is a heavily polluting fossil fuel that is set to continue declining as a fuel source for US electricity generation, with the EIA summer outlook for wind and solar pointing to further shifts, coal still accounted for roughly 20 percent of the country’s generation in 2022.   

About 70 percent of US coal is transported at least part of the way by trains. The rail infrastructure to transport coal from the Powder River Basin in Montana and Wyoming–the country’s primary coal source–was proven to be vulnerable to extreme floods in the spring of 2011, and even more extreme floods in the spring of 2019. The 2019 floods’ disruptions of coal shipments to power plants via rail persisted for months and into the summertime, also affecting river shipments of coal by barge. In June 2019, hundreds of barges were stalled in the Mississippi River, through which millions of tons of the fossil fuel are normally transported. 

Power plants – Power plants themselves can also be at risk of flooding, since most of them are sited near a source of water that is used to create steam to spin the plants’ turbines, and conversely, low water levels can constrain hydropower as seen in Western Canada hydropower drought during recent reservoir shortfalls. Most US fossil fuel generating capacity from sources like methane gas, which recently set natural gas power records across the grid, and coal utilizes steam to generate electricity. 

However, much of the attention paid to the flood risk of power plant sites has centered on nuclear plants, a key source of low-carbon electricity discussed in IAEA low-carbon electricity lessons that also require a water source for the creation of steam, as well as for keeping the plant cool in an emergency. To name a notable flood example here in the United States–both visually and substantively–in 2011, the Fort Calhoun nuclear plant in Nebraska was completely surrounded by water due to late-spring flooding along the Missouri River. This sparked a lot of concerns because it was just a few months after the March 2011 meltdown of the Fukushima Daiichi nuclear plant in Japan. The public was thankfully not harmed by the Nebraska incident, but this was unfortunately not an isolated incident in terms of flood risks posed to the US nuclear power fleet. 

 

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German official says nuclear would do little to solve gas issue

Germany Nuclear Phase-Out drives policy amid gas supply risks, Nord Stream 1 shutdown fears, Russia dependency, and energy security planning, as Robert Habeck rejects extending reactors, favoring coal backup, storage, and EU diversification strategies.

 

Key Points

Ending Germany's last reactors by year end despite gas risks, prioritizing storage, coal backup, and EU diversification.

✅ Reactors' legal certification expires at year end

✅ Minimal gas savings from extending nuclear capacity

✅ Nord Stream 1 cuts amplify energy security risks

 

Germany’s vice-chancellor has defended the government’s commitment to ending the use of nuclear power at the end of this year, amid fears that Russia may halt natural gas supplies entirely.

Vice-Chancellor Robert Habeck, who is also the economy and climate minister and is responsible for energy, argued that keeping the few remaining reactors running would do little to address the problems caused by a possible natural gas shortfall.

“Nuclear power doesn’t help us there at all,” Habeck, said at a news conference in Vienna on Tuesday. “We have a heating problem or an industry problem, but not an electricity problem – at least not generally throughout the country.”

The main gas pipeline from Russia to Germany shut down for annual maintenance on Monday, as Berlin grew concerned that Moscow may not resume the flow of gas as scheduled.

The Nord Stream 1 pipeline, Germany’s main source of Russian gas, is scheduled to be out of action until July 21 for routine work that the operator says includes “testing of mechanical elements and automation systems”.

But German officials are suspicious of Russia’s intentions, particularly after Russia’s Gazprom last month reduced the gas flow through Nord Stream 1 by 60 percent.

Gazprom cited technical problems involving a gas turbine powering a compressor station that partner Siemens Energy sent to Canada for overhaul.

Germany’s main opposition party has called repeatedly to extend nuclear power by keeping the country’s last three nuclear reactors online after the end of December. There is some sympathy for that position in the ranks of the pro-business Free Democrats, the smallest party in Chancellor Olaf Scholz’s governing coalition.

In this year’s first quarter, nuclear energy accounted for 6 percent of Germany’s electricity generation and natural gas for 13 percent, both significantly lower than a year earlier. Germany has been getting about 35 percent of its gas from Russia.

Habeck said the legal certification for the remaining reactors expires at the end of the year and they would have to be treated thereafter as effectively new nuclear plants, complete with safety considerations and the likely “very small advantage” in terms of saving gas would not outweigh the complications.

Fuel for the reactors also would have to be procured and Scholz has said that the fuel rods are generally imported from Russia.

Opposition politicians have argued that Habeck’s environmentalist Green party, which has long strongly supported the nuclear phase-out, is opposing keeping reactors online for ideological reasons, even as some float a U-turn on the nuclear phaseout in response to the energy crisis.

Reducing dependency on Russia
Germany and the rest of Europe are scrambling to fill the gas storage in time for the northern hemisphere winter, even as Europe is losing nuclear power at a critical moment and reduce their dependence on Russian energy imports.

Prior to the Russian invasion of Ukraine, Berlin had said it considered nuclear energy dangerous and in January objected to European Union proposals that would let the technology remain part of the bloc’s plans for a climate-friendly future that includes a nuclear option for climate change pathway.

“We consider nuclear technology to be dangerous,” government spokesman Steffen Hebestreit told reporters in Berlin, noting that the question of what to do with radioactive waste that will last for thousands of generations remains unresolved.

While neighbouring France aimed to modernise existing reactors, Germany stayed on course to switch off its remaining three nuclear power plants at the end of this year and phase out coal by 2030.

Last month, Germany’s economy minister said the country would limit the use of natural gas for electricity production and make a temporary recourse to coal generation to conserve gas.

“It’s bitter but indispensable for reducing gas consumption,” Robert Habeck said.

 

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Study: US Power Grid Has More Blackouts Than ENTIRE Developed World

US Power Grid Blackouts highlight aging infrastructure, rising outages, and declining reliability per DOE and NERC data, with weather-driven failures, cyberattack risk, and underinvestment stressing utilities, transmission lines, and modernization efforts.

 

Key Points

US power grid blackouts are outages caused by aging grid assets, severe weather, and cyber threats reducing reliability.

✅ DOE and NERC data show rising outage frequency and duration.

✅ Weather now drives 68-73% of major failures since 2008.

✅ Modernization, hardening, and cybersecurity investments are critical.

 

The United States power grid has more blackouts than any other country in the developed world, according to new data and U.S. blackout warnings that spotlight the country’s aging and unreliable electric system.

The data by the Department of Energy (DOE) and the North American Electric Reliability Corporation (NERC) shows that Americans face more power grid failures lasting at least an hour than residents of other developed nations.

And it’s getting worse.

Going back three decades, the US grid loses power 285 percent more often than it did in 1984, when record keeping began, International Business Times reported. The power outages cost businesses in the United States as much as $150 billion per year, according to the Department of Energy.

Customers in Japan lose power for an average of 4 minutes per year, as compared to customers in the US upper Midwest (92 minutes) and upper Northwest (214), University of Minnesota Professor Massoud Amin told the Times. Amin is director of the Technological Leadership Institute at the school.

#google#

The grid is becoming less dependable each year, he said.

“Each one of these blackouts costs tens of hundreds of millions, up to billions, of dollars in economic losses per event,” Amin said. “… We used to have two to five major weather events per year [that knocked out power], from the ‘50s to the ‘80s. Between 2008 and 2012, major outages caused by weather, reflecting extreme weather trends, increased to 70 to 130 outages per year. Weather used to account for about 17 to 21 percent of all root causes. Now, in the last five years, it’s accounting for 68 to 73 percent of all major outages.”

As previously reported by Off The Grid News, the power grid received a “D+” grade on its power grid report card from the American Society of Civil Engineers (ASCE) in 2013. The power grid grade card rating means the energy infrastructure is in “poor to fair condition and mostly below standard, with many elements approaching the end of their service life.” It further means a “large portion of the system exhibits significant deterioration” with a “strong risk of failure.”

“America relies on an aging electrical grid and pipeline distribution systems, some of which originated in the 1880s,” the 2013 ASCE report read. “Investment in power transmission has increased since 2005, but ongoing permitting issues, weather events, and limited maintenance have contributed to an increasing number of failures and power interruptions.”

As The Times noted, the US power grid as it exists today was built shortly after World War II, with the design dating back to Thomas Edison. While Edison was a genius, he and his contemporaries could not have envisioned all the strains the modern world would place upon the grid and the multitude of tech gadgets many Americans treat as an extension of their body. While the drain on the grid has advanced substantially, the infrastructure itself has not.

There are approximately 5 million miles of electrical transmission lines throughout the United States, and thousands of power generating plants dot the landscape. The electrical grid is managed by a group of 3,300 different utilities and serve about 150 million customers, The Times said. The entire power grid system is currently valued at $876 billion.

Many believe the grid is vulnerable to an attack on substations and other threats.

Former Department of Homeland Security Secretary Janet Napolitano once said that a power grid cyber attack is a matter of “when” not “if,” as Russians hacked utilities incidents have shown.

 

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China's nuclear energy on steady development track, say experts

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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