France reaffirms faith in nuclear power

By International Herald Tribune


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It looks like an ordinary building site, but for the two massive, rounded concrete shells looming above the ocean, like dusty mushrooms.

Here on the Normandy coast, France is building its newest nuclear reactor, the first in 10 years, costing $5.1 billion. But already, President Nicolas Sarkozy has announced that France will build another like it.

Flamanville is a vivid example of the French choice for nuclear power, made in the late 1950s by Charles de Gaulle, intensified during the oil shocks of the 1970s and maintained despite the nightmarish nuclear accidents of Three Mile Island and Chernobyl.

Nuclear power provides 77 percent of France's electricity, according to the government, and relatively few public doubts are expressed in a country with little coal, oil or natural gas.

With the wildly fluctuating cost of oil, anxiety over global warming from burning fossil fuels and new concerns about the impact of biofuels on the price of food for the poor, nuclear energy is getting a second look in countries like the United States and Britain. Even Germany, committed to phasing out nuclear power by 2021, is debating whether to change its mind.

France is way ahead. Électricité de France, or EDF, is in talks to buy British Energy, for about $24 billion, to renovate Britain's nuclear plants and build new ones. The French have already contracted to build a third-generation European Pressurized Reactor of the Flamanville type — the world's safest and most powerful — in Abu Dhabi and China.

There is pride in French exceptionalism and in the technical skill that has produced an industry with no major accidents. In a recent op-ed article in Le Figaro, for example, Yves Thréard boasted: "France hasn't any oil, but she knew how to exploit a rich idea. In the whirlwind of globalization, civil nuclear power became a weapon, commercial and political, that allowed the country to remain at the avant-garde in the concert of nations."

A senior aide to Jean-Louis Borloo, the minister of ecology, sustainable development and planning, said that France "sees a wide trend developing" toward more use of nuclear energy.

"A lot of countries realize that with the rising price of fossil fuels and energy, and the climate emergency, nuclear can be part of the solution," said the aide, who spoke anonymously under the rules of his ministry.

He said that France's choice for a "closed fuel cycle" — reprocessing used nuclear fuel to recover plutonium made in the reactors so it can be reused — was safer. "This way, nuclear energy can bring a lot — it's CO2-free energy."

Sarkozy said that each European Pressurized Reactor that "replaces a gas-powered electricity plant saves two billion cubic meters of gas each year, and each EPR replacing a coal plant means cutting 11 million tons of CO2."

France generates half of its own total energy, up from 23 percent in 1973, despite increased consumption.

Electrical power generation accounts for only 10 percent of France's greenhouse gases, compared with an average of 40 percent in other industrialized countries, according to EDF.

France has 58 operating nuclear reactors, the highest number of any nation besides the United States. In America, where nuclear construction has been moribund, there is also new interest. At the moment, 19.4 percent of the electricity generated in the United States is from 104 nuclear plants, according to the Department of Energy.

The Nuclear Regulatory Agency has in hand or expects applications to build 34 reactors, of which seven are European pressurized water reactors of the Flamanville type — and, unlike current American reactors, allow output to vary to meet fluctuating demand.

The Flamanville reactor is based on a French-German design, which itself is based on an earlier Westinghouse design. EDF has an American partner, Constellation Energy, to sell the new model as a joint venture called UniStar Nuclear, which has already ordered some of the larger parts for one reactor. Ironically, its main competitor is Westinghouse, now owned by Toshiba.

For all the happy talk in France, however, there are continuing doubts and confusion about nuclear power, accentuated by a series of accidents and alerts in July. At a nuclear plant in Tricastin, in Provence, 163 pounds of untreated uranium in liquid leaked from a faulty tank during a draining operation, seeping into the ground and then into rivers that flow into the Rhône.

While the two-year-old Authority for Nuclear Security, an independent body overseeing civilian nuclear activities, called it a category one (out of seven) incident that posed no health risk, the local prefect banned fishing, irrigation, swimming and the use of well water. The ban lasted 14 days, and the government criticized Areva, the nuclear group that is mostly state-owned, for not informing local authorities quickly or adequately. The treatment station, which was old, was being replaced, and remains shut.

Other minor accidents occurred in quick succession: a burst underground pipe at another site north of Tricastin, which leaked a tiny amount of uranium inside plant grounds, and then another accident at Tricastin itself, when 100 employees were contaminated by radioactive particles that escaped from a pipe.

The government, Areva and EDF have played down the accidents. Borloo said there were 86 category-one nuclear incidents in France in 2007 and 114 in 2006. Borloo's aide, pointing to the Authority for Nuclear Security, said the Tricastin "microevent" showed that "our system of security is extremely responsive and transparent, and that the media and public opinion needed a training period to understand how the system of nuclear security works in France."

Still, there is continuing nervousness. Sales of bottled water increased, and even a nearby appellation of local wine, Côteaux du Tricastin, is exploring whether to change its name, according to Henri Bour, who runs the local wine council.

A prominent French anti-nuclear lobby, Sortir du Nucléaire, is pressing to phase out nuclear power, which it considers too dangerous and too expensive because of the need to manage nuclear waste. The group wants a "sustainable transition" to renewable energy options like solar, hydro and wind power. Last year, on the 21st anniversary of the Chernobyl meltdown, 30 protesters at Flamanville blocked entrances and chained themselves to cranes.

There have also been some construction issues. In April, the Authority for Nuclear Safety criticized some of the welds and the quality of the concrete work at Flamanville, but work resumed in June. Philippe Leynié, the site manager here for EDF, said the problem involved missing pins on the metal rebar and was not serious.

Nonetheless, an IFOP opinion poll conducted for Le Monde after the Tricastin leaks showed that 67 percent of the French considered it vital to keep nuclear power in the country's energy mix, compared with 52 percent in 2002. Only 27 percent judged the risks of nuclear energy to be the most worrying, compared with 50 percent who thought global warming was the predominant risk. In 2002, 33 percent worried most about nuclear risks and only 20 percent about global warming.

For Flamanville, though, a village of 1,780 people, nuclear power has re-energized the town. There are no pretty beaches here, just granite cliffs above a cold sea. For hundreds of years, the village lived off the granite, cutting and selling it, shipping it first by boat, then by railroad. Flamanville granite, said Mayor Patrick Fauchon, was used to pave the Place de la Concorde in Paris.

But by the middle of the 19th century it became too expensive compared with other sources, and the village survived by digging iron from an undersea mine, said Fauchon, who has been mayor since 1983. "It was always a company town," he said.

But the mine closed in 1962, and the population of the village dropped to 1,150 people. When the idea of a nuclear plant arose, in 1975, there was considerable debate. But residents voted for the nuclear plant, which meant new jobs.

The granite cliffs and cold sea, while not hospitable to bathers, were ideal for these nuclear reactors, which need a hard foundation and access to plentiful cold water.

Now, after so many years, a generation of workers here has already retired from the nuclear industry.

"At the regional level, some towns accept having nuclear plants and others oil refineries," Fauchon said. "I don't ask Bretons if they're happy about having pigsties and raising pigs, which creates another source of pollution."

Still, he thinks these days of the effect on towns that are losing their regiments as France's military modernizes. "At least when we speak of energy, it's a permanent need," Fauchon said. "When we speak of an industrial tool with a lifespan of 60 years, we have economic activity for two generations."

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Electricity deal clinches $100M bitcoin mining operation in Medicine Hat

Medicine Hat Bitcoin Mining Deal delivers 42 MW electricity to Hut 8, enabling blockchain data centres, cryptocurrency mining expansion, and economic diversification in Alberta with low-cost power, land lease, and rapid construction near Unit 16.

 

Key Points

A pact to supply 42 MW and lease land, enabling Hut 8's blockchain data centres and crypto mining growth in Alberta.

✅ 42 MW electricity from city; land lease near Unit 16

✅ Hut 8 expands to 60.7 MW; blockchain data centres

✅ 100 temporary jobs; 42 ongoing roles in Alberta

 

The City of Medicine Hat has agreed to supply electricity and lease land to a Toronto-based cryptocurrency mining company, at a time when some provinces are pausing large new crypto loads in a deal that will see $100 million in construction spending in the southern Alberta city.

The city will provide electric energy capacity of about 42 megawatts to Hut 8 Mining Corp., which will construct bitcoin mining facilities near the city's new Unit 16 power plant.

The operation is expected to be running by September and will triple the company's operating power to 60.7 megawatts, Hut 8 said, amid broader investments in new turbines across Canada.

#google#

"The signing of the electricity supply agreement and the land lease represents a key component in achieving our business plan for the roll-out of our BlockBox Data Centres in low-cost energy jurisdictions," said the company's board chairman, Bill Tai, in a release.

"[Medicine Hat] offers stable, cost-competitive utility rates and has been very welcoming and supportive of Hut 8's fast-paced growth plans."

In bitcoin mining operations, rows upon rows of power-consuming computers are used to solve mathematical puzzles in exchange for bitcoins and confirm crytopcurrency transactions. The verified transactions are then added to the public ledger known as the blockchain.

Hut 8's existing 18.7-megawatt mining operation at Drumheller, Alta. — a gated compound filled with rows of shipping containers housing the computers — has so far mined 750 bitcoins. Bitcoin was trading Tuesday morning for about $11,180.

Medicine Hat Mayor Ted Clugston says the deal is part of the city's efforts to diversify its economy.

We've made economic development a huge priority down here because we were hit very, very hard by the oil and gas decline," he said, noting that being the generator and vendor of its own electricity puts the city in a uniquely good position.

"Really we're just turning gas into electricity and they're taking that electricity and turning it into blockchain, or ones and zeroes."

Elsewhere in Canada, using more electricity for heat has been urged by green energy advocates, reflecting broader electrification debates.

Hut 8 says construction of the facility is starting right away and will create about 100 temporary jobs. The project is expected to be finished by the third-quarter of this year.

The Medicine Hat mining operation will generate 42 ongoing jobs for electricians, general labourers, systems technicians and security staff.

 

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Covid-19 is reshaping the electric rhythms of New York City

COVID-19 Electricity Demand Shift flattens New York's load curve, lowers peak demand, and reduces wholesale prices as NYISO operators balance the grid amid stay-at-home orders, rising residential usage, cheap natural gas, and constrained renewables.

 

Key Points

An industry-wide change in load patterns: flatter peaks, lower prices, and altered grid operations during lockdowns.

✅ NYISO operators sequestered to maintain reliable grid control

✅ Morning and evening peaks flatten; residential use rises mid-day

✅ Wholesale prices drop amid cheap natural gas and reduced demand

 

At his post 150 miles up the Hudson, Jon Sawyer watches as a stay-at-home New York City stirs itself with each new dawn in this era of covid-19.

He’s a manager in the system that dispatches electricity throughout New York state, keeping homes lit and hospitals functioning, work that is so essential that he, along with 36 colleagues, has been sequestered away from home and family for going on four weeks now, to avoid the disease, a step also considered for Ontario power staff during COVID-19 measures.

The hour between 7 a.m. and 8 a.m. once saw the city bounding to life. A sharp spike would erupt on the system’s computer screens. Not now. The disease is changing the rhythms of the city, and, as this U.S. grid explainer notes, you can see it in the flows of electricity.

Kids are not going to school, restaurants are not making breakfast for commuters, offices are not turning on the lights, and thousands if not millions of people are staying in bed later, putting off the morning cup of coffee and a warm shower.

Electricity demand in a city that has been shut down is running 18 percent lower at this weekday morning hour than on a typical spring morning, according to the New York Independent System Operator, Sawyer’s employer. As the sun rises in the sky, usage picks up, but it’s a slower, flatter curve.

Though the picture is starkest in New York, it’s happening across the country. Daytime electricity demand is falling, even accounting for the mild spring weather, and early-morning spikes are deflating, with similar patterns in Ontario electricity demand as people stay home. The wholesale price of electricity is falling, too, driven by both reduced demand and the historically low cost of natural gas.

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Falling demand will hit the companies that run the “merchant generators” hardest. These are the privately owned power plants that sell electricity to the utilities and account for about 57 percent of electricity generation nationwide.

Closed businesses have resulted in falling demand. Residential usage is up — about 15 percent among customers of Con Edison, which serves New York City and Westchester County — as workers and schoolchildren stay home, while in Canada Hydro One peak rates remain unchanged for self-isolating customers, but it’s spread out through the day. Home use does not compensate for locked-up restaurants, offices and factories. Or for the subway system, which on a pre-covid-19 day used as much electricity as Buffalo.

Hospitals are a different story: They consume twice as much energy per square foot as hotels, and lead schools and office buildings by an even greater margin. And their work couldn’t be more vital as they confront the novel coronavirus.

Knowing that, Sawyer said, puts the ordinary routines of his job, which rely on utility disaster planning, the things about it he usually takes for granted, into perspective.

“Keeping the lights on: It comes to the forefront a little more when you understand, ‘I’m going to be sequestered on site to do this job, it’s so critical,’” he said, speaking by phone from his office in East Greenbush, N.Y., where he has been living in a trailer, away from his family, since March 23.

As coronavirus hospitalizations in New York began to peak in April, emergency medicine physician Howard Greller recorded his reflections. (Whitney Leaming/The Washington Post)
Sawyer, 53, is a former submariner in the U.S. Navy, so he has experience when it comes to being isolated from friends and family for long periods. Many of his colleagues in isolation, who all volunteered for the duty, also are military veterans, and they’re familiar with the drill. Life in East Greenbush has advantages over a submarine — you can go outside and throw a football or Frisbee or walk or run the trail on the company campus reserved for the operators, and every day you can use FaceTime or Skype to talk with your family.

His wife understood, he said, though “of course it’s a sacrifice.” But she grasped the obligation he felt to be there with his colleagues and keep the power on.

“It’s a new world, it’s definitely an adjustment,” said Rich Dewey, the system’s CEO, noting that America’s electricity is safe for now. “But we’re not letting a little virus slow us down.”

There are 31 operators, two managers and four cooks and cleaners all divided between East Greenbush, which handles daytime traffic, and another installation just west of Albany in Guilderland, which works at night. The operators work 12-hour shifts every other day.

Computers recalibrate generation, statewide, to equal demand, digesting tens of thousands of data points, every six seconds. Other computers forecast the needs looking ahead 2½ hours. The operators monitor the computers and handle the “contingencies” that inevitably arise.

They dispatch the electricity along transmission lines ranging from 115,000 volts to 765,000 volts, much of it going from plants and dams in western and northern New York downstate toward the city and Long Island.

They always focus on: “What is the next worse thing that can happen, and how can we respond to that?” Sawyer said.

It’s the same shift and the same work they’ve always done, and that gives this moment an oddly normal feeling, he said. “There’s a routine to it that some of the people working at home now don’t have.”

Medical workers check in with them daily to monitor their physical health and mental condition. So far, there have been no dropouts.

Cheap oil doesn’t mean much when no one’s going anywhere

Statewide, the daily demand for electricity has fallen nearly 9 percent.

The distribution system in New England is looking at a 3 to 5 percent decline; the Mid-Atlantic states at 5 to 7 percent; Washington state at 10 percent; and California by nearly as much. In Texas, demand is down 2 percent, “but even there you’re still seeing drops in the early-morning hours,” said Travis Whalen, a utility analyst with S&P Global Platts.

In the huge operating system that embraces much of the middle of the country, usage has fallen more than 8 percent — and the slow morning surge doesn’t peak until noon.

In New York, there used to be a smaller evening spike, too (though starting from a higher load level than the one in the morning). But that’s almost impossible to see anymore because everyone isn’t coming home and turning on the lights and TV and maybe throwing a load in the laundry all at once. No one goes out, either, and the lights aren’t so bright on Broadway.

California, in contrast, had a bigger spike in the evening than in the morning before covid-19 hit; maybe some of that had to do with the large number of early risers spreading out the morning demand and highlighting electricity inequality that shapes access. Both spikes have flattened but are still detectable, and the evening rise is still the larger.

Only at midnight, in New York and elsewhere, does the load resemble what it used to look like.

The wholesale price of electricity has fallen about 40 percent in the past month, according to a study by S&P Global Platts. In California it’s down about 30 percent. In a section covered by the Southwest Power Pool, the price is down 40 percent from a year ago, and in Indiana, electricity sold to utilities is cheaper than it has been in six years.

Some of the merchant generators “are going to be facing some rather large losses,” said Manan Ahuja, also an analyst with S&P Global Platts. With gas so cheap, coal has built up until stockpiles average a 90-day supply, which is unusually large. Ahuja said he believes renewable generators of electricity will be especially vulnerable because as demand slackens it’s easier for operators to fine-tune the output from traditional power plants.

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As Dewey put it, speaking of solar and wind generators, “You can dispatch them down but you can’t dispatch them up. You can’t make the wind blow or the sun shine.”

Jason Tundermann, a vice president at Level 10 Energy, which promotes renewables, argued that before the morning and evening spikes flattened they were particularly profitable for fossil fuel plants. He suggested electricity demand will certainly pick up again. But an issue for renewable projects under development is that supply chain disruptions could cause them to miss tax credit deadlines.

With demand “on pause,” as Sawyer put it, and consumption more evenly spread through the day, the control room operators in East Greenbush have a somewhat different set of challenges. The main one, he said, is to be sure not to let those high-voltage transmission lines overload. Nuclear power shows up as a steady constant on the real-time dashboard; hydropower is much more up and down, depending on the capacity of transmission lines from the far northern and western parts of the state.

Some human habits are more reliably fixed. The wastewater that moves through New York City’s sewers — at a considerably slower pace than the electricity in the nearby wires — hasn’t shown any change in rhythm since the coronavirus struck, according to Edward Timbers, a spokesman for the city’s Department of Environmental Protection. People may be sleeping a little later, but the “big flush” still arrives at the wastewater treatment plants, about three hours or so downstream from the typical home or apartment, every day in the late morning, just as it always has.
 

 

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Should California classify nuclear power as renewable?

California Nuclear Renewable Bill AB 2898 seeks to add nuclear to the Renewables Portfolio Standard, impacting Diablo Canyon, PG&E compliance, carbon-free targets, and potential license extensions while addressing climate goals and natural gas reliance.

 

Key Points

A bill to add nuclear to California's RPS, influencing Diablo Canyon, PG&E planning, and carbon-free climate targets.

✅ Reclassifies nuclear as renewable in California's RPS.

✅ Could influence Diablo Canyon license extension and ownership.

✅ Targets carbon-free goals while limiting natural gas reliance.

 

Although he admits it's a long shot, a member of the California Legislature from the district that includes the Diablo Canyon nuclear plant has introduced a bill that would add nuclear power to the state's list of renewable energy sources.

"I think that nuclear power is an important component of generating large-scale electricity that's good for the environment," said Jordan Cunningham, R-San Luis Obispo. "Without nuclear as part of the renewable portfolio, we're going to have tremendous difficulty meeting the state's climate goals without a significant cost increase on electricity ratepayers."

Established in 2002, California's Renewables Portfolio Standard spells out the power sources eligible to count toward the state's goals to wean itself of fossil fuels. The list includes solar, wind, biomass, geothermal, small hydroelectric facilities and even tidal currents. The standard has been updated, currently calling for 60 percent of California's electricity to come from renewables by 2030 and 100 percent from carbon-free sources by 2045, even as some analyses argue net-zero emissions may be difficult to achieve without nuclear power.

Nuclear power is not part of the portfolio standard and Diablo Canyon — the only remaining nuclear plant in California — is scheduled to stop producing electricity by 2025, even as some Southern California plant closures face postponement to maintain grid reliability.

Pacific Gas & Electric, the operators of Diablo Canyon, announced in 2016 an agreement with a collection of environmental and labor groups to shut down the plant, often framed as part of a just transition for workers and communities. PG&E said Diablo will become uneconomical to run due to changes in California's power grid — such as growth of renewable energy sources, increased energy efficiency measures and the migration of customers from traditional utilities to community choice energy programs.

But Cunningham thinks the passage of Assembly Bill 2898, which he introduced last week, — as innovators like Bill Gates' mini-reactor venture tout new designs — could give the plant literally a new lease on life.

"If PG&E were able to count the power produced (at Diablo) toward its renewable goals, it might — I'm not saying it will or would, but it might — cause them to reconsider applying to extend the operating license at Diablo," Cunningham said.

Passing the bill, supporters say, could also make Diablo Canyon attractive to an outside investor to purchase and then apply to the Nuclear Regulatory Commission for a license extension.

But nuclear power has long generated opposition in California and AB 2898 will face long odds in Sacramento, and similar efforts elsewhere have drawn opposition from power producers as well. The Legislature is dominated by Democrats, who have expressed more interest in further developing wind and solar energy projects than offering a lifeline to nuclear.

And if the bill managed to generate momentum, anti-nuclear groups will certainly be quick to mobilize, reflecting a national energy debate over Three Mile Island and whether to save struggling plants.

When told of Cunningham's bill, David Weisman, outreach coordinator for the Alliance for Nuclear Responsibility, said flatly, "Diablo Canyon has become a burdensome, costly nuclear white elephant."

Critics say nuclear power by definition cannot be considered renewable because it leaves behind waste in the form of spent nuclear fuel that then has to be stored, while supporters point to next-gen nuclear designs that aim to improve safety and costs. The federal government has not found a site to deposit the waste that has built up over decades from commercial nuclear power plants.

Even though Diablo Canyon is the only nuclear plant left in the Golden State, it accounts for 9 percent of California's power mix. Cunningham says if the plant closes, the state's reliance on natural gas — a fossil fuel — will increase, pointing to what happened when the San Onofre Nuclear Generating Station closed.

In 2011, the final full year operations for San Onofre, nuclear accounted for 18.2 percent of in-state generation and natural gas made up 45.4 percent. The following year, nuclear dropped to 9.3 percent and gas shot up to 61.1 percent of in-state generation.

"If we're going to get serious about being a national leader as California has been on dealing with climate change, I think nuclear is part of the answer," Cunningham said.

But judging from the response to an email from the Union-Tribune, PG&E isn't exactly embracing Cunningham's bill.

"We remain focused on safely and reliably operating Diablo Canyon Power Plant until the end of its current operating licenses and planning for a successful decommissioning," said Suzanne Hosn, a PG&E senior manager at Diablo Canyon. "The Assemblyman's proposal does not change any of PG&E's plans for the plant."

Cunningham concedes AB 2898 is "a Hail Mary pass" but said "it's an important conversation that needs to be had."

The second-term assemblyman introduced a similar measure late last year that sought to have the Legislature bring the question before voters as an amendment to the state constitution. But the legislation, which would require a two-thirds majority vote in the Assembly and the Senate, is still waiting for a committee assignment.

AB 2898, on the other hand, requires a simple majority to move through the Legislature. Cunningham said he hopes the bill will receive a committee assignment by the end of next month.
 

 

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Energy-hungry Europe to brighten profit at US solar equipment makers

European Solar Inverter Demand surges as photovoltaics and residential solar expand during the clean energy transition, driven by high natural gas prices; Germany leads, boosting Enphase and SolarEdge sales for rooftop systems and grid-tied installations.

 

Key Points

Rising European need for solar inverters, fueled by residential PV growth, high energy costs, and clean energy policies.

✅ Germany leads EU rooftop PV installations

✅ Enphase and SolarEdge see revenue growth

✅ High gas prices and policies spur adoption

 

Solar equipment makers are expected to post higher quarterly profit, benefiting from strong demand in Europe for critical components that convert energy from the sun into electricity, amid record renewable momentum worldwide.

The continent is emerging as a major market for solar firms as it looks to reduce its dependence on the Russian energy supply and accelerate its clean energy transition, with solar already reshaping power prices in Northern Europe across the region, brightening up businesses of companies such as Enphase Energy (ENPH.O) and SolarEdge Technologies (SEDG.O), which make solar inverters.

Wall Street expects Enphase and SolarEdge to post a combined adjusted net income of $323.8 million for the April-June quarter, a 56.7% jump from a year earlier, even as demand growth slows in the United States.

The energy crisis in Europe is not as acute as last year when Western sanctions on Russia severely crimped supplies, but prices of natural gas and electricity continue to be much higher than in the United States, Raymond James analyst Pavel Molchanov said.

As a result, demand for residential solar keeps growing at a strong pace in the region, with Germany being one of the top markets and solar adoption in Poland also accelerating in recent years across the region.

About 159,000 residential solar systems became operational in the first quarter in Germany amid a solar power boost that reflects policy and demand, a 146% rise from a year earlier, according to BSW solar power association.

Adoption of solar is also helping European homeowners have greater control over their energy costs as fossil fuel prices tend to be more volatile, Morningstar analyst Brett Castelli said.

SolarEdge, which has a bigger exposure to Europe than Enphase, said its first-quarter revenue from the continent more than doubled compared with last year.

In comparison, growth in the United States has been tepid due to lukewarm demand in states like Texas and Arizona where cheaper electricity prices make the economics of residential solar less attractive, even though solar is now cheaper than gas in parts of the U.S. market.

Higher interest rates following the U.S. Federal Reserve's recent actions to tame inflation are also weighing on demand, even as power outage risks rise across the United States.

Analysts also expect weakness in California where a new metering reform reduces the money credited to rooftop solar owners for sending excess power into the grid, underscoring how policy shifts can reshape the sector. The sunshine state accounts for nearly a third of the U.S. residential solar market.

Enphase will report its results on Thursday after the bell, while SolarEdge will release its second-quarter numbers on Aug. 1.

 

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SDG&E Wants More Money From Customers Who Don’t Buy Much Electricity. A Lot More.

SDG&E Minimum Bill Proposal would impose a $38.40 fixed charge, discouraging rooftop solar, burdening low income households, and shifting grid costs during peak demand, as the CPUC weighs consumer impacts and affordability.

 

Key Points

Sets a $38.40 monthly minimum bill that raises low usage costs, deters rooftop solar, and burdens low income households.

✅ $38.40 fixed charge regardless of usage

✅ Disincentivizes rooftop solar investments

✅ Disproportionate impact on low income customers

 

The utility San Diego Gas & Energy has an aggressive proposal pending before the California Public Utilities Commission, amid recent commission changes in San Diego that highlight how regulatory decisions affect local customers: It wants to charge most residential customers a minimum bill of $38.40 each month, regardless of how much energy they use. The costs of this policy would hit low-income customers and those who generate their own energy with rooftop solar. We’re urging the Commission to oppose this flawed plan—and we need your help.

SDG&E’s proposal is bad news for sustainable energy. About half of the customers whose bills would go up under this proposal have rooftop solar. The policy would deter other customers from investing in rooftop solar by making these investments less economical. Ultimately, lost opportunities for solar would mean burning more gas in polluting power plants. 

The proposal is also bad news for people who already have to scrimp on energy costs. Most customers with big homes and billowing air conditioners won't notice if this policy goes into effect, because they use at least $38 worth of electricity a month anyway. But for households that don’t buy much electricity from the company, including those in small apartments without air conditioning, this proposal would raise the bills. Even for customers on special low-income rates, amid electric bill changes statewide, SDG&E wants a minimum bill of $19.20.

Penalizing customers who don’t use much electricity would disproportionately hurt lower-income customers, raising energy equity concerns across the region, who tend to use less energy than their wealthier neighbors. In the region SDG&E serves, the average family in an apartment uses half as much electricity as a single-family residence. Statewide, low-income households are more than four times as likely to be low-usage electricity customers than high-income households. When it gets hot, residential electricity patterns are often driven by air conditioning. The vast majority of SDG&E's customers live in the coastal climate zone, where access to air conditioning is strongly linked to income: Households with incomes over $150,000 are more than twice as likely to have air conditioning than families making less than $35,000, with significant racial disparities in who has AC.

In its attempt to rationalize its request, SDG&E argues that it should charge everyone for infrastructure costs that do not depend on how much energy they use. But the cost of the grid is driven by how much energy SDG&E delivers on hot summer afternoons, when some customers blast their AC and demand for electricity peaks. If more customers relied on their own solar power or conserved energy, the utility would spend less on its grid and help rein in soaring electricity prices over time.

In the long term, reducing incentives to go solar and conserve energy will strain the grid and drive up costs for everyone, especially as lawmakers may overturn income-based charges and reshape rate design. SDG&E's arguments are part of a standard utility playbook for trying to hike income-based fixed charges, and consumer advocates have repeatedly shut them down.  As far as we know, no regulators in the country have allowed a utility to charge customers over $38 for the “privilege” of accessing electric service. 

 

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Greening Ontario's electricity grid would cost $400 billion: report

Ontario Electricity Grid Decarbonization outlines the IESO's net-zero pathway: $400B investment, nuclear expansion, renewables, hydrogen, storage, and demand management to double capacity by 2050 while initiating a 2027 natural gas moratorium.

 

Key Points

A 2050 plan to double capacity, retire gas, and invest $400B in nuclear, renewables, and storage for a net-zero grid.

✅ $400B over 25 years to meet net-zero electricity by 2050

✅ Capacity doubles to 88,000 MW; demand grows ~2% annually

✅ 2027 gas moratorium; build nuclear, renewables, storage

 

Ontario will need to spend $400 billion over the next 25 years in order to decarbonize the electricity grid and embrace clean power according to a new report by the province’s electricity system manager that’s now being considered by the Ford government.

The Independent System Electricity Operator (IESO) was tasked with laying out a path to reducing Ontario’s reliance on natural gas for electricity generation and what it would take to decarbonize the entire electricity grid by 2050.

Meeting the goal, the IESO concluded, will require an “aggressive” approach of doubling the electricity capacity in Ontario over the next two-and-a-half decades — from 42,000 MW to 88,000 MW — by investing in nuclear, hydrogen and wind and solar power while implementing conservation policies and managing demand.

“The process of fully eliminating emissions from the grid itself will be a significant and complex undertaking,” IESO president Lesley Gallinger said in a news release.

The road to decarbonization, the IESO said, begins with a moratorium on natural gas power generation starting in 2027 as long as the province has “sufficient, non-emitting supply” to meet the growing demands on the grid.

The approach, however, comes with significant risks.

The IESO said hydroelectric and nuclear facilities can take 10 to 15 years to build and if costs aren’t controlled the plan could drive up the price of clean electricity, turning homeowners and businesses away from electrification.

“Rapidly rising electricity costs could discourage electrification, stifle economic growth or hurt consumers with low incomes,” the report states.

The IESO said the province will need to take several “no regret” actions, including selecting sites and planning to construct new large-scale nuclear plants as well as hydroelectric and energy storage projects and expanding energy-efficiency programs beyond 2024.

READ MORE: Ontario faces calls to dramatically increase energy efficiency rebate programs

Ontario’s minister of energy didn’t immediately commit to implementing the recommendations, citing the need to consult with stakeholders first.

“I look forward to launching a consultation in the new year on next steps from today’s report, including the potential development of major nuclear, hydroelectric and transmissions projects,” Todd Smith said in a statement.

Currently, electricity demand is increasing by roughly two per cent per year, raising concerns Ontario could be short of electricity in the coming years as the manufacturing and transportation sectors electrify and as more sectors consider decarbonization.

At the same time, the province’s energy supply is facing “downward pressure” with the Pickering nuclear power plant slated to wind down operations and the Darlington nuclear generating station under active refurbishment.

To meet the energy need, the Ford government said it intended to extend the life of the Pickering plant until 2026.

READ MORE: Ontario planning to keep Pickering nuclear power station open until 2026

But to prepare for the increase, the Ontario government was told the province would also need to build new natural gas facilities to bridge Ontario’s electricity supply gap in the near term — a recommendation the Ford government agreed to.

The IESO said a request for proposals has been opened and the province is looking for host communities, with the expectation that existing facilities would be upgraded before projects on undeveloped land would be considered.

The IESO said the contract for any new facilities would expire in 2040, and all natural gas facilities would be retired in the 2040s.

 

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