Biomass assistance program announced

EIA U.S. Power Outlook 2023-2024 forecasts lower electricity demand, softer wholesale prices, and faster renewable growth from solar and wind, with steady natural gas, reduced coal generation, slight nuclear gains, and ERCOT market moderation.

Key Points

An EIA forecast of a 2023 demand dip, 2024 rebound, lower prices, and a higher renewable share in the U.S. power mix.

✅ Demand dips to 4,000 billion kWh in 2023; rebounds in 2024.

✅ ERCOT on-peak prices average about $35/MWh versus $80/MWh in 2022.

✅ Renewables grow to 24% share; coal falls to 17%; nuclear edges up.

U.S. power consumption is expected to slip about 1% in 2023 from the previous year as milder weather slows usage from the record high hit in 2022, consistent with recent U.S. consumption trends observed over the past several years, the U.S. Energy Information Administration (EIA) said in its Short-Term Energy Outlook (STEO).

EIA projected that electricity demand is on track to slide to 4,000 billion kilowatt-hours (kWh) in 2023 from a historic high of 4,048 billion kilowatt-hours (kWh) in 2022, reflecting patterns seen during COVID-19 demand shifts in prior years, before rising to 4,062 billion kWh in 2024 as economic growth ramps up.

Less demand coupled with more electricity generation from cheap renewable power sources and lower natural gas prices is forecast to slash wholesale power prices this year, the EIA said.

The on-peak wholesale price at the North hub in Texas’ ERCOT power market is expected to average about $35 per megawatt-hour (MWh) in 2023 compared with an average of nearly $80/MWh in 2022 after the 2022 price surge in power markets.

As capacity for renewables like solar and wind ramp up and as natural gas prices ease amid the broader energy crisis pressures, the EIA said it expects coal-fired power generation to be 17% less in the spring of 2023 than in the spring of 2022.

Coal will provide an average of 17% of total U.S. generation this year, down from 20% last year, as utilities shift investments toward electricity delivery and away from new power production, the EIA said.

The share of total generation supplied by natural gas is seen remaining at about the same this year at 39%. The nuclear share of generation is seen rising slightly to 20% this year from 19% in 2022. Generation from renewable energy sources grows the most in the forecast, increasing to 24% this year from a share of 22% last year, even as residential electricity bills rose in 2022 across the U.S.

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EU Electricity Market Reform advances two-way CfDs, PPAs, and fixed-price tariffs to cut volatility, support renewables and nuclear, stabilize investor revenues, and protect consumers from price spikes across wholesale power markets.

Key Points

An EU plan expanding two-way CfDs, PPAs, and fixed-price contracts to curb price swings and support low-carbon power.

✅ Two-way CfDs return excess revenues to consumers

✅ Boosts PPAs and fixed-price retail options

✅ Targets renewables, nuclear; limits fossil exposure

The European Union wants to expand the use of contracts that pay power plants a fixed price for electricity, a draft proposal showed, as part of an electricity market revamp to shield European consumers from big price swings.

The European Commission pledged last year to reform the EU's electricity market rules, after record-high gas prices, caused by cuts to Russian flows, sent power prices soaring, prompting debates over gas price cap strategies in response.

A draft of the EU executive's proposal, seen by Reuters on Tuesday and due to be published on Mar. 16, steered clear of the deep redesign of the electricity market that some member states have called for, even as nine EU countries opposed sweeping reforms as a fix earlier in the crisis, suggesting instead limited changes to nudge countries towards more predictable, fixed-price power contracts.

If EU countries want to support new investments in wind, solar, geothermal, hydropower and nuclear electricity, for example - a point over which France and Germany have wrestled - they should use a two-way contract for difference (CfD) or an equivalent contract, the draft said.

The aim is to provide a stable revenue stream to investors, and help make consumers' energy bills less volatile, even though rolling back electricity prices is tougher than it appears. Restricting this support to renewable and low-carbon electricity also aims to speed up Europe's shift away from fossil fuels.

Two-way CfDs offer generators a fixed "strike price" for their electricity, regardless of the price in short-term energy markets. If the market price is above the CfD strike price, then the extra revenue the generator receives should be handed out to final electricity consumers, the draft EU document said.

Countries should also make it easier for power buyers to sign power purchase agreements (PPA) - another type of long-term contract to directly buy electricity from a generator.

Governments should also make sure consumers have access to fixed-price electricity contracts - echoing France's new electricity pricing scheme to reassure Brussels - giving them the option to avoid a contract that would expose them to volatile prices swings in energy markets, the draft said.

If European energy prices were to spike to extreme levels again, the Commission suggested allowing national governments to temporarily intervene to fix prices while weighing emergency measures to limit prices where needed, and offer consumers and small businesses a share of their electricity at a lower price.

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DOE GOPHURRS Grid Undergrounding accelerates ARPA-E innovations to modernize the power grid, boosting reliability, resilience, and security via underground power lines, AI-driven surveying, robotic tunneling, and safer cable splicing for clean energy transmission and distribution.

Key Points

A DOE-ARPA-E program funding undergrounding tech to modernize the grid and improve reliability and security.

✅ $34M for 12 ARPA-E projects across 11 states

✅ Underground power lines to boost reliability and resilience

✅ Robotics, AI, and safer splicing to cut costs and risks

The U.S. Department of Energy (DOE) has earmarked $34 million for 12 innovative projects across 11 states to bolster and modernize the nation’s power grid, complementing efforts like a Washington state infrastructure grant announced to strengthen resilience.

Under the Grid Overhaul with Proactive, High-speed Undergrounding for Reliability, Resilience, and Security (GOPHURRS) program, this funding is focused on developing efficient and secure undergrounding technologies. The initiative is aligned with President Biden’s vision to strengthen America's energy infrastructure and advance smarter electricity infrastructure priorities, thereby creating jobs, enhancing energy and national security, and advancing towards a 100% clean electricity grid by 2035.

U.S. Secretary of Energy Jennifer M. Granholm emphasized the criticality of modernizing the power grid to facilitate a future powered by clean energy, including efforts to integrate more solar into the grid nationwide, thus reducing energy costs and bolstering national security. This development, she noted, is pivotal in bringing the grid into the 21st Century.

The U.S. electric power distribution system, comprising over 5.5 million line miles and over 180 million power poles, is increasingly vulnerable to weather-related damage, contributing to a majority of annual power outages. Extreme weather events, intensified by climate change impacts across the nation, exacerbate the frequency and severity of these outages. Undergrounding power lines is an effective measure to enhance system reliability for transmission and distribution grids.

Managed by DOE’s Advanced Research Projects Agency-Energy (ARPA-E), the newly announced projects include contributions from small and large businesses, national labs, and universities. These initiatives are geared towards developing technologies that will lower costs, expedite undergrounding operations, and enhance safety. Notable projects involve innovations like Arizona State University’s water-jet construction tool for deploying electrical cables underground, GE Vernova Advanced Research’s robotic worm tunnelling construction tool, and Melni Technologies’ redesigned medium-voltage power cable splice kits.

Other significant projects include Oceanit’s subsurface sensor system for avoiding utility damage during undergrounding and Pacific Northwest National Laboratory’s AI system for processing geophysical survey data. Prysmian Cables and Systems USA’s project focuses on a hands-free power cable splicing machine to improve network reliability and workforce safety, complementing state efforts like California's $500 million grid investment to upgrade infrastructure.

Complete descriptions of these projects can be found on the ARPA-E website, while a recent grid report card highlights challenges these efforts aim to address.

ARPA-E’s mission is to advance clean energy technologies with high potential and impact, playing a strategic role in America’s energy security, including military preparedness for grid cyberattacks as a priority. This commitment ensures the U.S. remains a global leader in developing and deploying advanced clean energy technologies.

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Manitoba Hydro 3.5 Percent Rate Increase proposes a smaller electricity rate hike under Public Utilities Board oversight to bolster financial reserves, address debt and Bipole III costs, amid shifting export sales and water flow conditions.

Key Points

It is Manitoba Hydro's proposed 3.5% electricity rate hike for 2019-20 to shore up finances under PUB oversight.

✅ PUB review sought without lengthy hearing

✅ Revenue boost forecast at 59 million dollars

✅ Natural gas rates flat; class shifts adjust bills

Manitoba Hydro is scaling back its rate hike request for next year, instead of the annual 7.9 per cent hikes the Crown corporation previously said it would need until 2023-24 to address debt. 

Hydro is asking the Public Utilities Board for a 3.5 per cent rate increase next year, which would take effect on April 1.

In last week's application, Hydro said its new board is reviewing the corporation's financial picture. Once that is complete, the utility expects to submit a new multi-year rate plan in late 2019 that addresses the organization's long-term future.

"It's too speculative at this point to discuss any possible future rate increases," spokesperson Bruce Owen said in an email.

The proposed increase next year is similar to other jurisdictions and nearly in line with the Public Utilities Board's decision to allow an average 3.6 per cent jump in electricity rates in 2018-19, which began this summer.

"The requested 3.5 per cent rate increase … generates a modest level of net income under average water flow conditions that will assist in gradually building the revenue base and reduce the risk of the corporation incurring a loss" in 2019-20, the rate application said.

If approved, consumers would face their second rate increase from Hydro in under a year.

Crown Services Minister Colleen Mayer said she's sympathetic to customers bracing for another rate increase amid NL rate hike concerns that far exceeds the rate of inflation.

"I hear that, very clearly," she said. "The NDP left us with an insurmountable problem — we're trying to fix that."

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Next year's rate increase is projected to bring in $59 million of revenue, boosting the Crown corporation's financial reserves by $31 million.

Without it, the utility would deal with a net loss, it said.

This time, Hydro officials are asking PUB to forgo a rate hearing, suggesting neither itself nor the board has the resources for a lengthy six- to nine-month process to review an application where not much has changed financially and would generate a "minimum level of net income," Hydro said in a letter to the board.

The short-term rate relief, the letter recommends, should be "awarded in a timely and cost-effective manner, recognizing that the corporation's long-term financial forecasts will be finalized and available for review" in late 2019.

Hydro's net income next year will be lower than projected, the rate application said, due to a reduction in export sales and increases in depreciation and financing costs from Bipole III.

"Even though they had a total implosion of their previous board, on this very issue, they haven't learned lessons and they continue to be cheerleaders for these rapid rate increases," Kinew said, referring to the exodus of every board member but one earlier this year.

Manitoba Hydro's burgeoning debt surpasses $19 billion

On natural gas, Manitoba Hydro is asking PUB for no rate increase for the next two years.

There will, however, be some changes in rates in different customer classes, Owen said, resulting in modest rate reductions for mainly residential customers and increases for customers who use a lot of natural gas.

The corporation also wants to stop collecting fees to support the furnace replacement program. The initiative will continue with existing fees.

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2022 U.S. Power Outage Statistics show lower SAIDI as fewer major events hit, with SAIFI trends, electric reliability, outage duration and frequency shaped by hurricanes, winter storms, vegetation, and utility practices across states.

Key Points

They report SAIDI and SAIFI for 2022, showing outage duration, frequency, and impacts of major weather events.

✅ 2022 SAIDI averaged 5.6 hours; SAIFI averaged 1.4 interruptions.

✅ Fewer major events lowered outage duration versus 2021.

✅ Hurricanes and winter storms drove long outages in several states.

In 2022, U.S. electricity consumers on average experienced about 5.5 hours of power disruptions, a decrease from nearly two hours compared to 2021. This information comes from the latest Annual Electric Power Industry Report. The reduction in yearly power interruptions primarily resulted from fewer significant events in 2022 compared to the previous year, and utility disaster planning continues to support grid resilience as severe weather persists.

Since 2013, excluding major events, the annual average duration of power interruptions has consistently hovered around two hours. Factors contributing to major power disruptions include weather-related incidents, vegetation interference near power lines, and specific utility practices, while pandemic-related grid operations influenced workforce planning more than outage frequency. To assess the reliability of U.S. electric utilities, two key indexes are utilized:

• The System Average Interruption Duration Index (SAIDI) calculates the total length (in hours) an average customer endures non-brief power interruptions over a year.
• The System Average Interruption Frequency Index (SAIFI) tracks the number of times interruptions occur.

The influence of major events on electrical reliability is gauged by comparing affected states' SAIDI and SAIFI values against the U.S. average, which was 5.6 hours of outages and 1.4 outages per customer in 2022. The year witnessed 18 weather-related disasters in the U.S., each resulting in over $1 billion in damages, and COVID-19 grid assessments indicated the electricity system was largely safe from pandemic impacts. Noteworthy major events include:

• Hurricane Ian in September 2022, leaving over 2.6 million Floridian customers without electricity, with restoration in some areas taking weeks rather than days.
• Hurricane Nicole in November 2022, causing over 300,000 Florida customers to lose power.
• Winter Storm Elliott in December 2022, affecting over 1.5 million customers in multiple states including Texas where utilities struggled after Hurricane Harvey to restore service, and Florida, and bringing up to four feet of snow in parts of New York.

In 2022, states like Florida, West Virginia, Maine, Vermont, and New Hampshire experienced the most prolonged power interruptions, with New Hampshire averaging 10.3 hours and Florida 19.1 hours, and FPL's Irma storm response illustrates how restoration can take days or weeks in severe cases. Conversely, the District of Columbia, Delaware, Rhode Island, Nebraska, and Iowa had the shortest total interruptions, with the District of Columbia averaging just 34 minutes and Iowa 85 minutes.

The frequency of outages, unlike their duration, is more often linked to non-major events. Across the nation, Alaska recorded the highest number of power disruptions per customer (averaging 3.5), followed by several heavily forested states like Tennessee and Maine. Power outages due to falling tree branches are common, particularly during winter storms that burden tree limbs and power lines, as seen in a North Seattle outage affecting 13,000 customers. The District of Columbia stood out with the shortest and fewest outages per customer.

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KHNP Shortlisted for Belene Nuclear Power Plant, named by the Bulgarian Energy Ministry alongside Rosatom and CNNC; highlights APR1400 reactor expertise, EPC credentials, and expansion into the European nuclear energy market.

Key Points

KHNP is a strategic investor candidate for Bulgaria's Belene NPP, leveraging APR1400 and European market entry.

✅ Selected with Rosatom and CNNC by Bulgarian Energy Ministry

✅ Builds on APR1400 reactor design and EPC track record

✅ Positions KHNP for EU nuclear projects and O&M services

Korea Hydro & Nuclear Power (KHNP) has been selected as one of the three strategic investor candidates for a Bulgarian nuclear power plant project amid global nuclear project milestones worldwide.

The Bulgarian Energy Ministry selected KHNP of Korea, RosAtom of Russia and CNNC of China as strategic investor candidates for the construction of the Belene Nuclear Power Plant, KHNP said on Dec. 20. The Belene Nuclear Power Plant is the second nuclear power plant that Bulgaria plans to build following the 2,000-megawatt Kozloduy Nuclear Power Plant built in 1991 during the Soviet Union era. The project budget is estimated at 10 billion euros.

By being included in the shortlist for the Bulgarian project, KHNP has boosted the possibility of making a foray into the European nuclear power plant market, as India takes steps to get nuclear back on track worldwide. KHNP began to export nuclear power plants in 2009 by winning the UAE Barakah Nuclear Power Plant Project, with Barakah Unit 1 reaching 100% power as it moves toward commercial operations. The UAE plant will be based on the APR1400, a next-generation Korean nuclear reactor that is used in Shin Kori Units 3 and 4 in Korea.

The ARP1400 is a Korean nuclear reactor developed by KHNP with investment of about 230 billion won for 10 years from 1992. The nuclear reactor became the first non-U.S. type reactor to receive a design certificate (DC) from the U.S. Nuclear Regulatory Commission (NRC), as China's nuclear energy program continues on a steady development track globally. By receiving the DC, its safety was internationally recognized. In June, the company also won the maintenance project for the Barakah Nuclear Power Plant, completing the entire cycle from the construction of the nuclear power plant to its design, operation and maintenance. However, U.S. and U.K. companies took part of the maintenance project for the nuclear power plant.

In July, KHNP officials visited Turkey and contacted local energy officials to prepare for nuclear power plant projects to be launched in that country, as Bangladesh develops nuclear power with IAEA assistance in the region. Earlier in May, the company also submitted a proposal to participate in the construction of a new nuclear power plant in Kazakhstan, while Kenya moves forward with plans for a $5 billion plant.

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