Mississippi attorney general files lawsuit against Entergy

By Associated Press


Protective Relay Training - Basic

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$699
Coupon Price:
$599
Reserve Your Seat Today
Mississippi's attorney general filed a lawsuit against Entergy Corp. and its subsidiaries, claiming the companies illegally manipulated the purchase and sale of electricity to maximize profits.

The fraud and antitrust lawsuit filed in Hinds County Chancery Court claims Entergy buys electricity from sister companies at a higher rate than it could on the open market, then passes the inflated costs along to consumers.

"Entergy's duty to Mississippi rate payers is that they have to provide us with the cheapest energy that is reliably available," Attorney General Jim Hood said.

Entergy spokeswoman Mara Hartmann declined comment on the lawsuit, saying the company was still reviewing it. However, the company has previously said its practices were sound and Hood's allegations of wrongdoing were without merit.

Hood's suit is similar to two lawsuits against the company in Louisiana that claimed customers were overcharged.

Entergy Louisiana was ordered in 2000 to refund $72 million to customers in one lawsuit and ordered this year to refund $34 million in the other. Neither of those lawsuits were filed by the state of Louisiana.

Entergy provides electricity to 2.7 million customers in Arkansas, Louisiana, Mississippi and Texas. The company has annual revenues of more than $11 billion.

Hood, for months, has sought thousands of Entergy internal documents while the utility has denied Hood's allegations. Entergy also sought to block him from obtaining company records related to fuel purchases.

Entergy has maintained its practices are fair and that the Mississippi Public Service Commission is the proper overseeing body, not Hood's office.

But the MPSC issued a resolution, saying Entergy should hand over the internal documents sought by Hood for his investigation into the company's fuel purchasing practices.

Haley Fisackerly, president and chief executive officer of Entergy Mississippi, said that he was shocked by the PSC resolution.

"Resolutions are nonbinding. Commissions direct us to do things, raise our rates, build power plans, substations, whatever may be through orders," Fisackerly said. "Those become binding documents. Second of all, they did it with no due process granted us."

Fisackerly said Entergy has requested a formal hearing to discuss the issue before the three-member Public Service Commission. The PSC is reviewing the request.

The commission issued a subpoena to Entergy in October, ordering the company to turn over documents in the two Louisiana court cases. The company complied and Hood said those documents show Entergy's parent company sold Entergy Mississippi electricity at $26 per 1,000 kilowatt hours that it bought on the open market for $12 per kilowatt hours.

Hood claims Entergy committed fraud by telling the Public Service Commission that it was providing Mississippi customers with the cheapest energy it could find.

Entergy has called all of Hood's claims "irresponsible, without merit, a waste of taxpayer money and harmful to the state's business reputation."

Related News

British Columbia Accelerates Clean Energy Shift

BC Hydro Grid Modernization accelerates clean energy and electrification, upgrading transmission lines, substations, and hydro dams to deliver renewable power for EVs and heat pumps, strengthen grid reliability, and enable industrial decarbonization in British Columbia.

 

Key Points

A $36B, 10-year plan to expand and upgrade B.C.'s clean grid for electrification, reliability, and industrial growth.

✅ $36B for lines, substations, and hydro dam upgrades

✅ Enables EV charging, heat pumps, and smart demand response

✅ Prioritizes industrial electrification and Indigenous partnerships

 

In a significant move towards a clean energy transition, British Columbia has announced a substantial $36-billion investment to enlarge and upgrade its electricity grid over the next ten years. The announcement last Tuesday from BC Hydro indicates a substantial 50 percent increase from its prior capital plan. A major portion of this investment is directed towards new consumer connections and improving current infrastructure, including substations, transmission lines, and hydro dams for more efficient power generation.

The catalyst behind this major investment is the escalating demand for clean energy across residential, commercial, and industrial sectors in British Columbia. Projections show a 15 percent rise in electricity demand by 2030. According to the Canadian Climate Institute's models, achieving Canada’s climate goals will require extensive electrification across various sectors, raising questions about a net-zero grid by 2050 nationwide.

BC Hydro is planning substantial upgrades to the electrical grid to meet the needs of a growing population, decreasing industry carbon emissions, and the shift towards clean technology. This is vital, especially as the province works towards improving housing affordability and as households face escalating costs from the impacts of climate change and increasing exposure to harsh weather events. Affordable, reliable power and access to clean technologies such as electric vehicles and heat pumps are becoming increasingly important for households.

British Columbia is witnessing a significant shift from fossil fuels to clean electricity in powering homes, vehicles, and workplaces. Electric vehicle usage in B.C. has increased twentyfold in the past six years. Last year, one in every five new light-duty passenger vehicles sold in B.C. was electric – the highest rate in Canada. Additionally, over 200,000 B.C. homes are now equipped with heat pumps, indicating a growing preference for the province’s 98 percent renewable electricity.

The investment also targets reducing industrial emissions and attracting industrial investment. For instance, the demand for transmission along the North Coastline, from Prince George to Terrace, is expected to double this decade, especially from sectors like mining. Mining companies are increasingly looking for locations with access to clean power to reduce their carbon footprint.

This grid enhancement plan in B.C. is reflective of similar initiatives in provinces like Quebec and the legacy of Manitoba hydro history in building provincial systems. Hydro-Québec announced a substantial $155 to $185 billion investment in its 2035 Action Plan last year, aimed at supporting decarbonization and economic growth. By 2050, Hydro-Québec predicts a doubling of electricity demand in the province.

Both utilities’ strategies focus on constructing new facilities and enhancing existing assets, like upgrading dams and transmission lines. Hydro-Québec, for instance, includes energy efficiency goals in its plan to double customer savings and potentially save over 3,500 megawatts of power.

However, with this level of investment, provinces need to engage in dialogue about priorities and the optimal use of clean electricity resources, with concepts like macrogrids offering potential benefits. Quebec, for instance, has shifted from a first-come, first-served basis to a strategic review process for significant new industrial power requests.

B.C. is also moving towards strategic prioritization in its energy strategy, evident in its recent moratorium on new connections for virtual currency mining due to their high energy consumption.

Indigenous partnership and leadership are also key in this massive grid expansion. B.C.’s forthcoming Call for Power and Quebec’s financial partnerships with Indigenous communities indicate a commitment to collaborative approaches. British Columbia has also allocated $140 million to support Indigenous-led power projects.

Regarding the rest of Canada, electricity planning varies in provinces with deregulated markets like Ontario and Alberta. However, these provinces are adapting too, and the federal government has funded an Atlantic grid study to improve regional planning efforts. Ontario, for example, has provided clear guidance to its system operator, mirroring the ambition in B.C. and Quebec.

Utilities are rapidly working to not only expand and modernize energy grids but also to make them more resilient, affordable, and smarter, as demonstrated by recent California grid upgrades funding announcements across the sector. Hydro-Québec focuses on grid reliability and affordability, while B.C. experiments with smart-grid technologies.

Both Ontario and B.C. have programs encouraging consumers to reduce consumption in real-time, demonstrating the potential of demand-side management. A recent instance in Alberta showed how customer participation could prevent rolling blackouts by reducing demand by 150 megawatts.

This is a crucial time for all Canadian provinces to develop larger, smarter energy grids, including a coordinated western Canadian electricity grid approach for a sustainable future. Utilities are making significant strides towards this goal.
 

 

Related News

View more

Europe's largest shore power plant opens

AIDAsol shore power Rostock-Warnemfcnde delivers cold ironing for cruise ships, up to 20 MVA at berths P7 and P8, cutting port emissions during berthing and advancing AIDA's green cruising strategy across European ports.

 

Key Points

Rostock-Warnemfcnde shore power supplies two cruise ships up to 20 MVA, enabling cold ironing and cutting emissions.

✅ Up to 20 MVA; powers two cruise ships at berths P7 and P8

✅ Enables cold ironing for AIDA fleet to reduce berth emissions

✅ Part of AIDA green cruising with fuel cells and batteries

 

In a ceremony held in Rostock-Warnemünde yesterday during Germany’s 12th National Maritime Conference, the 2,174-passenger cruise ship AIDAsol inaugurated Europe’s largest shore power plants for ships.

The power plant has been established under a joint agreement between AIDA Cruises, a unit of Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the state government of Mecklenburg-Western Pomerania, the city of Rostock and the Port of Rostock.

“With our green cruising strategy, we have been investing in a sustainable cruise market for many years,” said AIDA Cruises President Felix Eichhorn. “The shore power plant in Rostock-Warnemünde is another important step — after the facility in Hamburg — on our way to an emission-neutral cruise that we want to achieve with our fleet. I would like to thank the state government of Mecklenburg-Western Pomerania and all partners involved for the good and trusting cooperation. Together, we are sending out an important signal, not just in Germany, but throughout Europe.”

CAN POWER TWO CRUISE SHIPS AT A TIME
The shore power plant, which was completed in summer 2020, is currently the largest in Europe and aligns with port electrification efforts such as the all-electric berth at London Gateway in the UK. With an output of up to 20 megavolt amperes (MVA), two cruise ships can be supplied with electricity at the same time at berths P7 and P8 in Warnemünde.

In regular passenger operation AIDAsol needs up to 4.5 megawatts per hour (MWh) of electricity.

The use of shore power to supply ships with energy is a decisive step in AIDA Cruises’ plans to reduce local emissions to zero during berthing, complementing recent progress with electric ships on the B.C. coast, as a cruise ship typically stays in port around 40% of its operating time.

As early as 2004, when the order for the construction of AIDAdiva was placed, and for all other ships put into service in subsequent years, the company has considered the use of shore power as an option for environmentally friendly ship operation.

Since 2017, AIDA Cruises has been using Europe’s first shore power plant in Hamburg-Altona, where AIDAsol is in regular operation, while operators like BC Ferries add hybrid ferries to expand low-emission service in Canada. Currently, 10 ships in the AIDA fleet can either use shore power where available or are technically prepared for it.

The aim is to convert all ships built from 2000 onwards, supporting future solutions like offshore charging with wind power.

With AIDA Cruises starting a cruise season from Kiel, Germany, on May 22, AIDAsol will also be the first cruise ship to complete the final tests on a newly built shore power plant there, as innovations such as Berlin’s electric flying ferry highlight the broader shift toward electrified waterways. Construction of that plant is the result of a joint initiative by the state government of Schleswig-Holstein, the city and the port of Kiel and AIDA Cruises. AIDAsol is scheduled to arrive in Kiel on the afternoon of May 13.

As part of its green cruising strategy, AIDA Cruises has been investing in a sustainable cruise operation for many years, paralleling urban shifts toward zero-emission bus fleets in Berlin. Other steps on the path to the zero emission ship of the future are already in preparation. This year, AIDAnova will receive the first fuel cell to be used on an ocean-going cruise ship. In 2022, the largest battery storage system to date in cruise shipping will go into operation on board an AIDA ship, similar to advances in battery-electric ferries in the U.S. In addition, the company is already addressing the question of how renewable fuels can be used on board cruise ships in the future.

 

Related News

View more

No public details for Newfoundland electricity rate mitigation talks

Muskrat Falls rate mitigation progresses as Newfoundland and Labrador and Ottawa align under the updated Atlantic Accord, targeting affordable electricity rates through federal involvement, PUB input, and potential financing solutions with Nalcor, Emera, and lenders.

 

Key Points

An initiative by NL and Ottawa to keep electricity rates affordable via federal support, PUB input, and financing options.

✅ Federal-provincial talks under the updated Atlantic Accord

✅ PUB process integrated for independent oversight

✅ Possible roles for Nalcor, Emera, and project lenders

 

At the announcement of an updated Atlantic Accord between the provincial and federal governments, Newfoundland and Larbrador Premier Dwight Ball gave notice federal Finance Minister Bill Morneau will be in St. John’s to talk about the cost of Muskrat Falls and how Labrador power flows through Quebec to market.

“We look forward to welcoming Minister Morneau and his team to advance discussions on federal financing and rate mitigation,” read a statement from the premier’s office Tuesday, in response to questions about that coming meeting and federal-provincial work on rate mitigation.

At the announcement, Ball specifically said the plan is to “finalize federal involvement for making sure electricity rates remain affordable,” such as shielding ratepayers from overruns through federal-provincial measures, with Ball and MP Seamus O’Regan trumpeting the provincial-federal relationship.

The provincial and federal governments are not the only two parties involved in provincial power rates and handling of Muskrat Falls, even as electricity users have started paying for the project across Newfoundland and Labrador, but The Telegram is told details of meetings on rate mitigation are not being released, down to the list of attendees.

The premier’s office was asked specifically about the involvement of Nalcor Energy, including a recent financial update during the pandemic, Emera, Goldman, TD or any others involved in project financing. The response was that the plan is not to indicate what is being explored and who might be involved, until there is something more concrete to speak about.

The government’s plan is to have something to feed into the ongoing work of the Public Utilities Board, to develop a more complete response for rate mitigation, including lump-sum credits on electricity bills and other tools, for the PUB’s final report, due in 2020, even as regulators in Nova Scotia weigh a 14% rate hike in a separate proceeding.

 

Related News

View more

Recommendations from BC Hydro review to keep electricity affordable

BC Hydro Review Phase 2 Recommendations advance affordable electricity rates, clean energy adoption, electrification, and demand response, supporting heat pumps, EV charging, and low-income programs to cut emissions and meet CleanBC climate targets.

 

Key Points

Policies to keep rates affordable and accelerate clean electrification via heat pump, EV, and demand response incentives.

✅ Optional rates, heat pump and EV charging incentives

✅ Demand response via controllable devices lowers peak loads

✅ Expanded support for lower-income customers and affordability

 

The Province and BC Hydro have released recommendations from Phase 2 of the BC Hydro Review to keep rates affordable, including through a provincial rate freeze initiative that supported households, and encourage greater use of clean, renewable electricity to reduce emissions and achieve climate targets.

“Keeping life affordable for people is a key priority of our government,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “Affordable electricity rates not only help British Columbians, they help ensure the price of electricity remains competitive with other forms of energy, supporting the transition away from fossil fuels to clean electricity in our homes and buildings, vehicles and businesses.”

While affordable rates have always been important to BC Hydro customers, amid proposals such as a modest rate increase under review, expectations are also changing as customers look to have more choice and control over their electricity use and opportunities to save money.

Guided by input from a panel of external energy industry experts, government and BC Hydro have developed recommendations under Phase 2 of the BC Hydro Review to reduce electricity costs for individuals and businesses, even as a 3.75% increase has been discussed, as envisioned by the CleanBC climate strategy. This is also in alignment with TogetherBC, the Province’s poverty reduction strategy, and its guiding principle of affordability.

“As we promote increased use of electricity in B.C. to achieve our climate targets, we need to continue to focus on keeping electricity rates affordable, especially for lower-income families,” said Nicholas Simons, Minister of Social Development and Poverty Reduction. “Through the BC Hydro Review, and continuing engagement with stakeholders and organizations to follow, we are committed to finding ways to keep rates affordable, so everyone has access to the benefits of B.C.’s clean, reliable electricity.”

Recommendations include having BC Hydro consider providing more support for lower-income BC Hydro customers, informed by a recent surplus report that highlighted funding opportunities. These include incentives and exploring optional rates for customers to adopt electric heat pumps, and facilitating customer adoption of controllable energy devices that provide BC Hydro the ability to offer incentives in return for helping to manage a customer’s electricity use. 

Electrification of B.C.’s economy helps customers reduce their carbon footprint and supports the Province’s CleanBC climate strategy, and is an important part of keeping electricity affordable even amid higher BC Hydro rates in recent periods. As more customers make the switch from fossil fuels to using clean electricity in their homes, vehicles and businesses, BC Hydro’s electricity sales will increase, providing more revenue that helps keep rates affordable for everyone.

“We’re making the transition to a cleaner future more affordable for people and businesses across British Columbia through our CleanBC plan,” said George Heyman, Minister of Environment and Climate Change Strategy. “By working with BC Hydro and other partners, we’re making sure everyone has access to clean, affordable electricity to power technologies like high-efficiency heat pumps and electric vehicles that will reduce harmful pollution and improve our homes, buildings and communities.”

Chris O’Riley, president and CEO, BC Hydro, said: “Given the impact of COVID-19 on British Columbians, affordability is more important than ever. That’s why we are committed to continuing to keep rates affordable and offering customers more options that allow them to save on their bills while using clean electricity.”

In July 2021, the Province announced a first set of recommendations from Phase 2 of the BC Hydro Review amid a 3% rate increase approved by regulators. The next announcement from Phase 2 will include recommendations to increase the number of electric vehicles on the road.

In addition, as part of the Draft Action Plan to advance the Declaration on the Rights of Indigenous Peoples Act, the Province is proposing to engage with Indigenous peoples to identify and support new clean energy opportunities related to CleanBC, the BC Hydro Review and the British Columbia Utilities Commission Indigenous Utilities Regulation Inquiry, and to consider lessons from Ontario's hydro policy experiences as appropriate.

B.C. is the cleanest electricity-generation jurisdiction in western North America, with an average of 98% of its electricity generation coming from clean or renewable resources.

 

Related News

View more

Canadian Scientists say power utilities need to adapt to climate change

Canada Power Grid Climate Resilience integrates extreme weather planning, microgrids, battery storage, renewable energy, vegetation management, and undergrounding to reduce outages, harden infrastructure, modernize utilities, and safeguard reliability during storms, ice events, and wildfires.

 

Key Points

Canada's grid resilience hardens utilities against extreme weather using microgrids, storage, renewables, and upgrades.

✅ Grid hardening: microgrids, storage, renewable integration

✅ Vegetation management reduces storm-related line contact

✅ Selective undergrounding where risk and cost justify

 

The increasing intensity of storms that lead to massive power outages highlights the need for Canada’s electrical utilities to be more robust and innovative, climate change scientists say.

“We need to plan to be more resilient in the face of the increasing chances of these events occurring,” University of New Brunswick climate change scientist Louise Comeau said in a recent interview.

The East Coast was walloped this week by the third storm in as many days, with high winds toppling trees and even part of a Halifax church steeple, underscoring the value of storm-season electrical safety tips for residents.

Significant weather events have consistently increased over the last five years, according to the Canadian Electricity Association (CEA), which has tracked such events since 2003.

#google#

Nearly a quarter of total outage hours nationally in 2016 – 22 per cent – were caused by two ice storms, a lightning storm, and the Fort McMurray fires, which the CEA said may or may not be classified as a climate event.

“It (climate change) is putting quite a lot of pressure on electricity companies coast to coast to coast to improve their processes and look for ways to strengthen their systems in the face of this evolving threat,” said Devin McCarthy, vice president of public affairs and U.S. policy for the CEA, which represents 40 utilities serving 14 million customers.

The 2016 figures – the most recent available – indicate the average Canadian customer experienced 3.1 outages and 5.66 hours of outage time.

McCarthy said electricity companies can’t just build their systems to withstand the worst storm they’d dealt with over the previous 30 years. They must prepare for worse, and address risks highlighted by Site C dam stability concerns as part of long-term planning.

“There needs to be a more forward looking approach, climate science led, that looks at what do we expect our system to be up against in the next 20, 30 or 50 years,” he said.

Toronto Hydro is either looking at or installing equipment with extreme weather in mind, Elias Lyberogiannis, the utility’s general manager of engineering, said in an email.

That includes stainless steel transformers that are more resistant to corrosion, and breakaway links for overhead service connections, which allow service wires to safely disconnect from poles and prevents damage to service masts.

Comeau said smaller grids, tied to electrical systems operated by larger utilities, often utilize renewable energy sources such as solar and wind as well as battery storage technology to power collections of buildings, homes, schools and hospitals.

“Capacity to do that means we are less vulnerable when the central systems break down,” Comeau said.

Nova Scotia Power recently announced an “intelligent feeder” pilot project, which involves the installation of Tesla Powerwall storage batteries in 10 homes in Elmsdale, N.S., and a large grid-sized battery at the local substation. The batteries are connected to an electrical line powered in part by nearby wind turbines.

The idea is to test the capability of providing customers with back-up power, while collecting data that will be useful for planning future energy needs.

Tony O’Hara, NB Power’s vice-president of engineering, said the utility, which recently sounded an alarm on copper theft, was in the late planning stages of a micro-grid for the western part of the province, and is also studying the use of large battery storage banks.

“Those things are coming, that will be an evolution over time for sure,” said O’Hara.

Some solutions may be simpler. Smaller utilities, like Nova Scotia Power, are focusing on strengthening overhead systems, mainly through vegetation management, while in Ontario, Hydro One and Alectra are making major investments to strengthen infrastructure in the Hamilton area.

“The number one cause of outages during storms, particularly those with high winds and heavy snow, is trees making contact with power lines,” said N.S. Power’s Tiffany Chase.

The company has an annual budget of $20 million for tree trimming and removal.

“But the reality is with overhead infrastructure, trees are going to cause damage no matter how robust the infrastructure is,” said Matt Drover, the utility’s director for regional operations.

“We are looking at things like battery storage and a variety of other reliability programs to help with that.”

NB Power also has an increased emphasis on tree trimming and removal, and now spends $14 million a year on it, up from $6 million prior to 2014.

O’Hara said the vegetation program has helped drive the average duration of power outages down since 2014 from about three hours to two hours and 45 minutes.

Some power cables are buried in both Nova Scotia and New Brunswick, mostly in urban areas. But both utilities maintain it’s too expensive to bury entire systems – estimated at $1 million per kilometre by Nova Scotia Power.

The issue of burying more lines was top of mind in Toronto following a 2013 ice storm, but that’s city’s utility also rejected the idea of a large-scale underground system as too expensive – estimating the cost at around $15 billion, while Ontario customers have seen Hydro One delivery rates rise in recent adjustments.

“Having said that, it is prudent to do so for some installations depending on site specific conditions and the risks that exist,” Lyberogiannis said.

Comeau said lowering risks will both save money and disruption to people’s lives.

“We can’t just do what we used to do,” said Xuebin Zhang, a senior climate change scientist at Environment and Climate Change Canada.

“We have to build in management risk … this has to be a new norm.”

 

Related News

View more

There's a Russia-Sized Mystery in China's Electricity Sector

China Power Demand-Emissions Gap highlights surging grid demand outpacing renewables, with coal filling shortages despite record solar, wind, EV charging, and hydrogen growth, threatening decarbonization targets and net-zero pathways through 2030.

 

Key Points

China's power demand outpaces renewables, keeping coal dominant and raising emissions risk through the 2020s.

✅ Record solar and wind still lag fast grid demand growth

✅ Coal fills gaps as EV charging and hydrogen loads rise

✅ Forecasts diverge: CEC bullish vs IEA, BNEF conservative

 

Here’s a new obstacle that could prevent the world finally turning the corner on climate change: Imagine that over the coming decade a whole new economy the size of Russia were to pop up out of nowhere. With the world’s fourth-largest electricity sector and largest burden of power plant emissions after China, the U.S. and India, this new economy on its own would be enough to throw out efforts to halt global warming — especially if it keeps on growing through the 2030s.

That’s the risk inherent in China’s seemingly insatiable appetite for grid power, as surging electricity demand is putting systems under strain worldwide.

From the cracking pace of renewable build-out last year, you might think the country had broken the back of its carbon addiction. A record 55 gigawatts of solar power and 48 gigawatts of wind were connected — comparable to installing the generation capacity of Mexico in less than 12 months. This year will see an even faster pace, with 93 GW of solar and 50 GW of wind added, according to a report last week from the China Electricity Council, an industry association.

That progress could in theory see the country’s power sector emissions peak within months, rather than the late-2020s date the government has hinted at. Combined with a smaller quantity of hydro and nuclear, low-emissions sources will probably add about 310 terawatt-hours to zero-carbon generation this year. That 3.8% increase would be sufficient to power the U.K.

Countries that have reached China’s levels of per-capita electricity consumption (already on a par with most of Europe) typically see growth rates at less than half that level, even as global power demand has surged past pre-pandemic levels in recent years. Grid supply could grow at a faster pace than Brazil, Iran, South Korea or Thailand managed over the past decade without adding a ton of additional carbon to the atmosphere.

There’s a problem with that picture, however. If electricity demand grows at an even more headlong pace, there simply won’t be enough renewables to supply the grid. Fossil fuels, overwhelmingly coal, will fill the gap, a reminder of the iron law of climate dynamics in energy transitions.

Such an outcome looks distinctly possible. Electricity consumption in 2021 grew at an extraordinary rate of 10%, and will increase again by between 5% and 6% this year, according to the CEC. That suggests the country is on pace to match the CEC’s forecasts of bullish grid demand over the coming decade, with generation hitting 11,300 terawatt-hours in 2030. External analysts, such as the International Energy Agency and BloombergNEF, envisage a more modest growth to around 10,000 TWh. 

The difference between those two outlooks is vast — equivalent to all the electricity produced by Russia or Japan. If the CEC is right and the IEA and BloombergNEF are wrong, even the furious rate of renewable installations we’re seeing now won’t be enough to rein in China’s power-sector emissions.

Who’s correct? On one hand, it’s fair to say that power planners usually err on the side of overestimation. If your forecast for electricity demand is too high, state-owned generators will be less profitable than they otherwise would have been — but if it’s too low, you’ll see power cuts and shutdowns like China witnessed last autumn, with resulting power woes affecting supply chains beyond its borders.

On the other hand, the decarbonization of China’s economy itself should drive electricity demand well above what we’ve seen in the past, with some projections such as electricity meeting 60% of energy use by 2060 pointing to a profound shift. Some 3.3 million electric vehicles were sold in 2021 and BloombergNEF estimates a further 5.7 million will be bought in 2022. Every million EVs will likely add in the region of 2 TWh of load to the grid. Those sums quickly mounts up in a country where electric drivetrains are taking over a market that shifts more than 25 million new cars a year.

Decarbonizing industry, a key element on China’s road to zero emissions, could also change the picture. The IEA sees the country building 25 GW of electolysers to produce hydrogen by 2030, enough to consume some 200 TWh on their own if run close to full-time.

That’s still not enough to justify the scale of demand being forecast, though. China is already one of the least efficient countries in the world when it comes to translating energy into economic growth, and despite official pressure on the most wasteful, so called “dual-high” industries such as steel, oil refining, glass and cement, its targets for more thrifty energy usage remain pedestrian.

The countries that have decarbonized fastest are those, such as Germany, the U.K and the U.S., where Americans are using less electricity, that have seen power demand plateau or even decline, giving new renewable power a chance to swap out fossil-fired generators without chasing an ever-increasing burden on the grid. China’s inability to do this as its population peaks and energy consumption hits developed-country levels isn’t a sign of strength.

Instead, it’s a sign of a country that’s chronically unable to make the transition away from polluting heavy industry and toward the common prosperity and ecological civilization that its president keeps promising. Until China reins in that credit-fueled development model, the risks to its economy and the global climate will only increase.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.