Will power grid stall plug-in cars?

ABL has secured a contract for the UK Subsea Power Link, highlighting ABL Group’s marine warranty role in Eastern Green Link 2, a 2 GW offshore electricity superhighway connecting Scotland and England to enhance grid reliability and renewable energy transmission.

Key Points: ABL Group’s contract for the UK Subsea Power Link

ABL Group has been appointed to provide marine warranty survey services for the 2 GW Eastern Green Link 2 subsea interconnector between Scotland and England.

✅ Manages vessel suitability checks, installation oversight, and DP assurance

✅ Strengthens UK grid reliability and advances the clean energy transition

✅ Sizeable contract valued between USD 1 million and 3 million

Energy and marine consultancy ABL, a subsidiary of ABL Group, has been awarded a contract by Eastern Green Link 2 (EGL2) to provide marine warranty survey (MWS) services for the installation of a new 2 GW subsea power connection between Scotland and England.

EGL2 is one of the United Kingdom’s most significant energy-infrastructure projects, involving the creation of a 505-kilometre “electricity superhighway” that will enable simultaneous power transfer between Peterhead in Aberdeenshire and Drax in North Yorkshire, mirroring a renewable power link announced for the same corridor recently. The project is designed to strengthen grid resilience, integrate renewable energy from Scotland’s offshore resources, and advance the UK’s broader energy transition goals.

Under the terms of the contract, ABL will be responsible for the technical review and approval of the project and procedural documentation, as well as conducting suitability surveys of the proposed fleet for marine transportation and installation operations. The company will also provide dynamic positioning (DP) assurance where required and will review and approve all warranted operations through on-site attendances, reflecting practices used on projects like the Great Northern Transmission Line in North America.

Cable-laying operations for the link are scheduled to take place between January and September 2028, amid wider efforts to fast-track grid connections across the UK. According to ABL, the engagement represents a “sizeable” contract, valued between USD 1 million and 3 million.

“This appointment reflects ABL's reputation as a trusted MWS partner for major power transmission infrastructure development and reinforces our position at the forefront of supporting the UK's energy transition,” said Hege Norheim, CEO of ABL Group. “We look forward to contributing to this strategic initiative.”

The subsea interconnector, known as Eastern Green Link 2, will transmit up to 2 gigawatts of electricity—enough to power approximately 2 million homes. It forms part of the Great Grid Upgrade, National Grid’s nationwide program to modernize and expand the transmission network in preparation for a low-carbon future, alongside a recent 2 GW substation milestone.

By linking renewable-rich northern Scotland with high-demand regions in England, EGL2 is expected to reduce congestion on the existing grid by leveraging HVDC technology to improve transfer efficiency, enhance security of supply, and facilitate the more efficient flow of surplus renewable energy south. The connection will also support the UK government’s target of decarbonizing the electricity system by 2035.

ABL’s appointment follows a period of intensive marine and geotechnical surveys along the proposed cable route to assess seabed conditions and environmental sensitivities. The company’s marine warranty oversight will ensure that transportation and installation operations meet strict safety, technical, and environmental standards demanded by insurers and project partners, as seen in a recent cross-border transmission approval in North America.

For ABL Group, which provides engineering and risk services to the offshore energy and marine industries worldwide, the contract marks another milestone in its expanding portfolio of subsea power and transmission projects across Europe. With operations set to begin in 2028, the Eastern Green Link 2 initiative represents both a major engineering challenge and a key enabler of the UK’s offshore energy ambitions, echoing a recent offshore wind power milestone in the U.S.

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Solar ITC Impact on U.S. Wind frames how a 30% solar investment tax credit could undercut wind PTC economics, shift corporate procurement, and, without transmission and storage, slow onshore builds despite offshore wind momentum.

Key Points

It is how a solar ITC extension may curb U.S. wind growth absent PTC parity, transmission, storage, and offshore backing.

✅ ITC at 30% risks shifting corporate procurement to solar.

✅ Post-PTC wind faces grid, transmission, and curtailment headwinds.

✅ Offshore wind, storage pairing, TOU demand could offset.

The booming U.S. wind industry, amid a wind power surge, faces an uncertain future in the 2020s. Few factors are more important than the fate of the solar ITC.

An extension of the solar investment tax credit (ITC) at its 30 percent value would be “devastating” to the future U.S. wind market, according to a new Wood Mackenzie report.

The U.S. is on track to add a record 14.6 gigawatts of new wind capacity in 2020, despite Covid-19 impacts, and nearly 39 gigawatts during a three-year installation boom from 2019 to 2021, according to Wood Mackenzie’s 2019 North America Wind Power Outlook.

But the market’s trajectory begins to look highly uncertain from the early 2020s onward, and solar is one of the main reasons why.

Since the dawn of the modern American renewables market, the wind and solar sectors have largely been allies on the national stage, benefiting from many of the same favorable government plans and sharing big-picture goals. Until recently, wind and solar companies rarely found themselves in direct competition.

But the picture is changing as solar catches up to wind on cost and the grid penetration of renewables surges. What was once a vague alliance between the two fastest growing renewables technologies could morph into a serious rivalry.

While many project developers are now active in both sectors, including NextEra Energy Resources, Invenergy and EDF, the country’s thriving base of wind manufacturers could face tougher days ahead.

The ITC's inherent advantage

At this point, wind remains solar’s bigger sibling in many ways.

The U.S. has nearly 100 gigawatts of installed wind capacity today, compared to around 67 gigawatts of solar. With their substantially higher capacity factors, wind farms generated four times more power for the U.S. grid last year than utility-scale solar plants, for a combined wind-solar share of 8.2 percent, according to government figures, even as renewables are projected to reach one-fourth of U.S. electricity generation. (Distributed PV systems further add to solar’s contribution.)

But it's long been clear that wind would lose its edge at some point. The annual solar market now regularly tops wind. The cost of solar energy is falling more rapidly, and appears to have more runway for further reduction. Solar’s inherent generation pattern is more valuable in many markets, delivering power during peak-demand hours, while the wind often blows strongest at night.

And then there’s the matter of the solar ITC.

In 2015, both wind and solar secured historic multi-year extensions to their main federal subsidies. The extensions gave both industries the longest period of policy clarity they’ve ever enjoyed, setting in motion a tidal wave of installations set to crest over the next few years.

Even back in 2015, however, it was clear that solar got the better deal in Washington, D.C.

While the wind production tax credit (PTC) began phasing down for new projects almost immediately, solar developers were given until the end of 2019 to qualify projects for the full ITC.

And critically, while the wind PTC drops to nothing after its sunset, commercially owned solar projects will remain eligible for a 10 percent ITC forever, based on the existing legislation. Over time, that amounts to a huge advantage for solar.

In another twist, the solar industry is now openly fighting for an extension of the 30 percent ITC, while the wind industry seemingly remains cooler on the prospect of pushing for a similar prolongation — having said the current PTC extension would be the last.

Plenty of tailwinds, too

Wood Mackenzie's report catalogues multiple factors that could work for or against the wind market in the "uncharted" post-PTC years, many of them, including the Covid-19 crisis, beyond the industry’s direct control.

If things go well, annual installations could bounce back to near-record levels by 2027 after a mid-decade contraction, the report says. But if they go badly, installations could remain depressed at 4 gigawatts or below from 2022 through most of the coming decade, and that includes an anticipated uplift from the offshore market.

An extension of the solar ITC without additional wind support would “severely compound” the wind market’s struggle to rebound in the 2020s, the report says. The already-evident shift in corporate renewables procurement from wind to solar could intensify dramatically.

The other big challenge for wind in the 2020s is the lack of progress on transmission infrastructure that would connect potentially massive low-cost wind farms in interior states with bigger population centers. A hoped-for national infrastructure package that might address the issue has not materialized.

Even so, many in the wind business remain cautiously optimistic about the post-PTC years, with a wind jobs forecast bolstering sentiment, and developers continue to build out longer-term project pipelines.

Turbine technology continues to improve. And an extension of the solar ITC is far from assured.

Other factors that could work in wind’s favor in the years ahead include:

The nascent offshore sector, which despite lingering regulatory uncertainty at the federal level looks set to blossom into a multi-gigawatt annual market by the mid-2020s, in line with an offshore wind forecast that highlights substantial growth potential. Lobbying efforts for an offshore wind ITC extension are gearing up, offering a potential area for cooperation between wind and solar.

The potential linkage of policy support for energy storage to wind projects, building on the current linkage with solar.

Growing electric vehicle sales and a shift toward time-of-use retail electricity billing, which could boost power demand during off-peak hours when wind generation is strong.

The land-use advantages wind farms have over solar in some agricultural regions.

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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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US Electricity Demand 2018-2050 projects slower growth as energy consumption, power generation, air conditioning, and electric heating shift with efficiency standards, commercial floor space, industrial load, and household growth across the forecast horizon.

Key Points

A forecast of US power use across homes, commercial space, industrial load, and efficiency trends from 2018 to 2050.

✅ 2018 generation hit record; residential sales up 6%.

✅ Efficiency curbs demand; growth lags population and floor space.

✅ Commercial sales up 2%; industrial demand fell 3% in 2018.

Last year's Houston cold winter and hot summer drove power use to record levels, especially among households that rely on electricity for air conditioning during extreme weather conditions.

Electricity generation increased 4 per cent nationwide in 2018 and produced 4,178 million megawatt hours, driven in part by record natural gas generation across the U.S., surpassing the previous peak of 4,157 megawatt hours set in 2007, the Energy Department reported.

U.S. households bought 6 percent more electricity in 2018 than they did the previous year, despite longer-term declines in national consumption, reflecting the fact 87 percent of households cool their homes with air conditioning and 35 percent use electricity for heating.

Electricity sales to the commercial sector increased 2 percent in 2018 compared to the previous year while the industrial sector bought 3 percent less last year.

Going forward, the Energy Department forecasts that electricity consumption will grow at a slower pace than in recent decades, aligning with falling sales projections as technology improves and energy efficiency standards moderate consumption.

The economy and population growth are primary drivers of demand and the government predicts the number of households will grow at 0.7 percent per year from now until 2050 but electricity demand will grow only by 0.4 percent annually.

Likewise, commercial floor space is expected to increase 1 percent per year from now until 2050 but electricity sales will increase only by half that amount.

Globally, surging electricity demand is putting power systems under strain, providing context for these domestic trends.

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Vehicle-to-Grid Revenue helps EV owners earn income via V2G, demand response, and ancillary services by exporting stored energy, supporting grid balancing, smart charging, and renewable integration with two-way charging infrastructure.

Key Points

Income EV owners earn by selling battery power to the grid for balancing, response, and flexibility services.

✅ Earn up to about $1,530 annually in Denmark trials

✅ Requires V2G-compatible EVs and two-way smart chargers

✅ Provides ancillary services and supports renewable integration

Electric car owners are earning as much as $1,530 a year just by parking their vehicle and feeding excess power back into the grid, effectively selling electricity back to the grid under V2G schemes.

Trials in Denmark carried out by Nissan and Italy’s biggest utility Enel Spa showed how batteries inside electric cars could, using vehicle-to-grid technology, help balance supply and demand at times and provide a new revenue stream for those who own the vehicles.

Technology linking vehicles to the grid marks another challenge for utilities already struggling to integrate wind and solar power into their distribution system. As the use of plug-in cars spreads, grid managers will have to pay closer attention and, with proper management, to when motorists draw from the system and when they can smooth variable flows.

For example, California's grid stability efforts include leveraging EVs as programs expand.

“If you blindingly deploy in the market a massive number of electric cars without any visibility or control over the way they impact the electricity grid, you might create new problems,” said Francisco Carranza, director of energy services at Nissan Europe in an interview with Bloomberg New Energy Finance.

While the Tokyo-based automaker has trials with more than 100 cars across Europe, only those in Denmark are able to earn money by feeding power back into the grid. There, fleet operators collected about 1,300 euros ($1,530) a year using the two-way charge points, said Carranza.

Restrictions on accessing the market in the U.K. means the company needs to reach about 150 cars before they can get paid for power sent back to the grid. That could be achieved by the end of this year, he said.

“It’s feasible,” he said. “It’s just a matter of finding the appropriate business model to deploy the business wide-scale.’’

Electric car demand globally is expected to soar, challenging state power grids and putting further pressure on grid operators to find new ways of balancing demand. Power consumption from vehicles will grow to 1,800 terawatt-hours in 2040 from just 6 terawatt-hours now, according to Bloomberg New Energy Finance.

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DOE Wind Energy Funding backs 13 R&D projects advancing offshore wind, distributed energy, and utility-scale turbines, including microgrids, battery storage, nacelle and blade testing, tall towers, and rural grid integration across the United States.

Key Points

DOE Wind Energy Funding is a $28M R&D effort in offshore, distributed, and utility-scale wind to lower cost and risk.

✅ $6M for rural microgrids, storage, and grid integration.

✅ $7M for offshore R&D, nacelle and long-blade testing.

✅ Up to $10M demos; $5M for tall tower technology.

The U.S. Department of Energy announced that in order to advance wind energy in the U.S., 13 projects have been selected to receive $28 million. Project topics focus on technology development while covering distributed, offshore wind growth and utility-scale wind found on land.

The selections were announced by the DOE’s Assistant Secretary for the Office of Energy Efficiency and Renewable Energy, Daniel R. Simmons, at the American Wind Energy Association Offshore Windpower Conference in Boston, as New York's offshore project momentum grows nationwide.

Wind Project Awards

According to the DOE, four Wind Innovations for Rural Economic Development projects will receive a total of $6 million to go toward supporting rural utilities via facilitating research drawing on U.K. wind lessons for deployment that will allow wind projects to integrate with other distributed energy resources.

These endeavors include:

Bergey WindPower (Norman, Oklahoma) working on developing a standardized distributed wind/battery/generator micro-grid system for rural utilities;

Electric Power Research Institute (Palo Alto, California) working on developing modeling and operations for wind energy and battery storage technologies, as large-scale projects in New York progress, that can both help boost wind energy and facilitate rural grid stability;

Iowa State University (Ames, Iowa) working on optimization models and control algorithms to help rural utilities balance wind and other energy resources; and

The National Rural Electric Cooperative Association (Arlington, Virginia) providing the development of standardized wind engineering options to help rural-area adoption of wind.

Another six projects are to receive a total of $7 million to facilitate research and development in offshore wind, as New York site investigations advance, with these projects including:

Clemson University (North Charleston, South Carolina) improving offshore-scale wind turbine nacelle testing via a “hardware-in-the-loop capability enabling concurrent mechanical, electrical and controller testing on the 7.5-megawatt dynamometer at its Wind Turbine Drivetrain Testing Facility to accelerate 1 GW on the grid progress”; and

The Massachusetts Clean Energy Center (Boston) upgrading its Wind Technology Testing Center to facilitate structural testing of 85- to 120-meter-long (roughly 278- to 393-foot-long) blades, as BOEM lease requests expand, among other projects.

Additionally, two offshore wind technology demonstration projects will receive up to $10 million for developing initiatives connected to reducing wind energy risk and cost. One last project will also be granted $5 million for the development of tall tower technology that can help overcome restrictions associated with transportation.

“These projects will be instrumental in driving down technology costs and increasing consumer options for wind across the United States as part of our comprehensive energy portfolio,” said Simmons.

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