Transmission key to renewable power: report

Germany's Coal Reliance reflects an energy crisis, soaring natural gas prices, and a nuclear phase-out, as Destatis data show higher coal-fired electricity despite growing wind and solar generation, impacting grid stability and emissions.

Key Points

Germany's coal reliance is more coal power due to gas spikes and a nuclear phase-out, despite wind and solar growth.

✅ Coal share near one-third of electricity, per Destatis

✅ Gas-fired output falls as prices soar after Russia's invasion

✅ Wind and solar rise; grid stability and recession risks persist

Germany is relying on highly-polluting coal for almost a third of its electricity, as the impact of government policies, reflecting an energy balancing act for the power sector, and the war in Ukraine leads producers in Europe’s largest economy to use less gas and nuclear energy.

In the first six months of the year, Germany generated 82.6 kWh of electricity from coal, up 17 per cent from the same period last year, according to data from Destatis, the national statistics office, published on Wednesday. The leap means almost one-third of German electricity generation now comes from coal-fired plants, up from 27 per cent last year. Production from natural gas, which has tripled in price to €235 per megawatt hour since Russia’s invasion in late February, fell 18 per cent to only 11.7 per cent of total generation.

Destatis said that the shift from gas to coal was sharper in the second quarter. Coal-fired electricity increased by an annual rate of 23 per cent in the three months to June, while electricity generation from natural gas fell 19 per cent.

The figures highlight the challenge facing European governments in meeting clean energy goals after the Kremlin announced this week that the Nordstream 1 pipeline that takes Russian gas to Germany would remain closed until Europe removed sanctions on the country’s oil.

Germany has been trying to reduce its reliance on coal, which releases almost twice as many emissions as gas and more than 60 times those of nuclear energy, according to estimates from the Intergovernmental Panel on Climate Change, though grid expansion challenges have slowed renewable build-out in recent years.

Chancellor Olaf Scholz said the opposition CDU bore “complete responsibility” for the exit from coal and nuclear power that formed part of his predecessor Angela Merkel’s Energiewende policies, amid a continuing nuclear option debate in climate policy, which in turn raised reliance on Russian gas. At the beginning of this year, more than 50 per cent of Germany’s gas imports came from Russia, a figure that fell slightly over the opening half of 2022.

But CDU leader Friedrich Merz accused the government of “madness” over its decision to idle the country’s three remaining nuclear power stations from the end of this year, though officials have argued that nuclear would do little to solve the gas issue in the short term.

Electricity generation from nuclear energy has already halved after three of the six nuclear power plants that were still in operation at the end of 2021 were closed during the first half of this year. Berlin said on Monday it would keep on standby two of its remaining three nuclear power stations, a move to extend nuclear power during the energy crisis, which were all due to close at the end of the year.

The German government has warned of the risk of electricity shortages this winter. “We cannot be sure that, in the event of grid bottlenecks in neighbouring countries, there will be enough power plants available to help stabilise our electricity grid in the short term,” said German economy minister Robert Habeck on Monday.

However Scholz said that, after raising gas storage levels to 86 per cent of capacity, Germany would “probably get through this winter, despite all the tension”.

One bright spot from the data was the increase in use of renewable energy, highlighting a recent renewables milestone in Germany. The proportion of electricity generated from wind power generation rose by 18 per cent to 25 per cent of all electricity generation, while solar energy production increased 20 per cent.

Ángel Talavera, head of Europe economics at the consultancy Oxford Economics, said that the success in moving away from gas towards other energy sources “means that the risks of hard energy rationing over the winter are less severe now, even with little to no Russian gas flows”.

However, economists still expect a recession in the eurozone’s largest economy, amid a deteriorating German economy outlook over the near term, as a large part of the impact comes via higher prices and because industries and households still rely on gas for heating.

Separate official data also published on Wednesday showed that German industrial production slid 0.3 per cent between June and July. Production at Germany’s most energy intensive industries fell almost 7 per cent in the five months after Russia’s invasion of Ukraine.

“The demand destruction caused by the surge in prices will still send the German economy into recession over the winter,” said Talavera.

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US Summer Grid Blackout Risk: NERC and FERC warn of strained reliability as drought, heat waves, and transmission constraints hit MISO, hydro, and renewables, elevating blackout exposure and highlighting demand response and storage solutions.

Key Points

A forecast of summer power shortfalls across the US grid, driven by heat, drought, transmission limits, and a changing resource mix.

✅ NERC and FERC warn of elevated blackout risk and reliability gaps.

✅ MISO region strained by drought, heat, and limited hydro.

✅ Mitigations: demand response, storage, and stronger transmission.

Just when it didn’t seem things couldn’t get worse — gasoline at $5 to $8 a gallon, supply shortages in everything from baby formula to new cars — comes the devastating news that many of us will endure electricity blackouts this summer, and that the U.S. has more blackouts than other developed nations according to one study.

The alarm was sounded by the nonprofit North American Electric Reliability Corp. and the Federal Energy Regulatory Commission, following a recent power grid report card highlighting vulnerabilities.

The North American electric grid is the largest machine on earth and the most complex, incorporating everything from the wonky pole you see at the roadside with a bird’s nest of wires to some of the most sophisticated engineering ever devised. It runs in real-time, even more so than the air traffic control system: All the airplanes in the sky don’t have to land at the same time, but electricity must be there at the flick of every switch.

Except it may not always be there this summer. Rod Kuckro, a respected energy journalist, says it depends on Mother Nature, with extreme weather impacts increasingly straining the grid, but the prognosis isn’t good.

Speaking on “White House Chronicle,” the weekly news and public affairs program on PBS that I host and produce, Kuckro said: “There is a confluence of factors that could affect energy supply across the majority of the (lower) 48 states. These are continued reduced hydroelectric production in the West, and the continued drought in the Southwest.”

The biggest threat to power supply, according to the NERC and the FERC, is in the vast central region, reaching from Manitoba in Canada, where grids are increasingly exposed to harsh weather in recent years, down to the Gulf of Mexico. It is served by the regional transmission organization, the Midcontinent Independent System Operator.

These operational entities are nonprofit companies that organize and distribute their regions’ bulk power for utilities. In California, it is the California Independent System Operator, working to keep the lights on as the state enters a new energy era; in the Mid-Atlantic, it is PJM; and in the Northeast, it is the New England System Independent Operator. They generate no power, but they control power flows and could initiate brownouts and blackouts.

With record storm activity and high temperatures predicted this summer, blackouts are likely to be deadly. The old, the young and the sick are all vulnerable. If the electric supply fails, with it goes everything from air conditioning to refrigeration to lights and even the ability to pump gas or access money from ATMs.

The United States, along with other modern nations, runs on electricity and when that falls short, it is catastrophic. It is chaos writ large, especially if the failure lasts more than a few hours.

On the same episode of “White House Chronicle,” Daniel Brooks, vice president of integrated grid and energy systems at the Electric Power Research Institute, also referred to a “confluence of factors” contributing to the impending electricity crisis. Brooks said, “We’re going through a significant change in terms of the energy mix and resources, and the way those resources behave under certain weather conditions.”

If power supply is stressed this summer, change in the generating mix will get a lot of political attention. At heart is the switch from fossil fuel generation to renewables. If there are power outages, a political storm will ensue. The Biden administration will be accused of speeding the switch to renewables, although the utilities don’t say that.

The weather is deteriorating, and, as experts note, the grid’s biggest challenge isn’t demand but climate change pressures that compound risks, and the grid is stretched in dealing with new realities as well as coping with old bugaboos, like the extreme difficulty in building transmission lines. Better transmission would relieve a lot of grid stress.

Peter Londa, president of Tantalus Systems, which helps its 260 utility customers digitize and cope with the new realities, explained some of the difficulties facing the utilities not only in the shifting sources of generation but also in the new shape of the electric demand. For example, he said, electric vehicles, particularly the much-awaited Ford F-150 Lightning pickup, could be an asset to homeowners and utilities, as California increasingly turns to batteries to stabilize its grid. During a blackout, their EVs could be used to power their homes for days. They could be a source of storage if thousands of owners signed up with their utilities in a storage program.

The fact is that utilities are facing three major shifts: in the generation to wind and solar, in customer demand, and especially in weather. Mother Nature is on a rampage and we all must adjust to that.
 

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Australia electricity grid transition is accelerating as renewables, wind, solar, and storage drive decentralised generation, emissions cuts, and NEM trade shifts, with South Australia becoming a net exporter post-Hazelwood closure and rooftop solar surging.

Key Points

Australia electricity shift to renewables, distributed generation and storage, cutting emissions, reshaping NEM flows.

✅ South Australia now exports power post-Hazelwood closure

✅ Rooftop solar is the fastest-growing NEM generation source

✅ Gas peaking and storage investments balance variable renewables

The politics may not change much, but Australia’s electricity grid is changing before our very eyes – slowly and inevitably becoming more renewable, more decentralised, and in step with Australia's energy transition that is challenging the pre-conceptions of many in the industry.

The latest national emissions audit from The Australia Institute, which includes an update on key electricity trends in the national electricity market, notes some interesting developments over the last three months.

The most surprising of those developments may be the South Australia achievement, which shows that since the closure of the Hazelwood brown coal generator in Victoria in March 2017, and as renewables outpacing brown coal in other markets, South Australia has become a net exporter of electricity, in net annualised terms.

Hugh Saddler, lead author of the study, notes that this is a big change for South Australia, which in 1999 and 2000, when it had only gas and local coal, used to import 30% of its electricity demand.

#google#

The fact that wholesale prices in South Australia were higher in other states – then, as they are now – has nothing to with wind and solar, but the fact that it has no low-cost conventional source and a peaky demand profile (then and now).

“The difference today is that the state is now taking advantage of its abundant resources of wind and solar radiation, and the new technologies which have made them the lowest cost sources of new generation, to supply much of its electricity requirements,” Saddler writes.

Other things to note about the flows between states is that Victoria was about equal on imports and exports with its three neighbouring states, despite the closure of Hazelwood. NSW continues to import around 10% of its needs from cheaper providers in Queensland.

Gas-fired generation had increased in the last year or two in South Australia as a result of the Northern closure, but is still below the levels of a decade ago.

But because it is expensive, this is likely to spur more investment in storage.

As for rooftop solar, Saddler notes that the share of residential solar in the grid is still relatively small but, despite excess solar risks flagged by distributors, it is the most steadily growing generation source in the NEM.

That line is expected to grow steadily. By 2040, or perhaps 2050, the share of distributed generation, which includes rooftop solar, battery storage and demand management, is expected to reach nearly half of all Australia’s grid demand.

Saddler, says, however, that the increase in large-scale solar over the last few months is a significant milestone in Australia’s transition towards clean electricity generation, mirroring trends in India's on-grid solar development seen in recent years. (See very top graph).

“Firstly, they are a concrete demonstration that the construction cost advantage, which wind enjoyed over solar until a year or two ago, is gone.

“From now on we can expect new capacity to be a mix of both technologies. Indeed, the Clean Energy Regulator states that it expects solar to account for half of all (new renewable) capacity by 2020, and the US is moving toward 30% from wind and solar as well.”

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Texas Power Grid Reliability faces record peak demand as ERCOT balances renewable energy, wind and solar variability, gas-fired generation, demand response, and transmission limits to prevent blackouts during heat waves and extreme weather.

Key Points

Texas Power Grid Reliability is ERCOT's capacity to meet peak demand with diverse resources while limiting outages.

✅ Record heat drives peak demand across ERCOT.

✅ Variable wind/solar need firm, flexible capacity.

✅ Demand response and reserves reduce blackout risk.

The electric power grid in Texas, which collapsed dramatically during the 2021 winter storm across the state, is being tested again as the state suffers unusually hot summer weather. Demand for electricity has reached new records at a time of rapid change in the mix of power sources as wind and solar ramp up. That’s feeding a debate about the dependability of the state’s power. 

1. Why is the Texas grid under threat again? 

Already the biggest power user in the nation, electricity use in the second most-populous state surged to record levels during heat waves this summer. The jump in demand comes as the state becomes more dependent on intermittent renewable power sources, raising concerns among some critics that more reliance on wind and solar will leave the grid more vulnerable to disruption. Green sources will produce almost 40% of the power in Texas this year, US Energy Information Administration data show. While that trails California’s 52%, Texas is a bigger market. It’s already No. 1 in wind, making it the largest clean energy market in the US. 

2. How is Texas unique? 

The spirit of defiance of the Lone Star State extends to its power grid as well. The Electric Reliability Council of Texas, or Ercot as the grid operator is known, serves about 90% of the state’s electricity needs and has very few high-voltage transmission lines connecting to nearby grids. It’s a deliberate move to avoid federal oversight of the power market. That means Texas has to be mainly self-reliant and cannot depend on neighbors during extreme conditions. That vulnerability is a dramatic twist for a state that’s also the energy capital of the US, thanks to vast oil and natural gas producing fields. Favorable regulations are also driving a wind and solar boom in Texas. 

3. Why the worry? 

The summer of 2023 will mark the first time all of the state’s needs cannot be met by traditional power plants, like nuclear, coal and gas. A sign of potential trouble came on June 20 when state officials urged residents to conserve power because of low supplies from wind farms and unexpected closures of fossil-fuel generators amid supply-chain constraints that limited availability. As of late July, the grid was holding up, thanks to the help of renewable sources. Solar generation has been coming in close to expected summer capacity, or exceeding it on most days. This has helped offset the hours in the middle of the day when wind speeds died down in West Texas. 

4. Why didn’t the grid’s problems get fixed? 

There is no easy fix. The Texas system allows the price of electricity to swing to match supply and demand. That means high prices — and high profits — drive the development of new power plants. At times spot power prices have been as low as $20-$50 a megawatt-hour versus more than $4,000 during periods of stress. The limitation of this pricing structure was laid bare by the 2021 winter blackouts. Since then, state lawmakers have passed market reforms that require weatherization of critical infrastructure and changed rules to put more money in the pockets of the owners of power generation.  

5. What’s the big challenge? 

There’s a real clash going on over what the grid of the future should look like in Texas and across the country, especially as severe heat raises blackout risks nationally. The challenge is to make sure nuclear and fossil fuel plants that are needed right now don’t retire too early and still allow newer, cleaner technologies to flourish. Some conservative Republicans have blamed renewable energy for destabilizing the grid and have pushed for more fossil-fuel powered generators. Lawmakers passed a controversial $10 billion program providing low-interest loans and grants to build new gas-fired plants using taxpayer money, but Texans ultimately have to vote on the subsidy. 

6. Why do improvements take so long? 

Figuring out how to keep the lights on without overburdening consumers is becoming a greater challenge amid more extreme weather fueled by climate change. As such, changing the rules is often a hotly contested process pitting utilities, generators, manufacturers, electricity retailers and other groups against one another. The process became more politicized after the storm in 2021 with Republican Gov. Greg Abbott and lawmakers ordering Ercot to make changes. Building more transmission lines and connecting to other states can help, but such projects are typically tied up for years in red tape.

7. What can be done? 

The price cap for electricity was cut from $9,000/MWh to $5,000 to help avoid the punitive costs seen in the 2021 storm, though prices are allowed to spike more easily. Ercot is also contracting for more reserves to be online to help avoid supply shortfalls and improve reliability for customers, which added $1.7 billion in consumer costs alone last year. Another rule helps some gas generators pay for their fuel costs, while a more recent reform put in price floors when reserves fall to certain levels. Many power experts say that the easiest solution is to pay people to reduce their energy consumption during times of grid stress through so-called demand response programs. Factories, Bitcoin miners and other large users are already compensated to conserve during tight grid conditions.

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China Unified Power Market enables carbon neutrality through renewable integration, cross-provincial electricity trading, smart grid upgrades, energy storage, and market reform, reducing coal dependence and improving grid flexibility, efficiency, and emissions mitigation.

Key Points

A national power market integrating renewables and grids to cut coal use and accelerate carbon neutrality.

✅ Harmonizes pricing and cross-provincial electricity trading.

✅ Boosts renewable integration with storage and smart grids.

✅ Improves dispatch efficiency, reliability, and emissions cuts.

China's ambitious goal to achieve carbon neutrality has become a focal point in global climate discussions around the global energy transition worldwide, with experts emphasizing the pivotal role of a unified power market in realizing this objective. This article explores China's commitment to carbon neutrality, the challenges it faces, and how a unified power market could facilitate the transition to a low-carbon economy.

China's Commitment to Carbon Neutrality

China, as the world's largest emitter of greenhouse gases, has committed to achieving carbon neutrality by 2060. This ambitious goal signals a significant shift towards reducing carbon emissions and mitigating climate change impacts. Achieving carbon neutrality requires transitioning away from fossil fuels, including investing in carbon-free electricity pathways and enhancing energy efficiency across sectors such as industry, transportation, and residential energy consumption.

Challenges in China's Energy Landscape

China's energy landscape is characterized by its heavy reliance on coal, which accounts for a substantial portion of electricity generation and contributes significantly to carbon emissions. Transitioning to renewable energy sources such as wind, solar, hydroelectric, and nuclear power is essential to reducing carbon emissions and achieving carbon neutrality. However, integrating these renewable sources into the existing energy grid poses technical, regulatory, and financial challenges that often hinge on adequate clean electricity investment levels and policy coordination.

Role of a Unified Power Market

A unified power market in China could play a crucial role in facilitating the transition to a low-carbon economy. By integrating regional power grids and promoting cross-provincial electricity trading, a unified market can optimize the use of renewable energy resources, incorporate lessons from decarbonizing electricity grids initiatives to enhance grid stability, and reduce reliance on coal-fired power plants. This market mechanism encourages competition among energy producers, incentivizes investment in renewable energy projects, and improves overall efficiency in electricity generation and distribution.

Benefits of a Unified Power Market

Implementing a unified power market in China offers several benefits in advancing its carbon neutrality goals. It promotes renewable energy development by providing a larger market for electricity generated from wind, solar, and other clean sources that underpin the race to net-zero in many economies. It also enhances grid flexibility, enabling better management of fluctuations in renewable energy supply and demand. Moreover, a unified market encourages innovation in energy storage technologies and smart grid infrastructure, essential components for integrating variable renewable energy sources.

Policy and Regulatory Considerations

Achieving a unified power market in China requires coordinated policy efforts and regulatory reforms. This includes harmonizing electricity pricing mechanisms, streamlining administrative procedures for electricity trading across provinces, and ensuring fair competition among energy producers. Clear and consistent policies that support renewable energy deployment and grid modernization, and align with insights on climate policy and grid implications from other jurisdictions, are essential to attracting investment and fostering a sustainable energy transition.

International Collaboration and Leadership

China's commitment to carbon neutrality presents opportunities for international collaboration and leadership in climate action. Engaging with global partners, sharing best practices, and promoting technology transfer, as seen with Canada's 2050 net-zero target commitments, can accelerate progress towards a low-carbon future. By demonstrating leadership in clean energy innovation and climate resilience, China can contribute to global efforts to mitigate climate change and achieve sustainable development goals.

Conclusion

China's pursuit of carbon neutrality by 2060 represents a monumental endeavor that requires transformative changes in its energy sector. A unified power market holds promise as a critical enabler in this transition, facilitating the integration of renewable energy sources, enhancing grid flexibility, and optimizing energy efficiency. By prioritizing policy coherence, regulatory reform, and international cooperation, China can pave the way towards a sustainable energy future while addressing global climate challenges.

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FortisAlberta COVID-19 response delivers safe electricity distribution across Alberta, with remote monitoring, 24/7 support, outage alerts, dispersed crews, and business continuity measures to sustain essential services for customers and communities.

Key Points

Plan ensuring reliable electricity in Alberta through 24/7 support, remote monitoring, outage alerts, and dispersed crews.

✅ 24/7 customer support via 310-WIRE and mobile app

✅ Remote monitoring and rapid outage restoration

✅ Dispersed crews in 50 communities for faster response

As the COVID-19 pandemic continues to evolve in Alberta (and around the world), FortisAlberta is taking the necessary actions and precautions informed by utility disaster planning to protect the health and well-being of its employees and to provide electricity service to its customers. FortisAlberta serves more than half a million customers with the electricity they depend on to take care of their families and community members throughout our province.

"We recognize these are challenging times as while most Albertans are asked to stay home others continue to work in the community to provide essential services, including utility workers in Ontario demonstrating support efforts. As your electricity distribution provider, please be assured you can count on us to do what we do best – provide our customers with safe and reliable electricity service wherever and whenever they need it," says Michael Mosher, FortisAlberta President and CEO.

FortisAlberta is proud to be a part of the communities it serves and commits to keeping the lights on for its customers. The company is providing a full range of services for its customers and has instilled best practices within critical parts of its business. The company's control centre continues to remotely monitor, control, and restore, where possible, the delivery of power across the entire province, including during events such as an Alberta grid alert that stress the system. Early in March, FortisAlberta implemented its business continuity plan and the company remains fully accessible to customers 24/7 by phone at 310-WIRE (9473) or through its mobile app where customers can report outages online or view details of an outage. Customers can also sign up for outage alerts to their mobile phone and/or email address to let them know if an outage does occur.

FortisAlberta's power line employees are geographically dispersed across 50 different communities so they can quickly address any issues that may arise. The company has implemented work from home measures and isolation best practices, and is planning for potential on-site lockdowns where necessary to ensure no disruption to customers.

FortisAlberta will continue to remain in close communication with its stakeholders to provide updates to customers and with industry associations to share guidance specific to the electricity sector, including insights on the evolving U.S. grid response to COVID-19 from peer utilities. FortisAlberta will also continue to invest in and empower its communities by contributing to organizations that offer programs and services aligned with the greatest needs in the communities it serves.

With the Alberta Government's recent announcement to provide relief to eligible Albertans by deferring electricity and gas charges for up to 90 days, similar to some B.C. relief measures being implemented, FortisAlberta is committed to working with stakeholders and retail partners to ensure this option is available to customers quickly and efficiently, and to learn from initiatives like the Hydro One relief fund that support customers.

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