TVA eyes windfall of green-energy credits

By Knoxville News Sentinel


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When TVA buys electricity from producers of renewable energy, there's more to the transaction than exchanging dollars.

Attached to each megawatt hour is a renewable energy certificate, which has a value determined at state and international auctions, in large part, because it allows buyers to offset their carbon emissions and sellers to reap additional revenues in addition to the power they produce.

RECs aren't new, but they haven't made much local relevance until recently.

Tennessee doesn't have a renewable portfolio standard, which requires utilities to utilize a certain percentage of green power, or much renewable electricity production. And the lack of movement on federal cap-and-trade legislation has kept the instruments out of the limelight.

But TVA's recent decision to buy more renewable power, coupled with investors seeking ways to profit from green energy production, has pushed RECs into the local conversation — and in the case of at least one area solar developer, they've become part of its business plan.

TVA says its still determining what to do with the growing number of certificates it will acquire in the coming months.

TVA currently owns about 200,000 certificates, but will acquire several million between now and 2013, with the bulk coming in 2012 when the wind power it's contracted for comes online, says Steve Lomax, TVA senior manager for clean and renewable energy.

"We were preparing for what we anticipated to be a federal policy mandate that has not yet materialized," Lomax says. Now the agency must decide, "What do we do with the renewable credits that we have?"

TVA's current certificates were generated by its wind turbines, perched atop Buffalo Mountain near Oak Ridge, as well as its Generation Partners program, which pays customers a premium for the renewable power they generate. Per contract, TVA will also own the RECs associated with its new Standard Offer program, created for larger green power installations.

TVA has used the certificates as part of its Green Power Switch program, in which customers pay a premium for green energy, Lomax says, and to fulfill a federal order, which requires 5 percent of the electricity used by federal agencies to be generated by renewable sources.

TVA this fall announced deals to buy more than 1,600 megawatts of wind power and the associated RECs from a variety of providers, primarily in the Midwest, Lomax says.

The markets for RECs are created by renewable portfolio standards — now adopted in 30 states and the District of Columbia — that require power companies to provide a certain percentage of power from renewable sources. Voluntary markets, such as Tennessee, are those in which customers purchase green power simply because they want to.

Local solar developers have expressed frustration at TVA's stance, particularly in the recent launch of a new program set up for larger renewable generation systems that don't qualify for Generation Partners. The program's pricing structure is inadequate for solar investors, and they argue TVA should have taken the value of solar RECs — which trade at a higher price because several states have solar-power requirements for producers' portfolio — into account when the agency buys solar power.

But Lomax says the market for RECs is too uncertain right now to factor into power purchases.

"Theoretically it could be of consideration for the pricing if they were of value and if the market needed them," he says. "It really comes down to... are you choosing preferential renewable energy resources. Are you treating them all fairly?"

One local company has developed a financing program for solar systems built around the value of RECs versus the value of TVA's incentive programs.

TerraShares, a Morristown environmental services company, has been working to help organizations offset the initial capital costs by using third-party investors to finance and operate solar installations.

The company first explored the potential of RECs when TVA temporarily suspended its Generation Partners program earlier this year, says TerrShares founder John Atkins.

"Everyone was running around, understandably, like Chicken Little wondering what they were going to do," he says. "What we found is there are places we can sell those RECs. In fact, the revenue from those sources is better than Generation Partners."

TerraShares' customers would not feed TVA's electric grid, but would use the electricity to power their own operations.

"The history is that prices have been very stable in these auctions," Atkins says.

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Wind generates more than half of Summerside's electricity in May

Summerside Wind Power reached 61% in May, blending renewable energy, municipal utility operations, and P.E.I. wind farms, driving city revenue, advancing green city goals, and laying groundwork for smart grid integration.

 

Key Points

Summerside Wind Power is the city utility's wind supply, 61% in May, generating revenue that supports local services.

✅ 61% of electricity in May from wind; annual target 45%.

✅ Mix of city-owned farm and West Cape Wind Farm contract.

✅ Revenues projected at $2.9M; funds municipal budget and services.

 

During the month of May, 61 per cent of the electricity Summerside's homes, businesses and industries used came from wind power sources.

25 per cent was purchased from the West Cape Wind Farm in West Point, P.E.I. — the city has had a contract with it since 2007. The other 36 per cent came from the city's own wind farm, which was built in 2009. 

"One of the strategic goals that was planned for by the city back in 2005 was to try to become a 100 per cent green city," said Greg Gaudet, Summerside's director of municipal services.

"The city started looking at ways it could adopt green practices into its operations on everything it owns and operates and provides services to the community."

Summerside Electric powers about 6,200 residential, 970 commercial and 30 industrial customers and also sells to NB Power, while Nova Scotia Power now generates 30 per cent of its electricity from renewables.

The Summerside Wind Farm is owned by the City of Summerside, which then sells the electricity to Summerside Electric, which it also owns, for profit. 

For the months of April and May, the wind farm generated $630,000 for the city. Last year, it was $507,000 over the same time frame, which does not include a 2 per cent rate increase imposed this year.

"We had a lot of good, strong days of wind for the month of May over other years. So normally we'd be on average somewhere in the range of the 45 per cent range for those months," said Gaudet. 

The city's annual target for wind generation is also 45 per cent, which aligns with the view that more energy sources make better projects. Gaudet said it balances out over the year, with winter being the best and production dropping as low as 25 per cent in the summer months.

At Summerside council's monthly meeting on Monday, May's 61 per cent figure was touted as one of the highest months on record.

"To have one at 61 per cent means we had great production from our wind facilities and contracts, though communities such as Portsmouth have raised turbine noise and flicker concerns in other contexts," Gaudet said.

The utility also owns and provides power through a diesel generation plant.

Municipal money maker
The municipality projects its wind energy production will generate $2.9 million for the city in its current fiscal year, which began April 1, paralleling job gains seen in Alberta's renewables surge this year.

"Any revenues that are received from the wind farm facility goes into the City of Summerside budget," Gaudet said. "Then the council decides on how that money is accrued and where it goes and what it supports in the community."

Wind power generated $2.89 million for the city in the 2019-2020 fiscal year. The budget originally projected $3.2 million in revenue, but blade damage sustained during post-tropical storm Dorian put two turbines out of commission for a few weeks.

Gaudet called this their "only bad year" and officials said they see this year's target to be a bit more conservative and achievable regardless of hiccups and uncontrollable forces, such as the wind they're harnessing.

"It's performed outstandingly well," said Gaudet of the operation.

"There's been no huge, major cost factors with the wind farm to date ... its production has been fairly consistent from year to year." 

Gaudet said the technology has already been piloted at a smaller operation at Credit Union Place, aligning with municipal solar power projects elsewhere.

The goal of the project is to bring Summerside's renewable portfolio up to a yearly average of 62 per cent. Gaudet said it's expected to be commissioned by May 2022 at the latest and after that, the city hopes to focus on smart grid technology.

"It's a long-term goal and I think it's the right [investment] to make," he said. "You have to be environmentally conscious and a steward of your community.

"I think Summerside is that and does that ... a model for North America to look at how a city can work a relationship with an electric utility for the betterment."

 

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B.C. Challenges Alberta's Electricity Export Restrictions

BC-Alberta Electricity Restrictions spotlight interprovincial energy tensions, limiting power exports and affecting grid reliability, energy sharing, and climate goals, while raising questions about federal-provincial coordination, smart grids, and storage investments.

 

Key Points

Policies limiting Alberta's power exports to provinces like BC, prioritizing local demand and affecting grid reliability.

✅ Prioritizes Alberta load over interprovincial power exports

✅ Risks to BC peak demand support and outage resilience

✅ Pressures for federal-provincial coordination and smart-grid investment

 

In a move that underscores the complexities of Canada's interprovincial energy relationships, the government of British Columbia (B.C.) has formally expressed concerns over recent electricity restrictions imposed by Alberta after it suspended electricity purchase talks with B.C., amid ongoing regional coordination challenges.

Background: Alberta's Electricity Restrictions

Alberta, traditionally reliant on coal and natural gas for electricity generation, has been undergoing a transition towards more sustainable energy sources as it pursues a path to clean electricity in the province.

In response, Alberta introduced restrictions on electricity exports, aiming to prioritize local consumption and stabilize its energy market and has proposed electricity market changes to address structural issues.

B.C.'s Position: Ensuring Energy Reliability and Cooperation

British Columbia, with its diverse energy portfolio and commitment to sustainability, has historically relied on the ability to import electricity from Alberta, especially during periods of high demand or unforeseen shortfalls. The recent restrictions threaten this reliability, prompting B.C.'s government to take action amid an electricity market reshuffle now underway.

B.C. officials have articulated that access to Alberta's electricity is crucial, particularly during outages or times when local generation does not meet demand. The ability to share electricity among provinces ensures a stable and resilient energy system, benefiting consumers and supporting economic activities, including critical minerals operations, that depend on consistent power supply.

Moreover, B.C. has expressed concerns that Alberta's restrictions could set a precedent that might affect future interprovincial energy agreements. Such a precedent could complicate collaborative efforts aimed at achieving national energy goals, including sustainability targets and infrastructure development.

Broader Implications: National Energy Strategy and Climate Goals

The dispute between B.C. and Alberta over electricity exports highlights the absence of a cohesive national energy strategy, as external pressures, including electricity exports at risk, add complexity. While provinces have jurisdiction over their energy resources, the interconnected nature of Canada's power grids necessitates coordinated policies that balance local priorities with national interests.

This situation also underscores the challenges Canada faces in meeting its climate objectives. Transitioning to renewable energy sources requires not only technological innovation but also collaborative policies that ensure energy reliability and affordability across provincial boundaries, as rising electricity prices in Alberta demonstrate.

Potential Path Forward: Dialogue and Negotiation

Addressing the concerns arising from Alberta's electricity restrictions requires a nuanced approach that considers the interests of all stakeholders. Open dialogue between provincial governments is essential to identify solutions that uphold the principles of energy reliability, economic cooperation, and environmental sustainability.

One potential avenue is the establishment of a federal-provincial task force dedicated to energy coordination. Such a body could facilitate discussions on resource sharing, infrastructure investments, and policy harmonization, aiming to prevent conflicts and promote mutual benefits.

Additionally, exploring technological solutions, such as smart grids and energy storage systems, could enhance the flexibility and resilience of interprovincial energy exchanges. Investments in these technologies may reduce the dependency on traditional export mechanisms, offering more dynamic and responsive energy management strategies.

The tensions between British Columbia and Alberta over electricity restrictions serve as a microcosm of the broader challenges facing Canada's energy sector. Balancing provincial autonomy with national interests, ensuring equitable access to energy resources, and achieving climate goals require collaborative efforts and innovative solutions. As the situation develops, stakeholders across the political, economic, and environmental spectrums will need to engage constructively, fostering a Canadian energy landscape that is resilient, sustainable, and inclusive.

 

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Its Electric Grid Under Strain, California Turns to Batteries

California Battery Storage is transforming grid reliability as distributed energy, solar-plus-storage, and demand response mitigate rolling blackouts, replace peaker plants, and supply flexible capacity during heat waves and evening peaks across utilities and homes.

 

Key Points

California Battery Storage uses distributed and utility batteries to stabilize power, shift solar, and curb blackouts.

✅ Supplies flexible capacity during peak demand and heat waves

✅ Enables demand response and replaces gas peaker plants

✅ Aggregated assets form virtual power plants for grid support

 

Last month as a heat wave slammed California, state regulators sent an email to a group of energy executives pleading for help to keep the lights on statewide. “Please consider this an urgent inquiry on behalf of the state,” the message said.

The manager of the state’s grid was struggling to increase the supply of electricity because power plants had unexpectedly shut down and demand was surging. The imbalance was forcing officials to order rolling blackouts across the state for the first time in nearly two decades.

What was unusual about the emails was whom they were sent to: people who managed thousands of batteries installed at utilities, businesses, government facilities and even homes. California officials were seeking the energy stored in those machines to help bail out a poorly managed grid and reduce the need for blackouts.

Many energy experts have predicted that batteries could turn homes and businesses into mini-power plants that are able to play a critical role in the electricity system. They could soak up excess power from solar panels and wind turbines and provide electricity in the evenings when the sun went down or after wildfires and hurricanes, which have grown more devastating because of climate change in recent years. Over the next decade, the argument went, large rows of batteries owned by utilities could start replacing power plants fueled by natural gas.

But that day appears to be closer than earlier thought, at least in California, which leads the country in energy storage. During the state’s recent electricity crisis, more than 30,000 batteries supplied as much power as a midsize natural gas plant. And experts say the machines, which range in size from large wall-mounted televisions to shipping containers, will become even more important because utilities, businesses and homeowners are investing billions of dollars in such devices.

“People are starting to realize energy storage isn’t just a project or two here or there, it’s a whole new approach to managing power,” said John Zahurancik, chief operating officer at Fluence, which makes large energy storage systems bought by utilities and large businesses. That’s a big difference from a few years ago, he said, when electricity storage was seen as a holy grail — “perfect, but unattainable.”

On Friday, Aug. 14, the first day California ordered rolling blackouts, Stem, an energy company based in the San Francisco Bay Area, delivered 50 megawatts — enough to power 20,000 homes — from batteries it had installed at businesses, local governments and other customers. Some of those devices were at the Orange County Sanitation District, which installed the batteries to reduce emissions by making it less reliant on natural gas when energy use peaks.

John Carrington, Stem’s chief executive, said his company would have provided even more electricity to the grid had it not been for state regulations that, among other things, prevent businesses from selling power from their batteries directly to other companies.

“We could have done two or three times more,” he said.

The California Independent System Operator, which manages about 80 percent of the state’s grid, has blamed the rolling blackouts on a confluence of unfortunate events, including extreme weather impacts on the grid that limited supply: A gas plant abruptly went offline, a lack of wind stilled thousands of turbines, and power plants in other states couldn’t export enough electricity. (On Thursday, the grid manager urged Californians to reduce electricity use over Labor Day weekend because temperatures are expected to be 10 to 20 degrees above normal.)

But in recent weeks it has become clear that California’s grid managers also made mistakes last month, highlighting the challenge of fixing California’s electric grid in real time, that were reminiscent of an energy crisis in 2000 and 2001 when millions of homes went dark and wholesale electricity prices soared.

Grid managers did not contact Gov. Gavin Newsom’s office until moments before it ordered a blackout on Aug. 14. Had it acted sooner, the governor could have called on homeowners and businesses to reduce electricity use, something he did two days later. He could have also called on the State Department of Water Resources to provide electricity from its hydroelectric plants.

Weather forecasters had warned about the heat wave for days. The agency could have developed a plan to harness the electricity in numerous batteries across the state that largely sat idle while grid managers and large utilities such as Pacific Gas & Electric scrounged around for more electricity.

That search culminated in frantic last-minute pleas from the California Public Utilities Commission to the California Solar and Storage Association. The commission asked the group to get its members to discharge batteries they managed for customers like the sanitation department into the grid. (Businesses and homeowners typically buy batteries with solar panels from companies like Stem and Sunrun, which manage the systems for their customers.)

“They were texting and emailing and calling us: ‘We need all of your battery customers giving us power,’” said Bernadette Del Chiaro, executive director of the solar and storage association. “It was in a very last-minute, herky-jerky way.”

At the time of blackouts on Aug. 14, battery power to the electric grid climbed to a peak of about 147 megawatts, illustrating how virtual power plants can rapidly scale, according to data from California I.S.O. After officials asked for more power the next day, that supply shot up to as much as 310 megawatts.

Had grid managers and regulators done a better job coordinating with battery managers, the devices could have supplied as much as 530 megawatts, Ms. Del Chiaro said. That supply would have exceeded the amount of electricity the grid lost when the natural gas plant, which grid managers have refused to identify, went offline.

Officials at California I.S.O. and the public utilities commission said they were working to determine the “root causes” of the crisis after the governor requested an investigation.

Grid managers and state officials have previously endorsed the use of batteries, using AI to adapt as they integrate them at scale. The utilities commission last week approved a proposal by Southern California Edison, which serves five million customers, to add 770 megawatts of energy storage in the second half of 2021, more than doubling its battery capacity.

And Mr. Zahurancik’s company, Fluence, is building a 400 megawatt-hour battery system at the site of an older natural gas power plant at the Alamitos Energy Center in Long Beach. Regulators this week also approved a plan to extend the life of the power plant, which was scheduled to close at the end of the year, to support the grid.

But regulations have been slow to catch up with the rapidly developing battery technology.

Regulators and utilities have not answered many of the legal and logistical questions that have limited how batteries owned by homeowners and businesses are used. How should battery owners be compensated for the electricity they provide to the grid? Can grid managers or utilities force batteries to discharge even if homeowners or businesses want to keep them charged up for their own use during blackouts?

During the recent blackouts, Ms. Del Chiaro said, commercial and industrial battery owners like Stem’s customers were compensated at the rates similar to those that are paid to businesses to not use power during periods of high electricity demand. But residential customers were not paid and acted “altruistically,” she said.

 

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Renewable electricity powered California just shy of 100% for the first time in history

California Renewable Energy Record highlights near-100% clean power as CAISO reports solar, wind, and storage meeting demand, with Interstate 10 arrays and distributed rooftop photovoltaics boosting the grid during Stagecoach, signaling progress toward 100%.

 

Key Points

CA Renewable Energy Record marks CAISO's peak when renewables nearly met total load, led by utility solar and storage.

✅ CAISO hit 99.87% renewables serving load at 2:50 p.m.

✅ Two-thirds of power came from utility-scale solar along I-10.

✅ Tariff inquiry delays solar-storage projects statewide.

 

Renewable electricity met just shy of 100% of California's demand for the first time on Saturday, officials said, much of it from large amounts of solar power, part of a California solar boom, produced along Interstate 10, an hour east of the Coachella Valley.

While partygoers celebrated in the blazing sunshine at the Stagecoach music festival,  "at 2:50 (p.m.), we reached 99.87 % of load served by all renewables, which broke the previous record," said Anna Gonzales, spokeswoman for California Independent System Operator, a nonprofit that oversees the state's bulk electric power system and transmission lines. Solar power provided two-thirds of the amount needed.

Environmentalists who've pushed for years for all of California's power to come from renewables and meet clean energy targets were jubilant as they watched the tracker edge to 100% and slightly beyond. 

"California busts past 100% on this historic day for clean energy!" Dan Jacobson, senior adviser to Environment California, tweeted.

"Once it hit 100%, we were very excited," said Laura Deehan, executive director for Environment California. She said the organization and others have worked for 20 years to push the Golden State to complete renewable power via a series of ever tougher mandates, even as solar and wind curtailments increase across the grid. "California solar plants play a really big role."

But Gonzales said CAISO double-checked the data Monday and had to adjust it slightly because of reserves and other resource needs, an example of rising curtailments in the state. 

Environment California pushed for 1 million solar rooftops statewide, which has been achieved, adding what some say is a more environmentally friendly form of solar power, though wildfire smoke can undermine gains, than the solar farms, which eat up large swaths of the Mojave desert and fragile landscapes.

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'Need to act with that same boldness':A record 10% of the world's power was generated by wind, solar methods in 2021

Deehan said in a statement that more needs to be done, especially at the federal level. "Despite incredible progress illustrated by the milestone this weekend, and the fact that U.S. renewable electricity surpassed coal in 2022, a baffling regulatory misstep by the Biden administration has advocates concerned about backsliding on California’s clean energy targets." 

Deehan said a Department of Commerce inquiry into tariffs on imported solar panels is delaying thousands of megawatts of solar-storage projects in California, even as U.S. renewable energy hit a record 28% in April across the grid.

Still, Deehan said, “California has shown that, for one brief and shining moment, we could do it! It's time to move to 100% clean energy, 100% of the time.”

 

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U.S. Launches $250 Million Program To Strengthen Energy Security For Rural Communities

DOE RMUC Cybersecurity Program supports rural, municipal, and small investor-owned utilities with grants, technical assistance, grid resilience, incident response, workforce training, and threat intelligence sharing to harden energy systems and protect critical infrastructure.

 

Key Points

A $250M DOE program providing grants to boost rural and municipal utilities' cybersecurity and incident response.

✅ Grants and technical assistance for grid security

✅ Enhances incident response and threat intel sharing

✅ Builds cybersecurity workforce in rural utilities

 

The U.S. Department of Energy (DOE) today issued a Request for Information (RFI) seeking public input on a new $250 million program to strengthen the cybersecurity posture of rural, municipal, and small investor-owned electric utilities.

Funded by President Biden’s Bipartisan Infrastructure Law and broader clean energy funding initiatives, the Rural and Municipal Utility Advanced Cybersecurity Grant and Technical Assistance (RMUC) Program will help eligible utilities harden energy systems, processes, and assets; improve incident response capabilities; and increase cybersecurity skills in the utility workforce. Providing secure, reliable power to all Americans, with a focus on equity in electricity regulation across communities, will be a key focus on the pathway to achieving President Biden’s goal of a net-zero carbon economy by 2050. 

“Rural and municipal utilities provide power for a large portion of low- and moderate-income families across the nation and play a critical role in ensuring the economic security of our nation’s energy supply,” said U.S. Secretary of Energy Jennifer M. Granholm. “This new program reflects the Biden Administration's commitment to improving energy reliability and connecting our nation’s rural communities to resilient energy infrastructure and the transformative benefits that come with it.” 

Nearly one in six Americans live in a remote or rural community. Utilities in these communities face considerable obstacles, including difficulty recruiting top cybersecurity talent, inadequate infrastructure, as the aging U.S. power grid struggles to support new technologies, and lack of financial resources needed to modernize and harden their systems. 

The RMUC Program will provide financial and technical assistance to help rural, municipal, and small investor-owned electric utilities improve operational capabilities, increase access to cybersecurity services, deploy advanced cyber security technologies, and increase participation of eligible entities in cybersecurity threat information sharing programs and coordination with federal partners initiatives. Priority will be given to eligible utilities that have limited cybersecurity resources, are critical to the reliability of the bulk power system, or those that support our national defense infrastructure. 

The Office of Cybersecurity, Energy Security, and Emergency Response (CESER), which advances U.S. energy security objectives, will manage the RMUC Program, providing $250 million dollars in BIL funding over five years. To help inform Program implementation, DOE is seeking input from the cybersecurity community, including eligible utilities and representatives of third parties and organizations that support or interact with these utilities. The RFI seeks input on ways to improve cybersecurity incident preparedness, response, and threat information sharing; cybersecurity workforce challenges; risks associated with technologies deployed on the electric grid; national-scale initiatives to accelerate cybersecurity improvements in these utilities; opportunities to strengthen partnerships and energy security support efforts; the selection criteria and application process for funding awards; and more. 

 

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Why electric buses haven't taken over the world—yet

Electric Buses reduce urban emissions and noise, but require charging infrastructure, grid upgrades, and depot redesigns; they offer lower operating costs and simpler maintenance, with range limits influencing routes, schedules, and on-route fast charging.

 

Key Points

Battery-electric buses cut emissions and noise while lowering operating and maintenance costs for transit agencies.

✅ Lower emissions, noise; improved rider experience

✅ Requires charging, grid upgrades, depot redesigns

✅ Range limits affect routes; on-route fast charging helps

 

In lots of ways, the electric bus feels like a technology whose time has come. Transportation is responsible for about a quarter of global emissions, and those emissions are growing faster than in any other sector. While buses are just a small slice of the worldwide vehicle fleet, they have an outsize effect on the environment. That’s partly because they’re so dirty—one Bogotá bus fleet made up just 5 percent of the city’s total vehicles, but a quarter of its CO2, 40 percent of nitrogen oxide, and more than half of all its particulate matter vehicle emissions. And because buses operate exactly where the people are concentrated, we feel the effects that much more acutely.

Enter the electric bus. Depending on the “cleanliness” of the electric grid into which they’re plugged, e-buses are much better for the environment. They’re also just straight up nicer to be around: less vibration, less noise, zero exhaust. Plus, in the long term, e-buses have lower operating costs, and related efforts like US school bus electrification are gathering pace too.

So it makes sense that global e-bus sales increased by 32 percent last year, according to a report from Bloomberg New Energy Finance, as the age of electric cars accelerates across markets worldwide. “You look across the electrification of cars, trucks—it’s buses that are leading this revolution,” says David Warren, the director of sustainable transportation at bus manufacturer New Flyer.

Today, about 17 percent of the world’s buses are electric—425,000 in total. But 99 percent of them are in China, where a national mandate promotes all sorts of electric vehicles. In North America, a few cities have bought a few electric buses, or at least run limited pilots, to test the concept out, and early deployments like Edmonton's first e-bus offer useful lessons as systems ramp up. California has even mandated that by 2029 all buses purchased by its mass transit agencies be zero-emission.

But given all the benefits of e-buses, why aren’t there more? And why aren’t they everywhere?

“We want to be responsive, we want to be innovative, we want to pilot new technologies and we’re committed to doing so as an agency,” says Becky Collins, the manager of corporate initiative at the Southeastern Pennsylvania Transportation Authority, which is currently on its second e-bus pilot program. “But if the diesel bus was a first-generation car phone, we’re verging on smartphone territory right now. It’s not as simple as just flipping a switch.”

One reason is trepidation about the actual electric vehicle. Some of the major bus manufacturers are still getting over their skis, production-wise. During early tests in places like Belo Horizonte, Brazil, e-buses had trouble getting over steep hills with full passenger loads. Albuquerque, New Mexico, canceled a 15-bus deal with the Chinese manufacturer BYD after finding equipment problems during testing. (The city also sued). Today’s buses get around 225 miles per charge, depending on topography and weather conditions, which means they have to re-up about once a day on a shorter route in a dense city. That’s an issue in a lot of places.

If you want to buy an electric bus, you need to buy into an entire electric bus system. The vehicle is just the start.

The number one thing people seem to forget about electric buses is that they need to get charged, and emerging projects such as a bus depot charging hub illustrate how infrastructure can scale. “We talk to many different organizations that get so fixated on the vehicles,” says Camron Gorguinpour, the global senior manager for the electric vehicles at the World Resources Institute, a research organization, which last month released twin reports on electric bus adoption. “The actual charging stations get lost in the mix.”

But charging stations are expensive—about $50,000 for your standard depot-based one. On-route charging stations, an appealing option for longer bus routes, can be two or three times that. And that’s not even counting construction costs. Or the cost of new land: In densely packed urban centers, movements inside bus depots can be tightly orchestrated to accommodate parking and fueling. New electric bus infrastructure means rethinking limited space, and operators can look to Toronto's TTC e-bus fleet for practical lessons on depot design. And it’s a particular pain when agencies are transitioning between diesel and electric buses. “The big issue is just maintaining two sets of fueling infrastructure,” says Hanjiro Ambrose, a doctoral student at UC Davis who studies transportation technology and policy.

“We talk to many different organizations that get so fixated on the vehicles. The actual charging stations get lost in the mix as the American EV boom gathers pace across sectors.”

Then agencies also have to get the actual electricity to their charging stations. This involves lengthy conversations with utilities about grid upgrades, rethinking how systems are wired, occasionally building new substations, and, sometimes, cutting deals on electric output, since electric truck fleets will also strain power systems in parallel. Because an entirely electrified bus fleet? It’s a lot to charge. Warren, the New Flyer executive, estimates it could take 150 megawatt-hours of electricity to keep a 300-bus depot charged up throughout the day. Your typical American household, by contrast, consumes 7 percent of that—per year. “That’s a lot of work by the utility company,” says Warren.

For cities outside of China—many of them still testing out electric buses and figuring out how they fit into their larger fleets—learning about what it takes to run one is part of the process. This, of course, takes money. It also takes time. Optimists say e-buses are more of a question of when than if. Bloomberg New Energy Finance projects that just under 60 percent of all fleet buses will be electric by 2040, compared to under 40 percent of commercial vans and 30 percent of passenger vehicles.

Which means, of course, that the work has just started. “With new technology, it always feels great when it shows up,” says Ambrose. “You really hope that first mile is beautiful, because the shine will come off. That’s always true.”

 

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