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U.S. 100% Tariff on Chinese EVs aims to protect domestic manufacturing, counter subsidies, and reshape the EV market, but could raise prices, disrupt supply chains, invite retaliation, and complicate climate policy and trade relations.

Key Points

A 100% import duty on Chinese EVs to boost U.S. manufacturing, counter subsidies, and address supply chain risks.

✅ Protects domestic EV manufacturing and jobs

✅ Counters alleged subsidies and IP concerns

✅ May raise prices, limit choice, trigger retaliation

President Joe Biden's administration recently made headlines with its announcement of a 100% tariff on Chinese electric vehicles (EVs), marking a significant escalation in trade tensions between the two economic powerhouses. The decision, framed as a measure to protect American industries and promote domestic manufacturing, has sparked debates over its potential impact on the EV market, global supply chains, and bilateral relations between the United States and China.

The imposition of a 100% tariff on Chinese-made EVs reflects the Biden administration's broader efforts to revitalize the American automotive industry and promote the transition to electric vehicles as part of its climate agenda and tighter EPA emissions rules that could accelerate adoption. By imposing tariffs on imported EVs, particularly those from China, the administration aims to incentivize domestic production and create jobs in the growing green economy, and to secure critical EV metals through allied supply efforts. Additionally, the tariff is seen as a response to concerns about unfair trade practices, including intellectual property theft and market distortions, allegedly perpetuated by Chinese companies.

However, the announcement has triggered a range of reactions from various stakeholders, with both proponents and critics offering contrasting perspectives on the potential consequences of such a policy. Proponents argue that the tariff will help level the playing field for American automakers, who face stiff competition from Chinese companies benefiting from government subsidies and lower production costs. They contend that promoting domestic manufacturing of EVs will not only create high-quality jobs but also enhance national security by reducing dependence on foreign supply chains at a time when an EV inflection point is approaching.

On the other hand, critics warn that the 100% tariff on Chinese-made EVs could have unintended consequences, including higher prices for consumers, as seen in the UK EV prices and Brexit debate, disruptions to global supply chains, and retaliatory measures from China. Chinese EV manufacturers, such as NIO, BYD, and XPeng, have been gaining momentum in the global market, offering competitive products at relatively affordable prices. The tariff could limit consumer choice at a time when U.S. EV market share dipped in Q1 2024, potentially slowing the adoption of electric vehicles and undermining efforts to combat climate change and reduce greenhouse gas emissions.

Moreover, the tariff announcement comes at a sensitive time for U.S.-China relations, which have been strained by various issues, including trade disputes, human rights concerns, and geopolitical tensions. The imposition of tariffs on Chinese-made EVs could further exacerbate bilateral tensions, potentially leading to retaliatory measures from China and escalating trade frictions. As the world's two largest economies, the United States and China have significant economic interdependencies, and any escalation in trade tensions could have far-reaching implications for global trade and economic stability.

In response to the Biden administration's announcement, Chinese officials have expressed concerns and called for dialogue to resolve trade disputes through negotiation and mutual cooperation. China has also emphasized its commitment to fair trade practices and compliance with international rules and regulations governing trade.

Moving forward, the Biden administration faces the challenge of balancing its domestic priorities with the need to maintain constructive engagement with China and other trading partners, even as EV charging networks scale under its electrification push. While promoting domestic manufacturing and protecting American industries are legitimate policy goals, achieving them without disrupting global trade and undermining diplomatic relations requires careful deliberation and strategic foresight.

In conclusion, President Biden's announcement of a 100% tariff on Chinese-made electric vehicles reflects his administration's commitment to revitalizing American industries and promoting domestic manufacturing. However, the decision has raised concerns about its potential impact on the EV market, global supply chains, and U.S.-China relations. As policymakers navigate these complexities, finding a balance between protecting domestic interests and fostering international cooperation will be crucial to achieving sustainable economic growth and addressing global challenges such as climate change.

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COVID-19 Electricity Demand Shift flattens New York's load curve, lowers peak demand, and reduces wholesale prices as NYISO operators balance the grid amid stay-at-home orders, rising residential usage, cheap natural gas, and constrained renewables.

Key Points

An industry-wide change in load patterns: flatter peaks, lower prices, and altered grid operations during lockdowns.

✅ NYISO operators sequestered to maintain reliable grid control

✅ Morning and evening peaks flatten; residential use rises mid-day

✅ Wholesale prices drop amid cheap natural gas and reduced demand

At his post 150 miles up the Hudson, Jon Sawyer watches as a stay-at-home New York City stirs itself with each new dawn in this era of covid-19.

He’s a manager in the system that dispatches electricity throughout New York state, keeping homes lit and hospitals functioning, work that is so essential that he, along with 36 colleagues, has been sequestered away from home and family for going on four weeks now, to avoid the disease, a step also considered for Ontario power staff during COVID-19 measures.

The hour between 7 a.m. and 8 a.m. once saw the city bounding to life. A sharp spike would erupt on the system’s computer screens. Not now. The disease is changing the rhythms of the city, and, as this U.S. grid explainer notes, you can see it in the flows of electricity.

Kids are not going to school, restaurants are not making breakfast for commuters, offices are not turning on the lights, and thousands if not millions of people are staying in bed later, putting off the morning cup of coffee and a warm shower.

Electricity demand in a city that has been shut down is running 18 percent lower at this weekday morning hour than on a typical spring morning, according to the New York Independent System Operator, Sawyer’s employer. As the sun rises in the sky, usage picks up, but it’s a slower, flatter curve.

Though the picture is starkest in New York, it’s happening across the country. Daytime electricity demand is falling, even accounting for the mild spring weather, and early-morning spikes are deflating, with similar patterns in Ontario electricity demand as people stay home. The wholesale price of electricity is falling, too, driven by both reduced demand and the historically low cost of natural gas.

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Falling demand will hit the companies that run the “merchant generators” hardest. These are the privately owned power plants that sell electricity to the utilities and account for about 57 percent of electricity generation nationwide.

Closed businesses have resulted in falling demand. Residential usage is up — about 15 percent among customers of Con Edison, which serves New York City and Westchester County — as workers and schoolchildren stay home, while in Canada Hydro One peak rates remain unchanged for self-isolating customers, but it’s spread out through the day. Home use does not compensate for locked-up restaurants, offices and factories. Or for the subway system, which on a pre-covid-19 day used as much electricity as Buffalo.

Hospitals are a different story: They consume twice as much energy per square foot as hotels, and lead schools and office buildings by an even greater margin. And their work couldn’t be more vital as they confront the novel coronavirus.

Knowing that, Sawyer said, puts the ordinary routines of his job, which rely on utility disaster planning, the things about it he usually takes for granted, into perspective.

“Keeping the lights on: It comes to the forefront a little more when you understand, ‘I’m going to be sequestered on site to do this job, it’s so critical,’” he said, speaking by phone from his office in East Greenbush, N.Y., where he has been living in a trailer, away from his family, since March 23.

As coronavirus hospitalizations in New York began to peak in April, emergency medicine physician Howard Greller recorded his reflections. (Whitney Leaming/The Washington Post)
Sawyer, 53, is a former submariner in the U.S. Navy, so he has experience when it comes to being isolated from friends and family for long periods. Many of his colleagues in isolation, who all volunteered for the duty, also are military veterans, and they’re familiar with the drill. Life in East Greenbush has advantages over a submarine — you can go outside and throw a football or Frisbee or walk or run the trail on the company campus reserved for the operators, and every day you can use FaceTime or Skype to talk with your family.

His wife understood, he said, though “of course it’s a sacrifice.” But she grasped the obligation he felt to be there with his colleagues and keep the power on.

“It’s a new world, it’s definitely an adjustment,” said Rich Dewey, the system’s CEO, noting that America’s electricity is safe for now. “But we’re not letting a little virus slow us down.”

There are 31 operators, two managers and four cooks and cleaners all divided between East Greenbush, which handles daytime traffic, and another installation just west of Albany in Guilderland, which works at night. The operators work 12-hour shifts every other day.

Computers recalibrate generation, statewide, to equal demand, digesting tens of thousands of data points, every six seconds. Other computers forecast the needs looking ahead 2½ hours. The operators monitor the computers and handle the “contingencies” that inevitably arise.

They dispatch the electricity along transmission lines ranging from 115,000 volts to 765,000 volts, much of it going from plants and dams in western and northern New York downstate toward the city and Long Island.

They always focus on: “What is the next worse thing that can happen, and how can we respond to that?” Sawyer said.

It’s the same shift and the same work they’ve always done, and that gives this moment an oddly normal feeling, he said. “There’s a routine to it that some of the people working at home now don’t have.”

Medical workers check in with them daily to monitor their physical health and mental condition. So far, there have been no dropouts.

Cheap oil doesn’t mean much when no one’s going anywhere

Statewide, the daily demand for electricity has fallen nearly 9 percent.

The distribution system in New England is looking at a 3 to 5 percent decline; the Mid-Atlantic states at 5 to 7 percent; Washington state at 10 percent; and California by nearly as much. In Texas, demand is down 2 percent, “but even there you’re still seeing drops in the early-morning hours,” said Travis Whalen, a utility analyst with S&P Global Platts.

In the huge operating system that embraces much of the middle of the country, usage has fallen more than 8 percent — and the slow morning surge doesn’t peak until noon.

In New York, there used to be a smaller evening spike, too (though starting from a higher load level than the one in the morning). But that’s almost impossible to see anymore because everyone isn’t coming home and turning on the lights and TV and maybe throwing a load in the laundry all at once. No one goes out, either, and the lights aren’t so bright on Broadway.

California, in contrast, had a bigger spike in the evening than in the morning before covid-19 hit; maybe some of that had to do with the large number of early risers spreading out the morning demand and highlighting electricity inequality that shapes access. Both spikes have flattened but are still detectable, and the evening rise is still the larger.

Only at midnight, in New York and elsewhere, does the load resemble what it used to look like.

The wholesale price of electricity has fallen about 40 percent in the past month, according to a study by S&P Global Platts. In California it’s down about 30 percent. In a section covered by the Southwest Power Pool, the price is down 40 percent from a year ago, and in Indiana, electricity sold to utilities is cheaper than it has been in six years.

Some of the merchant generators “are going to be facing some rather large losses,” said Manan Ahuja, also an analyst with S&P Global Platts. With gas so cheap, coal has built up until stockpiles average a 90-day supply, which is unusually large. Ahuja said he believes renewable generators of electricity will be especially vulnerable because as demand slackens it’s easier for operators to fine-tune the output from traditional power plants.

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As Dewey put it, speaking of solar and wind generators, “You can dispatch them down but you can’t dispatch them up. You can’t make the wind blow or the sun shine.”

Jason Tundermann, a vice president at Level 10 Energy, which promotes renewables, argued that before the morning and evening spikes flattened they were particularly profitable for fossil fuel plants. He suggested electricity demand will certainly pick up again. But an issue for renewable projects under development is that supply chain disruptions could cause them to miss tax credit deadlines.

With demand “on pause,” as Sawyer put it, and consumption more evenly spread through the day, the control room operators in East Greenbush have a somewhat different set of challenges. The main one, he said, is to be sure not to let those high-voltage transmission lines overload. Nuclear power shows up as a steady constant on the real-time dashboard; hydropower is much more up and down, depending on the capacity of transmission lines from the far northern and western parts of the state.

Some human habits are more reliably fixed. The wastewater that moves through New York City’s sewers — at a considerably slower pace than the electricity in the nearby wires — hasn’t shown any change in rhythm since the coronavirus struck, according to Edward Timbers, a spokesman for the city’s Department of Environmental Protection. People may be sleeping a little later, but the “big flush” still arrives at the wastewater treatment plants, about three hours or so downstream from the typical home or apartment, every day in the late morning, just as it always has.
 

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Eviation Collapse underscores electric aviation headwinds, from Alice aircraft battery limits to FAA/EASA certification hurdles, funding shortfalls, and leadership instability, reshaping sustainability roadmaps for regional airliners and future zero-emission flight.

Key Points

Eviation Collapse is the 2025 shutdown of Eviation Aircraft, revealing battery, certification, and funding hurdles.

✅ Battery energy density limits curtailed Alice's range

✅ FAA/EASA certification timelines delayed commercialization

✅ Funding gaps and leadership churn undermined execution

The electric aviation industry was poised to revolutionize the skies through an aviation revolution with startups like Eviation Aircraft leading the charge to bring environmentally friendly, cost-efficient electric airplanes into commercial use. However, in a shocking turn of events, Eviation has faced an abrupt collapse, signaling challenges that may impact the future of electric flight.

Eviation’s Vision and Early Promise

Founded in 2015, Eviation was an ambitious electric airplane startup with the goal of changing the way the world thinks about aviation. The company’s flagship product, the Alice aircraft, was designed to be an all-electric regional airliner capable of carrying up to 9 passengers. With a focus on sustainability, reduced operating costs, and a quieter flight experience, Alice attracted attention as one of the most promising electric aircraft in development.

Eviation’s aircraft was aimed at replacing small, inefficient, and environmentally damaging regional aircraft, reducing emissions in the aviation industry. The startup’s vision was bold: to create an airplane that could offer all the benefits of electric power – lower operating costs, less noise, and a smaller environmental footprint. Their goal was not only to attract major airlines but also to pave the way for a more sustainable future in aviation.

The company’s early success was driven by substantial investments and partnerships. It garnered attention from aviation giants and venture capitalists alike, drawing support for its innovative technology. In fact, in 2019, Eviation secured a deal with the Israeli airline, El Al, for several aircraft, a deal that seemed to promise a bright future for the company.

Challenges in the Electric Aviation Industry

Despite its early successes and strong backing, Eviation faced considerable challenges that eventually contributed to its downfall. The electric aviation sector, as promising as it seemed, has always been riddled with hurdles – from battery technology to regulatory approvals, and compounded by Europe’s EV slump that dampened clean-transport sentiment, the path to producing commercially viable electric airplanes has proven more difficult than initially anticipated.

The first major issue Eviation encountered was the slow development of battery technology. While electric car companies like Tesla were able to scale their operations quickly during the electric vehicle boom due to advancements in battery efficiency, aviation technology faced a more significant obstacle. The energy density required for a plane to fly long distances with sufficient payload was far greater than what existing battery technology could offer. This limitation severely impacted the range of the Alice aircraft, preventing it from meeting the expectations set by its creators.

Another challenge was the lengthy regulatory approval process for electric aircraft. Aviation is one of the most regulated industries in the world, and getting a new aircraft certified for flight takes time and rigorous testing. Although Eviation’s Alice was touted as an innovative leap in aviation technology, the company struggled to navigate the complex process of meeting the safety and operational standards required by aviation authorities, such as the FAA and EASA.

Financial Difficulties and Leadership Changes

As challenges mounted, Eviation’s financial situation became increasingly precarious. The company struggled to secure additional funding to continue its development and scale operations. Investors, once eager to back the promising startup, grew wary as timelines stretched and costs climbed, amid a U.S. EV market share dip in early 2024, tempering enthusiasm. With the electric aviation market still in its early stages, Eviation faced stiff competition from more established players, including large aircraft manufacturers like Boeing and Airbus, who also began to invest heavily in electric and hybrid-electric aircraft technologies.

Leadership instability also played a role in Eviation’s collapse. The company went through several executive changes over a short period, and management’s inability to solidify a clear vision for the future raised concerns among stakeholders. The lack of consistent leadership hindered the company’s ability to make decisions quickly and efficiently, further exacerbating its financial challenges.

The Sudden Collapse

In 2025, Eviation made the difficult decision to shut down its operations. The company announced the closure after failing to secure enough funding to continue its development and meet its ambitious production goals. The sudden collapse of Eviation sent shockwaves through the electric aviation sector, where many had placed their hopes on the startup’s innovative approach to electric flight.

The failure of Eviation has left many questioning the future of electric aviation. While the industry is still in its infancy, Eviation’s downfall serves as a cautionary tale about the challenges of bringing cutting-edge technology to the skies. The ambitious vision of a sustainable, electric future in aviation may still be achievable, but the path to success will require overcoming significant technological, regulatory, and financial obstacles.

What’s Next for Electric Aviation?

Despite Eviation’s collapse, the electric aviation sector is far from dead. Other companies, such as Joby Aviation, Vertical Aerospace, and Ampaire, are continuing to develop electric and hybrid-electric aircraft, building on milestones like Canada’s first commercial electric flight that signal ongoing demand for green alternatives to traditional aviation.

Moreover, major aircraft manufacturers are doubling down on their own electric aircraft projects. Boeing, for example, has launched several initiatives aimed at reducing carbon emissions in aviation, while Harbour Air’s point-to-point e-seaplane flight showcases near-term regional progress, and Airbus is testing a hybrid-electric airliner prototype. The collapse of Eviation may slow down progress, but it is unlikely to derail the broader movement toward electric flight entirely.

The lessons learned from Eviation’s failure will undoubtedly inform the future of the electric aviation sector. Innovation, perseverance, and a steady stream of investment will be critical for the success of future electric aircraft startups, as exemplified by Harbour Air’s research-driven electric aircraft efforts that highlight the value of sustained R&D. While the dream of electric planes may have suffered a setback, the long-term vision of cleaner, more sustainable aviation is still alive.

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Baima Hydropower Station advances China renewable energy on the Wujiang River, a Yangtze tributary in Chongqing; a 525 MW cascade project approved by NDRC, delivering 1.76 billion kWh and improving river shipping.

Key Points

An NDRC-approved 525 MW project on Chongqing's Wujiang River, producing 1.76 billion kWh and improving navigation.

✅ 10.2 billion yuan investment; final cascade plant on Wujiang in Chongqing

✅ Expected output: 1.76 billion kWh; capacity 525 MW; NDRC approval

✅ Improves river shipping; relocation of 5,000 residents in Wulong

China plans to build a 525-MW hydropower station on the Wujiang River, a tributary of the Yangtze River, in Southwest China's Chongqing municipality, aligning with projects like the Lawa hydropower station elsewhere in the Yangtze basin.

The Baima project, the last of a cascade of hydropower stations on the section of the Wujiang River in Chongqing, has gotten the green light from the National Development and Reform Commission, China's state planning agency, even as some independent power projects elsewhere face uncertainty, such as the Siwash Creek project in British Columbia, the Chongqing Municipal Commission of Development and Reform said Monday.

The project, in Baima township of Wulong district, is expected to involve an investment of 10.2 billion yuan ($1.6 billion), as China explores compressed air generation to bolster grid flexibility, it said.

#google#

With a power-generating capacity of 525 MW, it is expected to generate 1.76 billion kwh of electricity a year, supporting efforts to reduce coal power production nationwide, and help improve the shipping service along the Wujiang River.

More than 5,000 local residents will be relocated to make room for the project, which forms part of a broader energy mix alongside advances in nuclear energy in China.

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US Electricity Demand Outlook examines EIA forecasts, GDP decoupling, energy efficiency, electrification, electric vehicles, grid load growth, and weather variability to frame long term demand trends and utility planning scenarios.

Key Points

An analysis of EIA projections showing demand decoupling from GDP, with EV adoption and efficiency shaping future grid load.

✅ EIA lowers load growth; demand decouples from GDP.

✅ Efficiency and sector shifts depress kWh sales.

✅ EV adoption could revive load and capacity needs.

Electricity producers and distributors are in an unusual business. The product they provide is available to all customers instantaneously, literally at the flip of a switch. But the large amount of equipment, both hardware and software to do this takes years to design, site and install.

From a long range planning perspective, just as important as a good engineering design is an accurate sales projections. For the US electric utility industry the most authoritative electricity demand projec-tions come from the Department of Energy’s Energy Information Administration (EIA). EIA's compre-hensive reports combine econometric analysis with judgment calls on social and economic trends like the adoption rate of new technologies that could affect future electricity demand, things like LED light-ing and battery powered cars, and the rise of renewables overtaking coal in generation.

Before the Great Recession almost a decade ago, the EIA projected annual growth in US electricity production at roughly 1.5 percent per year. After the Great Recession began, the EIA lowered its projections of US electricity consumption growth to below 1 percent. Actual growth has been closer to zero. While the EIA did not antici-pate the last recession or its aftermath, we cannot fault them on that.

After the event, though, the EIA also trimmed its estimates of economic growth. For the 2015-2030 period it now predicts 2.1 percent economic and 0.3 percent electricity growth, down from previously projections of 2.7 percent and 1.3 percent respectively. (See Figures 1 and 2.)

Table 1. EIA electric generation projections by year of forecast (kWh billions)

Table 2. EIA forecast of GDP by year of forecast (billion 2009 $)

Back in 2007, the EIA figured that every one percent increase in economic activity required a 0.48 percent in-crease in electric generation to support it. By 2017, the EIA calculated that a 1 percent growth in economic activity now only required a 0.14 percent increase in electric output. What accounts for such a downgrade or disconnect between electricity usage and economic growth? And what factors might turn the numbers 
around?

First, the US economy lost energy intensive heavy industry like smelting, steel mills and refineries; patterns in China's electricity sector highlight how industrial shifts can reshape power demand. A more service oriented economy (think health care) relies more heavily on the movement of data or information and uses far less power than a manufacturing-oriented economy.

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Second, internet shopping has hurt so-called "brick and mortar" retailers. Despite the departure of heavy industry, in years past a burgeoning US commercial sector increased its demand and usage of electricity to offset the industrial decline. But not anymore. Energy efficiency measures as well as per-haps greater concern about global warming and greenhouse gas emissions and have cut into electricity sales. “Do more with less” has the right ring to it.

But there may be other components to the ongoing decline in electricity usage. Academic studies show that electricity usage seems to increase with income along an S curve, and flattens out after a certain income level. That is, if you earn $1 billion per year you do not (or cannot) use ten times a much electricity as someone earning only $100 million.

But people at typical, middle income levels increase or decrease electricity usage when incomes rise or fall. The squeeze on middle income families was discussed often in the late presidential campaign. In recent decades an increasing percentage of income has gone to a small percentage of the population at the top of the income scale. This trend probably accounts for some weakness in residential sales. This suggests that government policy addressing income inequality would also boost electricity sales.

Population growth affects demand for electricity as well as the economy as a whole. The EIA has made few changes in its projections, showing 0.7 percent per year population growth in 2015- 2030 in both the 2007 and 2017 forecasts. Recent studies, however, have shown a drop in the birth rate to record lows. More troubling, from a national health perspective is that the average age of death may have stopped rising. Those two factors point to lower population growth, especially if the government also restricts immi-gration. Thus, the US may be approaching a period of rather modest population growth.

All of the above factors point to minimal sales growth for electricity producers in the US--perhaps even lower than the seemingly conservative EIA estimates. But the cloud on the horizon has a silver lining in the shape of an electric car. Both the United Kingdom and France have set dates to end of production of automobiles with internal combustion engines. Several European car makers have declared that 20 percent of their output will be electric vehicles by the early 2020s. If we adopt automobiles powered by electricity and not gasoline or diesel, electricity sales would increase by one third. For the power indus-try, electric vehicles represent the next big thing.

We don’t pretend to know how electric car sales will progress. But assume vehicle turnover rates re-main at the current 7 percent per year and electric cars account for 5 percent of sales in the first five years (as op-posed to 1 percent now), 20 percent in the next five years and 50 percent in the third five year period. Wildly optimistic assumptions? Maybe. By 2030, electric cars would constitute 28 percent of the vehicle fleet. They would add about 10 percent to kilowatt hour sales by that date, assuming that battery efficiencies do not improved by then. Those added sales would require increased electric generation output, with low-emissions sources expected to cover almost all the growth globally. They would also raise long term growth rates for 2015-2030 from the present 0.3 percent to 1.0 percent. The slow upturn in demand should give the electric companies time to gear up so to speak.

In the meantime, weather will continue to play a big role in electricity consumption. Record heat-induced demand peaks are being set here in the US even as surging global demand puts power systems under strain worldwide.

Can we discern a pattern in weather conditions 15 years out? Maybe we can, but that is one topic we don’t expect a government agency to tackle in public right now. Meantime, weather will affect sales more than anything else and we cannot predict the weather. Or can we?

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ESCC COVID-19 Resource Guide outlines control center continuity, sequestration, social distancing, remote operations, testing priorities, mutual assistance, supply chain risk, and PPE protocols to sustain grid reliability and plant operations during the COVID-19 pandemic.

Key Points

An industry guide to COVID-19 mitigation for the power sector covering control centers, testing, PPE, and mutual aid.

✅ Control center continuity: segregation, remote ops, reserve shifts

✅ Sequestration triggers, testing priorities, and PPE protocols

✅ Mutual assistance, supply chain risk, and workforce planning

The latest version of the Electricity Subsector Coordinating Council’s (ESCC’s) resource guide to assess and mitigate COVID-19 suggests the U.S. power sector continues to grapple with key concerns involving control center continuity, power plant continuity, access to restricted and quarantined areas, mutual assistance, and supply chain challenges, alongside urban demand shifts seen in Ottawa’s electricity demand during closures.

In its fifth and sixth versions of the “ESCC Resource Guide—Assessing and Mitigating the Novel Coronavirus (COVID-19),” released on April 16 and April 20, respectively, the ESCC expanded its guidance as it relates to social distancing and sequestration within tight power sector environments like control centers, crucial mitigation strategies that are designed to avoid attrition of essential workers.

The CEO-led power sector group that serves as a liaison with the federal government during emergencies introduced the guide on March 23, and it provides periodic updates  sourced from “tiger teams,” which are made up of representatives from investor-owned electric companies, public power utilities, electric cooperatives, independent power producers (IPPs), and other stakeholders. Collating regulatory updates and emerging resources, it serves as a general shareable blueprint for generators,  transmission and distribution (T&D) facilities, reliability coordinators, and balancing authorities across the nation on issues the sector is facing as the COVID-19 pandemic endures.

Controlling Spread at Control Centers
While control centers are typically well-isolated, physically secure, and may be conducive to on-site sequestration, the guide is emphatic that staff at these facilities are typically limited and they need long lead times to be trained to properly use the information technology (IT) and operational technology (OT) tools to keep control centers functioning and maintain grid visibility. Control room operators generally include: reliability engineers, dispatchers, area controllers, and their shift supervisors. Staff that directly support these function, also considered critical, consist of employees who maintain and secure the functionality of the IT and OT tools used by the control room operators.

In its latest update, the ESCC notes that many entities took “proactive steps to isolate their control center facilities from external visitors and non-essential employees early in the pandemic, leveraging the presence of back-up control centers, self-quarantining of employees, and multiple shifts to maximize social distancing.” To ensure all levels of logistical and operational challenges posed by the pandemic are addressed, it envisions several scenarios ranging from mild contagion—where a single operator is affected at one of two control center sites to the compromise of both sites.

Previous versions of the guide have set out universal mitigation strategies—such as clear symptom reporting, cleaning, and travel guidance. To ensure continuity even in the most dire of circumstances, for example, it recommends segregating shifts, and even sequestering a “complete healthy shift” as a “reserve” for times when minimum staffing levels cannot be met. It also encourages companies to develop a backup staff of retirees, supervisors, managers, and engineers that could backfill staffing needs.

Meanwhile, though social distancing has always been a universal mitigation strategy, the ESCC last week detailed what social distancing at a control room could look like. It says, for example, that entities should consider if personnel can do their jobs in spaces adjacent to the existing control room; moving workstations to allow at least six feet of space between employees; or designating workstations for individual operators. The guide also suggests remote operations outside of a single control room as an option, and some markets are exploring virtual power plant models in the UK to support flexibility, though it underscores that not all control center operations can be performed remotely, and remote operations increase the potential for security vulnerabilities. “The NERC [North American Electric Reliability Corp.] Reliability Standards address requirements for BES [bulk electric system] control centers and security controls for remote access of systems, applications, or data,” the resource guide notes.

Sequestration—Highly Effective but Difficult
Significantly, the new update also clarifies circumstances that could “trigger” sequestration—or keeping mission-essential workers at facilities. Sequestration, it notes, “is likely to be the most effective means of reducing risk to critical control center employees during a pandemic, but it is also the most resource- and cost-intensive option to implement.”

It is unclear exactly how many power sector workers are currently being sequestered at facilities. According to the  American Public Power Association (APPA), as of last week, the New York Power Authority was sequestering 82 power plant control room and transmission control operator, amid New York City’s shifting electric rhythms during COVID-19; the Sacramento Municipal Utility District (SMUD) in California had begun sequestering critical employees; and the Electric & Gas Utility at the City of Tallahassee had 44 workers being rotated in and out of sequestration. Another 37 workers from the New York ISO were already being sequestered or housed onsite as of April 9. PJM began sequestering a team of operators on April 11, and National Grid was sequestering 200 employees as of April 12. 

Decisions to trigger sequestration at T&D and other grid monitoring facilities are typically driven by entities’ risk assessment, ESCC noted. Considerations may involve: 

The number of people showing symptoms or testing positive as a percentage of the population in a county or municipality where the control center is sited. One organization, for example, is considering a lower threshold of 10% community infection as a trigger of “officer-level decision” to determine whether to sequester. A higher threshold of 20% “mandates a move to sequestration,” ESCC said.
The number of essential workers showing symptoms or having tested positive. “Acceptable risk should be based on the minimum staffing requirements of the control center and should include the availability of a reserve shift for critical position backfills. For example, shift supervisors are commonly certified in all positions in the control center, and the unavailability of more than one-third of a single organization’s shift supervisors could compromise operations,” it said.
The rate of infection spread across a geographic region. In the April 20 version, the guide removes specific mention that cases are doubling “every 3–5 days or more frequently in some areas.” It now says:  “Considering the rapid spread of COVID-19, special care should be taken to identify the point at which control center personnel are more likely than not to come into contact with an infected individual during their off-shift hours.”
Generator Sequestration Measures Vary
Generators, meanwhile, have taken different approaches to sequester generation operators. Some have reacted to statewide outbreaks, others to low reserves, and others still, as with one IPP, to control exposure to smaller staffs, which cannot afford attrition. The IPP, for example, decided sequestration was necessary because it “did not want to wait for confirmed cases in the workforce.” That company sequestered all its control room operators, outside operators, and instrumentation and control technicians.

The ESCC resource guide says workers are being sequestered in several ways. On-site, these could range from housing workers in two separate areas, for example, or in trailers brought in. Off-site, workers may be housed in hotel rooms, which the guide notes, “are plentiful.”

Location makes a difference, it said: “Onsite requires more logistical co-ordination for accommodations, food, room sanitization, linens, and entertainment.”  To accommodate sequestered workers, generators have to consider off-site food and laundry services (left at gates for pick-up)—and even extending Wi-Fi for personal use. Generators are learning from each other about all aspects of sequestration—including how to pay sequestered workers. It suggests sequestered workers should receive pay for all hours inside the plant, including straight time for regularly scheduled hours and time-and-a-half for all other hours. To maintain non-sequestered employees, who are following stay-at-home protocols, pay should remain regularly scheduled, it says.

Testing Remains a Formidable Hurdle
Though decisions to sequester differ among different power entities, they appear commonly complicated by one prominent issue: a dearth of testing.

At the center of a scuffle between the federal and state governments of late, the number of tests has not kept pace with the severity of the pandemic, and while President Trump has for some weeks claimed that “Testing is a local thing,” state officials, business leaders—including from the power sector—and public health experts say that it is far short of the several hundred thousands or perhaps even millions of daily tests it might take to safely restart the economy, even as calls to keep electricity options open grow among policymakers, a three-phase approach for which the Trump administration rolled out this week. While the White House said the approach is “based on the advice of public health experts, the suggestions do not indicate a specific timeframe. Some hard-hit states have committed to keeping current restrictions in place. New York on April 16 said it would maintain a shutdown order through May 15, while California published its own guidelines and states in the Northeast, Midwest, and West Coast entered regional pacts that may involve interstate coordination on COVID-19–related policy going forward.

On Sunday, responding to a call by governors across the political spectrum that insisted the federal government should step up efforts to help states obtain vital supplies for tests, Trump said the federal government will be “using” and “preparing to use” the Defense Production Act to increase swab production.

For the power entities that are part of the ESCC, widespread testing underlies many mitigation strategies. The group’s generation owners and operating companies, which include members from the full power spectrum, have said testing is central to “successful mitigation of risk to control center continuity.”

In the updated guide, the entities recommend requesting that governmental authorities—it is unclear whether the focus should be on the federal or state governments—“direct medical facilities to prioritize testing for asymptomatic generation control room operators, operator technicians, instrument and control technicians, and the operations supervisor (treat comparable to first responders) in advance of sequestered, extended-duration shifts; and obtain state regulatory approval for corporate health services organizations to administer testing for coronavirus to essential employees, if applicable.”

The second priority, as crucial, involves asking the government to direct medical facilities to prioritize testing for control room operators before they are sequestered or go into extended-duration shifts.

Generators also want local, regional, state, and federal governments to ensure operators of generating facilities are allowed to move freely if “populace-wide quarantine/curfew or other travel restrictions” are enacted. Meanwhile,  they have also asked federal agencies and state permitting agencies to allow for non-compliance operations of generating facilities in case enough workers are not available.

Lower on its list, but still “medium priority,” is that the government should obtain authority for priority supply of sanitizing supplies and personal protective equipment (PPE) for generating facilities. They are also asking states to allow power plant employees (as opposed to crucially redirected medical personnel) to administer health questionnaires and temperature checks without Americans with Disabilities Act or other legal constraints. Newly highlighted in the update, meanwhile, is an emphasis on enough fire retardant (FR) vests and hoods and PPE, including masks and face coverings, so technicians don’t have to share them.

The worst-case scenario envisioned for generators involves a 40% workforce attrition, a nine-month pandemic, and no mutual assistance. As the update suggests, along with universal mitigation strategies, some power companies are eliminating non-essential work that would require close contact, altering assignments so work tasks are done by paired teams that do not rotate, and ensuring workers wear masks. The resource guide includes case studies and lessons learned so far, and all suggest pandemic planning was crucial to response. 

Gearing Up for Mutual Assistance—Even for Generation—During COVID-19
Meanwhile, though the guide recognizes that protecting employees is a key priority for many entities, it also lauds the crucial role mutual assistance plays in the sector’s collective response to the pandemic, even as coal and nuclear plant closures test just transition planning across regions. Mutual assistance is a long-standing power sector practice in the U.S. Last week, for example, as severe weather impacted the southern and eastern portions of the U.S., causing power outages for 1.3 million customers at the peak, the sector demonstrated the “versatility of mutual assistance processes,” bringing in additional workers and equipment from nearby utilities and contractors to assist with assessment and repair. “Crews utilized PPE and social distancing per the CDC [Centers for Disease Control and Prevention] and OSHA [Occupational Safety and Health Administration] guidelines to perform their restoration duties,” the Energy Department told POWER.

But as the ESCC’s guide points out, mutual assistance has traditionally been deployed to help restore electric service to customers, typically focused on T&D infrastructure. The COVID-19 pandemic, uniquely, “has motivated generation entities to consider the use of mutual assistance for generation plant operation” it notes. As with the model it proposes to ensure continuity of control centers, mutual aid poses key challenges, such as for task variance, knowledge of operational practice, system customization, and legal indemnification.

Among guidelines ESCC proposes for generators are to use existing employee work stoppage plans as a resource in planning for the use of personnel not currently assigned to plant operation. It urges, for example, that generators keep a list of workers with skills who can be called from corporate/tech support (such as former operators or plant engineers/managers), or retirees and other individuals who could be called upon to help operate the control room first. ESCC also recommends considering the use of third-party contractor operations to supplement plant operations.

Key to these efforts is to “Create a thorough list of experience and qualifications needed to operate a particular unit. Important details include fuel type, OEM [original equipment manufacturer] technology, DCS [distributed control system] type, environmental controls, certifications, etc,” it says. “Consider proactively sharing this information internally within your company first and then with neighboring companies”—and that includes sufficient detail from manufacturers (such as Emerson Ovation, GE Mark VI, ABB, Honeywell)—“without exposing proprietary information.” One way to control this information is to develop a mutual assistance agreement with “strategic” companies within the region or system, it says.

Of specific interest is that the ESCC also recommends that generators consider “leaving units in extended or planned maintenance outage in that state as long as possible.” That’s because, “Operators at these offline sites could be considered available for a site responding to pandemic challenges,” it says.

However, these guidelines differ by resource. Nuclear generators, for example, already have robust emergency plans that include minimum staffing requirements, and owing to regulations, mutual aid is managed by each license holder, it says. However, to provide possible relief for attrition at operating nuclear plants, the Nuclear Regulatory Commission (NRC) on March 28 outlined a streamlined process that could allow nuclear operators to obtain exemptions from work hour rules, while organizations also point to IAEA low-carbon electricity lessons for future planning.

Uncertainty of Supply Chain Endurance
As the guide stresses, operational continuity during the pandemic will require that all power entities maintain supply of inputs and physical equipment. To help entities plan ahead—by determining volumes needed and geographic location of suppliers—it lists the most important materials needed for power delivery and bulk chemicals. “Clearly, the extent and duration of this emergency will influence the importance of one supply chain component compared to another,” it says.

As Massachusetts Institute of Technology supply chain expert David Simchi-Levi noted on April 13, global supply chains have been heavily taxed by the pandemic, and manufacturing activities in the European Union and North America are still going offline. China is showing signs of slow recovery. Even in the best-case scenario, however—even if North America and Europe manage to control and reduce the pandemic—the supply chain will likely experience significant logistical capacity shortages, from transportation to warehousing. Owing to variability in timing, he suggested that companies plan to reconfigure supply chains and reposition inventory in case suppliers go out of business or face quarantine, while some industry groups urge investing in hydropower as part of resilient recovery strategies.

Also in short supply, according to ESCC, is industry-critical PPE. “While our sector recognizes that the priority is to ensure that PPE is available for workers in the healthcare sector and first responders, a reliable energy supply is required for healthcare and other sectors to deliver their critical services,” its resource guide notes. “The sector is not looking for PPE for the entire workforce. Rather, we are working to prioritize supplies for mission-essential workers – a subset of highly skilled energy workers who are unable to work remotely and who are mission-essential during this extraordinary time.”

Among critical industry PPE needs are nitrile gloves, shoe covers, Tyvek suits, goggles/glasses, hand sanitizer, dust masks, N95 respirators, antibacterial soap, and trashbags. While it provides a list of non-governmental PPE vendors and suppliers, the guide also provides several “creative” solutions. These include, for example, formulations for effective hand sanitizer; 3D printer face shield files; methods for decontaminating face piece respirators and other PPE; and instructions for homemade masks with pockets for high-efficiency particulate air (HEPA) filter inserts.

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