KEPCO investing over $7 billion in smart grid

Renewables Overtake Coal in the US, as solar, wind, and hydro expand grid share; EIA data show an energy transition accelerated by COVID-19, slashing emissions, displacing fossil fuels, and reshaping electricity generation and climate policy.

Key Points

It refers to the milestone where US renewable energy generation surpassed coal, marking a pivotal energy transition.

✅ EIA data show renewables topped coal consumption in 2019.

✅ Solar, wind, and hydro displaced aging, costly coal plants.

✅ COVID-19 demand drop accelerated the energy transition.

Solar, wind and other renewable sources have toppled coal in energy generation in the United States for the first time in over 130 years, with the coronavirus pandemic accelerating a decline in coal that has profound implications for the climate crisis.

Not since wood was the main source of American energy in the 19th century has a renewable resource been used more heavily than coal, but 2019 saw a historic reversal, building on wind and solar reaching 10% of U.S. generation in 2018, according to US government figures.

Coal consumption fell by 15%, down for the sixth year in a row, while renewables edged up by 1%, even as U.S. electricity use trended lower. This meant renewables surpassed coal for the first time since at least 1885, a year when Mark Twain published The Adventures of Huckleberry Finn and America’s first skyscraper was erected in Chicago.

Electricity generation from coal fell to its lowest level in 42 years in 2019, with the US Energy Information Administration (EIA) forecasting that renewables will eclipse coal as an electricity source this year, while a global eclipse by 2025 is also projected. On 21 May, the year hit its 100th day in which renewables have been used more heavily than coal.

“Coal is on the way out, we are seeing the end of coal,” said Dennis Wamsted, analyst at the Institute for Energy Economics and Financial Analysis. “We aren’t going to see a big resurgence in coal generation, the trend is pretty clear.”

The ongoing collapse of coal would have been nearly unthinkable a decade ago, when the fuel source accounted for nearly half of America’s generated electricity, even as a brief uptick in 2021 was anticipated. That proportion may fall to under 20% this year, with analysts predicting a further halving within the coming decade.

A rapid slump since then has not been reversed despite the efforts of the Trump administration, which has dismantled a key Barack Obama-era climate rule to reduce emissions from coal plants and eased requirements that prevent coal operations discharging mercury into the atmosphere and waste into streams.

Coal releases more planet-warming carbon dioxide than any other energy source, with scientists warning its use must be rapidly phased out to achieve net-zero emissions globally by 2050 and avoid the worst ravages of the climate crisis.

Countries including the UK and Germany are in the process of winding down their coal sectors, and in Europe renewables are increasingly crowding out gas as well, although in the US the industry still enjoys strong political support from Trump.

“It’s a big moment for the market to see renewables overtake coal,” said Ben Nelson, lead coal analyst at Moody’s. “The magnitude of intervention to aid coal has not been sufficient to fundamentally change its trajectory, which is sharply downwards.”

Nelson said he expects coal production to plummet by a quarter this year but stressed that declaring the demise of the industry is “a very tough statement to make” due to ongoing exports of coal and its use in steel-making. There are also rural communities with power purchase agreements with coal plants, meaning these contracts would have to end before coal use was halted.

The coal sector has been beset by a barrage of problems, predominantly from cheap, abundant gas that has displaced it as a go-to energy source. The Covid-19 outbreak has exacerbated this trend, even as global power demand has surged above pre-pandemic levels. With plunging electricity demand following the shutting of factories, offices and retailers, utilities have plenty of spare energy to choose from and coal is routinely the last to be picked because it is more expensive to run than gas, solar, wind or nuclear.

Many US coal plants are ageing and costly to operate, forcing hundreds of closures over the past decade. Just this year, power companies have announced plans to shutter 13 coal plants, including the large Edgewater facility outside Sheboygan, Wisconsin, the Coal Creek Station plant in North Dakota and the Four Corners generating station in New Mexico – one of America’s largest emitters of carbon dioxide.

The last coal facility left in New York state closed earlier this year.

The additional pressure of the pandemic “will likely shutter the US coal industry for good”, said Yuan-Sheng Yu, senior analyst at Lux Research. “It is becoming clear that Covid-19 will lead to a shake-up of the energy landscape and catalyze the energy transition, with investors eyeing new energy sector plays as we emerge from the pandemic.”

Climate campaigners have cheered the decline of coal but in the US the fuel is largely being replaced by gas, which burns more cleanly than coal but still emits a sizable amount of carbon dioxide and methane, a powerful greenhouse gas, in its production, whereas in the EU wind and solar overtook gas last year.

Renewables accounted for 11% of total US energy consumption last year – a share that will have to radically expand if dangerous climate change is to be avoided. Petroleum made up 37% of the total, followed by gas at 32%. Renewables marginally edged out coal, while nuclear stood at 8%.

“Getting past coal is a big first hurdle but the next round will be the gas industry,” said Wamsted. “There are emissions from gas plants and they are significant. It’s certainly not over.”
 

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Jersey Electricity Standby Charge proposes a grid-backup fee for commercial self-generators of renewable energy, with a review delaying implementation; potential tariff impacts include 10-15 percent price rises, cost recovery, and network reliability.

Key Points

A grid-backup fee for Jersey self-generating businesses to share network costs fairly and curb electricity price rises.

✅ Applies to commercial self-generation using renewables or not

✅ Excludes full exporters and pre-charge installations

✅ Aims to recover grid costs and avoid 10-15% price rises

Electricity prices could rise by ten to 15 per cent if a standby charge for some commercial customers is not implemented, the chief executive of Jersey Electricity has warned.

Jersey Electricity has proposed extending a monthly fee to commercial customers who generate their own power through renewable means but still wish to be connected to Jersey’s grid as a back-up, echoing Ontario energy storage efforts to shore up reliability.

The States recently unanimously backed a proposal lodged by Deputy Carolyn Labey to delay administering the levy until a review could be carried out, as seen in the UK grid's net-zero transformation debates influencing policy. The charge, was due to be implemented next month but will now not be introduced until May, or later if the review has not concluded.

But Chris Ambler, JE chief executive, warned that failing to implement the standby charge could lead to additional costs for customers.

Some of JE’s commercial customers have already been charged a standby fee after generating their own power through non-renewable means.

The charge does not apply to businesses which export all of their electricity back into the system as part of a buy-back scheme or those which install self-generation facilities before the charge is implemented.

Deputy Labey argued that the Island had done ‘absolutely nothing’ to support the use of renewable energies and instead were discouraging locally generated power by allowing JE to set a standby charge.

She added that she was pleased that the Council of Ministers had already starting reviewing the charges but the debate needed to go ahead to ensure the work continued after the May election.

During a States debate last month, she said: ‘It is increasingly concerning that we, as an island in the 21st century, are happy for our electricity to be provided to us by an unregulated, publicly listed for-profit company with a monopoly on energy.

‘I also think that introducing a charge on renewables at a time when the world is experiencing a revolution in renewable energies, including offshore vessel charging solutions, which are becoming increasingly economic, is something that needs to be investigated.

‘Jersey should be looking to diversify our electricity production and supply, to help protect us from price and currency fluctuations and to ensure that we, as an island, receive the best deal possible for Islanders.’

Mr Ambler said that any price increase would be dependent on the future take-up and use of renewable-energy technology in Jersey.

He said: ‘The cost impact would not be significant in the short term but in the long term it could be significant. I think that we are obliged to let our customers know that.

‘It is very difficult to assess but if we are not able to levy a fair charge, then, as electricity shortages in Canada have shown, we could see prices rise by ten to 15 per cent over time.’

Mr Ambler added that his company was in favour of the use of renewable energy, with a third of the company’s electricity being generated by hydroelectric sources, but that the costs of implementing it needed to be fairly distributed, given how big battery rule changes can affect project viability elsewhere in the market.

And he said that, while it was difficult to quantify how much could be lost if the standby charge was not implemented, it could cost the company over £10 million.

‘In 2014, we only increased our prices by one per cent,’ he said. ‘We are reviewing our prices at the moment but if we did put an increase in place it would be modest and it would not be linked to the standby charge.’

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BPA Privatization would sell the Bonneville Power Administration's transmission lines, raising FERC-regulated grid rates for ratepayers, impacting hydropower and the California-Oregon Intertie under the Trump 2018 budget proposal in the Pacific Northwest region.

Key Points

Selling Bonneville's transmission grid to private owners, raising rates and returns, shifting costs to ratepayers.

✅ Trump 2018 budget targets BPA transmission assets for sale.

✅ Higher capital costs, taxes, and profit would raise transmission rates.

✅ California-Oregon Intertie and hydropower flows face price impacts.

President Trump's 2018 budget proposal is so chock-full of noxious elements — replacing food stamps with "food boxes," drastically cutting Medicaid and Medicare, for a start — that it's unsurprising that one of its most misguided pieces has slipped under the radar.

That's the proposal to privatize the government-owned Bonneville Power Administration, which owns about three-quarters of the high-voltage electric transmission lines in a region that includes California, Washington state and Oregon, serving more than 13.5 million customers. By one authoritative estimate, any such sale would drive up the cost of transmission by 26%-44%.

The $5.2-billon price cited by the Trump administration, moreover, is nearly 20% below the actual value of the Bonneville grid — meaning that a private buyer would pocket an immediate windfall of $1.2 billion, at the expense of federal taxpayers and Bonneville customers.

Trump's plan for Portland, Ore.-based Bonneville is part of a larger proposal to sell off other government-owned electricity bodies, including the Colorado-based Western Area Power Administration and the Oklahoma-based Southwestern Power Administration. But Bonneville is by far the largest of the three, accounting for nearly 90% of the total $5.8 billion the budget anticipates collecting from the sales. The proposal is also part of the administration's

Both plans are said to be politically dead-on-arrival in Washington. But they offer a window into the thinking in the Trump White House.

"The word 'muddle' comes to mind," says Robert McCullough, a respected Portland energy consultant, referring to the justification for the privatization sale included in the Trump budget.

The White House suggests that selling the Bonneville grid would result in lower costs. But that narrative, McCullough wrote in a blistering assessment of the proposal, "displays a severe lack of understanding about the process of setting transmission rates."

McCullough's assessment is an update of a similar analysis he performed when the privatization scheme was first raised by the Trump administration last year. In that analysis issued in June, McCullough said the proposal "raises the question of why these valuable assets would be sold at a discount — and who would get the benefit of the discounted price."

The implications of a sale could be dire for Californians. Bonneville is the majority owner of the California-Oregon Intertie, an electrical transmission system that carries power, including Columbia River-generated hydropower and other clean-energy generation in British Columbia that supports the regional exchange, south to California in the summer and excess California generation to the Pacific Northwest in the winter.

But the idea has drawn fire throughout the region. When it was first broached last year, the Public Power Council, an association of utilities in the Northwest, assailed it as an apparent "transfer of value from the people of the Northwest to the U.S. Treasury," drawing parallels to Manitoba Hydro governance issues elsewhere.

The region's political leaders had especially harsh words for the idea this time around. "Oregonians raised hell last year when Trump tried to raise power bills for Pacific Northwesterners by selling off Bonneville Power, and yet his administration is back at it again," Sen. Ron Wyden (D-Ore.) said after the idea reappeared. "Our investment shouldn't be put up for sale to free up money for runaway military spending or tax cuts for billionaires." Sen. Maria Cantwell (D-Wash.) promised in a statement to work to "stop this bad idea in its tracks."

The notion of privatizing Bonneville predates the Trump administration; it was raised by Bill Clinton and again by George W. Bush, who thought the public would gain if the administration could sell its power at market rates. Both initiatives failed.

The same free-enterprise ideology underlies the Trump proposal. Privatizing the transmission lines "encourages a more efficient allocation of economic resources and mitigates unnecessary risk to taxpayers," the budget asserts. "Ownership of transmission assets is best carried out by the private sector where there are appropriate market and regulatory incentives."

But that's based on a misunderstanding of how transmission rates are set, McCullough says. Transmission is essentially a monopoly enterprise, with rates overseen by the Federal Energy Regulatory Commission based on the grid's costs, and with federal scrutiny of public utilities such as the TVA underscoring that oversight. There's very little in the way of market "incentives" involved in transmission, since no one has come forward to build a competing grid.

Those include the owners' cost of capital — which would be much higher for a private owner than a government agency, McCullough observes, as Hydro One investor uncertainty demonstrates in practice. A private owner, unlike the government-owned Bonneville, also would owe federal income taxes, which would be passed on to consumers.

Then there's the profit motive. Bonneville "currently sells and delivers its power at cost," McCullough wrote last year. "Under a private regime, an investor-owned utility would likely charge a higher rate of return, a pattern seen when UK network profits drew regulatory rebukes."

None of these considerations appears to have been factored into the White House budget proposal. "Either there's an unsophisticated person at the Office of Management and Budget thinking up these numbers himself," McCullough told me, "or there would seem to be ongoing negotiations with an unidentified third party." No such buyer has emerged in the past, however.

What's left is a blind faith in the magic of the market, compounded by ignorance about how the transmission market operates. Put it together, and there's reason to wonder if Trump is even serious about this plan.

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SaskPower Summer Power Demand Record hits 3,520 MW as heat waves drive electricity consumption; grid capacity, renewables expansion, and energy efficiency tips highlight efforts to curb greenhouse gas emissions while meeting Saskatchewan's growing load.

Key Points

The latest summer peak load in Saskatchewan: 3,520 MW, driven by heat, with plans to expand capacity and lower emissions.

✅ New peak surpasses last August by 50 MW to 3,520 MW.

✅ Capacity target: 7,000 MW by 2030 with more renewables.

✅ Tips: AC settings, close blinds, delay heat-producing chores.

As the mercury continues to climb in Saskatchewan, where Alberta's summer electricity record offers a regional comparison, SaskPower says the province has set a new summer power demand record.

The Crown says the new record is 3,520 megawatts. It’s an increase of 50 megawatts over the previous record, or enough electricity for 50,000 homes.

“We’ve seen both summer and winter records set every year for a good while now. And if last summer is any indication, we could very well see another record before temperatures cool off heading into the fall,” said SaskPower Vice President of Transmission and Industrial Services Kory Hayko in a written release. “It’s not impossible we’ll break this record again in the coming days. It’s SaskPower’s responsibility to ensure that Saskatchewan people and businesses have the power they need to thrive. That’s what drives our investment of $1 billion every year, as outlined in our annual report, to modernize and grow the province’s electrical system.”

The previous summer consumption record of 3,740 megawatts was set last August, and similar extremes in the Yukon electricity demand highlight broader demand pressures this year. The winter demand record remains higher at 3,792 megawatts, set on Dec. 29, 2017.

SaskPower says it plans to expand its generation capacity from 4,500 megawatts now to 7,000 megawatts in 2030, with a focus on decreasing greenhouse gas emissions and doubling renewable electricity by 2030 as part of its strategy.

To reduce power bills, the Crown suggests turning down or programming air conditioning when residents aren’t home, inspecting the air conditioner to make sure it is operating efficiently, keeping blinds closed to keep out direct sunlight, delaying chores that produce heat and making sure electronics are turned off when people leave the room.

The new record beats the previous summer peak of 3,470 MW, set last August after also being broken twice in July. The winter demand record is still higher at 3,792 MW, which was set on December 29, 2017. To meet growing power demand, and amid projections that Manitoba's electrical demand could double in the next 20 years, SaskPower is expanding its generation capacity from approximately 4,500 MW now to 7,000 MW by 2030 while also reducing greenhouse gas emissions by 40 per cent from 2005 levels. To accomplish this, we will be significantly increasing the amount of renewables on our system.

Cooling and heating represents approximately a quarter of residential power bills. To reduce consumption and power bills during heat waves, SaskPower’s customers can:

Turn down or program the air conditioning when no one is home (for every degree that air conditioning is lowered for an eight-hour period, customers can save up to two per cent on their power costs);

Consider having their air conditioning unit inspected to make sure it is operating efficiently;

Keep the heat out by closing blinds and drapes, especially those with direct sunlight;

Delay chores that produce heat and moisture, like dishwashing and laundering, until the cooler parts of the day or evening; and

As with any time of the year, make sure lights, televisions and other electronics are turned off when no one's in the room. For example, a modern gaming console can use as much power as a refrigerator.

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Hydro One COVID-19 Quarantine Support connects Ontario's Ministry of Health with trained customer service teams to contact travellers, encourage self-isolation, explain quarantine rules, and share public health guidance to slow community transmission.

Key Points

Hydro One helps Ontario's MOH contact travellers and guide self-isolation for quarantine compliance.

✅ Trained agents contact returning travellers in Ontario

✅ Guidance on self-isolation, symptoms, and quarantine compliance

✅ Supports public health while freeing front-line resources

Hydro One Networks Inc. ("Hydro One") announced support to the Ministry of Health (MOH) with its efforts in contacting travellers entering Ontario to ensure they comply with Canada's mandatory quarantine measures to combat COVID-19. Hydro One has volunteered employees from its customer service operations to contact thousands of returning travellers to provide them with timely guidance on how to self-isolate and spot the symptoms of the virus to help stop its spread.

"Our team is ready to lend a helping hand and support the province to help fight this invisible enemy," said Mark Poweska, President and CEO, Hydro One. "Our very dedicated customer service staff are highly professional and will be a valuable resource in supporting the province as it works to keep Ontarians safe and slow the spread of COVID-19."

"We have seen a tremendous response from all our companies across Ontario to help us fight the COVID-19 outbreak. With this one, Hydro One is helping the province to remind Ontarians they need to stay safe at home, especially self-isolating customers throughout Ontario," said Christine Elliott, Deputy Premier and Minister of Health. "We thank them for stepping up to be part of the fantastic province-wide effort acting together and allowing our front line workers to focus their efforts where they are needed most during this challenging time."

"We are pleased to see Hydro One volunteer its resources and expertise to support in the fight against COVID-19," said Greg Rickford, Minister of Energy, Northern Development and Mines. "In these unprecedented times, I am proud to see leaders in the energy sector rise to the challenge, from restoring power after major storms to supporting the people of our province."

Hydro One and its employees play a critical role in maintaining Ontario's electricity system. Since the COVID-19 outbreak began, Hydro One has been monitoring the evolving situation and adapting its operations, including on-site lockdowns for key staff as needed to ensure it continues to deliver the service Ontarians depend on while keeping our employees, customers and the public safe.

Hydro One has also developed a number of customer support measures during COVID-19, including a new Pandemic Relief Fund to offer payment flexibility and financial assistance to customers experiencing financial hardship, suspending late payment fees and returning approximately $5 million in security deposits to businesses across Ontario.

"Customers are counting on us now more than ever – not only to keep the lights on across the province, but to offer support during this difficult time," said Poweska. "Hydro One will continue to collaborate with industry partners and the province, including mutual aid assistance with other utilities, to find new ways to offer support where it is needed."

More information about how Hydro One is supporting its customers, including its ban on disconnections and other measures, can be found at www.HydroOne.com/PandemicRelief .

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EU Electricity Market Reform seeks to curb gas-driven volatility by expanding CfDs and PPAs, decoupling power from gas, and aligning consumer bills with low-cost renewables and nuclear, as Brussels advances market redesign.

Key Points

An EU plan to curb price spikes by expanding long-term contracts and tying bills to cheap renewables.

✅ Expands CfDs and PPAs to lock in predictable power prices

✅ Aims to decouple bills from gas-driven wholesale volatility

✅ Seeks investment certainty for renewables, nuclear, and grids

European Union energy ministers meet on Monday to debate upcoming power market reforms. Brussels is set to propose the revamp next month, but already countries are split over how to "fix" the energy system - or whether it needs fixing at all.

Here's what you need to know.

POST-CRISIS CHANGES
The European Commission pledged last year to reform the EU's electricity market rules, after record-high gas prices - caused by cuts to Russian gas flows - sent power prices soaring during an energy crisis for European companies and citizens.

The aim is to reform the electricity market to shield consumer energy bills from short-term swings in fossil fuel prices, and make sure that Europe's growing share of low-cost renewable electricity translates into lower prices, even though rolling back electricity prices poses challenges for policymakers.

Currently, power prices in Europe are set by the running cost of the plant that supplies the final chunk of power needed to meet overall demand. Often, that is a gas plant, so gas price spikes can send electricity prices soaring.

EU countries disagree on how far the reforms should go.

Spain, France and Greece are among those seeking a deep reform.

In a document shared with EU countries, seen by Reuters, Spain said the reforms should help national regulators to sign more long-term contracts with electricity generators to pay a fixed price for their power.

Nuclear and renewable energy producers, for example, would receive a "contract for difference" (CfD) from the government to provide power during their lifespan - potentially decades - at a stable price that reflects their average cost of production.

Similarly, France suggests, as part of a new electricity pricing scheme, requiring energy suppliers to sign long-term, fixed-price contracts with power generators - either through a CfD, or a private Power Purchase Agreement (PPA) between the parties.

French officials say this would give the power plant owner predictable revenue, while enabling consumers to have part of their energy bill comprised of this more stable price.

Germany, Denmark, Latvia and four other countries oppose a deep reform, and, as nine EU countries oppose reforms overall, have warned the EU against a "crisis mode" overhaul of a complex system that has taken decades to develop.

They say Europe's existing power market is functioning well, and has fostered years of lower power prices, supported renewable energy and helped avoid energy shortages.

Those countries support only limited tweaks, such as making it easier for consumers to choose between fluctuating and fixed-price power contracts.

'DECOUPLE' PRICES?
The Commission initially pitched the reform as a chance to "decouple" gas and power prices in Europe, suggesting a redesign of the current system of setting power prices. But EU officials say Brussels now appears to be leaning towards more modest changes.

A public consultation on the reforms last month steered clear of a deep energy market intervention. Rather, it suggested expanding Europe's use of long-term contracts, outlining a plan for more fixed-price contracts that provide power plants with a fixed price for their electricity, like CfDs or PPAs.

The Commission said this could be done by setting EU-wide rules for CfDs and letting countries voluntarily use them, or require new state-funded power plants to sign CfDs. The consultation mooted the idea of forcing existing power plants to sign CfDs, but said this could deter much-needed investments in renewable energy.

RISKS, REWARDS
Pro-reform countries like Spain say a revamped power market will bring down energy prices for consumers, by matching their bills more closely with the true cost of producing lower-carbon electricity.

France says the aim is to secure investment in low-carbon energy including renewables, and nuclear plants like those Paris plans to build. It also says lowering power prices should be part of Europe's response to massive industrial subsidies in the United States and China - by helping European firms keep a competitive edge.

But sceptics warn that drastic changes to the market could knock confidence among investors, putting at risk the hundreds of billions of euros in renewable energy investments the EU says are needed to quit Russian fossil fuels under its plan to dump Russian energy and meet climate goals.

Energy companies including Engie (ENGIE.PA), Orsted (ORSTED.CO) and Iberdrola (IBE.MC) have said making CfDs mandatory or imposing them retroactively on existing power plants could deter investment and trigger litigation from energy companies.

POLITICAL DEBATE
EU countries' energy ministers discuss the reforms on Monday, before formal negotiations begin.

The Commission, which drafts EU laws, plans to propose the reforms on Mar. 14. After that, EU countries and lawmakers negotiate the final law, which must win majority support from European Parliament lawmakers and a reinforced majority of at least 15 countries.

Negotiations on major EU legislation often take more than a year, but some countries are pushing for a fast-tracked deal. France wants the law to be finished this year.

That has already hit resistance from countries like Germany, highlighting a France-Germany tussle over the scope of reform as they say deeper changes cannot be rushed through, and they would need an "in-depth impact assessment" - something the Commission's upcoming proposal is not expected to include, because it has been drafted so quickly.

The timeline is further complicated by European Parliament elections in 2024. That has raised concerns in reform-hungry states that failure to strike a deal before the election could significantly delay the reforms, if negotiations have to pause until a new EU parliament is elected.

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