Ocean waves could generate power

By Knight Ridder Tribune


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Wave energy converters may have a low profile, but the technology made a splash at Cape Cod Community College.

During a forum sponsored by the Cape and Islands Renewable Energy Collaborative, a diverse audience that included students, selectmen and engineers was introduced to the devices that could one day provide about 7 percent of the country's energy needs.

There is potential for wave energy projects off the coast of Cape Cod, said Bill Staby, president of the Fall River-based company Resolute Marine Energy and the event's featured speaker. Staby's company is among dozens vying for a spot in the emerging market of wave energy converters.

"It appears that the U.S. market is finally waking up," he said.

The converters use the movement of waves across the ocean to create energy. The first commercial project was installed off the northern coast of Portugal late last year. In the U.S., advances have come slower but picked up steam recently with the infusion of $50 million in congressional funding for research and development for ocean energy projects, Staby said.

The idea was first proposed for Cape waters in a 2004 feasibility study by the Electric Power Research Institute. The study's authors looked closely at a location off the National Seashore in Wellfleet. Since that time, about a dozen permit applications for different test projects have been filed, Roger Bedard, the institute's ocean energy leader, said.

The study looked at about five other areas around the country. The Wellfleet site was not the best and not the worst, Bedard said.

"Maine was awful," he said. The best locations were in waters off the Pacific Northwest.

The potential of the entire U.S. coastline is about 250 terawatt hours of electricity per year, Bedard said. This is about the same as the energy derived from hydroelectric projects or 6.5 percent of the country's present energy demand, he said. But first the technology must be developed.

The basics are simple but the harsh ocean environment makes durability key, Staby said.

"Survivability is the number one determinant of success among these devices at this time." Resolute Marine Energy's design is essentially shaped like a buoy, Staby said.

But the converters come in all shapes and sizes, from large snake-like tubes that float on the ocean's surface to structures powered by air forced into a closed chamber by incoming and retreating waves. Prototypes deployed in the northwest United States basically work like giant versions of the flashlights you shake to recharge, Staby said.

Corrosion and biological fouling are among the technical hurdles any design faces, he said. Other factors in the location of converters include the willingness of local stakeholders to have the devices offshore.

They rarely rise high out of the water - about chest height for the buoy design - so controversies over visual impacts such as the proposed Nantucket Sound wind farm should be limited, Staby said.

Fishermen have raised the most concern so far, he said.

Staby expects his company could have a small version in Massachusetts waters by the end of 2008. And while initial forays into the industry are based close to shore, the further offshore the better, he said. Technology is only a part of what the Cape can potentially do to reduce its use of fossil fuels, said Chris Powicki, president of the Cape and Islands Renewable Energy Collaborative steering committee.

"You have to have a full portfolio of supply options in order to do (reduce fossil fuel use) successfully," Powicki said. And while projects such as Cape Wind could go a long way toward making such efforts possible lower profile efforts such as wave energy and efficiency programs are needed to, he said.

Wave Energy Converters: Heaving devices sit like buoys on the ocean's surface creating energy through a generator that runs a magnet up and down through a copper coil (similar to flashlights that recharge when shaken).

- Pitching devices are giant jointed tubes that derive energy as they pitch up and down in the water.

- Oscillating water column type uses air forced into a structure anchored to the shoreline to move a generator that "breathes" in and out as the waves strike and refract off the land.

- Overtopping devices push water up a ramp above and then down on top of a generator.

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Quebec Halts Crypto Mining Electricity Requests

Hydro-Quebec Crypto Mining Pause signals a temporary halt as blockchain power requests surge; energy regulator review will weigh electricity demand, winter peak constraints, tariffs, investments, and local jobs to optimize grid stability and revenues.

 

Key Points

A provincial halt on new miner power requests as Hydro-Quebec sets rules to safeguard demand, winter peaks, and rates.

✅ Temporary halt on new electricity sales to crypto miners

✅ Regulator to rank projects by jobs, investment, and revenue

✅ Winter peak demand and tariffs central to new framework

 

Major Canadian electricity provider Hydro-Québec will temporarily stop processing requests from cryptocurrency miners in order for the company to fulfil its obligations to supply energy to the entire province, while its global ambitions adjust to changing demand, according to a press release published June 7.

Hydro-Québec is experiencing “unprecedented” demand from blockchain companies, which reportedly exceeds the electric utility’s short and medium-term capacity. In this regard, the Quebec provincial government has ordered Hydro-Québec to halt electric power sales to cryptocurrency miners, and, following the New Hampshire rejection of Northern Pass announced a new framework for this category of electricity consumers.

In the coming days, Hydro-Québec will reportedly file an application to local energy regulator Régie de l'énergie, proposing a selection process for blockchain industry projects so as “not to miss the opportunities offered by this industry.” Regulators will reportedly target companies which can offer the province the most profitable economic advantages, including investments and local job creation.

#google#

Régie de l'énergie is instructed to consider “the need for a reserved block of energy for this category of consumers, the possibility of maximizing Hydro-Québec's revenues, and issues related to the winter peak period” as well as interprovincial arrangements like the Ontario-Québec electricity deal under discussion. Éric Filion, President of Hydro-Québec Distribution, said:

"The blockchain industry is a promising avenue for Hydro-Québec. Guidelines are nevertheless required to ensure that the development of this industry maximizes spinoffs for Québec without resulting in rate increases for our customers. We are actively participating in the Régie de l'énergie's process so that these guidelines can be produced as quickly as possible."

With this move, the government of Québec deviates from its decision to reportedly open the electricity market to miners at the end of last month, even as an Ontario-Quebec energy swap helps manage electricity demands. In March, the government said it was not interested in providing cheap electricity to Bitcoin miners, stating that cryptocurrency mining at a discount without any sort of “added value” for the local economy was unfavorable.

 

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Financial update from N.L energy corp. reflects pandemic's impact

Nalcor Energy Pandemic Loss underscores Muskrat Falls delays, hydroelectric risks, oil price shocks, and COVID-19 impacts, affecting ratepayers, provincial debt, timelines, and software commissioning for the Churchill River project and Atlantic Canada subsea transmission.

 

Key Points

A $171M Q1 2020 downturn linked to COVID-19, oil price collapse, and Muskrat Falls delays impacting schedules and costs.

✅ Q1 2020 profit swing: +$92M to -$171M amid oil price crash

✅ Muskrat Falls timeline slips; cost may reach $13.1B

✅ Software, workforce, COVID-19 constraints slow commissioning

 

Newfoundland and Labrador's Crown energy corporation reported a pandemic-related profit loss from the first quarter of 2020 on Tuesday, along with further complications to the beleaguered Muskrat Falls hydroelectric project.

Nalcor Energy recorded a profit loss of $171 million in the first quarter of 2020, down from a $92 million profit in the same period last year, due in part to falling oil prices during the COVID-19 pandemic.

The company released its financial statements for 2019 and the first quarter of 2020 on Tuesday, and officials discussed the numbers in a livestreamed presentation that detailed the impact of the global health crisis on the company's operations.

The loss in the first quarter was caused by lower profits from electricity sales and a drop in oil prices due to the pandemic and other global events, company officials said.

The novel coronavirus also added to the troubles plaguing the Muskrat Falls hydroelectric dam on Labrador's Churchill River, amid Quebec-N.L. energy tensions that long predate the pandemic.

Work at the remote site stopped in March over concerns about spreading the virus. Operations have been resuming slowly, with a reduced workforce tackling the remaining jobs.

Officials with Nalcor said it will likely be another year before the megaproject is complete.

CEO Stan Marshall estimates the months of delays could bring the total cost to $13.1 billion including financing, up from the previous estimate of $12.7 billion -- though the total impact of the coronavirus on the project's price tag has yet to be determined.

"If we're going to shut down again, all of that's wrong," Marshall said. "But otherwise, we can just carry on and we'll have a good idea of the productivity level. I'm hoping that by September we'll have a more definitive number here."

The 824 megawatt hydroelectric dam will eventually send power to Newfoundland, and later Nova Scotia, through subsea cables, even as Nova Scotia boosts wind and solar in its energy mix.

It has seen costs essentially double since it was approved in 2012, and faced significant delays even before pandemic-forced shutdowns in North America and around the world this spring.

Cost and schedule overruns were the subject of a sweeping inquiry that held hearings last year, while broader generation choices like biomass use have drawn scrutiny as well.

The commissioner's report faulted previous governments for failing to protect residents by proceeding with the project no matter what, and for placing trust in Nalcor executives who "frequently" concealed information about schedule, cost and related risks.

Some of the latest delays have come from challenges with the development of software required to run the transmission link between Labrador and Newfoundland, where winter reliability issues have been flagged in reports.

The software is still being worked out, Marshall said Tuesday, and the four units at the dam will come online gradually over the next year.

"It's not an all or nothing thing," Marshall said of the final work stages.
Nalcor's financial snapshot follows a bleak fiscal update from the province this month. The Liberal government reported a net debt of $14.2 billion and a deficit of more than $1.1 billion, even as a recent Churchill Falls deal promised new revenues for the province, citing challenges from pandemic-related closures and oil production shutdowns.

Finance Minister Tom Osborne said at the time that help from Ottawa will be necessary to get the province's finances back on track.

Muskrat Falls represents about one-third of the province's debt, and is set to produce more power than the province of about half a million people requires. Anticipated rate increases due to the ballooning costs and questions about Muskrat Falls benefits have posed a significant political challenge for the provincial government.

Ottawa has agreed to work with Newfoundland and Labrador on a rewrite of the project's financial structure, scrapping the format agreed upon in past federal-provincial loan agreements in order to ease the burden on ratepayers, while some argue independent planning would better safeguard ratepayers.

Marshall, a former Fortis CEO who was brought in to lead Nalcor in 2016, has called the project a "boondoggle" and committed to seeing it completed within four years. Though that plan has been disrupted by the pandemic, Marshall said the end is in sight.

"I'm looking forward to a year from now. And I hope to be gone," Marshall said.

 

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Electricity prices in Germany nearly doubled in a year

Germany Energy Price Hikes are driving electricity tariffs, gas prices, and heating costs higher as wholesale markets surge after the Ukraine invasion; households face inflationary pressure despite relief measures and a renewables levy cut.

 

Key Points

Germany Energy Price Hikes reflect surging power and gas tariffs from wholesale spikes, prompting relief measures.

✅ Electricity tariffs to rise 19.5% in Apr-Jun

✅ Gas tariffs up 42.3%; heating and fuel costs soar

✅ Renewables levy ends July; saves €6.6 billion yearly

 

Record prices for electricity and gas in Germany will continue to rise in the coming months, the dpa agency, citing estimates from the consumer portal Verivox.

According to him, electricity suppliers and local utilities, in whose area of ​​responsibility there are 13 million households, made an announcement of tariff increases in April, May and June by 19.5%. Gas tariffs increased by an average of 42.3%.

According to Verivox, electricity prices in Germany have approximately doubled over the year - a pattern seen as European electricity prices rose more than double the EU average - if previously a household with a consumption of 4,000 kWh paid 1,171 euros a year, now the amount has risen to 1,737 euros. Gas prices have risen even more, though European gas prices later returned to pre-Ukraine war levels: last year, a household with a consumption of 20,000 kWh paid 1,184 euros in annual terms, and now it is 2,787 euros. 

Energy costs for the average German household are 52 percent higher than a year ago, adding to EU inflation pressures, according to energy contract sales website Check24. In a press release, the company said the wholesale electricity price was at €122.93 per megawatt-hour in February 2022, compared to €49 this time last year, while in the United States US electricity prices climbed at the fastest pace in 41 years. In addition, electricity prices on the power exchange haven been rising rapidly since Russian troops invaded Ukraine, comparison portal Strom Report said. Costs for heating rose the most, triggered by the high gas price (105 euros per megawatt-hour on the wholesale market) and around 100 USD per barrel of oil – its highest price since 2014. Driving also became more expensive with costs for petrol up 25 percent and diesel 30 percent, Check24 said.

The German government has decided on relief measures for low-income households, including a 200 billion euro energy shield, in response to high consumer energy costs. In July, it will abolish the renewables levy on the power price, saving consumers around €6.6 billion annually. In a reform proposal released this week, the ministry for economy and climate also detailed how it will legally oblige power suppliers to reduce their power bills when the levy is abolished.

 

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California Public Utilities Commission sides with community energy program over SDG&E

CPUC Decision on San Diego Community Power directs SDG&E to use updated forecasts, stabilizing electricity rates for CCA customers and supporting clean energy in San Diego with accurate rate forecasting and reduced volatility.

 

Key Points

A CPUC ruling directing SDG&E to use updated forecasts to ensure accurate, stable CCA rates and limit volatility.

✅ Uses 2021 sales forecasts for rate setting

✅ Aims to prevent undercollection and bill spikes

✅ Levels changes across customer classes

 

The California Public Utilities Commission on Thursday sided with the soon-to-launch San Diego community energy program in a dispute it had with San Diego Gas & Electric.

San Diego Community Power — which will begin to purchase power for customers in San Diego, Chula Vista, La Mesa, Encinitas and Imperial Beach later this year — had complained to the commission that data SDG&E intended to use to calculate rates, including community choice exit fees that could make the new energy program less attractive to prospective customers.

SDG&E argued it was using numbers it was authorized to employ as part of a general rate case amid a potential rate structure revamp that is still being considered by the commission.

But in a 4-0 vote, the commission, or CPUC, sided with San Diego Community Power and directed SDG&E to use an updated forecast for energy sales.

"This was not an easy decision," said CPUC president Marybel Batjer at the meeting, held remotely due to COVID-19 restrictions. "In my mind, this outcome best accounts for the shifting realities ... in the San Diego area while minimizing the impact on ratepayers during these difficult financial times."

In filings to the commission, SDG&E predicted a rate decrease of 12.35 percent in the coming year. While that appears to be good news for customers, Californians still face soaring electricity prices statewide, Commissioner Martha Guzman Aceves said the data set SDG&E wanted to use would lead to an undercollection of $150 million to $260 million.

That would result in rates that would be "artificially low," Guzman Aceves said, and rates "would inevitably go up quite a bit after the undercollection was addressed."

San Diego Community Power, or SDCP, said the temporary reduction would make its rates less attractive than SDG&E's, especially amid SDG&E's minimum charge proposal affecting low-usage customers, just as it is about to begin serving customers. SDCP's board members wrote an open letter last month to the commission, accusing the utility of "willful manipulation of data."

Working with an administrative law judge at the CPUC, Guzman Aceves authored a proposal requiring SDG&E to use numbers based on 2021 forecasts, as regulators simultaneously weigh whether the state needs more power plants to ensure reliability. The utility argued that could result in an increase of "roughly 40 percent" for medium and large commercial and industrial customers this year.

To help reduce potential volatility, Guzman Aceves, SDCP and other community energy supporters called for using a formula that would average out changes in rates across customer classes amid debates over income-based utility charges statewide. That's what the commissioners OK'd Thursday.

"It is essential that customer commodity rates be as accurate as we can possibly get them to avoid undercollections," said Commissioner Genevieve Shiroma.

San Diego Community Power is one of 23 community choice aggregation, or CCA, energy programs that have launched in California in the past decade.

CCAs compete with traditional power companies amid California's evolving power competition landscape, in one important role — purchasing power for a given community. They were created to boost the use of cleaner energy sources, such as wind and solar, at rates equal to or lower than investor-owned utilities.

However, CCAs do not replace utilities because the incumbent power companies still perform all of the tasks outside of power purchasing, such as transmission and distribution of energy and customer billing.

When a CCA is formed, California rules stipulate the utility customers in that area are automatically enrolled in the CCA. If customers prefer to stay with their previous power company, they can opt out of joining the CCA.

The shift of customers from SDG&E to San Diego Community Power is expected to be large. The total number of accounts for SDCP is expected to be 770,000, which would make it the second-largest CCA in the state. That's why SDCP considered Thursday's CPUC decision to be so important.

"At a time when customers are choosing between sticking with San Diego Gas & Electric and migrating to a CCA, we want them to have accurate bill information," said Commissioner Clifford Rechtschaffen.

"SDCP is very happy with today's CPUC decision, and that the commissioners shared our goal of limiting rate volatility for businesses and families in the region," said SDCP interim CEO Bill Carnahan. "This is definitely a win for accurate rate forecasting, and our mutual customers, and we look forward to working with SDG&E on next steps."

In an email, SDG&E spokeswoman Helen Gao said, "We are committed to continuing to work collaboratively with local Community Choice Aggregation programs to support their successful launch in 2021 and ensure that our mutual customers receive excellent customer service."

San Diego Community Power's case before the CPUC was joined by the California Community Choice Association, a trade group advocating for CCAs, and the Clean Energy Alliance — the North County-based CCA representing Del Mar, Solana Beach and Carlsbad that is scheduled to launch this summer.

SDCP will begin its rollout this year, folding in about 71,000 municipal, commercial and industrial accounts. The bulk of its roughly 700,000 residential accounts is expected to come in January 2022.

 

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Alberta ratepayers on the hook for unpaid gas and electricity bills from utility deferral program

Alberta Utility Rate Rider will add a modest fee to electricity bills and natural gas charges as the AUC recovers outstanding debt from the COVID-19 deferral program via AESO and the Balancing Pool.

 

Key Points

A temporary surcharge on Alberta power and gas bills to recover unpaid COVID-19 deferral debt, administered by the AUC.

✅ Applies per kWh and per GJ based on consumption

✅ Recovers unpaid balances from 2020-21 bill deferrals

✅ Collected via AESO and the Balancing Pool under AUC oversight

 

The province says Alberta ratepayers should expect to see an extra fee on their utility bills in the coming months.

That fee is meant to recover the outstanding debt owed to gas and electricity providers resulting from last year's three-month utility deferral program offered to struggling Albertans during the pandemic.

The provincial government announced the utility deferral program in March 2020 then formalized it with legislation, alongside a consumer price cap on power bills that shaped later policy decisions.

The program allowed residential, farm and small commercial customers who used less than 250,000 kilowatt hours of electricity per year — or consumed less than 2,500 gigajoules per year — to postpone their bills amid the COVID-19 pandemic.

According to the province, 350,000 customers, or approximately 13 per cent of the natural gas and electricity consumer base, took advantage of the program.

Customers had a year to repay providers what they owed. That deadline ended June 18, 2021.

The Alberta Utilities Commission (AUC), which regulates the utilities sector and natural gas and electricity markets and oversees a rate of last resort framework, said the vast majority of consumers have squared up.

But for those who didn't, provincial legislation dictates that Alberta ratepayers must cover any unpaid debt. The legislation exempts Medicine Hat utility customers for electricity and gas co-operative customers for gas.

"When the program was announced, it was very clear that it was a deferral program and that the monies would need to be paid back," said Geoff Scotton, a spokesperson with the Alberta Utilities Commission.

"Now we're in the situation where the providers, in good faith, who enabled those payment deferrals, need to be made whole. That's really the goal here."

Amount to be determined
Margeaux Maron, a spokesperson for Associate Minister of Natural Gas and Electricity Dale Nally, said based on early estimates, $13 to $16 million of $92 million in deferred payments remain outstanding.

As a result, the province expects the average Albertan will end up paying, unlike jurisdictions offering a lump-sum credit, a fraction of a dollar extra per monthly gas and electricity bill over a handful of months.

Scotton said at this point, there are too many unknown factors to know the exact size of the rate rider. However, he said he expects it to be modest.

Scotton said affected parties first have until the end of this week to notify the AUC exactly how much they are still owed.

Those parties include the Alberta Electric System Operator and the Balancing Pool, who essentially acted as bankers with respect to the distribution and transmission of the utilities to customers who deferred their payments.

Regulated service providers may also seek reimbursement on administrative and carrying costs, even as issues like a BC Hydro fund surplus spark debate elsewhere.

Then, Scotton said, once the outstanding amounts are known, the AUC will hold a public proceeding, similar to a Nova Scotia rate case, to determine the amount and the duration of the rate rider to be applied to each natural gas and electricity bill.

The amount will be based on consumption: per kilowatt hour for electricity and per gigajoule for natural gas.

That means larger businesses will end up paying more than the average Albertan.

Scotton said the AUC will expedite the hearing process and it expects to have a decision by the end of the summer.

Rate rider a 'surprise'
Joel MacDonald with Energyrates.ca — an organization which compares energy rates across the country — said it's not the amount of the rate rider that bothers him, but the fact that the repayment process wasn't made clear at the onset of the program.

"It came to us as a bit of a surprise," MacDonald said.

He said what was sold as a deferral program seems more like an electricity rebate program, or an "ability to pay" program.

"As opposed to the retailers looking into collection methods, anything that wasn't paid is basically just being forced upon all Alberta consumers," MacDonald said.

The expectation set out in the deferral legislation and regulations state utility providers such as Enmax and Epcor are expected to use reasonable efforts to try to collect the unpaid balances. It must then detail those reasonable efforts to the AUC.

A spokesperson for Enmax said it first works with its customers to find manageable payment arrangements and connects them with support services if they are unable to pay.

Then, if payment can't be arranged, it said it will work with a collection agency, which may even result in disconnection of service.

The spokesperson said only after all efforts have failed would Enmax seek reimbursement through this program.

Use tax revenues?
MacDonald also questioned why a government program isn't being paid for through general tax revenues.

He compared the utility deferral program to a mortgage subsidy program.

"Imagine that [Canada Mortgage And Housing Corporation] said, 'Hey, we had to give mortgage deferrals and some of these people never paid back their deferrals, so we're going to add an extra $300 to everyone's mortgage,'" he said.

"You'd expect that to come off of some sort of general taxation — not being assigned to other people's mortgages, right?"

In response, Maron said due to the current fiscal challenges facing the government — and the expected minimal costs to consumers, and even as a consumer price cap on electricity remains in place — it was determined that a rate rider would be an appropriate mechanism to repay bad debt associated with the program.

Scotton said rate riders aren't unusual — they're used to fine-tune rates for a set period of time.

He said under normal circumstances, regulated service providers can apply to the AUC to impose a rate rider to recover unexpected costs. And in some instances, they can provide a credit.

But in this situation, he said the debt is aggregated and, in turn, being collected more broadly.

 

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7 steps to make electricity systems more resilient to climate risks

Electricity System Climate Resilience underpins grid reliability amid heatwaves and drought, integrating solar, wind, hydropower, nuclear, storage, and demand response with efficient transmission, flexibility, and planning to secure power for homes, industry, and services.

 

Key Points

Power systems capacity to endure extreme weather and integrate clean energy, maintaining reliability and flexibility.

✅ Grid hardening, transmission upgrades, and digital forecasting.

✅ Flexible low-carbon supply: hydropower, nuclear, storage.

✅ Demand response, efficient cooling, and regional integration.

 

Summer is just half done in the northern hemisphere and yet we are already seeing electricity systems around the world struggling to cope with the severe strain of heatwaves and low rainfall.

These challenges highlight the urgent need for strong and well-planned policies and investments to improve the security of our electricity systems, which supply power to homes, offices, factories, hospitals, schools and other fundamental parts of our economies and societies. This means making our electricity systems more resilient to the effects of global warming – and more efficient and flexible as they incorporate rising levels of solar and wind power, as solar is now the cheapest electricity in history according to the IEA, which will be critical for reaching net-zero emissions in time to prevent even worse impacts from climate change.

A range of different countries, including the US, Canada and Iraq, have been hard hit by extreme weather recently in the form of unusually high temperatures. In North America, the heat soared to record levels in the Pacific Northwest. An electricity watchdog says that five US regions face elevated risks to the security of their electricity supplies this summer, underscoring US grid climate risks that could worsen, and that California’s risk level is even higher.

Heatwaves put pressure on electricity systems in multiple ways. They increase demand as people turn up air conditioning, driving higher US electricity bills for many households, and as some appliances work harder to maintain cool temperatures. At the same time, higher temperatures can also squeeze electricity supplies by reducing the efficiency and capacity of traditional thermal power plants, such as coal, natural gas and nuclear. Extreme heat can reduce the availability of water for cooling plants or transporting fuel, forcing operators to reduce their output. In some cases, it can result in power plants having to shut down, increasing the risk of outages. If the heat wave is spread over a wide geographic area, it also reduces the scope for one region to draw on spare capacity from its neighbours, since they have to devote their available resources to meeting local demand.

A recent heatwave in Texas forced the grid operator to call for customers to raise their thermostats’ temperatures to conserve energy. Power generating companies suffered outages at much higher rates than expected, providing an unwelcome reminder of February’s brutal cold snap when outages – primarily from natural gas power plants – left up to 5 million customers across the US without power over a period of four days.

At the same time, lower than average rainfall and prolonged dry weather conditions are raising concerns about hydropower’s electricity output in various parts of the world, including Brazil, China, India and North America. The risks that climate change brings in the form of droughts adds to the challenges faced by hydropower, the world’s largest source of clean electricity, highlighting the importance of developing hydropower resources sustainably and ensuring projects are climate resilient.

The recent spate of heatwaves and unusually long dry spells are fresh warnings of what lies ahead as our climate continues to heat up: an increase in the scale and frequency of extreme weather events, which will cause greater impacts and strains on our energy infrastructure.

Heatwaves will increase the challenge of meeting electricity demand while also decarbonizing the electricity supply. Today, the amount of energy used for cooling spaces – such as homes, shops, offices and factories – is responsible for around 1 billion tonnes of global CO2 emissions. In particular, energy for cooling can have a major impact on peak periods of electricity demand, intensifying the stress on the system. Since the energy demand used for air conditioners worldwide could triple by 2050, these strains are set to grow unless governments introduce stronger policy measures to improve the energy efficiency of air conditioning units.

Electricity security is crucial for smooth energy transitions
Many countries around the world have announced ambitious targets for reaching net-zero emissions by the middle of this century and are seeking to step up their clean energy transitions. The IEA’s recent Global Roadmap to Net Zero by 2050 makes it clear that achieving this formidable goal will require much more electricity, much cleaner electricity and for that electricity to be used in far more parts of our economies than it is today. This means electricity reaching much deeper into sectors such as transport (e.g. EVs), buildings (e.g. heat-pumps) and industry (e.g. electric-arc steel furnaces), and in countries like New Zealand's electrification plans it is accelerating broader efforts. As clean electricity’s role in the economy expands and that of fossil fuels declines, secure supplies of electricity become ever-more important. This is why the climate resilience of the electricity sector must be a top priority in governments’ policy agendas.

Changing climate patterns and more frequent extreme weather events can hit all types of power generation sources. Hydropower resources typically suffer in hot and dry conditions, but so do nuclear and fossil fuel power plants. These sources currently help ensure electricity systems have the flexibility and capacity to integrate rising shares of solar and wind power, whose output can vary depending on the weather and the time of day or year.

As governments and utilities pursue the decarbonization of electricity systems, mainly through growing levels of solar and wind, and carbon-free electricity options, they need to ensure they have sufficiently robust and diverse sources of flexibility to ensure secure supplies, including in the event of extreme weather events. This means that the possible decommissioning of existing power generation assets requires careful assessments that take into account the importance of climate resilience.

Ensuring electricity security requires long-term planning and stronger policy action and investment
The IEA is committed to helping governments make well-informed decisions as they seek to build a clean and secure energy future. With this in mind, here are seven areas for action for ensuring electricity systems are as resilient as possible to climate risks:

1. Invest in electricity grids to make them more resilient to extreme weather. Spending today is far below the levels needed to double the investment for cleaner, more electrified energy systems, particularly in emerging and developing economies. Economic recovery plans from the COVID-19 crisis offer clear opportunities for economies that have the resources to invest in enhancing grid infrastructure, but much greater international efforts are required to mobilize and channel the necessary spending in emerging and developing economies.

2. Improve the efficiency of cooling equipment. Cost-effective technology already exists in most markets to double or triple the efficiency of cooling equipment. Investing in higher efficiency could halve future energy demand and reduce investment and operating costs by $3 trillion between now and 2050. In advance of COP26, the Super-Efficient Equipment and Appliance Deployment (SEAD) initiative is encouraging countries to sign up to double the energy efficiency of equipment sold in their countries by 2030.

3. Enable the growth of flexible low-carbon power sources to support more solar and wind. These electricity generation sources include hydropower and nuclear, for countries who see a role for one or both of them in their energy transitions. Guaranteeing hydropower resilience in a warming climate will require sophisticated methods and tools – such as the ones implemented in Brazil – to calculate the necessary level of reserves and optimize management of reservoirs and hydropower output even in exceptional conditions. Batteries and other forms of storage, combined with solar or wind, can also provide important amounts of flexibility by storing power and releasing it when needed.

4. Increase other sources of electricity system flexibility. Demand-response and digital technologies can play an important role. The IEA estimates that only a small fraction of the huge potential for demand response in the buildings sector is actually tapped at the moment. New policies, which associate digitalization and financial behavioural incentives, could unlock more flexibility. Regional integration of electricity systems across national borders can also increase access to flexible resources.

5. Expedite the development and deployment of new technologies for managing extreme weather threats. The capabilities of electricity utilities in forecasting and situation awareness should be enhanced with the support of the latest information and communication technologies.

6. Make climate resilience a central part of policy-making and system planning. The interconnected nature of recent extreme weather events reminds us that we need to account for many contingencies when planning resilient power systems. Climate resilience should be integral to policy-making by governments and power system planning by utilities and relevant industries, and debates over Canadian climate policy underscore how grid implications must be considered. According to the recent IEA report on climate resilience, only nine out of 38 IEA member and association countries include concrete actions on climate adaptation and resilience for every segment of electricity systems.

7. Strengthen international cooperation on electricity security. Electricity underpins vital services and basic needs, such as health systems, water supplies and other energy industries. Maintaining a secure electricity supply is thus of critical importance. The costs of doing nothing in the face of growing climate threats are becoming abundantly clear. The IEA is working with all countries in the IEA family, as well as others around the world, by providing unrivalled data, analysis and policy advice on electricity security issues. It is also bringing governments together at various levels to share experiences and best practices, and identify how to hasten the shift to cleaner and more resilient energy systems.


 

 

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