IEEE launches Smart Grid Web Portal

By Electricity Forum


NFPA 70e Training - Arc Flash

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$199
Coupon Price:
$149
Reserve Your Seat Today
IEEE, the world's largest technical professional association, today launched the IEEE Smart Grid Web Portal, an integrated gateway to Smart Grid intelligence, education and news from IEEE and other expert sources.

The Web Portal (http://smartgrid.ieee.org) is designed for manufacturers, policymakers, educators, academics, governments, engineers, computer scientists, researchers and other stakeholders in the power and energy, information technology (IT), and communications industries.

The IEEE Smart Grid Web Portal is the first phase of IEEE Smart Grid, created to bring together IEEEÂ’s broad array of resources to provide expertise and guidance for those involved in Smart Grid worldwide.

“Contributions from across the global power and energy, communications and IT industries, as well as government and academia, are needed to ensure successful implementation of Smart Grid throughout the world. The IEEE Smart Grid Web Portal is designed to be an essential resource for anyone involved in Smart Grid, whatever their industry or technical discipline,” said Wanda Reder, 2008-09 president of the IEEE Power & Energy Society and chair of the IEEE Smart Grid Task Force.

“With our unmatched diversity of expertise, richness of programs and proven standards-development capability, IEEE is the obvious global entity to take on a unifying role in the global Smart Grid arena.”

The term “Smart Grid” refers to the next-generation, managed electrical power system that leverages increased use of communications and information technology in the generation, delivery and consumption of electrical energy. The new IEEE Smart Grid initiative will organize, coordinate, leverage and build upon the strength of various entities within and outside of IEEE with Smart Grid expertise and interest.

“The Smart Grid is a revolutionary undertaking, entailing new capabilities for communications and control, integration of new energy sources, distributed generation and adoption of a regulatory structure,” said Erich Gunther, Chairman and CTO with EnerNex and member of the Department of Energy (DOE) GridWise Architecture Council. “Successful roll-out requires a phenomenal diversity of expertise and experience, proven standards-development capability and shared vision.”

Added Steve Diamond, member of the IEEE Board of Directors and past president of the IEEE Computer Society: “Given its global representation across the technology spectrum, IEEE is ideally positioned to deliver thought leadership and coordination to Smart Grid.”

Related News

Longer, more frequent outages afflict the U.S. power grid as states fail to prepare for climate change

Power Grid Climate Resilience demands storm hardening, underground power lines, microgrids, batteries, and renewable energy as regulators and utilities confront climate change, sea level rise, and extreme weather to reduce outages and protect vulnerable communities.

 

Key Points

It is the grid capacity to resist and recover from climate hazards using buried lines, microgrids, and batteries.

✅ Underground lines reduce wind outages and wildfire ignition risk.

✅ Microgrids with solar and batteries sustain critical services.

✅ Regulators balance cost, resilience, equity, and reliability.

 

Every time a storm lashes the Carolina coast, the power lines on Tonye Gray’s street go down, cutting her lights and air conditioning. After Hurricane Florence in 2018, Gray went three days with no way to refrigerate medicine for her multiple sclerosis or pump the floodwater out of her basement.

What you need to know about the U.N. climate summit — and why it matters
“Florence was hell,” said Gray, 61, a marketing account manager and Wilmington native who finds herself increasingly frustrated by the city’s vulnerability.

“We’ve had storms long enough in Wilmington and this particular area that all power lines should have been underground by now. We know we’re going to get hit.”

Across the nation, severe weather fueled by climate change is pushing aging electrical systems past their limits, often with deadly results. Last year, amid increasing nationwide blackouts, the average American home endured more than eight hours without power, according to the U.S. Energy Information Administration — more than double the outage time five years ago.

This year alone, a wave of abnormally severe winter storms caused a disastrous power failure in Texas, leaving millions of homes in the dark, sometimes for days, and at least 200 dead. Power outages caused by Hurricane Ida contributed to at least 14 deaths in Louisiana, as some of the poorest parts of the state suffered through weeks of 90-degree heat without air conditioning.

As storms grow fiercer and more frequent, environmental groups are pushing states to completely reimagine the electrical grid, incorporating more grid-scale batteries, renewable energy sources and localized systems known as “microgrids,” which they say could reduce the incidence of wide-scale outages. Utility companies have proposed their own storm-proofing measures, including burying power lines underground.

But state regulators largely have rejected these ideas, citing pressure to keep energy rates affordable. Of $15.7 billion in grid improvements under consideration last year, regulators approved only $3.4 billion, according to a national survey by the NC Clean Energy Technology Center — about one-fifth, highlighting persistent vulnerabilities in the grid nationwide.

After a weather disaster, “everybody’s standing around saying, ‘Why didn’t you spend more to keep the lights on?’ ” Ted Thomas, chairman of the Arkansas Public Service Commission, said in an interview with The Washington Post. “But when you try to spend more when the system is working, it’s a tough sell.”

A major impediment is the failure by state regulators and the utility industry to consider the consequences of a more volatile climate — and to come up with better tools to prepare for it. For example, a Berkeley Lab study last year of outages caused by major weather events in six states found that neither state officials nor utility executives attempted to calculate the social and economic costs of longer and more frequent outages, such as food spoilage, business closures, supply chain disruptions and medical problems.

“There is no question that climatic changes are happening that directly affect the operation of the power grid,” said Justin Gundlach, a senior attorney at the Institute for Policy Integrity, a think tank at New York University Law School. “What you still haven’t seen … is a [state] commission saying: 'Isn’t climate the through line in all of this? Let’s examine it in an open-ended way. Let’s figure out where the information takes us and make some decisions.’ ”

In interviews, several state commissioners acknowledged that failure.

“Our electric grid was not built to handle the storms that are coming this next century,” said Tremaine L. Phillips, a commissioner on the Michigan Public Service Commission, which in August held an emergency meeting to discuss the problem of power outages. “We need to come up with a broader set of metrics in order to better understand the success of future improvements.”

Five disasters in four years
The need is especially urgent in North Carolina, where experts warn Atlantic grids and coastlines need a rethink as the state has declared a federal disaster from a hurricane or tropical storm five times in the past four years. Among them was Hurricane Florence, which brought torrential rain, catastrophic flooding and the state’s worst outage in over a decade in September 2018.

More than 1 million residents were left disconnected from refrigerators, air conditioners, ventilators and other essential machines, some for up to two weeks. Elderly residents dependent on oxygen were evacuated from nursing homes. Relief teams flew medical supplies to hospitals cut off by flooded roads. Desperate people facing closed stores and rotting food looted a Wilmington Family Dollar.

“I have PTSD from Hurricane Florence, not because of the actual storm but the aftermath,” said Evelyn Bryant, a community organizer who took part in the Wilmington response.

The storm reignited debate over a $13 billion proposal by Duke Energy, one of the largest power companies in the nation, to reinforce the state’s power grid. A few months earlier, the state had rejected Duke’s request for full repayment of those costs, determining that protecting the grid against weather is a normal part of doing business and not eligible for the type of reimbursement the company had sought.

After Florence, Duke offered a smaller, $2.5 billion plan, along with the argument that severe weather events are one of seven “megatrends” (including cyberthreats and population growth) that require greater investment, according to a PowerPoint presentation included in testimony to the state. The company owns the two largest utilities in North Carolina, Duke Energy Carolinas and Duke Energy Progress.

Vote Solar, a nonprofit climate advocacy group, objected to Duke’s plan, saying the utility had failed to study the risks of climate impacts. Duke’s flood maps, for example, had not been updated to reflect the latest projections for sea level rise, they said. In testimony, Vote Solar claimed Duke was using environmental trends to justify investments “it had already decided to pursue.”

The United States is one of the few countries where regulated utilities are usually guaranteed a rate of return on capital investments, even as studies show the U.S. experiences more blackouts than much of the developed world. That business model incentivizes spending regardless of how well it solves problems for customers and inspires skepticism. Ric O’Connell, executive director of GridLab, a nonprofit group that assists state and regional policymakers on electrical grid issues, said utilities in many states “are waving their hands and saying hurricanes” to justify spending that would do little to improve climate resilience.

In North Carolina, hurricanes convinced Republicans that climate change is real

Duke Energy spokesman Jeff Brooks acknowledged that the company had not conducted a climate risk study but pointed out that this type of analysis is still relatively new for the industry. He said Duke’s grid improvement plan “inherently was designed to think about future needs,” including reinforced substations with walls that rise several feet above the previous high watermark for flooding, and partly relied on federal flood maps to determine which stations are at most risk.

Brooks said Duke is not using weather events to justify routine projects, noting that the company had spent more than a year meeting with community stakeholders and using their feedback to make significant changes to its grid improvement plan.

This year, the North Carolina Utilities Commission finally approved a set of grid improvements that will cost customers $1.2 billion. But the commission reserved the right to deny Duke reimbursement of those costs if it cannot prove they are prudent and reasonable. The commission’s general counsel, Sam Watson, declined to discuss the decision, saying the commission can comment on specific cases only in public orders.

The utility is now burying power lines in “several neighborhoods across the state” that are most vulnerable to wide-scale outages, Brooks said. It is also fitting aboveground power lines with “self-healing” technology, a network of sensors that diverts electricity away from equipment failures to minimize the number of customers affected by an outage.

As part of a settlement with Vote Solar, Duke Energy last year agreed to work with state officials and local leaders to further evaluate the potential impacts of climate change, a process that Brooks said is expected to take two to three years.

High costs create hurdles
The debate in North Carolina is being echoed in states across the nation, where burying power lines has emerged as one of the most common proposals for insulating the grid from high winds, fires and flooding. But opponents have balked at the cost, which can run in the millions of dollars per mile.

In California, for example, Pacific Gas & Electric wants to bury 10,000 miles of power lines, both to make the grid more resilient and to reduce the risk of sparking wildfires. Its power equipment has contributed to multiple deadly wildfires in the past decade, including the 2018 Camp Fire that killed at least 85 people.

PG&E’s proposal has drawn scorn from critics, including San Jose Mayor Sam Liccardo, who say it would be too slow and expensive. But Patricia Poppe, the company’s CEO, told reporters that doing nothing would cost California even more in lost lives and property while struggling to keep the lights on during wildfires. The plan has yet to be submitted to the state, but Terrie Prosper, a spokeswoman for the California Public Utilities Commission, said the commission has supported underground lines as a wildfire mitigation strategy.

Another oft-floated solution is microgrids, small electrical systems that provide power to a single neighborhood, university or medical center. Most of the time, they are connected to a larger utility system. But in the event of an outage, microgrids can operate on their own, with the aid of solar energy stored in batteries.

In Florida, regulators recently approved a four-year microgrid pilot project, but the technology remains expensive and unproven. In Maryland, regulators in 2016 rejected a plan to spend about $16 million for two microgrids in Baltimore, in part because the local utility made no attempt to quantify “the tangible benefits to its customer base.”

Amid shut-off woes, a beacon of energy

In Texas, where officials have largely abandoned state regulation in favor of the free market, the results have been no more encouraging. Without requirements, as exist elsewhere, for building extra capacity for times of high demand or stress, the state was ill-equipped to handle an abnormal deep freeze in February that knocked out power to 4 million customers for days.

Since then, Berkshire Hathaway Energy and Starwood Energy Group each proposed spending $8 billion to build new power plants to provide backup capacity, with guaranteed returns on the investment of 9 percent, but the Texas legislature has not acted on either plan.

New York is one of the few states where regulators have assessed the risks of climate change and pushed utilities to invest in solutions. After 800,000 New Yorkers lost power for 10 days in 2012 in the wake of Hurricane Sandy, state regulators ordered utility giant Con Edison to evaluate the state’s vulnerability to weather events.

The resulting report, which estimated climate risks could cost the company as much as $5.2 billion by 2050, gave ConEd data to inform its investments in storm hardening measures, including new storm walls and submersible equipment in areas at risk of flooding.

Meanwhile, the New York Public Service Commission has aggressively enforced requirements that utility companies keep the lights on during big storms, fining utility providers nearly $190 million for violations including inadequate staffing during Tropical Storm Isaias in 2020.

“At the end of the day, we do not want New Yorkers to be at the mercy of outdated infrastructure,” said Rory M. Christian, who last month was appointed chair of the New York commission.

The price of inaction
In North Carolina, as Duke Energy slowly works to harden the grid, some are pursuing other means of fostering climate-resilient communities.

Beth Schrader, the recovery and resilience director for New Hanover County, which includes Wilmington, said some of the people who went the longest without power after Florence had no vehicles, no access to nearby grocery stores and no means of getting to relief centers set up around the city.

For example, Quanesha Mullins, a 37-year-old mother of three, went eight days without power in her housing project on Wilmington’s east side. Her family got by on food from the Red Cross and walked a mile to charge their phones at McDonald’s. With no air conditioning, they slept with the windows open in a neighborhood with a history of violent crime.

Schrader is working with researchers at the University of North Carolina in Charlotte to estimate the cost of helping people like Mullins. The researchers estimate that it would have cost about $572,000 to provide shelter, meals and emergency food stamp benefits to 100 families for two weeks, said Robert Cox, an engineering professor who researches power systems at UNC-Charlotte.

Such calculations could help spur local governments to do more to help vulnerable communities, for example by providing “resilience outposts” with backup power generators, heating or cooling rooms, Internet access and other resources, Schrader said. But they also are intended to show the costs of failing to shore up the grid.

“The regulators need to be moved along,” Cox said.

In the meantime, Tonye Gray finds herself worrying about what happens when the next storm hits. While Duke Energy says it is burying power lines in the most outage-prone areas, she has yet to see its yellow-vested crews turn up in her neighborhood.

“We feel,” she said, “that we’re at the end of the line.”

 

Related News

View more

UK Anticipates a 16% Decrease in Energy Bills in April

UK Energy Price Cap Cut 2024 signals relief as wholesale gas prices fall; Ofgem price cap drops per Cornwall Insight, aided by LNG supply, mild winter, despite Red Sea tensions and Ukraine conflict impacts.

 

Key Points

A forecast cut to Great Britain's Ofgem price cap as wholesale gas falls, easing typical annual household bills in 2024.

✅ Cap falls from £1,928 to £1,620 in April 2024

✅ Forecast £1,497 in July, then about £1,541 from October

✅ Drivers: lower wholesale gas, LNG supply, mild winter

 

Households in Great Britain are set to experience a significant reduction in energy costs this spring, with bills projected to drop by over £300 annually. This decrease is primarily due to a decline in wholesale gas prices, offering some respite to those grappling with the cost of living crisis.

Cornwall Insight, a well-regarded industry analyst, predicts a 16% reduction in average bills from the previous quarter, potentially reaching the lowest levels since the onset of the Ukraine conflict.

The industry’s price cap, indicative of the average annual bill for a typical household, is expected to decrease from the current £1,928, set earlier this month, to £1,620 in April – a reduction of £308 and £40 less than previously forecasted in December, as ministers consider ending the gas-electricity price link to improve market resilience.

Concerns about escalating tensions in the Red Sea, where Houthi rebels have disrupted global shipping, initially led analysts to fear an increase in wholesale oil prices and subsequent impact on household energy costs.

Contrary to these concerns, oil prices have remained relatively stable, and European gas reserves have been higher than anticipated during a mild winter, with European gas prices returning to pre-Ukraine war levels since November.

Cornwall Insight anticipates that energy prices will continue to be comparatively low through 2024. They predict a further decline to £1,497 for a typical annual bill from July, followed by a slight increase to £1,541 starting in October.

This forecast is a welcome development for Britons who have been dealing with increased expenses across various sectors, from food to utilities, amidst persistently high inflation rates, with energy-driven EU inflation hitting lower-income households hardest across member states.

Energy bills saw a steep rise in 2021, which escalated further due to the Ukraine conflict in 2022, driving up wholesale gas prices. This surge prompted government intervention to subsidize bills, with the UK price cap estimated to cost around £89bn to the public purse, capping costs to a typical household at £2,500.

Cornwall Insight noted that the supply of liquified natural gas to Europe had not been as adversely affected by the Red Sea disruptions as initially feared. Moreover, the UK has been well-supplied with gas from the US, which has become a more significant supplier since the Ukraine war, even as US electricity prices have risen to multi-decade highs. Contributing factors also include lower gas prices in Asia, mild weather, and robust gas availability.

Craig Lowrey, a principal consultant at Cornwall Insight, remarked that concerns about Red Sea events driving up energy prices have not materialized, allowing households to expect a reduction in prices.

On Monday, the next-month wholesale gas price dropped by 4% to 65p a therm.

However, Lowrey cautioned that a complete return to pre-crisis energy bill levels remains unlikely due to ongoing market impacts from shifting away from Russian energy sources and persistent geopolitical tensions, as well as policy changes such as Britain’s Energy Security Bill shaping market reforms.

Richard Neudegg, director of regulation at Uswitch, welcomed the potential further reduction of the price cap in April. However, he pointed out that this offers little solace to households currently struggling with high winter energy costs during the winter. Neudegg urged Ofgem, the energy regulator, to prompt suppliers to reintroduce more competitive and affordable fixed-price deals.

 

Related News

View more

Planning for Toronto?s Growing Electricity Needs

Toronto Grid Upgrade expands electricity capacity and reliability with new substations, upgraded transmission lines, and integrated renewable energy, supporting EV growth, sustainability goals, and resilient power for Toronto's growing residential and commercial sectors.

 

Key Points

A joint plan to boost grid capacity, add renewables, and improve reliability for Toronto's rising power demand.

✅ New substations and upgraded transmission lines increase capacity

✅ Integrates solar, wind, and storage for cleaner, reliable power

✅ Supports EV adoption, reduces outages, and future-proofs the grid

 

As Toronto's population and economy continue to expand, the surge in electricity demand in the city is also increasing rapidly. In response, the Ontario government, in partnership with the City of Toronto and various stakeholders, has launched an initiative to enhance the electricity infrastructure to meet future needs.

The Ontario Ministry of Energy and the City of Toronto are focusing on a multi-faceted approach that includes upgrades to existing power systems and the integration of renewable energy sources, as well as updated IoT cybersecurity standards for sector devices. This initiative is critical as Toronto looks towards a sustainable future, with projections indicating significant growth in both residential and commercial sectors.

Energy Minister Todd Smith highlighted the urgency of this project, stating, “With Toronto's growing population and dynamic economy, the need for reliable electricity cannot be overstated. We are committed to ensuring that our power systems are not only capable of meeting today's demands but are also future-proofed against the needs of tomorrow.”

The plan involves substantial investments in grid infrastructure to increase capacity and improve reliability. This includes the construction of new substations and the enhancement of old ones, along with the upgrading of transmission lines and exploration of macrogrids to strengthen reliability. These improvements are designed to reduce the frequency and severity of power outages while accommodating new developments and technologies such as electric vehicles, which are expected to place additional demands on the system.

Additionally, the Ontario government is exploring the potential for renewable energy sources, such as rooftop solar grids and wind, to be integrated into the city’s power grid. This shift towards green energy is part of a broader effort to reduce carbon emissions and promote environmental sustainability.

Toronto Mayor John Tory emphasized the collaborative nature of this initiative, stating, “This is a prime example of how collaboration between different levels of government and the private sector can lead to innovative solutions that benefit everyone. By enhancing our electricity infrastructure, we are not only improving the quality of life for our residents but also supporting Toronto's competitive edge as a global city.”

The project also includes a public engagement component, where citizens are encouraged to provide input on the planning and implementation phases. This participatory approach ensures that the solutions developed are in alignment with the needs and expectations of Toronto's diverse communities.

Experts agree that the timing of these upgrades is critical. As urban populations grow, the strain on infrastructure, especially in a powerhouse like Toronto, can lead to significant challenges. Proactive measures, such as those being implemented by Ontario and Toronto, and mirrored by British Columbia's clean energy shift underway on the west coast, are essential in avoiding potential crises and ensuring economic stability.

The success of this initiative could serve as a model for other cities facing similar challenges, highlighting the importance of forward-thinking and cooperation in urban planning and energy management. As Toronto moves forward with these ambitious plans, the eyes of the world, particularly other urban centers, will be watching and learning how to similarly tackle the dual challenges of growth and sustainability, with recent examples like London's newest electricity tunnel demonstrating large-scale grid upgrades.

This strategic approach to managing Toronto's electricity needs reflects a comprehensive understanding of the complexities involved in urban energy systems and a commitment to ensuring a resilient and sustainable future that aligns with Canada's net-zero grid by 2050 goals at the national level for all residents.

 

 

 

 

 

Related News

View more

Chinese govt rejects the allegations against CPEC Power Producers

CPEC Power Producers drive China-Pakistan energy cooperation under the Belt and Road Initiative, delivering clean, reliable electricity, investment transparency, and grid stability while countering allegations, cutting circular debt, and easing load-shedding nationwide.

 

Key Points

CPEC Power Producers are BRI-backed energy projects supplying clean, reliable power and stabilizing Pakistan's grid.

✅ Supply one-third of load during COVID-19 peak, ensuring reliability

✅ Reduce circular debt and mitigate nationwide load-shedding

✅ Operate under BRI with transparent, long-term investment

 

Chinese government has rejected the allegations against the CPEC Power Producers (CPPs) amid broader coal reduction goals in the power sector.

Chinese government has made it clear that a mammoth cooperation with Pakistan in the energy sector is continuing, aligned with its broader electricity outlook through 2060 and beyond.

A letter written by Chinese ambassador to minister of Energy Omar Ayub Khan has said that major headway has been seen in recent days in the perspective of CPEC projects, alongside China's nuclear energy development at home. But he wants to invite the attention of government of Pakistan to the recent allegations leveled against the CPEC Power Producers (CPPs).

The Chinese ambassador further said Energy is a major area of cooperation under the CPEC and the CPPs have provided large amount of clean, reliable and affordable electricity to the Pakistani consumers and have guaranteed one-third of the power load during the COVID-19 pandemic, even as China grappled with periodic power cuts domestically. However many misinformed analysis and media distortion about the CPPs have been made public to create confusion about the CPEC, amid global solar sector uncertainty influencing narratives. Therefore, the Port Qasim Electric Power Company, Huaneng Shandong Ruyi Energy Limited and the China Power Hub Generation Company Limited as leading CPPs have drafted their own reports in this regard to present the real facts about the investors and operators. The conclusion is the CPPs have contributed to overcoming of loadshedding and the reduction of the power circular debt.

Reports of the two companies have also been attached with the letter wherein it has been laid out that CPEC as a pilot project under the Belt and Road Initiative, which also includes regional nuclear energy cooperation efforts, is an important platform for China and Pakistan to build a stronger economic and development partnership.

Chinese companies have expressed strong reservations over report of different committees besides voicing protest over it. They have made it clear they are ready to present the real situation before the competent authorities and committee, and in parallel with electricity infrastructure initiatives abroad, because all the work is being carried out by Chinese companies in power sector in fair and transparent manner.

 

Related News

View more

Texas lawmakers propose electricity market bailout after winter storm

Texas Electricity Market Bailout proposes securitization bonds and ERCOT-backed fees after Winter Storm Uri, spreading costs via ratepayer charges on power bills to stabilize generators, co-ops, and retailers and avert bankruptcies and investor flight.

 

Key Points

State plan to securitize storm debts via ERCOT fees, adding bill charges to stabilize Texas power firms.

✅ Securitization bonds finance unpaid ancillary services and energy costs

✅ ERCOT fee spreads Winter Storm Uri debts across ratepayers statewide

✅ Aims to prevent bankruptcies, preserve grid reliability, reassure investors

 

An approximately $2.5 billion plan to bail out Texas’ distressed electricity market from the financial crisis caused by Winter Storm Uri in February has been approved by the Texas House.

The legislation would impose a fee — likely for the next decade or longer — on electricity companies, which would then get passed on to residential and business customers in their power bills, even as some utilities waived certain fees earlier in the crisis.

House lawmakers sent House Bill 4492 to the Senate on Thursday after a 129-15 vote. A similar bill is advancing in the Senate.

Some of the state’s electricity providers and generators are financially underwater in the aftermath of the February power outages, which left millions without power and killed more than 100 people. Electricity companies had to buy whatever power was available at the maximum rate allowed by Texas regulations — $9,000 per megawatt hour — during the week of the storm (the average price for power in 2020 was $22 per megawatt hour). Natural gas fuel prices also spiked more than 700% during the storm.

Several companies are nearing default on their bills to the Electric Reliability Council of Texas, which manages the Texas power grid that covers most of the state and facilitates financial transactions in it.

Rural electric cooperatives were especially hard hit; Brazos Electric Power Cooperative, which supplies electricity to 1.5 million customers, filed for bankruptcy citing a $1.8 billion debt to ERCOT.

State Rep. Chris Paddie, R-Marshall, the bill’s author, said a second bailout bill will be necessary during the current legislative session for severely distressed electric cooperatives.

“This is a financial crisis, and it’s a big one,” James Schaefer, a senior managing director at Guggenheim Partners, an investment bank, told lawmakers at a House State Affairs Committee hearing in early April. He warned that more bankruptcies would cause higher costs to customers and hurt the state’s image in the eyes of investors.

“You’ve got to free the system,” Schaefer said. “It’s horrible that a bunch of folks have to pay, but it’s a system-wide failure. If you let a bunch of folks crash, it’s not a good look for your state.”

If approved by the Senate and Gov. Greg Abbott, a newly-created Texas Electric Securitization Corp. would use the money raised from the fees for bonds to help pay the companies’ debts, including costs for ancillary services, a financial product that helps ensure power is continuously generated and improve electricity reliability across the grid.

Paddie told his colleagues Wednesday that he could not yet estimate how long the new fee would be imposed, but during committee hearings lawmakers estimated it’s likely to be at least a decade. Several other bills to spread out the costs of the winter storm and consider market reforms are also moving through the Legislature.

ERCOT’s independent market monitor recommended in March that energy sold during that period be repriced at a lower rate, which would have allowed ERCOT to claw back about $4.2 billion in payments to power generators, but the Public Utility Commission declined to do so, even as a court ruling on plant obligations in emergencies drew scrutiny among market participants.

Instead, lawmakers are pushing for bailouts that several energy experts have said is needed, both to ensure distressed companies don’t pass enormous costs on to their customers and to prevent electricity investors and companies from leaving the state if it’s viewed as too risky to continue doing business.

Becky Klein, an energy consultant in Austin and former chair of the Public Utility Commission who played a key role in de-regulating Texas’ electricity market two decades ago, said during a retail electricity panel hosted by Integrate that legislation is necessary to provide “some kind of backstop during a crazy market crisis like this to show the financial market that we’re willing to provide some relief.”

Still, some lawmakers are concerned with how they will win public support, including potential voter-approved funding measures, for bills to bail out the state’s electricity market.

“I have to go back to Laredo and say, ‘I know you didn’t have electricity for several days, but now I’m going to make you pay a little more for the next 20 years,’” state Rep. Richard Peña Raymond, D-Laredo, said during an early April discussion on the plan in the House State Affairs Committee. He said he voted for the bill because it’s in the best interest of the state.

Paddie, during the same committee hearing, acknowledged that “none of us want to increase fees or taxes.” However, he said, “We have to deal with the reality set before us.”

 

Related News

View more

Can California Manage its Solar Boom?

California Duck Curve highlights midday solar oversupply and steep evening peak demand, stressing grid stability. Solutions include battery storage, demand response, diverse renewables like wind, geothermal, nuclear, and regional integration to reduce curtailment.

 

Key Points

A mismatch between midday solar surplus and evening demand spikes, straining the grid without storage and flexibility.

✅ Midday solar oversupply forces curtailment and wasted clean energy.

✅ Evening ramps require fast, fossil peaker plants to stabilize load.

✅ Batteries, demand response, regional trading flatten the curve.

 

California's remarkable success in adopting solar power, including a near-100% renewable milestone, has created a unique challenge: managing the infamous "duck curve." This distinctive curve illustrates a growing mismatch between solar electricity generation and the state's energy demands, creating potential problems for grid stability and ultimately threatening to slow California's progress in the fight against climate change.


The Shape of the Problem

The duck curve arises from a combination of high solar energy production during midday hours and surging energy demand in the late afternoon and evening when solar power declines. During peak solar hours, the grid often has an overabundance of electricity, and curtailments are increasing as a result, while as the sun sets, demand surges when people return home and businesses ramp up operations. California's energy grid operators must scramble to make up this difference, often relying on fast-acting but less environmentally friendly power sources.


The Consequences of the Duck Curve

The increasing severity of the duck curve has several potential consequences for California:

  • Grid Strain: The rapid ramp-up of power sources to meet evening demand puts significant strain on the electrical grid. This can lead to higher operational costs and potentially increase the risk of blackouts during peak demand times.
  • Curtailed Energy: To avoid overloading the grid, operators may sometimes have to curtail excess solar energy during midday, as rising curtailment reports indicate, essentially wasting clean electricity that could have been used to displace fossil fuel generation.
  • Obstacle to More Solar: The duck curve can make it harder to add new solar capacity, as seen in Alberta's solar expansion challenges, for fear of further destabilizing the grid and increasing the need for fossil fuel-based peaking plants.


Addressing the Challenge

California is actively seeking solutions to mitigate the duck curve, aligning with national decarbonization pathways that emphasize practicality. Potential strategies include:

  • Energy Storage: Deploying large-scale battery storage can help soak up excess solar electricity during the day and release it later when demand peaks, smoothing out the duck curve.
  • Demand Flexibility: Encouraging consumers to shift their energy use to off-peak hours through incentives and smart grid technologies can help reduce late-afternoon surges in demand.
  • Diverse Power Sources: While solar is crucial, a balanced mix of energy sources, including geothermal, wind, and nuclear, can improve grid stability and reduce reliance on rapid-response fossil fuel plants.
  • Regional Cooperation: Integrating California's grid with neighboring states can aid in balancing energy supply and demand across a wider geographical area.


The Ongoing Solar Debate

The duck curve has become a central point of debate about the future of California's energy landscape. While acknowledging the challenge, solar advocates argue for continued expansion, backed by measures like a bill to require solar on new buildings, emphasizing the urgent need to transition away from fossil fuels. Grid operators and some utility companies call for a more cautious approach, emphasizing grid reliability and potential costs if the problem isn't effectively managed.


Balancing California's Needs and its Green Ambitions

Finding the right path forward is essential; it will determine whether California can continue to lead the way in solar energy adoption while ensuring a reliable and affordable electricity supply. Successfully navigating the duck curve will require innovation, collaboration, and a strong commitment to building a sustainable energy system, as wildfire smoke impacts on solar continue to challenge generation predictability.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2025 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified