Utilities pull application for Virginia power line

California Electricity Reserve Mandate requires 3.3 GW of new capacity to bolster grid reliability amid solar power volatility, peak demand, and wildfire-driven blackouts, as CPUC directs PG&E, Edison, and Sempra to procure resource adequacy.

Key Points

A CPUC order for utilities to add 3.3 GW of reserves, safeguarding grid reliability during variable renewables and peaks

✅ 3.3 GW procurement to meet resource adequacy targets

✅ Focus on grid reliability during peak evening demand

✅ Prioritizes renewables, storage; limits new fossil builds

As if California doesn’t have enough problems with its electric service, now state regulators warn the state may be short on power supplies by 2021 if utilities don’t start lining up new resources now.

In the hopes of heading off a shortfall as America goes electric, the California Public Utilities Commission has ordered the state’s electricity providers to secure 3.3 additional gigawatts of reserve supplies. That’s enough to power roughly 2.5 million homes. Half of it must be in place by 2021 and the rest by August 2023.

The move comes as California is already struggling to accommodate increasingly large amounts of solar power that regularly send electricity prices plunging below zero and force other generators offline so the region’s grid doesn’t overload. The state is also still reeling from a series of deliberate mass blackouts that utilities imposed last month to keep their power lines from sparking wildfires amid strong winds. And its largest power company, PG&E Corp., went bankrupt in January.

Now as natural gas-fired power plants retire under the state’s climate policies, officials are warning the state could run short on electricity on hot evenings, when solar production fades and commuters get home and crank up their air conditioners. “We have fewer resources that can be quickly turned on that can meet those peaks,” utilities commission member Liane Randolph said Thursday before the panel approved the order to beef up reserves.

The 3.3 gigawatts that utilities must line up is in addition to a state rule requiring them to sign contracts for 15% more electricity than they expect to need. Some critics question the need for added supplies, particularly after the state went on a plant-building boom in the 2000s.

But California’s grid managers say the risk of a shortfall is real and could be as high as 4.7 gigawatts, especially during heat waves that test the grid again. Mark Rothleder, with the California Independent System Operator, said the 15% cushion is a holdover from the days before big solar and wind farms made the grid more volatile. Now it may need to be increased, he said.

“We’re not in that world anymore,” said Rothleder, the operator’s vice president of state regulatory affairs. “The complexity of the system and the resources we have now are much different.”

The state’s three major utilities, PG&E, Edison International and Sempra Energy, will be largely responsible for securing new supplies. The commission banned fossil fuels from being used at any new power generators built to meet the requirement — though it left the door open for expansions at existing ones.

Some analysts argue California is exporting its energy policies to Western states, making electricity more costly and less reliable.

PG&E said in an emailed statement that it was pleased the commission didn’t adopt an earlier proposal to require 4 gigawatts of additional resources. Edison similarly said it was “supportive.” Sempra didn’t immediately respond with comment.

Extending Deadlines

The pending plant closures are being hastened by a 2020 deadline requiring California’s coastal generators to stop using aging seawater-cooling systems. Some gas-fired power plants have said they’ll simply close instead of installing costly new cooling systems. So the commission on Thursday also asked California water regulators to extend the deadline for five plants.

The Sierra Club, meanwhile, called on regulators to turn away from fossil fuels altogether, saying their decision Thursday “sets California back on its progress toward a clean energy future.”

The move to push back the deadline also faces opposition from neighboring towns. Redondo Beach Mayor Bill Brand, whose city is home to one of the plants in line for an extension, told the commission it wasn’t necessary, since California utilities already have plenty of electricity reserves.

“It’s just piling on to that reserve margin,” Brand said.

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OPG Credit Rating affirmed by DBRS at A (low) issuer and unsecured debt, R-1 (low) CP, Stable trends, backed by a supportive regulatory regime, strong leverage metrics, and provincial support; monitor Darlington Refurbishment costs.

Key Points

It is DBRS's confirmation of OPG at A (low) issuer and unsecured, R-1 (low) CP, with Stable outlooks.

✅ Stable trends; strong cash flow-to-debt and capital ratios

✅ Provincial financing via OEFC; Fair Hydro Trust ring-fenced

✅ Darlington Refurbishment on budget; cost overruns remain risk

DBRS Limited (DBRS) confirmed the Issuer Rating and the Unsecured Debt rating of Ontario Power Generation Inc. (OPG or the Company) at A (low) and the Commercial Paper (CP) rating at R-1 (low), amid sector developments such as Hydro One leadership efforts to repair government relations and measures like staff lockdowns at critical sites.

All trends are Stable. The ratings of OPG continue to be supported by (1) the reasonable regulatory regime in place for the Company's regulated generation facilities, including stable pricing signals for large users, (2) strong cash flow-to-debt and debt-to-capital ratios and (3) continuing financial support from its shareholder, the Province of Ontario (the Province; rated AA (low) with a Stable trend by DBRS). The Province, through its agent, the Ontario Electricity Financial Corporation (rated AA (low) with a Stable trend by DBRS), provides most of OPG's financing (approximately 43% of consolidated debt). The Company's remaining debt includes project financing (31%), including projects such as a battery energy storage system proposed near Woodstock, non-recourse debt issued by Fair Hydro Trust (Senior Notes rated AAA (sf), Under Review with Negative Implications by DBRS; 11%), CP (2%) and Senior Notes issued under the Medium Term Note Program (12%).

In March 2019, the Province introduced 'Bill 87, Fixing the Hydro Mess Act, 2019' which includes winding down the Fair Hydro Plan, and later introduced electricity relief to mitigate customer bills during the COVID-19 pandemic. OPG will remain as the Financial Services Manager for the outstanding Fair Hydro Trust debt, which will become obligations of the Province. DBRS does not expect this development to have a material impact on the Company as (1) the Fair Hydro Trust debt will continue to be bankruptcy-remote and ring-fenced from OPG (all debt is non-recourse to the Company) and (2) the credit rating on the Company's investment in the Subordinated Notes (rated AA (sf), Under Review with Negative Implications by DBRS) will likely remain investment grade while the Junior Subordinated Notes (rated A (sf), Under Review with Developing Implications by DBRS) will not necessarily be negatively affected by this change (see the DBRS press release, 'DBRS Maintains Fair Hydro Trust, Series 2018-1 and Series 2018-2 Notes Under Review,' dated March 26, 2019, for more details).

OPG's key credit metrics improved in 2018, following the approval of its 2017-2021 rates application by the Ontario Energy Board in December 2017, alongside the Province's energy-efficiency programs that shape demand. The Company's profitability strengthened significantly, with corporate return on equity (ROE) of 7.8% (adjusted for a $205 million gain on sale of property; 5.1% in 2017) closer to the regulatory allowed ROE of 8.78%. However, DBRS continues to view a positive rating action as unlikely in the short term because of the ongoing large capital expenditures program, including the $12.8 billion Darlington Refurbishment project, amid ongoing oversight following the nuclear alert investigation in Ontario. However, a downgrade could occur should there be significant cost overruns with the Darlington Refurbishment project that result in stranded costs. DBRS notes that the Darlington Refurbishment project is currently on budget and on schedule.

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San Francisco Battery-Electric Ferries will deliver zero-emission, high-speed passenger service powered by Wartsila electric propulsion, EPMS, IAS, batteries, and shore power, advancing maritime decarbonization under the REEF program and USCG Subchapter T standards.

Key Points

They are the first US zero-emission high-speed passenger ferries using integrated electric propulsion and shore power

✅ Dual 625 kW motors enable up to 24-knot service speeds

✅ EPMS, IAS, DC hub, and shore power streamline operations

✅ Built to USCG Subchapter T for safety and compliance

Wartsila, a global leader in sustainable marine technology, has been selected to supply the electric propulsion system for the United States' first fully battery-electric, zero-emission high-speed passenger ferries. This significant development marks a pivotal step in the decarbonization of maritime transport, aligning with California's ambitious environmental goals, including recent clean-transport investments across ports and corridors.

A Leap Toward Sustainable Maritime Transport

The project, commissioned by All American Marine (AAM) on behalf of San Francisco Bay Ferry, involves the construction of three 150-passenger ferries, reflecting broader U.S. advances like the Washington State Ferries hybrid upgrade now underway. These vessels will operate on new routes connecting the rapidly developing neighborhoods of Treasure Island and Mission Bay to downtown San Francisco. The ferries are part of the Rapid Electric Emission Free (REEF) Ferry Program, a comprehensive initiative by San Francisco Bay Ferry to transition its fleet to zero-emission propulsion technology. The first vessel is expected to join the fleet in early 2027.

Wärtsilä’s Role in the Project

Wärtsilä's involvement encompasses the supply of a comprehensive electric propulsion system, including the Energy and Power Management System (EPMS), integrated automation system (IAS), batteries, DC hub, transformers, electric motors, and shore power supply. This extensive scope underscores Wärtsilä’s expertise in providing integrated solutions for emission-free marine transportation. The company's extensive global experience in developing and supplying integrated systems and solutions for zero-emission high-speed vessels, as seen with electric ships on the B.C. coast operating today, was a key consideration in the selection process.

Technical Specifications of the Ferries

The ferries will be 100 feet (approximately 30 meters) in length, with a beam of 26 feet and a draft of 5.9 feet. Each vessel will be powered by dual 625-kilowatt electric motors, enabling them to achieve speeds of up to 24 knots. The vessels will be built to U.S. Coast Guard Subchapter T standards, ensuring compliance with stringent safety regulations.

Environmental and Operational Benefits

The transition to battery-electric propulsion offers numerous environmental and operational advantages. Electric ferries produce zero emissions during operation, as demonstrated by Berlin's electric ferry deployments, significantly reducing the carbon footprint of maritime transport. Additionally, electric propulsion systems are generally more efficient and require less maintenance compared to traditional diesel engines, leading to lower operational costs over the vessel's lifespan.

Broader Implications for Maritime Decarbonization

This project is part of a broader movement toward sustainable maritime transport in the United States. San Francisco Bay Ferry has also approved the purchase of two larger 400-passenger battery-electric ferries for transbay routes, further expanding its commitment to zero-emission operations. The agency has secured approximately $200 million in funding from local, state, and federal sources, echoing infrastructure bank support seen in B.C., to support these initiatives, including vessel construction and terminal electrification.

Wartsila’s involvement in this project highlights the company's leadership in the maritime industry's transition to sustainable energy solutions, including hybrid-electric pathways like BC Ferries' new hybrids now in service. With a proven track record in supplying integrated systems for zero-emission vessels, Wärtsilä is well-positioned to support the global shift toward decarbonized maritime transport.

As the first fully battery-electric high-speed passenger ferries in the United States, these vessels represent a significant milestone in the journey toward sustainable and environmentally responsible maritime transportation, paralleling regional advances such as the Kootenay Lake electric-ready ferry entering service. The collaboration between Wärtsilä, All American Marine, and San Francisco Bay Ferry exemplifies the collective effort required to realize a zero-emission future for the maritime industry.

The deployment of these battery-electric ferries in San Francisco Bay not only advances the city's environmental objectives but also sets a precedent for other regions to follow. With continued innovation and collaboration, the maritime industry can look forward to a future where sustainable practices are the standard, not the exception.

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Smart Street Lighting NY delivers Syracuse-wide LED retrofits with smart controls, Wi-Fi, and sensors, saving $3.3 million annually and cutting nearly 8,500 tons of greenhouse gases, improving energy efficiency, safety, and maintenance.

Key Points

A NYPA-backed program replacing streetlights with LED and controls to cut costs and emissions across New York by 2025.

✅ Syracuse replaced 17,500 fixtures with LED and smart controls.

✅ Saves $3.3M yearly; cuts 8,500 tons CO2e; improves safety.

✅ NYPA financing and maintenance support enable Smart City sensors.

Governor Andrew M. Cuomo today announced the completed installation of energy-efficient LED streetlights throughout the City of Syracuse as part of the Governor's Smart Street Lighting NY program. Syracuse, through a partnership with the New York Power Authority, replaced all of its streetlights with the most comprehensive set of innovative Smart City technologies in the state, saving the city $3.3 million annually and reducing greenhouse gas emissions by nearly 8,500 tons a year--the equivalent of taking more than 1,660 cars off the road. New York has now replaced more than 100,000 of its streetlights with LED fixtures, reflecting broader state renewable ambitions across the country, a significant milestone in the Governor's goal to replace at least 500,000 streetlights with LED technology by 2025 under Smart Street Lighting NY.

Today's announcement directly supports the goals of the Climate Leadership and Community Protection Act, the most aggressive climate change law in the nation, through the increased use of energy efficiency, exemplified by Seattle City Light's program that helps customers reduce bills, to annually reduce electricity demand by three percent--equivalent to 1.8 million New York households--by 2025.

"As we move further into the 21st century, it's critical we make the investments necessary for building smarter, more sustainable communities and that's exactly what we are doing in Syracuse," Governor Cuomo said. "Not only is the Smart Street Lighting NY program reducing the city's carbon footprint, but millions of taxpayer dollars will be saved thanks to a reduction in utility costs. Climate change is not going away and it is these types of smart, forward-thinking programs which will help communities build towards the future."

The more than $16 million cutting-edge initiative, implemented by NYPA, includes the replacement of approximately 17,500 streetlights throughout the city with SMART, LED fixtures, improving lighting quality and neighborhood safety while saving energy and maintenance costs. The city's streetlights are now outfitted with SMART controls that provide programmed dimming ability, energy metering, fault monitoring, and additional tools for emergency services through on-demand lighting levels.

"The completion of the replacement of LED streetlights in Syracuse is part of our overall efforts to upgrade more than 100,000 streetlights across the state," Lieutenant Governor Kathy Hochul said. "The new lights will save the city $3.3 million annually, helping to reduce cost for energy and maintenance and reducing greenhouse gas emissions. These new light fixtures will also help to improve safety and provide additional tools for emergency services. The conversion of streetlights statewide to high-tech LED fixtures will help local governments and taxpayers save money, while increasing efficiency and safety as we work to build back better and stronger for the future."

NYPA provided Syracuse with a $500,000 Smart Cities grant for the project. The city utilized the additional funding to support special features on the streetlights that demonstrate the latest in Smart City technologies, focused on digital connectivity, environmental monitoring and public safety. These features are expected to be fully implemented in early 2021.

Connectivity: The city is planning to deploy exterior Wi-Fi at community centers and public spaces, including in neighborhoods in need of expanded digital network services.

Environmental Monitoring: Ice and snow detection systems that assist city officials in pinpointing streets covered in ice or snow and require attention to prevent accidents and improve safety. The sensors provide data that can tell the city where salt trucks and plows are most needed instead of directing trucks to drive pre-determined routes. Flood reporting and monitoring systems will also be installed.

Public Safety and Property Protection: Illegal dumping and vandalism detection sensors will be installed at strategic locations to help mitigate these disturbances. Vacant house monitoring will also be deployed by the city. The system can monitor for potential fires, detect motion and provide temperature and humidity readings of vacant homes. Trash bin sensors will be installed at various locations throughout the city that will detect when a trash bin is full and alert local officials for pick-up.

NYPA President and CEO Gil C. Quiniones said, "Syracuse is truly a pioneer in its exploration of using SMART technologies to improve public services and the Power Authority was thrilled to partner with the city on this innovative initiative. Helping our customers bring their streetlights into the future further advances NYPA's reputation as a first-mover in the energy-sector."

New York State Public Service Commission Chair John B. Rhodes said, "Governor Cuomo signed legislation making it easier for municipalities to purchase and upgrade their street lighting systems. With smart projects like these, cities such as Syracuse can install state-of-the-art, energy efficient lights and take control over their energy use, lower costs to taxpayers and protect the environment."

Mayor Ben Walsh said, "Governor Cuomo and the New York Power Authority have helped power Syracuse to the front of the pack of cities in the U.S., leveraging SMART LED lighting to save money and make life better for our residents. Because of our progress, even in the midst of a global pandemic, the Syracuse Surge, our strategy for inclusive growth in the New Economy, continues to move forward. Syracuse and all of New York State are well positioned to lead the nation and the world because of NYPA's support and the Governor's leadership."

To date, NYPA has installed more than 50,000 LED streetlights statewide, with more than 115,000 lighting replacements currently implemented. Some of the cities and towns that have already converted to LED lights, in collaboration with NYPA, include Albany, Rochester, and White Plains. In addition, the Public Service Commission, whose ongoing retail energy markets review informs consumer protections, in conjunction with investor-owned utilities around the state, has facilitated the installation of more than 50,000 additional LED lights.

The NYPA Board of Trustees, in support of the Smart Street Lighting NY program, authorized at its September meeting the expenditure of $150 million over the next five years to secure the services of Candela Systems in Hawthorne, D&M Contracting in Elmsford and E-J Electric T&D in Wallingford, Connecticut, while in other regions, city officials take a clean energy message to Georgia Power and the PSC to spur utility action. All three firms will work on behalf of NYPA to continue to implement LED lighting replacements throughout New York State to meet the Governor's goal of 500,000 LED streetlights installed by 2025.

Smart Street Lighting NY: Energy Efficient and Economically Advantageous

NYPA is working with cities, towns, villages and counties throughout New York to fully manage and implement a customer's transition to LED streetlight technology. NYPA provides upfront financing for the project, and during emergencies, New York's utility disconnection moratorium helps protect customers while payments to NYPA are made in the years following from the cost-savings created by the reduced energy use of the LED streetlights, which are 50 to 65 percent more efficient than alternative street lighting options.

Through this statewide street lighting program, NYPA's government customers are provided a wide-array of lighting options to help meet their individual needs, including specifications on the lights to incorporate SMART technology, which can be used for dozens of other functions, such as cameras and other safety features, weather sensors, Wi-Fi and energy meters.

To further advance the Governor's effort to replace existing New York street lighting, in 2019, NYPA launched a new maintenance service to provide routine and on-call maintenance services for LED street lighting fixtures installed by NYPA throughout the state, and during the COVID-19 response, New York and New Jersey suspended utility shut-offs to protect customers and maintain essential services. The new service is available to municipalities that have engaged NYPA to implement a LED street lighting conversion and have elected to install an asset management controls system on their street lighting system, reducing the number of failures and repairs needed after installation is complete.

To learn more about the Smart Street Lighting NY program, visit the program webpage on NYPA's website.

New York State's Nation-Leading Climate Plan

Governor Cuomo's nation-leading climate plan is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State builds back better as it recovers from the COVID-19 pandemic. Enshrined into law through the CLCPA, New York is on a path to reach its mandated goals of economy wide carbon neutrality and achieving a zero-carbon emissions electricity sector by 2040, similar to Ontario's clean electricity regulations that advance decarbonization, faster than any other state. It builds on New York's unprecedented ramp-up of clean energy including a $3.9 billion investment in 67 large-scale renewable projects across the state, the creation of more than 150,000 jobs in New York's clean energy sector, a commitment to develop over 9,000 megawatts of offshore wind by 2035, and 1,800 percent growth in the distributed solar sector since 2011. New York's Climate Action Council is working on a scoping plan to build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 40 percent of the benefits of clean energy investments benefit disadvantaged communities, and advancing progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 TBtus.

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NTPC Bangladesh Power Supply Tender sees NVVN win 300 MW, long-term cross-border electricity trade to BPDB, enabled by 500 MW HVDC interconnection; rivals included Adani, PTC, and Sembcorp in the competitive bidding process.

Key Points

It is NTPC's NVVN win to supply 300 MW to Bangladesh's BPDB for 15 years via a 500 MW HVDC link.

✅ NVVN selected as L1 for short and long-term supply

✅ 300 MW to BPDB; delivery via India-Bangladesh HVDC link

✅ Competing bidders: Adani, PTC, Sembcorp

NTPC, India’s biggest electricity producer in a nation that is now the third-largest electricity producer globally, on Tuesday said it has won a tender to supply 300 megawatts (MW) of electricity to Bangladesh for 15 years.

Bangladesh Power Development Board (BPDP), in a market where Bangladesh's nuclear power is expanding with IAEA assistance, had invited tenders for supply of 500 MW power from India for short term (1 June, 2018 to 31 December, 2019) and long term (1 January, 2020 to 31 May, 2033). NTPC Vidyut Vyapar Nigam (NVVN), Adani Group, PTC and Singapore-bases Sembcorp submitted bids by the scheduled date of 11 January.

Financial bid was opened on 11 February, the company said in a statement, amid rising electricity prices domestically. “NVVN, wholly-owned subsidiary of NTPC Limited, emerged as successful bidder (L1), both in short term and long term for 300 MW power,” it said.

Without giving details of the rate at which power will be supplied, NTPC said supply of electricity is likely to commence from June 2018 after commissioning of 500 MW HVDC inter-connection project between India and Bangladesh, and as the government advances nuclear power initiatives to bolster capacity in the sector. India currently exports approximately 600 MW electricity to Bangladesh even as authorities weigh coal rationing measures to meet surging demand domestically.

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Toyota and Honda Moving e delivers hydrogen backup power via a fuel cell bus, portable batteries, and power exporters for disaster relief, emergency electricity, and grid outage support near charging stations and microgrids.

Key Points

A hydrogen mobile power system using a fuel cell bus and batteries to supply emergency electricity during disasters.

✅ Fuel cell bus outputs up to 18 kW, 454 kWh capacity

✅ Portable batteries and power exporter deliver site power

✅ Supports disaster relief near hydrogen charging stations

Without the uninterrupted supply of power and electricity, modern economies would be unable to function. A blackout can impact everything from transport to health care, communication, and even water supplies, as seen in a near-blackout in Japan that strained the grid. It is one of the key security concerns for every government on earth, a point underscored by Fatih Birol on electricity options during the pandemic, and the growth in the market for backup power reflects that fact. In 2018, the global Backup Power market was $14.9 billion and is expected to reach $22 billion by the end of 2025, growing at a CAGR of 5.0 percent between 2019 and 2025.

It is against this backdrop that Toyota and Honda have come up with a new and innovative solution to providing electricity during disasters. The two transport giants have launched a mobile power generation system that consists of a fuel cell bus that can carry a large amount of hydrogen, aligned with Japan's hydrogen energy system efforts underway, portable external power output devices, and portable batteries to disaster zones. The system, which is called ‘Moving e’ includes Toyota’s charging station fuel cell bus, Honda’s power exporter 9000 portable external power output device, two types of Honda’s portable batteries, and a Honda Mobile Power Pack Charge & Supply Concept charger/discharger for MPP. 

In simple terms, the bus would drive to a disaster zone, and while other approaches such as gravity energy storage are advancing, the portable batteries and power output devices would be used to extract electricity from the fuel cell bus and provide it wherever it is needed. The bus itself can generate 454kWh and has a maximum output of 18kW. That is more than enough energy to supply electricity for large indoor areas such as an evacuation area. The bus is also fitted with space for people to nap or rest during a disaster.

The two companies plan to test the effectiveness of the Moving e at multiple municipalities and businesses. These locations will have to be within 100km of a hydrogen station that is capable of refueling the bus. If the bus has to drive 200km, then its electricity supply to the disaster zone would drop from 490kwh to 240kWh. While there aren’t currently enough hydrogen stations to make this a realistic scenario for all disaster zones, especially as countries push for hydrogen-ready power plants in Germany and related infrastructure, hydrogen is growing increasingly competitive with gasoline and diesel.

While gas generators are still considered more reliable and generally cheaper than backup batteries for home use, cleaner backup power is growing increasingly popular, and novel storage like power-to-gas in Europe is also advancing across grids. This latest development by Toyota and Honda is another step forward for the battery and fuel cell industry, with initiatives like PEM hydrogen R&D in China accelerating progress, – especially considering the meteoric rise of hydrogen energy in recent years.
 

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