New Toronto plant will deliver power to the people

By Toronto Sun


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A monster under construction on Toronto's waterfront threatens our city.

But if you like air conditioning, it's the key to keeping the lights on in the next sweltering heat wave.

Technically it's the Portlands Energy Centre. A $730-million, 550-megawatt natural gas energy plant that will bring power to the City of Toronto's electricity grid.

That's the good news. The bad news is it's an environmentalist's and a waterfront planner's worst nightmare.

This is really about industrializing Toronto's waterfront, critics like Mayor David Miller say.

The optics are brutal, with the plant going up next door to the now-shuttered Hearn generating plant.

Yes, it's near the water. It's also at the end of the portlands where the "concrete campus," as it's being called, will be built. A new Canadian Tire opens nearby this fall.

So why build it here? Convenience. Because there are already power lines and a hydro substation built to move power from the old hydro plant which can be adapted for this one.

Most importantly, it doesn't use the existing, maxed-out power lines. Toronto has two circuits into the city, one from the east, one from the west, and that's it.

On a hot, humid day, with air conditioners around the city blowing full blast, Toronto's power grid operates at full tilt. On June 26, the Independent Electricity Service Operator (IESO) begged Torontonians to ease off on the A/C because the transmission lines couldn't bring any more power into the city.

With three Pickering nuclear plant units out of service, there was no way to generate extra power locally, either.

"All the power for Toronto - with all due respect to the windmill - is produced outside the city," the IESO's Terry Young said.

Toronto's transmission system is aging and Young said it's important to find ways to take the stress off.

Putting power where it's needed helps reduce stress on the entire grid.

Toronto is the only major city in North America not producing power within its city limits, Young said.

(New York City requires 75% of its electricity generation to occur within its five boroughs.)

We'd be in the dark already without the incredible efforts of Torontonians, Toronto Hydro and the Ontario Power Authority to conserve energy, taking hundreds of megawatts of demand off the system.

The problem is that at the same time, dozens of new condo buildings have been constructed, bringing with them massive air conditioning demands.

"Air conditioning is one of the biggest draws of power," Young said. "Ontario used to use the highest amount of energy in the winter. Now, it's the summer."

Toronto is adding a city the size of Peterborough to its population every four years. It takes a lot of power to keep up.

The IESO projects without new power generation in the city, there would be brownouts and possibly blackouts by next summer.

"There are very few options," Young said. "Newly-generated power can't make it into the city because the transmission lines are overloaded. The only way is to reduce demand, but sometimes demand spikes in the blink of an eye."

When that happens, either the hydro companies cut the voltage or there are blackouts. That doesn't mean you have to like the new power plant.

Just ask Coun. Paula Fletcher. She detests the view emerging from Commissioners St., across the turning basin. It used to be just the Hearn.

"If you look across, it's blocked off the view of a beautiful waterfront," Fletcher says. "It could have been in the Hearn."

That "beautiful view" line is a bit rich. But why not in the Hearn?

Well, the engineers took us inside the old building, pointed up at a bunch of things and said, "See?"

(It would take a smarter person than me to figure it out, but the technical mumbo jumbo sounded good.)

Fletcher says the power seekers believe there's a supply problem. She believes there's a demand problem.

She advocates green buildings and smart technology, such as having buildings store power overnight, then use it to help the power grid during peak hours.

Still, Fletcher and her cronies need to know, as much as we conserve, our thirst for energy doesn't seem to end. And as our population grows, I'll take another power plant over blackouts any day.

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U.S. Announces $28 Million To Advance And Deploy Hydropower Technology

DOE Hydropower Funding advances clean energy R&D, pumped storage hydropower, retrofits for non-powered dams, and fleet modernization under the Bipartisan Infrastructure Law and Inflation Reduction Act, boosting long-duration energy storage, licensing studies, and sustainability engagement.

 

Key Points

A $28M DOE initiative supporting hydropower R&D, pumped storage, retrofits, and stakeholder sustainability efforts.

✅ Funds retrofits for non-powered dams, expanding low-impact supply

✅ Backs studies to license new pumped storage facilities

✅ Engages stakeholders on modernization and environmental impacts

 

The U.S. Department of Energy (DOE) today announced more than $28 million across three funding opportunities to support research and development projects that will advance and preserve hydropower as a critical source of clean energy. Funded through President Biden’s Bipartisan Infrastructure Law, this funding will support the expansion of low-impact hydropower (such as retrofits for dams that do not produce power) and pumped storage hydropower, the development of new pumped storage hydropower facilities, and engagement with key voices on issues like hydropower fleet modernization, sustainability, and environmental impacts. President Biden’s Inflation Reduction Act also includes a standalone tax credit for energy storage, which will further enhance the economic attractiveness of pumped storage hydropower. Hydropower will be a key clean energy source in transitioning away from fossil fuels and meeting President Biden’s goals of 100% carbon pollution free electricity by 2035 through a clean electricity standard policy pathway and a net-zero carbon economy by 2050.

“Hydropower has long provided Americans with significant, reliable energy, which will now play a crucial role in achieving energy independence and protecting the climate,” said U.S. Secretary of Energy Jennifer M. Granholm. “President Biden’s Agenda is funding critical innovations to capitalize on the promise of hydropower and ensure communities have a say in building America’s clean energy future, including efforts to revitalize coal communities through clean projects.” 

Hydropower accounts for 31.5% of U.S. renewable electricity generation and about 6.3% of total U.S. electricity generation, with complementary programs to bolster energy security for rural communities supporting grid resilience, while pumped storage hydropower accounts for 93% of U.S. utility-scale energy storage, ensuring power is available when homes and businesses need it, even as the aging U.S. power grid poses challenges to renewable integration.  

The funding opportunities include, as part of broader clean energy funding initiatives, the following: 

  • Advancing the sustainable development of hydropower and pumped storage hydropower by encouraging innovative solutions to retrofit non-powered dams, the development and testing of technologies that mitigate challenges to pumped storage hydropower deployment, as well as opportunities for organizations not extensively engaged with DOE’s Water Power Technologies Office to support hydropower research and development. (Funding amount: $14.5 million) 
  • Supporting studies that facilitate the FERC licensing process and eventual construction and commissioning of new pumped storage hydropower facilities to facilitate the long-duration storage of intermittent renewable electricity. (Funding amount: $10 million)
  • Uplifting the efforts of diverse hydropower stakeholders to discuss and find paths forward on topics that include U.S. hydropower fleet modernization, hydropower system sustainability, and hydropower facilities’ environmental impact. (Funding amount: $4 million) 

 

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Electric cars will challenge state power grids

Electric Vehicle Grid Integration aligns EV charging with grid capacity using smart charging, time-of-use rates, V2G, and demand response to reduce peak load, enable renewable energy, and optimize infrastructure planning.

 

Key Points

Aligning EV charging with grid needs via smart charging, TOU pricing, and V2G to balance load and support renewables.

✅ Time-of-use rates shift charging to off-peak hours

✅ Smart charging responds to real-time grid signals

✅ V2G turns fleets into distributed energy storage

 

When Seattle City Light unveiled five new electric vehicle charging stations last month in an industrial neighborhood south of downtown, the electric utility wasn't just offering a new spot for drivers to fuel up. It also was creating a way for the service to figure out how much more power it might need as electric vehicles catch on.

Seattle aims to have nearly a third of its residents driving electric vehicles by 2030. Washington state is No. 3 in the nation in per capita adoption of plug-in cars, behind California and Hawaii. But as Washington and other states urge their residents to buy electric vehicles — a crucial component of efforts to reduce carbon emissions — they also need to make sure the electric grid can handle it amid an accelerating EV boom nationwide.

The average electric vehicle requires 30 kilowatt hours to travel 100 miles — the same amount of electricity an average American home uses each day to run appliances, computers, lights and heating and air conditioning.

An Energy Department study found that increased electrification across all sectors of the economy could boost national consumption by as much as 38 percent by 2050, in large part because of electric vehicles. The environmental benefit of electric cars depends on the electricity being generated by renewables.

So far, states predict they will be able to sufficiently boost power production. But whether electric vehicles will become an asset or a liability to the grid largely depends on when drivers charge their cars.

Electricity demand fluctuates throughout the day; demand is higher during daytime hours, peaking in the early evening. If many people buy electric vehicles and mostly try to charge right when they get home from work — as many now do — the system could get overloaded or force utilities to deliver more electricity than they are capable of producing.

In California, for example, the worry is not so much with the state’s overall power capacity, but rather with the ability to quickly ramp up production and maintain grid stability when demand is high, said Sandy Louey, media relations manager for the California Energy Commission, in an email. About 150,000 electric vehicles were sold in California in 2018 — 8 percent of all state car sales.

The state projects that electric vehicles will consume 5.4 percent of the state’s electricity, or 17,000 gigawatt hours, by 2030.

Responding to the growth in electric vehicles will present unique challenges for each state. A team of researchers from the University of Texas at Austin estimated the amount of electricity that would be required if every car on the road transitioned to electric. Wyoming, for instance, would need to nudge up its electricity production only 17 percent, while Maine would have to produce 55 percent more.

Efficiency Maine, a state trust that oversees energy efficiency and greenhouse gas reduction programs, offers rebates for the purchase of electric vehicles, part of state efforts to incentivize growth.

“We’re certainly mindful that if those projections are right, then there will need to be more supply,” said Michael Stoddard, the program’s executive director. “But it’s going to unfold over a period of the next 20 years. If we put our minds to it and plan for it, then we should be able to do it.”

A November report sponsored by the Energy Department found that there has been almost no increase in electricity demand nationwide over the past 10 years, while capacity has grown an average of 12 gigawatts per year (1 GW can power more than a half-million homes). That means energy production could climb at a similar rate and still meet even the most aggressive increase in electric vehicles, with proper planning.

Charging during off-peak hours would allow not only many electric vehicles to be added to the roads but also utilities to get more use out of power plants that run only during the limited peak times through improved grid coordination and flexible demand.

Seattle City Light and others are looking at various ways to promote charging during ideal times. One method is time-of-day rates. For the Seattle chargers unveiled last month, users will pay 31 cents per kilowatt hour during peak daytime hours and 17 cents during off-peak hours. The utility will monitor use at its charging stations to see how effective the rates are at shifting charging to more favorable times.

The utility also is working on a pilot program to study charging behavior at home. And it is partnering with customers such as King County Metro that are electrifying large vehicle fleets, including growing electric truck fleets that will demand significant power, to make sure they have both the infrastructure and charging patterns to integrate smoothly.

“Traditionally, our utility approach is to meet the load demand,” said Emeka Anyanwu, energy innovation and resources officer for Seattle City Light.

Instead, he said, the utility is working with customers to see whether they can use existing assets without the need for additional investment.

Numerous analysts say that approach is crucial.

“Even if there’s an overall increase in consumption, it really matters when that occurs,” said Sally Talberg, head of the Michigan Public Service Commission, which oversees the state’s utilities. “The encouragement of off-peak charging and other technology solutions that could come to bear could offset any negative impact.”

One of those solutions is smart charging, a system in which vehicles are plugged in but don’t charge until they receive a signal from the grid that demand has tapered off a sufficient amount. This is often paired with a lower rate for drivers who use it. Several smart-charging pilot programs are being conducted by utilities, although they have not yet been phased in widely, amid ongoing debates over charging control among manufacturers and utilities.

In many places, the increased electricity demand from electric vehicles is seen as a benefit to utilities and rate payers. In the Northwest, electricity consumption has remained relatively stagnant since 2000, despite robust population growth and development. That’s because increasing urbanization and building efficiency have driven down electricity needs.

Electric vehicles could help push electricity consumption closer to utilities’ capacity for production. That would bring in revenue for the providers, which would help defray the costs for maintaining that capacity, lowering rates for all customers.

“Having EV loads is welcome, because it’s environmentally cleaner and helps sustain revenues for utilities,” said Massoud Jourabchi, manager of economic analysis for the Northwest Power and Conservation Council, which develops power plans for the region.

Colorado also is working to promote electric cars, with the aim of putting 940,000 on the road by 2030. The state has adopted California’s zero-emission vehicles mandate, which requires automakers to reach certain market goals for their sales of cars that don’t burn fossil fuels, while extending tax credits for the purchase of such cars, investing in charging stations and electrifying state fleets.

Auto dealers have opposed the mandate, saying it infringes on consumer freedom.

“We think it should be a customer choice, a consumer choice and not a government mandate,” said Tim Jackson, president and chief executive of the Colorado Automobile Dealers Association.

Jackson also said that there’s not yet a strong consumer appetite for electric vehicles, meaning that manufacturers that fail to sell the mandated number of emission-free vehicles would be required to purchase credits, which he thinks would drive up the price of their other models.

Republicans in the state have registered similar concerns, saying electric vehicle adoption should take place based on market forces, not state intervention.

Many in the utility community are excited about the potential for electric cars to serve as mobile energy storage for the grid. Vehicle-to-grid technology, known as V2G, would allow cars charging during the day to take on surplus power from renewable energy sources.

Then, during peak demand times, electric vehicles would return some of that stored energy to the grid. As demand tapers off in the evening, the cars would be able to recharge.

In practice, V2G technology could be especially beneficial if used by heavy-duty fleets, such as school buses or utility vehicles. Those fleets would have substantial battery storage and long periods where they are idle, such as evenings and weekends — and even longer periods such as summer and the holiday season when school is out. The batteries on a bus, Jourabchi said, could store as much as 10 times the electricity needed to power a home for a day.

 

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Salmon and electricity at center of Columbia River treaty negotiations

Columbia River Treaty Negotiations involve Canada-U.S. talks on B.C. dams, flood control, hydropower sharing, and downstream benefits, prioritizing ecosystem health, First Nations rights, and salmon restoration while balancing affordable electricity for northwest consumers.

 

Key Points

Talks to update flood control, hydropower, and ecosystem terms for fair benefits to B.C. and U.S. communities.

✅ Public consultations across B.C.'s Columbia Basin

✅ First Nations priorities include salmon restoration

✅ U.S. seeks cheaper power; B.C. defends downstream benefits

 

With talks underway between Canada and the U.S. on the future of the Columbia River Treaty, the B.C. New Democrats have launched public consultations in the region most affected by the high-stakes negotiation.

“We want to ensure Columbia basin communities are consulted, kept informed and have their voices heard,” said provincial cabinet minister Katrine Conroy via a press release announcing meetings this month in Castlegar, Golden, Revelstoke, Nakusp, Nelson and other communities.

As well as having cabinet responsibility for the talks, Conroy’s Kootenay West riding includes several places that were inundated under the terms of the 1964 flood control and power generation treaty.

“We will continue to work closely with First Nations affected by the treaty, to ensure Indigenous interests are reflected in the negotiations,” she added by way of consolation to Indigenous people who’ve been excluded from the negotiating teams on both sides of the border.

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The stakes are also significant for the province as a whole. The basics of the treaty saw B.C. build dams to store water on this side of the border, easing the flood risk in the U.S. and allowing the flow to be evened out through the year. In exchange, B.C. was entitled to a share of the additional hydro power that could be generated in dams on the U.S. side.

B.C.’s sale of those downstream benefits to the U.S has poured almost $1.4 billion into provincial coffers over the past 10 years, albeit at a declining rate these days amid scrutiny from a regulator report on BC Hydro that raised concerns, because of depressed prices for cross-border electricity sales.

Politicians on the U.S. side have long sought to reopen the treaty, believing there was now a case for reducing B.C.’s entitlement.

They did not get across the threshold under President Barack Obama.

Then, last fall his successor Donald Trump served notice of intent, initiating the formal negotiations that commenced with a two day session last week in Washington, D.C. The next round is set for mid-August in B.C.

American objectives in the talks include “continued, careful management of flood risk; ensuring a reliable and economical power supply; and better addressing ecosystem concerns,” with recognition of recent BC Hydro demand declines during the pandemic.

“Economical power supply,” being a diplomatic euphemism for “cheaper electricity for consumers in the northwest states,” achievable by clawing back most of B.C.’s treaty entitlement.

On taking office last summer, the NDP inherited a 14-point statement of principles setting out B.C. hopes for negotiations to “continue the treaty” while “seeking improvements within the existing framework” of the 54-year-old agreement.

The New Democrats have endorsed those principles in a spirit of bipartisanship, even as Manitoba Hydro governance disputes play out elsewhere in Canada.

“Those principles were developed with consultation from throughout the region,” as Conroy advised the legislature this spring. “So I was involved, as well, in the process and knew what the issues were, right as they would come up.”

The New Democrats did chose to put additional emphasis on some concerns.

“There is an increase in discussion with Canada and First Nations on the return of salmon to the river,” she advised the house, recalling how construction of the enormous Grand Coulee Dam on the U.S. side in the 1930s wiped out salmon runs on the upper Columbia River.

“There was no consideration then for how incredibly important salmon was, especially to the First Nations people in our region. We have an advisory table that is made up of Indigenous representation from our region, and also we are discussing with Canada that we need to see if there’s feasibility here.”

As to feasibility, the obstacles to salmon migration in the upper reaches of the Columbia include the 168-metre high Grand Coulee and the 72-metre Chief Joseph dams on the U.S. side, plus the Keenleyside (52 metres), Revelstoke (175 metres) and Mica (240 metres) dams on the Canadian side.

Still, says Conroy “the First Nations from Canada and the tribes from the United States, have been working on scientific and technical documents and research to see if, first of all, the salmon can come up, how they can come up, and what the things are that have to be done to ensure that happens.”

The New Democrats also put more emphasis on preserving the ecosystem, aligning with clean-energy efforts with First Nations that support regional sustainability.

“I know that certainly didn’t happen in 1964, but that is something that’s very much on the minds of people in the Columbia basin,” said Conroy. “If we are going to tweak the treaty, what can we do to make sure the voices of the basin are heard and that things that were under no consideration in the ’60s are now a topic for consideration?”

With those new considerations, there’s still the status quo concern of preserving the downstream benefits as a trade off for the flooding and other impacts on this side of the border.

The B.C. position on that score is the same under the New Democrats as it was under the Liberals, despite a B.C. auditor general report on deferred BC Hydro costs.

“The level of benefits to B.C., which is currently solely in the form of the (electricity) entitlement, does not account for the full range of benefits in the U.S. or the impacts in B.C.,” says the statement of principle.

“All downstream U.S. benefits such as flood risk management, hydropower, ecosystems, water supply (including municipal, industrial and agricultural uses), recreation, navigation and other related benefits should be accounted for and such value created should be shared equitably between the two countries.”

No surprise if the Americans do not see it the same way.  But that is a topic for another day.

 

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Alberta is a powerhouse for both green energy and fossil fuels

Alberta Renewable Energy Market is accelerating as wind and solar prices fall, corporate PPAs expand, and a deregulated, energy-only system, AESO outlooks, and TIER policy drive investment across the province.

 

Key Points

An open, energy-only Alberta market where wind and solar growth is driven by corporate PPAs, AESO outlooks, and TIER.

✅ Energy-only, deregulated grid enables private investment

✅ Corporate PPAs lower costs and hedge power price risk

✅ AESO forecasts and TIER policy support renewables

 

By Chris Varcoe, Calgary Herald

A few things are abundantly clear about the state of renewable energy in Alberta today.

First, the demise of Alberta’s Renewable Electricity Program (REP) under the UCP government isn’t going to see new projects come to a screeching halt.

In fact, new developments are already going ahead.

And industry experts believe private-sector companies that increasingly want to purchase wind or solar power are going to become a driving force behind even more projects in Alberta.

BluEarth Renewables CEO Grant Arnold, who spoke Wednesday at the Canadian Wind Energy Association conference, pointed out the sector is poised to keep building in the province, even with the end of the REP program that helped kick-start projects and triggered low power prices.

“The fundamentals here are, I think, quite fantastic — strong resource, which leads to really competitive wind prices . . . it’s now the cheapest form of new energy in the province,” he told the audience.

“Alberta is in a fundamentally good place to grow the wind power market.”

Unlike other provinces, Alberta has an open, deregulated marketplace, which create opportunities for private-sector investment and renewable power developers as well.

The recent decision by the Kenney government to stick with the energy-only market, instead of shifting to a capacity market, is seen as positive for Alberta's energy future by renewable electricity developers.

There is also increasing interest from corporations to buy wind and solar power from generators — a trend that has taken off in the United States with players such as Google, General Motors and Amazon — and that push is now emerging in Canada.

“It’s been really important in the U.S. for unlocking a lot of renewable energy development,” said Sara Hastings-Simon, founding director of the Business Renewable Centre Canada, which seeks to help corporate buyers source renewable energy directly from project developers.

“You have some companies where . . . it’s what their investors and customers are demanding. I think we will see in Alberta customers who see this as a good way to meet their carbon compliance requirements.

“And the third motivation to do it is you can get the power at a good price.”

Just last month, Perimeter Solar signed an agreement with TC Energy to supply the Calgary-based firm with 74 megawatts from its solar project near Claresholm.

More deals in the industry are being discussed, and it’s expected this shift will drive other projects forward.

There is increasing interest from corporations to buy solar and wind energy directly from generators.

“The single-biggest change has been the price of wind and solar,” Arnold said in an interview.

“Alberta looks really, really bright right now because we have an open market. All other provinces, for regulatory reasons, we can’t have this (deal) . . . between a generator and a corporate buyer of power. So Alberta has a great advantage there.”

These forces are emerging as the renewable energy industry has seen dramatic change in recent years in Alberta, with costs dropping and an array of wind and solar developments moving ahead, even as solar expansion faces challenges in the province.

The former NDP government had an aggressive target to see green energy sources make up 30 per cent of all electricity generation by 2030.

Last week, the Alberta Electric System Operator put out its long-term outlook, with its base-case scenario projecting moderate demand growth for power over the next two decades. However, the expected load growth — expanding by an average of 0.9 per cent annually until 2039 — is only half the rate seen in the past 20 years.

Natural gas will become the main generation source in the province as coal-fired power (now comprising more than one-third of generation) is phased out.

Renewable projects initiated under the former NDP government’s REP program will come online in the near term, while “additional unsubsidized renewable generation is expected to develop through competitive market mechanisms and support from corporate power purchase agreements,” the report states.

AESO forecasts installed generation capacity for renewables will almost double to about 19 per cent by 2030, with wind and solar increasing to 21 per cent by 2039.

Another key policy issue for the sector will likely come within the next few weeks when the provincial government introduces details of its new Technology Innovation and Emissions Reduction program (TIER).

The initiative will require large industrial emitters to reduce greenhouse gas emissions to a benchmark level, pay into the technology fund, or buy offsets or credits. The carbon price is expected to be around $20 to $30 a tonne, and the system will kick in on Jan. 1, 2020.

Industry players point out the decision to stick with Alberta’s energy-only market along with the details surrounding TIER, and a focus by government on reducing red tape, should all help the sector attract investment.

“It is pretty clear there is a path forward for renewables here in the province,” said Evan Wilson, regional director with the Canadian Wind Energy Association.

All of these factors are propelling the wind and solar sector forward in the province, at the same time the oil and gas sector faces challenges to grow.

But it doesn’t have to be an either/or choice for the province moving forward. We’re going to need many forms of energy in the coming decades, and Alberta is an energy powerhouse, with potential to develop more wind and solar, as well as oil and natural gas resources.

“What we see sometimes is the politics and discussion around renewables or oil becomes a deliberate attempt to polarize people,” Arnold added.

“What we are trying to show, in working in Alberta on renewable projects, is it doesn’t have to be polarizing. There are a lot of solutions.

“The combination of solutions is part of what we need to talk about.”

 

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Can the Electricity Industry Seize Its Resilience Moment?

Hurricane Grid Resilience examines how utilities manage outages with renewables, microgrids, and robust transmission and distribution systems, balancing solar, wind, and batteries to restore service, harden infrastructure, and improve storm response and recovery.

 

Key Points

Hurricane grid resilience is a utility approach to withstand storms, reduce outages, and speed safe power restoration.

✅ Focus on T&D hardening, vegetation management, remote switching

✅ Balance generation mix; integrate solar, wind, batteries, microgrids

✅ Plan 12-hour shifts; automate forecasting and outage restoration

 

When operators of Duke Energy's control room in Raleigh, North Carolina wait for a hurricane, the mood is often calm in the hours leading up to the storm.

“Things are usually fairly quiet before the activity starts,” said Mark Goettsch, the systems operations manager at Duke. “We’re anxiously awaiting the first operation and the first event. Once that begins, you get into storm mode.”

Then begins a “frenzied pace” that can last for days — like when Hurricane Florence parked over Duke’s service territory in September.

When an event like Florence hits, all eyes are on transmission and distribution. Where it’s available, Duke uses remote switching to reconnect customers quickly. As outages mount, the utility forecasts and balances its generation with electricity demand.

The control center’s four to six operators work 12-hour shifts, while nearby staff members field thousands of calls and alarms on the system. After it’s over, “we still hold our breath a little bit to make sure we’ve operated everything correctly,” said Goettsch. Damage assessment and rebuilding can only begin once a storm passes.

That cycle is becoming increasingly common in utility service areas like Duke's.

A slate of natural disasters that reads like a roll call — Willa, Michael, Harvey, Irma, Maria, Florence and Thomas — has forced a serious conversation about resiliency. And though Goettsch has heard a lot about resiliency as a “hot topic” at industry events and meetings, those conversations are only now entering Duke’s control room.

Resilience discussions come and go in the energy industry. Storms like Hurricane Sandy and Matthew can spur a nationwide focus on resiliency, but change is largely concentrated in local areas that experienced the disaster. After a few news cycles, the topic fades into the background.

However, experts agree that resilience is becoming much more important to year-round utility planning and operations as utilities pursue decarbonization goals across their fleets. It's not a fad.

“If you look at the whole ecosystem of utilities and vendors, there’s a sense that there needs to be a more resilient grid,” said Miki Deric, Accenture’s managing director of utilities, transmission and distribution for North America. “Even if they don’t necessarily agree on everything, they are all working with the same objective.”

Can renewables meet the challenge?

After Hurricane Florence, The Intercept reported on coal ash basins washed out by the storm’s overwhelming waters. In advance of that storm, Duke shut down one nuclear plant to protect it from high winds. The Washington Post also recently reported on a slowly leaking oil spill, which could surpass Deepwater Horizon in size, caused by Hurricane Ivan in 2004.

Clean energy boosters have seized on those vulnerabilities.They say solar and wind, which don’t rely on access to fuel and can often generate power immediately after a storm, provide resilience that other electricity sources do not.

“Clearly, logistics becomes a big issue on fossil plants, much more than renewable,” said Bruce Levy, CEO and president at BMR Energy, which owns and operates clean energy projects in the Caribbean and Latin America. “The ancillaries around it — the fuel delivery, fuel storage, water in, water out — are all as susceptible to damage as a renewable plant.”

Duke, however, dismissed the notion that one generation type could beat out another in a serious storm.

“I don’t think any generation source is immune,” said Duke spokesperson Randy Wheeless. “We’ve always been a big supporter of a balanced energy mix, reflecting why the grid isn't 100% renewable in practice today. That’s going to include nuclear and natural gas and solar and renewables as well. We do that because not every day is a good day for each generation source.”

In regard to performance, Wade Schauer, director of Americas Power & Renewables Research at Wood Mackenzie, said the situation is “complex.” According to him, output of solar and wind during a storm depends heavily on the event and its location.

While comprehensive data on generation performance is sparse, Schauer said coal and gas generators could experience outages at 25 percent while stormy weather might cut 95 percent of output from renewables, underscoring clean energy's dirty secret about variability under stress. Ahead of last year’s “bomb cyclone” in New England, WoodMac data shows that wind dropped to less than 1 percent of the supply mix.

“When it comes to resiliency, ‘average performance’ doesn't cut it,” said Schauer.

In the future, he said high winds could impact all U.S. offshore wind farms, since projects are slated for a small geographic area in the Northeast. He also pointed to anecdotal instances of solar arrays in New England taken out by feet of snow. During Florence, North Carolina’s wind farms escaped the highest winds and continued producing electricity throughout. Cloud cover, on the other hand, pushed solar production below average levels.

After Florence passed, Duke reported that most of its solar came online quickly, although four of its utility-owned facilities remained offline for weeks afterward. Only one was because of damage; the other three remained offline due to substation interconnection issues.

“Solar performed pretty well,” said Wheeless. “But did it come out unscathed? No.”

According to installer reports, solar systems fared relatively well in recent storms, even as the Covid-19 impact on renewables constrained projects worldwide. But the industry has also highlighted potential improvements. Following Hurricanes Maria and Irma, the Federal Emergency Management Agency published guidelines for installing and maintaining storm-resistant solar arrays. The document recommended steps such as annual checks for bolt tightness and using microinverters rather than string inverters.

Rocky Mountain Institute (RMI) also assembled a guide for retrofitting and constructing new installations. It described attributes of solar systems that survived storms, like lateral racking supports, and those that failed, like undersized and under-torqued bolts.

“The hurricanes, as much as no one liked them, [were] a real learning experience for folks in our industry,” said BMR’s Levy. “We saw what worked, and what didn’t.”          

Facing the "800-pound gorilla" on the grid

Advocates believe wind, solar, batteries and microgrids offer the most promise because they often rely less on transmitting electricity long distances and could support peer-to-peer energy models within communities.

Most extreme weather outages arise from transmission and distribution problems, not generation issues. Schauer at WoodMac called storm damage to T&D the “800-pound gorilla.”

“I'd be surprised if a single customer power outage was due to generators being offline, especially since loads where so low due to mild temperatures and people leaving the area ahead of the storm,” he said of Hurricane Florence. “Instead, it was wind [and] tree damage to power lines and blown transformers.”

 

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German coalition backs electricity subsidy for industries

Germany Industrial Electricity Price Subsidy weighs subsidies for energy-intensive industries to bolster competitiveness as Germany shifts to renewables, expands grid capacity, and debates free-market tax cuts versus targeted relief and long-term policies.

 

Key Points

Policy to subsidize power for energy-intensive industry, preserving competitiveness during the energy transition.

✅ SPD backs 5-7 cents per kWh for 10-15 years

✅ FDP prefers tax cuts and free-market pricing

✅ Scholz urges cheap renewables and grid expansion first

 

Germany’s three-party coalition is debating whether electricity prices for energy-intensive industries should be subsidised in a market where rolling back European electricity prices can be tougher than it appears, to prevent companies from moving production abroad.

Calls to reduce the electricity bill for big industrial producers are being made by leading politicians, who, like others in Germany, fear the country could lose its position as an industrial powerhouse as it gradually shifts away from fossil fuel-based production, amid historic low energy demand and economic stagnation concerns.

“It is in the interest of all of us that this strong industry, which we undoubtedly have in Germany, is preserved,” Lars Klingbeil, head of Germany’s leading government party SPD (S&D), told Bayrischer Rundfunk on Wednesday.

To achieve this, Klingbeil is advocating a reduced electricity price for the industry of about 5 to 7 cents per Kilowatt hour, which the federal government would subsidise. This should be introduced within the next year and last for about 10 to 15 years, he said.

Under the current support scheme, which was financed as part of the €200 billion “rescue shield” against the energy crisis, energy-intensive industries already pay 13 cents per Kilowatt hour (KWh) for 70% of their previous electricity needs, which is substantially lower than the 30 to 40 cents per KWh that private consumers pay.

“We see that the Americans, for example, are spending $450 billion on the Inflation Reduction Act, and we see what China is doing in terms of economic policy,” Klingbeil said.

“If we find out in 10 years that we have let all the large industrial companies slip away because the investments are not being made here in Germany or Europe, and jobs and prosperity and growth are being lost here, then we will lose as a country,” he added.

However, not everyone in the German coalition favours subsidising electricity prices.

Finance Minister Christian Lindner of the liberal FDP (Renew), for example, has argued against such a step, instead promoting free-market principles and, amid rising household energy costs, reducing taxes on electricity for all.

“Privileging industrial companies would only be feasible at the expense of other electricity consumers and taxpayers, for example, private households or the small trade sector,” Lindner wrote in an op-ed for Handelsblatt on Tuesday.

“Increasing competitiveness for some would mean a loss of competitiveness for others,” he added.

Chancellor Olaf Scholz, himself a member of SPD, was more careful with his words, amid ongoing EU electricity reform debates in Brussels.

Asked about a subsidised electricity price for the industry at a town hall event on Monday, Scholz said he does not “want to make any promises now”.

“First of all, we have to make sure that we have cheap electricity in Germany in the first place,” Scholz said, promoting the expansion of renewable energy such as wind and solar, as local utilities cry for help, as well as more electricity grid infrastructure.

“What we will not be able to do as an economy, even as France’s new electricity pricing scheme advances, is to subsidise everything that takes place in normal economic activity,” Scholz said. “We should not get into the habit of doing that,” he added.

 

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