Construction of turbine components facility starts in Liaoning

Alberta Electricity Market Reform reshapes policy under the UCP, weighing a capacity market versus energy-only design, AESO reliability rules, renewables targets, coal phase-out, carbon pricing, consumer rates, and investment certainty before AUC decisions.

Key Points

Alberta Electricity Market Reform is the UCP plan to reassess capacity vs energy-only, renewables, and carbon pricing.

✅ Reviews capacity market timeline and AESO procurement

✅ Alters subsidies for renewables; slows wind and solar growth

✅ Adjusts industrial carbon levy; audits Balancing Pool losses

Hearings kicked off this week into the future of the province’s electricity market design, amid an electricity market reshuffle pledged by the province, but a high-stakes decision about the industry’s fate — affecting billions of dollars in investment and consumer costs — won’t be made inside the meeting room of the Alberta Utilities Commission.

Instead, it will take place in the office of Jason Kenney, as the incoming premier prepares to pivot away from the seismic reforms to Alberta’s electricity sector introduced by the Notley government.

The United Conservative Party has promised to adopt market-based policies, reflecting changes to how Alberta produces and pays for power, that will reset how the sector operates, from its approach to renewable energy and carbon pricing to re-evaluating the planned transition to an electricity “capacity market.”

“Every ball in electricity is up in the air right now,” Vittoria Bellissimo, of the Industrial Power Consumers Association of Alberta, said Tuesday during a break in the commission hearings.

Industry players are uncertain how quickly the UCP will change direction on power policies, but there’s little doubt Kenney’s government will take a strikingly different approach to the sector that keeps the lights on in Alberta.

“There’s some things they are going to change that are going to impact the electricity industry significantly,” said Duane Reid-Carlson, chief executive of consultancy EDC Associates.

“But I don’t think it’s going to be upheaval. I think the new government will proceed with caution because electricity is the foundation of our economy.”

Alberta’s electricity market has been turned on its head in recent years due to the recession, power prices dropping to near two-decade lows and several transformative policies initiated by the NDP.

The Notley government’s climate plan included an accelerated phase-out of all coal-fired generation and set targets for more renewable energy.

The most significant, but least-understood, move has been the planned shift to an electricity capacity market in 2021.

Under the strategy, generators will no longer solely be paid for the power produced and sold into the market; they will also receive payments for having electricity capacity available to the grid on demand.

The change was recommended by the Alberta Electric System Operator (AESO) as a way to reduce price volatility and provide more reliability than the current energy-only market, which some argue needs more competition to deliver better outcomes.

The independent system operator and industry officials have spent more than two years planning the transition since the switch was announced in late 2016. Proposed rules for the new system, outlining market changes, are now being discussed at the Alberta Utilities Commission hearings.

However, there is no ironclad guarantee the system remake will go ahead following the UCP’s election victory last week — amid calls to scrap the overhaul from a Calgary retailer — it plans to study the issue further — while other substantive electricity changes are already in store.

The UCP has promised to end “costly subsidies” to renewable energy developments and abandon the NDP’s pledge to have such energy sources make up 30 per cent of all power generation by 2030.

It will remove the planned phase-out of coal-fired electricity generation, although federal regulations for a 2030 prohibition remain in place.

It will also ask the auditor general to conduct a special audit of the massive losses sustained by the province’s Balancing Pool due to power purchase arrangements being handed back to the agency three years ago.

While Kenney has pledged to cancel the provincewide carbon tax, a levy on large industrial greenhouse gas emitters (such has power plants) will still be charged, although at a reduced rate of $20 a tonne.

The biggest unknown remains the power market’s structure, which underpins how the entire system operates.

The UCP has promised to consult on the shift to the capacity market and report back to Albertans within 90 days.

The complex issue may sound like an eye-glazer, but it will have a profound effect on industry investment, as well as how much consumers pay on their monthly electricity bills.

A number of industry players worry the capacity market will lead AESO to procure more power than is necessary, foisting unnecessary costs onto all Albertans.

“I still have concerns for what the impact on consumers is going to be,” said energy market consultant Sheldon Fulton. “I’d love to see the capacity market go away.”

An analysis by EDC Associates found the transition to a capacity market will procure additional electricity before it’s needed, requiring consumers to pay up to 40 per cent more — an extra $1.4 billion — for power in 2021-22 than under the existing market structure.

“I don’t think there’s any prejudged outcome,” said Blake Shaffer, former head trader at TransAlta Corp. and a fellow-in-residence at the C.D. Howe Institute.

“But it really matters about getting this right.”

Evan Bahry, executive director of the Independent Power Producers Society of Alberta, said the fact the UCP’s review was confined to just 90 days is helpful, as it avoids throwing the entire industry into a prolonged period of uncertainty.

As for the greening of Alberta’s power grid, amid growing attention to clean grids and storage, the demise of the NDP’s Renewable Electricity Program will likely slow down the rapid pace of wind and solar development. But it’s unlikely to stop the growth trend as costs continue to fall for such developments.

“Renewables over the last number of years have evolved to the point that they make sense on a subsidy-free basis,” said Dan Balaban, CEO of Greengate Power Corp., which has developed 480 MW of wind power in Alberta and Ontario.

“There is a path to clean electricity ahead.”

Chris Varcoe is a Calgary Herald columnist.

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Texas After-Labor Day School Start could ease ERCOT's power grid strain by shifting peak demand, lowering air-conditioning loads in schools, improving grid reliability, reducing electricity costs, and curbing emissions during extreme heat the summer months.

Key Points

A proposed calendar shift to start school after Labor Day to lower ERCOT peak demand, costs, and grid risk.

✅ Cuts school HVAC loads during peak summer heat

✅ Lowers costly peaker plant use and electricity rates

✅ Requires calendar changes, testing and activities shifts

As Texas faces increasing demands on its power grid, a new proposal is gaining traction: starting the school year after Labor Day. This idea, reported by the Dallas News, suggests that delaying the start of the academic year could help alleviate some of the pressure on the state’s electricity grid during the peak summer months, potentially leading to both grid stability and financial savings. Here’s an in-depth look at how this proposed change could impact Texas’s energy landscape and education system.

The Context of Power Grid Strain

Texas's power grid, operated by the Electric Reliability Council of Texas (ERCOT), has faced significant challenges in recent years. Extreme weather events, record-breaking temperatures, and high energy demand have strained the grid, and some analyses argue that climate change, not demand is the biggest challenge today, leading to concerns about reliability and stability. The summer months are particularly taxing, as the demand for air conditioning surges, often pushing the grid to its limits.

In this context, the idea of adjusting the school calendar to start after Labor Day has been proposed as a potential strategy to help manage electricity demand. By delaying the start of school, proponents argue that it could reduce the load on the power grid during peak usage periods, thereby easing some of the stress on energy resources.

Potential Benefits for the Power Grid

The concept of delaying the school year is rooted in the potential benefits for the power grid. During the hottest months of summer, the demand for electricity often spikes as families use air conditioning to stay cool, and utilities warn to prepare for blackouts as summer takes hold. School buildings, typically large and energy-intensive facilities, contribute significantly to this demand when they are in operation.

Starting school later could help reduce this peak demand, as schools would be closed during the hottest months when the grid is under the most pressure. This reduction in demand could help prevent grid overloads and reduce the risk of power outages, at a time when longer, more frequent outages are afflicting the U.S. power grid, ultimately contributing to a more stable and reliable electricity supply.

Additionally, a decrease in peak demand could help lower electricity costs. Power plants, particularly those that are less efficient and more expensive to operate, are often brought online during periods of high demand. By reducing the peak load, the state could potentially minimize the need for these costly power sources, leading to lower overall energy costs.

Financial and Environmental Considerations

The financial implications of starting school after Labor Day extend beyond just the power grid. By reducing energy consumption during peak periods, the state could see significant savings on electricity costs. This, in turn, could lead to lower utility bills for schools, businesses, and residents alike, a meaningful relief as millions risk electricity shut-offs during summer heat.

Moreover, reducing the demand for electricity from fossil fuel sources can have positive environmental impacts. Lower peak demand may reduce the reliance on less environmentally friendly energy sources, and aligns with calls to invest in a smarter electricity infrastructure nationwide, thereby decreasing greenhouse gas emissions and contributing to overall environmental sustainability.

Challenges and Trade-offs

While the proposal offers potential benefits, it also comes with challenges and trade-offs. Adjusting the school calendar would require significant changes to the academic schedule, potentially affecting extracurricular activities, summer programs, and family plans, and comparisons to California's reliability challenges underscore the complexity. Additionally, there could be resistance from various stakeholders, including parents, educators, and students, who are accustomed to the current school calendar.

There are also logistical considerations to address, such as how a delayed start might impact standardized testing schedules and the academic calendar for higher education institutions. These factors would need to be carefully evaluated to ensure that the proposed changes do not adversely affect educational outcomes or create unintended consequences.

Looking Ahead

The idea of starting Texas schools after Labor Day represents an innovative approach to addressing the challenges facing the state’s power grid. By potentially reducing peak demand and lowering energy costs, and alongside efforts to connect Texas's grid to the rest of the nation, this proposal could contribute to greater grid stability and financial savings. However, careful consideration and planning will be essential to navigate the complexities of altering the school calendar and to ensure that the benefits outweigh the challenges.

As Texas continues to explore solutions for managing its power grid and energy resources, the proposal to shift the school year schedule provides an intriguing possibility. It reflects a broader trend of seeking creative and multifaceted approaches to balancing energy demand, environmental sustainability, and public needs.

In conclusion, starting schools after Labor Day could offer tangible benefits for Texas’s power grid and financial well-being. As discussions on this proposal advance, it will be important to weigh all factors and engage stakeholders to ensure a successful and equitable implementation.

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TEPCO Kashiwazaki-Kariwa restart plan clears NRA fitness review, anchored by a seven-point safety code, Niigata consent, Fukushima lessons, seismic risk analysis, and upgrades to No. 6 and No. 7 reactors, each rated 1.35 GW.

Key Points

TEPCO's plan to restart Kashiwazaki-Kariwa under NRA rules, pending Niigata consent and upgrades to Units 6 and 7.

✅ NRA deems TEPCO fit; legally binding seven-point safety code

✅ Local consent required: Niigata review of evacuation and health impacts

✅ Initial focus on Units 6 and 7; 1.35 GW each, seismic upgrades

Tokyo Electric Power Co. cleared a major regulatory hurdle toward restarting a nuclear power plant in Niigata Prefecture, but the utility’s bid to resume its operations still hangs in the balance of a series of political approvals.

The government’s nuclear watchdog concluded Sept. 23 that the utility is fit to operate the plant, based on new legally binding safety rules TEPCO drafted and pledged to follow, even as nuclear projects worldwide mark milestones across different regulatory environments today. If TEPCO is found to be in breach of those regulations, it could be ordered to halt the plant’s operations.

The Nuclear Regulation Authority’s green light now shifts the focus over to whether local governments will agree in the coming months to restart the Kashiwazaki-Kariwa plant.

TEPCO is keen to get the plant back up and running. It has been financially reeling from the closure of its nuclear plants in Fukushima Prefecture following the triple meltdown at the Fukushima No. 1 nuclear plant in 2011 triggered by the earthquake and tsunami disaster.

In parallel, Japan is investing in clean energy innovations such as a large hydrogen system being developed by Toshiba, Tohoku Electric Power and Iwatani.

The company plans to bring the No. 6 and No. 7 reactors back online at the Kashiwazaki-Kariwa nuclear complex, which is among the world’s largest nuclear plants, amid China’s nuclear energy continuing on a steady development track in the region.

The two reactors each boast 1.35 gigawatts in output capacity, while Kenya’s nuclear plant aims to power industry as part of that country’s expansion. They are the newest of the seven reactors there, first put into service between 1996 and 1997.

TEPCO has not revealed specific plans yet on what to do with the older five reactors.

In 2017, the NRA cleared the No. 6 and No. 7 reactors under the tougher new reactor regulations established in 2013 in response to the Fukushima nuclear disaster, while jurisdictions such as Ontario support continued operation at Pickering under strict oversight.

It also closely scrutinized the operator’s ability to run the Niigata Prefecture plant safely, given its history as the entity responsible for the nation’s most serious nuclear accident.

After several rounds of meetings with top TEPCO managers, the NRA managed to hold the utility’s feet to the fire enough to make it pledge, in writing, to abide by a new seven-point safety code for the Kashiwazaki-Kariwa plant.

The creation of the new code, which is legally binding, is meant to hold the company accountable for safety measures at the facility.

“As the top executive, the president of TEPCO will take responsibility for the safety of nuclear power,” one of the points reads. “TEPCO will not put the facility’s economic performance above its safety,” reads another.

The company promised to abide by the points set out in writing during the NRA’s examination of its safety regulations.

TEPCO also vowed to set up a system where the president is directly briefed on risks to the nuclear complex, including the likelihood of earthquakes more powerful than what the plant is designed to withstand. It must also draft safeguard measures to deal with those kinds of earthquakes and confirm whether precautionary steps are in place.

The utility additionally pledged to promptly release public records on the decision-making process concerning crucial matters related to nuclear safety, and to preserve the documents until the facility is decommissioned.

TEPCO plans to complete its work to reinforce the safety of the No. 7 reactor in December. It has not set a definite deadline for similar work for the No. 6 reactor.

To restart the Kashiwazki-Kariwa plant, TEPCO needs to obtain consent from local governments, including the Niigata prefectural government.

The prefectural government is studying the plant’s safety through a panel of experts, which is reviewing whether evacuation plans are adequate as off-limits areas reopen and the health impact on residents from the Fukushima nuclear disaster.

Niigata Governor Hideyo Hanazumi said he will not decide on the restart until the panel completes its review.

The nuclear complex suffered damage, including from fire at an electric transformer, when an earthquake it deemed able to withstand hit in 2007.

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Hydro One Pandemic Relief Fund offers COVID-19 financial assistance, payment flexibility, and Winter Relief to Ontario electricity customers facing hardship, with disconnection protection and customer support to help manage bills during the health crisis.

Key Points

COVID-19 aid offering bill credits, payment flexibility, and disconnection protection for electricity customers.

✅ Financial assistance and bill credits for hardship cases

✅ Flexible payment plans and extended Winter Relief

✅ No-disconnect policy and dedicated customer support hours

We are pleased to announce a Pandemic Relief Fund to assist customers affected by the novel coronavirus (COVID-19). As part of our commitment to customers, we will offer financial assistance as well as increased payment flexibility to customers experiencing hardship. The fund is designed to support customers impacted by these events and those that may experience further impacts.

In addition to this, we've also extended our Winter Relief program, aligning with our ban on disconnections policy so no customer experiencing any hardship has to worry about potential disconnection.

We recognize that this is a difficult time for everyone and we want our customers to know that we’re here to support them. We hope this fund and the added measures, such as extended off-peak rates that help provide our customers peace of mind so they can concentrate on what matters most — keeping their loved ones safe.

If you are concerned about paying your bill, are experiencing hardship or have been impacted by the pandemic, including electricity relief announced by the province, we want to help you. Call us to discuss the fund and see what options are available for you.

CUSTOMER CONTACT CENTRE HOURS
Call us at 1-888-664-9376

Monday to Friday from 7:30 a.m. to 8:00 p.m.

Saturdays from 9:00 a.m. to 3:00 p.m.

KEEPING ONTARIANS AND OUR ELECTRICITY SYSTEM SAFE
We recognize the critical role we play in powering communities across the province and our support for the Province of Ontario during COVID-19. This is a responsibility to employees, customers, businesses and the people of Ontario that we take very seriously.

Since the novel coronavirus (COVID-19) outbreak began, Hydro One’s Pandemic Team along with our leadership, have been actively monitoring the issues to ensure we can continue to deliver the service Ontarians depend on while keeping our employees, customers and the public safe, even as there has been no cut in peak hydro rates yet for self-isolating customers across Ontario. While the risk in Ontario remains low, we believe we can best protect our people and our operations by taking proactive measures.

As information continues to evolve, our leadership team along with the Pandemic Planning Team and our Emergency Operations Centre are committed to maintaining business continuity while minimizing risk to employees and communities.

Over the days and weeks to come, we will work with the sector and government, which is preparing to extend disconnect moratoriums across the province, to enhance safety protocols and champion the needs of electricity customers in Ontario.
 

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PG&E Public Safety Power Shutoff curbs wildfire risk amid high winds, triggering California outages across Northern California and Bay Area counties; grid safety measures, outage maps, campus closures, and restoration timelines guide residents and businesses.

Key Points

A preemptive outage program by PG&E to reduce wildfire ignition during extreme wind events in California.

✅ Cuts power during red flag, high wind, dry fuel conditions

✅ Targets Northern California, Bay Area counties at highest risk

✅ Restoration follows inspections, weather all-clear, hazard checks

California utility Pacific Gas and Electric Co. (PG&E) has cut off power supply to hundreds of thousands of residents in Northern and Central California as a precaution to possible breakout of wildfires, a move examined in reasons for shutdowns by industry observers.

PG&E confirmed that about 513,000 customers in many counties in Northern California, including Napa, Sierra, Sonoma and Yuba, were affected in the first phase of Public Safety Power Shutoff, a preemptive measure it took to prevent wildfires believed likely to be triggered by strong, dry winds.

The utility said the decision to shut off power was, amid ongoing debate over nuclear's status in California, "based on forecasts of dry, hot and windy weather including potential fire risk."

"This weather event will last through midday Thursday, with peak winds forecast from Wednesday morning through Thursday morning and reaching 60 mph (about 96 km per hour) to 70 mph (about 112 km per hour) at higher elevations," it said, while abroad National Grid warnings about short supply have highlighted parallel reliability concerns.

PG&E noted that about 234,000 residents in mostly counties of San Francisco Bay Area such as Alameda, Alpine, Contra Costa, San Mateo and Santa Clara were impacted in the second phase of the power shutoff, as the state considers power plant closure delays with potential grid impacts, that began around noon in Wednesday.

The unprecedented power outages sweeping across Northern California has darkened homes and forced schools and business to close, even as the UK paused an emergency energy plan amid its own supply concerns.

University of California, Berkeley canceled all classes for Wednesday due to expected campus power loss over the next few days.

The university said it has received notice from PG&E, as China's power woes cloud U.S. solar supplies that could aid resilience, that "most of the core campus will be without power" possibly for 48 hours.

A freshman at California State University San Jose told Xinhua that their classes were canceled Wednesday as the campus was running out of power.

"I had to go home because even our dormitory went without electricity," the student added.

However, PG&E noted in an updated statement Wednesday night that only 4,000 customers would be affected in the third phase being considered for Kern County in Central California, compared to an earlier forecast of 43,000 people who would experience power outage.

The PG&E power shutoff was the largest preemptive measure ever taken to prevent wildfires in the state's history, and it comes as clean power grows while fossil declines across California's grid, highlighting broader transition challenges.

The San Francisco-based California utility was held responsible for poor management of its power lines that sparked fatal wildfires in Northern California and killed 86 people last year in what was called Camp Fire, the single-deadliest wildfire in California's history.

Several lawsuits and other requests for compensation from wildfire victims that amounted to billions of U.S. dollars forced the embattled the company to claim bankruptcy protection early this year.

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Utility Battery Storage Rankings measure grid-connected capacity, not ownership, highlighting MW, MWh, and watts per customer across PJM, MISO, and California IOUs, featuring Duke Energy, IPL, ancillary services, and frequency regulation benefits.

Key Points

Rankings that track energy storage connected to utility grids, comparing MW, MWh, and W/customer rather than ownership.

✅ Ranks by MW, MWh, and watts per customer, not asset ownership

✅ Highlights PJM, MISO cases and California IOUs' deployments

✅ Examples: Duke Energy, IPL, IID; ancillary services, frequency response

The rankings do not tally how much energy storage a utility built or owns, but how much was connected to their system. So while IPL built and owns the storage facility in its territory, Duke does not own the 16 MW of storage that connected to its system in 2016. Similarly, while California’s utilities are permitted to own some energy storage assets, they do not necessarily own all the storage facilities connected to their systems.

Measured by energy (MWh), IPL ranked fourth with 20 MWh, and Duke Energy Ohio ranked eighth with 6.1 MWh.

Ranked by energy storage watts per customer, IPL and Duke actually beat the California utilities, ranking fifth and sixth with 42 W/customer and 23 W/customer, respectively.

Duke ready for next step

Given Duke’s plans, including projects in Florida that are moving ahead, the utility is likely to stay high in the rankings and be more of a driving force in development. “Battery technology has matured, and we are ready to take the next step,” Duke spokesman Randy Wheeless told Utility Dive. “We can go to regulators and say this makes economic sense.”

Duke began exploring energy storage in 2012, and until now most of its energy storage efforts were focused on commercial projects in competitive markets where it was possible to earn revenues. Those included its 36 MW Notrees battery storage project developed in partnership with the Department of Energy in 2012 that provides frequency regulation for the Electric Reliability Council of Texas market and two 2 MW storage projects at its retired W.C. Beckjord plant in New Richmond, Ohio, that sells ancillary services into the PJM Interconnection market.

On the regulated side, most of Duke’s storage projects have had “an R&D slant to them,” Wheeless said, but “we are moving beyond the R&D concept in our regulated territory and are looking at storage more as a regulated asset.”

“We have done the demos, and they have proved out,” Wheeless said. Storage may not be ready for prime time everywhere, he said, but in certain locations, especially where it can it can be used to do more than one thing, it can make sense.

Wheeless said Duke would be making “a number of energy storage announcements in the next few months in our regulated states.” He could not provide details on those projects.

More flexible resources
Location can be a determining factor when building a storage facility. For IPL, serving the wholesale market was a driving factor in the rationale to build its 20 MW, 20 MWh storage facility in Indianapolis.

IPL built the project to address a need for more flexible resources in light of “recent changes in our resource mix,” including decreasing coal-fired generation and increasing renewables and natural gas-fired generation, as other regions plan to rely on battery storage to meet rising demand, Joan Soller, IPL’s director of resource planning, told Utility Dive in an email. The storage facility is used to provide primary frequency response necessary for grid stability.

The Harding Street storage facility in May. It was the first energy storage project in the Midcontinent ISO. But the regulatory path in MISO is not as clear as it is in PJM, whereas initiatives such as Ontario storage framework are clarifying participation. In November, IPL with the Federal Energy Regulatory Commission, asking the regulator to find that MISO’s rules for energy storage are deficient and should be revised.

Soller said IPL has “no imminent plans to install energy storage in the future but will continue to monitor battery costs and capabilities as potential resources in future Integrated Resource Plans.”

California legislative and regulatory push

In California, energy storage did not have to wait for regulations to catch up with technology. With legislative and regulatory mandates, including CEC long-duration storage funding announced recently, as a push, California’s IOUs took high places in SEPA’s rankings.

Southern California Edison and San Diego Gas & Electric were first and fourth (63.2 MW and 17.2 MW), respectively, in terms of capacity. SoCal Ed and SDG&E were first and second (104 MWh and 28.4 MWh), respectively, and Pacific Gas and Electric was fifth (17 MWh) in terms of energy.

But a public power utility, the Imperial Irrigation District (IID), ended up high in the rankings – second in capacity (30 MW) and third  in energy (20 MWh) – even though as a public power entity it is not subject to the state’s energy storage mandates.

But while IID was not under state mandate, it had a compelling regulatory reason to build the storage project. It was part of a settlement reached with FERC over a September 2011 outage, IID spokeswoman Marion Champion said.

IID agreed to a $12 million fine as part of the settlement, of which $9 million was applied to physical improvements of IID’s system.

IID ended up building a 30 MW, 20 MWh lithium-ion battery storage system at its El Centro generating station. The system went into service in October 2016 and in May, IID used the system’s 44 MW combined-cycle natural gas turbine at the generating station.

Passing savings to customers
The cost of the storage system was about $31 million, and based on its experience with the El Centro project, Champion said IID plans to add to the existing batteries. “We are continuing to see real savings and are passing those savings on to our customers,” she said.

Champion said the battery system gives IID the ability to provide ancillary services without having to run its larger generation units, such as El Centro Unit 4, at its minimum output. With gas prices at $3.59 per million British thermal units, it costs about $26,880 a day to run Unit 4, she said.

IID’s territory is in southeastern California, an area with a lot of renewable resources. IID is also not part of the California ISO and acts as its own balancing authority. The battery system gives the utility greater operational flexibility, in addition to the ability to use more of the surrounding renewable resources, Champion said.

In May, IID’s board gave the utility’s staff approval to enter into contract negotiations for a 7 MW, 4 MWh expansion of its El Centro storage facility. The negotiations are ongoing, but approval could come in the next couple months, Champion said.

The heart of the issue, though, is “the ability of the battery system to lower costs for our ratepayers,” Champion said. “Our planning section will continue to utilize the battery, and we are looking forward to its expansion,” she said.” I expect it will play an even more important role as we continue to increase our percentage of renewables.”

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