GM, utilities join to study electric car impact

By Myrtle Beach Sun-News


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General Motors Corp. has joined with more than 30 utility companies across the U.S. to help work out electricity issues that will crop up when it rolls out new electric vehicles in a little more than two years.

The Detroit automaker said the partnership, which includes the Electric Vehicle Research Institute and large utilities such as Southern California Edison and Duke Energy Corp., will deal with issues from tax incentives for the vehicles to where and when they can be plugged in for recharging.

GM is working to bring the Chevrolet Volt rechargeable car to showrooms in late 2010. It's being designed to run on an electric motor powered by lithium-ion batteries. When fully charged, it will be able to go 40 miles on battery power. For longer trips, a small internal combustion engine will recharge the batteries to keep the Volt moving.

"This vehicle is real. It's coming into production," said Britta Gross, a GM engineer who is helping to build the infrastructure for cars of the future. "We know that when the vehicle is in the showroom and ready for sale, it's got to work seamlessly with the infrastructure. It's the whole picture. We've got to make sure the infrastructure is ready."

GM and the utilities planned to announcement the partnership at a conference on plug-in hybrid electric vehicles in San Jose.

The consortium will work on everything from policy issues including tax incentives for purchasing what is likely to be an expensive car to whether the electric generation system can handle the increased power demand.

The cars will have to be designed so recharging them can be timed to low-demand periods for electricity, Gross said. The speed of the recharging, voltage, amperage and other issues all have to be worked out, she said. The group also will address issues such as how apartment dwellers can charge their cars and where the vehicles will be charged at work or on trips - and who pays for the electricity, Gross said.

"We want this to sell in just huge volumes, so we want to get it right," she said.

A team of GM engineers and designers is working on the Volt, hoping to be the leader in plug-in electric vehicles. Other automakers, including Toyota Motor Corp., also are working on similar vehicles.

GM already is showing Volt prototypes to focus groups and is testing a new generation of batteries that can carry enough juice to run the vehicles 40 miles. It is being designed so it can be recharged from a conventional household electrical outlet.

But the car will be priced anywhere from $30,000 to $40,000, far more expensive than most conventional cars.

The group, Gross said, likely will seek government tax incentives for buyers because of the benefits the car brings to society, such as lowered greenhouse gas emissions and reduced dependence on foreign oil.

"The price to the consumer has got to be affordable," she said.

Utilities, she said, can benefit from the cars because they will sell more electricity during off-peak hours when they have idle generating capacity.

But automakers and utilities will have to work out ways to decide how to stagger recharging so local substations do not become overloaded, Gross said.

The Volt likely will need about 8 kilowatt-hours of energy to recharge, Gross said. The average U.S. utility charges about 10 cents per kilowatt-hour, so it would cost the consumer about 80 cents to go the 40 miles, she said.

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Blackout-Prone California Is Exporting Its Energy Policies To Western States, Electricity Will Become More Costly And Unreliable

California Blackouts expose grid reliability risks as PG&E deenergizes lines during high winds. Mandated solar and wind displace dispatchable natural gas, straining ISO load balancing, transmission maintenance, and battery storage planning amid escalating wildfire liability.

 

Key Points

California grid shutoffs stem from wildfire risk, renewables, and deferred transmission maintenance under mandates.

✅ PG&E deenergizes lines to reduce wildfire ignition during high winds.

✅ Mandated solar and wind displace dispatchable gas, raising balancing costs.

✅ Storage, reliability pricing, and grid upgrades are needed to stabilize supply.

 

California is again facing widespread blackouts this season. Politicians are scrambling to assign blame to Pacific Gas & Electric (PG&E) a heavily regulated utility that can only do what the politically appointed regulators say it can do. In recent years this has meant building a bunch of solar and wind projects, while decommissioning reliable sources of power and scrimping on power line maintenance and upgrades.

The blackouts are connected with the legal liability from old and improperly maintained power lines being blamed for sparking fires—in hopes that deenergizing the grid during high winds reduces the likelihood of fires. 

How did the land of Silicon Valley and Hollywood come to have developing world electricity?

California’s Democratic majority, from Gov. Gavin Newsom to the solidly progressive legislature, to the regulators they appoint, have demanded huge increases in renewable energy. Renewable electricity targets have been pushed up, and policymakers are weighing a revamp of electricity rates to clean the grid, with the state expected to reach a goal of 33% of its power from renewable sources, mostly solar and wind, by next year, and 60% of its electricity from renewables by 2030.

In 2018, 31% of the electricity Californians purchased at the retail level came from approved renewables. But when rooftop solar is added to the mix, about 34% of California’s electricity came from renewables in 2018. Solar photovoltaic (PV) systems installed “behind-the-meter” (BTM) displace utility-supplied generation, but still affect the grid at large, as electricity must be generated at the moment it is consumed. PV installations in California grew 20% from 2017 to 2018, benefiting from the state’s Self-Generation Incentive Program that offers hefty rebates through 2025, as well as a 30% federal tax credit.

Increasingly large amounts of periodic, renewable power comes at a price—the more there is, the more difficult it is to keep the power grid stable and energized. Since electricity must be consumed the instant it is generated, and because wind and solar produce what they will whenever they do, the rest of the grid’s power producers—mostly natural gas plants—have to make up any differences between supply and immediate demand. This load balancing is vital, because without it, the grid will crash and widespread blackouts will ensue.

California often produces a surplus of mandated solar and wind power, generated for 5 to 8 cents per kilowatt hour. This power displaces dispatchable power from natural gas, coal and nuclear plants, resulting in reliable power plants spending less time online and driving up electricity prices as the plants operate for fewer hours of the day. Subsidized and mandated solar power, along with a law passed in California in 2006 (SB 1638) that bans the renewal of coal-fired power contracts, has placed enormous economic pressure on the Western region’s coal power plants—among them, the nation’s largest, Navajo Generating Station. As these plants go off line, the Western power grid will become increasingly unstable. Eventually, the states that share their electric power in the Western Interconnect may have to act to either subsidize dispatchable power or place a value on reliability—something that was taken for granted in the growth of the America’s electrical system and its regulatory scheme.

California law regarding electricity explicitly states that “a violation of the Public Utilities Act is a crime” and that it is “…the intent of the Legislature to provide for the evolution of the ISO (California’s Independent System Operator—the entity that manages California’s grid) into a regional organization to promote the development of regional electricity transmission markets in the western states.” In other words, California expects to dictate how the Western grid operates.

One last note as to what drives much of California’s energy policy: politics. California State Senator Kevin de León (the author served with him in the State Assembly) drafted SB 350, the Clean Energy and Pollution Reduction Act. It became law in 2015. Sen. de León followed up with SB 100 in 2018, signed into law weeks before the 2018 election. SB 100 increased California’s renewable portfolio standard to 60% by 2030 and further requires all the state’s electricity to come from carbon-free sources by 2045, a capstone of the state’s climate policies that factor into the blackout debate.  

Sen. de León used his environmental credentials to burnish his run for the U.S. Senate against Sen. Dianne Feinstein, eventually capturing the endorsements of the California Democratic Party and billionaire environmentalist Tom Steyer, now running for president. Feinstein and de León advanced to the general in California’s jungle primary, where Feinstein won reelection 54.2% to 45.8%.

De León may have lost his race for the U.S. Senate, but his legacy will live on in increasingly unaffordable electricity and blackouts, not only in California, but in the rest of the Western United States—unless federal or state regulators begin to place a value on reliability. This could be done by requiring utility scale renewable power providers to guarantee dispatchable power, as policymakers try to avert a looming shortage of firm capacity, either through purchase agreements with thermal power plants or through the installation of giant and costly battery farms or other energy storage means.

 

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Electric shock: China power demand drops as coronavirus shutters plants

China Industrial Power Demand 2020 highlights COVID-19 disruption to electricity consumption as factory output stalls; IHS Markit estimates losses equal to Chile's usage, impacting thermal coal, LNG, and Hubei's industrial load.

 

Key Points

An analysis of COVID-19's hit to China's electricity use, cutting industry demand and fuel needs for coal and LNG.

✅ 73 billion kWh loss equals Chile's annual power use

✅ Cuts translate to 30m tonnes coal or 9m tonnes LNG

✅ Hubei peak load 21 percent below plan amid shutdowns

 

China’s industrial power demand in 2020 may decline by as much as 73 billion kilowatt hours (kWh), according to IHS Markit, as the outbreak of the coronavirus has curtailed factory output and prevented some workers from returning to their jobs.

FILE PHOTO: Smoke is seen from a cooling tower of a China Energy ultra-low emission coal-fired power plant during a media tour, in Sanhe, Hebei province, China July 18, 2019. REUTERS/Shivani Singh
The cut represents about 1.5% of industrial power consumption in China. But, as the country is the world’s biggest electricity consumer and analyses of China's electricity appetite routinely underscore its scale, the loss is equal to the power used in the whole of Chile and it illustrates the scope of the disruption caused by the outbreak.

The reduction is the energy equivalent of about 30 million tonnes of thermal coal, at a time when China aims to reduce coal power production, or about 9 million tonnes of liquefied natural gas (LNG), IHS said. The coal figure is more than China’s average monthly imports last year while the LNG figure is a little more than one month of imports, based on customs data.

China has tried to curtail the spread of the coronavirus that has killed more than 1,400 and infected over 60,000 by extending the Lunar New Year holiday for an extra week and encouraging people to work from home, measures that contributed to a global dip in electricity demand as well.

Last year, industrial users consumed 4.85 trillion kWh electricity, accounting for 67% of the country’s total, even as India's electricity demand showed sharp declines in the region.

Xizhou Zhou, the global head of power and Renewables at IHS Markit, said that in a severe case where the epidemic goes on past March, China’s economic growth will be only 4.2% during 2020, down from an initial forecast of 5.8%, while power consumption will climb by only 3.1%, down from 4.1% initially, even as power cuts and blackouts raise concerns.

“The main uncertainty is still how fast the virus will be brought under control,” said Zhou, adding that the impact on the power sector will be relatively modest from a full-year picture in 2020, even though China's electric power woes are already clouding solar markets.

In Hubei province, the epicenter of the virus outbreak, the peak power load at the end of January was 21% less than planned, mirroring how Japan's power demand was hit during the outbreak, data from Wood Mackenzie showed.

Industrial operating rates point to a firm reduction in power consumption in China.

Utilization rates at plastic processors are between 30% and 60% and the low levels are expected to last for another two week, according to ICIS China.

Weaving machines at textile plants are operating at below 10% of capacity, the lowest in five years, ICIS data showed. China is the world’s biggest textile and garment exporter.

 

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Hydro One bends to government demands, caps CEO pay at $1.5M

Hydro One CEO Pay Cap sets executive compensation at $1.5 million under Ontario's provincial directive, linking incentives to transmission and distribution cost reductions, governance improvements, and board pay limits at the electricity utility.

 

Key Points

The Hydro One CEO Pay Cap limits pay to $1.5M, linking incentives to cost reductions and defined targets.

✅ Base salary set at $500,000 per year.

✅ Incentives capped at $1,000,000, tied to cost cuts.

✅ Board pay capped: chair $120,000; members $80,000.

 

Hydro One has agreed to cap the annual compensation of its chief executive at $1.5 million, the provincial utility said Friday, acquiescing to the demands of the Progressive Conservative government.

The CEO's base salary will be set at $500,000 per year, while short-term and long-term incentives are limited to $1 million. Performance targets under the pay plan will include the CEO's contributions to reductions in transmission and distribution costs, even as Hydro One has pursued a bill redesign to clarify charges for customers.

The framework represents a notable political victory for Premier Doug Ford, who vowed to fire Hydro One's CEO and board during the campaign and promised to reduce the annual earnings of Hydro One's board members.

In February, the province issued a directive to the board, ordering it to pay the utility's CEO no more than the $1.5 million figure it has now agreed to, as part of a broader push to lower electricity rates across Ontario.

Hydro One and the government had been at loggerheads over executive compensation, with the company refusing repeated requests to slash the CEO pay below $2,775,000. The board argued it would have difficulty recruiting suitable leaders for anything less, even as customers contend with a recovery rate that could raise hydro bills.

Further, the company agreed to pay the board chair no more than $120,000 annually and board members no more than $80,000 — figures Energy Minister Greg Rickford had outlined in his directive last month, amid calls for cleaning up Ontario's hydro mess from policy commentators.

"Hydro One's compliance with this directive allows us to move forward as a province. It sets the company on the right course for the future, proving that it can operate as a top-class electricity utility while reining in executive compensation and increasing public transparency," Rickford said in a statement issued Friday morning.

 

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Learn how fees and usage impacts your electricity bill in new online CER tool

CER Interactive Electricity Bill Tool compares provincial electricity prices, fees, taxes, and usage. Explore household appliance costs, hydroelectric generation, and consumption trends across Canada with interactive calculators and a province-by-province breakdown.

 

Key Points

An online CER report with calculators comparing electricity prices, fees, and usage to explain household energy costs.

✅ Province-by-province bill, price, and consumption comparison

✅ Calculator for appliance and electronics energy costs

✅ Explains fees, taxes, regulation, and generation sources

 

Canadians have a new way to assess their electricity bill in a new, interactive online report released by the Canada Energy Regulator (CER).

The report titled What is in a residential electricity bill? features a province-to-province comparison of electricity bills, generation and consumption. It also explains electricity prices across the country, including how Calgary electricity prices have changed, allowing people to understand why costs vary depending on location, fees, regulation and taxes.  

Learn how fees and usage impacts your electricity bill in new online CER tool
Interactive tools allow people to calculate the cost of household appliances and electronic use for each province and territory, and to understand how Ontario rate increases may affect monthly bills. For example, an individual can use the tools to find out that leaving a TV on for 24-hours in Quebec costs $5.25 per month, while that same TV on for a whole day would cost $12.29 per month in Saskatchewan, $20.49 per month in the Northwest Territories, and $15.30 per month in Nova Scotia.

How Canadians use energy varies as much as how provinces and territories produce it, especially in regions like Nunavut where unique conditions influence costs. Millions of Canadians rely on electricity to power their household appliances, charge their electronics, and heat their homes. Provinces with abundant hydro-electric resources like Quebec, B.C., Manitoba, and Newfoundland and Labrador use electricity for home heating and tend to consume the most electricity.

By gathering data from various sources, this report is the first Canadian publication that features interactive tools to allow for a province-by-province comparison of electricity bills while highlighting different elements within an electricity bill, a helpful context as Canada faces a critical supply crunch in the years ahead.

The CER monitors energy markets and assesses Canadian energy requirements and trends, including clean electricity regulations developments that shape pricing. This report is part of a portfolio of publications on energy supply, demand and infrastructure that the CER publishes regularly as part of its ongoing market monitoring.

"No matter where you go in the country, Canadians want to know how much they pay for power and why, especially amid price spikes in Alberta this year," says lead author Colette Craig. "This innovative, interactive report really explains electricity bills to help everyone understand electricity pricing and consumption across Canada."

Quick Facts

  • Quebec ranks first in electricity consumption per capita at 21.0 MW.h, followed by Saskatchewan at 20.0 MW.h, Newfoundland and Labrador at 19.3 MW.h.
  • About 95% of Quebec's electricity is produced from hydroelectricity.
  • Provinces that use electricity for home heating tend to consume the most electricity.
  • Canada's largest consuming sector for electricity was industrial at 238 TW.h. The residential and commercial sectors consumed 168 TW.h and 126 TW.h, respectively.
  • In 2018, Canada produced 647.7 terawatt hours (TW.h) of electricity. More than half of the electricity in Canada (61%) is generated from hydro sources. The remainder is produced from a variety of sources, such as fossil fuels (natural gas and petroleum), nuclear, wind, coal, biomass, solar.
  • Canada is a net exporter of electricity. In 2019, net exports to the U.S. electricity market totaled 47.0 TW.h.
  • The total value of Canada's electricity exports was $2.5 billion Canadian dollars and the value of imports was $0.6 billion Canadian dollars, resulting in 2019 net exports of $1.9 billion.
  • All regions in Canada are reflected in this report but it does not include data that reflects the COVID-19 lockdown and its effects on residential electricity bills.
     

 

 

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Norway Considers Curbing Electricity Exports to Avoid Shortages

Norway Electricity Export Limits weigh hydro reservoirs, energy security, EU-UK interconnectors, and record power prices amid Russia gas cuts; Statnett grid constraints and subsidies debate intensify as reservoir levels fall, threatening winter supply.

 

Key Points

Rules to curb Norway's power exports when reservoirs are very low, protecting supply security and easing extreme prices.

✅ Triggered by low hydro levels and record day-ahead prices

✅ Considers EU/UK cables, Statnett operations, seasonal thresholds

✅ Aims to secure winter supply and expand subsidies

 

Norway, one of Europe’s biggest electricity exporters, is considering measures to limit power shipments to prevent domestic shortages amid surging prices, according to local media reports.

The government may propose a rule to limit exports if the water level for Norway’s hydro reservoirs drops to “very low” levels, to ensure security of supply, said Energy Minister Terje Aasland, according NTB newswire. The limit would take account of seasonality and would differ across the about 1,800 hydro reservoirs, he said. 

Russia’s gas supply cuts in retaliation for European sanctions over the war in Ukraine have triggered the continent’s worst energy crisis in decades, with demand surging for cheap Norwegian hydro electricity. Yet the government faces increasing calls from the public and opposition to limit flows abroad. Prices are near record levels in some parts of the Nordic nation as hydro-reservoir levels have plunged in the south after a drier-than-normal spring. 

The government has been under pressure to do something about exports since before April. Flows on the cables are regulated by deals with both the European Union and the UK energy market and Norway can’t simply cut flows. It’s the latest test of European solidarity and a wake-up call for Europe when it comes to energy supplies. Hungary is trying to ban energy exports after it declared an energy emergency.

Back in May, grid operator Statnett SF warned that Norway could face a strained power situation after less snowfall than usual during the winter. At the end of last week, the level of filling in Norwegian hydro reservoirs was 66.5%, compared with a median 74.9% for the corresponding time in 2002-2021, regulator NVE said. Day-ahead electricity prices in southwest Norway soared to a record 423 euros per megawatt-hour late last month, partly due to bottlenecks in the grid limiting supply from the northern regions.

The grid operator has been asked to present by Oct. 1 possible measures that need to be taken to secure supply and infrastructure security ahead of the winter. Statnett operates cables to the UK and Germany aimed at selling surplus electricity and would likely take a financial hit if curbs were introduced. “Operations of these will always follow current laws and regulations,” Irene Meldal, a company spokeswoman, said Friday by email. 

Premier Jonas Gahr Store signaled his minority government will file proposals that also include more subsidies to families and companies and align with Europe’s emergency price measures during August, according to an interview with TV2 on Thursday. Meanwhile, opposition politicians plan to hold an extraordinary parliament meeting to discuss boosting the subsidies.

Aasland will summon the parties’ representatives to a meeting on Monday on the electricity crisis, the Aftenposten newspaper reported on Friday, without citing anyone. He intends to inform the parties about the ongoing work and aims to “avoid rushed decisions” by the parliamentary majority.

Norway Faces Pressure to Curb Power Exports as Prices Surge (1)

The nation gets almost all of its electricity from its vast hydro resources. Historically, it has been able to export a hefty surplus and still have among the lowest prices in Europe. 
 

 

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Maritime Link almost a reality, as first power cable reaches Nova Scotia

Maritime Link Subsea Cable enables HVDC grid interconnection across the Cabot Strait, linking Nova Scotia with Newfoundland and Labrador to import Muskrat Falls hydroelectric power and expand renewable energy integration and reliability.

 

Key Points

A 170-km HVDC subsea link connecting Nova Scotia and Newfoundland and Labrador for Muskrat Falls power and renewables

✅ 170-km HVDC subsea route across Cabot Strait

✅ Connects Nova Scotia and Newfoundland and Labrador grids

✅ Enables Muskrat Falls hydro and renewable energy trade

 

The longest sub-sea electricity cable in North America now connects Nova Scotia and Newfoundland and Labrador, according to the company behind the $1.7-billion Maritime Link project.  

The first of the project's two high-voltage power transmission cables was anchored at Point Aconi, N.S., on Sunday. 

The 170-kilometre long cable across the Cabot Strait will connect the power grids in the two provinces. The link will allow power to flow between the two provinces, as demonstrated by its first electricity transfer milestone, and bring to Nova Scotia electricity generated by the massive Muskrat Falls hydroelectric project in Labrador. 

Ultimately, the Maritime Link will help Nova Scotia reach the renewable energy goals set out by the federal government, said Rick Janega, the president and CEO of Emera Newfoundland and Labrador, whose subsidiary owns the Maritime Link.

"If not for the Maritime Link then really the province would not have the ability to meet those requirements because we're pretty much tapped out of all the hydro in province and all the wind generation without creating new interconnections like the Maritime Link," said Janega. 

Not everyone wanted the link 

Fishermen in Cape Breton had objected to the Maritime Link. They were concerned about how the undersea cable might affect fish in the area. 

The laying of the cable and other construction closed a three-kilometre long and 600-metre wide swath of ocean bottom to fishermen for the entire 2017 lobster season.  

But the company came to an agreement to compensate a group of 60 Cape Breton lobster and crab fishermen affected by the project this season. The terms of the compensation deal were not released. 

 

Long cable, big job

The transmission cable runs northwest of the Marine Atlantic ferry route between North Sydney, N.S., and Port aux Basques, N.L. 

Installation of the second cable is set to begin in June, a major step comparable to BC Hydro's Site C transmission milestone achieved recently. The entire link should be completed by late 2017 and should go into full service by January 2018.

"We're quite confident as soon as the Maritime Link is in service there will be energy transactions between Nova Scotia Power and Newfoundland Hydro. Both utilities have already identified opportunities to save money and exchange energy between the two provinces," said Janega.

That's two years before power is expected to flow from the Muskrat Falls hydro project. The Labrador-based power generating facility has been hampered by delays.

Those kinds of transmission project delays are expected for such a large project, said Janega, and won't stop the Maritime Link from being used. 

"With the Maritime Link going in service this year providing Nova Scotia the opportunity that it needs to be able to reach carbon reductions and to adapt to climate change and to increase renewable energy content and we're very pleased to be at this state today," said Janega.

 

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