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U.S. Utility Spending Shift highlights rising transmission and distribution costs, grid modernization, and smart meters, while generation expenses decline amid fuel price volatility, capital and labor pressures, and renewable integration across the power sector.

Key Points

A decade-long trend where utilities spend more on delivery and grid upgrades, and less on electricity generation costs.

✅ Delivery O&M, wires, poles, and meters drive rising costs

✅ Generation spending declines amid fuel price changes and PPI

✅ Grid upgrades add reliability, resilience, and renewable integration

Over the past decade, major utilities in the United States have been spending more on delivering electricity to customers and less on producing that electricity, a shift occurring as electricity demand is flat across many regions.

After adjusting for inflation, major utilities spent 2.6 cents per kilowatthour (kWh) on electricity delivery in 2010, using 2020 dollars. In comparison, spending on delivery was 65% higher in 2020 at 4.3 cents/kWh, and residential bills rose in 2022 as inflation persisted. Conversely, utility spending on power production decreased from 6.8 cents/kWh in 2010 (using 2020 dollars) to 4.6 cents/kWh in 2020.

Utility spending on electricity delivery includes the money spent to build, operate, and maintain the electric wires, poles, towers, and meters that make up the transmission and distribution system. In real 2020 dollar terms, spending on electricity delivery increased every year from 1998 to 2020 as utilities worked to replace aging equipment, build transmission infrastructure to accommodate new wind and solar generation amid clean energy transition challenges that affect costs, and install new technologies such as smart meters to increase the efficiency, reliability, resilience, and security of the U.S. power grid.

Spending on power production includes the money spent to build, operate, fuel, and maintain power plants, as well as the cost to purchase power in cases where the utility either does not own generators or does not generate enough to fulfill customer demand. Spending on electricity production includes the cost of fuels including natural gas prices alongside capital, labor, and building materials, as well as the type of generators being built.

Other utility spending on electricity includes general and administrative expenses, general infrastructure such as office space, and spending on intangible goods such as licenses and franchise fees, even as electricity sales declined in recent years.

The retail price of electricity reflects the cost to produce and deliver power, the rate of return on investment that regulated utilities are allowed, and profits for unregulated power suppliers, and, as electricity prices at 41-year high have been reported, these components have drawn increased scrutiny.

In 2021, demand for consumer goods and the energy needed to produce them has been outpacing supply, though power demand sliding in 2023 with milder weather has also been noted. This difference has contributed to higher prices for fuels used by electric generators, especially natural gas. The increased cost for fuel, capital, labor, and building materials, as seen in the U.S. Bureau of Labor Statistics’ Producer Price Index, is increasing the cost of power production for 2021. U.S. average electricity prices have been higher every month of this year compared with 2020, according to our Monthly Electric Power Industry Report.

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Shenao Power Plant Controversy intensifies as the EPA, Taipower, and New Taipei officials clash over EIA findings, a marine conservation area, fisheries, public health risks, and protests against a coal-fired plant in Rueifang.

Key Points

Dispute over coal plant EIA, marine overlap, and health risks, pitting EPA and Taipower against New Taipei and residents.

✅ EPA approved EIA changes; city cites marine conservation conflict

✅ Rueifang residents protest; 400+ signatures, wardens oppose

✅ Debate centers on fisheries, public health, and coal plant impacts

The controversy over the Shenao Power Plant heated up yesterday as Environmental Protection Administration (EPA) and New Taipei City Government officials quibbled over the project’s potential impact on a fisheries conservation area and other issues, mirroring New Hampshire hydropower clashes seen elsewhere.

State-run Taiwan Power Co (Taipower) wants to build a coal-fired plant on the site of the old Shenao plant, which was near Rueifang District’s (瑞芳) Shenao Harbor.

The company’s original plan to build a new plant on the site passed an environmental impact assessment (EIA) in 2006, similar to how NEPA rules function in the US, and the EPA on March 14 approved the firm’s environmental impact difference analysis report covering proposed changes to the project.

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That decision triggered widespread controversy and protests by local residents, environmental groups and lawmakers, echoing enforcement disputes such as renewable energy pollution cases reported in Maryland.

The controversy reached a new peak after New Taipei City Mayor Eric Chu on Tuesday last week posted on Facebook that construction of wave breakers for the project would overlap with a marine conservation area that was established in November 2014.

The EPA and Taipower chose to ignore the demarcation lines of the conservation area, Chu wrote.

Dozens of residents from Rueifang and other New Taipei City districts yesterday launched a protest at 9am in front of the Legislative Yuan in Taipei, amid debates similar to the Maine power line proposal in the US, where the Health, Environment and Labor Committee was scheduled to review government reports on the project.

More than 400 Rueifang residents have signed a petition against the project, including 17 of the district’s 34 borough wardens, Anti-Shenao Plant Self-Help Group director Chen Chih-chiang said.

Ruifang residents have limited access to information, and many only became aware of the construction project after the EPA’s March 14 decision attracted widespread media coverage, Chen said,

Most residents do not support the project, despite Taipower’s claims to the contrary, Chen said.

New Power Party Executive Chairman Huang Kuo-chang, who represents Rueifang and adjacent districts, said the EPA has shown an “arrogance of power” by neglecting the potential impact on public health and the local ecology of a new coal-fired power plant, even as it moves to revise coal wastewater limits elsewhere.

Huang urged residents in Taipei, Keelung, Taoyaun and Yilan County to reject the project.

If the New Taipei City Government was really concerned about the marine conservation area, it should have spoken up at earlier EIA meetings, rather than criticizing the EIA decision after it was passed, Environmental Protection Administration Deputy Minister Chan Shun-kuei told lawmakers at yesterday’s meeting.

Chan said he wondered if Chu was using the Shenao project for political gain.

However, New Taipei City Environmental Protection Department specialist Sun Chung-wei  told lawmakers that the Fisheries Agency and other experts voiced concerns about the conservation area during the first EIA committee meeting on the proposed changes to the Shenao project on June 15 last year.

Sun was invited to speak to the legislative committee by Chinese Nationalist Party (KMT) Legislator Arthur Chen.

While the New Taipei City Fisheries and Fishing Port Affairs Management Office did not present a “new” opinion during later EIA committee meetings, that did not mean it agreed to the project, Sun said.

However, Chan said that Sun was using a fallacious argument and trying to evade responsibility, as the conservation area had been demarcated by the city government.

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Eskom Wind Power Curtailment reflects South Africa's lockdown-driven drop in electricity demand, prompting grid-balancing measures as Eskom signals reduced IPP procurement from renewable energy projects during low-demand hours, despite guarantees and flexible generation constraints.

Key Points

A temporary reduction of wind IPP purchases by Eskom to balance surplus grid capacity during the COVID-19 lockdown slump

✅ Demand drop of 7,500 MW reduced need for variable renewables.

✅ Curtailment likely during low-demand early-morning hours.

✅ IPP revenues protected via contract extensions and guarantees.

South African state utility Eskom has told independent wind farms that it could buy less of their power in the coming days, as electricity demand has plummeted during a lockdown, reflecting the Covid-19 impact on renewables worldwide, aimed at curbing the spread of the coronavirus.

Eskom, which is mired in a financial crisis and has struggled to keep the lights on in the past year, said on Tuesday that power demand had dropped by more than 7,500 megawatts since the lockdown started on Friday and that it had taken offline some of its own generators.

The utility supplements its generating capacity, which is mainly derived from coal, by buying power from solar and wind farms, as wind becomes a competitive source of electricity globally, under contracts signed as part of the government’s renewable energy programme.

Spokesman Sikonathi Mantshantsha said Eskom had not yet curtailed power procurement from wind farms but that it had told them, echoing industry warnings on wind investment risk seen by the sector, this could happen “for a few hours a day during the next few days, perhaps until the lockdown is lifted”.

“Most of them are able to feed power into the grid in the early hours of the day. That coincides with the lowest demand period and can highlight curtailment challenges when supply exceeds need. And we now have a lot more capacity than needed,” Mantshantsha said.

During the lockdown imposed by President Cyril Ramaphosa, businesses apart from those deemed “essential services” are closed, mirroring Spanish wind factory closures elsewhere. Many power-hungry mines and furnaces have suspended operations.

Eskom has relatively little of its own “flexible generation” capacity, which can be ramped up or down easily, unlike regions riding a renewables boom in South Australia to export power.

The government has committed to buy up to 200 billion rand ($11.1 billion) of electricity from independent power producers and has issued state guarantees for those purchases.

“They will be compensated for their losses, amid U.S. utility-solar slowdowns being reported - each day lost will be added to their contracts,” Mantshantsha said of the wind farms. “In the end they will not be worse off.”

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UK Renewables Surpass Nuclear Milestone as wind farms and solar panels outpace atomic output, cutting greenhouse gas emissions. BEIS data show low-carbon power generation rising while onshore wind subsidies and auction timelines face policy debate.

Key Points

It is the quarter when UK wind and solar generated more electricity than nuclear, signaling cleaner, low-carbon growth.

✅ BEIS reports wind and solar at 18.33 TWh vs nuclear 16.69 TWh

✅ Energy sector emissions fell 8% as coal use dropped

✅ Calls grow to reopen onshore wind support via CFD auctions

Wind farms and solar panels, with wind leading the power mix during key periods, produced more electricity than the UK’s eight nuclear power stations for the first time at the end of last year, official figures show.

Britain’s greenhouse gas emissions also continued to fall, dropping 3% in 2017, as coal use fell and the use of renewables climbed, though low-carbon generation stalled in 2019 according to later data.

Energy experienced the biggest drop in emissions of any UK sector, of 8%, while pollution from transport and businesses stayed flat.

Energy industry chiefs said the figures showed that the government should rethink its ban on onshore wind subsidies, a move that ministers have hinted could happen soon.

Lawrence Slade, chief executive of the big six lobby group Energy UK, said: “We need to keep up the pace ... by ensuring that the lowest cost renewables are no longer excluded from the market.”

Across the whole year, low-carbon sources of power – wind, solar, biomass and nuclear – provided a record 50.4% of electricity, up from 45.7% in 2016, when wind beat coal for the first time.

But in the fourth quarter of 2017, high wind speeds, new renewables installations and lower nuclear output saw wind and solar becoming the second biggest source of power for the first time.

Wind and solar generated 18.33 terawatt hours (TWh), with nuclear on 16.69TWh, and the UK later set a new record for wind power during 2019, the figures published by the Department for Business, Energy and Industrial Strategy show.

But renewables still have a long way to go to catch up with gas, the UK’s top source of electricity at 36.12TWh, which saw its share of generation fall slightly, though at times wind became the main source as capacity expanded.

Greenpeace said the figures showed the government should capitalise on its lead in renewables and “stop wasting time and money propping up nuclear power”.

Horizon Nuclear Power, a subsidiary of the Japanese conglomerate Hitachi, is in talks with Whitehall officials for a financial support package from the government, which it says it needs by midsummer.

By contrast, large-scale solar and onshore wind projects are not eligible for support, after the Conservative government cut subsidies in 2015.

However the energy minister, Claire Perry, recently told House Magazine that “we will have another auction that brings forward wind and solar, we just haven’t yet said when”.

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Ford Oakville EV investment secures government funding, Unifor deal, and plant retooling, channeling $500 million plus $1.98 billion for Canadian electric vehicle manufacturing, Windsor engine contracts, and 2025 production, strengthening Ontario's auto industry.

Key Points

Government and Ford will retool Oakville for EVs, creating jobs under a Unifor deal and Windsor engine work.

✅ $500M government funding for plant retooling

✅ Ford commits $1.98B; five new EVs by 2025

✅ Unifor deal adds Windsor engine work, jobs

The federal government and Ontario have pledged to spend up to $500 million to make the Ford plant in Oakville, Ont., able to build electric vehicles, aligning with efforts to capitalize on the U.S. EV pivot underway.

The future of the plant has been a key question for Canada's automotive industry, as moves like GM's Ontario EV deal point to broader changes, ever since the Unifor union started negotiating with the automaker for a new three-year pact to cover the company's Canadian workforce.

The two sides struck a deal a few hours after a midnight strike deadline on Tuesday morning, one that will see the company commit $1.98 billion to build five new electric vehicles and an engine contract that could yield new EV jobs in Windsor, Ont.

Ford has previously committed to spending $11 billion US to develop and manufacture electric vehicles, but so far all of that money was earmarked for Ford plants in Mexico and the company's home state of Michigan.

"With Oakville gaining such a substantial portion of Ford's planned investment, the assembly plant and its workers are better set for employment going forward," said Sam Fiorani, vice-president of global forecasting at AutoForecast Solutions.

Unifor's 'unique' Ford deal includes 5 new electric vehicles in Oakville, engine for Windsor plants
Currently, the plant builds the Ford Edge and Lincoln Nautilus, but concerns over the plant's future emerged earlier this year when a report suggested Ford was contemplating scrapping the Edge altogether. The new vehicles will come as welcome news for the plant, even as Fiorani says he worries that demand for the electric vehicles (EV) has so far not lived up to the hype.

"The EV market is coming, and Ford looks to be preparing for it. However, the demand is just not growing in line with the proposed investment from all vehicle manufacturers," he said.

Plant needs upgrade first
And the plant can't simply flip a switch and start building an entirely new type of vehicle. It will require a major retooling, and that will require time — and cash — to happen, which is where government cash comes in, as seen with a Niagara Region battery plant supporting the EV supply chain.

As first reported by the Toronto Star, the two branches of government have committed to spent up to $500 million combined to upgrade the plant so that it can build electric vehicles.

"The retooling will begin in 2024 with vehicles rolling off the line in 2025," Unifor president Jerry Dias said. "So we know this is a decades-long commitment."

It's not clear what portion of the cash will come from what branch of government, but CBC News has previously reported that Wednesday's throne speech is expected to contain a number of policies aimed at beefing up Canada's electric vehicle industry, as EV assembly deals are putting Canada in the race, both on the consumer side and for businesses that build them.

Ontario's minister of economic development and trade welcomed the news of a tentative deal on Tuesday and confirmed that Queen's Park legislators stand ready to do their part, as shown by Honda's Ontario battery investment moves in the province.

"Our government will always work with our federal colleagues, workers and the auto sector to ensure the right conditions are in place for the industry to remain stable today and seize the new opportunities of tomorrow," a spokesperson for Vic Fedeli told CBC News in an emailed statement Tuesday.

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bGen Thermal Energy Storage stores high-temperature heat in crushed rocks, enabling on-demand steam, hot water, or hot air; integrates renewables, shifts load with off-peak electricity, and decarbonizes campus heating at SUNY Purchase with NYPA.

Key Points

A rock-based TES system storing heat to deliver steam, hot water, or hot air using renewables or off-peak power.

✅ Uses crushed rocks to store high-temperature heat

✅ Cuts about 550 metric tons CO2 annually at SUNY Purchase

✅ Integrates renewables and off-peak electricity with NYPA

Brenmiller Energy Ltd. (NASDAQ: BNRG), in collaboration with the New York Power Authority (NYPA), a utility pursuing grid software modernization to improve reliability, has successfully deployed its first bGen™ thermal energy storage (TES) system in the United States at the State University of New York (SUNY) Purchase College. This milestone project, valued at $2.5 million, underscores the growing role of TES in advancing sustainable energy solutions.

Innovative TES Technology

The bGen™ system utilizes crushed rocks to store high-temperature heat, which can be harnessed to generate steam, hot air, or hot water on demand. This approach allows for the efficient use of excess renewable energy or off-peak electricity, and parallels microreactor storage advances that broaden thermal options, providing a reliable and cost-effective means of meeting heating needs. At SUNY Purchase College, the bGen™ system is designed to supply nearly 100% of the heating requirements for the Physical Education Building.

Environmental Impact

The implementation of the bGen™ system is expected to eliminate approximately 550 metric tons of greenhouse gas emissions annually. This reduction aligns with New York State's ambitious climate goals, including a 40% reduction in greenhouse gas emissions by 2030, even as transmission constraints can limit cross-border imports. The project also demonstrates the potential of TES to support the state's transition to a cleaner and more resilient energy system.

Collaborative Effort

The successful deployment of the bGen™ system at SUNY Purchase College is the result of a collaborative effort between Brenmiller Energy and NYPA. The project was partially funded by a grant from the Israel-U.S. Binational Industrial Research and Development (BIRD) Foundation. This partnership highlights the importance of international cooperation in advancing innovative energy technologies, as seen in OPG-TVA nuclear collaboration efforts across North America.

Future Prospects

The successful installation and operation of the bGen™ system at SUNY Purchase College serve as a model for broader adoption of TES technology in institutional settings, as OPG's SMR commitment signals parallel low-carbon investment across the region. Brenmiller Energy and NYPA plan to share the project's findings through a webinar hosted by the Renewable Thermal Collaborative on May 19, 2025. This initiative aims to promote the scalability and replicability of TES solutions across New York State and beyond.

As the demand for sustainable energy solutions continues to grow, the successful deployment of the bGen™ system at SUNY Purchase College marks a significant step forward in the integration of TES technology into the U.S. energy landscape, while projects like Pickering B refurbishment underscore parallel clean power investments. The project not only demonstrates the feasibility of TES but also sets a precedent for future initiatives aimed at reducing carbon emissions and enhancing energy efficiency.

Brenmiller Energy's commitment to innovation and sustainability positions the company as a key player in the evolving energy sector. With continued support from partners like NYPA and the BIRD Foundation, and as jurisdictions advance first SMR deployments in North America, Brenmiller Energy is poised to expand the reach of its TES solutions, contributing to a more sustainable and resilient energy future.

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