Where to invest: smart grid or renewable energy?

By Reuters


CSA Z462 Arc Flash Training - Electrical Safety Essentials

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$249
Coupon Price:
$199
Reserve Your Seat Today
Meeting energy needs while being efficient and using environmentally responsible technologies is probably the single greatest change that needs to happen to alter the effects of climate change now.

In the United States and the European Union, governments are backing smart grid and renewable energy programs. Undoubtedly, the two technologies go hand-in-hand, but where should we put our efforts (and dollars/euros) first? What is a smart grid?

According to the U.S. Department of Energy:

Grid 2030 vision calls for the construction of a 21st century electric system that connects everyone to abundant, affordable, clean, efficient, and reliable electric power anytime, anywhere. We can achieve this through a smart grid, which would integrate advanced functions into the nation's electric grid to enhance reliability, efficiency, and security, and would also contribute to the climate change strategic goal of reducing carbon emissions.

These advancements will be achieved by modernizing the electric grid with information-age technologies, such as microprocessors, communications, advanced computing, and information technologies.

President Obama has funded smart grid technologies in the Economic Stimulus Package, and there is no doubt that a large amount of power is wasted with our current grid system; however, would it be better to invest in renewable energy now? Off-Grid explains:

The greedy and slothful companies are in fact motivated by billions of economic stimulus dollars being handed out. The stimulus money could be used more effectively installing renewable power and microgrids in local communities. Harvesting extra efficiency from the national grid could postpone the next power plant, but so could introducing widespread household-level renewables. Installing micro-grids everywhere would cut down on the losses made in transmission.

The current national grid system is inefficient. Large amounts of power is lost in transmission and generating stations. Off-Grid reports:

Transmission and distribution lines are imperfect conductors, with over 10% of power lost as heat. If these so-called line losses were reduced by a tenth on the distribution system alone, the power saved would equal all the wind generation installed in the U.S. in 2006, according to the industry's Electric Power Research Institute, or EPRI. That's 2,454 megawatts, or approximately the equivalent of three typical coal-fired power plants.

Why haven't the utility companies already implemented smart grid technologies using their own profits? The answer is because they are motivated by money, and there has been no incentive to do so until Obama's stimulus package came along. The European Union faces another problem from its aging grid system.

According to a report from Europe's leading science academies, the EU will not be able to distribute the renewable energy (20% of all energy) they have committed to build by 2020. In fact, problems with the EU grid could appear as soon as 2011. A solution is to create off-grid and micro-grid supplies for small communities rather than overhaul the entire grid system. Off-Grid explains:

Scandinavian countries potentially have excess capacity in hydroelectric plants that could, ideally, be sold to places such as Germany. If agreements can be made with north African countries, solar power collected in the Sahara desert could be transported up into southern Europe. "In order to do that, you need to design the transmission system so it can cope with the large power flows through existing countries' networks (but) Italy's transmission system is not designed for that, nor is Spain's."

Distributing energy efficiently is important no matter the source, but we need to invest in alternative energy now. Creating micro grids that use renewable energy seems like the logical first step while the larger grid infrastructure system is improved.

Related News

Ontario Providing Electricity Relief to Families, Small Businesses and Farms During COVID-19

Ontario TOU Electricity Rate Relief offers 24/7 fixed off-peak pricing at 10.1¢/kWh, suspending time-of-use tiers to support residential customers, small businesses, and farms, coordinated by the Ontario Energy Board during COVID-19.

 

Key Points

A 45-day policy fixing TOU power at 10.1¢/kWh 24/7 off-peak to ease costs for residents, small businesses, and farms.

✅ Applies 24/7 off-peak 10.1¢/kWh to all TOU electricity customers.

✅ Automatic bill credit; no application or enrollment required.

✅ Covers residential, small businesses, and farms; OEB coordination.

 

To support Ontarians through the rapidly evolving COVID-19 situation, the Government of Ontario is providing immediate electricity rate relief for families, small businesses and farms paying time-of-use (TOU) rates.

For a 45-day period, the government is working to suspend time-of-use electricity rates, holding electricity prices to the off-peak rate of 10.1 cents-per-kilowatt-hour. This reduced price will be available 24 hours per day, seven days a week to all time-of-use customers, who make up the majority of electricity consumers in the province. By switching to a fixed off-peak rate, time-of-use customers will see rate reductions of over 50 per cent compared to on-peak rates now in effect.

To deliver savings as quickly and conveniently as possible, this discount will be applied automatically to electricity bills without the need for customers to fill out an application form.

"During this unprecedented time, we are providing much-needed relief to Ontarians, specifically helping those who are doing the right thing by staying home and small businesses that have closed or are seeing fewer customers," said Premier Doug Ford. "By adopting a fixed, 24/7 off-peak rate, aligned with ultra-low overnight pricing options, we are making things a little easier during these difficult times and putting more money in people's pockets for other important priorities and necessities."

The Government of Ontario issued an Emergency Order under the Emergency Management and Civil Protection Act to apply the off-peak TOU electricity rate for residential, small businesses, and farm customers who currently pay TOU rates.

"Ontario is fortunate to have a strong electricity system we can rely on during these exceptional times, even as Ottawa's electricity consumption decreased during the pandemic, and our government is proud to provide additional relief to Ontarians who are doing their part to stay home," said Greg Rickford, Minister of Energy, Northern Development and Mines.

"We thank the Ontario Energy Board and our partners at local distribution companies across the province, including initiatives like Hydro One's Ultra-Low Overnight Price Plan that support customers, for taking quick action to make this change and provide immediate support for hardworking people of Ontario," said Bill Walker, Associate Minister of Energy.

Visit Ontario's website to learn more about how the province continues to protect Ontarians from COVID-19.

Quick Facts

  • The Ontario Energy Board sets time-of-use electricity rates for residential and small business customers through the Regulated Price Plan, and provides stable electricity pricing for industrial and commercial companies through separate programs.
  • Time-of-use prices as of November, 2019 ― Off-Peak: 10.1₵/kWh, Mid-Peak: 14.4₵/kWh, On-Peak: 20.8₵/kWh
  • Depending on billing cycles, some customers will see these changes on their next electricity bill. TOU customers whose billing cycle ended before their local distribution company implemented this change will receive the reduced rate as a credit on a future bill.
  • The Ontario Electricity Rebate (OER) will continue to provide a 31.8 per cent rebate on the sub-total bill amount for all existing Regulated Price Plan (RPP) consumers.
  • There are approximately five million residential consumers, farms and some small businesses billed using time-of-use (TOU) electricity prices under the RPP.
  • The Ontario Energy Board has extended the winter ban on disconnections to July 31st.

 

Related News

View more

Overturning statewide vote, Maine court energizes Hydro-Quebec's bid to export power

Maine Hydropower Transmission Line revived by high court after referendum challenge, advancing NECEC, Hydro-Quebec supply, Central Maine Power partnership, clean energy integration, grid reliability, and lower rates across New England pending land-lease ruling.

 

Key Points

A court-revived NECEC line delivering 1,200 MW of Hydro-Quebec hydropower via CMP to strengthen the New England grid.

✅ Maine high court deems retroactive referendum unconstitutional

✅ Pending state land lease case may affect final route

✅ Project could lower rates and cut emissions in New England

 

Maine's highest court on Tuesday breathed new life into a $1-billion US transmission line that aims to serve as conduit for Canadian hydropower, after construction starts drew scrutiny, ruling that a statewide vote rebuking the project was unconstitutional.

The Supreme Judicial Court ruled that the retroactive nature of the referendum last year violated the project developer's constitutional rights, sending it back to a lower court for further proceedings.

The court did not rule in a separate case that focuses on a lease for a 1.6-kilometre portion of the proposed power line that crosses state land.

Central Maine Power's parent company and Hydro-Québec teamed up on the project that would supply up to 1,200 megawatts of Canadian hydropower, amid the ongoing Maine-Quebec corridor debate in the region. That's enough electricity for one million homes.

Most of the proposed 233-kilometre power transmission line would be built along existing corridors, but a new 85-kilometre section was needed to reach the Canadian border, echoing debates around the Northern Pass clash in New Hampshire.

Workers were already clearing trees and setting poles when the governor asked for work to be suspended after the referendum in November 2021, mirroring New Hampshire's earlier rejection of a Quebec-Massachusetts proposal that rerouted regional plans. The Maine Department of Environmental Protection later suspended its permit, but that could be reversed depending on the outcome of legal proceedings.

The high court was asked to weigh in on two separate lawsuits. Developers sought to declare the referendum unconstitutional while another lawsuit focused on a lease allowing transmission lines to cross a short segment of state-owned land.

Supporters say bold projects such as this one, funded by ratepayers in Massachusetts, are necessary to battle climate change and introduce additional electricity into a region that's heavily reliant on natural gas, which can cause spikes in energy costs, as seen with Nova Scotia rate increases recently across the Atlantic region.

Critics say the project's environmental benefits are overstated — and that it would harm the woodlands in western Maine.

It was the second time the Supreme Judicial Court was asked to weigh in on a referendum aimed at killing the project. The first referendum proposal never made it onto the ballot after the court raised constitutional concerns.

Although the project is funded by Massachusetts ratepayers, the introduction of so much electricity to the grid would serve to stabilize or reduce electricity rates for all consumers, proponents contend, even as Manitoba Hydro rate hikes face opposition elsewhere.

The referendum on the project was the costliest in Maine history, topping $90 million US and underscoring deep divisions.

The high-stakes campaign put environmental and conservation groups at odds, and pitted utilities backing the project, amid the Hydro One-Avista backlash, against operators of fossil fuel-powered plants that stand to lose money.

 

Related News

View more

Uzbekistan Looks To Export Electricity To Afghanistan

Surkhan-Pul-e-Khumri Power Line links Uzbekistan and Afghanistan via a 260-kilometer transmission line, boosting electricity exports, grid reliability, and regional trade; ADB-backed financing could open Pakistan's energy market with 24 million kWh daily.

 

Key Points

A 260-km line to expand Uzbekistan power exports to Afghanistan, ADB-funded, with possible future links to Pakistan.

✅ 260 km Surkhan-Pul-e-Khumri transmission link

✅ +70% electricity exports; up to 24M kWh daily

✅ ADB $70M co-financing; $32M from Uzbekistan

 

Senior officials with Uzbekistan’s state-run power company have said work has begun on building power cables to Afghanistan that will enable them to increase exports by 70 per cent, echoing regional trends like Ukraine resuming electricity exports after grid repairs.

Uzbekenergo chief executive Ulugbek Mustafayev said in a press conference on March 24 that construction of the Afghan section of the 260-kilometer Surkhan-Pul-e-Khumri line will start in June.

The Asian Development Bank has pledged $70 million toward the final expected $150 million bill of the project. Another $32 million will come from Uzbekistan.

Mustafayev said the transmission line would give Uzbekistan the option of exporting up to 24 million kilowatt hours to Afghanistan daily, similar to Ukraine's electricity export resumption amid shifting regional demand.

“We could potentially even reach Pakistan’s energy market,” he said, noting broader regional ambitions like Iran's bid to be a power hub linking regional grids.

#google#

This project was given fresh impetus by Afghan President Ashraf Ghani’s visit to Tashkent in December, mirroring cross-border energy cooperation such as Iran-Iraq energy talks in the region. His Uzbek counterpart, Shavkat Mirziyoyev, had announced at the time that work was set to begin imminently on the line, which will run from the village of Surkhan in Uzbekistan’s Surkhandarya region to Pul-e-Khumri, a town in Afghanistan just south of Kunduz.

In January, Mirziyoyev issued a decree ordering that the rate for electricity deliveries to Afghanistan be dropped from $0.076 to $0.05 per kilowatt.

Mustafayev said up to 6 billion kilowatt hours of electricity could eventually be sent through the power lines. More than 60 billion kilowatt hours of electricity was produced in Uzbekistan in 2017.

According to Tulabai Kurbonov, an Uzbek journalist specializing in energy issues, the power line will enable the electrification of the the Hairatan-Mazar-i-Sharif railroad joining the two countries. Trains currently run on diesel. Switching over to electricity will help reduce the cost of transporting cargo.

There is some unhappiness, however, over the fact that Uzbekistan plans to sell power to Afghanistan when it suffers from significant shortages domestically and wider Central Asia electricity shortages persist.

"In the villages of the Ferghana Valley, especially in winter, people are suffering from a shortage of electricity,” said Munavvar Ibragimova, a reporter based in the Ferghana Valley. “You should not be selling electricity abroad before you can provide for your own population. What we clearly see here is the favoring of the state’s interests over those of the people.”

 

Related News

View more

After Quakes, Puerto Rico's Electricity Is Back On For Most, But Uncertainty Remains

Puerto Rico Earthquakes continue as a seismic swarm with aftershocks, landslides near Pef1uelas, damage in Ponce and Guayanilla, grid outages from Costa Sur Plant, PREPA recovery, vulnerable buildings post-Hurricane Maria raising safety concerns.

 

Key Points

Recurring seismic events impacting Puerto Rico, causing damage, aftershocks, outages, and displacement.

✅ Seismic swarm with 6.4 and 5.9 magnitude quakes and ongoing aftershocks

✅ Costa Sur Plant offline; PREPA urges conservation amid grid repairs

✅ Older, code-deficient buildings and landslides raise safety risks

 

Some in Puerto Rico are beginning to fear the ground will never stop shaking. The island has been pummeled by hundreds of earthquakes in recent weeks, including the recent 5.9 magnitude temblor, where there were reports of landslides in the town of Peñuelas along the southern coast, rattling residents already on edge from the massive 6.4 magnitude quake, and raising wider concerns about climate risks to the grid in disaster-prone regions.

That was the largest to strike the island in more than a century causing hundreds of structures to crumble, forcing thousands from their homes and leaving millions without power, a scenario echoed by Texas power outages during winter storms too. One person was killed and several others injured.

Utility says 99% of customers have electricity

Puerto Rico's public utility, PREPA, tweeted some welcome news Monday: that nearly all of the homes and businesses it serves have had electric power restored. Still it is urging customers to conserve energy amid utility supply-chain shortages that can slow critical repairs.

Reporting from the port city of Ponce, NPR's Adrian Florido said the Costa Sur Plant, which produces more than 40% of Puerto Rico's electricity, was badly damaged in last week's quake. It remains offline indefinitely, even as grid operators elsewhere have faced California blackout warnings during extreme heat.

He also reports many residents are still reeling from the devastation caused by Hurricane Maria, a deadly Category 4 storm that battered the island in September 2017. The storm exposed the fact that buildings across the island were not up to code, similar to how aging systems have contributed to PG&E power line fires in California. The series of earthquakes are only amplifying fears that structures have been further weakened.

"People aren't coping terribly well," Florido said on NPR's Morning Edition Monday, noting that households elsewhere have endured pandemic power shutoffs and burdensome bills.

Many earthquake victims sleeping outdoors

Florido spoke to one displaced resident, Leticia Espada, who said more than 50 homes in her town of Guayanilla, about an hour drive east of the port city of Ponce, had collapsed.

After sleeping outside for days on her patio following Tuesday's quake, she eventually came to her town's baseball stadium where she's been sleeping on one of hundreds of government-issued cots.

She's like so many others sleeping in open-air shelters, many unwilling to go back to their homes until they've been deemed safe, while even far from disaster zones, brief events like a Northeast D.C. outage show how fragile service can be.

"Thousands of people across several towns sleeping in tents or under tarps, or out in the open, protected by nothing but the shade of a tree with no sense of when these quakes are going to stop," Florido reports.

 

Related News

View more

'Unlayering' peak demand could accelerate energy storage adoption

Duration Portfolio Energy Storage aligns layered peak demand with right-sized batteries, enabling peak shaving, gas peaker replacement, and solar-plus-storage synergy while improving grid flexibility, reliability, and T&D deferral through two- to four-hour battery durations.

 

Key Points

An approach that layers battery durations to match peaks, cut costs, replace peakers, and boost grid reliability.

✅ Layers 2- to 4-hour batteries by peak duration

✅ Enables solar-plus-storage and peak shaving

✅ Cuts T&D upgrades, emissions, and fuel costs

 

The debate over energy storage replacing gas-fired peakers has raged for years, but a new approach that shifts the terms of the argument could lead to an acceleration of storage deployments.

Rather than looking at peak demand as a single mountainous peak, some analysts now advocate a layered approach that allows energy storage to better match peak needs and complement ongoing efforts to improve solar and wind power across the grid.

"You don’t have to have batteries that run to infinity."

Some developers of solar-plus-storage projects, bolstered by cheap batteries, say they can already compete head-to-head with gas-fired peakers. "I can beat a gas peaker anywhere in the country today with a solar-plus-storage power plant," Tom Buttgenbach, president and CEO of developer 8minutenergy Renewables, recently told S&P Global.

Customers are very busy these days and rebate programs need to fit the speed of their life. Participation should be quick, easy, and accessible anywhere.

Others disagree. Storage is not disruptive for generation, but will be disruptive for transmission and distribution, Kris Zadlo, executive vice president and chief development officer at Invenergy, told the audience at a Bloomberg New Energy Finance conference last spring. Invenergy, like many renewable power developers, develops generation, energy storage and transmission projects.

But there is another path that avoids the pitfalls of positions on either end of the all-or-none approach. "Do the analysis of the need itself," Ray Hohenstein, market applications director at Fluence, told Utility Dive. If the need is only two hours in duration, it may be best served by a two-hour battery. "You don’t have to have batteries that run to infinity."

 

Storage vs. fossil fuel peakers

Energy storage has several benefits over traditional fossil fuel peaking plants, Hohenstein said. It is instantaneous, it has no emissions and requires no fuel, and has limited infrastructure needs. It can also help the grid absorb higher levels of renewable generation by soaking up excess output, such as solar power at noon, and many planned storage additions will be paired with solar in the next few years. But the one thing energy storage cannot do, he said, is provide limitless energy.

So, instead of looking at replacing an individual peaker, Hohenstein advocated a "duration portfolio" approach that uses energy storage to shave peak load.

If the need is for 150 MW of resources that will never need to run for more than two hours at a time, then a battery is "quite cheap," significantly less than a four or eight-hour battery, said Hohenstein. "If you fill up your peak by duration layer, it could be more cost effective."

 

NREL research driver

Fluence’s approach is informed by research by Paul Denholm and Robert Margolis at the National Renewable Energy Laboratory (NREL), released last spring.

The NREL researchers looked at the California market where they said 11 GW of fossil fuel capacity is expected to be retired by 2029 because of new once-through-cooling requirements that are taking effect. A lot of that capacity is peaking capacity and, according to NREL’s analysis, a large fraction could be replaced with four-hour energy storage, assuming continued storage cost reductions and growth in solar installations.

The key in NREL’s research was the level of solar power penetration. There is a "synergistic" relationship between solar penetration and storage deployment, the researchers wrote, and other studies suggest wind and solar could meet 80% of U.S. demand as these trends continue.

 

Related News

View more

BC Hydro cryptic about crypto mining electricity use

BC Hydro Crypto Mining Moratorium pauses high-load connection requests, as BCUC reviews electricity demand, gigawatt-hours and megawatt load forecasts, data center growth, and potential rate impacts on the power grid and industrial customers.

 

Key Points

A BC order pausing crypto mining connections while BC Hydro and BCUC assess load, grid impacts, and ratepayer risks.

✅ 18-month pause on new high-load crypto connections

✅ 1,403 MW in requests suspended; 273 MW existing or pending

✅ Seeks to manage demand, rates, and grid reliability

 

In its Nov. 1, 2022 load update briefing note to senior executives of the Crown corporation, BC Hydro shows that the entire large industrial sector accounted for 6,591 gigawatt-hours during the period – one percent less than forecast in the service plan.

BC Hydro censored load statistics about crypto mining, coal mining and chemicals from the briefing note, which was obtained under the freedom of information law and came amid scrutiny over B.C. electricity imports because it feared that disclosure would harm Crown corporation finances and third-party business interests.

Crypto mining requires high-powered computers to run and be cooled around the clock constantly. So much so that cabinet ordered the BC Utilities Commission (BCUC) last December to place an 18-month moratorium on crypto mining connection requests, while other jurisdictions, such as the N.B. Power crypto review, undertook similar pauses to assess impacts.


In a news release, the government said 21 projects seeking 1,403 megawatts were temporarily suspended. The government said that would be enough to power 570,000 homes or 2.1 million electric vehicles for a year.

A report issued by BC Hydro before Christmas said there were already 166 megawatts of power from operational projects at seven sites. Another six projects with 107 megawatts were nearing connection, bringing its total load to 273 megawatts.

Richard McCandless, a retired assistant deputy minister who analyzes the performance of BC Hydro and the Insurance Corp of British Columbia, said China's May 2021 ban on crypto mining had a major ripple effect on those seeking cheap and reliable power.

"When China cracked down, these guys fled to different areas," McCandless said in an interview. "So they took their computers and went somewhere else. Some wound up in B.C."

He said BC Hydro's secrecy about crypto loads appears rooted in the Crown corporation underestimating load demand, even as new generating stations were commissioned to bolster capacity.

"Crypto is up so dramatically; they didn't want to show that," McCandless said. "Maybe they didn't want to be seen as being asleep at the switch."

Indeed, BCUC's April 21 decision on BC Hydro's 2021 revenue forecasts through the 2025 fiscal year included BC Hydro's forecast increase for crypto and data centres of about 100 gigawatt-hours through fiscal 2024 before returning to 2021 levels by 2025. In addition, the BCUC document said that BC Hydro's December 2020 load forecast was lower than the previous one because of project cancellations and updated load requests, amid ongoing nuclear power debate in B.C.

"Given the segment's continued uncertainty and volatility, the forecast assumes these facilities are not long-lived," the BC Hydro application said.

A September 2022 report to the White House titled "Crypto-Assets in the United States" said increased electricity demand from crypto-asset mining could lead to rate increases.

"Crypto-asset mining in upstate New York increased annual household electric bills by [US]$82 and annual small business electric bills by [US]$164, with total net losses from local consumers and businesses estimated to be [US]$179 million from 2016-2018," the report said. The information mentioned Plattsburgh, New York's 18-month moratorium in 2018. Manitoba announced a similar suspension almost a month before B.C.

B.C.'s total core domestic load of 23,666 gigawatt-hours was two percent higher than the service plan amid BC Hydro call for power planning, with commercial and light industrial (9,198 gigawatt-hours) and residential (7,877 gigawatt-hours) being the top two customer segments.

"A cooler spring and warmer summer supported increased loads, as the Western Canada drought strained hydropower production regionally. However, warmer daytime temperatures in September impacted heating more than cooling," said the briefing note.

"Commercial and light industrial consumption benefited from warmer temperatures in August but has also been impacted to a lesser degree by the reduced heating load in the first three weeks of October."

Loads improved relative to 2021, but offices, retail businesses and restaurants remained below pre-pandemic levels. Education, recreation and hotel sectors were in line with pre-pandemic levels. Light industrial sector growth offset the declines.

For heavy industry, pulp and paper electricity use was 15 percent ahead of forecast, but wood manufacturing was 16 percent below forecast. The briefing note said oil and gas grew nine percent relative to the previous year but, alongside ongoing LNG power demand, fell nine percent below the service plan.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2025 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified