Power contracts a source of regret

By Orillia Packet & Times


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Like more than a million consumers in Ontario, Dave and Heather Murdock were persuaded by a front-door sales pitch to buy electricity from an energy retailer.

"They let on prices were going to go sky high," Heather Murdock said.

"They were so convincing, we thought, 'Holy crow, we better do something.'"

Now the Murdocks, who live in a new home on Andrew Street built by Habitat for Humanity, are paying 60% more for their electricity than if they had stuck with the Orillia Power Corporation (OPC).

Under the five-year contract signed with a Toronto-based retailer, the Murdocks pay 7.99 cents a kilowatt hour for electricity, three cents more than the five-cent regulated price currently charged by OPC and other municipal utilities across the province.

The leap in prices predicted by the private electricity salesman has not happened.

The Murdocks, who have two children, were living with Heather's parents before they moved into their new house, built as a community project.

"We are the working poor," said Heather, who works for a local household cleaning company.

"We're trying to make ends meet."

The Murdocks also signed up to buy natural gas from the same retailer.

When they got behind in their gas and electric payments, they were forced to seek emergency assistance from the Housing Resource Centre in downtown Orillia.

"Every month our bill was close to $250 to $300."

People on low incomes who get locked into paying far more for electricity than they would through the local utility can quickly get into financial trouble, said Nadine Ritchie, co-ordinator of the resource centre at 33 Mississaga St. E.

"They get into a contract and find their bills have almost doubled. It's a factor, absolutely, in payments becoming unmanageable."

Seniors on fixed incomes are particularly vulnerable to pitches about vaulting electricity costs, Ritchie said.

"They're so afraid because they're on such tight incomes to begin with."

Murdock thinks consumers need to be protected from slick sales people who arrive unbidden at their doors and make dubious claims about the electricity market, disguising exploitation as protection.

"The government should step in," he said.

"These people are taking advantage."

Two retailers, Universal Energy Corporation from Toronto and Summit Energy Management from Mississauga were fined a combined $300,000 earlier this year for making false, misleading or deceptive statements to customers.

But despite the evidence of improper business practices, contracts signed with retailers are still considered valid.

To break their contract, the Murdocks would have to pay a penalty of $500 to $1,000 dollars.

"We're still locked in," Heather Murdock said.

John Mattinson, president of the Orillia Power Corporation, said the municipally owned utility advises customers to read retail electricity contracts very carefully.

"We are aware there has been some misleading information given to some of our customers who have signed up (with retailers)."

Gus Diamantakos, owner of George's Country Restaurant on Colborne Street, said he did well buying natural gas through an energy retailer.

"I was at 28 cents when everybody else was at 42 cents."

But there have been no comparable savings with retail electricity, he said.

"My bills are almost double." Orillia city councillor Maurice McMillan says electricity prices have been regulated since 2002, eliminating the rationale to buy from retailers.

"It's like buying insurance for the moon to fall."

McMillan thinks the electricity retailers should have their licence to peddle their services door-to-door revoked, but the municipality does not have the authority to enact such a ban.

With hundreds of residential consumers in Orillia locked into retail contracts paying $30 more per 1,000 kilowatts of electricity, McMillan estimated $100,000 is being skimmed off local power customers every month.

McMillan did succeed recently in convincing council to pass a resolution asking the Ministry of Energy and Infrastructure to crack down on door-to-door retailing of electricity.

Simcoe North MPP Garfield Dunlop, whose constituency office has received many complaints about aggressive retailers, advises local residents to stay with the local electrical utility.

"At the end of the day, the Ministry of Energy may have to be more forceful with retailers and how business is done by these people," Dunlop said.

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If B.C. wants to electrify all road vehicles by 2055, it will need to at least double its power output: study

B.C. EV Electrification 2055 projects grid capacity needs doubling to 37 GW, driven by electric vehicles, renewable energy expansion, wind and solar generation, limited natural gas, and policy mandates for zero-emission transportation.

 

Key Points

A projection that electrifying all B.C. road transport by 2055 would more than double grid demand to 37 GW.

✅ Site C adds 1.1 GW; rest from wind, solar, limited natural gas.

✅ Electricity price per kWh rises 9%, but fuel savings offset.

✅ Significant GHG cuts with 93% renewable grid under Clean Energy Act.

 

Researchers at the University of Victoria say that if B.C. were to shift to electric power for all road vehicles by 2055, the province would require more than double the electricity now being generated.

The findings are included in a study to be published in the November issue of the Applied Energy journal.

According to co-author and UVic professor Curran Crawford, the team at the university's Pacific Institute for Climate Solutions took B.C.'s 2015 electrical capacity of 15.6 gigawatts as a baseline, and added projected demands from population and economic growth, then added the increase that shifting to electric vehicles would require, while acknowledging power supply challenges that could arise.

They calculated the demand in 2055 would amount to 37 gigawatts, more than double 15.6 gigawatts used in 2015 as a baseline, and utilities warn of a potential EV charging bottleneck if demand ramps up faster than infrastructure.

"We wanted to understand what the electricity requirements are if you want to do that," he said. "It's possible — it would take some policy direction."

B.C. announces $4M in rebates for home and work EV charging stations across the province
The team took the planned Site C dam project into account, but that would only add 1.1 gigawatts of power. So assuming no other hydroelectric dams are planned, the remainder would likely have to come from wind and solar projects and some natural gas.

"Geothermal and biomass were also in the model," said Crawford, adding that they are more expensive electricity sources. "The model we were using, essentially, we're looking for the cheapest options."
Wind turbines on the Tantramar Marsh between Nova Scotia and New Brunswick tower over the Trans-Canada Highway. If British Columbia were to shift to 100 per cent electric-powered ground transportation by 2055, the province would have to significantly increase its wind and solar power generation. (Eric Woolliscroft/CBC)
The electricity bill, per kilowatt hour, would increase by nine per cent, according to the team's research, but Crawford said getting rid of the gasoline and diesel now used to fuel vehicles could amount to an overall cost saving, especially when combined with zero-emission vehicle incentives available to consumers.

The province introduced a law this year requiring that all new light-duty vehicles sold in B.C. be zero emission by 2040, while the federal 2035 EV mandate adds another policy signal, so the researchers figured 2055 was a reasonable date to imagine all vehicles on the road to be electric.

Crawford said hydrogen-powered vehicles weren't considered in the study, as the model used was already complicated enough, but hydrogen fuel would actually require more electricity for the electrolysis, when compared to energy stored in batteries.

Electric vehicles are approaching a tipping point as faster charging becomes more available — here's why
The study also found that shifting to all-electric ground transportation in B.C. would also mean a significant decrease in greenhouse gas emissions, assuming the Clean Energy Act remains in place, which mandates that 93 per cent of grid electricity must come from renewable resources, whereas nationally, about 18 per cent of electricity still comes from fossil fuels, according to 2019 data. 

"Doing the electrification makes some sense — If you're thinking of spending some money to reduce carbon emissions, this is a pretty cost effective way of doing that," said Crawford.

 

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Basin Electric and Clenera Renewable Energy Announce Power Purchase Agreement for Montana Solar Project

Cabin Creek Solar Project Montana delivers 150 MW of utility-scale solar under a Power Purchase Agreement, with Basin Electric and Clenera supplying renewable energy, enhancing grid reliability, and reducing carbon emissions for 30,000 homes.

 

Key Points

A 150 MW solar PPA near Baker by Basin Electric and Clenera, delivering reliable renewable power and carbon reduction.

✅ 150 MW across two 75 MW sites near Baker, Montana

✅ PPA supports Basin Electric's diverse, cost-effective portfolio

✅ Cuts 265,000 tons CO2 and powers 30,000 homes

 

A new solar project in Montana will provide another 150 megawatts (MW) of affordable, renewable power to Basin Electric customers and co-op members across the region.

Basin Electric Power Cooperative (Basin Electric) and Clenera Renewable Energy, announced today the execution of a Power Purchase Agreement (PPA) for the Cabin Creek Solar Project. Cabin Creek is Basin Electric's second solar PPA, and the result of the cooperative's continuing goal of providing a diverse mix of energy sources that are cost-effective for its members.

When completed, Cabin Creek will consist of two, 75-MW projects in southeastern Montana, five miles west of Baker. According to Clenera, the project will eliminate 265,000 tons of carbon dioxide per year and power 30,000 homes, while communities such as the Ermineskin First Nation advance their own generation efforts.

"Renewable technology has advanced dramatically in recent years, with rapid growth in Alberta underscoring broader trends, which means even more affordable power for Basin Electric's customers," said Paul Sukut, CEO and general manager of Basin Electric. "Basin Electric is excited to purchase the output from this project to help serve our members' growing energy needs. Adding solar further promotes our all-of-the-above energy solution as we generate energy using a diverse resource portfolio including coal, natural gas, and other renewable resources to provide reliable, affordable, and environmentally safe generation.

"Clenera is proud to partner with Basin Electric Power Cooperative to support the construction of the Cabin Creek Solar projects in Montana," said Jared McKee, Clenera's director of Business Development. "We truly believe that Basin Electric will be a valuable partner as we aim to deliver today's new era of reliable, battery storage increasingly enabling round-the-clock service, affordable, and clean energy."

"We're pleased that Southeast Electric will be home to the Cabin Creek Solar Project," said Jack Hamblin, manager of Southeast Electric Cooperative, a Basin Electric Class C member headquartered in Ekalaka, Montana. "This project is one more example of cooperatives working together to use economies of scale to add affordable generation for all their members - similar to what was done 70 years ago when cooperatives were first built."

Basin Electric Class A member Upper Missouri Power Cooperative, headquartered in Sidney, Montana, provides wholesale power to Southeast Electric and 10 other distribution cooperatives in western North Dakota and eastern Montana. "It is encouraging to witness the development of cost-competitive energy, including projects in Alberta contracted at lower cost than natural gas that demonstrate market shifts, like the Cabin Creek Solar Project, which will be part of the energy mix we purchase from Basin Electric for our member systems, said Claire Vigesaa, Upper Missouri's general manager. "The energy needs in our region are growing and this project will help us serve both our members, and our communities as a whole."

Cabin Creek will bring significant economic benefits to the local area. According to Clenera, the project will contribute $8 million in property taxes to Fallon County and $5 million for the state of Montana over 35 years. They say it will also create approximately 300 construction jobs and two to three full-time jobs.

"This project underscores the efforts by Montana's electric cooperatives to continue to embrace more carbon-free technology," said Gary Wiens, CEO of Montana Electric Cooperatives' Association. "It also demonstrates Basin Electric's commitment to seek development of renewable energy projects in our state. It's exciting that these two projects combined are 50 times larger than our current largest solar array in Montana."

Cabin Creek is anticipated to begin operations in late 2023.

 

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Seattle City Light's Initiative Helps Over 93,000 Customers Reduce Electricity Bills

Seattle City Light Energy Efficiency Programs help 93,000 residents cut bills with rebates, home energy audits, weatherization, conservation workshops, and sustainability tools, reducing electricity use and greenhouse gas emissions across Seattle communities.

 

Key Points

They are utility programs that lower electricity use and bills via rebates, energy audits, and weatherization services.

✅ Rebates for ENERGY STAR appliances and efficient HVAC upgrades

✅ Free audits with tailored recommendations and savings roadmaps

✅ Weatherization aid for low-income households and renters

 

In a noteworthy achievement for both residents and the environment, Seattle City Light has successfully helped more than 93,000 customers reduce their electricity bills through various energy efficiency programs. This initiative not only alleviates financial burdens for many households, amid concerns about pandemic-era shut-offs that heightened energy insecurity, but also aligns with the city’s commitment to sustainability and responsible energy use.

The Drive for Energy Efficiency

Seattle City Light, the city’s publicly owned electric utility, has been at the forefront of promoting energy efficiency among its customers. Recognizing that energy costs can strain household budgets, the utility has developed a range of programs and tracks emerging utility rate designs to help residents lower their energy consumption and, consequently, their bills.

One of the main aspects of this initiative is the emphasis on education and awareness. By providing customers with tools and resources to understand their energy usage, City Light empowers residents to make informed choices that can lead to substantial savings and prepare for power outage events as well.

Key Programs and Services

Seattle City Light offers a variety of programs aimed at reducing energy consumption. Among the most popular are:

  1. Energy Efficiency Rebates: Customers can receive rebates for purchasing energy-efficient appliances, such as refrigerators, washing machines, and HVAC systems. These appliances are designed to consume less electricity than traditional models, resulting in lower energy bills over time.

  2. Home Energy Audits: Free energy audits are available for residential customers. During these audits, trained professionals assess homes for energy efficiency and provide recommendations on improvements. This personalized service allows homeowners to understand specific changes that can lead to savings.

  3. Weatherization Assistance: This program is particularly beneficial for low-income households. By improving insulation, sealing air leaks, and enhancing overall energy efficiency, residents can maintain comfortable indoor temperatures without over-relying on heating and cooling systems.

  4. Community Workshops: Seattle City Light conducts workshops that educate residents about energy conservation strategies. These sessions cover topics such as smart energy use, seasonal tips for reducing consumption, and the benefits of renewable energy sources, highlighting examples of clean energy engagement in other cities.

The Impact on Households

The impact of these initiatives is profound. By assisting over 93,000 customers in lowering their electricity bills, Seattle City Light not only provides immediate financial relief but also encourages a long-term commitment to energy conservation. This collective effort has resulted in significant reductions in overall energy consumption, contributing to a decrease in greenhouse gas emissions—a critical step in the fight against climate change.

Additionally, the programs have been particularly beneficial for low-income households. By targeting these communities, Seattle City Light ensures that the benefits of energy efficiency reach those who need them the most, promoting equity-focused regulation and access to essential resources.

Looking Ahead: Challenges and Opportunities

While the success of these initiatives is commendable, challenges remain. Fluctuating energy prices can still pose difficulties for many households, especially those on fixed incomes, as some utilities explore minimum charges for low-usage customers in their rate structures. Seattle City Light recognizes the need for ongoing support and resources to help residents navigate these financial challenges.

The utility is committed to expanding its programs to reach even more customers in the future. This includes enhancing outreach efforts to ensure that residents are aware of the available resources, even as debates like utility revenue in a free-electricity future shape planning, and potentially forming partnerships with local organizations to broaden the impact of its initiatives.

 

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BMW boss says hydrogen, not electric, will be "hippest thing" to drive

BMW Hydrogen Fuel Cell Strategy positions iX5 and eDrive for zero-emission mobility, leveraging fuel cells, fast refueling, and hydrogen infrastructure as an alternative to BEVs, diversifying drivetrains across premium segments globally, rapidly.

 

Key Points

BMW's plan to commercialize hydrogen fuel-cell drivetrains like iX5 eDrive for scalable, zero-emission mobility.

✅ Fuel cells enable fast refueling and long range with water vapor only.

✅ Reduces reliance on lithium and cobalt via recyclable materials.

✅ Targets premium SUV iX5; limited pilots before broader rollout.

 

BMW is hanging in there with hydrogen, a stance mirrored in power companies' hydrogen outlook today. That’s what Oliver Zipse, the chairperson of BMW, reiterated during an interview last week in Goodwood, England. 

“After the electric car, which has been going on for about 10 years and scaling up rapidly, the next trend will be hydrogen,” he says. “When it’s more scalable, hydrogen will be the hippest thing to drive.”

BMW has dabbled with the idea of using hydrogen for power for years, even though it is obscure and niche compared to the current enthusiasm surrounding vehicles powered by electricity. In 2005, BMW built 100 “Hydrogen 7” vehicles that used the fuel to power their V12 engines. It unveiled the fuel cell iX5 Hydrogen concept car at the International Motor Show Germany in 2021. 

In August, the company started producing fuel-cell systems for a production version of its hydrogen-powered iX5 sport-utility vehicle. Zipse indicated it would be sold in the United States within the next five years, although in a follow-up phone call a spokesperson declined to confirm that point. Bloomberg previously reported that BMW will start delivering fewer than 100 of the iX5 hydrogen vehicles to select partners in Europe, the U.S., and Asia, where Asia leads on hydrogen fuel cells today, from the end of this year.

All told, BMW will eventually offer five different drivetrains to help diversify alternative-fuel options within the group, as hybrids gain renewed momentum in the U.S., Zipse says.

“To say in the U.K. about 2030 or the U.K. and in Europe in 2035, there’s only one drivetrain, that is a dangerous thing,” he says. “For the customers, for the industry, for employment, for the climate, from every angle you look at, that is a dangerous path to go to.” 

Zipse’s hydrogen dreams could even extend to the group’s crown jewel, Rolls-Royce, which BMW has owned since 1998. The “magic carpet ride” driving style that has become Rolls-Royce’s signature selling point is flexible enough to be powered by alternatives to electricity, says Rolls-Royce CEO Torsten Müller-Ötvös. 

“To house, let’s say, fuel cell batteries: Why not? I would not rule that out,” Müller-Ötvös told reporters during a roundtable conversation in Goodwood on the eve of the debut of the company’s first-ever electric vehicle, Spectre. “There is a belief in the group that this is maybe the long-term future.”

Such a vehicle would contain a hydrogen fuel-cell drivetrain combined with BMW’s electric “eDrive” system. It works by converting hydrogen into electricity to reach an electrical output of up to 125 kW/170 horsepower and total system output of nearly 375hp, with water vapor as the only emission, according to the brand.

Hydrogen’s big advantage over electric power, as EVs versus fuel cells debates note, is that it can supply fuel cells stored in carbon-fiber-reinforced plastic tanks. “There will [soon] be markets where you must drive emission-free, but you do not have access to public charging infrastructure,” Zipse says. “You could argue, well you also don’t have access to hydrogen infrastructure, but this is very simple to do: It’s a tank which you put in there like an old [gas] tank, and you recharge it every six months or 12 months.”

Fuel cells at BMW would also help reduce its dependency on raw materials like lithium and cobalt, because the hydrogen-based system uses recyclable components made of aluminum, steel, and platinum. 

Zipse’s continued commitment to prioritizing hydrogen has become an increasingly outlier position in the automotive world. In the last five years, electric-only vehicles have become the dominant alternative fuel — as the age of electric cars dawns ahead of schedule — if not yet on the road, where fewer than 3% of new cars have plugs, at least at car shows and new-car launches.

Rivals Mercedes-Benz and Audi scrapped their own plans to develop fuel cell vehicles and instead have poured tens of billions of dollars into developing pure-electric vehicle, including Daimler's electrification plan initiatives. Porsche went public to finance its own electric aspirations. 

BMW will make half of all new-car sales electric by 2030 across the group, with many expecting most drivers to go electric within a decade, which includes MINI and Rolls-Royce. 
 

 

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OPINION Rewiring Indian electricity

India Power Sector Crisis: a tangled market of underused plants, coal shortages, cross-subsidies, high transmission losses, and weak PPAs, requiring deregulation, power exchanges, and cost-reflective tariffs to fix insolvency and outages.

 

Key Points

India power market failure from subsidies, coal shortages, and losses, needing deregulation and reflective pricing.

✅ Deregulate to enable spot trading on power exchanges

✅ End cross-subsidies; charge cost-reflective tariffs

✅ Secure coal supply; cut T&D losses and theft

 

India's electricity industry is in a financial and political tangle.

Power producers sit on thousands of megawatts of underutilized plant, while consumers face frequent power cuts, both planned and unplanned.

Financially troubled generators struggle to escape insolvency proceedings. The state-owned banks that have mostly financed power utilities fear that debts of troubled utilities totaling 1.74 trillion rupees will soon go bad.

Aggressive bidding for supply contracts and slower-than-expected demand growth, including a recent demand slump in electricity use, is the root cause. The problems are compounded by difficulties in securing coal and other fuels, high transmission losses, electricity theft and cash-starved distribution companies.

But India's 36 state and union territory governments are contributing mightily to this financial and economic mess. They persist with populist cross-subsidies -- reducing charges for farmers and households at the cost of nonagricultural businesses, especially energy-intensive manufacturing sectors such as steel.

The states refuse to let go of their control over how electricity is produced, distributed and consumed. And they are adamant that true markets, with freedom for large industrial users to buy power at market-determined rates from whichever utility they want at power exchanges -- will not become a reality in India.

State politicians are driven mainly by the electoral need to appease farmers, India's most important vote bank, who have grown used to decades of nearly-free power.

New Delhi is therefore relying on short-term fixes instead of attempting to overhaul a defunct system. Users must pay the real cost of their electricity, as determined by a properly integrated national market free of state-level interference if India's power mess is to be really addressed.

As of Aug. 31, the country's total installed production capacity was 344,689 MW, underscoring its status as the third-largest electricity producer globally by output. Out of that, thermal power comprising coal, gas and diesel accounted for 64%, hydropower 13% and renewables accounted for 20%. Commercial and industrial users accounted for 55% of consumption followed by households on 25% and the remaining 20% by agriculture.

Coal-fired power generation, which contributes roughly 90% of thermal output and the bulk of the financially distressed generators, is the most troubled segment as it faces a secular decline in tariffs due to increasing competition from highly subsidized renewables (which also benefit from falling solar panel costs), coal shortages and weak demand.

The Central Electricity Act (CEA) 2003 opened the gates of the country's power sector for private players, who now account for 45% of generating capacity.

But easy credit, combined with an overconfident estimation of the risks involved, emboldened too many investors to pile in, without securing power purchase agreements (PPAs) with distribution companies.

As a result, power capacity grew at an annual compound rate of 11% compared to demand at 6% in the last decade leading to oversupply.

This does not mean that the electricity market is saturated. Merely that there are not enough paying customers. Distributors have plenty of consumers who will not or cannot pay, even though they have connections. There is huge unmet demand for power. There are 32 million Indian homes -- roughly 13% of the total -- mostly rural and poor with no access to electricity.

Moreover, consumption by those big commercial and industrial users which do not enjoy privileged rates is curbed by high prices, driven up by the cost of subsidizing others, extra charges on exchange-traded power and transmission and distribution losses (including theft) of 20-30%.

With renewables increasingly becoming cheaper, financially stressed distributors are avoiding long-term power purchase agreements, preferring spot markets. Meanwhile, coal shortages force generators to buy expensive imported coal supplies or cut output. The operating load for most private generators, which suffer particularly acute coal shortages in compared to state-owned utilities, has fallen from 84% in 2009-2010 to 55% now.

Smoothing coal supplies should be the top priority. Often coal is denied to power generators without long-term purchase contracts. Such discrimination in coal allocation prevails -- because the seller (state-run Coal India and its numerous subsidiaries) is an inefficient monopolist which cannot produce enough and rations coal supplies, favoring state-run generators over private.

To help power producers, New Delhi plans measures including auctioning power sales contracts with assured access to coal. However, even though coal and electricity shortages eased recently, such short-term fixes won't solve the problem. With electricity prices in secular decline, distributors are not seeking long-term supply contracts -- rather they are often looking for excuses to get out of existing agreements.

India needs a fundamental two-step reform. First, the market must be deregulated to allow most bulk suppliers and users to move to power trading exchanges, which currently account for just 10% of the market.

This would lead to genuine price discovery in a spot market and, in time, lead to the trading of electricity futures contracts. That would help in consumers and producers hedge their respective costs and revenues and safeguard their economic positions without any need for government intervention.

The second step to a healthy electricity industry is for consumers to pay the real cost of power. Cross-subsidization must end. That would promote optimal electricity use, innovation and environmental protection. Farmers enjoying nearly-free power create ecological problems by investing in water-guzzling crops such as rice and sugar cane.

Most industrial consumers, who do not have power supply privileges, have their businesses distorted and delayed by high prices. Lowering their costs would encourage power-intensive manufacturing to expand, and in the process, boost electricity demand and improve capacity utilization.

Of course, cutting theft is central to making consumers pay their way. Government officials must stop turning a blind eye to theft, especially when such transmission and distribution losses average 20%.

Politicians who want to continue subsidizing farmers or assist the poor can do so by paying cash out directly to their bank accounts, instead of wrongly relying on the power sector.

Such market-oriented reforms have long been blocked by state-level politicians, who now enjoy the influence born of operating subsidies and interfering in the sector. New Delhi must address this opposition. Narendra Modi, as a self-styled reforming prime minister, should have the courage to bite this bullet and convince state governments (starting with those ruled by his Bharatiya Janata Party) to reform. To encourage cooperation, he could offer states securing real improvements an increased share of centrally collected taxes.

Ritesh Kumar Singh is to be the chief economist of the new policy research and advocacy company Indonomics Consulting. He is former assistant director of the Finance Commission of India.

 

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On the road to 100 per cent renewables

US Climate Alliance 100% Renewables 2035 accelerates clean energy, electrification, and decarbonization, replacing coal and gas with wind, solar, and storage to cut air pollution, lower energy bills, create jobs, and advance environmental justice.

 

Key Points

A state-level target for alliance members to meet all electricity demand with renewable energy by 2035.

✅ 100% RES can meet rising demand from electrification

✅ Major health gains from reduced SO2, NOx, and particulates

✅ Jobs grow, energy burdens fall, climate resilience improves

 

The Union of Concerned Scientists joined with COPAL (Minnesota), GreenRoots (Massachusetts), and the Michigan Environmental Justice Coalition, to better understand the feasibility and implications of leadership states meeting 100 percent of their electricity needs with renewable energy by 2035, a target reflected in federal clean electricity goals under discussion today.

We focused on 24 member states of the United States Climate Alliance, a bipartisan coalition of governors committed to the goals of the 2015 Paris Climate Agreement. We analyzed two main scenarios: business as usual versus 100 percent renewable electricity standards, in line with many state clean energy targets now in place.

Our analysis shows that:

Climate Alliance states can meet 100 percent of their electricity consumption with renewable energy by 2035, as independent assessments of zero-emissions feasibility suggest. This holds true even with strong increases in demand due to the electrification of transportation and heating.

A transition to renewables yields strong benefits in terms of health, climate, economies, and energy affordability.

To ensure an equitable transition, states should broaden access to clean energy technologies and decision making to include environmental justice and fossil fuel-dependent communitieswhile directly phasing out coal and gas plants.

Demands for climate action surround us. Every day brings news of devastating "this is not normal" extreme weather: record-breaking heat waves, precipitation, flooding, wildfires. To build resilience and mitigate the worst impacts of the climate crisis requires immediate action to reduce heat-trapping emissions and transition to renewable energy, including practical decarbonization strategies adopted by states.

On the Road to 100 Percent Renewables explores actions at one critical level: how leadership states can address climate change by reducing heat-trapping emissions in key sectors of the economy as well as by considering the impacts of our energy choices. A collaboration of the Union of Concerned Scientists and local environmental justice groups COPAL (Minnesota), GreenRoots (Massachusetts), and the Michigan Environmental Justice Coalition, with contributions from the national Initiative for Energy Justice, assessed the potential to accelerate the use of renewable energy dramatically through state-level renewable electricity standards (RESs), major drivers of clean energy in recent decades. In addition, the partners worked with Greenlink Analytics, an energy research organization, to assess how RESs most directly affect people's lives, such as changes in public health, jobs, and energy bills for households.

Focusing on 24 members of the United States Climate Alliance (USCA), the study assesses the implications of meeting 100 percent of electricity consumption in these states, including examples like Rhode Island's 100% by 2030 plan that inform policy design, with renewable energy in the near term. The alliance is a bipartisan coalition of governors committed to reducing heat-trapping emissions consistent with the goals of the 2015 Paris climate agreement.[1]

On the Road to 100 Percent Renewables looks at three types of results from a transition to 100 percent RES policies: improvements in public health from decreasing the use of coal and gas2 power plants; net job creation from switching to more labor-oriented clean energy; and reduced household energy bills from using cleaner sources of energy. The study assumes a strong push to electrify transportation and heating to address harmful emissions from the current use of fossil fuels in these sectors. Our core policy scenario does not focus on electricity generation itself, nor does it mandate retiring coal, gas, and nuclear power plants or assess new policies to drive renewable energy in non-USCA states.

Our analysis shows that:

USCA states can meet 100 percent of their electricity consumption with renewable energy by 2035 even with strong increases in demand due to electrifying transportation and heating.

A transition to renewables yields strong benefits in terms of health, climate, economies, and energy affordability.

Renewable electricity standards must be paired with policies that address not only electricity consumption but also electricity generation, including modern grid infrastructure upgrades that enable higher renewable shares, both to transition away from fossil fuels more quickly and to ensure an equitable transition in which all communities experience the benefits of a clean energy economy.

Currently, the states in this analysis meet their electricity needs with differing mixes of electricity sourcesfossil fuels, nuclear, and renewables. Yet across the states, the study shows significant declines in fossil fuel use from transitioning to clean electricity; the use of solar and wind powerthe dominant renewablesgrows substantially:

In the study's "No New Policy" scenario"business as usual"coal and gas generation stay largely at current levels over the next two decades. Electricity generation from wind and solar grows due to both current policies and lowest costs.

In a "100% RES" scenario, each USCA state puts in place a 100 percent renewable electricity standard. Gas generation falls, although some continues for export to non-USCA states. Coal generation essentially disappears by 2040. Wind and solar generation combined grow to seven times current levels, and three times as much as in the No New Policy scenario.

A focus on meeting in-state electricity consumption in the 100% RES scenario yields important outcomes. Reductions in electricity from coal and gas plants in the USCA states reduce power plant pollution, including emissions of sulfur dioxide and nitrogen oxides. By 2040, this leads to 6,000 to 13,000 fewer premature deaths than in the No New Policy scenario, as well as 140,000 fewer cases of asthma exacerbation and 700,000 fewer lost workdays. The value of the additional public health benefits in the USCA states totals almost $280 billion over the two decades. In a more detailed analysis of three USCA statesMassachusetts, Michigan, and Minnesotathe 100% RES scenario leads to almost 200,000 more added jobs in building and installing new electric generation capacity than the No New Policy scenario.

The 100% RES scenario also reduces average energy burdens, the portion of household income spent on energy. Even considering household costs solely for electricity and gas, energy burdens in the 100% RES scenario are at or below those in the No New Policy scenario in each USCA state in most or all years. The average energy burden across those states declines from 3.7 percent of income in 2020 to 3.0 percent in 2040 in the 100% RES scenario, compared with 3.3 percent in 2040 in the No New Policy scenario.

Decreasing the use of fossil fuels through increasing the use of renewables and accelerating electrification reduces emissions of carbon dioxide (CO2), with implications for climate, public health, and economies. Annual CO2 emissions from power plants in USCA states decrease 58 percent from 2020 to 2040 in the 100% RES scenario compared with 12 percent in the No New Policy scenario.

The study also reveals gaps to be filled beyond eliminating fossil fuel pollution from communities, such as the persistence of gas generation to sell power to neighboring states, reflecting barriers to a fully renewable grid that policy must address. Further, it stresses the importance of policies targeting just and equitable outcomes in the move to renewable energy.

Moving away from fossil fuels in communities most affected by harmful air pollution should be a top priority in comprehensive energy policies. Many communities continue to bear far too large a share of the negative impacts from decades of siting the infrastructure for the nation's fossil fuel power sector in or near marginalized neighborhoods. This pattern will likely persist if the issue is not acknowledged and addressed. State policies should mandate a priority on reducing emissions in communities overburdened by pollution and avoiding investments inconsistent with the need to remove heat-trapping emissions and air pollution at an accelerated rate. And communities must be centrally involved in decisionmaking around any policies and rules that affect them directly, including proposals to change electricity generation, both to retire fossil fuel plants and to build the renewable energy infrastructure.

Key recommendations in On the Road to 100 Percent Renewables address moving away from fossil fuels, increasing investment in renewable energy, and reducing CO2 emissions. They aim to ensure that communities most affected by a history of environmental racism and pollution share in the benefits of the transition: cleaner air, equitable access to good-paying jobs and entrepreneurship alternatives, affordable energy, and the resilience that renewable energy, electrification, energy efficiency, and energy storage can provide. While many communities can benefit from the transition, strong justice and equity policies will avoid perpetuating inequities in the electricity system. State support to historically underserved communities for investing in solar, energy efficiency, energy storage, and electrification will encourage local investment, community wealth-building, and the resilience benefits the transition to renewable energy can provide.

A national clean electricity standard and strong pollution standards should complement state action to drive swift decarbonization and pollution reduction across the United States. Even so, states are well positioned to simultaneously address climate change and decades of inequities in the power system. While it does not substitute for much-needed national and international leadership, strong state action is crucial to achieving an equitable clean energy future.

 

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