Kentucky city conducting 'Kilowatt Crackdown'

By Associated Press


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More than 200 Louisville buildings are shedding kilowatts.

The businesses and government agencies are taking part in Louisville's first "Kilowatt Crackdown," an 18-month energy-efficiency challenge that began last year and wraps up in December with the goal of saving money and helping the environment through competition.

The efforts are being tracked using tools from the U.S. Environmental Protection Agency.

"If you can reduce energy consumption in your building, you are going to save in the operating expenses of your company," said Chris Cieminski, general manager of the 35-story Aegon Center and chairman of the Louisville Energy Alliance, the nonprofit group overseeing the Kilowatt Crackdown. "Long term, if we reduce our overall consumption, it means LG&E (Louisville Gas & Electric) doesn't have to build another power plant."

Louisville joins Portland, Ore., and Seattle — two cities noted for their environmental initiatives — in offering the challenge through the EPA's Energy Star program, EPA manager Leslie Cook told The Courier-Journal.

The idea germinated two years ago, Cieminski said, when Louisville Mayor Jerry Abramson approached business leaders about the initiative and put them in touch with the EPA. Participants in the Kilowatt Crackdown signed up last year and have agreed to track their energy usage and document their conservation measures this year.

Winners will be announced in 2010. Cieminski said the alliance intends to offer another challenge that year.

The Aegon Center — which already has been certified as an Energy Star building, meaning it meets certain federal standards for energy efficiency — has recently installed several new types of energy-efficient lighting, including some in its elevators, Cieminski said.

Multiple participants in the challenge say they are taking it seriously.

"We are absolutely going to give it our best," said David Noltemeyer, a facilities and real-estate manager for nearby Humana, which entered three of its Louisville buildings in this year's challenge.

As one of its initiatives, Humana upgraded the elevators in its Waterside Building so that the motors shut down when not in a high traffic period, Noltemeyer said.

Kroger entered 10 of its grocery stores in the competition, said Jason Conn, an engineer with Kroger and member of the alliance board.

Kroger initiatives include energy audits where crews check the stores at night to ensure cooler doors are closed, computer screens are off and other equipment is operating efficiently, he said.

Conn said Kroger also is trying out energy-sipping LED lighting in some refrigerated and frozen-food cases.

Jefferson County Public Schools entered dozens of buildings, the most of any organization, in an effort to save on the $18 million it spends annually on utility bills.

Several facilities are getting new heating and air conditioning, and all will be subject to improved energy management, said Mike Mulheirn, director of facilities for the district.

"If we could reduce our energy by 3 percent, that would save us half a million bucks," he said.

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Longer, more frequent outages afflict the U.S. power grid as states fail to prepare for climate change

Power Grid Climate Resilience demands storm hardening, underground power lines, microgrids, batteries, and renewable energy as regulators and utilities confront climate change, sea level rise, and extreme weather to reduce outages and protect vulnerable communities.

 

Key Points

It is the grid capacity to resist and recover from climate hazards using buried lines, microgrids, and batteries.

✅ Underground lines reduce wind outages and wildfire ignition risk.

✅ Microgrids with solar and batteries sustain critical services.

✅ Regulators balance cost, resilience, equity, and reliability.

 

Every time a storm lashes the Carolina coast, the power lines on Tonye Gray’s street go down, cutting her lights and air conditioning. After Hurricane Florence in 2018, Gray went three days with no way to refrigerate medicine for her multiple sclerosis or pump the floodwater out of her basement.

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“Florence was hell,” said Gray, 61, a marketing account manager and Wilmington native who finds herself increasingly frustrated by the city’s vulnerability.

“We’ve had storms long enough in Wilmington and this particular area that all power lines should have been underground by now. We know we’re going to get hit.”

Across the nation, severe weather fueled by climate change is pushing aging electrical systems past their limits, often with deadly results. Last year, amid increasing nationwide blackouts, the average American home endured more than eight hours without power, according to the U.S. Energy Information Administration — more than double the outage time five years ago.

This year alone, a wave of abnormally severe winter storms caused a disastrous power failure in Texas, leaving millions of homes in the dark, sometimes for days, and at least 200 dead. Power outages caused by Hurricane Ida contributed to at least 14 deaths in Louisiana, as some of the poorest parts of the state suffered through weeks of 90-degree heat without air conditioning.

As storms grow fiercer and more frequent, environmental groups are pushing states to completely reimagine the electrical grid, incorporating more grid-scale batteries, renewable energy sources and localized systems known as “microgrids,” which they say could reduce the incidence of wide-scale outages. Utility companies have proposed their own storm-proofing measures, including burying power lines underground.

But state regulators largely have rejected these ideas, citing pressure to keep energy rates affordable. Of $15.7 billion in grid improvements under consideration last year, regulators approved only $3.4 billion, according to a national survey by the NC Clean Energy Technology Center — about one-fifth, highlighting persistent vulnerabilities in the grid nationwide.

After a weather disaster, “everybody’s standing around saying, ‘Why didn’t you spend more to keep the lights on?’ ” Ted Thomas, chairman of the Arkansas Public Service Commission, said in an interview with The Washington Post. “But when you try to spend more when the system is working, it’s a tough sell.”

A major impediment is the failure by state regulators and the utility industry to consider the consequences of a more volatile climate — and to come up with better tools to prepare for it. For example, a Berkeley Lab study last year of outages caused by major weather events in six states found that neither state officials nor utility executives attempted to calculate the social and economic costs of longer and more frequent outages, such as food spoilage, business closures, supply chain disruptions and medical problems.

“There is no question that climatic changes are happening that directly affect the operation of the power grid,” said Justin Gundlach, a senior attorney at the Institute for Policy Integrity, a think tank at New York University Law School. “What you still haven’t seen … is a [state] commission saying: 'Isn’t climate the through line in all of this? Let’s examine it in an open-ended way. Let’s figure out where the information takes us and make some decisions.’ ”

In interviews, several state commissioners acknowledged that failure.

“Our electric grid was not built to handle the storms that are coming this next century,” said Tremaine L. Phillips, a commissioner on the Michigan Public Service Commission, which in August held an emergency meeting to discuss the problem of power outages. “We need to come up with a broader set of metrics in order to better understand the success of future improvements.”

Five disasters in four years
The need is especially urgent in North Carolina, where experts warn Atlantic grids and coastlines need a rethink as the state has declared a federal disaster from a hurricane or tropical storm five times in the past four years. Among them was Hurricane Florence, which brought torrential rain, catastrophic flooding and the state’s worst outage in over a decade in September 2018.

More than 1 million residents were left disconnected from refrigerators, air conditioners, ventilators and other essential machines, some for up to two weeks. Elderly residents dependent on oxygen were evacuated from nursing homes. Relief teams flew medical supplies to hospitals cut off by flooded roads. Desperate people facing closed stores and rotting food looted a Wilmington Family Dollar.

“I have PTSD from Hurricane Florence, not because of the actual storm but the aftermath,” said Evelyn Bryant, a community organizer who took part in the Wilmington response.

The storm reignited debate over a $13 billion proposal by Duke Energy, one of the largest power companies in the nation, to reinforce the state’s power grid. A few months earlier, the state had rejected Duke’s request for full repayment of those costs, determining that protecting the grid against weather is a normal part of doing business and not eligible for the type of reimbursement the company had sought.

After Florence, Duke offered a smaller, $2.5 billion plan, along with the argument that severe weather events are one of seven “megatrends” (including cyberthreats and population growth) that require greater investment, according to a PowerPoint presentation included in testimony to the state. The company owns the two largest utilities in North Carolina, Duke Energy Carolinas and Duke Energy Progress.

Vote Solar, a nonprofit climate advocacy group, objected to Duke’s plan, saying the utility had failed to study the risks of climate impacts. Duke’s flood maps, for example, had not been updated to reflect the latest projections for sea level rise, they said. In testimony, Vote Solar claimed Duke was using environmental trends to justify investments “it had already decided to pursue.”

The United States is one of the few countries where regulated utilities are usually guaranteed a rate of return on capital investments, even as studies show the U.S. experiences more blackouts than much of the developed world. That business model incentivizes spending regardless of how well it solves problems for customers and inspires skepticism. Ric O’Connell, executive director of GridLab, a nonprofit group that assists state and regional policymakers on electrical grid issues, said utilities in many states “are waving their hands and saying hurricanes” to justify spending that would do little to improve climate resilience.

In North Carolina, hurricanes convinced Republicans that climate change is real

Duke Energy spokesman Jeff Brooks acknowledged that the company had not conducted a climate risk study but pointed out that this type of analysis is still relatively new for the industry. He said Duke’s grid improvement plan “inherently was designed to think about future needs,” including reinforced substations with walls that rise several feet above the previous high watermark for flooding, and partly relied on federal flood maps to determine which stations are at most risk.

Brooks said Duke is not using weather events to justify routine projects, noting that the company had spent more than a year meeting with community stakeholders and using their feedback to make significant changes to its grid improvement plan.

This year, the North Carolina Utilities Commission finally approved a set of grid improvements that will cost customers $1.2 billion. But the commission reserved the right to deny Duke reimbursement of those costs if it cannot prove they are prudent and reasonable. The commission’s general counsel, Sam Watson, declined to discuss the decision, saying the commission can comment on specific cases only in public orders.

The utility is now burying power lines in “several neighborhoods across the state” that are most vulnerable to wide-scale outages, Brooks said. It is also fitting aboveground power lines with “self-healing” technology, a network of sensors that diverts electricity away from equipment failures to minimize the number of customers affected by an outage.

As part of a settlement with Vote Solar, Duke Energy last year agreed to work with state officials and local leaders to further evaluate the potential impacts of climate change, a process that Brooks said is expected to take two to three years.

High costs create hurdles
The debate in North Carolina is being echoed in states across the nation, where burying power lines has emerged as one of the most common proposals for insulating the grid from high winds, fires and flooding. But opponents have balked at the cost, which can run in the millions of dollars per mile.

In California, for example, Pacific Gas & Electric wants to bury 10,000 miles of power lines, both to make the grid more resilient and to reduce the risk of sparking wildfires. Its power equipment has contributed to multiple deadly wildfires in the past decade, including the 2018 Camp Fire that killed at least 85 people.

PG&E’s proposal has drawn scorn from critics, including San Jose Mayor Sam Liccardo, who say it would be too slow and expensive. But Patricia Poppe, the company’s CEO, told reporters that doing nothing would cost California even more in lost lives and property while struggling to keep the lights on during wildfires. The plan has yet to be submitted to the state, but Terrie Prosper, a spokeswoman for the California Public Utilities Commission, said the commission has supported underground lines as a wildfire mitigation strategy.

Another oft-floated solution is microgrids, small electrical systems that provide power to a single neighborhood, university or medical center. Most of the time, they are connected to a larger utility system. But in the event of an outage, microgrids can operate on their own, with the aid of solar energy stored in batteries.

In Florida, regulators recently approved a four-year microgrid pilot project, but the technology remains expensive and unproven. In Maryland, regulators in 2016 rejected a plan to spend about $16 million for two microgrids in Baltimore, in part because the local utility made no attempt to quantify “the tangible benefits to its customer base.”

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In Texas, where officials have largely abandoned state regulation in favor of the free market, the results have been no more encouraging. Without requirements, as exist elsewhere, for building extra capacity for times of high demand or stress, the state was ill-equipped to handle an abnormal deep freeze in February that knocked out power to 4 million customers for days.

Since then, Berkshire Hathaway Energy and Starwood Energy Group each proposed spending $8 billion to build new power plants to provide backup capacity, with guaranteed returns on the investment of 9 percent, but the Texas legislature has not acted on either plan.

New York is one of the few states where regulators have assessed the risks of climate change and pushed utilities to invest in solutions. After 800,000 New Yorkers lost power for 10 days in 2012 in the wake of Hurricane Sandy, state regulators ordered utility giant Con Edison to evaluate the state’s vulnerability to weather events.

The resulting report, which estimated climate risks could cost the company as much as $5.2 billion by 2050, gave ConEd data to inform its investments in storm hardening measures, including new storm walls and submersible equipment in areas at risk of flooding.

Meanwhile, the New York Public Service Commission has aggressively enforced requirements that utility companies keep the lights on during big storms, fining utility providers nearly $190 million for violations including inadequate staffing during Tropical Storm Isaias in 2020.

“At the end of the day, we do not want New Yorkers to be at the mercy of outdated infrastructure,” said Rory M. Christian, who last month was appointed chair of the New York commission.

The price of inaction
In North Carolina, as Duke Energy slowly works to harden the grid, some are pursuing other means of fostering climate-resilient communities.

Beth Schrader, the recovery and resilience director for New Hanover County, which includes Wilmington, said some of the people who went the longest without power after Florence had no vehicles, no access to nearby grocery stores and no means of getting to relief centers set up around the city.

For example, Quanesha Mullins, a 37-year-old mother of three, went eight days without power in her housing project on Wilmington’s east side. Her family got by on food from the Red Cross and walked a mile to charge their phones at McDonald’s. With no air conditioning, they slept with the windows open in a neighborhood with a history of violent crime.

Schrader is working with researchers at the University of North Carolina in Charlotte to estimate the cost of helping people like Mullins. The researchers estimate that it would have cost about $572,000 to provide shelter, meals and emergency food stamp benefits to 100 families for two weeks, said Robert Cox, an engineering professor who researches power systems at UNC-Charlotte.

Such calculations could help spur local governments to do more to help vulnerable communities, for example by providing “resilience outposts” with backup power generators, heating or cooling rooms, Internet access and other resources, Schrader said. But they also are intended to show the costs of failing to shore up the grid.

“The regulators need to be moved along,” Cox said.

In the meantime, Tonye Gray finds herself worrying about what happens when the next storm hits. While Duke Energy says it is burying power lines in the most outage-prone areas, she has yet to see its yellow-vested crews turn up in her neighborhood.

“We feel,” she said, “that we’re at the end of the line.”

 

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Ontario confronts reality of being short of electricity in the coming years

Ontario electricity shortage is looming, RBC and IESO warn, as EV electrification surges, Pickering nuclear faces delays, and gas plants backstop expiring renewables, raising GHG emissions and grid reliability concerns across the province.

 

Key Points

A projected supply shortfall as demand rises from electrification, expiring contracts, and delayed nuclear capacity.

✅ RBC warns shortages as early as 2026, significant by 2030

✅ IESO sees EV-driven demand; 5,000-15,000 MW by 2035

✅ Gas reliance boosts GHGs; Pickering life extension assessed

 

In a fit of ideological pique, Doug Ford’s government spent more than $200 million to scrap more than 700 green energy projects soon after winning the 2018 election, amid calls to make clean, affordable power a central issue, portraying them as “unnecessary and expensive energy schemes.”

A year later, then Associate Energy Minister Bill Walker defended the decision, declaring, “Ontario has an adequate supply of power right now.”

Well, life moves fast. At the time, scrapping the renewable energy projects was criticized as short-sighted and wasteful, raising doubts about whether Ontario was embracing clean power in a meaningful way. It seems especially so now as Ontario confronts the reality of being short of electricity in the coming years.

How short? A recent report by RBC calls the situation “urgent,” saying that Canada’s most populous province could face energy shortages as early as 2026. As contracts for non-hydro renewables and gas plants expire, the shortages could be “significant” by 2030, the bank report said, with grid greening costs adding to the challenge.

The Independent Electricity System Operator (IESO), which manages the electrical supply in Ontario, says demand for electricity could rise at rates not seen in many years, as the government moves to add new gas plants to boost capacity. “Economic growth coming out of the pandemic, along with electrification in many sectors, is driving energy use up,” the agency said in a December assessment.

The good news is that demand is being driven, in part, by the transition to “green” power – carbon-emission-free electricity – by sectors such as transportation and manufacturing. That will help reduce emissions. Yet meeting that demand presents some challenges, prompting the province to outline a plan to address growing needs across the system. The shift to electric vehicles alone is expected to cause a spike in demand starting in 2030. By 2035, the province could need an additional 5,000 to 15,000 megawatts of electricity, the IESO estimates.

It was perhaps no surprise then to see the province announce last week that it wants to delay the long-planned closing of the Pickering nuclear plant by a year to 2026, even as others note the station is slated to close as planned. Operations beyond that would require refurbishing the facility. The province said it’s taking a fresh look at whether that would make sense to extend its life by another 30 years.

In the interim, the province will be forced to dramatically ramp up its reliance on natural gas plants for electricity generation – and, as analysts warn, Ontario’s power mix could get dirtier even before new non-emitting capacity is built, and in the process, increase greenhouse gas emissions from the energy grid by 400 per cent. Broader electrification is expected to produce “significant” GHG emissions reductions in Ontario over the next two decades, according to the IESO. Still, it’s working at cross-purposes if your electric car is charged by electricity generated by fossil fuels.

 

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Canadian Electricity Grids Increasingly Exposed to Harsh Weather

North American Grid Reliability faces extreme weather, climate change, demand spikes, and renewable variability; utilities, AESO, and NERC stress resilience, dispatchable capacity, interconnections, and grid alerts to prevent blackouts during heatwaves and cold snaps.

 

Key Points

North American grid reliability is the ability to meet demand during extreme weather while maintaining stability.

✅ Extreme heat and cold drive record demand and resource strain.

✅ Balance dispatchable and intermittent generation for resilience.

✅ Expand interconnections, capacity, and demand response to avert outages.

 

The recent alerts in Alberta's electricity grid during extreme cold have highlighted a broader North American issue, where power systems are more susceptible to being overwhelmed by extreme weather impacts on reliability.

Electricity Canada's chief executive emphasized that no part of the grid is safe from the escalating intensity and frequency of weather extremes linked to climate change across the sector.

“In recent years, during these extreme weather events, we’ve observed record highs in electricity demand,” he stated.

“It’s a nationwide phenomenon. For instance, last summer in Ontario and last winter in Quebec, we experienced unprecedented demand levels. This pattern of extremes is becoming more pronounced across the country.”

The U.S. has also experienced strain on its electricity grids due to extreme weather, with more blackouts than peers documented in studies. Texas faced power outages in 2021 due to winter storms, and California has had to issue several emergency grid alerts during heat waves.

In Canada, Albertans received a government emergency alert two weeks ago, urging an immediate reduction in electricity use to prevent potential rotating blackouts as temperatures neared -40°C. No blackouts occurred, with a notable decrease in electricity use following the alert, according to the Alberta Electric System Operator (AESO).

AESO's data indicates an increase in grid alerts in Alberta for both heatwaves and cold spells, reflecting dangerous vulnerabilities noted nationwide. The period between 2017 and 2020 saw only four alerts, in contrast to 17 since 2021.

Alberta's electricity grid reliability has sparked political debate, including proposals for a western Canadian grid to improve reliability, particularly with the transition from coal-fired plants to increased reliance on intermittent wind and solar power. Despite this debate, the AESO noted that the crisis eased when wind and solar generation resumed, despite challenges with two idled gas plants.

Bradley pointed out that Alberta's grid issues are not isolated. Every Canadian region is experiencing growing electricity demand, partly due to the surge in electric vehicles and clean energy technologies. No province has a complete solution yet.

“Ontario has had to request reduced consumption during heatwaves,” he noted. “Similar concerns about energy mix are present in British Columbia or Manitoba, especially now with drought affecting their hydro-dependent systems.”

The North American Electric Reliability Corporation (NERC) released a report in November warning of elevated risks across North America this winter for insufficient energy supplies, particularly under extreme conditions like prolonged cold snaps.

While the U.S. is generally more susceptible to winter grid disruptions, and summer blackout warnings remain a concern, the report also highlights risks in parts of Canada. Saskatchewan faces a “high” risk due to increased demand, power plant retirements, and maintenance, whereas Quebec and the Maritimes are at “elevated risk.”

Mark Olson, NERC’s manager of reliability assessments, mentioned that Alberta wasn't initially considered at risk, illustrating the challenges in predicting electricity demand amid intensifying extreme weather.

Rob Thornton, president and CEO of the International District Energy Association, acknowledged public concerns about grid alerts but reassured that the risk of a catastrophic grid failure remains very low.

“The North American grid is exceptionally reliable. It’s a remarkably efficient system,” he said.

However, Thornton emphasized the importance of policies for a resilient and reliable electricity system through 2050 and beyond. This involves balancing dispatchable and intermittent electricity sources, investing in extra capacity, enhancing macrogrids and inter-jurisdictional connections, and more.

“These grid alerts raise awareness, if not anxiety, about our energy future,” Thornton concluded.

 

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Nuclear plant workers cite lack of precautions around virus

Millstone COVID-19 safety concerns center on a nuclear refueling outage in Connecticut, temporary workers, OSHA complaints, PPE shortages, and disinfecting protocols, as Dominion Energy addresses virus precautions, staffing, and cybersecurity for safe voting infrastructure.

 

Key Points

Employee and union claims about PPE, cleaning, and OSHA compliance during a refueling outage at the nuclear plant.

✅ 10 positive cases; 750 temporary workers during refueling outage

✅ Union cites PPE gaps, partitions, and disinfectant effectiveness

✅ Dominion Energy notes increased cleaning, communication, staffing

 

Workers at Connecticut's only nuclear power plant worry that managers are not taking enough precautions against the coronavirus, as some utilities weigh on-site staffing measures to maintain operations, after 750 temporary employees were brought in to help refuel one of the two active reactors.

Ten employees at the Millstone Power Station in Waterford have tested positive for the virus, and, amid a U.S. grid pandemic warning, the arrival of the temporary workers alarms some of the permanent employees, The Day newspaper reported Sunday.

"Speaking specifically for the guard force, there's a lot of frustration, there's a lot of concern, and I would say there's anger," said Millstone security officer Jim Foley.

Foley, vice president of the local chapter of the United Government Security Officers of America, noted broader labor concerns such as unpaid wages for Kentucky miners while saying security personnel have had to fight for personal protective equipment and for partitions at access points to separate staff from security.

Foley also has filed a complaint with the Occupational Safety and Health Administration saying Millstone staff are using ineffective cleaning materials and citing a lack of cleaning and sanitizing, as telework limits at the EPA drew scrutiny during the pandemic, he said.

Officials at Millstone, owned by Dominion Energy, have not heard internal criticism about the plant's virus precautions, Millstone spokesman Kenneth Holt said.

"We've actually gotten a lot of compliments from employees on the steps we've taken," he said. "We've stepped up communications with employees to let them know what's going on."

As another example of communication efforts, COVID-19 updates at Site C have been published to keep workers informed.

Millstone recently increased cleaning staff on the weekends, Holt said, and there is regular disinfecting at the plant.

Separately, utility resilience remains a concern, as extended outages for tornado survivors in Kentucky may last weeks, affecting essential services.

Responding to the complaint about ineffective cleaning materials, Holt said staff members early in the pandemic went to a Home Depot and got a bottle of disinfectant that wasn't approved by the federal government as effective against the coronavirus. An approved disinfectant was brought in the next day, he said.

The deaths of nearly 2,500 Connecticut residents have been linked to COVID-19, the disease caused by the virus. More than 29,000 state residents have tested positive. As of Sunday, hospitalizations had declined for 11 consecutive days, to over 1,480.

With more people working remotely, utilities have reported higher residential electricity use during the pandemic, affecting household bills.

For most people, the coronavirus causes mild or moderate symptoms, such as fever and cough, that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia, and death.

In other developments related to the coronavirus:

SAFE VOTING

Secretary of the State Denise Merrill released a plan Monday aimed at making voting safe during the Aug. 11 primary and Nov. 3 general election.

Merrill said her office is requiring all cities and towns in the state to submit plans for the two elections that include a list of cleaning and safety products to be used, a list of polling locations, staffing levels at each polling location, and the names of polling workers and moderators.

Municipalities will be eligible for grants to cover the extra costs of holding elections during a pandemic, including expenses for cleaning products and increased staffing.

Merrill also announced her office and the Connecticut National Guard will perform a high-level cybersecurity assessment of the election infrastructure of all 169 towns in the state to guard against malicious actors.

Merrill's office also will provide network upgrades to the election infrastructures of 20 towns that have had chronic problems with connecting to the elections system.

 

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EDP Plans to Reject $10.9 Billion-China Three Gorges Bid

EDP Takeover Bid Rejection signals pushback on China Three Gorges' acquisition bid, as investors, shareholders, and analysts cite low premium, valuation concerns, and strategic renewables assets across Portugal, the US, Brazil, and Europe utilities.

 

Key Points

EDP's board views China Three Gorges' 3.26 euro per share offer as too low, citing valuation and renewables exposure.

✅ Bid premium 4.8% above close seen as inadequate.

✅ Stock surged above offer; market expects higher price.

✅ Advisors UBS and Morgan Stanley guiding EDP.

 

EDP-Energias de Portugal SA is poised to reject a 9.1 billion euro ($10.9 billion) takeover offer from China Three Gorges Corp. on the grounds that it undervalues Portugal’s biggest energy company, according to people with knowledge of the matter.

The board of EDP, which may meet as early as this week, views the current bid of 3.26 euros a share as too low as it indicates a premium of 4.8 percent over Friday’s close, said the people, asking not to be identified because the discussions are private. EDP is also working with advisers including UBS Group AG and Morgan Stanley on the potential deal, they said.

Representatives for EDP, UBS and Morgan Stanley declined to comment. Representatives for Three Gorges didn’t immediately respond to requests for comment.

#google#

Shares of EDP surged the most in a decade to above the bid level on Monday, signaling that investors expect the Chinese utility, which is its biggest investor, to sweeten the offer to gain full control. For Three Gorges, which spent two decades building a hydro-power plant spanning China’s Yangtze River, the deal would bolster its efforts to expand abroad and give it deeper access to markets in Europe, the U.S. and Brazil.

China’s biggest renewable-energy developer already is the largest shareholder of EDP with a 23 percent stake and now is seeking more than 50 percent. While the government in Lisbon has indicated it’s comfortable with the Chinese offer, EDF electricity price deal illustrates policy dynamics in the region and it holds out little incentive for shareholders to tender their stock.

 

Stock Jumps

Shares of EDP rose 9.3 percent to 3.40 euros in Lisbon on Monday, even as rolling back European electricity prices remains challenging, after earlier jumping by the most since October 2008.

“We believe the price offered is too low for China Three Gorges to achieve full control of a vehicle that provides, among other things, a strategic footprint into U.S. renewables,” Javier Garrido, an analyst at JPMorgan Chase & Co., said in a note. “We expect management and minorities to claim a higher price.”

The offer adds to a wave of investments China has made overseas, both to earn a yield on its cash and to gain expertise in industries ranging from energy to telecommunications and transport. Concern about those deals has been mounting in the U.S. regulatory arena recently. European Union governments have been divided in their response, with Portugal among those most supportive of inward investment.

“China Three Gorges is an ambitious company, with expansion already in international hydro, Chinese onshore wind and floating solar, and European offshore wind,” said Angus McCrone, a senior analyst at Bloomberg New Energy Finance in London. “It may have to do better on bid price than the 5 percent premium so far offered for EDP.”

 

Fortum’s Troubles

The low premium offered by Three Gorges echoes the struggle Fortum Oyj had in winning over investors in its bid for Uniper SE last year, while North American deals such as Hydro One’s Avista bid faced customer backlash as well, highlighting parallels. The Finnish utility offered 8 billion euros to buy out the remainder of Uniper in September, immediately sending shares of the German power generator above the offer prices. At least for now, Fortum has settled for a 47 percent stake it bought in Uniper from EON SE, and most other shareholders decided to keep their stake.

The EDP transaction would advance a wave of consolidation among Europe’s leading utilities, which are acquiring assets and development skills in renewables as governments across the region crack down on pollution. EDP is one of Europe’s leading developers of renewable energy, building mainly wind farms and hydro plants, and has expanded in markets including Brazil and the U.S. electrification market.

 

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840 million people have no electricity – World Bank must fund more energy projects

World Bank Energy Policy debates financing for coal, oil, gas, and renewables to fight energy poverty, expand grid reliability, ensure baseload power, and balance climate goals with development finance for affordable, reliable electricity access.

 

Key Points

It outlines the bank's stance on financing fossil fuels and renewables to expand affordable, reliable electricity.

✅ Focus on energy access, baseload reliability, and poverty alleviation

✅ Debate over coal, gas, and renewables in development finance

✅ Geopolitics: China and Russia fill funding gaps, raising risks

 

Why isn’t the World Bank using all available energy resources in its global efforts to fight poverty? That’s the question I’ve asked World Bank President David Malpass. Nearly two years ago, the multilateral development bank decided to stop supporting critical coal, oil and gas projects that help people in developing countries escape poverty.

Along with 11 other senators, and as a member who votes on whether to give U.S. taxpayer dollars to the World Bank, I am pressing the bank to lift these restrictions. Developing countries desperately need access to a steady supply of affordable, reliable clean electricity to support economic growth.

The World Bank has pulled funding for critical electricity projects in poor countries, including high-efficiency power stations that are fueled by coal, even as efforts to revitalize coal communities with clean energy have grown.

Despite Kosovo having the world’s fifth-largest reserves of coal, the bank announced it would only support new energy projects from renewable sources going forward. Kosovo’s Minister of Economic Development Valdrin Lluka responded: “We don’t have the luxury to do such experiments in a poor country such as Kosovo. … It is in our national security interest to secure base energy inside our country.”

The World Bank’s misguided move comes as 840 million people worldwide are living without electricity, including 70 percent of sub-Saharan Africa, and as the fall in global energy investment may lead to shortages.

Even more troubling, nearly 3 billion people in developing countries rely on fuels like wood and other biomass for cooking and home heating, resulting in serious health problems and premature deaths, and the pandemic saw widespread electricity shut-offs that deepened energy insecurity. In 2016, household smoke killed an estimated 2.6 million people.

The World Bank’s mission is to lift people out of poverty. The bank is now compromising that mission in favor of a political agenda targeting certain energy sources.

With the World Bank blocking financing to affordable and reliable energy projects, Russia and China are stepping up their investments in order to gain geopolitical leverage.

President Vladimir Putin is pursuing Russian oil and gas projects in Mozambique, Gabon, and Angola. China’s Belt and Road Initiative is supporting traditional energy resources, with 36 percent of its power projects from 2014 to 2017 involving coal. South Africa had to turn to the China Development Bank to fund its $1.5 billion coal-fired power plant.

There are real risks for countries partnering with China and Russia on these projects. Developing countries are facing what some are calling China’s “debt trap” diplomacy. These nations have also raised concerns over safety compliance, unfair business practices, and labor standards.

As the bank’s largest contributor, the United States has a duty to make sure U.S. taxpayer dollars are used wisely and effectively. Every U.S. dollar at the World Bank should make a difference for people in the developing world.

My colleagues and I have asked the bank to pursue an all-of-the-above energy strategy as it strives to achieve its mission to end extreme poverty and promote shared prosperity. We will take the bank’s response into account during the congressional appropriations process.

The United States is a top global energy producer. And yet Democrats running for president are pursuing anti-energy policies that would hurt not only the United States but the entire world, with implications for U.S. national security as well.

Utilizing our abundant energy resources has fueled an American energy renaissance and a booming U.S. economy, even as disruptions in coal and nuclear have strained the grid, with millions of new jobs and higher wages.

People who are struggling to survive and thrive in developing countries deserve the same opportunity to access affordable and reliable sources of power.

As Microsoft founder and global philanthropist Bill Gates has noted of renewables: "Many people experiencing energy poverty live in areas without access to the kind of grids that are needed to make those technologies cheap and reliable enough to replace fossil fuels."

Ultimately, there is a role for all sources of energy to help countries alleviate poverty and improve the education, health and wellbeing of their people.

The solution to ending energy poverty does not lie in limiting options, but in using all available options. The World Bank must recommit to ending extreme poverty by helping countries use all of the world’s abundant energy resources. Let’s end energy poverty now.

 

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