Toronto Hydro urged to spark solar panel industry

New England Grid Reform Initiative aligns governors with ISO New England to reshape market design, boost grid reliability, accelerate renewable energy and offshore wind, explore carbon pricing and forward clean energy markets, and bolster accountability.

Key Points

Five states aim to reform ISO New England markets, prioritize renewables and reliability, and test carbon pricing.

✅ Governors seek market design aligned with clean energy mandates

✅ ISO-NE accountability and stakeholder engagement prioritized

✅ Explore carbon pricing and forward clean energy market options

Weeks after initiating a broad overhaul of utility regulation within its borders, Connecticut has recruited four New England states, as Maine debates a 145-mile transmission line project to rework the regional grid that is overseen by ISO New England, the independent system operator charged with ensuring a reliable supply of electricity from power plants.

In a written statement Thursday morning, Gov. Ned Lamont said the current structure “has actively hindered” states’ efforts to phase out polluting power plants in favor of renewable sources like wind turbines and solar panels, while increasing costs “to fix market design failures” in his words. Lamont’s energy policy chief Katie Dykes has emerged as a vocal critic of ISO New England’s structure and priorities, in her role as commissioner of the Connecticut Department of Energy and Environmental Protection.

“When Connecticut opted to deregulate our electricity market, we wanted the benefits of competition — to achieve lower-cost energy, compatible with meeting our clean-energy goals,” Dykes said in a telephone interview Thursday afternoon. “We have a partner [in] ISO New England, to manage this grid and design a market that is not thwarting our clean-energy goals, but achieving them; and not ignoring consumers’ concerns. ... That’s really what we are looking to do — reclaim the benefits of competition and regional cooperation.”

Lamont and his counterparts in Massachusetts, Rhode Island, Vermont and Maine plan to release a “vision document” in their words on Friday through the New England States Committee on Electricity, after New Hampshire rejected a Quebec-Massachusetts transmission proposal that sought to import Canadian hydropower.

The initial documents made no mention of New Hampshire, which likewise obtains electricity through the wholesale markets managed by ISO New England and has seen clashes over the Northern Pass hydropower project in recent years; and whose Seabrook Station is one two nuclear power plants in New England alongside Dominion Energy’s Millstone Power Station in Waterford. Gov. Chris Sununu’s office did not respond immediately to a query on why New Hampshire is not participating.

Connecticut and the four other states outlined a few broad goals that they will hone over the coming months. Those include creating a better market structure and planning process supporting the conversion to renewables; improving grid reliability, with measures such as an emergency fuel stock program considered; and increasing the accountability of ISO New England to the states and by extension their ratepayer households and businesses.

ISO New England spokesperson Matt Kakley indicated the Holyoke, Mass.-based nonprofit will “engage with the states and our stakeholders” on the governors’ proposal, in an email response to a query. He did not elaborate on any immediate opportunities or challenges inherent in the governors’ proposal.

“Maintaining reliable, competitively-priced electricity through the clean energy transition will require broad collaboration,” Kakley stated. “The common vision of the New England governors will play an important role in the discussions currently underway on the future of the grid.”

Renewable revolution
ISO New England launched operations in 1999, running auctions through which power plant operators bid to supply electricity, including against long-term projections for future needs that can only be met through the construction or installation of new generation capacity.

ISO New England falls under the jurisdiction of the Federal Energy Regulatory Commission rather than the states whose electricity supplies it is tasked with ensuring. That has led to pointed criticism from Dykes and Connecticut legislators that ISO New England is out of touch with the state’s push to switch to renewable sources of electricity.

Entering October, ISO New England published an updated outlook that revealed 60 percent of proposed power generators in the region’s future “queue” are wind farms, primarily offshore installations like the proposed Park City Wind project of Avangrid and Revolution Wind from Eversource. But Dykes recently criticized as unnecessary an NTE Energy plant approved already by ISO New England for eastern Connecticut, which will be fueled by natural gas if all other regulatory approvals are granted.

The six New England states participate in the Regional Greenhouse Gas Initiative that caps carbon emissions by individual power plants, while allowing them to purchase unused allowances from each other with that revenue funneled to the states to support renewable energy and conservation programs. FERC is now considering the concept of carbon pricing, which would levy a tax on power plants based on their emissions, and it also faces pressure to act on aggregated DERs from lawmakers.

ISO New England is investigating the concepts of net carbon pricing and a “forward clean energy market” that would borrow elements of the existing forward capacity market, but designed to meet individual state objectives for the percentage of renewable power they want generated while ensuring adequate electricity is in place when weather does not cooperate.

The Connecticut Public Utilities Regulatory Authority is collecting on its own initiative industry input on modernization proposals, as New York regulators open a formal review of retail energy markets for comparison, that would add up to hundreds of millions of dollars, including utility-scale batteries to store power generated by offshore wind farms and solar arrays; and “smart” meters in homes and businesses to help electricity customers better manage their power use.

The New England Power Pool serves as a central forum for plant operators, commercial users and others like the Connecticut Office of Consumer Counsel, amid Massachusetts solar demand charge debates that affect distributed generation policy, with NEPOOL’s chair stating Thursday morning the group was still reviewing the governors’ announcement.

“NEPOOL has been engaged this year in meetings ... exploring the transition to a future grid in New England and potential pathways forward to support that transition,” stated Nancy Chafetz, chair of NEPOOL, in an email.

Connecticut’s issues with ISO New England boiled over this summer on the heels of a power-purchase agreement between Millstone owner Dominion and transmission grid operators Eversource and United Illuminating, which contributed to a sharp increase in customer bills.

A few weeks ago, Lamont signed into law a “Take Back the Grid” act that allows the Connecticut Public Utilities Regulatory Authority to factor in Eversource’s and Avangrid subsidiary United Illuminating’s past performance in maintaining electric reliability, in addition to any future needs for revenue based on needed upgrades. The law included an element for Connecticut to initiate a study of ISO New England’s role.

Eversource and Avangrid have voiced support for the switch to “performance-based” regulation in Connecticut. Eversource spokesperson Mitch Gross on Thursday cited the company’s view that any changes to the operation of New England’s wholesale power markets should occur within the existing ISO New England structure.

“We also recommend any examination of potential alternatives includes a thorough evaluation that ensures unfair costs would not be imposed on customers,” Gross stated in an email.

In a statement forwarded by Avangrid spokesperson Ed Crowder, the United Illuminating parent indicated it intends to have “a voice in this process” with the goal of continued grid reliability amid increased adoption of clean energy sources.

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BC Hydro Asset Management Audit confirms disciplined oversight of dams, generators, power lines, substations, and transformers, with robust lifecycle planning, reliability metrics, and capital investment sustaining aging infrastructure and near full-capacity performance.

Key Points

Audit confirming BC Hydro's asset governance and lifecycle planning, ensuring safe, reliable grid infrastructure.

✅ $25B in assets; many facilities operating near full capacity.

✅ 80% of assets are dams, generators, lines, poles, substations, transformers.

✅ $2.5B invested in renewal, repair, and replacement in fiscal 2018.

A report by B.C.’s auditor-general says B.C. Hydro is doing a good job managing the province’s dams, generating stations and power lines, including storm response during severe weather events.

Carol Bellringer says in the audit that B.C. Hydro’s assets are valued at more than $25 billion and even though some generating facilities are more than 85 years old they continue to operate near full-capacity and can accommodate holiday demand peaks when needed.

The report says about 80 per cent of Hydro’s assets are dams, generators, power lines, poles, substations and transformers that are used to provide electrical service to B.C., where residential electricity use shifted during the pandemic.

The audit says Hydro invested almost $2.5 billion to renew, repair or replace the assets it manages during the last fiscal year, ending March 31, 2018, and, in a broader context, bill relief has been offered to only part of the province.

Bellringer’s audit doesn’t examine the $10.7 billion Site C dam project, which is currently under construction in northeast B.C. and not slated for completion until 2024.

She says the audit examined whether B.C. Hydro has the information, practices, processes and systems needed to support good asset management, at a time when other utilities are dealing with pandemic impacts on operations.

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Adams Nielson Solar Array, a 28 MW DC utility-scale project in Lind, WA, spans 200 acres with 81,700 panels, powering about 4,000 homes, supporting Avista’s Solar Select program and renewable energy, sustainability, and carbon reduction.

Key Points

Adams Nielson Solar Array is a 28 MW DC facility in Lind, WA, powering ~4,000 homes via Avista’s Solar Select.

✅ 81,700 panels across 200 acres in Eastern Washington

✅ Offsets emissions equal to removing 7,300 cars annually

✅ Collaboration by Avista, Strata Solar, WUTC, WSU Energy

Official commissioning of the Adams Nielson solar array located in Lind, WA occurred today. The 28 Megawatt DC array is comprised of 81,700 panels that span 200 acres and generates enough electricity to supply the equivalent of approximately 4,000 homes annually, similar to a new co-op solar project serving South Metro members.

“Avista’s interest in the development of Solar Select, a voluntary commercial solar program reflecting broader corporate adoption such as a corporate solar power plant commissioned by Arvato, is consistent with the Company’s ongoing commitment to provide customers with renewable energy choices at reasonable cost,” said Dennis Vermillion, president, Avista Corporation. “In recent years, an increasing number of Avista customers have expressed their expectations and challenges in acquiring renewable energy. Avista is pleased to lead this effort and develop renewable energy products that meet our customers’ needs today and into the future.” This interest is being generated by a mix of local and national customers across a variety of industries, including Huckleberry’s, Gonzaga University, Community Colleges of Spokane, Hotstart, Central Pre-Mix Concrete, a CRH Co., independently owned McDonald's franchise locations, Spokane City, Main Market and Community Building and VA Medical Center.

Jim Simon, director of sustainability at Gonzaga University said, “The Solar Select program helps Gonzaga University move even closer to achieving its goal of climate neutrality by 2050 by continuing to prioritize renewables in our energy portfolio, as other communities add projects like a municipal solar project to boost local supply. We are grateful for Avista’s leadership in this project and look forward to other opportunities to reduce our greenhouse gas emissions.”

Spokane Mayor David Condon said, “The City of Spokane is pleased to partner with Avista through the Solar Select Program, as we continue to seek out opportunities that are both environmentally and financially responsible. The City already is a net producer of energy, generating more clean, green energy than our use of electricity, natural gas, and fuel, a milestone also seen with North Carolina's first wind farm now fully operational. We are excited to add even more clean energy to power City Hall.”

The Solar Select program created a cost-effective structure to bring solar energy to large business customers in Eastern Washington, allowing them to advance their desired sustainability goals and benefiting from industry service innovations led by companies like Omnidian expanding their global reach. The array is projected to deliver the environmental benefit equivalent of more than 7,300 cars removed from the road each year. This renewable energy program was made possible through a collaboration of Avista, Strata Solar, the Washington Utilities and Transportation Commission, and the WSU Energy Program. 

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Tesla Energy Ventures Texas enters the deregulated market as a retail electricity provider, leveraging ERCOT, battery storage, solar, and grid software to enable virtual power plants and customer energy trading with Powerwall and Megapack assets.

Key Points

Tesla Energy Ventures Texas is Tesla's retail power unit selling grid and battery energy and enabling solar exports.

✅ ERCOT retail provider; sells grid and battery-stored power

✅ Uses Powerwall/Megapack; supports virtual power plants

✅ Targets Tesla owners; enables solar export and trading

Last week, Tesla Energy Ventures, a new subsidiary of electric car maker Tesla Inc. (TSLA), filed an application to become a retail electricity provider in the state of Texas. According to reports, the company plans to sell electricity drawn from the grid to customers and from its battery storage products. Its grid transaction software may also enable customers for its solar panels to sell excess electricity back to the smart grid in Texas.1

For those who have been following Tesla's fortunes in the electric car industry, the Palo Alto, California-based company's filing may seem baffling. But the move dovetails with Tesla's overall ambitions for its renewable energy business, as utilities face federal scrutiny of climate goals and electricity rates.

Why Does Tesla Want to Become an Electricity Provider?
The simple answer to that question is that Tesla already manufactures devices that produce and store power. Examples of such devices are its electric cars, which come equipped with lithium ion batteries, and its suite of battery storage products for homes and enterprises. Selling power generated from these devices to consumers or to the grid is a logical next step.

Tesla's move will benefit its operations. The filing states that it plans to build a massive battery storage plant near its manufacturing facility in Austin. The plant will provide the company with a ready and cheap source of power to make its cars.

Tesla's filing should also be analyzed in the context of the Texas grid. The state's electricity market is fully deregulated, unlike regions debating grid privatization approaches, and generated about a quarter of its overall power from wind and solar in 2020.2 The Biden administration's aggressive push toward clean energy is only expected to increase that share.

After a February fiasco in the state grid resulted in a shutdown of renewable energy sources and skyrocketing natural gas prices, Texas committed to boosting the role of battery storage in its grid. The Electricity Reliability Council of Texas (ERCOT), the state's grid operator, has said it plans to install 3,008 MW of battery storage by the end of 2022, a steep increase from the 225 MW generated at the end of 2020.3 ERCOT's proposed increase in installation represents a massive market for Tesla's battery unit.

Tesla already has considerable experience in this arena. It has built battery storage plants in California and Australia and is building a massive battery storage unit in Houston, according to a June Bloomberg report.4 The unit is expected to service wholesale power producers. Besides this, the company plans to "drum up" business among existing customers for its batteries through an app and a website that will allow them to buy and sell power among themselves, a model also being explored by Octopus Energy in international talks.

Tesla Energy Ventures: A Future Profit Center?
Tesla's foray into becoming a retail electricity provider could boost the top line for its energy services business, even as issues like power theft in India highlight retail market challenges. In its last reported quarter, the company stated that its energy generation and storage business brought in $810 million in revenues.

Analysts have forecast a positive future for its battery storage business. Alex Potter from research firm Piper Sandler wrote last year that battery storage could bring in more than $200 billion per year in revenue and grow up to a third of the company's overall business.5

Immediately after the news was released, Morningstar analyst Travis Miller wrote that Tesla does not represent an immediate threat to other major players in Texas's retail market, where providers face strict notice obligations illustrated when NT Power was penalized for delayed disconnection notices, such as NRG Energy, Inc. (NRG) and Vistra Corp. (VST). According to him, the company will initially target its own customers to "complement" its offerings in electric cars, battery, charging, and solar panels.6

Further down the line, however, Tesla's brand name and resources may work to its advantage. "Tesla's brand name recognition gives it an advantage in a hypercompetitive market," Miller wrote, adding that the car company's entry confirmed the firm's view that consumer technology or telecom companies will try to enter retail energy markets, where policy shifts like Ontario rate reductions can shape customer expectations.

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AIDAsol shore power Rostock-Warnemfcnde delivers cold ironing for cruise ships, up to 20 MVA at berths P7 and P8, cutting port emissions during berthing and advancing AIDA's green cruising strategy across European ports.

Key Points

Rostock-Warnemfcnde shore power supplies two cruise ships up to 20 MVA, enabling cold ironing and cutting emissions.

✅ Up to 20 MVA; powers two cruise ships at berths P7 and P8

✅ Enables cold ironing for AIDA fleet to reduce berth emissions

✅ Part of AIDA green cruising with fuel cells and batteries

In a ceremony held in Rostock-Warnemünde yesterday during Germany’s 12th National Maritime Conference, the 2,174-passenger cruise ship AIDAsol inaugurated Europe’s largest shore power plants for ships.

The power plant has been established under a joint agreement between AIDA Cruises, a unit of Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the state government of Mecklenburg-Western Pomerania, the city of Rostock and the Port of Rostock.

“With our green cruising strategy, we have been investing in a sustainable cruise market for many years,” said AIDA Cruises President Felix Eichhorn. “The shore power plant in Rostock-Warnemünde is another important step — after the facility in Hamburg — on our way to an emission-neutral cruise that we want to achieve with our fleet. I would like to thank the state government of Mecklenburg-Western Pomerania and all partners involved for the good and trusting cooperation. Together, we are sending out an important signal, not just in Germany, but throughout Europe.”

CAN POWER TWO CRUISE SHIPS AT A TIME
The shore power plant, which was completed in summer 2020, is currently the largest in Europe and aligns with port electrification efforts such as the all-electric berth at London Gateway in the UK. With an output of up to 20 megavolt amperes (MVA), two cruise ships can be supplied with electricity at the same time at berths P7 and P8 in Warnemünde.

In regular passenger operation AIDAsol needs up to 4.5 megawatts per hour (MWh) of electricity.

The use of shore power to supply ships with energy is a decisive step in AIDA Cruises’ plans to reduce local emissions to zero during berthing, complementing recent progress with electric ships on the B.C. coast, as a cruise ship typically stays in port around 40% of its operating time.

As early as 2004, when the order for the construction of AIDAdiva was placed, and for all other ships put into service in subsequent years, the company has considered the use of shore power as an option for environmentally friendly ship operation.

Since 2017, AIDA Cruises has been using Europe’s first shore power plant in Hamburg-Altona, where AIDAsol is in regular operation, while operators like BC Ferries add hybrid ferries to expand low-emission service in Canada. Currently, 10 ships in the AIDA fleet can either use shore power where available or are technically prepared for it.

The aim is to convert all ships built from 2000 onwards, supporting future solutions like offshore charging with wind power.

With AIDA Cruises starting a cruise season from Kiel, Germany, on May 22, AIDAsol will also be the first cruise ship to complete the final tests on a newly built shore power plant there, as innovations such as Berlin’s electric flying ferry highlight the broader shift toward electrified waterways. Construction of that plant is the result of a joint initiative by the state government of Schleswig-Holstein, the city and the port of Kiel and AIDA Cruises. AIDAsol is scheduled to arrive in Kiel on the afternoon of May 13.

As part of its green cruising strategy, AIDA Cruises has been investing in a sustainable cruise operation for many years, paralleling urban shifts toward zero-emission bus fleets in Berlin. Other steps on the path to the zero emission ship of the future are already in preparation. This year, AIDAnova will receive the first fuel cell to be used on an ocean-going cruise ship. In 2022, the largest battery storage system to date in cruise shipping will go into operation on board an AIDA ship, similar to advances in battery-electric ferries in the U.S. In addition, the company is already addressing the question of how renewable fuels can be used on board cruise ships in the future.

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World Bank Financing for India's Low-Carbon Transition accelerates clean energy deployment, renewable energy capacity, and energy efficiency, channeling climate finance into solar, wind, grid upgrades, and green jobs for sustainable development and climate resilience.

Key Points

$1.5B World Bank support to scale renewables, boost energy efficiency, and drive India's low-carbon growth.

✅ Funds solar, wind, and grid modernization projects

✅ Backs industrial and building energy-efficiency upgrades

✅ Catalyzes green jobs, innovation, and climate resilience

In a significant move towards bolstering India's efforts towards a low-carbon future, the World Bank has approved an additional $1.5 billion in financing. This article explores how this funding aims to support India's transition to cleaner energy sources, informed by global moves toward clean and universal electricity standards and market access, the projects it will fund, and the broader implications for sustainable development.

Commitment to Low-Carbon Transition

India, as one of the world's largest economies, faces substantial challenges in balancing economic growth with environmental sustainability. The country has committed to reducing its carbon footprint and enhancing energy efficiency through various initiatives and partnerships. The World Bank's financing represents a crucial step towards achieving these goals within the context of the global energy transition now underway, providing essential resources to accelerate India's transition towards a low-carbon economy.

Projects Supported by World Bank Funding

The $1.5 billion financing package will support several key projects aimed at advancing India's renewable energy sector and promoting sustainable development practices. These projects may include the expansion of solar and wind energy capacity, enhancing energy efficiency in industries and buildings, improving waste management systems, and fostering innovation in clean technologies.

Impact on Renewable Energy Sector

India's renewable energy sector stands to benefit significantly from the World Bank's financial support. With investments in solar and wind power projects, and broader shifts toward carbon-free electricity across utilities, the country can increase its renewable energy capacity, reduce dependency on fossil fuels, and mitigate greenhouse gas emissions. This expansion not only enhances energy security but also creates opportunities for job creation and economic growth in the clean energy sector.

Enhancing Energy Efficiency

In addition to renewable energy projects, the financing will likely focus on enhancing energy efficiency across various sectors. Improving energy efficiency in industries, transportation, and residential buildings is critical to reducing overall energy consumption, and analyses of decarbonizing Canada's electricity grid highlight how efficiency supports lower carbon emissions and progress toward sustainable development goals. The World Bank's support in this area can facilitate technological advancements and policy reforms that promote energy conservation practices.

Promoting Sustainable Development

The World Bank's financing is aligned with India's broader goals of promoting sustainable development and addressing climate change impacts. By investing in clean energy infrastructure and promoting environmentally sound practices, and amid momentum from the U.S. climate deal that shapes investment expectations, the funding contributes to enhancing resilience to climate risks, improving air quality, and fostering inclusive economic growth that benefits all segments of society.

Collaboration and Partnership

The approval of $1.5 billion in financing underscores the importance of international collaboration and partnership in advancing global climate goals, drawing lessons from China's path to carbon neutrality where relevant. The World Bank's engagement with India demonstrates a commitment to supporting developing countries in their efforts to transition towards sustainable development pathways and build resilience against climate change impacts.

Challenges and Opportunities

Despite the positive impact of the World Bank's financing, India faces challenges such as regulatory barriers, funding constraints, and technological limitations in scaling up renewable energy and energy efficiency initiatives, as well as evolving investor sentiment amid U.S. oil policy shifts that affect energy strategy. Addressing these challenges requires coordinated efforts from government agencies, private sector stakeholders, and international partners to overcome barriers and maximize the impact of investments in sustainable development.

Conclusion

The World Bank's approval of $1.5 billion in financing to support India's low-carbon transition marks a significant milestone in global efforts to combat climate change and promote sustainable development. By investing in renewable energy, enhancing energy efficiency, and fostering innovation, the funding contributes to building a cleaner, more resilient future for India and sets a precedent for international cooperation in addressing pressing environmental challenges worldwide.

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