Fisker Automotive Inc.'s long-anticipated plug-in hybrid will run on Canadian power.
The Irvine automaker said it would buy the batteries for its $87,900 luxury sedan, the Karma, from Advanced Lithium Power Inc., a Vancouver concern that also supplies batteries to the U.S. military. In addition, Fisker spokesman Russell Datz said the company would make a "sizable" cash investment in Advanced Lithium Power, also known as ALP.
Exact terms were not disclosed, but Datz said Fisker would get two seats on ALP's board along with the ownership stake.
Fisker said the first production models would be finished by year-end but customers would not receive deliveries until spring 2010. The company expects to build a network of 95 dealers in the U.S. and Europe by that time. Fisker has raised roughly $100 million in venture capital, including $3 million announced this month.
The battery is the most important, and costly, component in vehicles that run partially or entirely on electricity, so sourcing it is a vital task.
In December, General Motors Corp. said that after a yearlong competition, it had selected South Korean firm LG Chem to supply the lithium-ion batteries for its Chevrolet Volt plug-in hybrid, due in late 2010.
The four-door Karma will use a 22.6-kilowatt-hour lithium-ion battery, with cells produced in Canada and assembled in Taiwan. Fisker declined to disclose the cost of the battery, but by comparison, the 56-kwh battery in the all-electric Tesla Roadster costs about $36,000.
As a plug-in hybrid, the Karma uses only electric motors to power the wheels, but it carries a 2.0-liter turbocharged, direct-injected engine made by GM that serves as a generator to charge the battery and extend range.
According to Chief Executive Henrik Fisker, the Karma will have a range of 50 miles on battery power and 250 additional miles with the generator running. "We realized you need a battery developed specifically for automotive use," he said. "This battery has been tested for a long time. It's been in our test vehicles for eight months."
The Karma will also be available in two fancier versions that raise the price as high as $104,000. Fisker also plans a two-door convertible and a lower-cost, higher-volume sedan in the future.
Fisker said it had collected 1,300 deposits on the car of between $1,000 and $5,000, and it hoped to produce 7,500 Karmas in its first full year of production. Eventually, the company hopes to produce 15,000 a year.
Air Humidity Energy Harvesting converts thin air into clean electricity using air-gen devices with nanopores, delivering continuous renewable energy from ambient moisture, as demonstrated by UMass Amherst researchers in Advanced Materials.
Key Points
A method using nanoporous air-gen devices to harvest continuous clean electricity from ambient atmospheric moisture.
✅ Nanopores drive charge separation from ambient water molecules
✅ Works across materials: silicon, wood, bacterial films
✅ Predictable, continuous power unlike intermittent solar or wind
Sure, we all complain about the humidity on a sweltering summer day. But it turns out that same humidity could be a source of clean, pollution-free energy, aligning with efforts toward cheap, abundant electricity worldwide, a new study shows.
"Air humidity is a vast, sustainable reservoir of energy that, unlike wind and solar power resources, is continuously available," said the study, which was published recently in the journal Advanced Materials.
While humidity harvesting promises constant output, advances like a new fuel cell could help fix renewable energy storage challenges, researchers suggest.
“This is very exciting,” said Xiaomeng Liu, a graduate student at the University of Massachusetts-Amherst, and the paper’s lead author. “We are opening up a wide door for harvesting clean electricity from thin air.”
In fact, researchers say, nearly any material can be turned into a device that continuously harvests electricity from humidity in the air, a concept echoed by raindrop electricity demonstrations in other contexts.
“The air contains an enormous amount of electricity,” said Jun Yao, assistant professor of electrical and computer engineering at the University of Massachusetts-Amherst and the paper’s senior author. “Think of a cloud, which is nothing more than a mass of water droplets. Each of those droplets contains a charge, and when conditions are right, the cloud can produce a lightning bolt – but we don’t know how to reliably capture electricity from lightning.
"What we’ve done is to create a human-built, small-scale cloud that produces electricity for us predictably and continuously so that we can harvest it.”
The heart of the human-made cloud depends on what Yao and his colleagues refer to as an air-powered generator, or the "air-gen" effect, which relates to other atmospheric power concepts like night-sky electricity studies in the field.
In broader renewable systems, flexible resources such as West African hydropower can support variable wind and solar output, complementing atmospheric harvesting concepts as they mature.
The study builds on research from a study published in 2020. That year, scientists said this new technology "could have significant implications for the future of renewable energy, climate change and in the future of medicine." That study indicated that energy was able to be pulled from humidity by material that came from bacteria; related bio-inspired fuel cell design research explores better electricity generation, the new study finds that almost any material, such as silicon or wood, also could be used.
The device mentioned in the study is the size of a fingernail and thinner than a single hair. It is dotted with tiny holes known as nanopores, it was reported. "The holes have a diameter smaller than 100 nanometers, or less than a thousandth of the width of a strand of human hair."
US Summer Energy Bills Crisis is driven by record heatwaves, soaring electricity prices, AC cooling demand, energy poverty risks, and LIHEAP relief, straining low-income households, vulnerable seniors, and budgets amid volatile utilities and peak demand.
Key Points
Rising household energy costs from extreme heat, higher electricity prices, and AC demand, straining vulnerable families.
✅ Record heatwaves drive peak electricity and cooling loads
✅ Tiered rates and volatile markets inflate utility bills
✅ LIHEAP aid and cooling centers offer short-term relief
As the sweltering heat of summer continues to grip much of the United States, American households are grappling with a staggering rise in energy bills. The combination of record-breaking temperatures and rising electricity prices is placing an unprecedented financial strain on families, raising concerns about the long-term impact on household budgets and overall well-being.
Record Heat and Energy Consumption
This summer has witnessed some of the hottest temperatures on record across the country. With many regions experiencing prolonged heatwaves, the demand for air conditioning and cooling systems has surged amid unprecedented electricity demand across parts of the U.S. The increased use of these energy-intensive appliances has led to a sharp rise in electricity consumption, which, combined with elevated energy prices, has pushed household energy bills to new heights.
The situation is particularly dire for households that are already struggling financially. Many families are facing energy bills that are not only higher than usual but are reaching levels that are unsustainable, underscoring electricity struggles for thousands of families across the country. This has prompted concerns about the potential for energy poverty, where individuals are forced to make difficult choices between paying for essential services and covering other necessary expenses.
Impact on Low-Income and Vulnerable Households
Low-income households and vulnerable populations are disproportionately affected by these soaring energy costs. For many, the financial burden of high energy bills is compounded by energy insecurity during the pandemic and other economic pressures, such as rising food prices and stagnant wages. The strain of paying for electricity during extreme heat can lead to tough decisions, including cutting back on other essential needs like healthcare or education.
Moreover, the heat itself poses a serious health risk, particularly for the elderly, children, and individuals with pre-existing health conditions. High temperatures can exacerbate conditions such as cardiovascular and respiratory illnesses, making the need for reliable cooling even more critical. For those struggling to afford adequate cooling, the risk of heat-related illnesses and fatalities increases significantly.
Utilities and Energy Pricing
The sharp rise in energy bills can be attributed to several factors, including higher costs of electricity production and distribution. The ongoing transition to cleaner energy sources, while necessary for long-term environmental sustainability, has introduced short-term volatility in energy markets. Additionally, power-company supply chain crises and increased demand during peak summer months have contributed to higher prices.
Utilities are often criticized for their pricing structures, which can be complex and opaque. Some regions, including areas where California electricity bills soar under scrutiny, use tiered pricing models that charge higher rates as energy consumption increases. This can disproportionately impact households that need to use more energy during extreme heat, further exacerbating financial strain.
Government and Community Response
In response to the crisis, various government and community initiatives are being rolled out to provide relief. Federal and state programs aimed at assisting low-income households with energy costs are being expanded. These programs, such as the Low-Income Home Energy Assistance Program (LIHEAP), offer financial assistance to help with utility bills, but demand often outstrips available resources.
Local community organizations are also stepping in to offer support. Initiatives include distributing fans and portable air conditioners, providing temporary cooling centers, and offering financial assistance to help cover energy costs. These efforts are crucial in helping to mitigate the immediate impact of high energy bills on vulnerable households.
Long-Term Solutions and Sustainability
The current crisis highlights the need for long-term solutions to address both the causes and consequences of high energy costs. Investing in energy efficiency and renewable energy technologies can help reduce the overall demand for electricity and lower long-term costs. Improvements in building insulation, the adoption of energy-efficient appliances, and advancements in smart grid technologies to prevent summer power outages are all essential components of a sustainable energy future.
Furthermore, addressing income inequality and supporting economic stability are critical to ensuring that all households can manage their energy needs without facing financial hardship. Policymakers will need to consider a range of strategies, including financial support programs, regulatory reforms, and infrastructure investments, to create a more equitable and resilient energy system.
Conclusion
As American households endure the double burden of extreme summer heat and skyrocketing energy bills, the need for immediate relief and long-term solutions has never been clearer. The current crisis serves as a reminder of the broader challenges facing the nation’s energy system and the importance of addressing both short-term needs and long-term sustainability. By investing in efficient technologies, supporting vulnerable populations, and developing resilient infrastructure, the U.S. can work towards a future where energy costs are manageable, and everyone has access to the resources they need to stay safe and comfortable.
Ontario Ultra-Low Overnight Electricity Rates cut costs for shift workers and EV charging, with time-of-use pricing, off-peak savings, on-peak premiums, kilowatt-hour details, and Ontario Energy Board guidance for homes and businesses across participating utilities.
✅ Available provincewide by Nov 1 via local utilities
The Ontario government is introducing a new ultra-low overnight price plan that can benefit shift workers and individuals who charge electric vehicles while they sleep.
Speaking at a news conference on Tuesday, Energy Minister Todd Smith said the new plan could save customers up to $90 a year.
“Consumer preferences are still changing and our government realized there was more we could do, especially as the province continues to have an excess supply of clean electricity at night when province-wide electricity demand is lower,” Smith said, noting a trend underscored by Ottawa's demand decline during the pandemic.
The new rate, which will be available as an opt-in option as of May 1, will be 2.4 cents per kilowatt-hour from 11 p.m. to 7 a.m. Officials say this is 67 per cent lower than the current off-peak rate, which saw a off-peak relief extension during the pandemic.
However, customers should be aware that this plan will mean a higher on-peak rate, as unlike earlier calls to cut peak rates, Hydro One peak charges remained unchanged for self-isolating customers.
The new plan will be offered by Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution, and Sioux Lookout Hydro by May. Officials have said this will be expanded to all local distribution companies by Nov. 1.
With the new addition of the “ultra low” pricing, there are now three different electricity plans that Ontarians can choose from. Here is what you have to know about the new hydro options:
TIME OF USE: Most residential customers, businesses and farms are eligible for these rates, similar to BC Hydro time-of-use proposals in another province, which are divided into off-peak, mid-peak and on-peak hours.
This is what customers will pay as of May 1 according to the Ontario Energy Board, following earlier COVID-19 electricity relief measures that temporarily adjusted rates:
Off-peak (Weekdays between 7 p.m. and 7 a.m. and on weekends/holidays): 7.4 cents per kilowatt-hour Mid-Peak (Weekdays between 7 a.m. and 11 a.m., and between 5 p.m. and 7 p.m.): 10.2 cents per kilowatt-hour On-Peak ( Weekdays 11 a.m. to 5 p.m.): 15.1 cents per kilowatt-hour
TIERED RATES This plan allows customers to get a standard rate depending on how much electricity is used. There are various thresholds per tier, and once a household exceeds that threshold, a higher price applies. Officials say this option may be beneficial for retirees who are home often during the day or those who use less electricity overall.
The tiers change depending on the season. This is what customers will pay as of May 1:
Residential households that use 600 kilowatts of electricity per month and non-residential businesses that use 750 kilowatts per month: 8.7 cents per kilowatt-hour. Residences and businesses that use more than that will pay a flat rate of 10.3 cents per kilowatt-hour
ULTRA-LOW OVERNIGHT RATES Customers can opt-in to this plan if they use most of their electricity overnight.
This is what customers will pay as of May 1:
Between 11 p.m. and 7 a.m.: 2.4 cents per kilowatt-hour
Weekends and holidays between 7 a.m. and 11 p.m.: 7.4 cents per kilowatt-hour
Mid-Peak (Weekdays between 7 a.m. and 4 p.m., and between 9 p.m. and 11 p.m.): 10.2 cents per kilowatt-hour
On-Peak (weekdays between 4 p.m. and 9 p.m.): 24 cents per kilowatt-hour
Vancouver Formula E 2022 delivers an all-electric, net-zero motorsport event in False Creek, featuring sustainability initiatives, clean mobility showcases, concerts, and tourism boosts, with major economic impact, jobs, and a climate action conference.
Key Points
A net-zero, all-electric race in False Creek, uniting EV motorsport with sustainability, concerts, and local jobs.
✅ Net-zero, all-electric FIA championship round in Canada
✅ False Creek street circuit with concerts and green mobility expo
✅ Projected $80M impact and thousands of local jobs
The City of Vancouver is hosting an ABB FIA Formula E World Championship race next year, organizers have announced, aligning with the city's EV-ready policy to accelerate adoption.
The all-electric race is being held in the city's False Creek neighbourhood over the 2022 July long weekend as green energy investments accelerate nationwide, according to promoter OSS Group Inc.
Earlier this year, Vancouver city council voted unanimously in support of a multi-day Formula E event that would include a conference on climate change and sustainability amid predicted EV-demand bottlenecks in B.C.
"Formula E is a win on so many levels, from being a net-zero event that supports sustainable transportation to being a huge boost for our hard-hit tourism sector, our residents, who can access rebates for home and workplace charging, and our local economy," Coun. Sarah Kirby-Yung said in a news release Thursday.
The promoter said the Formula E race will bring $80 million in economic value and thousands of jobs to the city, with infrastructure like new EV chargers at YVR also underway, but did not provide any details on how it came to those estimates.
More details on the events surrounding the race, including planned concerts and other EV showcases like Everything Electric, are expected to be announced in the fall.
The last time a Formula E World Championship event came to Canada was the Montreal ePrix in 2017. Montreal Mayor Valerie Plante later cancelled planned Formula E events for 2018 and 2019, citing cost overruns and sponsorship troubles.
ITER Nuclear Fusion advances tokamak magnetic confinement, heating deuterium-tritium plasma with superconducting magnets, targeting net energy gain, tritium breeding, and steam-turbine power, while complementing laser inertial confinement milestones for grid-scale electricity and 2025 startup goals.
Key Points
ITER Nuclear Fusion is a tokamak project confining D-T plasma with magnets to achieve net energy gain and clean power.
✅ Tokamak magnetic confinement with high-temp superconducting coils
✅ Deuterium-tritium fuel cycle with on-site tritium breeding
✅ Targets net energy gain and grid-scale, low-carbon electricity
It sounds like the stuff of dreams: a virtually limitless source of energy that doesn’t produce greenhouse gases or radioactive waste. That’s the promise of nuclear fusion, often described as the holy grail of clean energy by proponents, which for decades has been nothing more than a fantasy due to insurmountable technical challenges. But things are heating up in what has turned into a race to create what amounts to an artificial sun here on Earth, one that can provide power for our kettles, cars and light bulbs.
Today’s nuclear power plants create electricity through nuclear fission, in which atoms are split, with next-gen nuclear power exploring smaller, cheaper, safer designs that remain distinct from fusion. Nuclear fusion however, involves combining atomic nuclei to release energy. It’s the same reaction that’s taking place at the Sun’s core. But overcoming the natural repulsion between atomic nuclei and maintaining the right conditions for fusion to occur isn’t straightforward. And doing so in a way that produces more energy than the reaction consumes has been beyond the grasp of the finest minds in physics for decades.
But perhaps not for much longer. Some major technical challenges have been overcome in the past few years and governments around the world have been pouring money into fusion power research as part of a broader green industrial revolution under way in several regions. There are also over 20 private ventures in the UK, US, Europe, China and Australia vying to be the first to make fusion energy production a reality.
“People are saying, ‘If it really is the ultimate solution, let’s find out whether it works or not,’” says Dr Tim Luce, head of science and operation at the International Thermonuclear Experimental Reactor (ITER), being built in southeast France. ITER is the biggest throw of the fusion dice yet.
Its $22bn (£15.9bn) build cost is being met by the governments of two-thirds of the world’s population, including the EU, the US, China and Russia, at a time when Europe is losing nuclear power and needs energy, and when it’s fired up in 2025 it’ll be the world’s largest fusion reactor. If it works, ITER will transform fusion power from being the stuff of dreams into a viable energy source.
Constructing a nuclear fusion reactor ITER will be a tokamak reactor – thought to be the best hope for fusion power. Inside a tokamak, a gas, often a hydrogen isotope called deuterium, is subjected to intense heat and pressure, forcing electrons out of the atoms. This creates a plasma – a superheated, ionised gas – that has to be contained by intense magnetic fields.
The containment is vital, as no material on Earth could withstand the intense heat (100,000,000°C and above) that the plasma has to reach so that fusion can begin. It’s close to 10 times the heat at the Sun’s core, and temperatures like that are needed in a tokamak because the gravitational pressure within the Sun can’t be recreated.
When atomic nuclei do start to fuse, vast amounts of energy are released. While the experimental reactors currently in operation release that energy as heat, in a fusion reactor power plant, the heat would be used to produce steam that would drive turbines to generate electricity, even as some envision nuclear beyond electricity for industrial heat and fuels.
Tokamaks aren’t the only fusion reactors being tried. Another type of reactor uses lasers to heat and compress a hydrogen fuel to initiate fusion. In August 2021, one such device at the National Ignition Facility, at the Lawrence Livermore National Laboratory in California, generated 1.35 megajoules of energy. This record-breaking figure brings fusion power a step closer to net energy gain, but most hopes are still pinned on tokamak reactors rather than lasers.
In June 2021, China’s Experimental Advanced Superconducting Tokamak (EAST) reactor maintained a plasma for 101 seconds at 120,000,000°C. Before that, the record was 20 seconds. Ultimately, a fusion reactor would need to sustain the plasma indefinitely – or at least for eight-hour ‘pulses’ during periods of peak electricity demand.
A real game-changer for tokamaks has been the magnets used to produce the magnetic field. “We know how to make magnets that generate a very high magnetic field from copper or other kinds of metal, but you would pay a fortune for the electricity. It wouldn’t be a net energy gain from the plant,” says Luce.
One route for nuclear fusion is to use atoms of deuterium and tritium, both isotopes of hydrogen. They fuse under incredible heat and pressure, and the resulting products release energy as heat
The solution is to use high-temperature, superconducting magnets made from superconducting wire, or ‘tape’, that has no electrical resistance. These magnets can create intense magnetic fields and don’t lose energy as heat.
“High temperature superconductivity has been known about for 35 years. But the manufacturing capability to make tape in the lengths that would be required to make a reasonable fusion coil has just recently been developed,” says Luce. One of ITER’s magnets, the central solenoid, will produce a field of 13 tesla – 280,000 times Earth’s magnetic field.
The inner walls of ITER’s vacuum vessel, where the fusion will occur, will be lined with beryllium, a metal that won’t contaminate the plasma much if they touch. At the bottom is the divertor that will keep the temperature inside the reactor under control.
“The heat load on the divertor can be as large as in a rocket nozzle,” says Luce. “Rocket nozzles work because you can get into orbit within minutes and in space it’s really cold.” In a fusion reactor, a divertor would need to withstand this heat indefinitely and at ITER they’ll be testing one made out of tungsten.
Meanwhile, in the US, the National Spherical Torus Experiment – Upgrade (NSTX-U) fusion reactor will be fired up in the autumn of 2022, while efforts in advanced fission such as a mini-reactor design are also progressing. One of its priorities will be to see whether lining the reactor with lithium helps to keep the plasma stable.
Choosing a fuel Instead of just using deuterium as the fusion fuel, ITER will use deuterium mixed with tritium, another hydrogen isotope. The deuterium-tritium blend offers the best chance of getting significantly more power out than is put in. Proponents of fusion power say one reason the technology is safe is that the fuel needs to be constantly fed into the reactor to keep fusion happening, making a runaway reaction impossible.
Deuterium can be extracted from seawater, so there’s a virtually limitless supply of it. But only 20kg of tritium are thought to exist worldwide, so fusion power plants will have to produce it (ITER will develop technology to ‘breed’ tritium). While some radioactive waste will be produced in a fusion plant, it’ll have a lifetime of around 100 years, rather than the thousands of years from fission.
At the time of writing in September, researchers at the Joint European Torus (JET) fusion reactor in Oxfordshire were due to start their deuterium-tritium fusion reactions. “JET will help ITER prepare a choice of machine parameters to optimise the fusion power,” says Dr Joelle Mailloux, one of the scientific programme leaders at JET. These parameters will include finding the best combination of deuterium and tritium, and establishing how the current is increased in the magnets before fusion starts.
The groundwork laid down at JET should accelerate ITER’s efforts to accomplish net energy gain. ITER will produce ‘first plasma’ in December 2025 and be cranked up to full power over the following decade. Its plasma temperature will reach 150,000,000°C and its target is to produce 500 megawatts of fusion power for every 50 megawatts of input heating power.
“If ITER is successful, it’ll eliminate most, if not all, doubts about the science and liberate money for technology development,” says Luce. That technology development will be demonstration fusion power plants that actually produce electricity, where advanced reactors can build on decades of expertise. “ITER is opening the door and saying, yeah, this works – the science is there.”
PJM Capacity Auction Price Drop signals PJM Interconnection capacity market shifts, with $50/MW-day clearing, higher renewables and nuclear participation, declining coal, natural gas pressure, and zone impacts in ComEd and EMAAC, amid 21% reserve margins.
Key Points
A decline to $50 per MW-day in PJM capacity prices, shifting resource mix, zonal rates, and reserve margins.
✅ Clearing price fell to $50/MW-day from $140 in 2018
✅ Renewables and nuclear up; coal units down across PJM
Power-plant owners serving the biggest U.S. grid will be paid 64% less next year for being on standby to keep the lights on from New Jersey to Illinois.
Suppliers to PJM Interconnection LLC’s grid, which serves more than 65 million people, will get $50 a megawatt-day to provide capacity for the the year starting June 2022, according to the results of an auction released Wednesday. That’s down sharply from $140 in the previous auction, held in 2018. Analysts had expected the price would fall to about $85.
“Renewables, nuclear and new natural gas generators saw the greatest increases in cleared capacity, while coal units saw the largest decrease,” PJM said in a statement.
The PJM auction is the single most important event for power generators across the eastern U.S., including Calpine Corp., NRG Energy Inc. and Exelon Corp., because it dictates a big chunk of their future revenue. It also plays a pivotal role in shaping the region’s electricity mix, determining how much the region is willing to stick with coal and natural gas plants or replace them with wind and solar even as the aging grid complicates progress nationwide.
The results showed that the capacity price for the Chicago-area zone, known as ComEd, was $68.96 compared with $195.55 in the last auction. The price for the Pennsylvania and New Jersey zone, known as EMAAC, fell to $97.86 percent, from $165.73. All told, 144,477 megawatts cleared, representing a reserve margin of 21%.
Exelon shares fell 0.4% after the results were released. Vistra fell 1.5%. NRG was unchanged.
Blackouts triggered by extreme weather in Texas and California over the last year have reignited a debate over whether other regions should institute capacity systems similar to the one used by PJM, and whether to adopt measures like emergency fuel stock programs in New England as well. The market, which pays generators to be on standby in case extra power is needed, has long been a source of controversy. While it makes the grid more reliable, the system drives up costs for consumers. In the area around Chicago, for instance, these charges total more than $1.7 billion per year, accounting for 20% of customer bills, according to the Illinois Clean Jobs Coalition.
In the 2018 auction, PJM contracted supplies that were about 22% in excess of the peak demand projection at the time. This year, the grid is projected to start summer with a reserve margin of about 26%, as COVID-19 demand shifts persist, according to the market monitor -- far higher than the 16% most engineers say is needed to prevent major outages.
“This certainly doesn’t seem fair to ratepayers,” said Ari Peskoe, director of Harvard Law School’s Electricity Law Initiative.
Fossil-Fuel Advantage Heading into the auction, analysts expected coal and gas plants to have the advantage. Nuclear reactors and renewables, they said, were poised to struggle amid coal and nuclear disruptions nationwide.
That’s because this is the first PJM auction run under a major pricing change imposed by federal regulators during the Trump administration. The new structure creates a price floor for some bidders, effectively hobbling nuclear and renewables that receive state subsidies while making it easier for fossil fuels to compete.
Those rules triggered contentious wrangling between power providers, PJM and federal regulators, delaying the auction for two years. The new system, however, may be short lived. The Biden administration is moving to overhaul the rules in time for the next auction in December.
Also See: Biden Climate Goals to Take Backseat in Biggest U.S. Power Grid
Dominion Energy Inc., one of the biggest U.S. utility owners, pulled out of the market over the rules. The Virginia-based company, which has a goal to have net-zero carbon emissions by 2050, said the new PJM format will “make renewables more expensive” than delivering clean energy through alternative markets.
Illinois, New Jersey and Maryland have also threatened to leave the capacity market unless the new price floor is eliminated, and Connecticut is leading a market overhaul in New England as well. PJM has already launched a process to do it.
PJM is already one of the most fossil-fuel intensive grids, with 60% of its electricity coming from coal and gas. Power plants that bid into the auction rely on it for the bulk of their revenue. That means plants that win contracts have an incentive to continue operating for as long as they can, even amid a supply-chain crisis this summer.
