Key Senate committee approves utility re-regulation

By Washington Post


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Legislation backed by Gov. Martin O'Malley (D) to partially re-regulate the production of electricity in Maryland is headed to the Senate floor.

The Senate Finance Committee approved the bill after several marathon work sessions. It would give the Public Service Commission authority to direct utility companies to build new power plants where and when they are needed. Those plants would be regulated, meaning the price their owners charge for electricity would be capped.

The bill, whose lead sponsor is committee Chairman Thomas Middleton (D-Charles) exempts large commercial and industrial customers, which have had success shopping for power from competitive suppliers. A third nuclear reactor that Constellation Energy hopes to build at its Calvert Cliffs plant also would not be regulated.

The move to re-regulate has been debated in Annapolis for several years, since rate caps were lifted. Customers of Baltimore Gas & Electric were hit with a 72 percent rate hike, and their bills have continued to rise. Pepco customers also are paying much more than they did under a regulated system. Competitors to the large utilities have only a tiny slice of the residential market.

High prices have been a political problem for O'Malley and lawmakers. Adding to the problem, gas and electric bills across the state skyrocketed this winter, owing to relatively cold weather, longer billing cycles and locked-in contracts for power signed by utilities when prices peaked last year.

The re-regulation bill is unlikely to effect electricity rates in the short term, since it can take years to build a power plant and any new plants are likely to produce a fraction of the state's electricity load. But politically the vote makes a statement.

The energy industry, led by Baltimore-based Constellation, has heavily lobbied lawmakers to defeat the bill. The Retail Energy Supply Association, a group of suppliers fighting to enter the residential market, issued this statement from state chair Leah Gibbons.

"RESA is very disappointed that the committeee decided to take a step backwards for Maryland electricity consumers. Re-regulation... will end choice for residential and small commercial customers."

Middleton and other supporters of the legislation argue that RESA's members have had years to enter the market.

The Senate is now taking up the legislation. Its chances for passage are better there than in the House of Delegates, where members of the Economic Matters Committee have expressed skepticism about passing it this year.

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Electricity demand set to reduce if UK workforce self-isolates

UK Energy Networks Coronavirus Contingency outlines ESO's lockdown electricity demand forecast, reduced industrial and commercial load, rising domestic use, Ofgem guidance needs, grid resilience, control rooms, mutual aid, and backup centers.

 

Key Points

A coordinated plan with ESO forecasts, safeguards, and mutual aid to keep power and gas services during a lockdown.

✅ ESO forecasts lower industrial use, higher domestic demand

✅ Control rooms protected; backup sites and cross-trained staff

✅ Mutual aid and Ofgem coordination bolster grid resilience

 

National Grid ESO is predicting a reduction in electricity demand, consistent with residential use trends observed during the pandemic, in the case of the coronavirus spread prompting a lockdown across the country.

Its analysis shows the reduction in commercial and industrial use would outweigh an upsurge in domestic demand, mirroring Ontario demand data seen as people stayed home, according to similar analyses.

The prediction was included in an update from the Energy Networks Association (ENA), in which it sought to reassure the public that contingency plans are in place, reflecting utility disaster planning across electric and gas networks, to ensure services are unaffected by the coronavirus spread.

The body, which represents the UK's electricity and gas network companies, said "robust measures" had been put in place to protect control rooms and contact centres, similar to staff lockdown protocols considered by other system operators, to maintain resilience. To provide additional resilience, engineers have been trained across multiple disciplines and backup centres exist should operations need to be moved if, for example, deep cleaning is required, the ENA said.

Networks also have industry-wide mutual aid arrangements, similar to grid response measures outlined in the U.S., for people and the equipment needed to keep gas and electricity flowing.

ENA chief executive, David Smith, said, echoing system reliability assurances from other markets: "The UK's electricity and gas network is one of the most reliable in the world and network operators are working with the authorities to ensure that their contingency plans are reviewed and delivered in accordance with the latest expert advice. We are following this advice closely and reassuring customers that energy networks are continuing to operate as normal for the public."

Utility Week spoke to a senior figure at one of the networks who reiterated the robust measures in place to keep the lights on, even as grid alerts elsewhere highlight the importance of contingency planning. However, they pleaded for more clarity from Ofgem and government on how its workers will be treated if the coronavirus spread becomes a pandemic in the UK.

 

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Turning thermal energy into electricity

Near-Field Thermophotovoltaics captures radiated energy across a nanoscale gap, using thin-film photovoltaic cells and indium gallium arsenide to boost power density and efficiency, enabling compact Army portable power from emitters via radiative heat transfer.

 

Key Points

A nanoscale TPV method capturing near-field photons for higher power density at lower emitter temperatures.

✅ Nanoscale gap boosts radiative transfer and usable photon flux

✅ Thin-film InGaAs cells recycle sub-band-gap photons via reflector

✅ Achieved ~5 kW/m2 power density with higher efficiency

 

With the addition of sensors and enhanced communication tools, providing lightweight, portable power has become even more challenging, with concepts such as power from falling snow illustrating how diverse new energy-harvesting approaches are. Army-funded research demonstrated a new approach to turning thermal energy into electricity that could provide compact and efficient power for Soldiers on future battlefields.

Hot objects radiate light in the form of photons into their surroundings. The emitted photons can be captured by a photovoltaic cell and converted to useful electric energy. This approach to energy conversion is called far-field thermophotovoltaics, or FF-TPVs, and has been under development for many years; however, it suffers from low power density and therefore requires high operating temperatures of the emitter.

The research, conducted at the University of Michigan and published in Nature Communications, demonstrates a new approach, where the separation between the emitter and the photovoltaic cell is reduced to the nanoscale, enabling much greater power output than what is possible with FF-TPVs for the same emitter temperature.

This approach, which enables capture of energy that is otherwise trapped in the near-field of the emitter is called near-field thermophotovoltaics or NF-TPV and uses custom-built photovoltaic cells and emitter designs ideal for near-field operating conditions, alongside emerging smart solar inverters that help manage conversion and delivery.

This technique exhibited a power density almost an order of magnitude higher than that for the best-reported near-field-TPV systems, while also operating at six-times higher efficiency, paving the way for future near-field-TPV applications, including remote microgrid deployments in extreme environments, according to Dr. Edgar Meyhofer, professor of mechanical engineering, University of Michigan.

"The Army uses large amounts of power during deployments and battlefield operations and must be carried by the Soldier or a weight constrained system," said Dr. Mike Waits, U.S. Army Combat Capabilities Development Command's Army Research Laboratory. "If successful, in the future near-field-TPVs could serve as more compact and higher efficiency power sources for Soldiers as these devices can function at lower operating temperatures than conventional TPVs."

The efficiency of a TPV device is characterized by how much of the total energy transfer between the emitter and the photovoltaic cell is used to excite the electron-hole pairs in the photovoltaic cell, where insights from near-light-speed conduction research help contextualize performance limits in semiconductors. While increasing the temperature of the emitter increases the number of photons above the band-gap of the cell, the number of sub band-gap photons that can heat up the photovoltaic cell need to be minimized.

"This was achieved by fabricating thin-film TPV cells with ultra-flat surfaces, and with a metal back reflector," said Dr. Stephen Forrest, professor of electrical and computer engineering, University of Michigan. "The photons above the band-gap of the cell are efficiently absorbed in the micron-thick semiconductor, while those below the band-gap are reflected back to the silicon emitter and recycled."

The team grew thin-film indium gallium arsenide photovoltaic cells on thick semiconductor substrates, and then peeled off the very thin semiconductor active region of the cell and transferred it to a silicon substrate, informing potential interfaces with home battery systems for distributed use.

All these innovations in device design and experimental approach resulted in a novel near-field TPV system that could complement distributed resources in virtual power plants for resilient operations.

"The team has achieved a record ~5 kW/m2 power output, which is an order of magnitude larger than systems previously reported in the literature," said Dr. Pramod Reddy, professor of mechanical engineering, University of Michigan.

Researchers also performed state-of-the-art theoretical calculations to estimate the performance of the photovoltaic cell at each temperature and gap size, informing hybrid designs with backup fuel cell solutions that extend battery life, and showed good agreement between the experiments and computational predictions.

"This current demonstration meets theoretical predictions of radiative heat transfer at the nanoscale, and directly shows the potential for developing future near-field TPV devices for Army applications in power and energy, communication and sensors," said Dr. Pani Varanasi, program manager, DEVCOM ARL that funded this work.

 

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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.

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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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Sierra Club: Governor Abbott's Demands Would Leave Texas More Polluted and Texans in the Dark

Texas Energy Policy Debate centers on ERCOT and PUC directives, fossil fuels vs renewables, grid reliability, energy efficiency, battery storage, and blackout risks, shaping Texas power market rules, conservation alerts, and capacity planning.

 

Key Points

Policy fight over ERCOT/PUC rules weighing fossil fuels vs renewables and storage to bolster Texas grid reliability.

✅ ERCOT and PUC directives under political scrutiny

✅ Fossil fuel subsidies vs renewable incentives and storage

✅ Focus on grid reliability, efficiency, and blackout prevention

 

Earlier this week, Governor Abbott released a letter to the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT), demanding electricity market reforms that Abbott falsely claims will "increase power generation capacity and to ensure the reliability of the Texas power grid."

Unfortunately, Abbott's letter promotes polluting, unreliable fossil fuels, attacks safer clean energy options, and ignores solutions that would actually benefit everyday Texans.

"Governor Abbott, in a blatant effort to politicize Texans' energy security, wants to double down on fossil fuels, even though they were the single largest point of failure during both February's blackouts and June's energy conservation alerts," said Cyrus Reed, Interim Director & Conservation Director of the Lone Star Chapter of the Sierra Club.

"Many of these so-called solutions were considered and rejected most recently by the Texas Legislature. Texas must focus on expanding clean and reliable renewable energy, energy efficiency, and storage capacity, as voters consider funding to modernize generation in the months ahead.

"We can little afford to repeat the same mistakes that have failed to provide enough electricity where it is needed most and cost Texans billions of dollars. Instead of advocating for evidence-based solutions, Abbott wants to be a culture warrior for coal and gas, even as he touts grid readiness amid election season, even when it results in blackouts across Texas."

 

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Ukraine fights to keep the lights on as Russia hammers power plants

Ukraine Power Grid Attacks disrupt critical infrastructure as missiles and drones strike power plants, substations, and lines, causing blackouts. Emergency repairs, international aid, generators, and renewables bolster resilience and keep hospitals and water running.

 

Key Points

Russian strikes on Ukraine's power infrastructure cause blackouts; repairs and aid sustain hospitals and water.

✅ Missile and drone strikes target plants, substations, and lines.

✅ Crews restore power under fire; air defenses protect sites.

✅ Allies supply equipment, generators, and grid repair expertise.

 

Ukraine is facing an ongoing battle to maintain its electrical grid in the wake of relentless Russian attacks targeting power plants and energy infrastructure. These attacks, which have intensified in the last year, are part of Russia's broader strategy to weaken Ukraine's ability to function amid the ongoing war. Power plants, substations, and energy lines have become prime targets, with Russian forces using missiles and drones to destroy critical infrastructure, as western Ukraine power outages have shown, leaving millions of Ukrainians without electricity and heating during harsh winters.

The Ukrainian government and energy companies are working tirelessly to repair the damage and prevent total blackouts, while also trying to ensure that civilians have access to vital services like hospitals and water supplies. Ukraine has received support from international allies in the form of technical assistance and equipment to help strengthen its power grid, and electricity reserve updates suggest outages can be avoided if no new strikes occur. However, the ongoing nature of the attacks and the complexity of repairing such extensive damage make the situation extraordinarily difficult.

Despite these challenges, Ukraine's resilience is evident, even as winter pressures on the battlefront intensify operations. Energy workers are often working under dangerous conditions, risking their lives to restore power and prevent further devastation. The Ukrainian government has prioritized the protection of energy infrastructure, with military forces being deployed to safeguard workers and critical assets.

Meanwhile, the international community continues to support Ukraine through financial and technical aid, though some U.S. support programs have ended recently, as well as providing temporary power solutions, like generators, to keep essential services running. Some countries have even sent specialized equipment to help repair damaged power lines and energy plants more quickly.

The humanitarian consequences of these attacks are severe, as access to electricity means more than just light—it's crucial for heating, cooking, and powering medical equipment. With winter temperatures often dropping below freezing, plans to keep the lights on are vital to protect vulnerable communities, and the lack of reliable energy has put many lives at risk.

In response to the ongoing crisis, Ukraine has also focused on enhancing its energy independence, seeking alternatives to Russian-supplied energy. This includes exploring renewable energy sources, such as solar and wind power, and new energy solutions adopted by communities to overcome winter blackouts, which could help reduce reliance on traditional energy grids and provide more resilient options in the future.

The battle for energy infrastructure in Ukraine illustrates the broader struggle of the country to maintain its sovereignty and independence in the face of external aggression. The destruction of power plants is not only a military tactic but also a psychological one—meant to instill fear and disrupt daily life. However, the unwavering spirit of the Ukrainian people, alongside international support, including Ukraine's aid to Spain during blackouts as one example, continues to ensure that the fight to "keep the lights on" is far from over.

As Ukraine works tirelessly to repair its energy grid, it also faces the challenge of preparing for the long-term impact of these attacks. The ongoing war has highlighted the importance of securing energy infrastructure in modern conflicts, and the world is watching as Ukraine's resilience in this area could serve as a model for other nations facing similar threats.

Ukraine’s energy struggle is far from over, but its determination to keep the lights on remains a beacon of hope and defiance in the face of ongoing adversity.

 

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Opinion: With deregulated electricity, no need to subsidize nuclear power

Pennsylvania Electricity Market Deregulation has driven competitive pricing, leveraged low-cost natural gas, and spurred private investment, jobs, and efficient power plants, while nuclear subsidies threaten wholesale market signals and long-term consumer savings.

 

Key Points

Policy that opens generation to competition, leverages cheap gas, lowers rates, and resists subsidies for nuclear plants.

✅ Competitive wholesale pricing benefits consumers statewide

✅ Gas-driven plants add efficient, flexible capacity and jobs

✅ Nuclear subsidies distort market signals and raise costs

 

For decades, the government regulation of Pennsylvania's electricity markets dictated all aspects of power generation resources in the state, thus restricting market-driven prices for consumers and hindering new power plant development and investment.

Deregulation has enabled competitive markets to drive energy prices downward, as recent grid auction payouts fell 64% indicate, which has transformed Pennsylvania from a higher-electricity-cost state to one with prices below the national average.

Recently, the economic advantage of abundant low-cost natural gas has spurred an influx of billions of dollars of private capital investment and thousands of jobs to construct environmentally responsible natural gas power generation facilities throughout the commonwealth — including our three power generation facilities in operation and one presently under construction.

Calpine is an independent power provider with a national portfolio of 80 highly efficient power plants in operation or under construction with an electric generating capacity of approximately 26,000 megawatts. Collectively, these resources can provide sufficient power for more than 30 million residential homes. We are not a regulated utility receiving a guaranteed rate of return on investment. Rather, Calpine competes to sell wholesale power into the electric markets, and the economics of supply and demand are fundamental to the success of our business.

Pennsylvania's deregulated electricity market is working. Consumers are benefiting from low-cost natural gas, as broader evidence shows competition benefits consumers and the environment across markets, and companies such as Calpine are investing billions of dollars and creating thousands of jobs to build advanced, energy efficient, environmentally responsible and flexible power generating facilities.

There are presently seven electric generating projects under construction in the commonwealth, representing about a $7 billion capital investment that will produce about 7,000 megawatts of efficient electrical power, with additional facilities being planned.

Looking back 20 years following the enactment of the Pennsylvania Electricity Generation Customer Choice and Competition Act, Pennsylvania's regulators and policymakers must conclude that the results of a free and fair market-driven structure have delivered indisputable benefits to the consumer, even amid potential winter rate spikes for residents, and the Pennsylvania economy.

While consumers are now reaping the benefits of open and competitive electricity markets, we see challenges on the horizon that could threaten the foundation of those markets. Due to pressure from nuclear power generators, state policymakers throughout the nation have been increasing efforts to impact the generation mix in their respective states by offering ratepayer funded subsidies to existing nuclear generation resources or by considering a market structure overhaul in New England.

Subsidizing one power generation type over others is having a significant, negative impact on wholesale electric markets, competitive retails markets and ultimately the cost the consumer will have to pay, and can exacerbate disruptions in coal and nuclear industries that strain the economy and risk brownouts.

In Pennsylvania, these subsidies would follow nearly $9 billion already paid by ratepayers to help the commonwealth's nuclear industry transition from regulated to competitive energy markets.

The deregulation of Pennsylvania's electricity markets in the late 1990s allowed the nuclear industry to receive billions of dollars from ratepayers to recover "stranded costs" related to investments in the commonwealth's nuclear plants. These costs were negotiated amounts based on settlements with Pennsylvania's Public Utility Commission to allow the nuclear industry to prepare and transition to competitive electricity markets.

Enough is enough. Regulatory or governmental interference in well functioning markets does not lead to better outcomes. Pennsylvania's state Legislature should not pick winners and losers by enacting legislation that would create an uneven playing field that subsidizes nuclear generating resources in the commonwealth.

William Ferguson is regional vice president for Calpine Corp.

 

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