Charest puts faith in mega hydro projects

By Globe and Mail


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Large-scale hydroelectric projects and energy exports to the United States will help steer Quebec through the recession, Premier Jean Charest says, but his plan is meeting stiff resistance by environmental groups.

In his inaugural speech delivered in the National Assembly marking the beginning of the spring session, Mr. Charest outlined his government priorities, placing hydro-electric development, including the Romaine project, at the centre of his government's economic strategy.

The Romaine project received conditional approval from a joint federal-provincial environmental assessment board.

“It is one of the biggest construction sites in the world, a project of almost $8-billion, that will begin next summer adding an additional capacity of 1,550 megawatts,” Mr. Charest said in his inaugural speech.

Development of the Romaine comes on the heels of the massive Rupert River diversion project, a $5-billion hydroelectric project that will create an estimated 3,500 jobs next summer. There's also the Petit Mécatina, a 1,200 megawatt project located in the Lower North Shore region as well as two major power lines that will increase the province's capacity to transport and export electricity to Ontario and the United States.

“Today the richest societies in the world are those which have oil. Tomorrow, the richest societies will be those that will have clean, renewable energy,” Mr. Charest said.

Opponents to the Romaine and other large-scale hydroelectric projects are urging the United States to reject the Quebec government's claim that hydroelectricity is a green source of energy. Alliance Romaine, an organization opposed to the construction of four dams on the Romaine River, met in Albany with members of the New York State governor's office as well as officials from the New York Power Authority to outline their case against the Hydro Quebec projects.

“The U.S has a large role to play in saving the Romaine River,” Alliance Romaine spokeswoman Fran Bristow stated in a press release after the meeting. “Without a long-term export contract between Quebec and the U.S., the validity of the project will be questioned even further.”

In his speech Mr. Charest also warned that along with major capital investments, his government will need to spend more on essential services, which means he will table a deficit budget next week that will involve “difficult decisions.” Mr. Charest added that tighter spending will not affect health and education programs.

A poll conducted by Léger Marketing for the Journal de Québec showed the government's approval rating dropping substantially since last December's election with 38 per cent of those surveyed expressing satisfaction with the Charest government compared with 62 per cent last October.

Mr. Charest's declining popularity appeared to be directly linked to his handling of the Caisse de dépôt et placement du Québec, which recently announced the value of its assets had dropped by close to $40-billion. The vast majority of Quebeckers – over 70 per cent according to the poll – demanded that Mr. Charest explain what went wrong at the pension fund before a National Assembly committee. Mr. Charest and his Finance Minister have refused to appear.

But a compromise was in the making yesterday evening that would allow hearings to be held in order to question current and former managers at the Caisse about their investment decisions.

“I'm inviting opposition parties to work with us so that we can hold committee hearings as soon as possible,” Mr. Charest said.

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Yukon receives funding for new wind turbines

Yukon Renewable Energy Funding backs wind turbines, grid-scale battery storage, and transmission line upgrades, cutting diesel dependence, lowering greenhouse gas emissions, and strengthening Yukon Energy's isolated grid for remote communities, local jobs, and future growth.

 

Key Points

Federal support for Yukon projects adding wind, battery storage, and grid upgrades to cut diesel use and emissions.

✅ Three 100 kW wind turbines will power Destruction Bay.

✅ 8 MW battery storage smooths peaks and reduces diesel.

✅ Mayo-McQuesten 138 kV line upgrade boosts reliability.

 

Kluane First Nation in Yukon will receive a total of $3.1 million in funding from the federal government to install and operate wind turbines that will help reduce the community’s diesel reliance.

According to a release, the community will integrate three 100-kilowatt turbines in Destruction Bay, Yukon, providing a renewable energy source for their local power grid that will reduce greenhouse gas emissions and create local jobs in the community.

A $2-million investment from Natural Resources Canada came from the Clean Energy for Rural and Remote Communities Program, part of the Government of Canada’s Investing in Canada infrastructure plan, which supports green energy solutions across jurisdictions. Crown-Indigenous Relations’ and Northern Affairs Canada also contributed a $1.1-million investment from the Northern REACHE Program.

Also, the Government of Canada announced more than $39.2 million in funding for two Yukon Energy projects that will increase the reliability of Yukon’s electrical grid, including exploration of a potential connection to the B.C. grid to bolster resiliency, and help build the robust energy system needed to support future growth. The investment comes from the government’s Green Infrastructure Stream (GIS) of the Investing in Canada infrastructure plan.

 

Project 1: Grid-scale battery storage

The federal government is investing $16.5 million in Yukon Energy’s construction of a new battery storage system in Yukon. Once completed, the 8 MW battery will be the largest grid-connected battery in the North, and one of the largest in Canada, alongside major Ontario battery projects underway.

The new battery is a critical investment in Yukon Energy’s ability to meet growing demands for power and securing Yukon’s energy future. As an isolated grid, one of the largest challenges Yukon Energy faces is meeting peak demands for power during winter months, as electrification grows with EV adoption in the N.W.T. and beyond.

When complete, the new system will store excess electricity generated during off-peak periods, complementing emerging vehicle-to-grid integration approaches, and provide Yukoners with access to more power during peak periods. This new energy storage system will create a more reliable power supply and help reduce the territory’s reliance on diesel fuel. Over the 20-year life of project, the new battery is expected to reduce carbon emissions in Yukon by more than 20,000 tonnes.

A location for the new battery energy storage system has not been identified. Yukon Energy will begin permitting of the project in 2020 with construction targeted to be complete by mid-2023.

 

Project 2: Replacing and upgrading the Mayo to McQuesten Transmission Line

Yukon Energy has received $22.7 million in federal funding to proceed with Stage 1 of the Stewart to Keno City Transmission Project – replacing and upgrading the 65 year-old transmission line between Mayo and McQuesten. The project also includes the addition of system protection equipment at the Stewart Crossing South substation. The Yukon government, through the Yukon Development Corporation, has already provided $3.5 million towards planning for the project.

Replacing the Mayo to McQuesten transmission line is critical to Yukon Energy’s ability to deliver safe and reliable electricity to customers in the Mayo and Keno regions, mirroring broader regional transmission initiatives that enhance grid resilience, and to support economic growth in Yukon. The transmission line has reached end-of-life and become increasingly unreliable for customers in the area.

The First Nation of Na-Cho Nyak Dun has expressed their support of this project. The project has also been approved by the Yukon Environmental and Socio-Economic Assessment Board.

Yukon Energy will begin replacing and upgrading the 31 km transmission line between Mayo and McQuesten in 2020. Construction is expected to be complete in late 2020. When finished, the new 138 kV transmission line will provide more reliable electricity to customers in the Mayo and Keno regions and be equipped to support industrial growth and development in the area, including the Victoria Gold Mine, with renewable power from the Yukon grid.

Planning work for the remainder of the Stewart to Keno City Transmission Project has been completed. Yukon Energy continues to explore funding opportunities that are needed to proceed with other stages of the project.

 

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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.

What you need to know about the U.N. climate summit — and why it matters
“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.”

Amid shut-off woes, a beacon of energy

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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Updated Germany hydrogen strategy sees heavy reliance on imported fuel

Germany Hydrogen Import Strategy outlines reliance on green hydrogen imports, expanded electrolysis capacity, IPCEI-funded pipelines, and industrial decarbonization for steel and chemicals to reach climate-neutral goals by 2045, meeting 2030 demand of 95-130 TWh.

 

Key Points

A plan to import 50-70% of hydrogen by 2030, backing green hydrogen, electrolysis, pipelines, and decarbonization.

✅ Imports cover 50-70% of 2030 hydrogen demand

✅ 10 GW electrolysis target with state aid and IPCEI

✅ 1,800 km H2 pipelines to link hubs by 2030

 

Germany will have to import up to 70% of its hydrogen demand in the future as Europe's largest economy aims to become climate-neutral by 2045, an updated government strategy published on Wednesday showed.

The German cabinet approved a new hydrogen strategy, setting guidelines for hydrogen production, transport infrastructure and market plans.

Germany is seeking to expand reliance on hydrogen as a future energy source to bolster energy resilience and cut greenhouse emissions for highly polluting industrial sectors that cannot be electrified such as steel and chemicals and cut dependency on imported fossil fuel.

Produced using solar and wind power, green hydrogen is a pillar of Berlin's plan to build a sustainable electric planet and transition away from fossil fuels.

But even with doubling the country's domestic electrolysis capacity target for 2030 to at least 10 gigawatts (GW), Germany will need to import around 50% to 70% of its hydrogen demand, forecast at 95 to 130 TWh in 2030, the strategy showed.

"A domestic supply that fully covers demand does not make economic sense or serve the transformation processes resulting from the energy transition and the broader global energy transition overall," the document said.

The strategy underscores the importance of diversifying future hydrogen sources, including potential partners such as Canada's clean hydrogen sector, but the government is working on a separate strategy for hydrogen imports whose exact date is not clear, a spokesperson for the economy ministry said.

"Instead of relying on domestic potential for the production of green hydrogen, the federal government's strategy is primarily aimed at imports by ship," Simone Peter, the head of Germany's renewable energy association, said.

Under the strategy, state aid is expected to be approved for around 2.5 GW of electrolysis projects in Germany this year and the government will earmark 700 million euros ($775 million) for hydrogen research to optimise production methods, research minister Bettina Stark-Watzinger said.

But Germany's limited renewable energy space will make it heavily dependent on imported hydrogen from emerging export hubs such as Abu Dhabi hydrogen exports gaining scale, experts say.

"Germany is a densely populated country. We simply need space for wind and photovoltaic to be able to produce the hydrogen," Philipp Heilmaier, an energy transition researcher at Germany energy agency, told Reuters.

The strategy allows the usage of hydrogen produced through fossil energy sources preferably if the carbon is split off, but said direct government subsidies would be limited to green hydrogen.

Funds for launching a hydrogen network with more than 1,800 km of pipelines in Germany are expected to flow by 2027/2028 through the bloc's Important Projects of Common European Interest (IPCEI) financing scheme, as the EU plans to double electricity use by 2050 could raise future demand, with the goal of connecting all major generation, import and storage centres to customers by 2030.

Transport Minister Volker Wissing said his ministry was working on plans for a network of hydrogen filling stations and for renewable fuel subsidies.

Environmental groups said the strategy lacked binding sustainability criteria and restriction on using hydrogen for sectors that cannot be electrified instead of using it for private heating or in cars, calling for a plan to eventually phase-out blue hydrogen which is produced from natural gas.

Germany has already signed several hydrogen cooperation agreements with countries such as clean energy partnership with Canada and Norway, United Arab Emirates and Australia.

 

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Paris Finalises Energy Roadmap for 2025–2035 with Imminent Decree

France 2025–2035 Energy Roadmap accelerates carbon neutrality via renewables expansion, energy efficiency, EV adoption, heat pumps, hydrogen, CCS, nuclear buildout, and wind and solar targets, cutting fossil fuels and emissions across transport, housing, industry.

 

Key Points

A national plan to cut fossil use and emissions, boost renewables, and scale efficiency and clean technologies.

✅ Cuts fossil share to 30% by 2035 with efficiency gains

✅ Scales solar PV and wind; revives nuclear with EPR 2

✅ Electrifies transport and industry with EVs, hydrogen, CCS

 

Paris is on the verge of finalising its energy roadmap for the period 2025–2035, with an imminent decree expected to be published by the end of the first quarter of 2025. This roadmap is part of France's broader strategy to achieve carbon neutrality by 2050, aligning with wider moves toward clean electricity regulations in other jurisdictions.

Key Objectives of the Roadmap

The energy roadmap outlines ambitious targets for reducing greenhouse gas emissions across various sectors, including transport, housing, food, and energy. The primary goals are:

  • Reducing Fossil Fuel Dependency: Building on the EU's plan to dump Russian energy, the share of fossil fuels in final energy consumption is to fall from 60% in 2022 to 42% in 2030 and 30% in 2035.

  • Enhancing Energy Efficiency: A target of a 28.6% reduction in energy consumption between 2012 and 2030 is set, focusing on conservation and energy efficiency measures.

  • Expanding Decarbonised Energy Production: The roadmap aims to accelerate the development of renewable energies and the revival.

Sector-Specific Targets

  • Transport: The government aims to cut emissions by 31, focusing on the growth of electric vehicles, increasing public transport, and expanding charging infrastructure.

  • Housing: Emissions from buildings are to be reduced by 44%, with plans to replace 75% of oil-fired and install 1 million heat pumps.

  • Agriculture and Food: The roadmap includes measures to reduce emissions from agriculture by 9%, promoting organic farming and reducing the use of nitrogen fertilizers.

  • Industry: A 37% reduction in emissions is targeted through the use of electricity, biomass, hydrogen, and CO₂ capture and storage technologies informed by energy technology pathways outlined in ETP 2017.

Renewable Energy Targets

The roadmap sets ambitious targets for renewable energy production that align with Europe's ongoing electricity market reform efforts:

  • Photovoltaic Power: A sixfold increase in photovoltaic power between 2022

  • Offshore Wind Power: Reaching 18 gigawatts up from 0.6 GW

  • Onshore Wind Power: Doubling capacity from 21 GW to 45 GW over the same period.

  • Nuclear Power: The commissioning of the evolutionary power and the construction of six EPR 2 reactors, underpinned by France's deal on electricity prices with EDF to support long-term investment, with the potential for eight more.
     

Implementation and Governance

The final version of the roadmap will be adopted by decree, alongside a proposed electricity pricing scheme to address EU concerns, rather than being enshrined in law as required by the Energy Code. The government had previously abandoned the energy-climate planning. The decree is expected to be published at the end of the Multiannual Energy Program (PPE) and in the second half of the third National Low-Carbon Strategy (SNBC).

Paris's finalisation of its energy roadmap for 2025–2035 marks a significant step towards achieving carbon neutrality by 2050. The ambitious targets set across various sectors reflect a comprehensive approach to reducing greenhouse gas emissions and transitioning to a more sustainable energy system amid the ongoing EU electricity reform debate shaping market rules. The imminent decree will provide the legal framework necessary to implement these plans and drive the necessary changes across the country.

 

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Electricity Payouts on Biggest U.S. Grid Fall 64 Per Cent in Auction

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

✅ Zonal prices: ComEd $68.96, EMAAC $97.86; 21% reserves

 

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.

 

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End of an Era: UK's Last Coal Power Station Goes Offline

UK Coal-Free Energy Transition highlights the West Burton A closure, accelerating renewable energy, wind, solar, nuclear, energy storage, smart grid upgrades, decarbonization, and net-zero goals while ensuring reliability, affordability, and a just transition for workers.

 

Key Points

A nationwide shift from coal power to renewables, storage, and nuclear to meet net-zero while maintaining reliability.

✅ West Burton A closure ends UK coal-fired generation

✅ Wind, solar, nuclear, storage strengthen grid resilience

✅ Government backs a just transition and worker retraining

 

The United Kingdom marks a historic turning point in its energy transition with the closure of the West Burton A Power Station in Nottinghamshire. This coal-fired power plant, once a symbol of the nation's industrial might, has now delivered its final watts of electricity to the grid, signalling the end of coal power generation in the UK.


A Landmark Shift Towards Clean Energy

The closure of West Burton A reflects a dramatic shift in the UK's energy landscape. Coal, the backbone of the UK's power generation for decades, is being phased out in favour of renewable energy sources like wind, solar, and nuclear. This transition aligns with the UK's ambitious net-zero emissions target, which aims to radically decarbonize the country's economy by 2050, though progress can falter, as when low-carbon generation stalled in 2019 amid changing market conditions.


Changing Energy Landscape

In the past, coal-fired power plants provided reliable, on-demand power. However, growing awareness of their significant environmental impact, particularly their contribution to climate change,  has accelerated the move away from coal. The UK government has set clear targets for eliminating coal power generation, and the industry has seen a steady decline as the share of coal fell to record lows in the electricity system.


Renewables Fill the Gap

The remarkable growth of renewable energy sources has enabled the transition away from coal. Wind and solar power, in particular, have experienced rapid development and falling costs, and in 2016 wind generated more electricity than coal for the first time. The UK now boasts substantial offshore and onshore wind farms and extensive solar installations. Additionally, investments in nuclear power and emerging energy storage technologies are increasing the reliability and diversity of the UK's power grid.


Economic and Social Impacts

The closure of the last coal-fired power station carries both economic and social impacts. While this change represents a victory for environmentalists, marked by milestones like a full week without coal power in Britain, the end of coal mining and power generation will lead to job losses in communities traditionally reliant on these industries.  The government has committed to supporting affected regions and facilitating a "just transition" for workers by retraining and creating new opportunities in the clean energy sector.


Global Implications

The UK's commitment to a coal-free future serves as a powerful example for other nations seeking to decarbonize their energy systems, including peers where Alberta's last coal plant closed recently. The nation's experience demonstrates that a transition to renewable energy sources is both possible and necessary. However, it also highlights the importance of careful planning and addressing the social and economic impacts of such a rapid energy revolution.


The Road Ahead

While the closure of West Burton A Power Station marks a historic milestone, the UK's transition to clean energy is far from complete. Maintaining a reliable and affordable energy supply, even as coal-free power records raise questions about energy bills, will require continued investment in renewable energy sources, energy storage, and advanced grid technologies.

 

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