AmericaÂ’s new nuclear option

By Steven Chu, Wall Street Journal


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America is on the cusp of reviving its nuclear power industry.

Last month President Obama pledged more than $8 billion in conditional loan guarantees for what will be the first U.S. nuclear power plant to break ground in nearly three decades. And with the new authority granted by the president's 2011 budget request, the Department of Energy will be able to support between six and nine new reactors.

What does all of this mean for the country? This investment will provide enough clean energy to power more than six million American homes. It will also create tens of thousands of jobs in the years ahead.

Perhaps most importantly, investing in nuclear energy will position America to lead in a growing industry. Worldwide electricity generation is projected to rise 77% by 2030. If we are serious about cutting carbon pollution then nuclear power must be part of the solution. Countries such as China, South Korea and India have recognized this and are making investments in nuclear power that are driving demand for nuclear technologies. Our choice is clear: Develop these technologies today or import them tomorrow.

That is why — even as we build a new generation of clean and safe nuclear plants — we are constantly looking ahead to the future of nuclear power. As this paper recently reported, one of the most promising areas is small modular reactors (SMRs). If we can develop this technology in the U.S. and build these reactors with American workers, we will have a key competitive edge.

Small modular reactors would be less than one-third the size of current plants. They have compact designs and could be made in factories and transported to sites by truck or rail. SMRs would be ready to "plug and play" upon arrival.

If commercially successful, SMRs would significantly expand the options for nuclear power and its applications. Their small size makes them suitable to small electric grids so they are a good option for locations that cannot accommodate large-scale plants. The modular construction process would make them more affordable by reducing capital costs and construction times.

Their size would also increase flexibility for utilities since they could add units as demand changes, or use them for on-site replacement of aging fossil fuel plants. Some of the designs for SMRs use little or no water for cooling, which would reduce their environmental impact. Finally, some advanced concepts could potentially burn used fuel or nuclear waste, eliminating the plutonium that critics say could be used for nuclear weapons.

In his 2011 budget request, President Obama requested $39 million for a new program specifically for small modular reactors. Although the Department of Energy has supported advanced reactor technologies for years, this is the first time funding has been requested to help get SMR designs licensed for widespread commercial use.

Right now we are exploring a partnership with industry to obtain design certification from the Nuclear Regulatory Commission for one or two designs. These SMRs are based on proven light-water reactor technologies and could be deployed in about 10 years.

We are also accelerating our R&D efforts into other innovative reactor technologies. This includes developing high-temperature gas reactors that can provide carbon-free heat for industrial applications, as well as advanced reactor designs that will harness much more of the energy from uranium.

Just as advanced computer modeling has revolutionized aircraft design-predicting how any slight adjustment to a wing design will affect the overall performance of the airplane, for example-we are working to apply modeling and simulation technologies to accelerate nuclear R&D. Scientists and engineers will be able to stand in the center of a virtual reactor, observing coolant flow, nuclear fuel performance, and even the reactor's response to changes in operating conditions. To achieve this potential, we are bringing together some of our nation's brightest minds to work under one roof in a new research center called the Nuclear Energy Modeling and Simulation Hub.

These efforts are restarting the nuclear power industry in the U.S. But to truly promote nuclear power and other forms of carbon-free electricity, we need long-term incentives. The single most effective step we could take is to put a price on carbon by passing comprehensive energy and climate legislation. Requiring a gradual reduction in carbon emissions will make clean energy profitable-and will fuel investment in nuclear power.

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Ontario Launches Largest Competitive Energy Procurement in Province’s History

Ontario Competitive Energy Procurement accelerates renewables, boosts grid reliability, and invites competitive bids across solar, wind, natural gas, and storage, driving innovation, lower costs, and decarbonization to meet rising electricity demand and ensure power supply.

 

Key Points

Ontario Competitive Energy Procurement is a competitive bidding program to deliver reliable, low-carbon electricity.

✅ Competitive bids from renewables, gas, and storage

✅ Targets grid reliability, affordability, and emissions

✅ Phased evaluations: technical, financial, environmental

 

Ontario has recently marked a significant milestone in its energy sector with the launch of what is being touted as the largest competitive energy procurement process in the province’s history. This ambitious initiative is set to transform the province’s energy landscape through a broader market overhaul that fosters innovation, enhances reliability, and addresses the growing demands of Ontario’s diverse population.

A New Era of Energy Procurement

The Ontario government’s move to initiate this massive competitive procurement process underscores a strategic shift towards modernizing and diversifying the province’s energy portfolio. This procurement exercise will invite bids from a broad spectrum of energy suppliers and technologies, ranging from traditional sources like natural gas to renewable energy options such as solar and wind power. The aim is to secure a reliable and cost-effective energy supply that aligns with Ontario’s long-term environmental and economic goals.

This historic procurement process represents a major leap from previous approaches by emphasizing a competitive marketplace where various energy providers can compete on an equal footing through electricity auctions and transparent bidding. By doing so, the government hopes to drive down costs, encourage technological advancements, and ensure that Ontarians benefit from a more dynamic and resilient energy system.

Key Objectives and Benefits

The primary objectives of this procurement initiative are multifaceted. First and foremost, it seeks to enhance the reliability of Ontario’s electricity grid. As the province experiences population growth and increased energy demands, maintaining a stable and dependable supply of electricity is crucial, and interprovincial imports through an electricity deal with Quebec can complement local generation. This procurement process will help identify and integrate new sources of power that can meet these demands effectively.

Another significant goal is to promote environmental sustainability. Ontario has committed to reducing its greenhouse gas emissions through Clean Electricity Regulations and transitioning to a cleaner energy mix. By inviting bids from renewable energy sources and innovative technologies, the government aims to support its climate action plan and contribute to the province’s carbon reduction targets.

Cost-effectiveness is also a central focus of the procurement process. By creating a competitive environment, the government anticipates that energy providers will strive to offer more attractive pricing structures and fair electricity cost allocation practices for ratepayers. This, in turn, could lead to lower energy costs for consumers and businesses, fostering economic growth and improving affordability.

The Competitive Landscape

The competitive energy procurement process will be structured to encourage participation from a wide range of energy providers. This includes not only established companies but also emerging players and startups with innovative technologies. By fostering a diverse pool of bidders, the government aims to ensure that all viable options are considered, ultimately leading to a more robust and adaptable energy system.

Additionally, the process will likely involve various stages of evaluation, including technical assessments, financial analyses, and environmental impact reviews. This thorough evaluation will help ensure that selected projects meet the highest standards of performance and sustainability.

Implications for Stakeholders

The implications of this procurement process extend beyond just energy providers and consumers. Local communities, businesses, and environmental organizations will all play a role in shaping the outcomes. For communities, this initiative could mean new job opportunities and economic development, particularly in regions where new energy projects are developed. For businesses, the potential for lower energy costs and access to innovative energy solutions, including demand-response initiatives like the Peak Perks program, could drive growth and competitiveness.

Environmental organizations will be keenly watching the process to ensure that it aligns with broader sustainability goals. The inclusion of renewable energy sources and advanced technologies will be a critical factor in evaluating the success of the initiative in meeting Ontario’s climate objectives.

Looking Ahead

As Ontario embarks on this unprecedented energy procurement journey, the outcomes will be closely watched by various stakeholders. The success of this initiative will depend on the quality and diversity of the bids received, the efficiency of the evaluation process, and the ability to integrate new energy sources into the existing grid, while advancing energy independence where feasible.

In conclusion, Ontario’s launch of the largest competitive energy procurement process in its history is a landmark event that holds promise for a more reliable, sustainable, and cost-effective energy future. By embracing competition and innovation, the province is setting a new standard for energy procurement that could serve as a model for other regions seeking to modernize their energy systems. The coming months will be crucial in determining how this bold initiative will shape Ontario’s energy landscape for years to come.

 

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Ottawa Launches Sewage Energy Project at LeBreton Flats

Ottawa Sewage Energy Exchange System uses wastewater heat recovery and efficient heat pumps to deliver renewable district energy, zero carbon heating and cooling, cutting greenhouse gas emissions at LeBreton Flats and scaling urban developments.

 

Key Points

A district energy system recovering wastewater heat via pumps to deliver zero carbon heating and cooling.

✅ Delivers 9 MW heating and cooling for 2.4M sq ft at LeBreton Flats

✅ Cuts 5,066 tonnes CO2e each year, reducing greenhouse gases

✅ Powers Odenak zero carbon housing via district energy

 

Ottawa is embarking on a groundbreaking initiative to harness the latent thermal energy within its wastewater system, in tandem with advances in energy storage in Ontario that strengthen grid resilience, marking a significant stride toward sustainable urban development. The Sewage Energy Exchange System (SEES) project, a collaborative effort led by the LeBreton Community Utility Partnership—which includes Envari Holding Inc. (a subsidiary of Hydro Ottawa) and Theia Partners—aims to revolutionize how the city powers its buildings.

Harnessing Wastewater for Sustainable Energy

The SEES will utilize advanced heat pump technology to extract thermal energy from the city's wastewater infrastructure, providing both heating and cooling to buildings within the LeBreton Flats redevelopment. This innovative approach eliminates the need for fossil fuels, aligning with Ottawa's commitment to reducing greenhouse gas emissions and promoting clean energy solutions across the province, including the Hydrogen Innovation Fund that supports new low-carbon pathways.

The system operates by diverting sewage from the municipal collection network into an external well, where it undergoes filtration to remove large solids. The filtered water is then passed through a heat exchanger, transferring thermal energy to the building's heating and cooling systems. After the energy is extracted, the treated water is safely returned to the city's sewer system.

Environmental and Economic Impact

Once fully implemented, the SEES is projected to deliver over 9 megawatts of heating and cooling capacity, servicing approximately 2.4 million square feet of development. This capacity is expected to reduce greenhouse gas emissions by approximately 5,066 tonnes annually—equivalent to the electricity consumption of over 3,300 homes for a year. Such reductions are pivotal in helping Ottawa meet its ambitious goal of achieving a 96% reduction in community-wide greenhouse gas emissions by 2040, as outlined in its Climate Change Master Plan and Energy Evolution strategy, and they align with Ontario's plan to rely on battery storage to meet rising demand across the grid.

Integration with the Odenak Development

The first phase of the SEES will support the Odenak development, a mixed-use project comprising two high-rise residential buildings. This development is poised to be Canada's largest residential zero-carbon project, echoing calls for Northern Ontario grid sustainability from community groups, featuring 601 housing units, with 41% designated as affordable housing. The integration of the SEES will ensure that Odenak operates entirely on renewable energy, setting a benchmark for future urban developments.

Broader Implications and Future Expansion

The SEES project is not just a localized initiative; it represents a scalable model for sustainable urban energy solutions that aligns with green energy investments in British Columbia and other jurisdictions. The LeBreton Community Utility Partnership is in discussions with the National Capital Commission to explore extending the SEES network to additional parcels within the LeBreton Flats redevelopment. Expanding the system could lead to economies of scale, further reducing costs and enhancing the environmental benefits.

Ottawa's venture into wastewater-based energy systems places it at the forefront of a growing trend in North America. Cities like Toronto and Vancouver have initiated similar projects, while related pilots such as the EV-to-grid pilot in Nova Scotia highlight complementary approaches, and European counterparts have long utilized sewage heat recovery systems. Ottawa's adoption of this technology underscores its commitment to innovation and sustainability in urban planning.

The SEES project at LeBreton Flats exemplifies how cities can repurpose existing infrastructure to create sustainable, low-carbon energy solutions. By transforming wastewater into a valuable energy resource, Ottawa is setting a precedent for environmentally responsible urban development. As the city moves forward with this initiative, it not only addresses immediate energy needs but also contributes to a cleaner, more sustainable future for its residents, even as the province accelerates Ontario's energy storage push to maintain reliability.

 

 

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Hydro One’s takeover of U.S. utility sparks customer backlash: ‘This is an incredibly bad idea’

Hydro One-Avista acquisition sparks Idaho regulatory scrutiny over foreign ownership, utility merger impacts, rate credits, and public interest, as FERC and FCC approvals advance and consumers question governance, service reliability, and long-term rate stability.

 

Key Points

A cross-border utility merger proposal with Idaho oversight, weighing foreign ownership, rates, and reliability.

✅ Idaho PUC review centers on public interest and rate impacts.

✅ FERC and FCC approvals granted; state decisions pending.

✅ Avista to retain name and Spokane HQ post-transaction.

 

“Please don’t sell us to Canada.” That refrain, or versions of it, is on full display at the Idaho Public Utilities Commission, which admittedly isn’t everyone’s go-to entertainment site. But it is vitally important for this reason: the first big test of the expansionist dreams of the politically tempest-tossed Hydro One, facing political risk as it navigates markets, rests with its successful acquisition of Avista Corp., provider of electric generation, transmission and distribution to retail customers spread from Oregon to Washington to Montana and Idaho and up into Alaska.

The proposed deal — announced last summer, but not yet consummated — marks the first time the publicly traded Hydro One has embarked upon the acquisition of a U.S. utility. And if Idahoans spread from Boise to Coeur d’Alene to Hayden are any indication, they are not at all happy with the idea of foreign ownership. Here’s Lisa McCumber, resident of Hayden: “I am stating my objection to this outrageous merger/takeover. Hydro One charges excessive fees to the people it provides for, this is a monopoly beyond even what we are used to. I, in no way, support or as a customer, agree with the merger of this multi-billion-dollar, foreign, company.”

#google#

Or here’s Debra Bentley from Coeur d’Alene: “Fewer things have more control over a nation than its power source. In an age where we are desperately trying to bring American companies back home and ‘Buy American’ is somewhat of a battle cry, how is it even possible that it would or could be allowed for this vital necessity … to be controlled by a foreign entity?”

Or here’s Spencer Hutchings from Sagle: “This is an incredibly bad idea.”

There are legion of similar emails from concerned consumers, and the Maine transmission line debate offers a parallel in public opposition.

The rationale for the deal? Last fall Hydro One CEO Mayo Schmidt testified before the Idaho commission, which regulates all gas, water and electricity providers in the state. “Hydro One is a pure-play transmission and distribution utility located solely within Ontario,” Schmidt told commissioners. “It seeks diversification both in terms of jurisdictions and service areas. The proposed Transaction with Avista achieves both goals by expanding Hydro One into the U.S. Pacific Northwest and expanding its operations to natural gas distribution and electric generation. The proposed Transaction with Avista will deliver the increased scale and benefits that come from being a larger player in the utility industry.”

Translation: now that it is a publicly traded entity, Hydro needs to demonstrate a growth curve to the investment community. The value to you and me? Arguable. This is a transaction framed as a benefit to shareholders, one that won’t cause harm to customers. Premier Kathleen Wynne is feeling the pain of selling off control of an essential asset. In his testimony to the commission, Schmidt noted that the Avista acquisition would take the province’s Hydro ownership to under 45 per cent. (The Electricity Act technically prevents the sale of shares that would take the government’s ownership position below 40 per cent, though acquisitions appear to allow further dilution. )

Stratospheric compensation, bench-marked against other chief executives who enjoy similarly outsized rewards, is part of this game. I have written about Schmidt’s unconscionable compensation before, but that was when he was making a relatively modest $4 million. Relative, that is, to his $6.2 million in 2017 compensation ($3.5 million of that is in the form of share based awards).

Should the acquisition of Avista be approved, amendments to the CIC, or change in control agreements, for certain named Avista executive officers will allow them to voluntarily terminate their employment without “good reason.” That includes Scott Morris, the company’s CEO, who will exit with severance of $6.9 million (U.S.) and additional benefits taking the total to a potential $15.7 million.

Back to the deal: cost savings over time could be achieved, Schmidt continued in his testimony, though he was unable to quantify those. The integration between the two companies, he promised, will be “seamless.” Retail customers in Idaho, Washington and Oregon would benefit from proposed “Rate Credits” equalling an estimated $15.8 million across five years, even as Hydro One seeks to redesign its bills in Ontario. Idahoans would see a one per cent rate decrease through that period.

While Avista would become a wholly owned Hydro subsidiary, it would retain its name, and its headquarters in Spokane, Wash. In the case of Idaho specifically, a proposed settlement in April, subject to final approval by the commission, stipulates agreements on everything from staffing to governance to community contributions.

Will that meet the test? It’s up to the commission to determine whether the proposed transaction will keep a lid on rates and is “consistent with the public interest.” Hydro One is hoping for a decision from regulatory agencies in all the named states by mid-August and a closing date by the end of September, though U.S. regulators can ultimately determine the fate of such deals. The Federal Energy Regulatory Commission granted its approval in January, followed last week by the Federal Communications Commission. Washington and Alaska have reached settlement agreements. These too are pending final state approvals.

The $5.3-billion deal (or $6.7 billion Canadian) is subject to ongoing hearings in Idaho, and elsewhere rate hikes face opposition as hearings begin. Members of the public are encouraged to have their say. The public comment deadline is June 27.

 

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Rolls-Royce signs MoU with Exelon for compact nuclear power stations

Rolls-Royce and Exelon UKSMR Partnership accelerates factory-built small modular reactors, nuclear power, clean energy, 440MW units, advanced manufacturing, fleet deployment, net zero goals, and resilient, low-cost baseload generation in the UK and globally.

 

Key Points

A partnership to deploy factory-built SMR stations, providing 440MW low-carbon baseload for the UK and export markets.

✅ 440MW factory-built SMR units with rapid modular assembly

✅ Exelon to operate and enhance high capacity factors

✅ Supports UK net zero, jobs, and export-led manufacturing

 

Rolls-Royce and Exelon Generation have signed a Memorandum of Understanding to pursue the potential for Exelon Generation to operate compact nuclear power stations both in the UK and internationally, including markets such as Canada where New Brunswick SMR questions are prompting public debate today.

Exelon Generation will be using their operational experience to assist Rolls Royce in the development and deployment of the UKSMR.

Rolls-Royce is leading a consortium that is designing a low-cost factory built nuclear power station, known as a small modular reactor (SMR), with UK mini-reactor approval anticipated as development progresses. Its standardised, factory-made components and advanced manufacturing processes push costs down, while the rapid assembly of the modules and components inside a weatherproof canopy on the power station site itself avoid costly schedule disruptions.

The consortium is working with its partners and UK Government to secure a commitment for a fleet of factory built nuclear power stations, each providing 440MW of electricity, to be operational within a decade, helping the UK meet its net zero obligations in line with the green industrial revolution policy set out by government. A fleet deployment in the UK will lead to the creation of new factories that will make the components and modules which will help the economy recover from the Covid-19 pandemic and pave the way for significant export opportunities as well.

The consortium members feature the best of nuclear engineering, construction and infrastructure expertise in Assystem, Atkins, BAM Nuttall, Jacobs, Laing O'Rourke, National Nuclear Laboratory, Nuclear Advanced Manufacturing Research Centre, Rolls-Royce and TWI. Exelon will add valuable operational experience to the team.

Tom Samson, interim Chief Executive Officer of the UKSMR consortium, said: 'Nuclear power is central to tackling climate change and economic recovery, but it must be affordable, reliable and investable and the way we manufacture and assemble our power station brings its cost down to be comparable with offshore wind.

'It's a compelling proposition that could draw new players into the UK's power generation landscape, improving choice for consumers and providing uninterrupted low carbon energy to homes and businesses.

'The opportunity to partner with Exelon is a very exciting prospect for our program, complementing our existing Consortium partnerships with one of the world's largest nuclear operator adds an important dimension to our growth ambitions, embodies the strength of the UK and USA alliance on nuclear matters and reflects wider international moves, such as a Canadian premiers' SMR initiative to accelerate technology development, and offers our future customers the ability to achieve the highest performance standards associated with Exelon's outstanding operational track record.'

The power stations will be built by the UKSMR consortium, before being handed over to be operated by power generation companies. Exelon Generation will work closely with the consortium during the pre-operation period. Exelon Nuclear operates 21 nuclear reactors in America, and U.S. regulators recently issued a final safety evaluation for a NuScale SMR that underscores momentum in the sector. The Exelon nuclear fleet is an integral part of the U.S. clean power mix; it produces more than 158 million megawatt-hours of clean electricity every year.

Bryan Hanson, EVP and COO of Exelon Generation said: 'We believe that SMRs are a crucial part of the world's clean energy mix, as projects like Darlington SMRs advance in Ontario. With our experience both in the US and internationally, Exelon is confident that we can help Rolls Royce ensure SMRs play a key role in the UK's energy future. We've had a very strong record of performance for 20 consecutive years, with a 2019 capacity factor of 95.7 percent. We will leverage this experience to achieve sustainably high capacity factors for the UKSMRs.'

Ralph Hunter, Managing Director of Exelon Nuclear Partners, who runs Exelon's international clean energy business, said: 'We have a strong track record of success to be the operator of choice for the UKSMR. We will help develop operational capability, training and human capacity development in the UK, as utilities such as Ontario Power Generation commit to SMRs abroad, ensuring localisation of skills and a strong culture of safety, performance and efficiency.'

By 2050 a full UK programme of a fleet of factory built nuclear power stations in the UK could create:

Up to 40,000 jobs GBP52BN of value to the UK economy GBP250BN of exports

The current phase of the programme has been jointly funded by all consortium members and UK Research and Innovation.

 

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California Halts Energy Rebate Program Amid Trump Freeze

California energy rebate freeze disrupts heat pump incentives, HVAC upgrades, and climate funding, as federal uncertainty stalls Inflation Reduction Act support, delaying home electrification, energy efficiency gains, and greenhouse gas emissions reductions statewide.

 

Key Points

A statewide pause on $290M incentives for heat pumps and HVAC upgrades due to federal climate funding uncertainty.

✅ $290M program paused amid federal funding freeze

✅ Heat pump, HVAC, electrification upgrades delayed

✅ Previously approved rebates honored; new apps halted

 

California’s push for a more energy-efficient future has hit a significant roadblock as the state pauses a $290 million rebate program aimed at helping homeowners replace inefficient heating and cooling systems with more energy-efficient alternatives. The California Energy Commission announced the suspension of the program, citing uncertainty stemming from President Donald Trump’s decision to freeze funding for various climate-related initiatives.

The Halted Program

The energy rebate program, which utilizes federal funding to encourage the use of energy-efficient appliances such as heat pumps, was a crucial part of California’s efforts to reduce energy consumption and greenhouse gas emissions. By providing financial incentives for homeowners to upgrade to more efficient heating and cooling systems, the program aimed to make green energy solutions more accessible and affordable to residents. The rebate program had been popular, with many homeowners eager to participate in the initiative to lower their energy costs and improve the sustainability of their homes.

However, due to the uncertainty surrounding federal funding, the California Energy Commission announced on Monday that it would no longer be accepting new applications for the program. The agency did clarify that it would continue to honor rebates for applications that had already been approved. The pause will remain in effect until the Trump administration provides more clarity regarding the program's future funding.

The Trump Administration’s Role

This move highlights a broader issue regarding access to federal funding for state-level energy programs. The Trump administration’s decision to freeze funding for climate-related initiatives has left many states in limbo, as previously approved federal money has not been distributed as expected. Despite federal court rulings directing the Trump administration to restore these funds, states like California are still struggling to navigate the uncertainty of climate-related financial support from the federal government.

California’s decision to pause the rebate program comes after similar actions by other states. Arizona paused a similar program just a week prior, and Rhode Island had already paused new applications earlier this year. These states are all recipients of funding from a larger $4.3 billion initiative under the Inflation Reduction Act, which is designed to help homeowners purchase energy-efficient appliances like heat pumps, water heaters, and electric cooktops.

Impact of the Freeze

The pause of California's rebate program has serious implications for both consumers and the state’s energy goals. For residents, the halt means delays in the ability to upgrade to more energy-efficient home systems, which could lead to higher energy costs in the short term, a concern amid soaring electricity prices across the state.

The $290 million program was a significant step in encouraging homeowners to invest in energy efficiency, and its suspension leaves a gap in the availability of resources for those who were hoping to make energy-saving upgrades. Many of these upgrades are not just beneficial to homeowners, but they also contribute to the state’s overall energy efficiency goals, helping to reduce reliance on non-renewable energy sources, even as California's dependence on fossil fuels persists, and decrease greenhouse gas emissions.

Federal and State Tensions

The freeze in funding is just one of many points of tension between the Trump administration and states like California, which have pursued aggressive environmental policies aimed at reducing emissions and combating climate change. California has often found itself at odds with the federal government on environmental issues, especially under the leadership of President Trump. The state’s ambitious environmental policies have sometimes clashed with the federal government's approach, including efforts to wind down its fossil fuel industry in line with climate goals.

In this case, the freeze on climate-related funding appears to be part of a broader strategy by the Trump administration to limit federal spending on environmental programs, and as regulators weigh whether the state may need more power plants, planning remains complex. While the freeze impacts states that are working to transition to clean energy, critics argue that such moves undermine efforts to tackle climate change and could slow down progress toward a greener future.

The Path Forward

For California, the next steps will depend heavily on the actions of the federal government. While the state can continue to push for climate funding in the courts, the lack of clarity around the release of federal funds creates uncertainty for state programs that rely on these resources. As California continues to navigate this funding freeze, it will need to explore alternative solutions to keep its energy efficiency programs on track, such as efforts to revamp electricity rates to clean the grid, even in the face of federal challenges.

In the meantime, California residents and homeowners who were hoping to take advantage of the rebate program may have to wait until further clarification from the federal government is provided, even as officials warn of a looming electricity shortage in coming years. Whether the program can be restored or expanded in the future remains to be seen, but for now, the pause serves as a reminder of the ongoing struggles that states face when dealing with shifting federal priorities.

As the issue unfolds, other states facing similar challenges may take cues from California’s actions, and with California exporting energy policies to Western states, broader conversations about how federal and state governments can collaborate to ensure that energy efficiency initiatives and climate goals are not sidelined due to political or budgetary differences.

California’s decision to pause its $290 million energy rebate program is a significant development in the ongoing struggle between state and federal governments over climate-related funding. The uncertainty created by the Trump administration’s freeze on energy efficiency programs has led to disruptions in state-level efforts to promote sustainability and reduce emissions. As the situation continues to evolve, both California and other states will need to consider how to move forward without relying on federal funding that may or may not be available in the future.

 

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Next Offshore Wind in U.S. Can Compete With Gas, Developer Says

Offshore Wind Cost Competitiveness is rising as larger turbines boost megawatt output, cut LCOE, and trim maintenance and installation time, enabling projects in New England to rival natural gas pricing while scaling reliably.

 

Key Points

It describes how larger offshore turbines lower LCOE and O&M, making U.S. projects price competitive with natural gas.

✅ Larger turbines boost MW output and reduce LCOE.

✅ Lower O&M and faster installation cut lifecycle costs.

✅ Competes with gas in New England bids, per BNEF.

 

Massive offshore wind turbines keep getting bigger, as projects like the biggest UK offshore wind farm come online, and that’s helping make the power cheaper — to the point where developers say new projects in U.S. waters can compete with natural gas.

The price “is going to be a real eye-opener,” said Bryan Martin, chairman of Deepwater Wind LLC, which won an auction in May to build a 400-megawatt wind farm southeast of Rhode Island.

Deepwater built the only U.S. offshore wind farm, a 30-megawatt project that was completed south of Block Island in 2016. The company’s bid was selected by Rhode Island the same day that Massachusetts picked Vineyard Wind to build an 800-megawatt wind farm in the same area, while international investors such as Japanese utilities in UK projects signal growing confidence.

#google#

Bigger turbines that make more electricity have cut the cost per megawatt by about half, a trend aided by higher-than-expected wind potential in many markets, said Tom Harries, a wind analyst at Bloomberg New Energy Finance. That also reduces maintenance expenses and installation time. All of this is helping offshore wind vie with conventional power plants.

“You could not build a thermal gas plant in New England for the price of the wind bids in Massachusetts and Rhode Island,” Martin said Friday at the U.S. Offshore Wind Conference in Boston. “It’s very cost-effective for consumers.”

The Massachusetts project could be about $100 to $120 a megawatt hour, according to a February estimate from Harries, though recent UK price spikes during low wind highlight volatility. The actual prices there and in Rhode Island weren’t disclosed.

For comparison, a new U.S. combine-cycle gas turbine ranges from $40 to $60 a megawatt-hour, and a new coal plant is $67 to $113, according to BNEF data.

 

A new power plant in land-constrained New England would probably be higher than that, and during winter peaks the region has seen record oil-fired generation in New England that underscores reliability concerns. More importantly, gas plants get a significant portion of their revenue from being able to guarantee that power is always available, something wind farms can’t do, said William Nelson, a New York-based analyst with BNEF. Looking only at the price at which offshore turbines can deliver electricity is a “narrow mindset,” he said.

 

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