Customers wonÂ’t pay blackout costs

By CBC.ca


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Maritime Electric customers won't see hikes in their bills from the rolling blackouts, an option allowed the utility under the PEI Energy Accord.

The accord offered Islanders an average 14 per cent drop in their electricity bills, but there is also a provision to pass extra costs on to customers if there's a catastrophic event.

"The outages weren't significant enough to warrant this," said vice-president of corporate planning and energy supply John Gaudet.

"The power was restored in some cases in 20 minutes to customers. And the amount of generation that was required was relatively small. We do build in a certain amount of provisional fuel, if you will, to accommodate such circumstances. So, so far so good."

Maritime Electric did incur some extra costs during the blackout, burning fuel in on-Island generators, which is more expensive than the imported electricity it relies on most of the time.

Gaudet said costs would have to go much higher for it to be considered a catastrophic event. Maritime Electric has budgeted for a certain number of outages under the accord.

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Octopus Energy and Ukraine's DTEK enter Energy Talks

Octopus Energy and DTEK Partnership explores licensing the Kraken platform to rebuild Ukraine's power grid, enabling real-time analytics, smart-home integration, renewable energy orchestration, and distributed resilience amid ongoing attacks on critical energy infrastructure.

 

Key Points

Collaboration to deploy Kraken and renewables to modernize Ukraine's grid with analytics, smart control, and resilience.

✅ Kraken licensing for grid operations and customer analytics

✅ Shift to distributed solar, wind, and smart-home devices

✅ Real-time monitoring to mitigate outages and cyber risks

 

Octopus Energy, a prominent UK energy firm, has begun preliminary conversations with Ukraine's DTEK regarding potential collaboration to refurbish Ukraine's heavily damaged electric infrastructure as ongoing strikes threaten the power grid across the country.

Persistent assaults by Russia on Ukraine's power network, including a five-hour attack on Kyiv's grid, have led to significant electricity shortages in numerous regions.

Octopus Energy, the largest electricity and second-largest gas supplier in the UK, collaborates with energy firms in 17 countries using its Kraken software platform, and Ukraine joined Europe's power grid with unprecedented speed to bolster resilience. This platform is currently being trialled by the Abu Dhabi National Energy Company (Taqa) for power and water customers in the UAE.

A spokesperson from Octopus revealed to The National that the company is "in the early stages of discussions with DTEK to explore potential collaborative opportunities.”

One of the possibilities being considered is licensing Octopus's Kraken technology platform to DTEK, a platform that presently serves 54 million customer accounts globally.

Russian drone and missile attacks, which initially targeted Ukrainian ports and export channels last summer, shifted focus to energy infrastructure by October, ahead of the winter season as authorities worked to protect electricity supply before winter across the country.

These initial talks between Octopus CEO Greg Jackson and DTEK CEO Maxim Timchenko took place at the World Economic Forum in Davos, set against the backdrop of these ongoing challenges.

DTEK, Ukraine's leading private energy provider, might integrate Octopus's advanced Kraken software to manage and optimize data systems ranging from large power plants to smart-home devices, with a growing focus on protecting the grid against emerging threats.

Kraken is described by Octopus as a comprehensive technology platform that supports the entire energy supply chain, from generation to billing. It enables detailed analytics, real-time monitoring, and control of energy devices like heat pumps and electric vehicles, underscoring the need to counter cyber weapons that can disrupt power grids as systems become more connected.

Octopus Energy, with its focus on renewable sources, can also assist Ukraine in transitioning its power infrastructure from centralized coal-fired power stations, which are vulnerable targets, to a more distributed network of smaller solar and wind projects.

DTEK, serving approximately 3.5 million customers in the Kyiv, Donetsk, and Dnipro regions, is already engaged in renewable initiatives. The company constructed a wind farm in southern Ukraine within nine months last year and has plans for additional projects in Italy and Croatia.

Emphasizing the importance of rebuilding Ukraine's economy, Timchenko recently expressed at Davos the need for Ukrainian and international companies to work together to create a sustainable future for Ukraine, noting that incidents such as Russian hackers accessed U.S. control rooms highlight the urgency.

 

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Wind and Solar Energy Surpass Coal in U.S. Electricity Generation

Wind and Solar Surpass Coal in U.S. power generation, as EIA data cites falling LCOE, clean energy incentives, grid upgrades, and battery storage driving renewables growth, lower emissions, jobs, and less fossil fuel reliance.

 

Key Points

An EIA-noted milestone where U.S. renewables outproduce coal, driven by lower LCOE, policy credits, and grid upgrades.

✅ EIA data shows wind and solar exceed coal generation

✅ Falling LCOE boosts project viability across the grid

✅ Policies and storage advances strengthen reliability

 

In a landmark shift for the energy sector, wind and solar power have recently surpassed coal in electricity generation in the United States. This milestone, reported by Warp News, marks a significant turning point in the country’s energy landscape and underscores the growing dominance of renewable energy sources.

A Landmark Achievement

The achievement of wind and solar energy generating more electricity than coal is a landmark moment in the U.S. energy sector. Historically, coal has been a cornerstone of electricity production, providing a substantial portion of the nation's power needs. However, recent data reveals a transformative shift, with renewables surpassing coal for the first time in 130 years, as renewable energy sources, particularly wind and solar, have begun to outpace coal in terms of electricity generation.

The U.S. Energy Information Administration (EIA) reported that in recent months, wind and solar combined produced more electricity than coal, including a record 28% share in April, reflecting a broader trend towards cleaner energy sources. This development is driven by several factors, including advancements in renewable technology, decreasing costs, and a growing commitment to reducing greenhouse gas emissions.

Technological Advancements and Cost Reductions

One of the key drivers behind this shift is the rapid advancement in wind and solar technologies, as wind power surges in the U.S. electricity mix across regions. Improvements in turbine and panel efficiency have significantly increased the amount of electricity that can be generated from these sources. Additionally, technological innovations have led to lower production costs, making wind and solar energy more competitive with traditional fossil fuels.

The cost of solar panels and wind turbines has decreased dramatically over the past decade, making renewable energy projects more economically viable. According to Warp News, the levelized cost of electricity (LCOE) from solar and wind has fallen to levels that are now comparable to or lower than coal-fired power. This trend has been pivotal in accelerating the transition to renewable energy sources.

Policy Support and Investment

Government policies and incentives have also played a crucial role in supporting the growth of wind and solar energy, with wind now the most-used renewable electricity source in the U.S. helping drive deployment. Federal and state-level initiatives, such as tax credits, subsidies, and renewable energy mandates, have encouraged investment in clean energy technologies. These policies have provided the financial and regulatory support necessary for the expansion of renewable energy infrastructure.

The Biden administration’s focus on addressing climate change and promoting clean energy has further bolstered the transition. The Infrastructure Investment and Jobs Act and the Inflation Reduction Act, among other legislative efforts, have allocated significant funding for renewable energy projects, grid modernization, and research into advanced technologies.

Environmental and Economic Implications

The surpassing of coal by wind and solar energy has significant environmental and economic implications, building on the milestone when renewables became the second-most prevalent U.S. electricity source in 2020 and set the stage for further gains. Environmentally, it represents a major step forward in reducing carbon emissions and mitigating climate change. Coal-fired power plants are among the largest sources of greenhouse gases, and transitioning to cleaner energy sources is essential for meeting climate targets and improving air quality.

Economically, the shift towards wind and solar energy is creating new opportunities and industries. The growth of the renewable energy sector is generating jobs in manufacturing, installation, and maintenance. Additionally, the decreased reliance on imported fossil fuels enhances energy security and stabilizes energy prices.

Challenges and Future Outlook

Despite the progress, there are still challenges to address. The intermittency of wind and solar power requires advancements in energy storage and grid management to ensure a reliable electricity supply. Investments in battery storage technologies and smart grid infrastructure are crucial for overcoming these challenges and integrating higher shares of renewable energy into the grid.

Looking ahead, the trend towards renewable energy is expected to continue, with renewables projected to soon provide about one-fourth of U.S. electricity as deployment accelerates, driven by ongoing technological advancements, supportive policies, and a growing commitment to sustainability. As wind and solar power become increasingly cost-competitive and efficient, their role in the U.S. energy mix will likely expand, further displacing coal and other fossil fuels.

Conclusion

The surpassing of coal by wind and solar energy in U.S. electricity generation is a significant milestone in the transition to a cleaner, more sustainable energy future. This achievement highlights the growing importance of renewable energy sources and the success of technological advancements and supportive policies in driving this transition. As the U.S. continues to invest in and develop renewable energy infrastructure, the move away from coal represents a crucial step towards achieving environmental goals and fostering economic growth in the clean energy sector.

 

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In North Carolina, unpaid electric and water bills are driving families and cities to the financial brink

North Carolina Utility Arrears Crisis strains households and municipal budgets as COVID-19 cuts jobs; unpaid utility bills mount, shutoffs loom, and emergency aid, unemployment benefits, and CARES Act relief lag behind rising arrears across cities.

 

Key Points

A COVID-19 driven spike in unpaid utility bills, threatening households and municipal budgets as federal aid lapses.

✅ 1 million families behind on power, water, sewage bills

✅ $218M arrears accrued April to June, double last year

✅ Municipal utilities face shutoffs, budget shortfalls

 

As many as 1 million families in North Carolina have fallen behind on their electric, water and sewage bills, a sign of energy insecurity threatening residents and their cities with severe financial hardship unless federal lawmakers act to approve more emergency aid.

The trouble stems from the widespread economic havoc wrought by the coronavirus, which has left millions of workers out of a job and struggling to cover their monthly costs as some states moved to suspend utility shut-offs to provide relief. Together, they’ve been late or missed a total of $218 million in utility payments between April 1 and the end of June, according to data released recently by the state, nearly double the amount in arrears at this time last year.

In some cases, cities that own or operate their own utilities have been forced to absorb these losses, as some utilities reconnected customers to prevent harm, creating a dire situation in which the government’s attempt to save people from the financial brink instead has pushed municipal coffers to their own breaking point.

In Elizabeth City, N.C., for example, about 2,500 residents haven’t paid their electric bills on time, according to Richard Olson, the city manager. The late payments at one point proved so problematic that Olson said he calculated Elizabeth City wouldn’t have enough money to pay for its expenses in July. In response, city leaders requested and obtained a waiver from a statewide order, similar to New York’s disconnection moratorium, issued in March, that protects people from being penalized for their past-due utility bills.

The predicament has presented unique budget challenges throughout North Carolina, while illustrating the consequences of a cash crunch plaguing the entire country, where proposals such as a Texas electricity market bailout surfaced following severe grid stress. State and federal leaders have extended a range of coronavirus relief programs since March to try to help people through the pandemic. But the money is limited and restricted — and it’s not clear whether more help from Congress is on the way — creating a crisis in which the nation’s economic woes are outpacing some of the aid programs adopted to combat them.

“We are entering a phase where the utilities [may] be able to shut off power, but what was propping up people’s economic lives, the unemployment benefits and Cares Act support, won’t be there,” said Paul Meyer, the executive director of the North Carolina League of Municipalities.

White House, GOP in disarray over coronavirus spending plan as deadline nears on expiring emergency aid

The future of that safety-net support — and other federal aid — hangs in the balance as lawmakers returned to work this week in their final sprint ahead of the August recess. The White House and congressional leaders are split over the contours of the next coronavirus relief package, including the need to extend more aid to cities and states as some utilities have waived fees to help customers, and reauthorize an extra $600 in weekly unemployment payments that were approved as part of the Cares Act in March.

Outside Washington, workers, businesses and government officials nationwide have pleaded with federal lawmakers to renew or expand those programs. Last week, Roy Cooper, the Democratic governor of North Carolina, urged Congress to act swiftly and adopt a wide array of new federal spending, including proposals for DOE nuclear cleanup funding, stressing in a letter that the “actions you take in the next few weeks are vital to our ability to emerge from this crisis. ”

 

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Alberta's Path to Clean Electricity

Alberta Clean Electricity Regulations face federal mandates and provincial autonomy, balancing greenhouse gas cuts, net-zero 2050 goals, and renewable energy adoption across wind, solar, and hydro, while protecting jobs and economic stability in energy communities.

 

Key Points

Rules to cut power emissions, boost renewables, and align Alberta with federal net-zero goals under federal mandates.

✅ Phases out coal and curbs greenhouse gas emissions

✅ Expands wind, solar, and hydro to diversify the grid

✅ Balances provincial autonomy with national climate targets

 

In a recent development, Alberta finds itself at a crossroads between provincial autonomy and federal mandates concerning federal clean electricity regulations that shape long-term planning. The province, known for its significant oil and gas industry, faces increasing pressure to align its energy policies with federal climate goals set by Ottawa.

The federal government, under the leadership of Environment Minister Steven Guilbeault, has proposed regulations aimed at reducing greenhouse gas emissions and transitioning towards a cleaner energy future that prioritizes clean grids and batteries across provinces. These regulations are part of Canada's broader commitment to combat climate change and achieve net-zero emissions by 2050.

The Federal Perspective

From Ottawa's standpoint, stringent regulations on Alberta's electricity sector are necessary to meet national climate targets. This includes measures to phase out coal-fired power plants and increase reliance on renewable energy sources such as wind, solar, and hydroelectric power. Minister Guilbeault emphasizes the importance of these regulations in mitigating Canada's carbon footprint and fostering sustainable development.

Alberta's Response

In contrast, Alberta has historically championed provincial autonomy in energy policy, leveraging its vast fossil fuel resources to drive economic growth. The province remains cautious about federal interventions that could potentially disrupt its energy sector, a cornerstone of its economy, especially amid changes to how electricity is produced and paid for now under discussion.

Premier Jason Kenney has expressed concerns over federal overreach, and his influence over electricity policy has shaped proposals in the legislature. He emphasizes the province's efforts in adopting cleaner technologies while balancing economic stability and environmental sustainability.

The Balancing Act

The challenge lies in finding a middle ground between federal imperatives and provincial priorities, as interprovincial disputes like B.C.'s export-restriction challenge complicate coordination. Alberta acknowledges the need to diversify its energy portfolio and reduce emissions but insists on preserving its jurisdiction over energy policy. The province has already made strides in renewable energy development, including investing in wind and solar projects alongside traditional energy sources.

Economic Implications

For Alberta, the transition to cleaner electricity carries significant economic implications as the electricity market heads for a reshuffle in the coming years. It entails navigating the complexities of energy transition, ensuring job retention, and fostering innovation in sustainable technologies. Critics argue that abrupt federal regulations could exacerbate economic hardships, particularly in communities reliant on the fossil fuel industry.

Moving Forward

As discussions continue between Alberta and Ottawa, finding common ground, including consideration of recent market change proposals from the province, remains essential. Collaborative efforts are necessary to develop tailored solutions that accommodate both environmental responsibilities and economic realities. This includes exploring incentives for renewable energy investment, supporting energy sector workers in transitioning to new industries, and leveraging Alberta's expertise in energy innovation.

Conclusion

Alberta's journey towards clean electricity regulation exemplifies the delicate balance between regional autonomy and federal oversight in Canada's complex federal system. While tensions persist between provincial and federal priorities, both levels of government share a common commitment to addressing climate change and advancing sustainable energy solutions.

The outcome of these negotiations will not only shape Alberta's energy landscape but also influence Canada's overall progress towards a greener future. Finding equitable solutions that respect provincial autonomy while achieving national environmental goals remains paramount in navigating this evolving policy landscape.

 

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Pennsylvania Home to the First 100% Solar, Marriott-Branded U.S. Hotel

Courtyard by Marriott Lancaster Solar Array delivers 100% renewable electricity via photovoltaic panels at Greenfield Corporate Center, Pennsylvania, a High Hotels and Marriott sustainability initiative reducing grid demand and selling excess power for efficient operations.

 

Key Points

A $1.5M PV installation powering the 133-room hotel with 100% renewable electricity in Greenfield Center, Lancaster.

✅ 2,700 PV panels generate 1,239,000 kWh annually

✅ First Marriott in the US with 100% solar electricity

✅ $504,900 CFA grant; excess power sold to the utility

 

High Hotels Ltd., a hotel developer and operator, recently announced it is installing a $1.5 million solar array that will generate 100% of the electrical power required to operate one of its existing hotels in Greenfield Corporate Center. The completed installation will make the 133-room Courtyard by Marriott-Lancaster the first Marriott-branded hotel in the United States with 100% of its electricity needs generated from solar power. It is also believed to be the first solar array in the country installed for the sole purpose of generating 100% of the electricity needs of a hotel, mirroring how other firms are commissioning their first solar power plant to meet sustainability goals.

“This is an exciting approach to addressing our energy needs that aligns very well with High’s commitment to environmental stewardship,”

“We’ve been advancing many environmentally responsible practices across our hotel portfolio, including converting the interior and exterior lighting at the Lancaster Courtyard to LED, which will lower electricity demand by 15%,” said Russ Urban, president of High Hotels. “Installing solar is another important step in this progression, and we will look to apply lessons from this as we expand our portfolio of premium select-service hotels.”

The Lancaster-based hotel developer, owner and operator is working in partnership with Marriott International Inc. to realize this vision, in step with major brands announcing new clean energy projects across their portfolios.

The installation of more than 2,700 ballasted photovoltaic panels will fill an area more than two football fields in size. After evaluating several on-site and near-site alternatives, High Hotels decided to install the solar array on the roof of a nearby building in Greenfield Corporate Center. Using the existing roof saves more than three acres of open land and has additional aesthetic benefits, aligning with recommendations for solar farms under consideration by local planners. The solar array will produce 1,239,000 kWh of power for the hotel, which consumes 1,177,000 kWh. Any excess power will be sold to the utility, though affordable solar batteries are making on-site storage increasingly feasible.

High Hotels received a grant of $504,900 from the Commonwealth Financing Authority (CFA) through the Solar Energy Program to complete the project. An independent agency of the Department of Community and Economic Development (DCED), the CFA is responsible for evaluating projects and awarding funds for a variety of economic development programs, including the Solar Energy Program and statewide initiatives like solar-power subscriptions that broaden access. The project will receive a solar renewable energy credit which will be conveyed to the CFA to provide the agency with more funds to offer grants in the future.

“This is a cutting-edge project that is exactly the kind we are looking for to promote the generation and use of solar energy,” said DCED Secretary Dennis Davin. “I am very pleased that the first Marriott in the US to receive 100% of its electric needs through renewable solar energy is located right here in Central Pennsylvania.” Secretary Davin also serves as chairman of the CFA’s board.

Panels for the solar array will be Q Cells manufactured by Hanwha Cells Co., Ltd., headquartered in Seoul, South Korea. Ephrata, Pa.-based Meadow Valley Electric Inc. will install the array in the second and third quarters of 2018 with commissioning targeted for September 2018.

 

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More Polar Vortex 2021 Fallout (and Texas Two-Step): Monitor For ERCOT Identifies Improper Payments For Ancillary Services

ERCOT Ancillary Services Clawback and VOLL Pricing summarize PUCT and IMM actions on load shed, real-time pricing adders, clawbacks, and settlement corrections after the 2021 winter storm in the Texas power grid market.

 

Key Points

Policies addressing clawbacks for unprovided AS and correcting VOLL-based price adders after load shed ended in ERCOT.

✅ PUCT ordered clawbacks for ancillary services not delivered.

✅ IMM urged price correction after firm load shed ceased.

✅ ERCOT's VOLL adder raised costs by $16B during 32 hours.

 

Potomac Economics, the Independent Market Monitor (IMM) for the Electric Reliability Council of Texas (ERCOT), filed a report with the Public Utility Commission of Texas (PUCT) that certain payments were made by ERCOT for Ancillary Services (AS) that were not provided, even as ERCOT later issued a winter reliability RFP to procure capacity during subsequent seasons.

According to the IMM (emphasis added):

There were a number of instances during the operating days outlined above in which AS was not provided in real time because of forced outages or derations. For market participants that are not able to meet their AS responsibility, typically the ERCOT operator marks the short amount in the software. This causes the AS responsibility to be effectively removed and the day-ahead AS payment to be clawed back in settlement. However, the ERCOT operators did not complete this task during the winter event, echoing issues like the Ontario IESO phantom demand that cost customers millions, and therefore the "failure to provide" settlements were not invoked in real time.

Removing the operator intervention step and automating the "failure to provide" settlement was contemplated in NPRR947: Clarification to Ancillary Service Supply Responsibility Definition and Improvements to Determining and Charging for Ancillary Service Failed Quantities; however, the NPRR was withdrawn in August 2020 amid ongoing market reform discussions because of the system cost, some complexities related to AS trades, and the implementation of real-time co-optimization.

Invoking the "failure to provide" settlement for all AS that market participants failed to provide during the operating days outlined above will produce market outcomes and settlements consistent with underlying market principles. In this case, the principle is that market participants should not be paid for services that they do not provide, even as a separate ruling found power plants exempt from providing electricity in emergencies under Texas law, underscoring the distinction between obligations and settlements. Whether ERCOT marked the short amount in real-time or not should not affect the settlement of these ancillary services.

On March 3, 2021, the PUCT ordered (a related press release is here) that:

ERCOT shall claw back all payments for ancillary service that were made to an entity that did not provide its required ancillary service during real time on ERCOT operating days starting February 14, 2021 and ending on February 19,2021.

On March 4, 2021, the IMM filed another report and recommended that:

the [PUCT] direct ERCOT to correct the real-time prices from 0:00 February 18,2021, to 09:00 February 19, 2021, to remove the inappropriate pricing intervention that occurred during that time period.

The IMM approvingly noted the PUCT's February 15, 2021 order, which mandated that real-time energy prices reflect firm load shed by setting prices at the value of lost load (VOLL).1

According to the IMM (emphasis added):

This is essential in an energy-only market, like ERCOT's, where the Texas power grid faces recurring crisis risks, because it provides efficient economic signals to increase the electric generation needed to restore the load and service it reliably over the long term.

Conversely, it is equally important that prices not reflect VOLL when the system is not in shortage and load is being served, and experiences in capacity markets show auction payouts can fall sharply under different conditions. The Commission recognized this principle in its Order, expressly stating it is only ERCOT's out-of-market shedding firm load that is required to be reflected in prices. Unfortunately, ERCOT exceeded the mandate of the Commission by continuing to set process at VOLL long after it ceased the firm load shed.

ERCOT recalled the last of the firm load shed instructions at 23:55 on February 17, 2021. Therefore, in order to comply with the Commission Order, the pricing intervention that raised prices to VOLL should have ended immediately at that time. However, ERCOT continued to hold prices at VOLL by inflating the Real-Time On-Line Reliability Deployment Price Adder for an additional 32 hours through the morning of February 19. This decision resulted in $16 billion in additional costs to ERCOT's market, prompting legislative bailout proposals in Austin, of which roughly $1.5 billion was uplifted to load-serving entities to provide make-whole payments to generators for energy that was not needed or produced.

However, at its March 5, 2021, open meeting (related discussion begins around minute 20), although the PUCT acknowledged the "good points" raised by the IMM, the PUCT was not willing to retrospectively adjust its real-time pricing for this period out of concerns that some related transactions (ICE futures and others) may have already settled and for unintended consequences of such retroactive adjustments.  

 

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