NRC seeks input on new nuclear design

Montana New Energy Economy integrates grid modernization, renewable energy, storage, and demand response to cut costs, create jobs, enable electric transportation, and reduce emissions through utility-scale efficiency, real-time markets, and distributed resources.

Key Points

Plan to modernize Montana's grid with renewables, storage and efficiency to lower costs, cut emissions and add jobs.

✅ Grid modernization enables real-time markets and demand response

✅ Utility-scale renewables paired with storage deliver firm power

✅ Efficiency and DERs cut peaks, costs, and pollution

Over the next decade, Montana ratepayers will likely invest over a billion dollars into what is now being called the new energy economy.

Not since Edison electrified a New York City neighborhood in 1882 have we had such an opportunity to rethink the way we commercially produce and consume electric energy.

Looking ahead, the modernization of Edison’s grid will lower the consumer costs, creating many thousands of permanent, well-paying jobs. It will prepare the grid for significant new loads like America going electric in transportation, and in doing so it will reduce a major source of air pollution known to directly threaten the core health of Montana and the planet.

Energy innovation makes our choices almost unrecognizable from the 1980s, when Montana last built a large, central-station power plant. Our future power plants will be smaller and more modular, efficient and less polluting — with some technologies approaching zero operating emissions.

The 21st Century grid will optimize how the supply and demand of electricity is managed across larger interconnected service areas. Utilities will interact more directly with their consumers, with utility trends guiding a new focus on providing a portfolio of energy services versus simply spinning an electric meter. Investments in utility-scale energy efficiency — LED streetlights, internet-connected thermostats, and tightening of commercial building envelopes among many — will allow consumers to directly save on their monthly bills, to improve their quality of life, and to help utilities reduce expensive and excessive peaks in demand.

The New Energy Economy will be built not of one single technology, but of many — distributed over a modernized grid across the West that approaches a real-time energy market, as provinces pursue market overhauls to adapt — connecting consumers, increasing competition, reducing cost and improving reliability.

Boldly leading the charge is a new and proven class of commercial generation powered by wind and solar energy, the latter of which employs advanced solid-state electronics, free fuel and no emissions or moving parts. Montana is blessed with wind and solar energy resources, so this is a Made-in-Montana energy choice. Note that these plants are typically paired with utility-scale energy storage investments — also an essential building block of the 21st century grid — to deliver firm, on-demand electric service.

Once considered new age and trendy, these production technologies are today competent and shovel-ready. Their adoption will build domestic energy independence. And, they are aggressively cost-competitive. For example, this year the company ISO New England — operator of a six-state grid covering all of New England — released an all-source bid for new production capacity. Unexpectedly, 100% of the winning bids were large solar electric power and storage projects, as coal and nuclear disruptions continue to shape markets. For the first time, no applications for fossil-fueled generation cleared auction.

By avoiding the burning of traditional fuels, the new energy technologies promise to offset and eventually eliminate the current 1,500 million metric tons of damaging greenhouse gases — one-quarter of the nation’s total — that are annually injected into the atmosphere by our nation’s current electric generation plants. The first step to solving the toughest and most expensive environmental issues of our day — be they costly wildfires or the regional drought that threatens Montana agriculture and outdoor recreation — is a thoughtful state energy policy, built around the new energy economy, that avoids pitfalls like the Wyoming clean energy bill now proposed.

Important potential investments not currently ready for prime time are also on the horizon, including small and highly efficient nuclear innovation in power plants — called small modular reactors (SMR) — designed to produce around-the-clock electric power with zero toxic emissions.

The nation’s first demonstration SMR plant is scheduled to be built sometime late this decade. Fingers are crossed for a good outcome. But until then, experts agree that big questions on the future commercial viability of nuclear remain unanswered: What will be SMR’s cost of electricity? Will it compete? Where will we source the refined fuel (most uranium is imported), and what will be the plan for its safe, permanent disposal?

So, what is Montana’s path forward? The short answer is: Hopefully, all of the above.

Key to Montana’s future investment success will be a respectful state planning process that learns from Texas grid improvements to bolster reliability.

Montanans deserve a smart and civil and bipartisan conversation to shape our new energy economy. There will be no need, nor place, for parties that barnstorm the state about "radical agendas" and partisan name calling – that just poisons the conversation, eliminates creative exchange and pulls us off task.

The task is to identify and vet good choices. It’s about permanently lowering energy costs to consumers. It’s about being business smart and business friendly. It’s about honoring the transition needs of our legacy energy communities. And, it’s about stewarding our world-class environment in earnest. That’s the job ahead.

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Clean Electricity Standard (CES) sets utility emissions targets, uses tradable credits, and advances decarbonization via technology-agnostic benchmarks, carbon capture, renewable portfolio standards, upstream methane accounting, and cap-and-trade alternatives in reconciliation policy.

Key Points

CES sets utility emissions targets using tradable credits and benchmarks to drive power-sector decarbonization.

✅ Annual clean energy targets phased to 2050

✅ Tradable credits for compliance across utilities

✅ Includes upstream methane and lifecycle emissions

The Biden Administration and Democratic members of Congress have supported including a clean electricity standard (CES) in the upcoming reconciliation bill. A CES is an alternative to pricing carbon dioxide through a tax or cap-and-trade program and focuses on reducing greenhouse gas emissions produced during electricity generation by establishing targets, while early assessments show mixed results so far. In principle, it is a technology-agnostic approach. In practice, however, it pushes particular technologies out of the market.

The details of the CES are still being developed, but recent legislation may provide insight into how the CES could operate. In May, Senator Tina Smith and Representative Ben Ray Luján introduced the Clean Energy Standard Act of 2019 (CESA), while Minnesota's 100% carbon-free mandate offers a state-level parallel, and in January 2020, the House Energy and Commerce Committee released a discussion draft of the Climate Leadership and Environmental Action for our Nation’s (CLEAN) Future Act. Both bills increase the clean energy target annually until 2050 in order to phase out emissions. Both bills also create a credit system where clean sources of electricity as determined by a benchmark, carbon dioxide emitted per kilowatt-hour, receive credits. These credits may be transferred, sold, and auctioned so utilities that fail to meet targets can procure credits from others, as large energy customers push to accelerate clean energy globally.

The bills’ benchmarks vary, and while the CLEAN Future Act allows natural gas-fired generators to receive partial credits, CESA does not. Under both bills, these generators would be expected to install carbon capture technology to continue meeting increasing targets for clean electricity generation. Both bills go beyond considering the emissions resulting from generation and include upstream emissions for natural gas-fired generators. Natural gas, a greenhouse gas, that is leaked upstream of a generator during transportation is to be included among its emissions. The CLEAN Future Act also calls for newly constructed hydropower generators to account for the emissions associated with the facility’s construction despite producing clean electricity. These additional provisions demonstrate not only the CES’s inability to fully address the issue of emissions but also the slippery slope of expanding the program to include other markets, echoing cost and reliability concerns as California exports its energy policies across the West.

A majority of states have adopted clean energy, electricity, or renewable portfolio standards, with some considering revamping electricity rates to clean the grid, leaving legislators with plenty of examples to consider. As they weigh their options, legislators should consider if they are effectively addressing the problem at hand, economy-wide emissions reductions, and at what cost, drawing on examples like New Mexico's 100% clean electricity bill to inform trade-offs.

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U.S. Energy Transition Delays stem from grid bottlenecks, permitting red tape, solar tariff uncertainty, supply-chain shocks, and scarce affordable EVs, risking deeper fossil fuel lock-in despite climate targets for renewables, transmission expansion, and decarbonization.

Key Points

Delays driven by grid limits, permitting, and supply shocks that slow renewables, transmission, EVs, and decarbonization.

✅ Grid interconnection and transmission backlogs stall renewables

✅ Tariff probes and supply chains disrupt utility-scale solar

✅ Permitting, policy gaps, and EV costs sustain fossil fuel use

Big solar projects are facing major delays. Plans to adapt the grid to clean energy are confronting mountains of red tape. Affordable electric vehicles are in short supply.

The United States is struggling to squeeze opportunity out of an energy crisis that should have been a catalyst for cleaner, domestically produced power. After decades of putting the climate on the back burner, the country is finding itself unprepared to seize the moment and at risk of emerging from the crisis even more reliant on fossil fuels.

10 steps you can take to lower your carbon footprint
The problem is not entirely unique to the United States. Across the globe, climate leaders are warning that energy shortages including coal and nuclear disruptions prompted by Russia’s unprovoked invasion of Ukraine and high gas prices driven by inflation threaten to make the energy transition an afterthought — potentially thwarting efforts to keep global temperature rise under 1.5 degrees Celsius.

“The energy crisis exacerbated by the war in Ukraine has seen a perilous doubling down on fossil fuels by the major economies,” U.N. Secretary General António Guterres said at a conference in Vienna on Tuesday, according to prepared remarks. He warned governments and investors that a failure to immediately and more aggressively embrace clean energy could be disastrous for the planet.

U.S. climate envoy John F. Kerry suggested that nations are falling prey to a flawed logic that fossil fuels will help them weather this period of instability, undermining U.S. national security and climate goals, which has seen gas prices climb to a record-high national average of $5 per gallon. “You have this new revisionism suggesting that we have to be pumping oil like crazy, and we have to be moving into long-term [fossil fuel] infrastructure building,” he said at the Time100 Summit in New York this month. “We have to push back.”

Climate envoy John F. Kerry attends the Summit of the Americas in Los Angeles on June 8. Kerry has criticized the tendency to turn toward fossil fuels in times of uncertainty. (Apu Gomes/AFP/Getty Images)
In the United States — the world’s second-largest emitter of greenhouse gases after China — the hurdles go beyond the supply-chain crisis and sanctions linked to the war in Ukraine. The country’s lofty goals for all carbon pollution to be gone from the electricity sector by 2035 and for half the cars sold to be electric by 2030 are jeopardized by years of neglect of the electrical grid, regulatory hurdles that have set projects back years, and failures by Congress and policymakers to plan ahead.
The challenges are further compounded by plans to build costly new infrastructure for drilling and exporting natural gas that will make it even harder to transition away from the fossil fuel.

“We are running into structural challenges preventing consumers and businesses from going cleaner, even at this time of high oil and gas prices,” said Paul Bledsoe, a climate adviser in the Clinton administration who now works on strategy at the Progressive Policy Institute, a center-left think tank. “It is a little alarming that even now, Congress is barely talking about clean energy.”

Consumers are eager for more wind and solar. Companies looking to go carbon-neutral are facing growing waitlists for access to green energy, and a Pew Research Center poll in late January found that two-thirds of Americans want the United States to prioritize alternative energy over fossil fuel production.

But lawmakers have balked for more than a decade at making most of the fundamental economic and policy changes such as a clean electricity standard that experts widely agree are crucial to an orderly and accelerated energy transition. The United States does not have a tax on carbon, nor a national cap-and-trade program that would reorient markets toward lowering emissions. The unraveling in Congress of President Biden’s $1.75 trillion Build Back Better plan has added to the head winds that green-energy developers face, even as climate law results remain mixed.

Vice President Harris tours electric school buses at Meridian High School in Falls Church, Va., on May 20. (Mandel Ngan/AFP/Getty Images)
“There is literally nothing pushing this forward in the U.S. beyond the tax code and some state laws,” said Heather Zichal, a former White House climate adviser who is now the chief executive of the American Clean Power Association.

The effects of the U.S. government’s halting approach are being felt by solar-panel installers, who saw the number of projects in the most recent quarter fall to the lowest level since the pandemic began. There was 24 percent less solar installed in the first quarter of 2022 than in the same quarter of 2021.

The holdup largely stems from a Commerce Department investigation into alleged tariff-dodging by Chinese manufacturers. Faced with the potential for steep retroactive penalties, hundreds of industrial-scale solar projects were frozen in early April. Weak federal policies to encourage investment in solar manufacturing left American companies ill-equipped to fill the void.

“We shut down multiple projects and had to lay off dozens of people,” said George Hershman, chief executive of SOLV Energy, which specializes in large solar installations. SOLV, like dozens of other solar companies, is now scrambling to reassemble those projects after the administration announced a pause of the tariffs.

Meanwhile, adding clean electricity to the aging power grid has become an increasingly complicated undertaking, given the failure to plan for adequate transmission lines and long delays connecting viable wind and solar projects to the electricity network.

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Siwash Creek Hydroelectric Project faces downsizing under a BC Hydro power purchase agreement, with run-of-river generation, high grid interconnection costs, First Nations partnership, and surplus electricity from Site C reshaping clean energy procurement.

Key Points

A downsized run-of-river plant in BC, co-owned by Kanaka Bar and Green Valley, selling power via a BC Hydro PPA.

✅ Approved at 500 kW under a BC Hydro clean-energy program

✅ Grid interconnection initially quoted at $2.1M

✅ Joint venture: Kanaka Bar and Green Valley Power

A small run-of-river hydroelectric project recently selected by B.C. Hydro for a power purchase agreement may no longer be financially viable.

The Siwash Creek project was originally conceived as a two-megawatt power plant by the original proponent Chad Peterson, who holds a 50-per-cent stake through Green Valley Power, with the Kanaka Bar Indian Band holding the other half.

The partners were asked by B.C. Hydro to trim the capacity back to one megawatt, but by the time the Crown corporation announced its approval, it agreed to only half that — 500 kilowatts — under its Standing Order clean-energy program.

“Hydro wanted to charge us $2.1 million to connect to the grid, but then they said they could reduce it if we took a little trim on the project,” said Kanaka Bar Chief Patrick Michell.

The revenue stream for the band and Green Valley Power has been halved to about $250,000 a year. The original cost of running the $3.7-million plant, including financing, was projected to be $273,000 a year, according to the Kanaka Bar economic development plan.

“By our initial forecast, we will have to subsidize the loan for 20 years,” said Michell. “It doesn’t make any sense.”

The Kanaka Band has already invested $450,000 in feasibility, hydrology and engineering studies, with a similar investment from Green Valley.

B.C. Hydro announced it would pursue five purchase agreements last March with five First Nations projects — including Siwash Creek — including hydro, solar and wind energy projects, as two new generating stations were being commissioned at the time. A purchase agreement allows proponents to sell electricity to B.C. Hydro at a set price.

However, at least ten other “shovel-ready” clean energy projects may be doomed while B.C. Hydro completes a review of its own operations and its place in the energy sector, where legal outcomes like the Squamish power project ruling add uncertainty, including B.C.’s future power needs.

With the 1,100-megawatt Site C Dam planned for completion in 2024, and LNG demand cited to justify it, B.C. Hydro now projects it will have a surplus of electricity until the early 2030s.

Even if British Columbians put 300,000 electric vehicles on the road over the next 12 years, amid BC Hydro’s first call for power, they will require only 300 megawatts of new capacity, the company said.

A long-term surplus could effectively halt all small-scale clean energy development, according to Clean Energy B.C., even as Hydro One’s U.S. coal plant remains online in the region.

“(B.C. Hydro) dropped their offer down to 500 kilowatts right around the time they announced their review,” said Michell. “So we filled out the paperwork at 500 kilowatts and (B.C. Hydro) got to make its announcement of five projects.”

In the new few weeks, Kanaka and Green Valley will discuss whether they can move forward with a new financial model or shelve the project, he said.

B.C. Hydro declined to comment on the rationale for downsizing Siwash Creek’s power purchase agreement.

The Kanaka Bar Band successfully operates a 49.9-megawatt run-of-river plant on Kwoiek Creek with partners Innergex Renewable Energy.

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German Energy Price Brakes harness price signals in a market-based policy, cutting gas consumption, preserving industrial output, and supporting CO2 reduction, showcasing Germany's resilience and adaptation while protecting households and businesses across Europe.

Key Points

Fixed-amount subsidies preserving price signals to curb gas use, shield consumers, and sustain industrial output.

✅ Maintains incentives via market-based price signals

✅ Cuts gas consumption without distorting EU markets

✅ Protects households and industry while curbing CO2

German industry and society are once again proving much more resilient and adaptable than certain people feared. Horror scenarios of a dangerous energy rationing or a massive slump in our economy have often been bandied about. But we are nowhere near that. With a challenging year just behind us, this is good news — not only for Germany, but also for Europe, where France-Germany energy cooperation has strengthened solidarity.

Companies and households reacted swiftly to the sharp increases in energy prices, in line with momentum in the global energy transition seen across markets. They installed more efficient heating or production facilities, switched to alternatives and imported intermediate products. The results are encouraging: German households and businesses have reduced gas consumption significantly, despite recent cold weather. From the start of the war in Ukraine to mid-December industrial gas consumption in Germany was (temperature-adjusted) around 20 per cent lower than the average level for the preceding three years. Even if some firms have cut back production, especially in energy-intensive sectors, industrial output as a whole has only fallen by about 1 per cent since the start of 2022. Added to this, in a survey released by the Ifo institute in November, over a third of German companies saw the potential to reduce gas consumption further without endangering output.

Instead of imposing excessive laws and regulations, we have relied on price signals and the prudence of market participants to create the right incentives and reduce gas consumption, as falling costs like record-low solar power prices continue to reinforce those signals across sectors.

We will follow this approach in coming months, when energy savings will remain important, even as the EU electricity outlook anticipates sharply higher demand by 2050. Our latest relief measures will not distort price signals. To this end, the Bundestag approved gas and electricity price brakes in its final session in 2022. They are designed to function without any intervention in markets or prices. This system will pay out a fixed amount relative to previous years’ consumption and the current difference to a reference price — regardless of current consumption.

Energy price brakes are the main component of Germany’s “protective shield”, which makes up to €200bn available for measures in 2022 to 2024. Seen in relation to the German economy’s size, its past heavy reliance on Russian energy imports and the fact that the measures will expire in 2024, these are balanced and expedient mechanisms. In contrast to instruments used in other countries, our new arrangements will not affect the price formation process driven by supply and demand, or on incentives to save gas. Companies and households will continue to save the full market price when they reduce consumption by a unit of gas or electricity. In this way, the price brakes also avoid the creation of additional demand for gas at the expense of consumers in other European countries, even as Europe’s Big Oil turning electric signals broader structural shifts in energy markets. No one need fear that competition will be distorted or that gas will be bought up. Indeed, a recent IMF working paper on cushioning the impact of high energy prices on households explicitly praises the German energy price brakes.

Current developments confirm the effectiveness of a market-based approach — and show that we should also rely on price signals when it comes to reducing CO₂ emissions, as suggested by IEA CO2 trends in recent years. Last year, households and companies had only a few weeks to adapt, yet we have already seen a strong response. The effect of CO₂ prices can be even stronger, as adaptation is possible over a much longer time and they additionally affect expectations and long-term decisions. Regulatory interventions and subsidy schemes, even if well targeted, cannot compete with market co-ordination and incentives that support individual decision-making and promote innovation.

Europe and Germany can weather this crisis without a collapse in industrial production. We also have an opportunity to deal efficiently with the move to climate neutrality, aligned with Germany’s hydrogen strategy for imported low-carbon fuels. In both cases, we should have confidence in price signals as well as in the power of people and business to innovate and adapt.

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India Power Sector Payment Crisis strains utilities with electricity theft, discom arrears, coal dues, and subsidy burdens, triggering outages, load-shedding, and tariff stress as record heatwave demand tests grid reliability, billing compliance, and infrastructure upgrades.

Key Points

Linked payment shortfalls, theft, and subsidies driving arrears, outages, and planning gaps across Indias power grid.

✅ Discom arrears surpass Rs 1 lakh crore, straining cash flow

✅ Coal India unpaid, fuel risk rises and tariffs face pressure

✅ Outages and load-shedding worsen amid heatwave demand spike

India is among the world leaders in losing money to electricity theft. The country’s power sector also has a peculiar pattern of entities selling without getting the money on time, or nothing at all, while Manitoba Hydro debt highlights similar strains elsewhere. Coal India is owed about Rs 12,300 crore by power generation companies, which themselves have not been paid over Rs 1 lakh crore by distribution companies. The figures of losses suffered by discoms are much higher, even as UK network profits have drawn criticism, underscoring divergent market outcomes. The circuit does get completed somehow, but the uneven transaction, which defies business sense, introduces a disruptive strand that limits the scope for any future planning. Regular and unannounced shutdowns become the norm as the power supply falls short of demand, which this time is expected to touch record highs of 215-220 gigawatts amid the scorching heatwave, and cases like deferred BC Hydro costs illustrate how financial pressures accumulate.

In debt-ridden Punjab, the power subsidy bill is over Rs 10,000 crore, a large portion of which serves farmers. The AAP government plans to provide free electricity up to 300 units for every household from July 1, even as power bill cuts in Thailand show alternative approaches to affordability. The generous giveaways cannot camouflage the state of affairs. Thirty-three government departments had outstanding electricity bills of Rs 62 crore as on March 31, the end of the last financial year. With arrears of Rs 22.48 crore, the biggest defaulter was the Water and Sanitation Department. According to the Punjab State Power Corporation Limited, around 40 police stations and posts have been found to be stealing power or failing to clear the bills, while utility impersonation scams target consumers elsewhere. Customary warnings have been issued of snapping supply if the dues are not paid, even as utility penalties for disconnection delays underscore enforcement challenges, but ‘public interest’ and ‘essential services’ will ensure that such an eventuality does not arise.

The substantial fine imposed on a dera stealing power in Tarn Taran, along with the registration of an FIR, is exemplary action that needs to be carried forward. Change is tough, but a new way of working begins with those in positions of power leading by example, be it fixing the payment mechanism, upgrading infrastructure with smart grid initiatives in mind, minimising the use of electricity or a gradual switch to alternative energy sources.

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