Natural gas-fired generation still needed: utility CEOs

By Platts


Protective Relay Training - Basic

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$699
Coupon Price:
$599
Reserve Your Seat Today
Natural gas-fired generation will play an important role in a carbon-constrained world because it is cleaner and more reliable than other fossil fuels, Sempra Energy Chairman and CEO Don Felsinger and other utility executives said.

California is moving aggressively to curb climate change, in part by ramping up renewable resources, but gas-fired plants will be needed to hedge green resources, Felsinger said at the Goldman Sachs 8th Annual Power & Utility Conference in New York.

Wisconsin Energy Chairman, President and CEO Gale Klappa echoed Felsinger's views. Given mounting legal challenges to coal-fired generation and the intermittent nature of renewable resources, Wisconsin Energy's "default" position is natural gas, Klappa said. At the same time, Klappa expressed concern about the rising cost of natural gas.

Klappa said he believes there is a "pretty significant move right now" to repeal his state's ban on new nuclear facilities. While Wisconsin is investing heavily in renewables, Klappa said he believes new nuclear power needs to be considered. He noted that 20% of the state's energy comes from nuclear plants.

Asked whether the nation's infrastructure is ready to support a boost in gas-fired generation, Felsinger said the US is "probably not ready as a country," but it has the most sophisticated natural gas infrastructure as any country in the world. It's "not enough but it's a start," he said.

Related News

California Welcomes 70 Volvo VNR Electric Trucks

Switch-On Project Electric Trucks accelerate California freight decarbonization, deploying Volvo VNR Electric rigs with high-capacity charging infrastructure, zero-emissions operations, and connected safety features to cut greenhouse gases and improve urban air quality.

 

Key Points

A California program deploying Volvo VNR Electric trucks and charging to decarbonize freight and improve air quality.

✅ 70 Volvo VNR Electric trucks for regional logistics

✅ Strategic high-capacity charging for heavy-duty fleets

✅ Lower TCO via fuel savings and reduced maintenance

 

In a significant step toward sustainable transportation, the Switch-On project is bringing 70 Volvo VNR Electric trucks to California. This initiative aims to bolster the state's efforts to reduce emissions and transition to greener logistics solutions. The arrival of these electric vehicles marks an important milestone in California's commitment to combating climate change and improving air quality.

The Switch-On Project: Overview and Goals

The Switch-On project is a collaborative effort designed to enhance electric truck adoption in California. It focuses on developing the necessary infrastructure and technology to support electric vehicles (EVs) in the freight and logistics sectors, building on recent nonprofit investments at California ports. The project not only seeks to increase the availability of electric trucks but also aims to demonstrate their effectiveness in real-world applications.

California has set ambitious goals for reducing greenhouse gas emissions, particularly from the transportation sector, which is one of the largest contributors to air pollution. By introducing electric trucks into freight operations, the state aims to significantly cut emissions, improve public health, and pave the way for a more sustainable future.

The Volvo VNR Electric Trucks

The Volvo VNR Electric trucks are specifically designed for regional distribution and urban transport, aligning with Volvo's broader electric lineup as the company expands offerings, making them ideal for the needs of California’s freight industry. With a range of approximately 250 miles on a single charge, these trucks can efficiently handle most regional routes. Equipped with advanced technology, including regenerative braking and connectivity features, the VNR Electric models enhance operational efficiency and safety.

These trucks not only provide a cleaner alternative to traditional diesel vehicles but also promise lower operational costs over time. With reduced fuel expenses and lower maintenance needs, and emerging vehicle-to-grid pilots that can create new value streams, businesses can benefit from significant savings while contributing to environmental sustainability.

Infrastructure Development

A crucial aspect of the Switch-On project is the development of charging infrastructure to support the new fleet of electric trucks. The project partners are working on installing high-capacity charging stations strategically located throughout California while addressing utility planning challenges that large fleets will pose to the power system. This infrastructure is essential to ensure that electric trucks can be charged efficiently, minimizing downtime and maximizing productivity.

The charging stations are designed to accommodate the specific needs of heavy-duty vehicles, and corridor models like BC's Electric Highway provide useful precedents for network design, allowing for rapid charging that aligns with operational schedules. This development not only supports the new fleet but also encourages other logistics companies to consider electric trucks as a viable option for their operations.

Benefits to California

The introduction of 70 Volvo VNR Electric trucks will have several positive impacts on California. Firstly, it will significantly reduce greenhouse gas emissions from the freight sector, contributing to the state’s ambitious climate goals even as grid expansion will be needed to support widespread electrification across sectors. The transition to electric trucks is expected to improve air quality, particularly in urban areas that struggle with high pollution levels.

Moreover, the project serves as a model for other regions considering similar initiatives. By showcasing the practicality and benefits of electric trucks, California hopes to inspire widespread adoption across the nation. As the market for electric vehicles continues to grow, this project can play a pivotal role in accelerating the transition to sustainable transportation solutions.

Industry and Community Reactions

The arrival of the Volvo VNR Electric trucks has been met with enthusiasm from both industry stakeholders and community members. Logistics companies are excited about the opportunity to reduce their carbon footprints and operational costs. Meanwhile, environmental advocates applaud the project as a crucial step toward cleaner air and healthier communities.

California’s commitment to sustainable transportation has positioned it as a leader in the shift to electric vehicles amid an ongoing biofuels vs. EVs debate over the best path forward, setting an example for other states and countries.

Conclusion

The Switch-On project represents a major advancement in California's efforts to transition to electric transportation. With the deployment of 70 Volvo VNR Electric trucks, the state is not only taking a significant step toward reducing emissions but also demonstrating the feasibility of electric logistics solutions.

As infrastructure develops and more electric trucks hit the roads, California is paving the way for a greener, more sustainable future in transportation. The success of this project could have far-reaching implications, influencing policies and practices in the broader freight industry and beyond.

 

Related News

View more

Electricity demand set to reduce if UK workforce self-isolates

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

 

Key Points

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

✅ ESO forecasts lower industrial use, higher domestic demand

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

✅ Mutual aid and Ofgem coordination bolster grid resilience

 

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

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

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

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

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

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

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

 

Related News

View more

Solar changing shape of electricity prices in Northern Europe

EU Solar Impact on Electricity Prices highlights how rising solar PV penetration drives negative pricing, shifts peak hours, pressures wholesale markets, and challenges grid balancing, interconnection, and flexibility amid changing demand and renewables growth.

 

Key Points

Explains how rising solar PV cuts wholesale prices, shifts negative-price hours, and strains grid flexibility.

✅ Negative pricing events surge with higher solar penetration.

✅ Afternoon price dips replace night-time wind-led lows.

✅ Grid balancing, interconnectors, and flexibility become critical.

 

The latest EU electricity market report has confirmed the affect deeper penetration of solar is having on wholesale electricity prices more broadly.

The Quarterly Report on European Electricity Markets for the final three months of last year noted the number of periods of negative electricity pricing doubled from 2019, to almost 1,600 such events, as global renewables set new records in deployment across markets.

Having experienced just three negative price events in 2019, the Netherlands recorded almost 100 last year “amid a dramatic increase in solar PV capacity,” in the nation, according to the report.

Whilst stressing the exceptional nature of the Covid-19 pandemic on power consumption patterns, the quarterly update also noted a shift in the hours during which negative electric pricing occurred in renewables poster child Germany. Previously such events were most common at night, during periods of high wind speed and low demand, but 2020 saw a switch to afternoon negative pricing. “Thus,” stated the report, “solar PV became the main driver behind prices falling into negative territory in the German market in 2020, as Germany's solar boost accelerated, and also put afternoon prices under pressure generally.”

The report also highlighted two instances of scarce electricity–in mid September and on December 9–as evidence of the problems associated with accommodating a rising proportion of intermittent clean energy capacity into the grid, and called for more joined-up cross-border power networks, amid pushback from Russian oil and gas across the continent.

Rising solar generation–along with higher gas output, year on year–also helped the Netherlands generate a net surplus of electricity last year, after being a net importer “for many years.” The EU report also noted a beneficial effect of rising solar generation capacity on Hungary‘s national electricity account, and cited a solar “boom” in that country and Poland, mirroring rapid solar PV growth in China in recent years.

With Covid-19 falls in demand helping renewables generate more of Europe's electricity (39%) than fossil fuels (36%) for the first time, as renewables surpassed fossil fuels across Europe, the market report observed the 5% of the bloc's power produced from solar closed in on the 6% accounted for by hard coal. In the final three months of the year, European solar output rose 12%, year on year, to 18 TWh and “the increase was almost single-handedly driven by Spain,” the study added.

With coal and lignite-fired power plunging 22% last year across the bloc, it is estimated the European power sector reduced its carbon footprint 14% as part of Europe's green surge although the quarterly report warned cold weather, lower wind speeds and rising gas prices in the opening months of this year are likely to see carbon emissions rebound.

There was good news on the transport front, though, with the report stating the scale of the European “electrically-charged vehicle” fleet doubled in 2020, to 2 million, with almost half a million of the new registrations arriving in the final months of the year. That meant cars with plug sockets accounted for a remarkable 17% of new purchases in Q4, twice the proportion seen in China and a slice of the pie six times bigger than such products claimed in the U.S.

 

Related News

View more

France and Germany arm wrestle over EU electricity reform

EU Electricity Market Reform CFDs seek stable prices via contracts for difference, balancing renewables and nuclear, shielding consumers, and boosting competitiveness as France and Germany clash over scope, grid expansion, and hydrogen production.

 

Key Points

EU framework using contracts for difference to stabilize power prices, support renewables and nuclear, and protect users.

✅ Guarantees strike prices for new low-carbon generation

✅ Balances consumer protection with industrial competitiveness

✅ Disputed scope: nuclear inclusion, grids, hydrogen eligibility

 

Despite record temperatures this October, Europe is slowly shifting towards winter - its second since the Ukraine war started and prompted Russia to cut gas supplies to the continent amid an energy crisis that has reshaped policy.

After prices surged last winter, when gas and electricity bills “nearly doubled in all EU capitals”, the EU decided to take emergency measures to limit prices.

In March, the European Commission proposed a reform to revamp the electricity market “to boost renewables, better protect consumers and enhance industrial competitiveness”.

However, France and Germany are struggling to find a compromise as rolling back prices is tougher than it appears and the clock is ticking as European energy ministers prepare to meet on 17 October in Luxembourg.


The controversy around CFDs
At the heart of the issue are contracts for difference (CFDs).

By providing a guaranteed price for electricity, CFDs aim to support investment in renewable energy projects.

France - having 56 nuclear reactors - is lobbying for nuclear energy to be included in the CFDs, but this has caught the withering eye of Germany.

Berlin suspects Paris of wanting an exception that would give its industry a competitive advantage and plead that it should only apply to new investments.


France wants ‘to regain control of the price’
The disagreement is at the heart of the bilateral talks in Hamburg, which started on Monday, between the French and German governments.

French President Emmanuel Macron promised “to regain control of the price of electricity, at the French and European level” and outlined a new pricing scheme in a speech at the end of September.

As gas electricity is much more expensive than nuclear electricity, France might be tempted to switch to a national system rather than a European one after a deal with EDF on prices to be more competitive economically.

However, France is "confident" that it will reach an agreement with Germany on electricity market reforms, Macron said on Friday.

Siding with France are other pro-nuclear countries such as Hungary, the Czech Republic and Poland, while Germany can count on the support of Austria, Luxembourg, Belgium and Italy amid opposition from nine EU countries to treating market reforms as a price fix.

But even if a last-minute agreement is reached, the two countries’ struggles over energy are creeping into all current European negotiations on the subject.

Germany wants a massive extension of electricity grids on the continent so that it can import energy; France is banking on energy sovereignty and national production.

France wants to be able to use nuclear energy to produce clean hydrogen, while Germany is reluctant, and so on.

 

Related News

View more

Cabinet Of Ministers Of Ukraine - Prime Minister: Our Goal In The Energy Sector Is To Synchronize Ukraine's Integrated Power System With Entso-e

Ukraine's EU Energy Integration aims for ENTSO-E synchronization, electricity market liberalization, EU Green Deal alignment, energy efficiency upgrades, hydrogen development, and streamlined grid connections to accelerate reform, market pricing, and sustainable growth.

 

Key Points

Ukraine's EU Energy Integration syncs with ENTSO-E, liberalizes power markets, and aligns with the EU Green Deal.

✅ ENTSO-E grid synchronization and cross-border trade readiness

✅ Electricity market liberalization and market-based pricing

✅ EU Green Deal alignment: efficiency, hydrogen, coal regions

 

Ukraine's goal in the energy sector is to ensure the maximum integration of energy markets with EU markets, and in line with the EU plan to dump Russian energy that is reshaping the region, synchronization of Ukraine's integrated energy system with ENTSO-E while leaning on electricity imports as needed to maintain stability. Prime Minister Denys Shmyhal emphasized in his statement at the Fourth Ukraine Reform Conference underway through July 7-8 in Vilnius, the Republic of Lithuania.

The Head of Government presented a plan of reforms in Ukraine until 2030. In particular, energy sector reform and environmental protection, according to the PM, include the liberalization of the electricity market, with recent amendments to the market law guiding implementation, the simplification of connection to the electrical grid system and the gradual transition to market electricity prices, alongside potential EU emergency price measures under discussion, and the monetization of subsidies for vulnerable groups.

"Ukraine shares and fully supports the EU's climate ambitions and aims to synchronize its policies in line with the EU Green Deal, including awareness of Hungary's energy alignment with Russia to ensure coherent regional planning. The interdepartmental working group has determined priority areas for cooperation with the European Union: energy efficiency, hydrogen, transformation of coal regions, waste management," said the Prime Minister.

According to Denys Shmyhal, Ukraine has supported the EU's climate ambitions to move towards climate-neutral development by 2050 within the framework of the European Green Deal and should become an integral part of it in order not only to combat the effects of climate change in synergy with the EU but, as the country prepares for winter energy challenges and strengthens resilience, within the economic strategy development aimed to enhance security and create new opportunities for Ukrainian business, with continued energy security support from partners bolstering implementation.

 

Related News

View more

Japanese utilities buy into vast offshore wind farm in UK

Japan Offshore Wind Investment signals Japanese utilities entering UK offshore wind, as J-Power and Kansai Electric buy into Innogy's Triton Knoll, leveraging North Sea expertise, 9.5MW turbines, and 15-year fixed-rate contracts.

 

Key Points

Japanese utilities buying UK offshore wind stakes to import expertise, as J-Power and Kansai join Innogy's Triton Knoll.

✅ $900M deal: J-Power 25%, Kansai Electric ~16% in Innogy unit

✅ Triton Knoll: 860MW, up to 90 9.5MW turbines, 15-year fixed PPA

✅ Goal: Transfer North Sea expertise to develop Japan offshore wind

 

Two of Japan's biggest power companies will buy around 40% of a German-owned developer of offshore wind farms in the U.K., seeking to learn from Britain's lead in this sector, as highlighted by a UK offshore wind milestone this week, and bring the know-how back home.

Tokyo-based Electric Power Development, better known as J-Power, will join Osaka regional utility Kansai Electric Power in investing in a unit of Germany's Innogy.

The deal, estimated to be worth around $900 million, will give J-Power a 25% stake and Kansai Electric a roughly 16% share. It will mark the first investment in an offshore wind project by Japanese power companies, as other markets shift strategies, with Poland backing wind over nuclear signaling broader momentum.

Innogy plans to start up the 860-megawatt Triton Knoll offshore wind project -- one of the biggest of its kind in the world -- in the North Sea in 2021. The vast installation will have up to 90 9.5MW turbines and sell its output to local utilities under a 15-year fixed-rate contract.

J-Power, which supplies mainly fossil-fuel-based electricity to Japanese regional utilities, will set up a subsidiary backed by the government-run Development Bank of Japan to participate in the Innogy project. Engineers will study firsthand construction and maintenance methods.

While land-based wind turbines are proliferating worldwide, offshore wind farms have progressed mainly in Europe, though U.S. offshore wind competitiveness is improving in key markets. Installed capacity totaled more than 18,000MW at the end of 2017, which at maximum capacity can produce as much power as 18 nuclear reactors.

Japan has hardly any offshore wind farms in commercial operation, and has little in the way of engineering know-how in this field or infrastructure for linking such installations to the land power grid, with a recent Japan grid blackout analysis underscoring these challenges. But there are plans for a total of 4,000MW of offshore wind power capacity, including projects under feasibility studies.

J-Power set up a renewable energy division in June to look for opportunities to expand into wind and geothermal energy in Japan, and efforts like a Japan hydrogen energy system are emerging to support decarbonization. Kansai Electric also seeks know-how for increasing its reliance on renewable energy, even as it hurries to restart idled nuclear reactors.

They are not the only Japanese investors is in this field. In Asia, trading house Marubeni will invest in a Taiwanese venture with plans for a 600MW offshore wind farm.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2025 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified