NStar to offer wind energy - for a price

By Boston Globe


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
NStar customers willing to pay a premium will soon be able to power their homes with environmentally friendly wind power.

The state Department of Public Utilities approved a program that allows customers to buy half or all of their electricity from wind farms in Maine and upstate New York. Customers who opt for the green power can pay an additional $4.25 a month to buy half their electricity from wind farms or $7.25 for all of it, NStar said.

NStar will begin enrolling customers in NStar Green immediately, with service to begin in July, said spokeswoman Caroline Allen. The program is the first of its kind in Massachusetts and one of the few nationwide, according to the Conservation Law Foundation, an environmental advocacy group in Boston.

Other utilities have launched so-called green power programs, such as National Grid USA's GreenUp. But National Grid's program and others merely refer customers to third-party organizations that collect what are effectively voluntary contributions to indirectly subsidize various green energy installations around the country, including solar and hydroelectric power. About 6,000 of National Grid's 1.3 million Massachusetts customers participate.

NStar, however, will buy power directly from the two wind farms, the 195-turbine Maple Ridge wind farm in northern New York state and the 44-tower wind project at Kibby Mountain in Maine, expected to begin operating next year. The Boston utility signed 10-year contracts to buy a total of 60 megawatts from the wind farms. That's enough to power about 60,000 homes.

"What makes this program unique is the fact that it's transparent - customers know exactly where their renewable energy is being generated," said Thomas J. May, NStar chief executive. "The approval of NStar Green represents a major step forward in the effort to increase the amount of clean electricity that's available to customers in our region."

Utilities across the country are seeking alternatives to generating power from fossil fuels, such as oil, natural gas, and coal, because of global warming concerns. These fuels emit carbon dioxide, which traps the sun's heat in the atmosphere, causing temperatures to rise. It's increasingly likely, too, that new regulations will be put in place to reduce carbon dioxide emissions.

NStar, with 1.1 million electric customers in Eastern and Central Massachusetts, proposed the wind power program last summer, working with Attorney General Martha Coakley and advocacy groups, including the Union of Concerned Scientists and the Conservation Law Foundation, to develop it. Sue Reid, CLF staff attorney, said long-term contracts are particularly important because they help wind farms obtain financing. They also increase demand for wind power, which ultimately will lead to more wind projects, she said.

"The long-term contracts that are at the heart of this initiative are key catalysts to bringing renewable energy online and are a prime example of how we can use market mechanisms to combat climate change," Reid said.

Information about enrolling in the program is available on NStar's website, nstar.com, or by calling 1-800-592-2000.

Related News

Expanding EV Charging Infrastructure in Calgary's Apartments and Condos

Calgary EV Charging for Apartments and Condos streamlines permitting for multi-unit dwellings, guiding condo boards and property managers to install EV charging stations, expand infrastructure, and advance sustainability with cleaner air and lower emissions.

 

Key Points

A Calgary program simplifying permits and guidance to add EV charging stations in multi-unit residential buildings.

✅ Streamlined permitting for condo boards and property managers

✅ Technical assistance to install EV charging stations

✅ Boosts property value and reduces emissions citywide

 

As the demand for electric vehicles (EVs) continues to rise, and as national EV targets gain traction, Calgary is taking significant strides to enhance its charging infrastructure, particularly in apartment and condominium complexes. A recent initiative has been introduced to facilitate the installation of EV charging stations in these residential buildings, addressing a critical barrier for potential EV owners living in multi-unit dwellings.

The Growing EV Market

Electric vehicles are no longer a niche market; they have become a mainstream option for many consumers. As of late 2023, EV sales have surged, with projections indicating that the trend will only continue. However, a significant challenge remains for those who live in apartments and condos, where high-rise charging can be a mixed experience and the lack of accessible charging stations persists. Unlike homeowners with garages, residents of multi-unit dwellings often rely on public charging infrastructure, which can be inconvenient and limiting.

The New Initiative

In response to this growing concern, the City of Calgary has launched a new initiative aimed at easing the process of installing EV chargers in apartment and condo buildings. This program is designed to streamline the permitting process, reduce red tape, and provide clear guidelines for property managers and condo boards, similar to strata installation rules adopted in other jurisdictions to ease installations.

The initiative includes various measures, such as providing technical assistance and resources to building owners and managers. By simplifying the installation process, the city hopes to encourage more residential complexes to adopt EV charging stations. The initiative also emphasizes practical support, such as providing technical assistance, including condo retrofit guidance, and resources to building owners and managers. This is a significant step towards creating an eco-friendly urban environment and meeting the growing demand for sustainable transportation options.

Benefits of the Initiative

The benefits of this initiative are manifold. Firstly, it supports Calgary's broader climate goals by promoting electric vehicle adoption. As more residents gain access to charging stations, the city can expect a corresponding reduction in greenhouse gas emissions, contributing to cleaner air and a healthier urban environment.

Additionally, providing charging infrastructure can enhance property values. Buildings equipped with EV chargers become more attractive to potential tenants and buyers who prioritize sustainability. As the market for electric vehicles expands, properties that offer charging facilities are likely to see increased demand, making them a sound investment for landlords and developers.

Overcoming Challenges

While this initiative marks a positive step forward, there are still challenges to address. Property managers and condo boards may face initial resistance from residents who are uncertain about the costs associated with installing and maintaining EV chargers, though rebates for home and workplace charging can offset upfront expenses and ease adoption. Clear communication about the long-term benefits, including potential energy savings and the value of sustainable living, will be essential in overcoming these hurdles.

Furthermore, the city will need to ensure that the installation of EV chargers is done in a way that is equitable and inclusive. This means considering the needs of all residents, including those who may not own an electric vehicle but would benefit from a greener community.

Looking Ahead

As Calgary moves forward with this initiative, it sets a precedent for other cities, as seen in Vancouver's EV-ready policy, facing similar challenges in promoting electric vehicle adoption. By prioritizing charging infrastructure in multi-unit residential buildings, Calgary is taking important steps towards a more sustainable future.

In conclusion, the push for EV charging stations in apartments and condos is a critical move for Calgary. It reflects a growing recognition of the role that urban planning and infrastructure play in supporting the transition to electric vehicles, which complements corridor networks like the BC Electric Highway for intercity travel. With the right support and resources, Calgary can pave the way for a greener, more sustainable urban landscape that benefits all its residents. As the city embraces this change, it will undoubtedly contribute to a broader shift towards sustainable living, ultimately helping to combat climate change and improve the quality of life for all Calgarians.

 

Related News

View more

How to Get Solar Power on a Rainy Day? Beam It From Space

Space solar power promises wireless energy from orbital solar satellites via microwave or laser power beaming, using photovoltaics and rectennas. NRL and AFRL advances hint at 24-7 renewable power delivery to Earth and airborne drones.

 

Key Points

Space solar power beams orbital solar energy to Earth via microwaves or lasers, enabling continuous wireless electricity.

✅ Harvests sunlight in orbit and transmits via microwaves or lasers

✅ Provides 24-7 renewable power, independent of weather or night

✅ Enables wireless power for remote sites, grids, and drones

 

Earlier this year, a small group of spectators gathered in David Taylor Model Basin, the Navy’s cavernous indoor wave pool in Maryland, to watch something they couldn’t see. At each end of the facility there was a 13-foot pole with a small cube perched on top. A powerful infrared laser beam shot out of one of the cubes, striking an array of photovoltaic cells inside the opposite cube. To the naked eye, however, it looked like a whole lot of nothing. The only evidence that anything was happening came from a small coffee maker nearby, which was churning out “laser lattes” using only the power generated by the system as ambitions for cheap abundant electricity gain momentum worldwide.

The laser setup managed to transmit 400 watts of power—enough for several small household appliances—through hundreds of meters of air without moving any mass. The Naval Research Lab, which ran the project, hopes to use the system to send power to drones during flight. But NRL electronics engineer Paul Jaffe has his sights set on an even more ambitious problem: beaming solar power to Earth from space. For decades the idea had been reserved for The Future, but a series of technological breakthroughs and a massive new government research program suggest that faraway day may have finally arrived as interest in space-based solar broadens across industry and government.

Since the idea for space solar power first cropped up in Isaac Asimov’s science fiction in the early 1940s, scientists and engineers have floated dozens of proposals to bring the concept to life, including inflatable solar arrays and robotic self-assembly. But the basic idea is always the same: A giant satellite in orbit harvests energy from the sun and converts it to microwaves or lasers for transmission to Earth, where it is converted into electricity. The sun never sets in space, so a space solar power system could supply renewable power to anywhere on the planet, day or night, as recent tests show we can generate electricity from the night sky as well, rain or shine.

Like fusion energy, space-based solar power seemed doomed to become a technology that was always 30 years away. Technical problems kept cropping up, cost estimates remained stratospheric, and as solar cells became cheaper and more efficient, and storage improved with cheap batteries, the case for space-based solar seemed to be shrinking.

That didn’t stop government research agencies from trying. In 1975, after partnering with the Department of Energy on a series of space solar power feasibility studies, NASA beamed 30 kilowatts of power over a mile using a giant microwave dish. Beamed energy is a crucial aspect of space solar power, but this test remains the most powerful demonstration of the technology to date. “The fact that it’s been almost 45 years since NASA’s demonstration, and it remains the high-water mark, speaks for itself,” Jaffe says. “Space solar wasn’t a national imperative, and so a lot of this technology didn’t meaningfully progress.”

John Mankins, a former physicist at NASA and director of Solar Space Technologies, witnessed how government bureaucracy killed space solar power development firsthand. In the late 1990s, Mankins authored a report for NASA that concluded it was again time to take space solar power seriously and led a project to do design studies on a satellite system. Despite some promising results, the agency ended up abandoning it.

In 2005, Mankins left NASA to work as a consultant, but he couldn’t shake the idea of space solar power. He did some modest space solar power experiments himself and even got a grant from NASA’s Innovative Advanced Concepts program in 2011. The result was SPS-ALPHA, which Mankins called “the first practical solar power satellite.” The idea, says Mankins, was “to build a large solar-powered satellite out of thousands of small pieces.” His modular design brought the cost of hardware down significantly, at least in principle.

Jaffe, who was just starting to work on hardware for space solar power at the Naval Research Lab, got excited about Mankins’ concept. At the time he was developing a “sandwich module” consisting of a small solar panel on one side and a microwave transmitter on the other. His electronic sandwich demonstrated all the elements of an actual space solar power system and, perhaps most important, it was modular. It could work beautifully with something like Mankins' concept, he figured. All they were missing was the financial support to bring the idea from the laboratory into space.

Jaffe invited Mankins to join a small team of researchers entering a Defense Department competition, in which they were planning to pitch a space solar power concept based on SPS-ALPHA. In 2016, the team presented the idea to top Defense officials and ended up winning four out of the seven award categories. Both Jaffe and Mankins described it as a crucial moment for reviving the US government’s interest in space solar power.

They might be right. In October, the Air Force Research Lab announced a $100 million program to develop hardware for a solar power satellite. It’s an important first step toward the first demonstration of space solar power in orbit, and Mankins says it could help solve what he sees as space solar power’s biggest problem: public perception. The technology has always seemed like a pie-in-the-sky idea, and the cost of setting up a solar array on Earth is plummeting, as proposals like a tenfold U.S. solar expansion signal rapid growth; but space solar power has unique benefits, chief among them the availability of solar energy around the clock regardless of the weather or time of day.

It can also provide renewable energy to remote locations, such as forward operating bases for the military, which has deployed its first floating solar array to bolster resilience. And at a time when wildfires have forced the utility PG&E to kill power for thousands of California residents on multiple occasions, having a way to provide renewable energy through the clouds and smoke doesn’t seem like such a bad idea. (Ironically enough, PG&E entered a first-of-its-kind agreement to buy space solar power from a company called Solaren back in 2009; the system was supposed to start operating in 2016 but never came to fruition.)

“If space solar power does work, it is hard to overstate what the geopolitical implications would be,” Jaffe says. “With GPS, we sort of take it for granted that no matter where we are on this planet, we can get precise navigation information. If the same thing could be done for energy, especially as peer-to-peer energy sharing matures, it would be revolutionary.”

Indeed, there seems to be an emerging race to become the first to harness this technology. Earlier this year China announced its intention to become the first country to build a solar power station in space, and for more than a decade Japan has considered the development of a space solar power station to be a national priority. Now that the US military has joined in with a $100 million hardware development program, it may only be a matter of time before there’s a solar farm in the solar system.

 

Related News

View more

Winter Storm Leaves Many In Texas Without Power And Water

Texas Power Grid Crisis strains ERCOT as extreme cold, ice storms, and heavy snow trigger rolling blackouts, load shedding, and boil-water notices, leaving millions without electricity while frozen turbines and low gas pressure hinder generation.

 

Key Points

A statewide emergency of outages and boil-water notices as ERCOT battles extreme cold and load shedding.

✅ Millions without power; ERCOT orders load shedding

✅ Boil-water notices in Austin, Houston, Fort Worth

✅ Frozen equipment, low gas pressure, extreme cold disrupt supply

 

Nearly 3 million homes and businesses in Texas remain without power, some for a third consecutive day, as severe winter weather continues to pummel the state, forcing some localities to issue boil-water notices and urge residents to reduce their electricity usage.

Heavy snowfall, ice storms and bitter temperatures continue to put an enormous strain on the state's power grid. This as the Electric Reliability Council of Texas (ERCOT), which manages roughly 75% of the Texas power grid, announced Wednesday morning that some 600,000 households had power restored overnight.

That still left another 2.7 million customers having to endure extreme cold with no indication of when the thaw would break in their homes.

"We know millions of people are suffering," ERCOT's president and CEO, Bill Magness, said in a statement Wednesday. "We have no other priority than getting them electricity. No other priority."

ERCOT also said Wednesday that it was urging local utilities to shed some 14,000 megawatts of load, which translates to roughly 2.8 million customers, to prepare for a sudden increase in demand.

"The ability to restore more power is contingent on more generation coming back online," said Dan Woodfin, the senior director of ERCOT's system operations, and utility supply-chain constraints can further complicate repair timelines for some utilities.

He said that about 185 generating units were offline, stemming from a range of factors including frozen wind turbines, low gas pressure and frozen instrumentation.

But many Texans feel abandoned by the council and power companies and they are lashing out at the local face of utilities.

The City of Austin's community-owned electric utility, Austin Energy, issued a tweet saying crews that are working to restore power are facing harassment.


"Our crews have been working 24/7 and in these elements," Austin Energy announced. "Some of our crews are reporting incidents of harassment, threatening them and even throwing things at them."

Officials pleaded with the public to remain calm. "I know people are extremely frustrated. But please, I bet of you, do not approach AE crews."

Parts of Austin are under a boil water notice, which Austin Water Director Greg Meszaros attempted to explain during a press briefing Wednesday afternoon.

"There was a large main break in that area, maybe multiple ones. We're seeing main breaks and pipes bursting by the tens of thousands. Our entire system is under stress," Meszaros said.

It's not just the Lone Star State that is being crippled by the arctic blast, with a deep freeze slamming the energy sector across the country.

At least two dozen people have died this week from weather-related incidents, according to The Associated Press.

The National Weather Service reports that more than 100 million Americans are being affected by extreme winter weather from the south central U.S. to the East Coast, including Arkansas, Louisiana, Mississippi, North Carolina, Virginia and West Virginia, and analysts warn of blackout risks nationwide during extreme heat as well.

The National Weather Service adds that cold temperatures over the nation's heartland will begin to "moderate in the coming days" but that many parts will remain 20 to 35 degrees below normal in the Great Plains, Mississippi Valley and lower Great Lakes region.

"Potential is increasing for significant icing across portions of the Mid-Atlantic, which will be very impactful, especially for those hardest hit from the previous ice storm," the National Weather Service tweeted Wednesday.

Texas Gov. Greg Abbott railed against ERCOT, and Elon Musk criticized the agency as unreliable, saying the utility "has been anything but reliable over the past 48 hours."

"This is unacceptable," Abbott added, as residents were facing rotating intentional power outages. The governor issued an executive order that will add reforms for how the power grid is managed, including grid reliability improvements under discussion, as an emergency legislative item for the state legislature to review.

The rolling power outages forced Fort Worth to extend a boil-water notice for roughly 212,000 residents. Officials said the outages affected the city's systems that both treat water and move it to customers.

Fort Worth officials said nine other localities that purchase water from the city are also affected, including Haslet, Keller, Lake Worth and Northlake.

Officials in Houston also issued a boil-water notice for the city's residents Wednesday.

"Do not drink the water without boiling it first," Houston Public Works said from its official Twitter account. "Bring all water to a boil for at least two minutes. Let it cool before using."

In Harris County, which includes Houston, Judge Lina Hidalgo warned residents about extended power outages.

"Let me give it to you straight, based on the visibility I have: Whether you have power or not right now, there is a possibility of power outages even beyond the length of this weather," Hidalgo said, according to Houston Public Media.

The NPR member station adds that county officials have also reported more than 300 cases of carbon monoxide poisoning since Monday as residents going without electricity search desperately for alternative sources of warmth.

"In no uncertain terms, this is a public health disaster and a public health emergency," Samuel Prater, an emergency physician at Memorial Hermann-Texas Medical Center, said at a news briefing Tuesday.

Prater warned residents that over the last 24 hours, emergency officials "have seen a striking increase in the number of cases related to improper heating sources," including indoor use of generators, charcoal grills, campfire stoves and other devices that are being used to warm homes. The result, he added, is carbon monoxide poisoning of entire families.

"If you think you or a loved one has become ill from carbon monoxide poisoning, first thing you need to do is get outside to fresh air," Prater said.

A woman and an 8-year-old girl are among those who have reportedly died from carbon monoxide poisoning after a vehicle was left running inside a garage in an attempt to generate heat, according to Houston's ABC affiliate.

As Texas endures further weather-related issues, including road and highway closures, there's a renewed focus on how the Texas power grid has failed, and why the grid is facing another crisis amid this prolonged cold.

The Texas electrical grid is "facing conditions that it was not designed for," said Emily Grubert, a professor at Georgia Tech whose expertise includes electric networks.

"These are really extreme conditions for the Texas grid. It's very cold. It's cold across the entire state, and it's cold for a long time. This does not happen very often," she said in an interview with NPR's Morning Edition.

"Demand really spiked both in the electricity and the natural gas systems at the same time as a lot of the generators were not able to operate because of those cold conditions, and not being prepared for it is really what's going on," Grubert said. "But a lot of grids are susceptible to really, really major failures when they are this far outside of design conditions."

Abbott told Fox News on Tuesday that with weather-related shutdowns in wind and solar energy, which account for more than 10% of the state's grid, renewable energy is partly to blame for the Texas power crisis, even as he later touted the grid's readiness heading into the fall.

"It just shows that fossil fuel is necessary for the state of Texas as well as other states to make sure that we'll be able to heat our homes in the wintertime and cool our homes in the summertime," Abbott said.

But Grubert said that "coal, gas and nuclear actually shut down because of the extreme cold due to things like instruments freezing, et cetera. So I think the overall point here is all of the fuels were really, really struggling."

 

Related News

View more

Does Providing Electricity To The Poor Reduce Poverty? Maybe Not

Rural Electrification Poverty Impact examines energy access, grid connections, and reliability, testing economic development claims via randomized trials; findings show minimal gains without appliances, reliable supply, and complementary services like education and job creation initiatives.

 

Key Points

Study of household grid connections showing modest poverty impact without reliable power and appliances.

✅ Randomized grid connections showed no short-term income gains.

✅ Low reliability and few appliances limited electricity use.

✅ Complementary investments in jobs, education, health may be needed.

 

The head of Swedfund, the development finance group, recently summarized a widely-held belief: “Access to reliable electricity drives development and is essential for job creation, women’s empowerment and combating poverty.” This view has been the driving force behind a number of efforts to provide electricity to the 1.1 billion people around the world living in energy poverty, such as India's village electrification initiatives in recent years.

But does electricity really help lift households out of poverty? My co-authors and I set out to answer this question. We designed an experiment in which we first identified a sample of “under grid” households in Western Kenya—structures that were located close to but not connected to a grid. These households were then randomly divided into treatment and control groups. In the treatment group, we worked closely with the rural electrification agency to connect the households to the grid for free or at various discounts. In the control group, we made no changes. After eighteen months, we surveyed people from both groups and collected data on an assortment of outcomes, including whether they were employed outside of subsistence agriculture (the most common type of work in the region) and how many assets they owned. We even gave children basic tests, as a frequent assertion is that electricity helps children perform better in school since they are able to study at night.

When we analyzed the data, we found no differences between the treatment and control groups. The rural electrification agency had spent more than $1,000 to connect each household. Yet eighteen months later, the households we connected seemed to be no better off. Even the children’s test scores were more or less the same. The results of our experiment were discouraging, and at odds with the popular view that supplying households with access to electricity will drive economic development. Lifting people out of poverty may require a more comprehensive approach to ensure that electricity is not only affordable (with some evidence that EV growth can benefit all customers in mature markets), but is also reliable, useable, and available to the whole community, paired with other important investments.

For instance, in many low-income countries, the grid has frequent blackouts and maintenance problems, making electricity unreliable, as seen in Nigeria's electricity crisis in recent years. Even if the grid were reliable, poor households may not be able to afford the appliances that would allow for more than just lighting and cell phone charging. In our data, households barely bought any appliances and they used just 3 kilowatt-hours per month. Compare that to the U.S. average of 900 kilowatt-hours per month, a figure that could rise as EV adoption increases electricity demand over time.

There are also other factors to consider. After all, correlation does not equal causation. There is no doubt that the 1.1 billion people without power are the world’s poorest citizens. But this is not the only challenge they face. The poor may also lack running water, basic sanitation, consistent food supplies, quality education, sufficient health care, political influence, and a host of other factors that may be harder to measure but are no less important to well-being. Prioritizing investments in some of these other factors may lead to higher immediate returns. Previous work by one of my co-authors, for example, shows substantial economic gains from government spending on treatment for intestinal worms in children.

It’s possible that our results don’t generalize. They certainly don’t apply to enhancing electricity services for non-residential customers, like factories, hospitals, and schools, and electric utilities adapting to new load patterns. Perhaps the households we studied in Western Kenya are particularly poor (although measures of well-being suggest they are comparable to rural households across Sub-Saharan Africa) or politically disenfranchised. Perhaps if we had waited longer, or if we had electrified an entire region, the household impacts we measured would have been much greater. But others who have studied this question have found similar results. One study, also conducted in Western Kenya, found that subsidizing solar lamps helped families save on kerosene, but did not lead children to study more. Another study found that installing solar-powered microgrids in Indian villages resulted in no socioeconomic benefits.

 

Related News

View more

Oil crash only a foretaste of what awaits energy industry

Oil and Gas Profitability Decline reflects shale-driven oversupply, OPEC-Russia dynamics, LNG exports, renewables growth, and weak demand, signaling compressed margins for producers, stressed petrodollar budgets, and shifting energy markets post-Covid.

 

Key Points

A sustained squeeze on hydrocarbon margins from agile shale supply, weaker OPEC leverage, and expanding renewables.

✅ Shale responsiveness caps prices and erodes industry rents

✅ OPEC-Russia cuts face limited impact versus US supply

✅ Renewables and EVs slow long-term oil and gas demand

 

The oil-price crash of March 2020 will probably not last long. As in 2014, when the oil price dropped below $50 from $110 in a few weeks, this one will trigger a temporary collapse of the US shale industry. Unless the coronavirus outbreak causes Armageddon, cheap oil will also support policymakers’ efforts to help the global economy.

But there will be at least one important and lasting difference this time round — and it has major market and geopolitical implications.

The oil price crash is a foretaste of where the whole energy sector was going anyway — and that is down.

It may not look that way at first. Saudi Arabia will soon realise, as it did in 2015, that its lethal decision to pump more oil is not only killing US shale but its public finances as well. Riyadh will soon knock on Moscow’s door again. Once American shale supplies collapse, Russia will resume co-operation with Saudi Arabia.

With the world economy recovering from the Covid-19 crisis by then, and with electricity demand during COVID-19 shifting, moderate supply cuts by both countries will accelerate oil market recovery. In time, US shale producers will return too.

Yet this inevitable bounceback should not distract from two fundamental factors that were already remaking oil and gas markets. First, the shale revolution has fundamentally eroded industry profitability. Second, the renewables’ revolution will continue to depress growth in demand.

The combined result has put the profitability of the entire global hydrocarbon industry under pressure. That means fewer petrodollars to support oil-producing countries’ national budgets, including Canada's oil sector exposures. It also means less profitable oil companies, which traditionally make up a large segment of stock markets, an important component of so many western pension funds.

Start with the first factor to see why this is so. Historically, the geological advantages that made oil from countries such as Saudi Arabia so cheap to produce were unique. Because oil and gas were produced at costs far below the market price, the excess profits, or “rent”, enjoyed by the industry were very large.

Furthermore, collusion among low-cost producers has been a winning strategy. The loss of market share through output cuts was more than compensated by immediately higher prices. It was the raison d’être of Opec.

The US shale revolution changed all this, exposing the limits of U.S. energy dominance narratives. A large oil-producing region emerged with a remarkable ability to respond quickly to price changes and shrink its costs over time. Cutting back cheap Opec oil now only increases US supplies, with little effect on world prices.

That is why Russia refused to cut production this month. Even if its cuts did boost world prices — doubtful given the coronavirus outbreak’s huge shock to demand — that would slow the shrinkage of US shale that Moscow wants.

Shale has affected the natural gas industry even more. Exports of US liquefied natural gas now put an effective ceiling on global prices, and debates over a clean electricity push have intensified when gas prices spike.

On top of all this, there is also the renewables’ revolution, though a green revolution has not been guaranteed in the near term. Around the world, wind and solar have become ever-cheaper options to generate electricity. Storage costs have also dropped and network management improved. Even in the US, renewables are displacing coal and gas. Electrification of vehicle fleets will damp demand further, as U.S. electricity, gas, and EVs face evolving pressures.

Eliminating fossil fuel consumption completely would require sustained and costly government intervention, and reliability challenges such as coal and nuclear disruptions add to the complexity. That is far from certain. Meanwhile, though, market forces are depressing the sector’s usual profitability.

The end of oil and gas is not immediately around the corner. Still, the end of hydrocarbons as a lucrative industry is a distinct possibility. We are seeing that in dramatic form in the current oil price crash. But this collapse is merely a message from the future.

 

Related News

View more

Data Center Boom Poses a Power Challenge for U.S. Utilities

U.S. Data Center Power Demand is straining electric utilities and grid reliability as AI, cloud computing, and streaming surge, driving transmission and generation upgrades, demand response, and renewable energy sourcing amid rising electricity costs.

 

Key Points

The rising electricity load from U.S. data centers, affecting utilities, grid capacity, and energy prices.

✅ AI, cloud, and streaming spur hyperscale compute loads

✅ Grid upgrades: transmission, generation, and substations

✅ Demand response, efficiency, and renewables mitigate strain

 

U.S. electric utilities are facing a significant new challenge as the explosive growth of data centers puts unprecedented strain on power grids across the nation. According to a new report from Reuters, data centers' power demands are expected to increase dramatically over the next few years, raising concerns about grid reliability and potential increases in electricity costs for businesses and consumers.


What's Driving the Data Center Surge?

The explosion in data centers is being fueled by several factors, with grid edge trends offering early context for these shifts:

  • Cloud Computing: The rise of cloud computing services, where businesses and individuals store and process data on remote servers, significantly increases demand for data centers.
  • Artificial Intelligence (AI): Data-hungry AI applications and machine learning algorithms are driving a massive need for computing power, accelerating the growth of data centers.
  • Streaming and Video Content: The growth of streaming platforms and high-definition video content requires vast amounts of data storage and processing, further boosting demand for data centers.


Challenges for Utilities

Data centers are notorious energy hogs. Their need for a constant, reliable supply of electricity places  heavy demand on the grid, making integrating AI data centers a complex planning challenge, often in regions where power infrastructure wasn't designed for such large loads. Utilities must invest significantly in transmission and generation capacity upgrades to meet the demand while ensuring grid stability.

Some experts warn that the growth of data centers could lead to brownouts or outages, as a U.S. blackout study underscores ongoing risks, especially during peak demand periods in areas where the grid is already strained. Increased electricity demand could also lead to price hikes, with utilities potentially passing the additional costs onto consumers and businesses.


Sustainable Solutions Needed

Utility companies, governments, and the data center industry are scrambling to find sustainable solutions, including using AI to manage demand initiatives across utilities, to mitigate these challenges:

  • Energy Efficiency: Data center operators are investing in new cooling and energy management solutions to improve energy efficiency. Some are even exploring renewable energy sources like onsite solar and wind power.
  • Strategic Placement: Authorities are encouraging the development of data centers in areas with abundant renewable energy and access to existing grid infrastructure. This minimizes the need for expensive new transmission lines.
  • Demand Flexibility: Utility companies are experimenting with programs as part of a move toward a digital grid architecture to incentivize data centers to reduce their power consumption during peak demand periods, which could help mitigate power strain.


The Future of the Grid

The rapid growth of data centers exemplifies the significant challenges facing the aging U.S. electrical grid, with a recent grid report card highlighting dangerous vulnerabilities. It highlights the need for a modernized power infrastructure, capable of accommodating increasing demand spurred by new technologies while addressing climate change impacts that threaten reliability and affordability.  The question for utilities, as well as data center operators, is how to balance the increasing need for computing power with the imperative of a sustainable and reliable energy future.

 

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

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.