Industry testifies on need for cyber security legislation

By PennEnergy


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Coming on the heels of the news that Russian and Chinese hackers infiltrated the U.S. power grid, members of Congress introduced a joint staff draft related to cyber security and critical electricity infrastructure.

Testimony from industry representatives began May 7.

The purpose of the draft is to help create guidelines to bolster the government's readiness for possible attacks against the electric grid and its various assets.

Among other things, the bill would allow the Federal Energy Regulatory Commission (FERC) to direct the actions of utilities and modify rules.

The Senate Committee on Energy and Natural Resources heard testimony from representatives from the American Public Power Association (APPA), the North American Electric Reliability Council (NERC), the Department of Energy and other agencies.

Allen Mosher, senior director of policy analysis and reliability for APPA, which represents publicly owned utilities, told the committee that Congress should continue the industry partnership with government agencies in the U.S. and Canada as well as foster the industry's commitment to monitor the bulk power system and ensure grid reliability.

"Maintaining and enhancing the cyber security of our bulk power control and communication systems is a fundamental element of this developing industry culture," Mosher said.

Mosher called for continued participation in NERC's standards development process to develop mandatory critical infrastructure protection (CIP) standards that are clear, technically sound and enforceable.

Working with the industry, NERC has made a significant commitment of resources to the development of new security standards, he said.

"In fact we've committed some of our scarcest resources — our subject matter experts in cyber security and system operations — to the task of developing draft standards for consideration by the industry," he said.

Mosher recommended a narrowly targeted authority for FERC to issue emergency orders in response to an imminent threat to the bulk power system.

In the case of an imminent threat, he said, time does not allow for classified industry briefings or mitigation measures for a threat. FERC and counterparts in Canada need the authority to direct the electric power industry to take needed action in emergencies, he said.

The electric power industry, and public power utilities in particular, need enhanced authority to protect and keep critical infrastructure information out of the public eye, he said.

There are conflicting statutory obligations to approve CIP standards through public notice and comment, he said, adding that threat and vulnerability information that make such standards necessary should be safeguarded.

Joseph McClelland, director of FERC's Office of Electric Reliability told the committee that his commission does not have sufficient authority to protect the grid against cyber attacks and other security threats to reliability.

This is due in part to FERC's inability to protect sensitive information and its inability to control the content of proposed standards, McClelland said.

McClelland said FERC and NERC are still working with the industry and government agencies to develop security standards to protect the grid.

"However, until such a time as the standards are modified, approved by the commission and implemented by industry, critical facilities will be left unprotected," McClelland said.

Even identifying which parts of the infrastructure are considered critical has been a challenge, he said. Only 29 percent of generation owners and operators reported at least one of their assets as being critical to bulk power grid reliability, he said.

"It is not clear, even today, what percentage of critical assets and their associated critical cyber assets has been identified," he said. "This issue is serious and represents a significant gap in cybersecurity protection."

McClelland stressed to the committee the danger posed by cyber attacks.

"Damage from cyber attacks could be enormous," he said. "A coordinated attack could affect the electrical grid to a greater extent than the August 2003 blackout and cause much more extensive damage."

Cyber attacks can physically damage generation facilities in a way that makes restoration of power take weeks or longer instead of a few hours, he said.

He recommended that legislation be amended to address not only cyber attacks, but also intentional physical malicious attacks against infrastructure that can be equally dangerous.

David Owens, vice president of the Edison Electric Institute's Business Operations Group, said the owners and operators of the bulk power system take cyber security seriously, adding that the companies EEI represents deal with such issues every day.

"Electric utilities are experienced and knowledgeable about how to provide reliable electric service at a reasonable cost to their customers, and they understand how their complex systems operate," Owens said. Because of this, utilities understand the consequences of a potential malicious act as well as how to prevent one.

Cyber security depends on a partnership among utilities, the federal government and suppliers of grid systems and components, he said. At the same time, every utility operates different equipment in different environments, making it difficult to know what will impact the bulk power system and what the threats and vulnerabilities are.

Stressing the need for agencies and utilities to work together, Owens called for any new legislation to grant utilities and regulatory commissions additional authority for dealing with emergency situations that threaten national security and public welfare.

"It is imperative that the government can provide appropriate entities clear direction about actions to be taken, and assurance that those actions will not have significant adverse consequences to utility operations or assets," he said.

Grid technologies are using digital controls more and more, he said. As new smart grid technologies come online, cyber security solutions must be developed in tandem with such systems as much as possible.

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Smart grid and system improvements help avoid more than 500,000 outages over the summer

ComEd Smart Grid Reliability drives outage reduction across Illinois, leveraging smart switches, grid modernization, and peak demand programs to keep customers powered, improve power quality, and enhance energy savings during extreme weather and severe storms.

 

Key Points

ComEd's smart grid performance, cutting outages and improving power quality to enhance reliability and customer savings.

✅ Smart switches reroute power to avoid customer interruptions

✅ Fewer outages during extreme weather across northern Illinois

✅ Peak Time Savings rewards for reduced peak demand usage

 

While the summer of 2019 set records for heat and brought severe storms, ComEd customers stayed cool thanks to record-setting reliability during the season. These smart grid investments over the last seven years helped to set records in key reliability measurements, including frequency of outages metrics, and through smart switches that reroute power around potential problem areas, avoided more than 538,000 customer interruptions from June to August.

"In a summer where we were challenged by extreme weather, we saw our smart grid investments and our people continue to deliver the highest levels of reliability, backed by extensive disaster planning across utilities, for the families and businesses we serve," said Joe Dominguez, CEO of ComEd. "We're proud to deliver the most affordable, cleanest and, as we demonstrated this summer, most reliable energy to our customers. I want to thank our 6,000 employees who work around the clock in often challenging conditions to power our communities."

ComEd has avoided more than 13 million customer interruptions since 2012, due in part to smart grid and system improvements. The avoided outages have resulted in $2.4 billion in estimated savings to society. In addition to keeping energy flowing for residents, strong power reliability continues to help persuade industrial and commercial companies to expand in northern Illinois and Chicago. The GridWise Alliance recently recognized Illinois as the No. 2 state in the nation for its smart grid implementation.

"Our smart grid investments has vastly improved the infrastructure of our system," said Terry Donnelly, ComEd president and chief operating officer. "We review the system and our operations continually to make sure we're investing in areas that benefit the greatest number of customers, and to prepare for public-health emergencies as well. On a daily basis and during storms or to reduce wildfire risk when necessary, our customers are seeing fewer and fewer interruptions to their lives and businesses."

ComEd customers also set records for energy savings this summer. Through its Peak Time Savings program and other energy-efficiency programs offered by utilities, ComEd empowered nearly 300,000 families and individuals to lower their bills by a total of more than $4 million this summer for voluntarily reducing their energy use during times of peak demand. Since the Peak Time Savings program launched in 2015, participating customers have earned a total of more than $10 million in bill credits.

 

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Canada's nationwide climate success — electricity

Canada Clean Electricity leads decarbonization, slashing power-sector emissions through coal phase-out, renewables like hydro, wind, and solar, and nuclear. Provinces cut carbon intensity, enabling electrification of transport and buildings toward net-zero goals.

 

Key Points

Canada Clean Electricity is the shift to low-emission power by phasing out coal and scaling renewables and nuclear.

✅ 38% cut in electricity emissions since 2005; 84% fossil-free power.

✅ Provinces lead coal phase-out; carbon intensity plummets.

✅ Enables EVs, heat pumps, and building electrification.

 

It's our country’s one big climate success so far.

"All across Canada, electricity generation has been getting much cleaner. It's our country’s one big climate success so far,"

To illustrate how quickly electric power is being cleaned up, what's still left to do, and the benefits it brings, I've dug into Canada's latest emissions inventory and created a series of charts below.

 

The sector that could

Climate pollution by Canadian economic sector, 2005 to 2017My first chart shows how Canada's economic sectors have changed their climate pollution since 2005.

While most sectors have increased their pollution or made little progress in the climate fight, our electricity sector has shined.

As the green line shows, Canadians have eliminated an impressive 38 per cent of the climate pollution from electricity generation in just over a decade.

To put these shifts into context, I've shown Canada's 2020 climate target on the chart as a gray star. This target was set by the Harper government as part of the global Copenhagen Accord. Specifically, Canada pledged to cut our climate pollution 17 per cent below 2005 levels under evolving Canadian climate policy frameworks of the time.

As you can see, the electricity sector is the only one to have done that so far. And it didn’t just hit the target — it cut more than twice as much.

Change in Canada's electricity generation, 2005 to 2017My next chart shows how the electricity mix changed. The big climate pollution cuts came primarily from reductions in coal burning, highlighting the broader implications of decarbonizing Canada's electricity grid for fuel choices.

The decline in coal-fired power was replaced (and then some) by increases in renewable electricity and other zero-emissions sources — hydro, wind, solar and nuclear.

As a result, Canada's overall electricity generation is now 84 per cent fossil free.

 

Every province making progress

A primary reason why electricity emissions fell so quickly is because every province worked to clean up Canada's electricity together.

Change in Canadian provincial electricity carbon intensity, 2005 to 2017

My next chart illustrates this rare example of Canada-wide climate progress. It shows how quickly the carbon-intensity of electricity generation has declined in different provinces.

(Note: carbon-intensity is the amount of climate pollution emitted per kilowatt-hour of electricity generated: gCO2e/kWh).

Ontario clearly led the way with an amazing 92 per cent reduction in climate pollution per kWh in just twelve years. Most of that came from ending the burning of coal in their power plants. But a big chunk also came from cutting in half the amount of natural gas they burn for electricity.

Manitoba, Quebec and B.C. also made huge improvements.

Even Alberta and Saskatchewan, which were otherwise busy increasing their overall climate pollution, made progress in cleaning up their electricity.

These real-world examples show that rapid and substantial climate progress can happen in Canada when a broad-spectrum of political parties and provinces decide to act.

Most Canadians now have superclean electricity

As a result of this rapid cleanup, most Canadians now have access to superclean energy.

Canadian provincial electricity carbon intensity in 2017

 

Who has it? And how clean is it?

The biggest climate story here is the superclean electricity generated by the four provinces shown on the left side — Quebec, Manitoba, B.C. and Ontario. Eighty per cent of Canadians live in these provinces and have access to this climate-safe energy source.

Those living in Alberta and Saskatchewan, however, still have fairly dirty electricity — as shown in orange on the right — and options like bridging the electricity gap between Alberta and B.C. could accelerate progress in the West.

A lot more cleanup must happen here before the families and businesses in these provinces have a climate-safe energy supply.

 

What's left to do?

Canada's electricity sector has two big climate tasks remaining: finishing the cleanup of existing power and generating even more clean energy to replace fossil fuels like the gasoline and natural gas used by vehicles, factories and other buildings.

 

Finishing the clean up

Climate pollution from Canadian provincial electricity 2005 and 2017

As we saw above, more than a third of the climate pollution from electricity has already been eliminated. That leaves nearly two-thirds still to clean up.

Back in 2005, Canada's total electricity emissions were 125 million tonnes (MtCO2).

Over the next twelve years, emissions fell by more than a third (-46 MtCO2). Ontario did most of the work by cutting 33 MtCO2. Alberta, New Brunswick and Nova Scotia made the next biggest cuts of around 4 MtCO2 each.

Now nearly eighty million tonnes of climate pollution remain.

As you can see, nearly all of that now comes from Alberta and Saskatchewan. As a result, continuing Canada's climate progress in the power sector now requires big cuts in the electricity emissions from these two provinces.

 

Generating more clean electricity

The second big climate task remaining for Canada's electricity is to generate more clean electricity to replace the fossil fuels burned in other sectors. My next chart lets you see how big a task this is.

 

Clean electricity generation by Canadian province, 2017

It shows how much climate-safe electricity is currently generated in major provinces. This includes zero-emissions renewables (blue bars) and nuclear power (pale blue).

Quebec tops the list with 191 terawatt-hours (TWh) per year. While impressive, it only accounts for around half of the energy Quebecers use. The other half still comes from climate-damaging fossil fuels and to replace those, Quebec will need to build out more clean energy.

The good news here is that electricity is more efficient for most tasks, so fossil fuels can be replaced with significantly less electric energy. In addition, other efficiency and reduction measures can further reduce the amount of new electricity needed.

Newfoundland and Labrador is in the best situation. They are the only province that already generates more climate-safe electricity than they would need to replace all the fossil fuels they burn. They currently export most of that clean electricity.

At the other extreme are Alberta and Saskatchewan. These provinces currently produce very little climate-safe energy. For example, Alberta's 7 TWh of climate-safe electricity is only enough to cover 1 per cent of the energy used in the province.

All told, Canadians currently burn fossil fuels for three-quarters of the energy we use. To preserve a safe-and-sane climate, most provinces will soon need lots more clean electricity in the race to net-zero to replace the fossil fuels we burn.

How soon will they need it?

According to the most recent report from the International Panel on Climate Change (IPCC), avoiding a full-blown climate crisis will require humanity to cut emissions by 45 per cent over the next decade.

 

Using electricity to clean up other sectors

Finally, let's look at how electricity can help clean up two of Canada’s other high-emission sectors — transportation and buildings.

 

Cleaning up transportation

Transportation is now the second biggest climate polluting sector in Canada (after the oil and gas industry). So, it’s a top priority to reduce the amount of gasoline we use.

Canadian provincial electricity carbon intensity in 2017, plus gasoline equivalent

Switching to electric vehicles (EVs) can reduce transportation emissions by a little, or a lot. It depends on how clean the electricity supply is.

To make it easy to compare gasoline to each province's electricity I've added a new grey-striped zone at the top of the carbon-intensity chart.

This new zone shows that burning gasoline in cars and trucks has a carbon-intensity equivalent to more than 1,000 gCO2e/kWh. (If you are interested in the details of this and other data points, see the geeky endnotes.)

The good news is that every province's electricity is now much cleaner than gasoline as a transportation fuel.

In fact, most Canadians have electricity that is at least 95 per cent less climate polluting than gasoline. Electrifying vehicles in these provinces virtually eliminates those transportation emissions.

Even in Alberta, which has the dirtiest electricity, it is 20 per cent cleaner than gasoline. That's a help, for sure. But it also means that Albertans must electrify many more vehicles to achieve the same emissions reductions as regions with cleaner electricity.

In addition to reducing climate pollution, switching transportation to electricity brings other big benefits:

It reduces air pollution in cities — a major health hazard.

It cuts the energy required for transportation by 75 per cent — because electric motors are so much more efficient.

It reduces fuel costs up to 80 per cent — saving tens of thousands of dollars.

And for gasoline-importing provinces, using local electricity keeps billions of fuel dollars inside their provincial economy.

As an extra bonus, it makes it hard for companies to manipulate the price or for outsiders to "turn off the taps.”

 

Cleaning up buildings

Canada's third biggest source of climate pollution is the buildings sector.

Burning natural gas for heating is the primary cause. So, reducing the amount of fossil gas burned in buildings is another top climate requirement.

Canadian provincial electricity carbon intensity in 2017, plus gasoline and nat gas heating equivalent

Heating with electricity is a common alternative. However, it's not always less climate polluting. It depends on how clean the electricity is.

To compare these two heating sources, look at the lower grey-striped zone I've added to the chart.

It shows that heating with natural gas has a carbon-intensity of 200 to 300 gCO2 per kWh of heat delivered. High-efficiency gas furnaces are at the lower end of this range.

As you can see, for most Canadians, electric heat is now the much cleaner choice — nearly eliminating emissions from buildings. But in Alberta and Saskatchewan, electricity is still too dirty to replace natural gas heat.

The climate benefits of electric heat can be improved further by using the newer high-efficiency air-source heat pump technologies like mini-splits. These can heat using one half to one third of the electricity of standard electric baseboard heaters. That means it is possible to use electricity that is a bit dirtier than natural gas and still deliver cleaner heating. As a bonus, heat pumps can free up a lot of existing electricity supply when used to replace existing electric baseboards.

 

Electrify everything

You’ve probably heard people say that to fight climate breakdown, we need to “electrify everything.” Of course, the electricity itself needs to be clean and what we’ve seen is that Canada is making important progress on that front. The electricity industry, and the politicians that prodded them, all deserve kudos for slashing emissions at more than twice the rate of any other sector.

We still need to finish the cleanup job, but we also need to turn our sights to the even bigger task ahead: requiring that everything fossil fuelled — every building, every factory, every vehicle — switches to clean Canadian power.

 

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How ‘Virtual Power Plants’ Will Change The Future Of Electricity

Virtual Power Plants orchestrate distributed energy resources like rooftop solar, home batteries, and EVs to deliver grid services, demand response, peak shaving, and resilience, lowering costs while enhancing reliability across wholesale markets and local networks.

 

Key Points

Virtual Power Plants aggregate solar and batteries to provide grid services, cut peak costs, and boost reliability.

✅ Aggregates DERs via cloud to bid into wholesale markets

✅ Reduces peak demand, defers costly grid upgrades

✅ Enhances resilience vs outages, cyber risks, and wildfires

 

If “virtual” meetings can allow companies to gather without anyone being in the office, then remotely distributed solar panels and batteries can harness energy and act as “virtual power plants.” It is simply the orchestration of millions of dispersed assets within a smarter electricity infrastructure to manage the supply of electricity — power that can be redirected back to the grid and distributed to homes and businesses. 

The ultimate goal is to revamp the energy landscape, making it cleaner and more reliable. By using onsite generation such as rooftop solar and smart solar inverters in combination with battery storage, those services can reduce the network’s overall cost by deferring expensive infrastructure upgrades and by reducing the need to purchase cost-prohibitive peak power. 

“We expect virtual power plants, including aggregated home solar and batteries, to become more common and more impactful for energy consumers throughout the country in the coming years,” says Michael Sachdev, chief product officer for Sunrun Inc., a rooftop solar company, in an interview. “The growth of home solar and batteries will be most apparent in places where households have an immediate need for backup power, as they do in California, where grid reliability pressures have led utilities to turn off the electricity to reduce wildfire risk.”

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Home battery adoption, such as Tesla Powerwall systems, is becoming commonplace in Hawaii and in New England, he adds, because those distributed assets are improving the efficiency of the electrical network. It is a trend that is reshaping the country’s energy generation and delivery system by relying more on clean onsite generation and less on fossil fuels.

Sunrun has recently formed a business partnership with AutoGrid, which will manage Sunrun’s fleet of rechargeable batteries. It is a cloud-based system that allows Sunrun to work with utilities to dispatch its “storage fleet” to optimize the economic results. AutoGrid compiles the data and makes AI-driven forecasts that enable it to pinpoint potential trouble spots. 

But a distributed energy system, or a virtual power plant, would have 200,000 subsystems. Or, 200,000 5 kilowatt batteries would be the equivalent of one power plant that has a capacity of 1,000 megawatts. 

“A virtual power plant acts as a generator,” says Amit Narayan, chief executive officer of AutoGrid, in an interview. “It is one of the top five innovations of the decade. If you look at Sunrun, 60% of every solar system it sells in the Bay Area is getting attached to a battery. The value proposition comes when you can aggregate these batteries and market them as a generation unit. The pool of individual assets may improve over time. But when you add these up, it is better than a large-scale plant. It is like going from mainframe computers to laptops.”

The AutoGrid executive goes on to say that centralized systems are less reliable than distributed resources. While one battery could falter, 200,000 of them that operate from remote locations will prove to be more durable — able to withstand cyber attacks and wildfires. Sunrun’s Sachdev adds that the ability to store energy in batteries, as seen in California’s expanding grid-scale battery use supporting reliability, and to move it to the grid on demand creates value not just for homes and businesses but also for the network as a whole.

The good news is that the trend worldwide is to make it easier for smaller distributed assets, including energy storage for microgrids that support local resilience, to get the same regulatory treatment as power plants. System operators have been obligated to call up those power supplies that are the most cost-effective and that can be easily dispatched. But now regulators are giving virtual power plants comprised of solar and batteries the same treatment. 

In the United States, for example, the Federal Energy Regulatory Commission issued an order in 2018 that allows storage resources to participate in wholesale markets — where electricity is bought directly from generators before selling that power to homes and businesses. Under the ruling, virtual power plants are paid the same as traditional power suppliers. A federal appeals court this month upheld the commission’s order, saying that it had the right to ensure “technological advances in energy storage are fully realized in the marketplace.” 

“In the past, we have used back-up generators,” notes AutoGrid’s Narayan. “As we move toward more automation, we are opening up the market to small assets such as battery storage and electric vehicles. As we deploy more of these assets, there will be increasing opportunities for virtual power plants.” 

Virtual power plants have the potential to change the energy horizon by harnessing locally-produced solar power and redistributing that to where it is most needed — all facilitated by cloud-based software that has a full panoramic view. At the same time, those smaller distributed assets can add more reliability and give consumers greater peace-of-mind — a dynamic that does, indeed, beef-up America’s generation and delivery network.

 

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EPA, New Taipei spar over power plant

Shenao Power Plant Controversy intensifies as the EPA, Taipower, and New Taipei officials clash over EIA findings, a marine conservation area, fisheries, public health risks, and protests against a coal-fired plant in Rueifang.

 

Key Points

Dispute over coal plant EIA, marine overlap, and health risks, pitting EPA and Taipower against New Taipei and residents.

✅ EPA approved EIA changes; city cites marine conservation conflict

✅ Rueifang residents protest; 400+ signatures, wardens oppose

✅ Debate centers on fisheries, public health, and coal plant impacts

 

The controversy over the Shenao Power Plant heated up yesterday as Environmental Protection Administration (EPA) and New Taipei City Government officials quibbled over the project’s potential impact on a fisheries conservation area and other issues, mirroring New Hampshire hydropower clashes seen elsewhere.

State-run Taiwan Power Co (Taipower) wants to build a coal-fired plant on the site of the old Shenao plant, which was near Rueifang District’s (瑞芳) Shenao Harbor.

The company’s original plan to build a new plant on the site passed an environmental impact assessment (EIA) in 2006, similar to how NEPA rules function in the US, and the EPA on March 14 approved the firm’s environmental impact difference analysis report covering proposed changes to the project.

#google#

That decision triggered widespread controversy and protests by local residents, environmental groups and lawmakers, echoing enforcement disputes such as renewable energy pollution cases reported in Maryland.

The controversy reached a new peak after New Taipei City Mayor Eric Chu on Tuesday last week posted on Facebook that construction of wave breakers for the project would overlap with a marine conservation area that was established in November 2014.

The EPA and Taipower chose to ignore the demarcation lines of the conservation area, Chu wrote.

Dozens of residents from Rueifang and other New Taipei City districts yesterday launched a protest at 9am in front of the Legislative Yuan in Taipei, amid debates similar to the Maine power line proposal in the US, where the Health, Environment and Labor Committee was scheduled to review government reports on the project.

More than 400 Rueifang residents have signed a petition against the project, including 17 of the district’s 34 borough wardens, Anti-Shenao Plant Self-Help Group director Chen Chih-chiang said.

Ruifang residents have limited access to information, and many only became aware of the construction project after the EPA’s March 14 decision attracted widespread media coverage, Chen said,

Most residents do not support the project, despite Taipower’s claims to the contrary, Chen said.

New Power Party Executive Chairman Huang Kuo-chang, who represents Rueifang and adjacent districts, said the EPA has shown an “arrogance of power” by neglecting the potential impact on public health and the local ecology of a new coal-fired power plant, even as it moves to revise coal wastewater limits elsewhere.

Huang urged residents in Taipei, Keelung, Taoyaun and Yilan County to reject the project.

If the New Taipei City Government was really concerned about the marine conservation area, it should have spoken up at earlier EIA meetings, rather than criticizing the EIA decision after it was passed, Environmental Protection Administration Deputy Minister Chan Shun-kuei told lawmakers at yesterday’s meeting.

Chan said he wondered if Chu was using the Shenao project for political gain.

However, New Taipei City Environmental Protection Department specialist Sun Chung-wei  told lawmakers that the Fisheries Agency and other experts voiced concerns about the conservation area during the first EIA committee meeting on the proposed changes to the Shenao project on June 15 last year.

Sun was invited to speak to the legislative committee by Chinese Nationalist Party (KMT) Legislator Arthur Chen.

While the New Taipei City Fisheries and Fishing Port Affairs Management Office did not present a “new” opinion during later EIA committee meetings, that did not mean it agreed to the project, Sun said.

However, Chan said that Sun was using a fallacious argument and trying to evade responsibility, as the conservation area had been demarcated by the city government.

 

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Power Demand Seen Holding Firm In Europe’s Latest Lockdown

European Power Demand During Second Lockdowns remains resilient as winter heating offsets commercial losses; electricity consumption tracks seasonal norms, with weather sensitivity, industrial activity, natural gas shielding, and coal decline shaping dynamics under COVID-19 restrictions.

 

Key Points

It is expected to remain near seasonal norms, driven by heating, industry activity, and weather sensitive consumption.

✅ Winter heating offsets retail and hospitality closures

✅ Demand sensitivity rises with colder weather in France

✅ Gas generation shielded; coal likely to curtail first

 

European power demand is likely to hold up in the second round of national lockdown restrictions, with fluctuations most likely driven by changes in the weather.

Traders and analysts expect normal consumption this time around as home heating during the chilly season replaces commercial demand.

Last week electricity consumption in France, Germany and the U.K. was close to business-as-usual levels for the time of year, according to BloombergNEF data. By contrast, power demand had dropped 16% in the first seven days of the springtime lockdown, as reflected by the U.K.’s 10% daily decline reported then.

How power demand performs has significance outside the sector. It’s often seen as a proxy for economic growth and during lockdowns earlier this year, electricity use slumped along with GDP, and stunted hydro and nuclear output could further hobble recovery. For Western Europe, annual demand is expected to be 5% lower than the previous year, a bigger decline than after the global financial crisis in 2008, according to S&P Global Platts.

The Covid-19 limits are lighter than those from earlier in the year “with an explicit drive to preserve economic activity, particularly at the more energy-intensive industrial end of the spectrum,” said Glenn Rickson, head of European power analysis at S&P Global Platts.

Higher levels of working from home will offset some of the losses from shop and hospitality closures, “but also increase the temperature sensitivity of overall gas and power demand, as heat-driven demand records have shown in recent summers,” he said.

The latest wave of national lockdowns began in France, Germany, Spain, Italy and Britain, with Spain having seen April demand plummet earlier in the year, as coronavirus cases surged and officials struggled to keep the spread of the virus under control.

Much of the manufacturing industry remains working for now despite additional restrictions to contain the coronavirus. With the peak of the second wave yet to be reached, “it seems almost inevitable that the fourth quarter will prove economically challenging,” analysts at Alfa Energy said.

There will initially be significantly less of an impact on demand compared with this spring when global daily demand dipped about 15% and electricity consumption in Europe was down 30%, Johan Sigvardsson, power price analyst at Swedish utility Bixia AB said.

The prevalence of electric heating systems in France means that power demand is particularly sensitive to cold weather. A cold spell would significantly boost demand and drive record electricity prices in tight markets.

Similar to the last round of shutdowns, it’s use of coal that will probably be hit first if power demand sags, as transition-focused responses gather pace, leaving natural gas mostly shielded from fluctuations in the market.

“We expect that another drop in power demand would again impact coal-fired generation and shield gas power to some extent,” said Carlos Torres Diaz, an analyst at Rystad Energy.

 

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Bill Gates’ Nuclear Startup Unveils Mini-Reactor Design Including Molten Salt Energy Storage

Natrium small modular reactor pairs a sodium-cooled fast reactor with molten salt storage to deliver load-following, dispatchable nuclear power, enhancing grid flexibility and peaking capacity as TerraPower and GE Hitachi pursue factory-built, affordable deployment.

 

Key Points

A TerraPower-GE Hitachi SMR joining a sodium-cooled reactor with molten salt storage for flexible, dispatchable power.

✅ 345 MW base; 500 MW for 5.5 hours via thermal storage

✅ Sodium-cooled coolant and molten salt storage enable load-following

✅ Backed by major utilities; factory-built modules aim lower costs

 

Nuclear power is the Immovable Object of generation sources. It can take days just to bring a nuclear plant completely online, rendering it useless as a tool to manage the fluctuations in the supply and demand on a modern energy grid.  

Now a firm launched by Bill Gates in 2006, TerraPower, in partnership with GE Hitachi Nuclear Energy, believes it has found a way to make the infamously unwieldy energy source a great deal nimbler, drawing on next-gen nuclear ideas — and for an affordable price. 

The new design, announced by TerraPower on August 27th, is a combination of a "sodium-cooled fast reactor" — a type of small reactor in which liquid sodium is used as a coolant — and an energy storage system. While the reactor could pump out 345 megawatts of electrical power indefinitely, the attached storage system would retain heat in the form of molten salt and could discharge the heat when needed, increasing the plant’s overall power output to 500 megawatts for more than 5.5 hours. 

“This allows for a nuclear design that follows daily electric load changes and helps customers capitalize on peaking opportunities driven by renewable energy fluctuations,” TerraPower said. 

Dubbed Natrium after the Latin name for sodium ('natrium'), the new design will be available in the late 2020s, said Chris Levesque, TerraPower's president and CEO.

TerraPower said it has the support of a handful of top U.S. utilities, including Berkshire Hathaway Energy subsidiary Pacificorp, Energy Northwest, and Duke Energy. 

The reactor's molten salt storage add-on would essentially reprise the role currently played by coal- or gas-fired power stations or grid-scale batteries: each is a dispatchable form of power generation that can quickly ratchet up or down in response to changes in grid demand or supply. As the power demands of modern grids become ever more variable with additions of wind and solar power — which only provide energy when the wind is blowing or the sun shining — low-carbon sources of dispatchable power are needed more and more, and Europe is losing nuclear power at a difficult moment for energy security. California’s rolling blackouts are one example of what can happen when not enough power is available to be dispatched to meet peak demand. 

The use of molten salt, which retains heat at extremely high temperatures, as a storage technology is not new. Concentrated solar power plants also collect energy in the form of molten salt, although such plants have largely been abandoned in the U.S. The technology could enjoy new life alongside nuclear plants: TerraPower and GE Hitachi Nuclear are only two of several private firms working to develop reactor designs that incorporate molten salt storage units, including U.K.- and Canada-based developer Moltex Energy.

The Gates-backed venture and its partner touted the "significant cost savings" that would be achieved by building major portions of their Natrium plants through not a custom but an industrial process — a defining feature of the newest generation of advanced reactors is that their parts can be made in factories and assembled on-site — although more details on cost weren't available. Reuters reported earlier that each plant would cost around $1 billion.

NuScale Power

A day after TerraPower and GE Hitachi's unveiled their new design, another nuclear firm — Portland, Oregon-based NuScale Power — announced that the U.S. Nuclear Regulatory Commission (NRC) had completed its final safety evaluation of NuScale’s new small modular reactor design.

It was the first small modular reactor design ever to receive design approval from the NRC, NuScale said. 

The approval means customers can now pursue plans to develop its reactor design confident that the NRC has signed off on its safety aspects. NuScale said it has signed agreements with interested parties in the U.S., Canada, Romania, the Czech Republic, and Jordan, and is in the process of negotiating more. 

NuScale previously said that construction on one of its plants could begin in Utah in 2023, with the aim of completing the first Power Module in 2026 and the remaining 11 modules in 2027.

NuScale
An artist’s rendering of NuScale Power’s small modular nuclear reactor plant. NUSCALE POWER
NuScale’s reactor is smaller than TerraPower’s. Entirely factory-built, each of its Power Modules would generate 60 megawatts of power. The design, typical of advanced reactors, uses pressurized water reactor technology, with one power plant able to house up to 12 individual Power Modules. 

In a sign of the huge amounts of time and resources it takes to get new nuclear technology to the market’s doorstep, NuScale said it first completed its Design Certification Application in December 2016. NRC officials then spent as many as 115,000 hours reviewing it, NuScale said, in what was only the first of several phases in the review process. 

In January 2019, President Donald Trump signed into law the Nuclear Energy Innovation and Modernization Act (NEIMA), designed to speed the licensing process for advanced nuclear reactors, and the DOE under Secretary Rick Perry moved to advance nuclear development through parallel initiatives. The law had widespread bipartisan support, underscoring Democrats' recent tentative embrace of nuclear power.

An industry eager to turn the page

After a boom in the construction of massive nuclear power plants in the 1960s and 70s, the world's aging fleet of nuclear plants suffers from rising costs and flagging public support. Nuclear advocates have for years heralded so-called small modular reactors or SMRs as the cheaper and more agile successors to the first generation of plants, and policy moves such as the UK's green industrial revolution lay out pathways for successive waves of reactors. But so far a breakthrough on cost has proved elusive, and delays in development timelines have been abundant. 

Edwin Lyman, the director of nuclear power safety at the Union of Concerned Scientists, suggested on Twitter that the nuclear designs used by TerraPower and GE Hitachi had fallen short of a major innovation. “Oh brother. The last thing the world needs is a fleet of sodium-cooled fast reactors,” he wrote.  

Still, climate scientists view nuclear energy as a crucial source of zero-carbon energy, with analyses arguing that net-zero emissions may be impossible without nuclear in many scenarios, if the world stands a chance at limiting global temperature increases to well below 2 degrees Celsius above pre-industrial levels. Nearly all mainstream projections of the world’s path to keeping the temperature increase below those levels feature nuclear energy in a prominent role, including those by the United Nations and the International Energy Agency (IEA). 

According to the IEA: “Achieving the clean energy transition with less nuclear power is possible but would require an extraordinary effort.”

 

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