BC Hydro pulls plug on power project

By Globe and Mail


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A proposed $2.5-billion run-of-river project on the Klinaklini River is dead, dropped from BC Hydro's roster for clean-power contracts one day after Environment Minister Barry Penner vowed to oppose the scheme.

The Kleana power project would have generated two-thirds as much energy as the massive Site C dam that the provincial government has approved on the Peace River.

Kleana's president said the project could be built with a fraction of the ecological footprint of Site C, but Mr. Penner said it threatened protected wetlands, fish-bearing streams, old-growth forest and grizzly-bear habitat.

The project would have required a weir, or dam, as high as 30 metres. The proposal was in the hands of BC Hydro, an arm's-length Crown corporation. But Mr. Penner had some leverage: The proposal required his approval to change the boundaries of a nature conservancy that is part of what is known as the Great Bear Rainforest, a protected area developed after a decade of consultation with environmentalists.

"I will not be recommending that the boundaries of the Upper Klinaklini conservancy be amended in order to facilitate this project," Mr. Penner told the legislature.

BC Hydro approved two new electricity purchase agreements under its Clean Power Call. Notably absent was the Kleana power project, and an official confirmed it is no longer under consideration.

"We are delighted," said Vicky Husband, of the Watershed Watch Salmon Society. The run of the river project was so large, she said, it shouldn't be measured as green energy.

"This was not a project that should have ever been considered," she added.

Claire Trevena, the New Democratic Party MLA for North Island, applauded Mr. Penner's decision.

"It would have meant the mass industrialization of the Klinaklini River," she said. "The fact that the minister has now said that it won't be going ahead is great news for that river - but we still have lots of projects that are of great concern in the rush for private power."

Under the Clean Energy Act introduced in the legislature, BC Hydro will not be allowed to even entertain proposals for power projects if they fall within a park or conservancy. But the legislation is not yet in force, and groups such as Ms. Husband's were concerned that the Kleana project could be approved in the interim.

Mr. Penner said BC Hydro should have understood the government's intent, however, when it tabled that provision. "It's pretty clear direction to BC Hydro, to put something in a statute," he said in an interview.

Alexander Eunall, president of Kleana, could not be reached for comment. But in an earlier interview, he defended the project as far cleaner than the proposed Site C dam, which has been sent for an environmental assessment.

"It is the cleanest kilowatt hours produced anywhere in British Columbia," he said. Asked whether the new Clean Energy Act would effectively kill his proposal, he suggested the proposal could still be amended. "We will adapt and adjust and move forward."

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Florida says no to $400M in federal solar energy incentives

Florida Solar for All Opt-Out highlights Gov. DeSantis rejecting EPA grant funds under the Inflation Reduction Act, limiting low-income households' access to solar panels, clean energy programs, and promised electricity savings across disadvantaged communities.

 

Key Points

Florida Solar for All Opt-Out is the state declining EPA grants, restricting low-income access to solar energy savings.

✅ EPA grant under IRA aimed at low-income solar

✅ Estimated 20% electricity bill savings missed

✅ Florida lacks PPAs and renewable standards

 

Florida has passed up on up to $400 million in federal money that would have helped low-income households install solar panels.

A $7 billion grant “competition” to promote clean energy in disadvantaged communities by providing low-income households with access to affordable solar energy was introduced by President Joe Biden earlier this year, and despite his climate law's mixed results in practice, none of that money will reach Florida households.

The Environmental Protection Agency announced the competition in June as part of Biden’s Inflation Reduction Act. However, Florida Gov. Ron DeSantis has decided to pass on the $400 million up for grabs by choosing to opt out of the opportunity.

Inflation Reduction Act:What is the Inflation Reduction Act? Everything to know about one of Biden's big laws

The program would have helped Florida households reduce their electricity costs by a minimum of 20% during a key time when Floridians are leaving in droves due to a rising cost of living associated with soaring insurance costs, inflation, and proposed FPL rate hikes statewide.

Florida was one of six other states that chose not to apply for the money.

President Joe Biden announced a $7 billion “competition” to promote clean energy in disadvantaged communities.

The opportunity, named “Solar for All,” was announced by the EPA in June and promised to provide up to $7 billion in grants to states, territories, tribal governments, municipalities, and nonprofits to expand the number of low-income and disadvantaged communities primed for residential solar investment — enabling millions of low-income households to access affordable, resilient and clean solar energy.

The grant is intended to help lower energy costs for families, create jobs and help reduce greenhouse effects that accelerate global climate change by providing financial support and incentives to communities that were previously locked out of investments.


How much money would Floridians save under the ‘Solar for All’ solar panel grant?

The program aims to reduce household electricity costs by at least 20%. Florida households paid an average of $154.51 per month for electricity in 2022, just over 14% of the national average of $135.25, and debates over hurricane rate surcharges continue to shape customer bills, according to the U.S. Energy Information Administration. A 20% savings would drop those bills down to around $123 per month.

On the campaign trail, DeSantis has pledged to unravel Biden’s green energy agenda if elected president, amid escalating solar policy battles nationwide, slamming the Inflation Reduction Act and what he called “a concerted effort to ramp up the fear when it comes to things like global warming and climate change.”

His energy agenda includes ending Biden’s subsidies for electric cars while pushing policies that he says would ramp up domestic oil production.

“The subsidies are going to drive inflation higher,” DeSantis said at an event in September. “It’s not going to help with interest rates, and it is certainly not going to help with our unsustainable debt levels.”

DeSantis heading to third debate:As he enters third debate, Ron DeSantis has a big Nikki Haley problem

DeSantis’ plan to curb clean energy usage in Florida seems to be at odds with the state as a whole, and the region's evolving strategy for the South underscores why it has been ranked among the top three states to go solar since 2019, according to the Solar Energy Industries Association (SEIA).

SEIA also shows, however, that Florida lags behind many other states when it comes to solar policies, as utilities tilt the solar market in ways that influence policy outcomes statewide. Florida, for instance, has no renewable energy standards, which are used to increase the use of renewable energy sources for electricity by requiring or encouraging suppliers to provide customers with a stated minimum share of electricity from eligible renewable resources, according to the EIA.

Power purchase agreements, which can help lower the cost of going solar through third-party financing, are also not allowed in Florida, with court rulings on monopolies reinforcing the existing market structure. And there have been other policies implemented that drove other potential solar investments to other states.

 

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Ontario Power Generation's Commitment to Small Modular Reactors

OPG Small Modular Reactors advance clean energy with advanced nuclear, baseload power, renewables integration, and grid reliability; factory built, scalable, and cost effective to support Ontario energy security and net zero goals.

 

Key Points

Factory built nuclear units delivering reliable, low carbon power to support Ontario's grid, renewables, climate goals.

✅ Factory built modules cut costs and shorten schedules

✅ Provides baseload power to balance wind and solar

✅ Enhances grid reliability with advanced safety and waste reduction

 

Ontario Power Generation (OPG) is at the forefront of Canada’s energy transformation, demonstrating a robust commitment to sustainable energy solutions. One of the most promising avenues under exploration is the development of Small Modular Reactors (SMRs), as OPG broke ground on the first SMR at Darlington to launch this next phase. These innovative technologies represent a significant leap forward in the quest for reliable, clean, and cost-effective energy generation, aligning with Ontario’s ambitious climate goals and energy security needs.

Understanding Small Modular Reactors

Small Modular Reactors are advanced nuclear power plants that are designed to be smaller in size and capacity compared to traditional nuclear reactors. Typically generating up to 300 megawatts of electricity, SMRs can be constructed in factories and transported to their installation sites, offering flexibility and scalability that larger reactors do not provide. This modular approach reduces construction time and costs, making them an appealing option for meeting energy demands.

One of the key advantages of SMRs is their ability to provide baseload power—energy that is consistently available—while simultaneously supporting intermittent renewable sources like wind and solar. As Ontario continues to increase its reliance on renewables, SMRs could play a crucial role in ensuring that the energy supply remains stable and secure.

OPG’s Initiative

In its commitment to advancing clean energy technologies, OPG has been a strong advocate for the adoption of SMRs. The province of Ontario has announced plans to develop three additional small modular reactors, part of its plans for four Darlington SMRs that would further enhance the region’s energy portfolio. This initiative aligns with both provincial and federal climate objectives, and reflects a collaborative provincial push on nuclear innovation to accelerate clean energy.

The deployment of SMRs in Ontario is particularly strategic, given the province’s existing nuclear infrastructure, including the continued operation of Pickering NGS that supports grid reliability. OPG operates a significant portion of Ontario’s nuclear fleet, and leveraging this existing expertise can facilitate the integration of SMRs into the energy mix. By building on established operational frameworks, OPG can ensure that new reactors are deployed safely and efficiently.

Economic and Environmental Benefits

The introduction of SMRs is expected to bring substantial economic benefits to Ontario. The construction and operation of these reactors will create jobs, including work associated with the Pickering B refurbishment across the province, stimulate local economies, and foster innovation in nuclear technology. Additionally, SMRs have the potential to attract investment from both domestic and international stakeholders, positioning Ontario as a leader in advanced nuclear technology.

From an environmental perspective, SMRs are designed with enhanced safety features and lower waste production compared to traditional reactors, complementing life-extension measures at Pickering that bolster system reliability. They can significantly contribute to Ontario’s goal of achieving net-zero emissions by 2050. By providing a reliable source of clean energy, SMRs will help mitigate the impacts of climate change while supporting the province's transition to a sustainable energy future.

Community Engagement and Collaboration

Recognizing the importance of community acceptance and stakeholder engagement, OPG is committed to an open dialogue with local communities and Indigenous groups. This collaboration is essential to addressing concerns and ensuring that the deployment of SMRs is aligned with the values and priorities of the residents of Ontario. By fostering a transparent process, OPG aims to build trust and support for this innovative energy solution.

Moreover, the development of SMRs will involve partnerships with various stakeholders, including government agencies, research institutions, and private industry, such as the OPG-TVA partnership to advance new nuclear technology. These collaborations will not only enhance the technical aspects of SMR deployment but also ensure that Ontario can capitalize on shared expertise and resources.

Looking Ahead

As Ontario Power Generation moves forward with plans for three additional Small Modular Reactors, the province stands at a critical juncture in its energy evolution. The integration of SMRs into Ontario’s energy landscape promises a sustainable, reliable, and economically viable solution to meet growing energy demands while addressing climate change challenges.

With the support of government initiatives, community collaboration, and continued innovation in nuclear technology, Ontario is poised to become a leader in the advancement of Small Modular Reactors. The successful implementation of these projects could serve as a model for other jurisdictions seeking to transition to cleaner energy sources, highlighting the role of nuclear power in a balanced and sustainable energy future.

In conclusion, OPG's commitment to developing Small Modular Reactors not only reinforces Ontario’s energy security but also demonstrates a proactive approach to addressing the pressing challenges of climate change and environmental sustainability. The future of energy in Ontario looks promising, driven by innovation and a commitment to clean energy solutions.

 

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Sycamore Energy taking Manitoba Hydro to court, alleging it 'badly mismanaged' Solar Energy Program

Sycamore Energy Manitoba Hydro Lawsuit centers on alleged mismanagement of the solar rebate incentive program, project delays, inspection backlogs, and alleged customer interference, impacting renewable energy installations, contractors, and clean power investment across Manitoba.

 

Key Points

Claim alleging mismanagement of Manitoba's solar rebate, delays, and inducing customers to switch installers.

✅ Lawsuit alleges mismanaged solar rebate incentive program

✅ Delays in inspections left hundreds of projects incomplete

✅ Claims Hydro urged customers to switch installers for rebates

 

Sycamore Energy filed a statement of claim Monday in Manitoba Court of Queens Bench against Manitoba Hydro saying it badly mismanaged its Solar Energy Program, a dispute that comes as Canada's solar progress faces criticism nationwide.

The claim also noted the crown corporation caused significant financial and reputational damage to Sycamore Energy, echoing disputes like Ontario wind cancellation costs seen elsewhere.

The statement of claim says Manitoba Hydro was telling customers to find other companies to complete solar panel installations, even as Nova Scotia's solar charge debate has unfolded.

'I'm still waiting': dozens of Manitoba solar system installations in the queue under expired incentive program
This all comes after a pilot project was launched in the province in April 2016, which would allow people to apply for a rebate under the incentive program, while Saskatchewan adjusted solar credits in parallel, and the project would cover about 25 per cent of the installation costs.

The project ended in April 2018, but hundreds of approved projects had yet to be finished.

According to Manitoba Hydro, in November there were 252 approved projects awaiting completion by more than one contractor, and Sycamore Energy said it had about 100 of those projects, a dynamic seen as New England's solar growth strains grid upgrades in other regions.

At the time Sycamore Energy COO, Alex Stuart, blamed Manitoba Hydro for the delays, stating it took too long to get inspections after solar systems were installed.

Scott Powell, Manitoba Hydro’s director of corporate communications, said in November he disagreed with Sycamore Energy’s comments, even as Ontario moves to reintroduce renewables elsewhere.

In a news release, the company said it sold more installations under Manitoba Hydro’s Solar Energy Program compared to other companies and it was instrumental in helping set up standards for the program.

“Manitoba Hydro mismanaged the solar rebate program from the beginning. In the end, they targeted our company unfairly and unlawfully by inducing our customers to break their contracts with us. Manitoba Hydro told our customers they could get an extension to their rebate but only if they switched to different installers,” said Justin Phillips, CEO of Sycamore Energy in a news release.

“We would much rather be installing clean, effective solar power projects for our customers right now. The last thing we want to do is to be suing Manitoba Hydro, but we feel we have no choice. Their actions have cost us millions in lost business. They’ve also cost the province jobs, millions in private investment and a positive way forward to help combat climate change.”

Manitoba Hydro now has 20 days to respond to the action, and a recent Cornwall wind-farm ruling underscores the stakes.

When asked for a response from CTV News, a spokesperson for the Crown corporation said it hadn’t yet been made aware of the suit.

“If a statement of claim is filed and served, we’ll file a statement of defence in due course. As this matter is now apparently before the courts, we have no further comment,” the spokesperson said.

None of these allegations have been proven in court.

 

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Tunisia moves ahead with smart electricity grid

Tunisia Smart Grid Project advances with an AFD loan as STEG deploys smart meters in Sfax, upgrades grid infrastructure, boosts energy efficiency, curbs losses, and integrates renewable energy through digitalization and advanced communication systems.

 

Key Points

A national program funded by an AFD $131.7M loan to modernize STEG, deploy smart meters, and integrate renewable energy.

✅ 430,000 smart meters in Sfax during phase one

✅ 20-year AFD loan with 7-year grace period

✅ Cuts losses, improves efficiency, enables renewables

 

The Tunisian parliament has approved taking a $131.7 million loan from the French Development Agency for the implementation of a smart grid project.

Parliament passed legislation regarding the 400 million dinar ($131.7 million) loan plus a grant of $1.1 million.

The loan, to be repaid over 20 years with a grace period of up to 7 years, is part of the Tunisian government’s efforts to establish a strategy of energy switching aimed at reducing costs and enhancing operational efficiency.

The move to the smart grid had been postponed after the Tunisian Company of Electricity and Gas (STEG) announced in March 2017 that implementation of the first phase of the project would begin in early 2018 and cover the entire country by 2023.

STEG was to have received funding some time ago. Last year at the Africa Smart Grid Summit in Tunis, the company said it would initiate an international tender during the first quarter of 2019 to start the project.

The French funding is to be allocated to implementation of the first phase only, which will involve development of control and communication stations and the improvement of infrastructure, where regulatory outcomes such as the Hydro One T&D rates decision can influence investment planning in comparable markets.

It includes installation of 430,000 “intelligent” metres over three years in Sfax governorate in southern Tunisia. The second phase of the project is planned to extend the programme to the rest of the country.

Smart metres to be installed in homes and businesses in Sfax account for about 10% of the total number of metres to be deployed in Tunisia.

At the beginning of 2017, the Industrial Company of Metallic Articles (SIAM), a Tunisian industrial electrical equipment and machinery company, signed an agreement with Huawei for the Chinese company to supply smart electricity metres. The value of the deal was not disclosed.

The smart grid is designed to reduce power waste, reduce the number of unpaid bills, prevent consumer fraud such as power theft in India across distribution networks, improve the ecosystem and increase competitiveness in the electricity sector.

Experts said the main difference between the traditional and smart grids is the adoption of advanced infrastructure for measuring electricity consumption and for communication between the power plant and consumers. The data exchange allows power plants to coordinate electricity production with actual demand.

STEG previously indicated that it had implemented measures to ensure the transition to the smart grid, especially since digitalisation is playing an important role in the energy sector.

The project, which translates Tunisia’s energy plans in the form of a partnership between the public and private sectors, aims at reaching 30% of the country’s electricity need from renewable sources by 2025, even as entities like the TVA face climate goals scrutiny that can affect electricity rates in other markets.

The development of the smart grid will allow STEG to monitor consumption patterns, detect abuses and remotely monitor the grid’s power supply, at a time when regulators have questioned UK network profits to spur efficiency, underscoring the value of transparency.

“The smart grid will change the face of the energy system towards the use of renewable energies,” said Tunisian Industry Minister Slim Feriani. At the forum on alternative energies, he pointed out that energy sector digitisation requires investments in technology and a change in the consumption mentality, as new entrants consider roles like Tesla electricity retailer plans in advanced markets.

Official data indicate that Tunisia’s energy deficit accounts for one-third of the country’s annual trade deficit, which reached record levels of more than $6 billion last year.

STEG, whose debts have reached $329 million over the past eight years, a situation resembling Manitoba Hydro debt pressures in Canada, has not disclosed when and how funding would be secured for the completion of the second phase. The company insists it is working to prevent further losses and to collect its unpaid bills.

STEG CEO Moncef Harrabi, earlier this year, said: “The current situation of the company has forced us to take immediate action to reduce the worsening of the crisis and stop the financial bleeding caused by losses.”

He said the company had repeatedly asked the government to pay subsidy instalments due to the company and to enact binding decisions to force government institutions and departments to pay electricity bills, while elsewhere measures like Thailand power bill cuts have been used to support consumers.

The Tunisian government has yet to disburse the subsidy instalments due STEG for 2018 and 2019, which amount to $658 million. STEG also imports natural gas from Algeria for its power plants at a cost of $1.1 billion a year.

 

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U.S. power companies face supply-chain crisis this summer

U.S. Power Grid Supply Shortages strain reliability as heat waves, hurricanes, and drought drive peak demand; transformer scarcity, gas constraints, and renewable delays raise outage risks across ERCOT and MISO, prompting FERC warnings.

 

Key Points

They are equipment and fuel constraints that, amid extreme weather and peak demand, elevate outage risks.

✅ Transformer shortages delay storm recovery and repairs.

✅ Record gas burn, low hydro tighten generation capacity.

✅ ERCOT and MISO warn of rolling outages in heat waves.

 

U.S. power companies are facing supply crunches amid the U.S. energy crisis that may hamper their ability to keep the lights on as the nation heads into the heat of summer and the peak hurricane season.

Extreme weather events such as storms, wildfires and drought are becoming more common in the United States. Consumer power use is expected to hit all-time highs this summer, reflecting unprecedented electricity demand across the Eastern U.S., which could strain electric grids at a time when federal agencies are warning the weather could pose reliability issues.

Utilities are warning of supply constraints for equipment, which could hamper efforts to restore power during outages. They are also having a tougher time rebuilding natural gas stockpiles for next winter, after the Texas power system failure highlighted cold-weather vulnerabilities, as power generators burn record amounts of gas following the shutdown of dozens of coal plants in recent years and extreme drought cuts hydropower supplies in many Western states.

"Increasingly frequent cold snaps, heat waves, drought and major storms continue to challenge the ability of our nation’s electric infrastructure to deliver reliable affordable energy to consumers," Richard Glick, chairman of the U.S. Federal Energy Regulatory Commission (FERC), said earlier this month.

Federal agencies responsible for power reliability like FERC have warned that grids in the western half of the country could face reliability issues this summer as consumers crank up air conditioners to escape the heat, with nationwide blackout risks not limited to Texas. read more

Some utilities have already experienced problems due to the heat. Texas' grid operator, the Electric Reliability Council of Texas (ERCOT), was forced to urge customers to conserve energy as the Texas power grid faced another crisis after several plants shut unexpectedly during an early heat wave in mid-May. read more

In mid-June, Ohio-based American Electric Power Co (AEP.O) imposed rolling outages during a heat wave after a storm damaged transmission lines and knocked out power to over 200,000 homes and businesses.

The U.S. Midwest faces the most severe risk because demand is rising while nuclear and coal power supplies have declined. read more

The Midcontinent Independent System Operator (MISO), which operates the grid from Minnesota to Louisiana, warned that parts of its coverage area are at increased risk of temporary outages to preserve the integrity of the grid.

Supply-chain issues have already delayed the construction of renewable energy projects across the country, and the aging U.S. grid is threatening progress on renewables and EVs. Those renewable delays coupled with tight power in the Midwest prompted Wisconsin's WEC Energy Group Inc (WEC.N) and Indiana's NiSource Inc (NI.N) to delay planned coal plant shutdowns in recent months.

BRACING FOR SUPPLY SHORTAGES
Utility operators are conserving their inventory of parts and equipment as they plan to prevent summer power outages during severe storms. Over the last several months, that means operators have been getting creative.

"We’re doing a lot more splicing, putting cables together, instead of laying new cable because we're trying to maintain our new cable for inventory when we need it," Nick Akins, chief executive of AEP, said at the CERAWeek energy conference in March.

Transformers, which often sit on top of electrical poles and convert high-voltage energy to the power used in homes, are in short supply.

New Jersey-based Public Service Enterprise Group Inc (PSEG) (PEG.N) Chief Executive Ralph Izzo told Reuters the company has had to look at alternate supply options for low voltage transformers.

"You don’t want to deplete your inventory because you don't know when that storm is coming, but you know it's coming," Izzo said.

Some utilities are facing waiting times of more than a year for transformer parts, the National Rural Electric Cooperative Association and the American Public Power Association told U.S. Energy Secretary Jennifer Granholm in a May letter.

Summer is just starting, but U.S. weather so far this year has already been about 21% warmer than the 30-year norm, according to data provider Refinitiv.

"If we have successive days of 100-degree-heat, those pole top transformers, they start popping like Rice Krispies, and we would not have the supply stack to replace them," Izzo said.

 

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Newsom Vetoes Bill to Codify Load Flexibility

California Governor Gavin Newsom vetoed a bill aimed at expanding load flexibility in state grid planning, citing conflicts with California’s resource adequacy framework and concerns over grid reliability and energy planning uncertainty.

 

Why has Newsom vetoed the Bill to Codify Load Flexibility?

Governor Gavin Newsom’s veto blocks legislation that would have required the California Energy Commission to incorporate load flexibility into the state’s energy planning and policy framework, a move that has stirred debate across the clean energy sector.

✅ Argues the bill conflicts with California’s existing Resource Adequacy system

✅ Draws backlash from clean energy and grid modernization advocates

✅ Exposes ongoing tension over how to manage renewable integration and demand response

 

California Governor Gavin Newsom has vetoed Assembly Bill 44, which would have required the California Energy Commission to evaluate and incorporate load management mechanisms into the state’s energy planning process. The move drew criticism from clean energy advocates who say it undermines efforts to strengthen grid reliability and reduce costs.

The bill directed the commission to adopt “upfront technical requirements and load modification protocols” that would allow load-serving entities to adjust their electrical demand forecasts. Proponents viewed this as a way to modernize California’s grid management, and to explore a revamp of electricity rates to help clean the grid, making it more responsive to demand fluctuations and renewable energy variability.

In his veto statement, Newsom said the bill was incompatible with existing energy planning frameworks, even as a looming electricity shortage remains a concern. “While I support expanding electric load flexibility, this bill does not align with the California Public Utility Commission’s Resource Adequacy framework,” he said. “As a result, the requirements of this bill would not improve electric grid reliability planning and could create uncertainty around energy resource planning and procurement processes.”

Newsom’s decision comes shortly after he signed a broad package of energy legislation that set the stage for a regional Western electricity market and extended the state’s cap-and-trade program. However, that legislative package did not include continued funding for several key grid reliability programs — including what advocates have called the world’s largest virtual power plant, a distributed network of connected devices that can balance electricity demand in real time.

Clean energy supporters saw AB 44 as a crucial step toward integrating these distributed energy resources into long-term grid planning. “With Assembly Bill 44 being vetoed, the state has missed a huge opportunity to advance common-sense policy that would have lowered costs, strengthened the grid, and unlocked the full potential of advanced energy,” said Edson Perez, California lead at Advanced Energy United.

Perez added that the setback increases pressure on lawmakers to take stronger action in the next legislative session. “The pressure is on next session to ensure that California is using all tools in its policy toolbox to build critically needed infrastructure, strengthen the grid, and bring costs down,” he said.

California’s growing use of demand response programs and virtual power plants has been central to its strategy for managing grid stress during heat waves and wildfire seasons. These systems allow utilities and customers to temporarily reduce or shift energy use, helping to prevent blackouts and reduce the need for fossil-fuel peaker plants during peak demand.

A recent report by the Brattle Group found that California’s taxpayer-funded virtual power plant could save ratepayers $206 million between 2025 and 2028 while reducing reliance on gas generation. The study, commissioned by Sunrun and Tesla Energy, highlighted the potential for flexible load management to improve both grid reliability and reduce costs, even as regulators weigh whether the state needs more power plants to ensure reliability.

Despite these findings, Newsom’s veto signals continued tension between state policymakers and clean energy advocates over how best to modernize California’s power grid. While the governor has prioritized large-scale renewable development and regional market integration, critics argue that California’s climate policy choices risk exacerbating reliability challenges and that failing to codify load flexibility could slow progress toward a more adaptive, resilient, and affordable clean energy future.

 

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