Flickering lights cast shadows on EDF sale

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The £4 billion sale of EDF’s British electricity distribution business is being hampered by concerns about the network’s poor reliability, the chief executive of Scottish and Southern Energy claimed.

Ian Marchant said that SSE, BritainÂ’s second-largest energy supplier, was one of three remaining bidders for the business, which was put up for sale last year by EDF, the French state-controlled energy group.

However, he said that the due diligence process had uncovered evidence of the poor state of the network, which includes 100,000 miles of cable across eastern England, London and the South East. He said: “The early signs are that the operational challenges are bigger than we thought. Their supply reliability statistics have deteriorated. They are less integrated than we thought they would be.”

Mr Marchant also indicated that the operational problems were likely to affect the sale price. “We believe as an experienced operator that we can tackle those challenges and the question will come down to price,” he said.

SSE is bidding with the Canadian infrastructure fund Borealis.

The network, which conveys about 20 per cent of the UKÂ’s energy supplies, includes links to some of BritainÂ’s most critical infrastructure, including Heathrow and Gatwick airports and the Canary Wharf business district.

Mr Marchant said that he expected a deal with EDF to be finalized in July or August. Other bidders include the Hong-Kong-based Cheung Kong Infrastructure and a consortium comprising the sovereign wealth fund Abu Dhabi Investment Authority, Macquarie Capital and Canada Pension Plan. Indicative bids were submitted in March and companies are expected to submit binding offers by the end of this month.

SSE said its pre-tax profits rose to £1.29 billion during the year that ended on March 31, in line with expectations.

• EDF has been called in by Westminster Council over the reliability of its London power network after a string of power cuts across the capital. On November 18 last year power was interrupted to hundreds of customers in the West End, leading to the cancellation of several theatre shows and the stranding of 500 pensioners who had free tickets to Les Misérables. A meeting with the council’s built environment committee is scheduled for June 8.

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Trump Is Seen Replacing Obama’s Power Plant Overhaul With a Tune-Up

Clean Power Plan Rollback signals EPA's shift to inside-the-fence efficiency at coal plants, emphasizing heat-rate improvements over sector-wide decarbonization, renewables, natural gas switching, demand-side efficiency, and carbon capture under Clean Air Act constraints.

 

Key Points

A policy shift by the EPA to replace broad emissions rules with plant-level efficiency standards, limiting CO2 cuts.

✅ Inside-the-fence heat-rate improvements at coal units

✅ Potential CO2 cuts limited to about 6% per plant

✅ Alternatives: fuel switching, renewables, carbon capture

 

President Barack Obama’s signature plan to reduce carbon dioxide emissions from electrical generation took years to develop and touched every aspect of power production and use, from smokestacks to home insulation.

The Trump administration is moving to scrap that plan and has signaled that any alternative it might adopt would take a much less expansive approach, possibly just telling utilities to operate their plants more efficiently.

That’s a strategy environmentalists say is almost certain to fall short of what’s needed.

The Trump administration is making "a wholesale retreat from EPA’s legal, scientific and moral obligation to address the threats of climate change," said former Environmental Protection Agency head Gina McCarthy, the architect of Obama’s Clean Power Plan.

President Donald Trump promised to rip up the initiative, echoing an end to the 'war on coal' message from his campaign, which mandated that states change their overall power mix, displacing coal-fired electricity with that from wind, solar and natural gas. The EPA is about to make it official, arguing the prior administration violated the Clean Air Act by requiring those broad changes to the electricity sector, according to a draft obtained by Bloomberg.

 

Possible Replacements

Later, the agency will also ask the public to weigh in on possible replacements. The administration will ask whether the EPA can or should develop a replacement rule -- and, if so, what actions can be mandated at individual power plants, though some policymakers favor a clean electricity standard to drive broader decarbonization.

 

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Such changes -- such as adding automation or replacing worn turbine seals -- would yield at most a 6 percent gain in efficiency, along with a corresponding fall in greenhouse gas emissions, according to earlier modeling by the Environmental Protection Agency and other analysts. That compares to the 32 percent drop in emissions by 2030 under Obama’s Clean Power Plan.

"In these existing plants, there’s only so many places to look for savings," said John Larsen, a director of the Rhodium Group, a research firm. "There’s only so many opportunities within a big spinning machine like that."

EPA Administrator Scott Pruitt outlined such an "inside-the-fence-line" approach in 2014, later embodied in the Affordable Clean Energy rule that industry groups backed, when he served as Oklahoma’s attorney general. Under his blueprint, states would set emissions standards after a detailed unit-by-unit analysis, looking at what reductions are possible given "the engineering limits of each facility."

The EPA has not decided whether it will promulgate a new rule at all, though it has also proposed new pollution limits for coal and gas plants in separate actions. In a forthcoming advanced notice of proposed rulemaking, the EPA will ask "what inside-the-fence-line options are legal, feasible and appropriate," according to a document obtained by Bloomberg.

Increased efficiency at a coal plant -- known as heat-rate improvement -- translates into fewer carbon-dioxide emissions per unit of electric power generated.

Under Obama, the EPA envisioned utilities would make some straightforward efficiency improvements at coal-fired power plants as the first step to comply with the Clean Power Plan. But that was expected to coincide with bigger, broader changes -- such as using more cleaner-burning natural gas, adding more renewable power projects and simply encouraging customers to do a better job turning down their thermostats and turning off their lights.

Obama’s EPA didn’t ask utilities to wring every ounce of efficiency they could out of coal-fired power plants because they saw the other options as cheaper. A plant-specific approach "would be grossly insufficient to address the public health and environmental impacts from CO2 emissions," Obama’s EPA said.

That approach might yield modest emissions reductions and, in a perverse twist, might event have the opposite effect. If utilities make coal plants more efficient -- thereby driving down operating costs -- they also make them more competitive with natural gas and renewables, "so they might run more and pollute more," said Conrad Schneider, advocacy director for the Clean Air Task Force.  

In a competitive market, any improvement in emissions produced for each unit of energy could be overwhelmed by an increase in electrical output, and debates over changes to electricity pricing under Trump and Perry added further uncertainty.

"A very minor heat rate improvement program would very likely result in increased emissions," Schneider said. "It might be worse than nothing."

Power companies want to get as much electricity as possible from every pound of coal, so they already have an incentive to keep efficiency high, said Jeff Holmstead, a former assistant EPA administrator now at Bracewell LLP. But an EPA regulation known as “new source review” has discouraged some from making those changes, for fear of triggering other pollution-control requirements, he said.

"If EPA’s replacement rule allows companies to improve efficiency without triggering new source review, it would make a real difference in terms of reducing carbon-dioxide emissions," Holmstead said.

 

Modest Impact

A plant-specific approach doesn’t have to mean modest impact.

"If you’re thinking about what can be done at the power plants by themselves, you don’t stop at efficiency tune-ups," said David Doniger, director of the Natural Resources Defense Council’s climate and clean air program. "You look at things like switching to natural gas or installing carbon capture and storage."

Requirements that facilities use carbon capture technology or swap in natural gas for coal could actually come close to hitting the same goals as in Obama’s Clean Power Plan -- if not go even further, Schneider said. They just would cost more.

The benefit of the Clean Power Plan "is that it enabled states to create programs and enabled companies to find a reduction strategy that was the most efficient and made the most sense for their own content," said Kathryn Zyla, deputy director of the Georgetown Climate Center. "And that flexibility was really important for the states and companies."

Some utilities, including Houston-based Calpine Corp., PG&E Corp. and Dominion Resources Inc., backed the Obama-era approach. And they are still pushing the Trump administration to be creative now.

"The Clean Power Plan achieved a thoughtful, balanced approach that gave companies and states considerable flexibility on how best to pursue that goal," said Melissa Lavinson, vice president of federal affairs and policy for PG&E’s Pacific Gas and Electric utility. “We look forward to working with the administration to devise an alternative plan for decarbonizing the U.S. economy."

 

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Can the Electricity Industry Seize Its Resilience Moment?

Hurricane Grid Resilience examines how utilities manage outages with renewables, microgrids, and robust transmission and distribution systems, balancing solar, wind, and batteries to restore service, harden infrastructure, and improve storm response and recovery.

 

Key Points

Hurricane grid resilience is a utility approach to withstand storms, reduce outages, and speed safe power restoration.

✅ Focus on T&D hardening, vegetation management, remote switching

✅ Balance generation mix; integrate solar, wind, batteries, microgrids

✅ Plan 12-hour shifts; automate forecasting and outage restoration

 

When operators of Duke Energy's control room in Raleigh, North Carolina wait for a hurricane, the mood is often calm in the hours leading up to the storm.

“Things are usually fairly quiet before the activity starts,” said Mark Goettsch, the systems operations manager at Duke. “We’re anxiously awaiting the first operation and the first event. Once that begins, you get into storm mode.”

Then begins a “frenzied pace” that can last for days — like when Hurricane Florence parked over Duke’s service territory in September.

When an event like Florence hits, all eyes are on transmission and distribution. Where it’s available, Duke uses remote switching to reconnect customers quickly. As outages mount, the utility forecasts and balances its generation with electricity demand.

The control center’s four to six operators work 12-hour shifts, while nearby staff members field thousands of calls and alarms on the system. After it’s over, “we still hold our breath a little bit to make sure we’ve operated everything correctly,” said Goettsch. Damage assessment and rebuilding can only begin once a storm passes.

That cycle is becoming increasingly common in utility service areas like Duke's.

A slate of natural disasters that reads like a roll call — Willa, Michael, Harvey, Irma, Maria, Florence and Thomas — has forced a serious conversation about resiliency. And though Goettsch has heard a lot about resiliency as a “hot topic” at industry events and meetings, those conversations are only now entering Duke’s control room.

Resilience discussions come and go in the energy industry. Storms like Hurricane Sandy and Matthew can spur a nationwide focus on resiliency, but change is largely concentrated in local areas that experienced the disaster. After a few news cycles, the topic fades into the background.

However, experts agree that resilience is becoming much more important to year-round utility planning and operations as utilities pursue decarbonization goals across their fleets. It's not a fad.

“If you look at the whole ecosystem of utilities and vendors, there’s a sense that there needs to be a more resilient grid,” said Miki Deric, Accenture’s managing director of utilities, transmission and distribution for North America. “Even if they don’t necessarily agree on everything, they are all working with the same objective.”

Can renewables meet the challenge?

After Hurricane Florence, The Intercept reported on coal ash basins washed out by the storm’s overwhelming waters. In advance of that storm, Duke shut down one nuclear plant to protect it from high winds. The Washington Post also recently reported on a slowly leaking oil spill, which could surpass Deepwater Horizon in size, caused by Hurricane Ivan in 2004.

Clean energy boosters have seized on those vulnerabilities.They say solar and wind, which don’t rely on access to fuel and can often generate power immediately after a storm, provide resilience that other electricity sources do not.

“Clearly, logistics becomes a big issue on fossil plants, much more than renewable,” said Bruce Levy, CEO and president at BMR Energy, which owns and operates clean energy projects in the Caribbean and Latin America. “The ancillaries around it — the fuel delivery, fuel storage, water in, water out — are all as susceptible to damage as a renewable plant.”

Duke, however, dismissed the notion that one generation type could beat out another in a serious storm.

“I don’t think any generation source is immune,” said Duke spokesperson Randy Wheeless. “We’ve always been a big supporter of a balanced energy mix, reflecting why the grid isn't 100% renewable in practice today. That’s going to include nuclear and natural gas and solar and renewables as well. We do that because not every day is a good day for each generation source.”

In regard to performance, Wade Schauer, director of Americas Power & Renewables Research at Wood Mackenzie, said the situation is “complex.” According to him, output of solar and wind during a storm depends heavily on the event and its location.

While comprehensive data on generation performance is sparse, Schauer said coal and gas generators could experience outages at 25 percent while stormy weather might cut 95 percent of output from renewables, underscoring clean energy's dirty secret about variability under stress. Ahead of last year’s “bomb cyclone” in New England, WoodMac data shows that wind dropped to less than 1 percent of the supply mix.

“When it comes to resiliency, ‘average performance’ doesn't cut it,” said Schauer.

In the future, he said high winds could impact all U.S. offshore wind farms, since projects are slated for a small geographic area in the Northeast. He also pointed to anecdotal instances of solar arrays in New England taken out by feet of snow. During Florence, North Carolina’s wind farms escaped the highest winds and continued producing electricity throughout. Cloud cover, on the other hand, pushed solar production below average levels.

After Florence passed, Duke reported that most of its solar came online quickly, although four of its utility-owned facilities remained offline for weeks afterward. Only one was because of damage; the other three remained offline due to substation interconnection issues.

“Solar performed pretty well,” said Wheeless. “But did it come out unscathed? No.”

According to installer reports, solar systems fared relatively well in recent storms, even as the Covid-19 impact on renewables constrained projects worldwide. But the industry has also highlighted potential improvements. Following Hurricanes Maria and Irma, the Federal Emergency Management Agency published guidelines for installing and maintaining storm-resistant solar arrays. The document recommended steps such as annual checks for bolt tightness and using microinverters rather than string inverters.

Rocky Mountain Institute (RMI) also assembled a guide for retrofitting and constructing new installations. It described attributes of solar systems that survived storms, like lateral racking supports, and those that failed, like undersized and under-torqued bolts.

“The hurricanes, as much as no one liked them, [were] a real learning experience for folks in our industry,” said BMR’s Levy. “We saw what worked, and what didn’t.”          

Facing the "800-pound gorilla" on the grid

Advocates believe wind, solar, batteries and microgrids offer the most promise because they often rely less on transmitting electricity long distances and could support peer-to-peer energy models within communities.

Most extreme weather outages arise from transmission and distribution problems, not generation issues. Schauer at WoodMac called storm damage to T&D the “800-pound gorilla.”

“I'd be surprised if a single customer power outage was due to generators being offline, especially since loads where so low due to mild temperatures and people leaving the area ahead of the storm,” he said of Hurricane Florence. “Instead, it was wind [and] tree damage to power lines and blown transformers.”

 

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Chinese-built electricity poles plant inaugurated in South Sudan

Juba Power Distribution Expansion accelerates grid rehabilitation in South Sudan, adding concrete poles, medium and low voltage networks, and LED street lighting, funded by AfDB and executed by Power China for reliable, affordable electricity.

 

Key Points

A project to upgrade Juba's grid with concrete poles, MV-LV networks, and LED lighting for reliable, affordable power.

✅ 13,350 concrete poles produced locally for network rollout

✅ Medium and low voltage network rehabilitation and expansion

✅ LED street lighting and customer care improvements funded by AfDB

 

The South Sudan government has launched a factory producing concrete poles that will facilitate an ambitious project done by a Chinese company to rehabilitate and expand the Power Distribution System in Juba, its capital.

The Minister of Dams and Electricity, Dhieu Mathok, said that the factory, rented by Power China, will produce some 13,350 poles for the electricity distribution in the capital and other states.

"The main objective of this project is to increase the supply capacity and reliability of the power distribution system in Juba. Access to the grid will replace the use of generators by the population, allow supply of energy at more affordable price and, hence contribute toward economic growth and poverty eradication in South Sudan," Mathok said during the inauguration of the plant along the Yei road in Juba.

#google#

He disclosed that it will help solve the problem associated with non-availability of concrete poles for the project and to mitigate the risk of importing poles from other countries.

"This factory will create positive impact on the construction of the national grid in South Sudan. It is owned by South Sudanese business people but currently it has been taken over by Power China for a brief period of one year," he said.

South Sudan is largely generator driven economy with continued electricity blackout, and across the continent initiatives like Cape Town's municipal power build-out illustrate alternative approaches, in the wake of the collapse of the generator power plant operated by the South Sudan Electricity Corporation (SSEC) in 2013.

Wang Cun, an official with Power China said they got the contract to build the electricity project in June 2016 and that they will continue to support South Sudanese staff with skills and knowledge, drawing on advances such as PEM green hydrogen R&D that point to future low-carbon options, and also work with the government on several major power projects.

"We have achieved much from these projects and we also suffered much from the instability and continuous conflicts all these years, but we confirm and believe the year of 2018 will be a year of peace and development in South Sudan," Wang said, adding that the company has been operating in South Sudan since 2009.

He disclosed that Power China has conducted several projects before South Sudan won independence from Sudan in 2011 such as the peace road project from Renk to Malakal, Maridi water plant and Malakal municipal road projects.

Wang said they will immediately reorganize all necessary resources to increase post-production capacity and immediately shall commence the erection of these poles to all corners of Juba city and start the distribution.

"We shall do as we did before to recruit more local technicians, engineers and laborers during the construction period, so that they are there in place for similar projects in the near future. We shall make more efforts to improve these local staffs' working environment and to realize sustainable development of Power China and Sino-hydro in South Sudan," said Wang.

Power China has been committing itself in the economic development of South Sudan and has signed eight commercial contracts with the government of South Sudan since independence like the Juba-hydro power project and the Tharjiath thermal power plant project, while in China projects such as the Lawa hydropower station demonstrate ongoing hydropower expertise that can inform regional work.

Liu Xiaodong, the Charge d'Affaires at the Chinese embassy in South Sudan, said Power China has been working very hard in the engineering and procurement in the earlier stage of the project, and as China expands energy ties such as nuclear cooperation with Cambodia that demonstrate broader engagement, also thanked the South Sudan government and the African Development Bank for their strong support.

Liu added upon completion Juba will have an upgraded power distribution system with 2,250 lighting points along the main roads in the capital and lamps will be LED ones.

The project falls under the Juba Power Distribution System Rehabilitation and Expansion Project, which was funded by the African Development Bank (AfDB) and has undertaken an AfDB review of a Senegal power plant to inform regional energy decisions.

It comprises of five different lots like Rehabilitation of Diesel plant substation, Rehabilitation and Expansion of medium voltage network, low voltage network, and Rehabilitation and Expansion of street lighting and improvement of customer care.

 

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Sens. Wyden, Merkley Introduce Bill to Ensure More Wildfire Resilient Power Grid

Wildfire Resilient Power Grid Act proposes DOE grants for utility companies to fund wildfire mitigation, grid resilience upgrades, undergrounding power lines, fast-tripping protection, weather monitoring, and vegetation management, prioritizing rural electric cooperatives.

 

Key Points

A federal bill funding utility wildfire mitigation and grid hardening via DOE grants, prioritizing rural utilities.

✅ $1B DOE matching grants for grid upgrades and wildfire mitigation.

✅ Prioritizes rural utilities; supports undergrounding and hardening.

✅ Funds fast-tripping protection, weather stations, vegetation management.

 

U.S. Sens. Ron Wyden and Jeff Merkley today introduced new legislation, amid transmission barriers that persist, to incentivize utility companies to do more to reduce wildfire risks as aging power infrastructure ignite wildfires in Oregon and across the West.

Wyden and Merkley's Wildfire Resilient Power Grid Act of 2020 would ensure power companies do their part to reduce the risk of wildfires through power system upgrades, even as California utility spending crackdown seeks accountability, such as the undergrounding of power lines, fire safety equipment installation and proper vegetation management.

"First and foremost, this is a public safety issue. Fire after fire ignited this summer because the aging power grid could not withstand a major windstorm during the season's hottest and driest days," Wyden said. "Many utility companies are already working to improve the resiliency of their power grid, but the sheer costs of these investments must not come at the expense of equitable regulation for rural utility customers. Congress must do all that it can to stop the catastrophic wildfires decimating the West, and that means improving rural infrastructure. By partnering with utilities around the country, we can increase wildfire mitigation efforts at a modest cost -- a fire prevention investment that will pay dividends by saving lives, homes and businesses."

"When this year's unprecedented wildfire event hit, I drove hundreds of miles across our state to see the damage firsthand and to hear directly from impacted communities, so that I could go back to D.C. and work for the solutions they need," said Merkley. "What I saw was apocalyptic--and we have to do everything we can to reduce the risk of this happening again. That means we have to work with our power companies to get critical upgrades and safety investments into place as quickly as possible."

The Wildfire Resilient Power Grid Act of 2020:

* Establishes a $1 billion-per-year matching grant program for power companies through the Department of Energy, even as ACORE opposed DOE subsidy proposals, to reduce the risk of power lines and grid infrastructure causing wildfires.

* Gives special priority to smaller, rural electric companies to ensure mitigation efforts are targeted to forested rural areas.

* Promotes proven methods for reducing wildfire risks, including undergrounding of lines, installing fast-tripping protection systems, and constructing weather monitoring stations to respond to electrical system fire risks.

* Provides for hardening of overhead power lines and installation of fault location equipment where undergrounding of power lines is not a favorable option.

* Ensures fuels management activities of power companies are carried out in accordance with Federal, State, and local laws and regulations.

* Requires power companies to have "skin in the game" by making the program a 1-to-1 matching grant, with an exception for smaller utilities where the matching requirement is one third of the grant.

* Delivers accountability on the part of utilities and the Department of Energy by generating a report every two years on efforts conducted under the grant program.

Portland General Electric President and CEO Maria Pope: "We appreciate Senator Wyden's and Senator Merkley's leadership in proposing legislation to provide federal funding that will help protect Oregon from devastating wildfires. When passed, this will help make Oregon's electric system safer, faster, without increasing customer prices. That is especially important given the economy and hotter, drier summers and longer wildfire seasons that Oregon will continue to face."

Lane County Commission Chair Heather Butch: " In a matter of hours, the entire Lane County community of Blue River was reduced to ashes by the Holiday Farm Fire. Since the moment I first toured that devastation I've been committed to building it back better. I applaud Senators Wyden and Merkley for drafting the Wildfire Resilient Power Grid Act, as it could well provide the path towards meeting this important goal. Moreover, the resultant programs will better protect rural communities from the increasing dangers of wildfires through a number of preventative measures that would otherwise be difficult to implement."

Linn County Commissioner Roger Nyquist: "This legislation is a smart strategic investment for the future safety of our residents as well as the economic vitality of our community."

Marion County Commissioner Kevin Cameron: "After experiencing a traumatic evacuation during the Beachie Creek and Lion's Head wild fires, I understand the need to strengthen the utility Infrastructure. The improvements resulting from Senator Wyden and Merkley's bill will reduce disasters in the future, but improve everyday reliability for our citizens who live, work and protect the environment in potential wildfire areas."

Edison Electric Institute President Tom Kuhn: "EEI thanks Senator Wyden and Senator Merkley for their leadership in introducing the Wildfire Resilient Power Grid Act. This bill will help support and accelerate projects already planned and underway to enhance energy grid resiliency and mitigate the risk of wildfire damage to power lines. Electric companies across the country are committed to working with our government partners and other stakeholders on preparation and mitigation efforts that combat the wildfire threat and on the rapid deployment of technology solutions, including aggregated DERs at FERC, that address wildfire risks, while still maintaining the safe, reliable, and affordable energy we all need."

Oregon Rural Electric Cooperative Association Executive Director Ted Case: "Oregon's electric cooperatives support the Wildfire Resilient Power Grid Act and appreciate Senator Wyden's and Senator Merkley's leadership and innovative approach to wildfire mitigation, particularly for small, rural utilities. This legislation includes targeted assistance that will help us to continue to provide affordable, reliable and safe electricity to over 500,000 Oregonians."

Sustainable Northwest Director of Government Affairs & Program Strategy Dylan Kruse: "In recent years, the West has seen too many wildfires originate due to poorly maintained or damaged electric utility transmission and distribution infrastructure. This legislation plays an important role to ensure that power lines do not contribute to wildfire starts, while providing safe and reliable power to communities during wildfire events. Utilities must, even as Wyoming clean energy bill proposals emerge, live up to their legal requirements to maintain their infrastructure, but this bill provides welcome resources to expedite and prioritize risk reduction, while preventing cost increases for ratepayers."

Oregon Wild Wilderness Program Manager Erik Fernandez: "2020 taught Oregon the lesson that California learned in the Paradise Fire, and SCE wildfire lawsuits that followed underscore the stakes. Addressing the risk of unnaturally caused powerline fires is an increasingly important critical task. I appreciate Senator Ron Wyden's efforts to protect our homes and communities from powerline fires."

 

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Switch from fossil fuels to electricity could cost $1.4 trillion, Canadian Gas Association warns

Canada Electrification Costs: report estimates $580B-$1.4T to scale renewable energy, wind, solar, and storage capacity to 2050, shifting from natural gas toward net-zero emissions and raising average household energy spending by $1,300-$3,200 annually.

 

Key Points

Projected national expense to expand renewables and electrify energy systems by 2050, impacting household energy bills.

✅ $580B-$1.4T forecast for 2020-2050 energy transition

✅ 278-422 GW wind, solar, storage capacity by 2050

✅ Household costs up $1,300-$3,200 per year on average

 

The Canadian Gas Association says building renewable electricity capacity to replace just half of Canada's current fossil fuel-generated energy, a shift with significant policy implications for grids across provinces, could increase national costs by as much as $1.4 trillion over the next 30 years.

In a report, it contends, echoing an IEA report on net-zero, that growing electricity's contribution to Canada's energy mix from its current 19 per cent to about 60 per cent, a step critical to meeting climate pledges that policymakers emphasize, will require an expansion from 141 gigawatts today to between 278 and 422 GW of renewable wind, solar and storage capacity by 2050.

It says that will increase national energy costs by between $580 billion and $1.4 trillion between 2020 and 2050, a projection consistent with recent reports of higher electricity prices in Alberta amid policy shifts, translating into an average increase in Canadian household spending of $1,300 to $3,200 per year.

The study, prepared by consulting firm ICF for the association, assumes electrification begins in 2020 and is applied in all feasible applications by 2050, with investments in the electricity system, guided by the implications of decarbonizing the grid for reliability and cost, proceeding as existing natural gas and electric end use equipment reaches normal end of life.

Association CEO Tim Egan says the numbers are "pretty daunting" and support the integration of natural gas with electric, amid Canada's race to net-zero commitments, instead of using an electric-only option as the most cost-efficient way for Canada to reach environmental policy goals.

But Keith Stewart, senior energy strategist with Greenpeace Canada, says scientists are calling for the world to get to net-zero emissions by 2050, and Canada's net-zero by 2050 target underscores that urgency to avoid "catastrophic" levels of warming, so investing in natural gas infrastructure to then shut it down seems a "very expensive option."

 

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Canadian Electricity Grids Increasingly Exposed to Harsh Weather

North American Grid Reliability faces extreme weather, climate change, demand spikes, and renewable variability; utilities, AESO, and NERC stress resilience, dispatchable capacity, interconnections, and grid alerts to prevent blackouts during heatwaves and cold snaps.

 

Key Points

North American grid reliability is the ability to meet demand during extreme weather while maintaining stability.

✅ Extreme heat and cold drive record demand and resource strain.

✅ Balance dispatchable and intermittent generation for resilience.

✅ Expand interconnections, capacity, and demand response to avert outages.

 

The recent alerts in Alberta's electricity grid during extreme cold have highlighted a broader North American issue, where power systems are more susceptible to being overwhelmed by extreme weather impacts on reliability.

Electricity Canada's chief executive emphasized that no part of the grid is safe from the escalating intensity and frequency of weather extremes linked to climate change across the sector.

“In recent years, during these extreme weather events, we’ve observed record highs in electricity demand,” he stated.

“It’s a nationwide phenomenon. For instance, last summer in Ontario and last winter in Quebec, we experienced unprecedented demand levels. This pattern of extremes is becoming more pronounced across the country.”

The U.S. has also experienced strain on its electricity grids due to extreme weather, with more blackouts than peers documented in studies. Texas faced power outages in 2021 due to winter storms, and California has had to issue several emergency grid alerts during heat waves.

In Canada, Albertans received a government emergency alert two weeks ago, urging an immediate reduction in electricity use to prevent potential rotating blackouts as temperatures neared -40°C. No blackouts occurred, with a notable decrease in electricity use following the alert, according to the Alberta Electric System Operator (AESO).

AESO's data indicates an increase in grid alerts in Alberta for both heatwaves and cold spells, reflecting dangerous vulnerabilities noted nationwide. The period between 2017 and 2020 saw only four alerts, in contrast to 17 since 2021.

Alberta's electricity grid reliability has sparked political debate, including proposals for a western Canadian grid to improve reliability, particularly with the transition from coal-fired plants to increased reliance on intermittent wind and solar power. Despite this debate, the AESO noted that the crisis eased when wind and solar generation resumed, despite challenges with two idled gas plants.

Bradley pointed out that Alberta's grid issues are not isolated. Every Canadian region is experiencing growing electricity demand, partly due to the surge in electric vehicles and clean energy technologies. No province has a complete solution yet.

“Ontario has had to request reduced consumption during heatwaves,” he noted. “Similar concerns about energy mix are present in British Columbia or Manitoba, especially now with drought affecting their hydro-dependent systems.”

The North American Electric Reliability Corporation (NERC) released a report in November warning of elevated risks across North America this winter for insufficient energy supplies, particularly under extreme conditions like prolonged cold snaps.

While the U.S. is generally more susceptible to winter grid disruptions, and summer blackout warnings remain a concern, the report also highlights risks in parts of Canada. Saskatchewan faces a “high” risk due to increased demand, power plant retirements, and maintenance, whereas Quebec and the Maritimes are at “elevated risk.”

Mark Olson, NERC’s manager of reliability assessments, mentioned that Alberta wasn't initially considered at risk, illustrating the challenges in predicting electricity demand amid intensifying extreme weather.

Rob Thornton, president and CEO of the International District Energy Association, acknowledged public concerns about grid alerts but reassured that the risk of a catastrophic grid failure remains very low.

“The North American grid is exceptionally reliable. It’s a remarkably efficient system,” he said.

However, Thornton emphasized the importance of policies for a resilient and reliable electricity system through 2050 and beyond. This involves balancing dispatchable and intermittent electricity sources, investing in extra capacity, enhancing macrogrids and inter-jurisdictional connections, and more.

“These grid alerts raise awareness, if not anxiety, about our energy future,” Thornton concluded.

 

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