First Solar plants near U.S. loan decision

By Reuters


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Three of First Solar Inc's largest solar power plants are moving closer to winning government loan guarantees under a program that could vastly expand the country's use of the clean energy source.

According to letters issued by the U.S. Energy Department on May 10 and posted on First Solar's website, the company's planned projects, with a total capacity of more than 1,300 megawatts, remain candidates to win the government commitments that would enable them to be constructed.

Together, the plants would be larger than the entire amount of solar power added in the United States last year, when 878 megawatts of photovoltaic systems were built, and would have about 30 percent more capacity than an average nuclear reactor.

About two-thirds of the funds under the Energy Department's loan guarantee program have been allocated so far to 19 projects, and not all the projects that are now awaiting approval will win backing. Jonathan Silver, the executive director of the loan guarantee program, said in the letters.

"We are, therefore, focused on ensuring that we leverage the remaining funds as effectively as possible in the brief time that remains," he wrote.

The government's loan guarantee program has attracted intense interest from renewable energy companies, which are seeking to use the funds to help build clean energy projects on a far larger scale than in the past.

Other companies that received letters stating their applications were on track included biofuels company Poet, thermal solar company SolarReserve and geothermal company Ormat Technologies Inc.

First Solar, the world's largest solar power maker by market value, previously received a conditional commitment for a U.S. loan guarantee of $967 million for its 290-MW Agua Caliente plant in January. It announced in December that it would sell that plant to power company NRG Energy Inc for up to $800 million.

First Solar has sought the loan guarantees to help build its Topaz and Desert Sunlight plants in Southern California, which are expected to have output capacity of 550 MW each, enough for each to supply power to about 160,000 homes.

Analysts have estimated that each plant will cost more than $1 billion to construct, although the company would not comment on the costs.

Both plants are working their way through the permitting process, with the Topaz Solar Farm winning local approval from San Luis Obispo County's Planning Commission.

The other proposal is for its AV Solar Ranch One, a 230-MW project planned for the Antelope Valley in Los Angeles County, California.

Winning the government support for the power plants would help First Solar find buyers for the projects, which are part of its pipeline of about 2,400 MW of plants planned for construction.

"It makes the projects much more attractive because the profit returns go up if you can get lower-priced funding from the government," said Auriga USA analyst Mark Bachman.

Solar power is one of the fastest-growing sources of power generation, but remains tiny compared with coal, natural gas and nuclear power and it relies on government subsidies to make it profitable.

First Solar's panels are the lowest-cost in the industry. They are made using cadmium telluride rather than silicon, the material used in most solar panels.

Earlier this month, First Solar reported quarterly earnings that topped Wall Street expectations, but shares fell on fears that cuts in solar subsidies in Italy would hurt demand for its panels.

The company's China-based rivals Yingli Green Energy Holding Co Ltd, Trina Solar Ltd and JA Solar Holdings Co Ltd all reported that sales were lagging expectations because of cuts in subsidies in Italy, the world's second-largest solar market.

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Egypt's renewable energy to reach 6.6 GW by year-end

Egypt Renewable Energy Expansion targets solar and wind power projects to diversify the energy mix, adding 6.6 GW by 2020 and reaching 8,200 MW, with UK cooperation, grid upgrades, and investment in the electricity sector.

 

Key Points

A plan to boost solar and wind by 6.6 GW by 2020, reaching 8,200 MW and diversifying Egypt's energy mix.

✅ Adds 6.6 GW by 2020; targets 8,200 MW total capacity

✅ Focus on solar, wind, grid upgrades, and investment

✅ UK-Egypt cooperation in electricity sector projects

 

Egypt is planning to expand into renewable energy projects in a bid to increase its contribution to the energy mix, in step with global records being set in renewables, and amid Saudi Arabia’s 60 GW drive in the region, the country’s minister of electricity and renewable energy Mohamed Shaker said.

Renewable power is expected to add 6.6 gigawatts (GW) by the end of 2020, a scale comparable to Saudi wind expansion underway, with plans to reach 8,200 megawatts (MW) after the completion of the renewable energy projects currently under consideration, reflecting gains seen since IRENA’s 2016 record year for renewables, Shaker added in a statement on Tuesday, even as regional challenges persist.

This came during the minister’s video-conference meeting with the British ambassador to Egypt Geoffrey Adams to explore the potential means for cooperation between the two countries in the electricity sector, including lessons from the UK project backlog now affecting investments and from Ireland’s green-electricity goals being pursued.

 

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Fire in manhole leaves thousands of Hydro-Québec customers without power

Montreal Power Outage linked to Hydro-Que9bec infrastructure after an underground explosion and manhole fire in Rosemont–La Petite–Patrie, disrupting the STM Blue Line and forcing strategic, cold-weather grid restoration on Be9langer Street.

 

Key Points

Outage from an underground blast and manhole fire disrupted STM service; Hydro-Que9bec restored the grid in cold weather.

✅ Peak impact: 41,000 customers; 10,981 still without power by 7:00 p.m.

✅ STM Blue Line restored after afternoon shutdown; Be9langer Street reopened.

✅ Hydro-Que9bec pacing restoration to avoid grid overload in cold weather.

 

Hydro-Québec says a power outage affecting Montreal is connected to an underground explosion and a fire in a manhole in Rosemont—La Petite–Patrie. 

The fire started in underground pipes belonging to Hydro-Québec on Bélanger Street between Boyer and Saint-André streets, according to Montreal firefighters, who arrived on the scene at 12:18 p.m.

The electricity had to be cut so that firefighters could get into the manhole where the equipment was located.

At the peak of the shutdown, nearly 41,000 customers were without power across Montreal.  As of 7:00 p.m., 10,981 clients still had no power.

In similar storms, Toronto power outages have persisted for hundreds, underscoring restoration challenges.

Hydro-Québec spokesperson Louis-Olivier Batty said the utility is being strategic about how it restores power across the grid. 

Because of the cold, and patterns seen during freezing rain outages, it anticipates that people will crank up the heat as soon as they get their electricity back, and that could trigger an overload somewhere else on the network, Batty said.

The Metro's Blue line was down much of the afternoon, but the STM announced the line was back up and running just after 4:30 p.m.

Bélanger Street was blocked to traffic much of the afternoon, however, it has now been reopened.

Batty said once the smoke clears, Hydro-Québec workers will take a look at the equipment to see what failed. 

 

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As New Zealand gets serious about climate change, can electricity replace fossil fuels in time?

New Zealand Energy Transition will electrify transport and industry with renewables, grid-scale solar, wind farms, geothermal, batteries, demand response, pumped hydro, and transmission upgrades to manage dry-year risk and winter peak loads.

 

Key Points

A shift to renewables and smart demand to decarbonise transport and industry while ensuring reliable, affordable power.

✅ Electrifies transport and industrial heat with renewables

✅ Uses demand response, batteries, and pumped hydro for resilience

✅ Targets 99%+ renewable supply, managing dry-year and peak loads

 

As fossil fuels are phased out over the coming decades, the Climate Change Commission (CCC) suggests electricity will take up much of the slack, aligning with the vision of a sustainable electric planet powering our vehicle fleet and replacing coal and gas in industrial processes.

But can the electricity system really provide for this increased load where and when it is needed? The answer is “yes”, with some caveats.

Our research examines climate change impacts on the New Zealand energy system. It shows we’ll need to pay close attention to demand as well as supply. And we’ll have to factor in the impacts of climate change when we plan for growth in the energy sector.

 

Demand for electricity to grow
While electricity use has not increased in NZ in the past decade, many agencies project steeply rising demand in coming years. This is partly due to both increasing population and gross domestic product, but mostly due to the anticipated electrification of transport and industry, which could result in a doubling of demand by mid-century.

It’s hard to get a sense of the scale of the new generation required, but if wind was the sole technology employed to meet demand by 2050, between 10 and 60 new wind farms would be needed nationwide.

Of course, we won’t only build wind farms, as renewables are coming on strong and grid-scale solar, rooftop solar, new geothermal, some new small hydro plant and possibly tidal and wave power will all have a part to play.

 

Managing the demand
As well as providing more electricity supply, demand management and batteries will also be important. Our modelling shows peak demand (which usually occurs when everyone turns on their heaters and ovens at 6pm in winter) could be up to 40% higher by 2050 than it is now.

But meeting this daily period of high demand could see expensive plant sitting idle for much of the time (with the last 25% of generation capacity only used about 10% of the time).

This is particularly a problem in a renewable electricity system when the hydro lakes are dry, as hydro is one of the few renewable electricity sources that can be stored during the day (as water behind the dam) and used over the evening peak (by generating with that stored water).

Demand response will therefore be needed. For example, this might involve an industrial plant turning off when there is too much load on the electricity grid.

 

But by 2050, a significant number of households will also need smart appliances and meters that automatically use cheaper electricity at non-peak times. For example, washing machines and electric car chargers could run automatically at 2am, rather than 6pm when demand is high.

Our modelling shows a well set up demand response system could mitigate dry-year risk (when hydro lakes are low on water) in coming decades, where currently gas and coal generation is often used.

Instead of (or as well as) having demand response and battery systems to combat dry-year risk, a pumped storage system could be built. This is where water is pumped uphill when hydro lake inflows are plentiful, and used to generate electricity during dry periods.

The NZ Battery project is currently considering the potential for this in New Zealand, and debates such as whether we would use Site C's electricity offer relevant lessons.

 

Almost (but not quite) 100% renewable
Dry-year risk would be greatly reduced and there would be “greater greenhouse gas emissions savings” if the Interim Climate Change Committee’s (ICCC) 2019 recommendation to aim for 99% renewable electricity was adopted, rather than aiming for 100%.

A small amount of gas-peaking plant would therefore be retained. The ICCC said going from 99% to 100% renewable electricity by overbuilding would only avoid a very small amount of carbon emissions, at a very high cost.

Our modelling supports this view. The CCC’s draft advice on the issue also makes the point that, although 100% renewable electricity is the “desired end point”, timing is important to enable a smooth transition.

Despite these views, Energy Minister Megan Woods has said the government will be keeping the target of a 100% renewable electricity sector by 2030.

 

Impacts of climate change
In future, the electricity system will have to respond to changing climate patterns as well, becoming resilient to climate risks over time.

The National Institute of Water and Atmospheric Research predicts winds will increase in the South Island and decrease in the far north in coming decades.

Inflows to the biggest hydro lakes will get wetter (more rain in their headwaters), and their seasonality will change due to changes in the amount of snow in these catchments.

Our modelling shows the electricity system can adapt to those changing conditions. One good news story (unless you’re a skier) is that warmer temperatures will mean less snow storage at lower elevations, and therefore higher lake inflows in the big hydro catchments in winter, leading to a better match between times of high electricity demand and higher inflows.

 

The price is right
The modelling also shows the cost of generating electricity is not likely to increase, because the price of building new sources of renewable energy continues to fall globally.

Because the cost of building new renewables is now cheaper than non-renewables (such as coal-fired plants), investing in carbon-free electricity is increasingly compelling, and renewables are more likely to be built to meet new demand in the near term.

While New Zealand’s electricity system can enable the rapid decarbonisation of (at least) our transport and industrial heat sectors, international efforts like cleaning up Canada's electricity underline the need for certainty so the electricity industry can start building to meet demand everywhere.

Bipartisan cooperation at government level will be important to encourage significant investment in generation and transmission projects with long lead times and life expectancies, as analyses of climate policy and grid implications underscore in comparable markets.

Infrastructure and markets are needed to support demand response uptake, as well as certainty around the Tiwai exit in 2024 and whether pumped storage is likely to be built.

Our electricity system can support the rapid decarbonisation needed if New Zealand is to do its fair share globally to tackle climate change.

But sound planning, firm decisions and a supportive and relatively stable regulatory framework are all required before shovels can hit the ground.

 

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National Grid and SSE to use electrical transformers to heat homes

Grid Transformer Waste Heat Recovery turns substations into neighborhood boilers, supplying district heating via heat networks, helping National Grid and SSE cut emissions, boost energy efficiency, and advance low carbon, net zero decarbonization.

 

Key Points

Grid Transformer Waste Heat Recovery captures substation heat for district heating, cutting emissions and gas use.

✅ Captures waste heat from National Grid transformers

✅ Feeds SSE district heat networks for nearby homes

✅ Cuts carbon, improves efficiency, aligns with net zero

 

Thousands of homes could soon be warmed by the heat from giant electricity grid transformers for the first time as part of new plans to harness “waste heat” and cut carbon emissions from home heating.

Trials are due to begin on how to capture the heat generated by transmission network transformers, owned by National Grid, to provide home heating for households connected to district heating networks operated by SSE.

Currently, hot air is vented from the giant substations to help cool the transformers that help to control the electricity running through National Grid’s high-voltage transmission lines.

However, if the trial succeeds, about 1,300 National Grid substations could soon act as neighbourhood “boilers”, piping water heated by the substations into nearby heating networks, and on into the thousands of homes that use SSE’s services.

“Electric power transformers generate huge amounts of heat as a byproduct when electricity flows through them. At the moment, this heat is just vented directly into the atmosphere and wasted,” said Nathan Sanders, the managing director of SSE Energy Solutions.

“This groundbreaking project aims to capture that waste heat and effectively turn transformers into community ‘boilers’ that serve local heat networks with a low- or even zero-carbon alternative to fossil-fuel-powered heat sources such as gas boilers, a shift akin to a gas-for-electricity swap in heating markets,” Sanders added.

Alexander Yanushkevich, National Grid’s innovation manager, said the scheme was “essential to achieve net zero” and a “great example of how, taking a whole-system approach, including power-to-gas in Europe precedents, the UK can lead the way in helping accelerate decarbonisation”.

The energy companies believe the scheme could initially reduce heat network carbon emissions by more than 40% compared with fossil gas systems. Once the UK’s electricity system is zero carbon, and with recent milestones where wind was the main source of UK electricity on the grid, the heating solution could play a big role in helping the UK meet its climate targets.

The first trials have begun at National Grid’s specially designed testing site at Deeside in Wales to establish how the waste heat could be used in district heating networks. Once complete, the intellectual property will be shared with smaller regional electricity network owners, which may choose to roll out schemes in their areas.

Tim O’Reilly, the head of strategy at National Grid, said: “We have 1,300 transmission transformers, but there’s no reason why you couldn’t apply this technology to smaller electricity network transformers, too, echoing moves to use more electricity for heat in colder regions.”

Once the trials are complete, National Grid and SSE will have a better idea of how many homes could be warmed using the heat generated by electricity network substations, O’Reilly said, and how the heat can be used in ways that complement virtual power plants for grid resilience.

“The heavier the [electricity] load, which typically reaches a peak at around teatime, the more heat energy the transformer will be able to produce, aligning with times when wind leads the power mix nationally. So it fits quite nicely to when people require heat in the evenings,” he added.

Other projects designed to capture waste heat to use in district heating schemes include trapping the heat generated on the Northern line of London’s tube network to warm homes in Islington, and harnessing the geothermal heat from disused mines for district heating networks in Durham.

Only between 2% and 3% of the UK is connected to a district heating network, but more networks are expected to emerge in the years ahead as the UK tries to reduce the carbon emissions from homes, alongside its nuclear power plans in the wider energy strategy.

 

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The CIB and private sector partners to invest $1.7 billion in Lake Erie Connector

Lake Erie Connector Investment advances a 1,000 MW HVDC transmission link connecting Ontario to the PJM Interconnection, enhancing grid reliability, clean power trade, and GHG reductions through a public-private partnership led by CIB and ITC.

 

Key Points

A $1.7B public-private HVDC project linking Ontario and PJM to boost reliability, cut GHGs, and enable clean power trade.

✅ 1,000 MW, 117 km HVDC link between Ontario and PJM

✅ $655M CIB and $1.05B private financing, ITC to own-operate

✅ Cuts system costs, boosts reliability, reduces GHG emissions

 

The Canada Infrastructure Bank (CIB) and ITC Investment Holdings (ITC) have signed an agreement in principle to invest $1.7 billion in the Lake Erie Connector project.

Under the terms of the agreement, the CIB will invest up to $655 million or up to 40% of the project cost. ITC, a subsidiary of Fortis Inc., and private sector lenders will invest up to $1.05 billion, the balance of the project's capital cost.

The CIB and ITC Investment Holdings signed an agreement in principle to invest $1.7B in the Lake Erie Connector project.

The Lake Erie Connector is a proposed 117 kilometre underwater transmission line connecting Ontario with the PJM Interconnection, the largest electricity market in North America, and aligns with broader regional efforts such as the Maine transmission line to import Quebec hydro to strengthen cross-border interconnections.

The 1,000 megawatt, high-voltage direct current connection will help lower electricity costs for customers in Ontario and improve the reliability and security of Ontario's energy grid, complementing emerging solutions like battery storage across the province. The Lake Erie Connector will reduce greenhouse gas emissions and be a source of low-carbon electricity in the Ontario and U.S. electricity markets.

During construction, the Lake Erie Connector is expected to create 383 jobs per year and drive more than $300 million in economic activity, and complements major clean manufacturing investments like a $1.6 billion battery plant in the Niagara Region that supports the EV supply chain. Over its life, the project will provide 845 permanent jobs and economic benefits by boosting Ontario's GDP by $8.8 billion.

The project will also help Ontario to optimize its current infrastructure, avoid costs associated with existing production curtailments or shutdowns. It can leverage existing generation capacity and transmission lines to support electricity demand, alongside new resources such as the largest battery storage project planned for southwestern Ontario.

ITC continues its discussions with First Nations communities and is working towards meaningful participation in the near term and as the project moves forward to financial close.

The CIB anticipates financial close late in 2021, pending final project transmission agreements, with construction commencing soon after. ITC will own the transmission line and be responsible for all aspects of design, engineering, construction, operations and maintenance.

ITC acquired the Lake Erie Connector project in August 2014 and it has received all necessary regulatory and permitting approvals, including a U.S. Presidential Permit and approval from the Canada Energy Regulator.

This is the CIB's first investment commitment in a transmission project and another example of the CIB's momentum to quickly implement its $10B Growth Plan, amid broader investments in green energy solutions in British Columbia that support clean growth.

 

Endorsements

This project will allow Ontario to export its clean, non-emitting power to one of the largest power markets in the world and, as a result, benefit Canadians economically while also significantly contributing to greenhouse gas emissions reductions in the PJM market. The project allows Ontario to better manage peak capacity and meet future reliability needs in a more sustainable way. This is a true win-win for both Canada and the U.S., both economically and environmentally.
Ehren Cory, CEO, Canada Infrastructure Bank

The Lake Erie Connector has tremendous potential to generate customer savings, help achieve shared carbon reduction goals, and increase electricity system reliability and flexibility. We look forward to working with the CIB, provincial and federal governments to support a more affordable, customer-focused system for Ontarians. 
Jon Jipping, EVP & COO, ITC Investment Holdings Inc., a subsidiary of Canadian-based Fortis Inc. 

We are encouraged by this recent announcement by the Canada Infrastructure Bank. Mississaugas of the Credit First Nation has an interest in projects within our historic treaty lands that have environmental benefits and that offer economic participation for our community.
Chief Stacey Laforme, Mississaugas of the Credit First Nation

While our evaluation of the project continues, we recognize this project can contribute to the economic resilience of our Shareholder, the Mississaugas of the Credit First Nation. Subject to the successful conclusion of our collaborative efforts with ITC, we look forward to our involvement in building the necessary infrastructure that enable Ontario's economic engine.
Leonard Rickard, CEO, Mississaugas of the Credit Business Corporation

The Lake Erie Connector demonstrates the advantages of public-private partnerships to develop critical infrastructure that delivers greater value to Ontarians. Connecting Ontario's electricity grid to the PJM electricity market will bring significant, tangible benefits to our province. This new connection will create high-quality jobs, improve system flexibility, and allow Ontario to export more excess electricity to promote cost-savings for Ontario's electricity consumers.
Greg Rickford, Minister of Energy, Northern Development and Mines, Minister of Indigenous Affairs

With the US pledging to achieve a carbon-free electrical grid by 2035, Canada has an opportunity to export clean power, helping to reduce emissions, maximizing clean power use and making electricity more affordable for Canadians. The Lake Erie Connector is a perfect example of that. The Canada Infrastructure Bank's investment will give Ontario direct access to North America's largest electricity market - 13 states and D.C. This is part of our infrastructure plan to create jobs across the country, tackle climate change, and increase Canada's competitiveness in the clean economy, alongside innovation programs like the Hydrogen Innovation Fund that foster clean technology.


Quick Facts

  • The Lake Erie Connector is a 1,000 megawatt, 117 kilometre long underwater transmission line connecting Ontario and Pennsylvania.
  • The PJM Interconnection is a regional transmission organization coordinating the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
  • The project will help to reduce electricity system costs for customers in Ontario, and aligns with ongoing consultations on industrial electricity pricing and programs, while helping to support future capacity needs.
  • The CIB is mandated to invest CAD $35 billion and attract private sector investment into new revenue-generating infrastructure projects that are in the public interest and support Canadian economic growth.
  • The investment commitment is subject to final due diligence and approval by the CIB's Board.

 

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The Cool Way Scientists Turned Falling Raindrops Into Electricity

Raindrop Triboelectric Energy Harvesting converts falling water into electricity using Teflon (PTFE) on indium tin oxide and an aluminum electrode, forming a transient water bridge; a low frequency nanogenerator for renewable, static electricity harvesting.

 

Key Points

A method using PTFE, ITO, and an aluminum electrode to turn raindrop impacts into low frequency electrical power.

✅ PTFE on ITO boosts charge transfer efficiency.

✅ Water bridge links electrodes for rapid discharge.

✅ Low frequency output suits continuous energy harvesting.

 

Scientists at the City University of Hong Kong have used a Teflon-coated surface and a phenomenon called triboelectricity to generate a charge from raindrops. “Here we develop a device to harvest energy from impinging water droplets by using an architecture that comprises a polytetrafluoroethylene [Teflon] film on an indium tin oxide substrate plus an aluminium electrode,” they explain in their new paper in Nature as a step toward cheap, abundant electricity in the long term.

Triboelectricity itself is an old concept. The word means “friction electricity”—from the Greek tribo, to rub or wear down, which is why a diatribe tires you out—and dates back a long, long time. Static electricity is the most famous kind of triboelectric, and related work has shown electricity from the night sky can be harvested as well in niche setups. In most naturally occurring kinds, scientists have studied triboelectric in order to avoid its effects, like explosions inside of grain silos or hospital workers touching off pure oxygen. (Blowing sand causes an electric field, and NASA even worries about static when astronauts eventually land on Mars.)

One of the most studied forms of intentional and useful triboelectric is in systems such as ocean wave generators where the natural friction of waves meets nanogenerators of triboelectric energy. These even already use Teflon, which has natural conductivity that makes it ideal for this job. But triboelectricity is chaotic, and harnessing it generally involves a bunch of complicated, intersecting variables that can vary with the hourly weather. Promises of static electricity charging devices have often been, well, so much hot, sandy wind.

The scientists at City University of Hong Kong used triboelectric ideas to turn falling raindrops into energy. They say previous versions of the same idea were not very efficient, with materials that didn’t allow for high-fidelity transfer of electrical charge. (Many sources of renewable energy aren’t yet as efficient to turn into power, both because of developing technology and because their renewability means even less efficient use could be better than, for example, fossil fuels, and advances in renewable energy storage could help.)

“[A]chieving a high density of electrical power generation is challenging,” the team explains in its paper. “Traditional hydraulic power generation mainly uses electromagnetic generators that are heavy, bulky, and become inefficient with low water supply.” Diversifying how power is generated by water sources such as oceans and rivers is good for the existing infrastructure as well as new installations.

The research team found that as simulated raindrops fell on their device, the way the water accumulated and spread created a link between their two electrodes, one Teflon-coated and the other aluminum. This watery de facto wire link closes the loop and allows accumulated energy to move through the system. Because it’s a mechanical setup, it’s not limited to salty seawater, and because the medium is already water, its potential isn’t affected by ambient humidity either.

Raindrop energy is very low frequency, which means this tech joins many other existing pushes to harvest continuously available, low frequency natural energy, including underwater 'kites' that exploit steady currents. To make an interface that increases “instantaneous power density by several orders of magnitude over equivalent devices,” as the researchers say they’ve done here, could represent a major step toward feasibility in triboelectric generation.

 

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