A green giant emerges from ChinaÂ’s smog

By Globe and Mail


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In an artist's rendition, the Pearl River Tower soars above the Guangzhou skyline looking like a cross between a flattened rocket ship and a cellphone.

Still a half-completed, hulking concrete shell, the 71-storey building in China's southern industrial hub is billed to become one of the world's greenest office towers when it's finished late next year.

"We believe it will be the most energy-efficient tower in the world," said Roger Frechette, an engineer and the Chicago-based director of sustainable engineering with Skidmore Owings and Merrill LLP (SOM), the U.S. firm that designed the building and is overseeing its construction.

"Hopefully it will be the first of many built in the world. We really need them now," Mr. Frechette said in an interview during one of his many trips to Guangzhou. He calls the 2.2-million-square-foot tower "the project of a lifetime."

Though the total cost of the building has not been disclosed, it will use about $13-million (US) in environmental technologies and adaptations, including wind turbines to supply its power, and heat-saving and cooling technologies to minimize the amount of electricity consumed. The tower's top 10 floors are to serve as the headquarters of the state-government-affiliated Guangdong Tobacco Co., with additional office space to be leased later.

The state affiliation has allowed the designers to test what they believe is a new frontier in sustainable construction, which they say at present may be possible only in China. While the recession has slowed building work in other booming centres such as Dubai (where SOM was the architect behind the spindle-like Burj Dubai skyscraper), massive government spending in China has kept the cranes operating.

Until recently, environmental concerns have taken a back seat to the incredible pace of development in China, where the government has resisted accepting targets to limit carbon emissions ahead of the UN climate summit in Copenhagen.

But there is increasing interest in the use of green technologies. Under law, China is required to produce 15 per cent of its energy from renewable sources by 2020. The 2006 law is driving the construction of massive wind farms, the world's biggest plant to convert sunlight to electricity, and an entire city — Ordos in Inner Mongolia — built on the concept of sustainable living.

In Beijing, developments such as the Modern MOMA office and residential complex include geothermal heating, wastewater recycling to feed its surrounding gardens, and a specialized indoor ventilation system.

But the Pearl River Tower is seen as one of China's most experimental buildings yet.

"When we first put the design together, we had a lot of people look at it, even in our own firm, who said, 'You're wasting your time. China's not really interested in sustainability,' " Mr. Frechette recalls.

"A lot of people made that assumption and I think it's wrong.... In the last few years, we've seen China get very aggressive on sustainability."

Initially, the tower was designed to be a "zero-energy" structure, meaning it would produce as much power as it consumed using a series of wind turbines. Though that design had to be modified to fit local regulations, the tower will still use half as much power as regular office buildings for heating and cooling, ventilation and lighting.

Two floors of the tower will have wind turbines built inside; the building is designed to funnel the prevailing winds in through openings in its walls to keep the turbines running.

Double windows and automated window shades will help regulate the temperature; rooms will be cooled using chilled water run through copper pipes, saving space over traditional air conditioning systems.

The architects also promise that the cutting-edge ventilation system will produce better indoor air quality, a key issue in China where air pollution and outbreaks of airborne viruses such as H1N1 and, in years past, SARS are major concerns.

Opinions are mixed as to whether the tower will live up to its billing. "China's green technology must fit with China-specific conditions," cautioned Qin Youguo, a professor in the School of Architecture at Beijing's prestigious Tsinghua University.

"Being green here means the technology helps people in harmony with nature in a low-energy and sustainable way," Prof. Qin said. "What works as green technology in another country may not be green in China if it doesn't fit the situation here."

While Prof. Qin criticized many of the efforts thus far as showpieces with little real impact, others in the industry say real progress is being made. Architects say Chinese developers' interest in green concepts such as water recycling and energy efficiency is growing, and that clients are also calling for such ideas in project proposals.

"Generally, I can feel more interest of Chinese developers on the green concepts, such as environmentally friendly, power-saving, water-saving, low-carbon-emission [designs], especially in the last couple of years," said Ma Weijun, assistant chief engineer at Shanghai-based East China Architectural Design and Research Institute Co. (ECADI), one of China's leading architectural firms. "Sometimes, it is the clients' requests but we also guide our clients in this way. I can feel the change through our clients," Mr. Ma said.

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Alberta's Last Coal Plant Closes, Embracing Clean Energy

Alberta Coal Phase-Out signals a clean energy transition, replacing coal with natural gas and renewables, cutting greenhouse gas emissions, leveraging a carbon levy, and supporting workers in Alberta's evolving electricity market.

 

Key Points

Alberta Coal Phase-Out moves power from coal to lower-emission natural gas and renewables to reduce grid emissions.

✅ Last coal plant closed: Genesee Generating Station, Sept 30, 2023

✅ Shift to natural gas and renewables lowers emissions

✅ Carbon levy and incentives accelerated clean power build-out

 

The closure of the Genesee Generating Station on September 30, 2023, marked a significant milestone in Alberta's energy history, as the province moved to retire coal power by 2023 ahead of its 2030 provincial deadline. The Genesee, located near Calgary, was the province's last remaining coal-fired power plant. Its closure represents the culmination of a multi-year effort to transition Alberta's electricity sector away from coal and towards cleaner sources of energy.

For decades, coal was the backbone of Alberta's electricity grid. Coal-fired plants were reliable and relatively inexpensive to operate. However, coal also has a significant environmental impact. The burning of coal releases greenhouse gases, including carbon dioxide, a major contributor to climate change. Coal plants also produce air pollutants such as sulfur dioxide and nitrogen oxide, which can cause respiratory problems and acid rain, and in some regions electricity is projected to get dirtier as gas use expands.

In recognition of these environmental concerns, the Alberta government began to develop plans to phase out coal-fired power generation in the early 2000s. The government implemented a number of policies to encourage the shift from coal to cleaner energy such as natural gas and renewable energy. These policies included providing financial incentives for the construction of new natural gas plants and renewable energy facilities, as well as imposing a carbon levy on coal-fired generation.

The phase-out of coal was also driven by economic factors. The cost of natural gas has declined significantly in recent years, making it a more competitive fuel source for electricity generation as producers switch to gas under evolving market conditions. Additionally, the Alberta government faced increasing pressure from the federal government to reduce greenhouse gas emissions.

The transition away from coal has not been without its challenges. Coal mining and coal-fired power generation have long been important parts of Alberta's economy. The closure of coal plants has resulted in job losses in the affected communities. The government has implemented programs to help workers transition to new jobs in the clean energy sector.

Despite these challenges, the closure of the Genesee Generating Station is a positive development for Alberta's environment and climate. Coal-fired power generation is one of the largest sources of greenhouse gas emissions in Alberta, and recent wind generation outpacing coal underscores the sector's transformation. The closure of the Genesee is expected to result in a significant reduction in emissions, helping Alberta to meet its climate change targets.

The transition away from coal also presents opportunities for Alberta. The province has vast natural gas resources, which can be used to generate electricity with lower emissions than coal. Alberta is also well-positioned to develop renewable energy sources, such as wind power and solar power. These renewable energy sources can help to further reduce emissions and create new jobs in the clean energy sector.

The closure of the Genesee Generating Station is a significant milestone in Alberta's energy history. It represents the end of an era for coal-fired power generation in the province, a shift mirrored by the UK's last coal station going offline earlier this year. However, it also marks the beginning of a new era for Alberta's energy sector. By transitioning to cleaner sources of energy, Alberta can reduce its environmental impact and create a more sustainable energy future.

 

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California Regulators Face Calls for Action as Electricity Bills Soar

California Electricity Rate Hikes strain households as CPUC weighs fixed charges, utility profit caps, and stricter oversight. Wildfire mitigation, transmission upgrades, and aging grid costs push bills higher amid renewable integration and consumer protection debates.

 

Key Points

California power rates are rising from wildfire mitigation, transmission costs, and grid upgrades under CPUC review.

✅ CPUC mulls fixed charges to stabilize bills and rate design.

✅ Advocates push profit caps; utilities cite investment needs.

✅ Stronger oversight sought to curb waste and boost transparency.

 

California residents and consumer groups are demanding relief as their electricity bills continue to climb, putting increasing pressure on state regulators to intervene.  A recent op-ed in the San Francisco Chronicle highlights the growing frustration, emphasizing that California already has some of the highest electricity rates in the country, as coverage on why prices are soaring underscores, and these costs are only getting more burdensome.


Factors Driving High Bills

The rising electricity bills are attributed to several factors:

  • Wildfire Mitigation and Liability: Utility companies are investing heavily in wildfire prevention measures, such as vegetation management and infrastructure hardening. The costs of these initiatives, along with the increasing financial liabilities associated with wildfire risk, are being passed on to consumers.
  • Transmission Costs: California's vast geography and move towards renewable energy sources necessitate significant investments in transmission lines to deliver electricity from remote locations. These infrastructure costs also contribute to higher bills.
  • Aging Infrastructure: California's electricity grid is aging and requires upgrades and maintenance, and the expenses associated with these efforts are reflected in consumer rates.


Proposed Solutions and Debates

Consumer advocates and some lawmakers are calling for various actions to address the issue, including a potential revamp of electricity rates to clean the grid:

  • Fixed Charge Proposal: The California Public Utilities Commission (CPUC) is considering a proposal to introduce an income-based fixed charge on electricity bills. This change aims to make rates more predictable and encourage investment in renewable energy sources. However, opponents argue that it could disproportionately impact low-income households and discourage conservation.
  • Utility Profit Caps: Some advocate for capping utility companies' profits. They believe excessive profits should be returned to customers in the form of lower rates. However, utility companies counter that they need a certain level of profit to invest in infrastructure and maintain a reliable grid.
  • Increased Oversight: Consumer groups are calling for stricter oversight of utility company spending, and legislators are preparing to crack down on utility spending through upcoming votes as well. They demand transparency and want to ensure that funds collected from customers are being used for necessary investments and not for lobbying or excessive executive compensation.

 

Comparisons and National Implications

Similar concerns about rising utility bills are emerging in other parts of the country as more states transition to renewable energy and invest in infrastructure upgrades.

A report by the Energy Information Administration (EIA) shows that average residential electricity rates across the country have been on the rise for the past decade. While California currently ranks amongst the highest, major changes to electric bills are being debated, and other states are following suit, demonstrating the nationwide challenge of balancing affordability with necessary investments.

 

Uncertain Future

The California Public Utilities Commission is reviewing the fixed charge proposal and is expected to make a decision later this year, with income-based flat-fee utility bills moving closer in the process. The outcome of this decision and potential additional regulatory changes will have significant ramifications for California residents, and some lawmakers plan to overturn income-based charges if adopted, which could set a precedent for how other states handle the rising costs associated with the energy transition.

 

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Demise of nuclear plant plans ‘devastating’ to Welsh economy, MP claims

Wylfa Nuclear Project Cancellation reflects Hitachi's withdrawal, pulling £16bn from North Wales, risking jobs, reshaping UK nuclear power plans as renewables grow and Chinese involvement rises amid shifting energy market policies.

 

Key Points

An indefinite halt to Hitachi's Wylfa Newydd nuclear plant, removing about £16bn investment and jobs from North Wales.

✅ Hitachi withdraws funding amid changing energy market costs

✅ Puts 400 local roles and up to 10,000 construction jobs at risk

✅ UK shifts toward renewables as nuclear project support stalls

 

Chris Ruane said Japanese firm Hitachi’s announcement this morning about the Wylfa project would take £16 billion of investment out of the region.

He said it was the latest in a list of energy projects which had been scrapped as he responded to a statement from business secretary Greg Clark.

Mr Ruane, the Labour member for the Vale of Clywd, said: “In his statement he said the Government are relying now more on renewables, can I put the North Wales picture to him; 1,500 wind turbines were planned off the coast of North Wales. They were removed, those plans were cancelled by the private sector.

“The tidal lagoons for Wales were key to the development of the Welsh economy – the Government itself pulled the support for the Swansea Bay tidal lagoon. That had a knock-on effect for the huge lagoon planned off the coast of North Wales.

“And now today we hear of the cancellation of a £16 billion investment in the North Wales economy. This will devastate the North Wales economy. The people of North Wales need to know that the Prime Minister is batting for them and batting for the UK.”

Mr Clark blamed the changing landscape of the energy market for today’s announcement, and said Wales has been a “substantial and proud leader” in renewable energy during the UK’s green industrial revolution over recent years.

But another Labour MP from North Wales, Albert Owen, of Ynys Mon, said the Wylfa plant’s cancellation in his constituency is putting 400 jobs at risk, as well as the “potential of 8-10,000 construction jobs”, as well as hundreds of operational jobs and 33 apprenticeships.

He asked Mr Clark: “Can I say straightly can we work together to keep this project alive, to ensure that we create the momentum so it can be ready for a future developer or this developer with the right mechanism?”

The minister replied that he and his officials would “work together in a completely open-book way on the options” to try and salvage the project.

But in the Lords, Labour former security minister Lord West of Spithead said the UK’s nuclear industry was in crisis, noting that Europe is losing nuclear power as well.

“In the 1950s our nation led the world in nuclear power generation and decisions by successive governments, of all hues, have got us in the position today where we cannot even construct a large civil nuclear reaction,” he told peers at question time.

Lord West asked: “Are we content that now the only player seems to be Chinese and that by 2035… we are happy for the Chinese to control one third of the energy supply of our nation?”

Business, Energy and Industrial Strategy minister Lord Henley said the Government had hoped for a better announcement from Hitachi but that was not the case.

He said costs in the nuclear sector were rising, amid setbacks at Hinkley Point C, while costs for many renewables were coming down and this was one of the reasons for the problem.

Tory former energy secretary Lord Howell of Guildford said the Chinese were in “pole position” for the rebuilding and replacement “of our nuclear fleet” and this would have a major impact on UK energy policy and plans to meet net zero targets in the 2030s.

Plaid Cymru’s Lord Wigley warned that putting the Wylfa Newydd on indefinite hold would cause economic planning blight in north-west Wales and urged the Government to raise the level of support allocated to the region.

Lord Henley acknowledged the announcement was not welcome but added: “We remain committed to nuclear power. We will look to see what we can do. We still have a great deal of expertise in this country and we can work on that.”

 

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Atlantic grids, forestry, coastlines need rethink in era of intense storms: experts

Atlantic Canada Hurricane Resilience focuses on climate change adaptation: grid hardening, burying lines, coastline resiliency to sea-level rise, mixed forests, and aggressive tree trimming to reduce outages from hurricane-force winds and post-tropical storms.

 

Key Points

A strategy to harden grids, protect coasts, and manage forests to limit hurricane damage across Atlantic Canada.

✅ Grid hardening and selective undergrounding to cut outage risk.

✅ Coastal defenses: seawalls, dikes, and shoreline vegetation upgrades.

✅ Mixed forests and proactive tree trimming to reduce windfall damage.

 

In an era when storms with hurricane-force winds are expected to keep battering Atlantic Canada, experts say the region should make major changes to electrical grids, power utilities and shoreline defences and even the types of trees being planted.

Work continues today to reconnect customers after post-tropical storm Dorian knocked out power to 80 per cent of homes and businesses in Nova Scotia. By early afternoon there were 56,000 customers without electricity in the province, compared with 400,000 at the storm's peak on the weekend, a reminder that major outages can linger long after severe weather.

Recent scientific literature says 35 hurricanes -- not including post-tropical storms like Dorian -- have made landfall in the region since 1850, an average of one every five years that underscores the value of interprovincial connections like the Maritime Link for reliability.

Heavy rains and strong winds batter Shelburne, N.S. on Saturday, Sept. 7, 2019 as Hurricane Dorian approaches, making storm safety practices crucial for residents. (Suzette Belliveau/ CTV Atlantic)

Anthony Taylor, a forest ecologist scientist with Natural Resources Canada, wrote in a recent peer-reviewed paper that climate change is expected to increase the frequency of severe hurricanes.

He says promoting more mixed forests with hardwoods would reduce the rate of destruction caused by the storms.

Erni Wiebe, former director of distribution at Manitoba Hydro, says the storms should cause Atlantic utilities to rethink their view that burying lines is too expensive and to contemplate other long-term solutions such as the Maritime Link that enhance grid resilience.

Blair Feltmate, head of the Intact Centre on Climate Change at the University of Waterloo, says Atlantic Canada should also develop standards for coastline resiliency due to predictions of rising sea levels combining with the storms, while considering how delivery rate changes influence funding timelines.

He says that would mean a more rapid refurbishing of sea walls and dike systems, along with more shoreline vegetation.

Feltmate also calls for an aggressive tree-trimming program to limit power outages that he says "will otherwise continue to plague the Maritimes," while addressing risks like copper theft through better security.

 

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How Canada can capitalize on U.S. auto sector's abrupt pivot to electric vehicles

Canadian EV Manufacturing is accelerating with GM, Ford, and Project Arrow, integrating cross-border supply chains, battery production, rare-earths like lithium and cobalt, autonomous tech, and home charging to drive clean mobility and decarbonization.

 

Key Points

Canadian EV manufacturing spans electric and autonomous vehicles, domestic batteries, and integrated US-Canada trade.

✅ GM and Ford retool plants for EVs and autonomous production

✅ Project Arrow showcases Canadian zero-emission supply capabilities

✅ Lithium, cobalt, and battery hubs target cross-border resilience

 

The storied North American automotive industry, the ultimate showcase of Canada’s high-tensile trade ties with the United States and emerging Canada-U.S. collaboration on EVs momentum, is about to navigate a dramatic hairpin turn.

But as the Big Three veer into the all-electric, autonomous era, some Canadians want to seize the moment and take the wheel.

“There’s a long shadow between the promise and the execution, but all the pieces are there,” says Flavio Volpe, president of the Automotive Parts Manufacturers’ Association.

“We went from a marriage on the rocks to one that both partners are committed to. It could be the best second chapter ever.”

Volpe is referring specifically to GM, which announced late last month an ambitious plan to convert its entire portfolio of vehicles to an all-electric platform by 2035.

But that decision is just part of a cascading transformation across the industry, marking an EV inflection point with existential ramifications for one of the most tightly integrated cross-border manufacturing and supply-chain relationships in the world.

China is already working hard to become the “source of a new way” to power vehicles, President Joe Biden warned last week.

“We just have to step up.”

Canada has both the resources and expertise to do the same, says Volpe, whose ambitious Project Arrow concept — a homegrown zero-emissions vehicle named for the 1950s-era Avro interceptor jet — is designed to showcase exactly that, as recent EV assembly deals in Canada underscore.

“We’re going to prove to the market, we’re going to prove to the (manufacturers) around the planet, that everything that goes into your zero-emission vehicle can be made or sourced here in Canada,” he says.

“If somebody wants to bring what we did over the line and make 100,000 of them a year, I’ll hand it to them.”

GM earned the ire of Canadian auto workers in 2018 by announcing the closure of its assembly plant in Oshawa, Ont. It later resurrected the facility with a $170-million investment to retool it for autonomous vehicles.

“It was, ‘You closed Oshawa, how dare you?’ And I was one of the ‘How dare you’ people,” Volpe says.

“Well, now that they’ve reopened Oshawa, you sit there and you open your eyes to the commitment that General Motors made.”

Ford, too, has entered the fray, promising $1.8 billion to retool its sprawling landmark facility in Oakville, Ont., to build EVs.

It’s a leap of faith of sorts, considering what market experts say is ongoing consumer doubt about EVs and EV supply shortages that drive wait times.

“Range anxiety” — the persistent fear of a depleted battery at the side of the road — remains a major concern, even though it’s less of a problem than most people think.

Consulting firm Deloitte Canada, which has been tracking automotive consumer trends for more than a decade, found three-quarters of future EV buyers it surveyed planned to charge their vehicles at home overnight.

“The difference between what is a perceived issue in a consumer’s mind and what is an actual issue is actually quite negligible,” Ryan Robinson, Deloitte’s automotive research leader, says in an interview.

“It’s still an issue, full stop, and that’s something that the industry is going to have to contend with.”

So, too, is price, especially with the end of the COVID-19 pandemic still a long way off. Deloitte’s latest survey, released last month, found 45 per cent of future buyers in Canada hope to spend less than $35,000 — a tall order when most base electric-vehicle models hover between $40,000 and $45,000.

“You put all of that together and there’s still, despite the electric-car revolution hype, some major challenges that a lot of stakeholders that touch the automotive industry face,” Robinson says.

“It’s not just government, it’s not just automakers, but there are a variety of stakeholders that have a role to play in making sure that Canadians are ready to make the transition over to electric mobility.”

With protectionism no longer a dirty word in the United States and Biden promising to prioritize American workers and suppliers, the Canadian government’s job remains the same as it ever was: making sure the U.S. understands Canada’s mission-critical role in its own economic priorities.

“We’re both going to be better off on both sides of the border, as we have been in the past, if we orient ourselves toward this global competition as one force,” says Gerald Butts, vice-chairman of the political-risk consultancy Eurasia Group and a former principal secretary to Prime Minister Justin Trudeau.

“It served us extraordinarily well in the past … and I have no reason to believe it won’t serve us well in the future.”

Last month, GM announced a billion-dollar plan to build its new all-electric BrightDrop EV600 van in Ingersoll, Ont., at Canada’s first large-scale EV manufacturing plant for delivery vehicles.

That investment, Volpe says, assumes Canada will take the steps necessary to help build a homegrown battery industry — with projects such as a new Niagara-region battery plant pointing the way — drawing on the country’s rare-earth resources like lithium and cobalt that are waiting to be extracted in northern Ontario, Quebec and elsewhere.

Given that the EV industry is still in his infancy, the free market alone won’t be enough to ensure those resources can be extracted and developed, he says.

“General Motors made a billion-dollar bet on Canada because it’s going to assume that the Canadian government — this one or the next one — is going to commit” to building that business.

Such an investment would pay dividends well beyond the auto sector, considering the federal Liberal government’s commitment to lowering greenhouse gas-emissions, including a 2035 EV mandate, and meeting targets set out in the Paris climate accord.

“If you make investments in renewable energy and utility storage using battery technology, you can build an industry at scale that the auto industry can borrow,” Volpe says.

Major manufacturing, retail and office facilities would be able to use that technology to help “shave the peak” off Canada’s GHG emissions and achieve those targets, all the while paving the way for a self-sufficient electric-vehicle industry.

“You’d be investing in the exact same technology you’d use in a car.”

There’s one problem, says Robinson: the lithium-ion batteries on roads right now might not be where the industry ultimately lands.

“We’re not done with with battery technology,” Robinson says. “What you don’t want to do is invest in a technology that is that is rapidly evolving, and could potentially become obsolete going forward.”

Fuel cells — energy-efficient, hydrogen-powered units that work like batteries, but without the need for constant recharging — continue to be part of the conversation, he adds.

“The amount of investment is huge, and you want to be sure that you’re making the right decision, so you don’t find yourself behind the curve just as all that capacity is coming online.”

 

 

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Aging U.S. power grid threatens progress on renewables, EVs

U.S. Grid Modernization is critical for renewable energy integration, EV adoption, climate resilience, and reliability, requiring transmission upgrades, inter-regional links, hardened substations, and smart grid investments to handle extreme weather and decarbonization targets.

 

Key Points

U.S. Grid Modernization upgrades power networks to improve reliability, integrate renewables, and support EV demand.

✅ $2T+ investment needed for transmission upgrades

✅ Extreme weather doubling outages since 2017

✅ Regulatory fragmentation slows inter-regional lines

 

After decades of struggle, the U.S. clean-energy business is booming, with soaring electric-car sales and fast growth in wind and solar power. That’s raising hopes for the fight against climate change.

All this progress, however, could be derailed, as the green revolution stalls without a massive overhaul of America’s antiquated electric infrastructure – a task some industry experts say requires more than $2 trillion. The current network of transmission wires, substations and transformers is decaying with age and underinvestment, a condition highlighted by catastrophic failures during increasingly frequent and severe weather events.

Power outages over the last six years have more than doubled in number compared to the previous six years, according to a Reuters examination of federal data. In the past two years, power systems have collapsed in Gulf Coast hurricanes, West Coast wildfires, Midwest heat waves and a Texas deep freeze and recurring Texas grid crisis risks, causing long and sometimes deadly outages.

Compounding the problem, the seven regional grid operators in the United States are underestimating the growing threat of severe weather caused by climate change, Reuters found in a review of more than 10,000 pages of regulatory documents and operators’ public disclosures. Their risk models, used to guide transmission-network investments, consider historical weather patterns extending as far back as the 1970s. None account for scientific research documenting today’s more extreme weather and how it can disrupt grid generation, transmission and fuel supplies simultaneously.

The decrepit power infrastructure of the world’s largest economy is among the biggest obstacles to expanding clean energy and combating climate change on the ambitious schedule laid out by U.S. President Joe Biden. His administration promises to eliminate or offset carbon emissions from the power sector by 2035 and from the entire U.S. economy by 2050. Such rapid clean-energy growth would pressure the nation’s grid in two ways: Widespread EV adoption will spark a huge surge in power demand; and increasing dependence on renewable power creates reliability problems on days with less sun or wind, as seen in Texas, where experts have outlined reliability improvements that address these challenges.

The U.S. transmission network has seen outages double in recent years amid more frequent and severe weather events, driven by climate change and a utility supply-chain crunch that slows critical repairs. The system needs a massive upgrade to handle expected growth in clean energy and electric cars. 

“Competition from renewables is being strangled without adequate and necessary upgrades to the transmission network,” said Simon Mahan, executive director of the Southern Renewable Energy Association, which represents solar and wind companies.

The federal government, however, lacks the authority to push through the massive grid expansion and modernization needed to withstand wilder weather and accommodate EVs and renewable power. Under the current regulatory regime, and amid contentious electricity pricing proposals in recent years, the needed infrastructure investments are instead controlled by a Byzantine web of local, state and regional regulators who have strong political incentives to hold down spending, according to Reuters interviews with grid operators, federal and state regulators, and executives from utilities and construction firms.

“Competition from renewables is being strangled without adequate and necessary upgrades to the transmission network.”

Paying for major grid upgrades would require these regulators to sign off on rate increases likely to spark strong opposition from consumers and local and state politicians, who are keen to keep utility bills low. In addition, utility companies often fight investments in transmission-network improvements because they can result in new connections to other regional grids that could allow rival companies to compete on their turf, even as coal and nuclear disruptions raise brownout risks in some regions. With the advance of green energy, those inter-regional connections will become ever more essential to move power from far-flung solar and wind installations to population centers.

The power-sharing among states and regions with often conflicting interests makes it extremely challenging to coordinate any national strategy to modernize the grid, said Alison Silverstein, an independent industry consultant and former senior adviser to the U.S. Federal Energy Regulatory Commission (FERC).

“The politics are a freakin’ nightmare,” she said.

The FERC declined to comment for this story. FERC Commissioner Mark Christie, a Republican, acknowledged the limitations of the agency’s power over the U.S. grid in an April 21 agency meeting involving transmission planning and costs.

“We can’t force states to do anything,” Christie said.

The White House and Energy Department did not comment in response to detailed questions from Reuters on the Biden administration’s plans to tackle U.S. grid problems and their impact on green-energy expansion.

The administration said in an April news release that it plans to offer $2.5 billion in grants for grid-modernization projects as part of Biden’s $1 trillion infrastructure package, complementing a proposed clean electricity standard to accelerate decarbonization over the next decade. A modernized grid, the release said, is the “linchpin” of Biden’s clean-energy agenda.

 

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