Corzine wants to triple New Jersey power goals by 2020

By Press of Atlantic City


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New Jersey is powering up an ambitious plan to become a world leader in the use of wind-generated energy.

Gov. Jon Corzine says the Garden State is tripling the amount of wind power it plans to use by 2020 to 3,000 megawatts. That would be 13 percent of New Jersey's total energy, enough to power between 800,000 to just under 1 million homes.

New Jersey's original plans called for 1,000 megawatts of wind energy by 2020. But Corzine thinks the state needs to take better advantage of wind energy sooner than that.

"We want to create this generation's race to the moon, but this time, a race to the sea, to harness this potential wind source off of our coasts, and bring economic development, environmental benefits, and new, green jobs to the Garden State," Corzine said.

Garden State Offshore Energy, a joint venture of PSE&G Renewable Generation and Deepwater Wind, was recently chosen to build a $1 billion, 345 megawatt wind farm in the ocean about 16 miles southeast of Atlantic City.

That plant would be able to power about 125,000 homes.

"We believe that offshore wind has great potential to bring clean energy and jobs to New Jersey," said Ralph Izzo, president of PSE&G.

There are currently no offshore wind power projects anywhere in the United States, but two others have been approved for areas off Rhode Island and Delaware, environmentalists said.

In Atlantic City, the local utilities authority has a wind farm consisting of five wind turbines that generate 7.5 megawatts, enough energy to power approximately 2,500 homes. It powers a wastewater treatment plant, with surplus energy going to the area power grid.

The New Jersey Board of Public Utilities voted to award a $4 million grant to Garden State Offshore Energy. Construction could begin in 2010 after the necessary state and federal permits are obtained.

The state Commerce Commission assessed the potential costs and benefits of offshore wind on New Jersey's economy. It concluded that tourism impacts decline the further the wind turbines are located from the shore. It also concluded that while there would be some negative impacts on tourism, these would be temporary and would decline quickly.

Environmentalists hailed the plan. Dena Mottola Jaborska, executive director of Environment New Jersey, termed it "a gale force for change, moving us away from dirty power and towards a new energy future. It is the most visionary plan to promote offshore wind energy in the nation."

To put the New Jersey plan in perspective, she said there are currently 10 small-scale offshore wind farms worldwide with a combined generating capacity of 587 megawatts. Another 3,000 megawatts are being planned for projects across Europe, she said.

"This is a historic day for New Jersey," added Jeff Tittel, executive director of the New Jersey chapter of the Sierra Club. "Global warming is the single most serious threat to the planet, and offshore wind energy is the most cost-effective form or renewable alternative energy."

Corzine said the project could create as many as 500 new jobs, with twice that amount during construction and installation of the giant turbines.

Garden State Offshore Energy was one of five firms competing to do the project. But Corzine wants the others to also work with the state on their own proposals. One of them, Bluewater Wind, plans to build a similar project about 13 miles off the coast of Rehoboth Beach, Del., said Jim Lanard, the company's director of strategic planning. He said Bluewater is interested in working with New Jersey on another wind energy project.

He also said swimmers and sunbathers would hardly be able to see the giant turbines from the beach.

"These things will appear to be half the size of your thumbnail and as thin as a toothpick," he said.

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A Texas-Sized Gas-for-Electricity Swap

Texas Heat Pump Electrification replaces natural gas furnaces with electric heating across ERCOT, cutting carbon emissions, lowering utility bills, shifting summer peaks to winter, and aligning higher loads with strong seasonal wind power generation.

 

Key Points

Statewide shift from gas furnaces to heat pumps in Texas, reducing emissions and bills while moving grid peak to winter.

✅ Up to $452 annual utility savings per household

✅ CO2 cuts up to 13.8 million metric tons in scenarios

✅ Winter peak rises, summer peak falls; wind aligns with load

 

What would happen if you converted all the single-family homes in Texas from natural gas to electric heating?

According to a paper from Pecan Street, an Austin-based energy research organization, the transition would reduce climate-warming pollution, save Texas households up to $452 annually on their utility bills, and flip the state from a summer-peaking to a winter-peaking system. And that winter peak would be “nothing the grid couldn’t evolve to handle,” according to co-author Joshua Rhodes, a view echoed by analyses outlining Texas grid reliability improvements statewide today.

The report stems from the reality that buildings must be part of any comprehensive climate action plan.

“If we do want to decarbonize, eventually we do have to move into that space. It may not be the lowest-hanging fruit, but eventually we will have to get there,” said Rhodes.

Rhodes is a founding partner of the consultancy IdeaSmiths and an analyst at Vibrant Clean Energy. Pecan Street commissioned the study, which is distilled from a larger original analysis by IdeaSmiths, at the request of the nonprofit Environmental Defense Fund.

In an interview, Rhodes said, “The goal and motivation were to put bounding on some of the claims that have been made about electrification: that if we electrify a lot of different end uses or sectors of the economy...power demand of the grid would double.”

Rhodes and co-author Philip R. White used an analysis tool from the National Renewable Energy Laboratory called ResStock to determine the impact of replacing natural-gas furnaces with electric heat pumps in homes across the ERCOT service territory, which encompasses 90 percent of Texas’ electricity load.

Rhodes and White ran 80,000 simulations in order to determine how heat pumps would perform in Texas homes and how the pumps would impact the ERCOT grid.

The researchers modeled the use of “standard efficiency” (ducted, SEER 14, 8.2 HSPF air-source heat pump) and “superior efficiency” (ductless, SEER 29.3, 14 HSPF mini-split heat pump) heat pump models against two weather data sets — a typical meteorological year, and 2011, which had extreme weather in both the winter and summer and highlighted blackout risks during severe heat for many regions.

Emissions were calculated using Texas’ power sector data from 2017. For energy cost calculations, IdeaSmiths used 10.93 cents per kilowatt-hour for electricity and 8.4 cents per therm for natural gas.

Nothing the grid can't handle
Rhodes and White modeled six scenarios. All the scenarios resulted in annual household utility bill savings — including the two in which annual electricity demand increased — ranging from $57.82 for the standard efficiency heat pump and typical meteorological year to $451.90 for the high-efficiency heat pump and 2011 extreme weather year.

“For the average home, it was cheaper to switch. It made economic sense today to switch to a relatively high-efficiency heat pump,” said Rhodes. “Electricity bills would go up, but gas bills can go down.”

All the scenarios found carbon savings too, with CO2 reductions ranging from 2.6 million metric tons with a standard efficiency heat pump and typical meteorological year to 13.8 million metric tons with the high-efficiency heat pump in 2011-year weather.

Peak electricity demand in Texas would shift from summer to winter. Because heat pumps provide both high-efficiency space heating and cooling, in the scenario with “superior efficiency” heat pumps, the summer peak drops by nearly 24 percent to 54 gigawatts compared to ERCOT’s 71-gigawatt 2016 summer peak, even as recurring strains on the Texas power grid during extreme conditions persist.

The winter peak would increase compared to ERCOT’s 66-gigawatt 2018 winter peak, up by 22.73 percent to 81 gigawatts with standard efficiency heat pumps and up by 10.6 percent to 73 gigawatts with high-efficiency heat pumps.

“The grid could evolve to handle this. This is not a wholesale rethinking of how the grid would have to operate,” said Rhodes.

He added, “There would be some operational changes if we went to a winter-peaking grid. There would be implications for when power plants and transmission lines schedule their downtime for maintenance. But this is not beyond the realm of reality.”

And because Texas’ wind power generation is higher in winter, a winter peak would better match the expected higher load from all-electric heating to the availability of zero-carbon electricity.

 

A conservative estimate
The study presented what are likely conservative estimates of the potential for heat pumps to reduce carbon pollution and lower peak electricity demand, especially when paired with efficiency and demand response strategies that can flatten demand.

Electric heat pumps will become cleaner as more zero-carbon wind and solar power are added to the ERCOT grid, as utilities such as Tucson Electric Power phase out coal. By the end of 2018, 30 percent of the energy used on the ERCOT grid was from carbon-free sources.

According to the U.S. Energy Information Administration, three in five Texas households already use electricity as their primary source of heat, much of it electric-resistance heating. Rhodes and White did not model the energy use and peak demand impacts of replacing that electric-resistance heating with much more energy efficient heat pumps.

“Most of the electric-resistance heating in Texas is located in the very far south, where they don’t have much heating at all,” Rhodes said. “You would see savings in terms of the bills there because these heat pumps definitely operate more efficiently than electric-resistance heating for most of the time.”

Rhodes and White also highlighted areas for future research. For one, their study did not factor in the upfront cost to homeowners of installing heat pumps.

“More study is needed,” they write in the Pecan Street paper, “to determine the feasibility of various ‘replacement’ scenarios and how and to what degree the upgrade costs would be shared by others.”

Research from the Rocky Mountain Institute has found that electrification of both space and water heating is cheaper for homeowners over the life of the appliances in most new construction, when transitioning from propane or heating oil, when a gas furnace and air conditioner are replaced at the same time, and when rooftop solar is coupled with electrification, aligning with broader utility trends toward electrification.

More work is also needed to assess the best way to jump-start the market for high-efficiency all-electric heating. Rhodes believes getting installers on board is key.

“Whenever a homeowner’s making a decision, if their system goes out, they lean heavily on what the HVAC company suggests or tells them because the average homeowner doesn’t know much about their systems,” he said.

More work is also needed to assess the best way to jump-start the market for high-efficiency all-electric heating, and how utility strategies such as smart home network programs affect adoption too. Rhodes believes getting installers on board is key.

 

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IEA: Electricity investment surpasses oil and gas for the first time

Electricity Investment Surpasses Oil and Gas 2016, driven by renewable energy, power grids, and energy efficiency, as IEA reports lower oil and gas spending, rising solar and wind capacity, and declining coal power plant approvals.

 

Key Points

A 2016 milestone where electricity topped global energy investment, led by renewables, grids, and efficiency, per the IEA.

✅ IEA: electricity investment hit $718b; oil and gas fell to $650b.

✅ Renewables led with $297b; solar and wind unit costs declined.

✅ Coal plant approvals plunged; networks and storage spending rose.

 

Investments in electricity surpassed those in oil and gas for the first time ever in 2016 on a spending splurge on renewable energy and power grids as the fall in crude prices led to deep cuts, the International Energy Agency (IEA) said.

Total energy investment fell for the second straight year by 12 per cent to US$1.7 trillion compared with 2015, the IEA said. Oil and gas investments plunged 26 per cent to US$650 billion, down by over a quarter in 2016, and electricity generation slipped 5 per cent.

"This decline (in energy investment) is attributed to two reasons," IEA chief economist Laszlo Varro told journalists.

"The reaction of the oil and gas industry to the prolonged period of low oil prices which was a period of harsh investment cuts; and technological progress which is reducing investment costs in both renewable power and in oil and gas," he said.

Oil and gas investment is expected to rebound modestly by 3 per cent in 2017, driven by a 53 per cent upswing in U.S. shale, and spending in Russia and the Middle East, the IEA said in a report.

"The rapid ramp up of U.S. shale activities has triggered an increase of U.S. shale costs of 16 per cent in 2017 after having almost halved from 2014-16," the report said.

The global electricity sector, however, was the largest recipient of energy investment in 2016 for the first time ever, overtaking oil, gas and coal combined, the report said.

"Robust investments in renewable energy and increased spending in electricity networks, which supports the outlook that low-emissions sources will cover most demand growth, made electricity the biggest area of capital investments," Varro said.

Electricity investment worldwide was US$718 billion, lifted by higher spending in power grids which offset the fall in power generation investments.

"Investment in new renewables-based power capacity, at US$297 billion, remained the largest area of electricity spending, despite falling back by 3 per cent as clean energy investment in developing nations slipped, the report said."

Although renewables investments was 3 per cent lower than five years ago, capacity additions were 50 per cent higher and expected output from this capacity about 35 per cent higher, thanks to the fall in unit costs and technology improvements in solar PV and wind generation, the IEA said.

 

COAL INVESTMENT IS COMING TO AN END

Investments in coal-fired electricity plants fell sharply. Sanctioning of new coal power plants fell to the lowest level in nearly 15 years, reflecting concerns about local air pollution, and emergence of overcapacity and competition from renewables, with renewables poised to eclipse coal in global power generation, notably in China. Coal investments, however, grew in India.

"Coal investment is coming to an end. At the very least, it is coming to a pause," Varro said.

The IEA report said energy efficiency investments continued to expand in 2016, reaching US$231 billion, with most of it going to the building sector globally.

Electric vehicles sales rose 38 per cent in 2016 to 750,000 vehicles at $6 billion, and represented 10 per cent of all transport efficiency spending. Some US$6 billion was spent globally on electronic vehicle charging stations, the IEA said.

Spending on electricity networks and storage continued the steady rise of the past five years, as surging electricity demand puts power systems under strain, reaching an all-time high of US$277 billion in 2016, with 30 per cent of the expansion driven by China’s spending in its distribution system, the report said.

China led the world in energy investments with 21 per cent of global total share, the report said, driven by low-carbon electricity supply and networks projects.

Although oil and gas investments fell in the United States in 2016, its total energy investments rose 16 per cent, even as Americans use less electricity in recent years, on the back of spending in renewables projects, the IEA report said.

 

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Its Electric Grid Under Strain, California Turns to Batteries

California Battery Storage is transforming grid reliability as distributed energy, solar-plus-storage, and demand response mitigate rolling blackouts, replace peaker plants, and supply flexible capacity during heat waves and evening peaks across utilities and homes.

 

Key Points

California Battery Storage uses distributed and utility batteries to stabilize power, shift solar, and curb blackouts.

✅ Supplies flexible capacity during peak demand and heat waves

✅ Enables demand response and replaces gas peaker plants

✅ Aggregated assets form virtual power plants for grid support

 

Last month as a heat wave slammed California, state regulators sent an email to a group of energy executives pleading for help to keep the lights on statewide. “Please consider this an urgent inquiry on behalf of the state,” the message said.

The manager of the state’s grid was struggling to increase the supply of electricity because power plants had unexpectedly shut down and demand was surging. The imbalance was forcing officials to order rolling blackouts across the state for the first time in nearly two decades.

What was unusual about the emails was whom they were sent to: people who managed thousands of batteries installed at utilities, businesses, government facilities and even homes. California officials were seeking the energy stored in those machines to help bail out a poorly managed grid and reduce the need for blackouts.

Many energy experts have predicted that batteries could turn homes and businesses into mini-power plants that are able to play a critical role in the electricity system. They could soak up excess power from solar panels and wind turbines and provide electricity in the evenings when the sun went down or after wildfires and hurricanes, which have grown more devastating because of climate change in recent years. Over the next decade, the argument went, large rows of batteries owned by utilities could start replacing power plants fueled by natural gas.

But that day appears to be closer than earlier thought, at least in California, which leads the country in energy storage. During the state’s recent electricity crisis, more than 30,000 batteries supplied as much power as a midsize natural gas plant. And experts say the machines, which range in size from large wall-mounted televisions to shipping containers, will become even more important because utilities, businesses and homeowners are investing billions of dollars in such devices.

“People are starting to realize energy storage isn’t just a project or two here or there, it’s a whole new approach to managing power,” said John Zahurancik, chief operating officer at Fluence, which makes large energy storage systems bought by utilities and large businesses. That’s a big difference from a few years ago, he said, when electricity storage was seen as a holy grail — “perfect, but unattainable.”

On Friday, Aug. 14, the first day California ordered rolling blackouts, Stem, an energy company based in the San Francisco Bay Area, delivered 50 megawatts — enough to power 20,000 homes — from batteries it had installed at businesses, local governments and other customers. Some of those devices were at the Orange County Sanitation District, which installed the batteries to reduce emissions by making it less reliant on natural gas when energy use peaks.

John Carrington, Stem’s chief executive, said his company would have provided even more electricity to the grid had it not been for state regulations that, among other things, prevent businesses from selling power from their batteries directly to other companies.

“We could have done two or three times more,” he said.

The California Independent System Operator, which manages about 80 percent of the state’s grid, has blamed the rolling blackouts on a confluence of unfortunate events, including extreme weather impacts on the grid that limited supply: A gas plant abruptly went offline, a lack of wind stilled thousands of turbines, and power plants in other states couldn’t export enough electricity. (On Thursday, the grid manager urged Californians to reduce electricity use over Labor Day weekend because temperatures are expected to be 10 to 20 degrees above normal.)

But in recent weeks it has become clear that California’s grid managers also made mistakes last month, highlighting the challenge of fixing California’s electric grid in real time, that were reminiscent of an energy crisis in 2000 and 2001 when millions of homes went dark and wholesale electricity prices soared.

Grid managers did not contact Gov. Gavin Newsom’s office until moments before it ordered a blackout on Aug. 14. Had it acted sooner, the governor could have called on homeowners and businesses to reduce electricity use, something he did two days later. He could have also called on the State Department of Water Resources to provide electricity from its hydroelectric plants.

Weather forecasters had warned about the heat wave for days. The agency could have developed a plan to harness the electricity in numerous batteries across the state that largely sat idle while grid managers and large utilities such as Pacific Gas & Electric scrounged around for more electricity.

That search culminated in frantic last-minute pleas from the California Public Utilities Commission to the California Solar and Storage Association. The commission asked the group to get its members to discharge batteries they managed for customers like the sanitation department into the grid. (Businesses and homeowners typically buy batteries with solar panels from companies like Stem and Sunrun, which manage the systems for their customers.)

“They were texting and emailing and calling us: ‘We need all of your battery customers giving us power,’” said Bernadette Del Chiaro, executive director of the solar and storage association. “It was in a very last-minute, herky-jerky way.”

At the time of blackouts on Aug. 14, battery power to the electric grid climbed to a peak of about 147 megawatts, illustrating how virtual power plants can rapidly scale, according to data from California I.S.O. After officials asked for more power the next day, that supply shot up to as much as 310 megawatts.

Had grid managers and regulators done a better job coordinating with battery managers, the devices could have supplied as much as 530 megawatts, Ms. Del Chiaro said. That supply would have exceeded the amount of electricity the grid lost when the natural gas plant, which grid managers have refused to identify, went offline.

Officials at California I.S.O. and the public utilities commission said they were working to determine the “root causes” of the crisis after the governor requested an investigation.

Grid managers and state officials have previously endorsed the use of batteries, using AI to adapt as they integrate them at scale. The utilities commission last week approved a proposal by Southern California Edison, which serves five million customers, to add 770 megawatts of energy storage in the second half of 2021, more than doubling its battery capacity.

And Mr. Zahurancik’s company, Fluence, is building a 400 megawatt-hour battery system at the site of an older natural gas power plant at the Alamitos Energy Center in Long Beach. Regulators this week also approved a plan to extend the life of the power plant, which was scheduled to close at the end of the year, to support the grid.

But regulations have been slow to catch up with the rapidly developing battery technology.

Regulators and utilities have not answered many of the legal and logistical questions that have limited how batteries owned by homeowners and businesses are used. How should battery owners be compensated for the electricity they provide to the grid? Can grid managers or utilities force batteries to discharge even if homeowners or businesses want to keep them charged up for their own use during blackouts?

During the recent blackouts, Ms. Del Chiaro said, commercial and industrial battery owners like Stem’s customers were compensated at the rates similar to those that are paid to businesses to not use power during periods of high electricity demand. But residential customers were not paid and acted “altruistically,” she said.

 

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Hydro Quebec to increase hydropower capacity to more than 37,000 MW in 2021

Hydro Quebec transmission expansion aims to move surplus hydroelectric capacity from record reservoirs to the US grid via new interties, increasing exports to New England and New York amid rising winter peak demand.

 

Key Points

A plan to add capacity and intertie links to export surplus hydro power from Quebec's reservoirs to the US grid.

✅ 245 MW added in 2021; portfolio reaches 37,012 MW

✅ Reservoirs at unprecedented levels; export potential high

✅ Lacks US transmission; working on new interties

 

Hydro Quebec plans to add an incremental 245 MW of hydro-electric generation capacity in 2021 to its expansive portfolio in the north of the province, while Quebec authorized nearly 1,000 MW for industrial projects across the region, bringing the total capacity to 37,012 MW, an official said Friday

Quebec`s highest peak demand of 39,240 MW occurred on January 22, 2014.

A little over 75% of Quebec`s population heat their homes with electricity, Sutherland said, aligning with Hydro Quebec's strategy to wean the province off fossil fuels over time.

The province-owned company produced 205.1 TWh of power in 2017 and its net exports were 34.4 TWh that year, while Ontario chose not to renew a power deal in a separate development.

Sutherland said Hydro Quebec`s reservoirs are currently at "unprecedented levels" and the company could export more of its electricity to New England and New York, but faces transmission constraints that limit its ability to do so.

Hydro Quebec is working with US transmission developers, electric distribution companies, independent system operators and state government agencies to expand that transmission capacity in order to delivery more power from its hydro system to the US, Sutherland said.

Separately, NB Power signed three deals to bring more Quebec electricity into the province, reflecting growing regional demand.

The last major intertie connection between Quebec and the US was completed close to 30 years ago. The roughly 2,000 MW capacity transmission line that connects into the Boston area was completed in the late 1990s, according to Hydro Quebec spokeswoman Lynn St-Laurent.

 

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Rio Tinto Completes Largest Off-Grid Solar Plant in Canada's Northwest Territories

Rio Tinto Off-Grid Solar Power Plant showcases renewable energy at the Diavik Diamond Mine in Canada's Northwest Territories, cutting diesel use, lowering carbon emissions, and boosting remote mining resilience with advanced photovoltaic technology.

 

Key Points

A remote solar PV plant at Diavik mine supplying clean power while cutting diesel use, carbon emissions, and costs.

✅ Largest off-grid solar in Northwest Territories

✅ Replaces diesel generators during peak solar hours

✅ Enhances sustainability and lowers operating costs

 

In a significant step towards sustainable mining practices, Rio Tinto has completed the largest off-grid solar power plant in Canada’s Northwest Territories. This groundbreaking achievement not only highlights the company's commitment to renewable energy, as Canada nears 5 GW of solar capacity nationwide, but also sets a new standard for the mining industry in remote and off-grid locations.

Located in the remote Diavik Diamond Mine, approximately 220 kilometers south of the Arctic Circle, Rio Tinto's off-grid solar power plant represents a technological feat in harnessing renewable energy in challenging environments. The plant is designed to reduce reliance on diesel fuel, traditionally used to power the mine's operations, and mitigate carbon emissions associated with mining activities.

The decision to build the solar power plant aligns with Rio Tinto's broader sustainability goals and commitment to reducing its environmental footprint. By integrating renewable energy sources like solar power, a strategy that renewable developers say leads to better, more resilient projects, the company aims to enhance energy efficiency, lower operational costs, and contribute to global efforts to combat climate change.

The Diavik Diamond Mine, jointly owned by Rio Tinto and Dominion Diamond Mines, operates in a remote region where access to traditional energy infrastructure is limited, and where, despite lagging solar demand in Canada, off-grid solutions are increasingly vital for reliability. Historically, diesel generators have been the primary source of power for the mine's operations, posing logistical challenges and environmental impacts due to fuel transportation and combustion.

Rio Tinto's investment in the off-grid solar power plant addresses these challenges by leveraging abundant sunlight in the Northwest Territories to generate clean electricity directly at the mine site. The solar array, equipped with advanced photovoltaic technology, which mirrors deployments such as Arvato's first solar plant in other sectors, is capable of producing a significant portion of the mine's electricity needs during peak solar hours, reducing reliance on diesel generators and lowering overall carbon emissions.

Moreover, the completion of the largest off-grid solar power plant in Canada's Northwest Territories underscores the feasibility and scalability of renewable energy solutions, from rooftop arrays like Edmonton's largest rooftop solar to off-grid systems in remote and resource-intensive industries like mining. The success of this project serves as a model for other mining companies seeking to enhance sustainability practices and operational resilience in challenging geographical locations.

Beyond environmental benefits, Rio Tinto's initiative is expected to have positive economic and social impacts on the local community. By reducing diesel consumption, the company mitigates air pollution and noise levels associated with mining operations, improving environmental quality and contributing to the well-being of nearby residents and wildlife.

Looking ahead, Rio Tinto's investment in renewable energy at the Diavik Diamond Mine sets a precedent for responsible resource development and sustainable mining practices in Canada, where solar growth in Alberta is accelerating, and globally. As the mining industry continues to evolve, integrating renewable energy solutions like off-grid solar power plants will play a crucial role in achieving long-term environmental sustainability and operational efficiency.

In conclusion, Rio Tinto's completion of the largest off-grid solar power plant in Canada's Northwest Territories marks a significant milestone in the mining industry's transition towards renewable energy. By harnessing solar power to reduce reliance on diesel generators, the company not only improves operational efficiency and environmental stewardship but also adds to momentum from corporate power purchase agreements like RBC's Alberta solar deal, setting a positive example for sustainable development in remote regions. As global demand for responsible mining practices grows, initiatives like Rio Tinto's off-grid solar project demonstrate the potential of renewable energy to drive positive change in resource-intensive industries.

 

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Why California's Climate Policies Are Causing Electricity Blackouts

California Rolling Blackouts expose grid reliability risks amid a heatwave, as CAISO curtails power while solar output fades at sunset, wind stalls, and scarce natural gas and nuclear capacity plus PG&E issues strain imports.

 

Key Points

Grid outages during heatwaves from low reserves, fading solar, weak wind, and limited firm capacity.

✅ Heatwave demand rose as solar output dropped at sunset

✅ Limited imports and gas, nuclear shortfalls cut reserves

✅ Policy, pricing, and maintenance gaps increased outage risk

 

Millions of Californians were denied electrical power and thus air conditioning during a heatwave, raising the risk of heatstroke and death, particularly among the elderly and sick. 

The blackouts come at a time when people, particularly the elderly, are forced to remain indoors due to Covid-19, and as later heat waves would test the grid again statewide.

At first, the state’s electrical grid operator last night asked customers to voluntarily reduce electricity use. But after lapses in power supply pushed reserves to dangerous levels it declared a “Stage 3 emergency” cutting off power to people across the state at 6:30 pm.

The immediate reason for the black-outs was the failure of a 500-megawatt power plant and an out-of-service 750-megawatt unit not being available. “There is nothing nefarious going on here,” said a spokeswoman for California Independent System Operator (CAISO). “We are just trying to run the grid.”

But the underlying reasons that California is experiencing rolling black-outs for the second time in less than a year stem from the state’s climate policies, which California policymakers have justified as necessary to prevent deaths from heatwaves, and which it is increasingly exporting to Western states as a model.

In October, Pacific Gas and Electric cut off power to homes across California to avoid starting forest fires after reports that its power lines may have started fires in recent seasons. The utility and California’s leaders had over the previous decade diverted billions meant for grid maintenance to renewables. 

And yesterday, California had to impose rolling blackouts because it had failed to maintain sufficient reliable power from natural gas and nuclear plants, or pay in advance for enough guaranteed electricity imports from other states.

It may be that California’s utilities and their regulator, the California Public Utilities Commission, which is also controlled by Gov. Newsom, didn’t want to spend the extra money to guarantee the additional electricity out of fears of raising California’s electricity prices even more than they had already raised them.

California saw its electricity prices rise six times more than the rest of the United States from 2011 to 2019, helping explain why electricity prices are soaring across the state, due to its huge expansion of renewables. Republicans in the U.S. Congress point to that massive increase to challenge justifications by Democrats to spend $2 trillion on renewables in the name of climate change.

Even though the cost of solar panels declined dramatically between 2011 and 2019, their unreliable and weather-dependent nature meant that they imposed large new costs in the form of storage and transmission to keep electricity as reliable. California’s solar panels and farms were all turning off as the blackouts began, with no help available from the states to the East already in nightfall.

Electricity from solar goes away at the very moment when the demand for electricity rises. “The peak demand was steady in late hours,” said the spokesperson for CAISO, which is controlled by Gov. Gavin Newsom, “and we had thousands of megawatts of solar reducing their output as the sunset.”

The two blackouts in less than a year are strong evidence that the tens of billions that Californians have spent on renewables come with high human, economic, and environmental costs.

Last December, a report by done for PG&E concluded that the utility’s customers could see blackouts double over the next 15 years and quadruple over the next 30.

California’s anti-nuclear policies also contributed to the blackouts. In 2013, Gov. Jerry Brown forced a nuclear power plant, San Onofre, in southern California to close.

Had San Onofre still been operating, there almost certainly would not have been blackouts on Friday as the reserve margin would have been significantly larger. The capacity of San Onofre was double that of the lost generation capacity that triggered the blackout.

California's current and former large nuclear plants are located on the coast, which allows for their electricity to travel shorter distances, and through less-constrained transmission lines than the state’s industrial solar farms, to get to the coastal cities where electricity is in highest demand.

There has been very little electricity from wind during the summer heatwave in California and the broader western U.S., further driving up demand. In fact, the same weather pattern, a stable high-pressure bubble, is the cause of heatwaves, since it brought very low wind for days on end along with very high temperatures.

Things won’t be any better, and may be worse, in the winter, with a looming shortage as it produces far less solar electricity than the summer. Solar plus storage, an expensive attempt to fix problems like what led to this blackout, cannot help through long winters of low output.

California’s electricity prices will continue to rise if it continues to add more renewables to its grid, and goes forward with plans to shut down its last nuclear plant, Diablo Canyon, in 2025.

Had California spent an estimated $100 billion on nuclear instead of on wind and solar, it would have had enough energy to replace all fossil fuels in its in-state electricity mix.

To manage the increasingly unreliable grid, California will either need to keep its nuclear plant operating, build more natural gas plants, underscoring its reliance on fossil fuels for reliability, or pay ever more money annually to reserve emergency electricity supplies from its neighbors.

After the blackouts last October, Gov. Newsom attacked PG&E Corp. for “greed and mismanagement” and named a top aide, Ana Matosantos, to be his “energy czar.” 

“This is not the new normal, and this does not take 10 years to solve,” Newsom said. “The entire system needs to be reimagined.”

 

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