Megawatt Penalty for Rocket Attack

California Grid Modernization Funding will upgrade transmission and distribution, boost grid resilience, enable renewable energy integration, expand energy storage, and deploy smart grid controls statewide with over $500 million in federal infrastructure investment.

Key Points

Federal support to harden California's grid, integrate renewables, add storage, and deploy smart upgrades for reliability.

✅ Strengthens transmission and distribution for wildfire and heat resilience

✅ Integrates solar and wind with storage and advanced grid controls

✅ Deploys smart meters, DER management, and modern cybersecurity

California has recently been awarded over $500 million in federal funds to significantly improve and modernize its power grid. This substantial investment marks a pivotal step in addressing the state’s ongoing energy challenges, enhancing grid resilience, and supporting its ambitious climate goals. The funding, announced by federal and state officials, is set to bolster California’s efforts to upgrade its electrical infrastructure, integrate renewable energy sources, and ensure a more reliable and sustainable energy system for its residents.

California's power grid has faced numerous challenges in recent years, including extreme weather events, high energy demand, and an increasing reliance on renewable energy sources. The state's electrical infrastructure has struggled to keep pace with these demands, leading to concerns about reliability, efficiency, and the capacity to handle new energy technologies. The recent federal funding is a critical component of a broader strategy to address these issues and prepare the grid for future demands.

The $500 million in federal funds is part of a larger initiative to support energy infrastructure projects across the United States, including a Washington state grant that strengthens regional infrastructure. The investment aims to modernize aging grid systems, improve energy efficiency, and enhance the integration of renewable energy sources. For California, this funding represents a significant opportunity to address several key areas of concern in its power grid.

One of the primary objectives of the funding is to enhance the resilience of the power grid. California has experienced a series of extreme weather events, including wildfires and heatwaves, driven in part by climate change impacts across the U.S., which have put considerable strain on the electrical infrastructure. The new investment will support projects designed to strengthen the grid’s ability to withstand and recover from these events. This includes upgrading infrastructure to make it more robust and less susceptible to damage from natural disasters.

Another key focus of the funding is the integration of renewable energy sources. California is a leader in the adoption of solar and wind energy, and the state has set ambitious goals for increasing its use of clean energy. However, integrating these variable energy sources into the grid presents technical challenges, including ensuring a stable and reliable power supply. The federal funds will be used to develop and deploy advanced technologies that can better manage and store renewable energy, such as battery storage systems, improving the overall efficiency and effectiveness of the grid.

In addition to resilience and renewable integration, the funding will also support efforts to modernize grid infrastructure. This includes upgrading transmission and distribution systems, implementing smarter electricity infrastructure and smart grid technologies, and enhancing grid management and control systems. These improvements are essential for creating a more flexible and responsive power grid that can meet the evolving needs of California’s energy landscape.

The investment in grid modernization also aligns with California’s broader climate goals. The state has set targets to reduce greenhouse gas emissions and increase the use of clean energy sources as it navigates keeping the lights on during its energy transition. By improving the power grid and supporting the integration of renewable energy, California is making progress toward achieving these goals while also creating jobs and stimulating economic growth.

The allocation of federal funds comes at a crucial time for California. The state has faced significant challenges in recent years, including power outages, energy reliability issues, and increasing energy costs that make repairing California's grid especially complex today. The new funding is expected to address many of these concerns by supporting critical infrastructure improvements and ensuring that the state’s power grid can meet current and future demands.

Federal and state officials have expressed strong support for the funding and its potential impact. The investment is seen as a major step forward in creating a more resilient and sustainable energy system for California. It is also expected to serve as a model for other states facing similar challenges in modernizing their power grids and integrating renewable energy sources.

The federal funding is part of a broader push to address infrastructure needs across the country. The Biden administration has prioritized investment in energy infrastructure, including a $34 million DOE initiative supporting grid improvements, as part of its broader agenda to combat climate change and build a more sustainable economy. The funding for California’s power grid is a reflection of this commitment and an example of how federal resources can support state and local efforts to improve infrastructure and address pressing energy challenges.

In summary, California’s receipt of over $500 million in federal funds represents a significant investment in the state’s power grid. The funding will support efforts to enhance grid resilience, integrate renewable energy sources, and modernize infrastructure. As California continues to face challenges related to extreme weather, energy reliability, and climate goals, this investment will play a crucial role in building a more reliable, efficient, and sustainable energy system. The initiative also highlights the importance of federal support in addressing infrastructure needs and advancing environmental and economic goals.

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EU Electrification Strategy 2050 outlines shifting transport, buildings, and industry to clean power, accelerating EV adoption, heat pumps, and direct electrification to meet targets, reduce emissions, and replace fossil fuels with renewables and low-carbon grids.

Key Points

EU plan to cut emissions 95% by 2050 by electrifying transport, buildings and industry with clean power.

✅ 60% of final energy from electricity by 2050

✅ EVs dominate transport; up to 63% electric share

✅ Heat pumps electrify buildings; industry to 50% direct

The European Union has one of the most ambitious carbon emission reduction goals under the global Paris Agreement on climate change – a 95% reduction by 2050.

It seems that everyone has an idea for how to get there. Some are pushing nuclear energy. Others are pushing for a complete phase-out of fossil fuels and a switch to renewables.

Today the European electricity industry came out with their own plan, amid expectations of greater electricity price volatility in Europe in the coming years. A study published today by Eurelectric, the trade body of the European power sector, concludes that the 2050 goal will not be possible without a major shift to electricity in transport, buildings and industry.

The study finds that for the EU to reach its 95% emissions reduction target, electricity needs to cover at least 60 percent of final energy consumption by 2050. This would require a 1.5 percent year-on-year growth of EU electricity use, with evidence that EVs could raise electricity demand significantly in other markets, while at the same time reducing the EU’s overall energy consumption by 1.3 percent per year.

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Transport is one of the areas where electrification can deliver the most benefit, because an electric car causes far less carbon emissions than a conventional vehicle, with e-mobility emerging as a key driver of electricity demand even if that electricity is generated in a fossil fuel power plant.

In the most ambitious scenario presented by the study, up to 63 percent of total final energy consumption in transport will be electric by 2050, and some analyses suggest that mass adoption of electric cars could occur much sooner, further accelerating progress.

Building have big potential as well, according to the study, with 45 to 63 percent of buildings energy consumption could be electric in 2050 by converting to electric heat pumps. Industrial processes could technically be electrified with up to 50 percent direct electrification in 2050, according to the study. The relative competitiveness of electricity against other carbon-neutral fuels will be the critical driver for this shift, but grid carbon intensity differs across markets, such as where fossil fuels still supply a notable share of generation.

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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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BC Hydro Site C and Clean Energy Policy shapes B.C.'s power mix, affecting run-of-river hydro, net metering for rooftop solar, independent power producers, and surplus capacity forecasts tied to LNG Canada demand.

Key Points

BC Hydro's strategy centers on Site C, limiting new run-of-river projects and tightening net metering amid surplus power

✅ Site C adds long-term capacity with lower projected rates.

✅ Run-of-river IPP growth paused amid surplus forecasts.

✅ Net metering limits deter oversized rooftop solar.

Innergex Renewable Energy Inc. is celebrating the official commissioning today of what may be the last large run-of-river hydro project in B.C. for years to come.

The project – two new generating stations on the Upper Lillooet River and Boulder Creek in the Pemberton Valley – actually began producing power in 2017, but the official commissioning was delayed until Friday September 14.

Innergex, which earlier this year bought out Vancouver’s Alterra Power, invested $491 million in the two run-of-river hydro-electric projects, which have a generating capacity of 106 megawatts of power. The project has the generating capacity to power 39,000 homes.

The commissioning happened to coincide with an address by BC Hydro CEO Chris O’Riley to the Greater Vancouver Board of Trade Friday, in which he provided an update on the progress of the $10.7-billion Site C dam project.

That project has put an end, for the foreseeable future, of any major new run-of-river projects like the Innergex project in Pemberton.

BC Hydro expects the new dam to produce a surplus of power when it is commissioned in November 2024, so no new clean energy power calls are expected for years to come.

Independent power producers aren’t the only ones who have seen a decline in opportunities to make money in B.C. providing renewable power, as the Siwash Creek project shows. So will homeowners who over-build their own solar power systems, in an attempt to make money from power sales.

There are about 1,300 homeowners in B.C. with rooftop solar systems, and when they produce surplus power, they can sell it to BC Hydro.

BC Hydro is amending the net metering program to discourage homeowners from over-building. In some cases, some howeowners have been generating 40% to 50% more power than they need.

“We were getting installations that were massively over-sized for their load, and selling this big quantity of power to us,” O’Riley said. “And that was never the idea of the program.”

Going forward, BC Hydro plans to place limits on how much power a homeowner can sell to BC Hydro.

BC Hydro has been criticized for building Site C when the demand for power has been generally flat, and reliance on out-of-province electricity has drawn scrutiny. But O’Riley said the dam isn’t being built for today’s generation, but the next.

“We’re not building Site C for today,” he said. “We have an energy surplus for the short term. We’re not even building it for 2024. We’re building it for the next 100 years.”

O’Riley acknowledged Site C dam has been a contentious and “extremely challenging” project. It has faced numerous court challenges, a late-stage review by the BC Utilities Commission, cost overruns, geotechnical problems and a dispute with the main contractors.

In a separate case, the province was ordered to pay $10 million over the denial of a Squamish power project, highlighting broader legal risk.

But those issues have been resolved, O’Riley said, and the project is back on track with a new construction schedule.

“As we move forward, we have a responsibility to deliver a project on time and against the new revised budget, and I’m confident the changes we’ve made are set up to do that,” O’Riley said.

Currently, there are about 3,300 workers employed on the dam project.

Despite criticisms that BC Hydro is investing in a legacy mega-project at a time when cost of wind and solar have been falling, O’Riley insisted that Site C was the best and lowest cost option.

“First, it’s the lowest cost option,” he said. “We expect over the first 20 years of Site C’s operating life, our customers will see rates 7% to 10% below what it would otherwise be using the alternatives.”

BC Hydro missed a critical window to divert the Peace River, something that can only be done in September, during lower river flows. That added a full year’s delay to the project.

O’Riley said BC Hydro had built in a one-year contingency into the project, so he expects the project can still be completed by 2024 – the original in-service target date. But the delay will add more than $2 billion to the last budget estimate, boosting the estimated capital cost from $8.3 billion to $10.7 billion.

Meeting the 2024 in-service target date could be important, if Royal Dutch Shell and its consortium partners make a final investment decision this year on the $40 billion LNG Canada project.

That project also has a completion target date of 2024, and would be a major new industrial customer with a substantial power draw for operations.

“If they make a decision to go forward, they will be a very big customer of BC Hydro,” O’Riley told Business in Vancouver. “They would be in our top three or four biggest customers.”

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Baltic States EU Grid Synchronization strengthens energy independence and electricity security, ending IPS/UPS reliance. Backed by interconnectors like LitPol Link, NordBalt, and Estlink, it aligns with NATO interests and safeguards against subsea infrastructure threats.

Key Points

A shift by Estonia, Latvia, and Lithuania to join the EU grid, boosting energy security and reducing Russian leverage.

✅ Synchronized with EU grid on Feb 9, 2025 after islanding tests.

✅ New interconnectors: LitPol Link, NordBalt, Estlink upgrades.

✅ Reduces IPS/UPS risks; bolsters NATO and critical infrastructure.

In a landmark move towards greater energy independence and European integration, the Baltic nations of Estonia, Latvia, and Lithuania have officially disconnected from Russia's electricity grid, a path also seen in Ukraine's rapid grid link to the European system. This decisive action, completed in February 2025, not only ends decades of reliance on Russian energy but also enhances the region's energy security and aligns with broader geopolitical shifts.

Historical Context and Strategic Shift

Historically, the Baltic states were integrated into the Russian-controlled IPS/UPS power grid, a legacy of their Soviet past. However, in recent years, these nations have sought to extricate themselves from Russian influence, aiming to synchronize their power systems with the European Union (EU) grid. This transition gained urgency following Russia's annexation of Crimea in 2014 and further intensified after the invasion of Ukraine in 2022, as demonstrated by Russian strikes on Ukraine's grid that underscored energy vulnerability.

The Disconnection Process

The process culminated on February 8, 2025, when Estonia, Latvia, and Lithuania severed their electrical ties with Russia. For approximately 24 hours, the Baltic states operated in isolation, conducting rigorous tests to ensure system stability and resilience, echoing winter grid protection efforts seen elsewhere. On February 9, they successfully synchronized with the EU's continental power grid, marking a historic shift towards European energy integration.

Geopolitical and Security Implications

This transition holds significant geopolitical weight. By disconnecting from Russia's power grid, the Baltic states reduce potential leverage that Russia could exert through energy supplies. The move also aligns with NATO's strategic interests, enhancing the security of critical infrastructure in the region, amid concerns about Russian hacking of US utilities that highlight cyber risks.

Economic and Technical Challenges

The shift was not without challenges. The Baltic states had to invest heavily in infrastructure to ensure compatibility with the EU grid and navigate regional market pressures such as a Nordic grid blockade affecting transmission capacity. This included constructing new interconnectors and upgrading existing facilities. For instance, the LitPol Link between Lithuania and Poland, the NordBalt cable connecting Lithuania and Sweden, and the Estlink between Estonia and Finland were crucial in facilitating this transition.

Impact on Kaliningrad

The disconnection has left Russia's Kaliningrad exclave isolated from the Russian power grid, relying solely on imports from Lithuania. While Russia claims to have measures in place to maintain power stability in the region, the long-term implications remain uncertain.

Ongoing Security Concerns

The Baltic Sea region has experienced heightened security concerns, particularly regarding subsea cables and pipelines. Increased incidents of damage to these infrastructures have raised alarms about potential sabotage, including a Finland cable damage investigation into a suspected Russian-linked vessel. Authorities continue to investigate these incidents, emphasizing the need for robust protection of critical energy infrastructure.

The successful disconnection and synchronization represent a significant step in the Baltic states' journey towards full integration with European energy markets. This move is expected to enhance energy security, promote economic growth, and solidify geopolitical ties with the EU and NATO. As the region continues to modernize its energy infrastructure, ongoing vigilance against security threats will be paramount, as recent missile and drone attacks on Kyiv's grid demonstrate.

The Baltic states' decision to disconnect from Russia's power grid and synchronize with the European energy system is a pivotal moment in their post-Soviet transformation. This transition not only signifies a break from historical dependencies but also reinforces their commitment to European integration and collective security. As these nations continue to navigate complex geopolitical landscapes, their strides towards energy independence serve as a testament to their resilience and strategic vision.

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Ontario EV Battery Separator Plant anchors Canada's EV supply chain, with Asahi Kasei producing lithium-ion battery separators in Niagara Region to support Honda's Alliston assembly, clean transportation growth, and sustainable manufacturing jobs.

Key Points

Asahi Kasei's Niagara Region plant makes lithium-ion battery separators supplying Honda's EV factory in Ontario.

✅ Starts up by 2027 to align with Honda EV output timeline.

✅ Backed by clean tech tax credits and public investment.

✅ Boosts local jobs, R&D, and clean transportation leadership.

The automotive industry is undergoing a seismic shift, and Canada is firmly planting its flag in the electric vehicle (EV) revolution, propelled by recent EV assembly deals across the country. A new $1.6 billion battery component plant in Ontario's Niagara Region signifies a significant step towards a cleaner, more sustainable transportation future. This Asahi Kasei facility, a key player in Honda's $15 billion electric vehicle supply chain investment, promises to create jobs, boost the local economy, and solidify Ontario's position as a leader in clean transportation technology.

Honda's ambitious project forms part of Honda's Ontario EV investment that involves constructing a dedicated battery plant adjacent to their existing Alliston, Ontario assembly facility. This new plant will focus on producing fully electric vehicles, requiring a robust supply chain for critical components. Asahi Kasei's Niagara Region plant enters the picture here, specializing in the production of battery separators – a thin film crucial for separating the positive and negative electrodes within a lithium-ion battery. These separators play a vital role in ensuring the battery functions safely and efficiently.

The Niagara Region plant is expected to be operational by 2 027, perfectly aligning with Honda's EV production timeline. This strategic partnership benefits both companies: Honda secures a reliable source for a vital component, while Asahi Kasei capitalizes on the burgeoning demand for EV parts. The project is a catalyst for economic growth in Ontario, creating jobs in construction and manufacturing, supporting an EV jobs boom province-wide, and potentially future research and development sectors. Additionally, it positions the province as a hub for clean transportation technology, attracting further investment and fostering innovation.

This announcement isn't an isolated event. News of Volkswagen constructing a separate EV battery plant in St. Thomas, Ontario, and the continuation of a major EV battery project near Montreal further underscore Canada's commitment to electric vehicles. These developments signify a clear shift in the country's automotive landscape, with a focus on sustainable solutions.

Government support has undoubtedly played a crucial role in attracting these investments. The Honda deal involves up to $5 billion in public funds. Asahi Kasei's Niagara Region plant is also expected to benefit from federal and provincial clean technology tax credits. This demonstrates a collaborative effort between government and industry, including investments by Canada and Quebec in battery assembly, to foster a thriving EV ecosystem in Canada.

The economic and environmental benefits of this project are undeniable. Battery production is expected to create thousands of jobs, while the shift towards electric vehicles will lead to reduced emissions and a cleaner environment. Ontario stands to gain significantly from this transition, becoming a leader in clean energy technology and attracting skilled workers and businesses catering to the EV sector, especially as the U.S. auto pivot to EVs accelerates across the border.

However, challenges remain. Concerns about the environmental impact of battery production, particularly the sourcing of raw materials and the potential for hazardous waste, need to be addressed. Additionally, ensuring a skilled workforce capable of handling the complexities of EV technology is paramount.

Despite these challenges, the future of electric vehicles in Canada appears bright. Major automakers are making significant investments, government support is growing, and consumer interest in EVs is on the rise. The Niagara Region plant serves as a tangible symbol of Canada's commitment to a cleaner and more sustainable transportation future. With careful planning and continued Canada-U.S. collaboration across the sector, this project has the potential to revolutionize the Canadian automotive industry and pave the way for a greener tomorrow.

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