GM turns 100 - but is the future electric?

By New York Times


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The Chevrolet Volt is expected to be the icing on General MotorsÂ’ 100th birthday cake. The much-promoted sedan, which will operate as an electric car in typical local driving, is intended to provide a jump-start for the companyÂ’s second century.

The timing of the event is fortuitous, for much more is riding on the Volt than whether a new model using experimental technologies will be a hit. For if the Volt succeeds, it could put the troubled company on a whole new path after 10 decades tethered to the internal-combustion engine. If it fails, it could drag GM, and perhaps the entire struggling American auto industry, even further behind Asian competitors.

It was on Sept. 16, 1908, that William Crapo Durant filed the incorporation papers that formed GM, with a revitalized Buick as its foundation. The centennial should be a time of joy at the company. But, with losses since 2005 approaching $70 billion, and Toyota having accelerated past GM into the No. 1 spot in global auto sales, the companyÂ’s staff wonÂ’t be dancing in party hats.

Instead of toasting the glory days when GM owned half of the United States car and truck market — its share peaked at 51 percent in 1962 amid suggestions that it should be broken up under antitrust laws — GM executives are looking expectantly ahead to November 2010. That’s when the Volt, expected to break cover this week in close to final form, is due to reach customers.

By mobilizing its formidable marketing resources, GM has piqued interest in the Volt. Anticipation is high; when unauthorized photos and surreptitious video footage emerged recently, they spread across the Internet with viral intensity.

The interest goes beyond the usual curiosity about the styling and features of a wholly new model. The public, like industry veterans and seasoned experts, seems to grasp the potential: the Volt could revive DetroitÂ’s fortunes while loosening OPECÂ’s stranglehold.

Burt Rutan, the aerospace visionary whose accomplishments include the Voyager round-the-world aircraft and who is also an electric-car enthusiast, is among the believers. “I expect the Chevy Volt to be both a success and a transportation game-changer,” he said.

Though electric cars were common in the early 20th century, gasoline models had won out by the 1920s. Since then, the concept has surfaced again and again, but never in a car with mass-market appeal. Still, throughout the 20th century GM was developing breakthroughs in electrical systems — coil ignitions, electric starters, computerized powertrains and digital infotainment systems — that mainly ended up advancing its fossil-fueled vehicles.

But at the same time, GM researchers were quietly investigating alternatives to internal combustion. In the 1960s, the research and development staff experimented with fuel cells, hybrids and plug-in electric cars.

By the mid-1990s, GM took a gamble that electric propulsion was ready for public consumption. It leased 1,100 two-seat EV1 commuter cars, based on the Impact electric concept car.

The EV1 was stymied by its short range — sometimes only 50 miles on a charge. And unlike the Volt it had no backup power if the batteries ran down. Yet the EV1 had a devoted following, and lessees protested when GM took back the cars to crush them. GM called the EV1 a $1 billion learning experience.

Those lessons, and recent knowledge gained developing vastly superior lithium-ion batteries, are the VoltÂ’s great enablers. But despite widespread enthusiasm for GMÂ’s brilliant 2007 Volt concept car, there are growing doubts about the VoltÂ’s chances of success.

Some of that uncertainty can be traced to GMÂ’s reluctance to put its cards on the table, potentially ceding a competitive advantage more than two years before the car goes on sale.

But there is also considerable doubt about whether lithium-ion batteries can meet the public’s high expectations for range and durability. It is clear that both Toyota and Honda, which have done lithium-ion research, are taking a wait-and-see approach toward lithium-ion — and may actually be moving to other technologies. (All current hybrid cars use nickel-metal-hydride batteries, an older but hardly ideal technology.)

Finally, there are questions about the cost. GM executives concede that they are revising the price upward. While the company initially hinted at a $30,000 starting price, executives have recently suggested that the Volt might end up in the mid- to high-$40,000 range.

What is not in doubt is that the Volt will be a four-passenger, front-drive compact sedan. But the high-style design of the Volt concept, which captivated crowds at the 2007 Detroit auto show, has given way to a more conventional look that fits without flamboyance into the Chevrolet family. Recent spy photos reveal that the roof has been raised and the window sills altered, presumably to provide a more usable passenger cabin.

GM still stands behind its pledge that the Volt will be able to travel at least 40 miles with no exhaust emissions on a fully charged battery. The sole propulsion source is a 160-horsepower alternating-current motor. The 1.4-liter gas engine runs only when necessary to power a generator, which in turn supplies electrical current to both the battery pack and the drive motor.

The concept had a turbocharged 3-cylinder; the production car will have a naturally aspirated 4-cylinder.

Electric motors, generators and engines are old hat at GM, in contrast to the VoltÂ’s lithium-ion battery pack, a leap into uncharted territory. The 400-pound T-shaped pack provides 16 kilowatt-hours of electricity (equivalent to 21 horsepower for one hour), and is nestled between and behind the seats.

After studying lithium-ion batteries for decades, GM began working last year with two organizations to move them from the lab onto the road. The development partners are Compact Power, a subsidiary of the Korean battery maker LG Chem, and Continental Automotive Systems of Germany, using battery cells designed by A123Systems of Watertown, Mass. GM recently decided which of two competing lithium-ion chemistries it will use and which company will make the batteries, but it has made no public announcement.

The Volt is such a departure from the fossil-fuel age that there are different views on how to categorize it. Mr. Rutan calls it a “proper hybrid” because owners have the option of driving on electricity or on a combination of electricity and gasoline. Most engineers prefer “series hybrid,” which means an electrically driven car that employs a second form of power conversion to supplement the battery’s energy reserve.

GM hopes to distinguish the Volt from ordinary hybrids by labeling it an electric car. Plugging into a standard household socket for six or so hours to charge the batteries, and topping off the 12-gallon gas tank, will provide 400 miles of driving range, GM says.

An electric car that spews no emissions and consumes only a few pennies’ worth of energy commuting to work, while also capable of several hundred miles of range, is the better mousetrap that appeals to green advocates and auto industry pundits alike. The actor Ed Begley Jr., a former EV1 leaseholder who owns a Toyota Prius, said: “I think the Volt’s going to be good for everybody. None of us needs a sledgehammer to install a carpet tack. By that, I mean most trips are short — to and from work, to a restaurant or store.”

Mr. Begley said he and his wife used their Prius for long trips, and an electric car (a 2003 Toyota RAV4 EV) in town.

“The arrival of the Volt and other electric cars will reduce not only America’s dependence on foreign oil, but also the smog I experience every day in L.A.,” he said.

Chris Paine, who wrote and directed the documentary “Who Killed the Electric Car?” concurs. “GM seems motivated and ahead of the competition,” he said. “It’s a cultural shift of huge proportions for a vast auto company to embrace the concept of a car that’s more than an internal-combustion engine.

“Of course, there are huge technical and financial challenges,” he added. Still, “The price of oil and consumer interest in change should make the Volt a success.”

Industry watchers are more cautious in their optimism. Csaba Csere, editor in chief of Car and Driver magazine, said, “The Volt could put GM in the most positive light it’s enjoyed in 30 years, but its success depends on solving two issues: battery durability and cost.”

Mr. Csere (pronounced CHED-uh) noted that lithium-ion batteries had proved successful in laptop computers. “But to serve the car world, they’ll have to last 10 years, versus the typical two- or three-year laptop lifespan.”

Manahem Anderman, president of Advanced Automotive Batteries and an electric-car consultant, is also unconvinced. “Without three or four years to test battery life in both the laboratory and in the field, prudent engineering steps have to be bypassed,” he said. “Lacking long-term data, GM might have to include the cost of a battery replacement in the Volt’s price.”

Mr. Anderman added: “Rushing to deliver 60,000 electric vehicles per year poses a phenomenal risk. The business case for a vehicle with a $10,000 battery is problematic. I predict GM will end up building only a few thousand of them.” He said he did not expect the Volt “to be either a commercial success or a long-term benefit” to GM’s image.

An auto industry analyst, Jim Hall of 2953 Analytics in Birmingham, Mich., takes a more sanguine view. “You’ve got to consider the Volt an investment in new technology,” he said. “As was the case with the Prius, GM won’t earn a profit during the life cycle of the first-generation Volt, but they will gain a foot in the door with this new technology.”

GM has said that its next-generation Saturn Vue hybrid, due in fall 2010, will also receive lithium-ion batteries and be capable of plug-in recharging.

Robert C. Stempel, the former chairman of both General Motors and Energy Conversion Devices, the Michigan company that developed the nickel-metal-hydride battery, relishes what lies ahead. “The Volt has the possibility of being one of the most successful vehicles in GM history,” he said.

While the Volt is on track to be the first quasi-electric car capable of replacing the conventional sedan, there is no guarantee that it will trump the Prius to become the new green-car king.

Mr. Hall said: “If GM were alone in this initiative, the Volt probably would be enough to boost it back to the top of the technological heap. But in Toyota City, there’s a seven-story tower called the Electric Powertrain Building. And Chrysler has a hybrid project called ENVI that’s progressing more quickly than expected. So the best that can be hoped is that the Volt will move GM to the front row of companies with contemporary propulsion technology.”

Maintaining front-row status is the key to a GM that thrives in its second century. David Cole, the chairman of the Center for Automotive Research in Ann Arbor, Mich., put a fine point on what lies ahead. “The plug-in hybrid is the most notable technological advancement of the past 50 years,” he said. “GM’s challenge is making them profitable and continuing to invent a broad range of advanced vehicles.”

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London Gateway Unveils World’s First All-Electric Berth

London Gateway All-Electric Berth enables shore power and cold ironing for container ships, cutting emissions, improving efficiency, and supporting green logistics, IMO targets, and UK net-zero goals through grid connection and port electrification.

 

Key Points

It is a shore power berth supplying electricity to ships, cutting emissions and costs while boosting port efficiency.

✅ Grid connection enables cold ironing for container ships

✅ Supports IMO decarbonization and UK net-zero goals

✅ Stabilizes energy costs versus marine fuels

 

London Gateway, one of the UK’s premier deep-water ports, has unveiled the world’s first all-electric berth, marking a significant milestone in sustainable port operations. This innovative development aims to enhance the port's capacity while reducing its environmental impact. The all-electric berth, which powers vessels using electricity, similar to emerging offshore vessel charging solutions, instead of traditional fuel sources, is expected to greatly improve operational efficiency and cut emissions from ships docking at the port.

The launch of this electric berth is part of London Gateway’s broader strategy to become a leader in green logistics, with parallels in electric truck deployments at California ports that support port decarbonization, aligning with the UK’s ambitious climate goals. By transitioning to electric power, the port reduces reliance on fossil fuels and significantly lowers carbon emissions, contributing to a cleaner environment and supporting the maritime industry’s transition towards sustainability.

The berth will provide cleaner power to container ships, enabling them to connect to the grid while docked, similar to electric ships on the B.C. coast, rather than running their engines, which traditionally contribute to pollution. This innovation supports the UK's broader push for decarbonizing its transportation and logistics sector, especially as the global shipping industry faces increasing pressure to reduce its carbon footprint.

The new infrastructure is expected to increase London Gateway’s operational capacity, allowing for a higher volume of traffic while simultaneously addressing the environmental challenges posed by growing port activities. By integrating advanced technologies like the all-electric berth, and advances such as battery-electric high-speed ferries, the port can handle more shipments without expanding its reliance on traditional fuel-based power sources. This could lead to increased cargo throughput, as shipping lines are incentivized to use a greener, more efficient port for their operations.

The project aligns with broader global trends, including electric flying ferries in Berlin, as ports and shipping companies seek to meet international standards set by the International Maritime Organization (IMO) and other regulatory bodies. The IMO has set aggressive targets for reducing greenhouse gas emissions from shipping, and the UK has pledged to be net-zero by 2050, with the shipping sector playing a crucial role in that transition.

In addition to its environmental benefits, the electric berth also helps reduce the operational costs for shipping lines, as seen with electric ferries scaling in B.C. programs across the sector. Traditional fuel costs can be volatile, whereas electric power offers a more stable and predictable expense. This cost stability could make London Gateway an even more attractive port for international shipping companies, further boosting its competitive position in the global market.

Furthermore, the project is expected to have broader economic benefits, generating jobs and fostering innovation, such as hydrogen crane projects in Vancouver, within the green technology and maritime sectors. London Gateway has already made significant strides in sustainable practices, including a focus on automated systems and energy-efficient logistics solutions. The introduction of the all-electric berth is the latest in a series of initiatives aimed at strengthening the port’s sustainability credentials.

This groundbreaking development sets a precedent for other global ports to adopt similar sustainable technologies. As more ports embrace electrification and other green solutions, the shipping industry could experience a dramatic reduction in its environmental footprint. This shift could have a cascading effect on the wider logistics and supply chain industries, leading to cleaner and more efficient global trade.

London Gateway’s all-electric berth represents a forward-thinking approach to the challenges of climate change and the need for sustainability in the maritime sector. With its ability to reduce emissions, improve port capacity, and enhance operational efficiency, this pioneering project is poised to reshape the future of global shipping. As more ports around the world follow suit, the potential for widespread environmental impact in the shipping industry is significant, providing hope for a greener future in international trade.

 

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Renewables are not making electricity any more expensive

Renewables' Impact on US Wholesale Electricity Prices is clear: DOE analysis shows wind and solar, capacity gains, and natural gas lowering rates, shifting daily patterns, and triggering occasional negative pricing in PJM and ERCOT.

 

Key Points

DOE data show wind and solar lower wholesale prices, reshape price curves, and cause negative pricing in markets.

✅ Natural gas price declines remain the largest driver of cheaper power

✅ Wind and solar shift seasonal and time-of-day price patterns

✅ Negative wholesale prices appear near high wind and solar output

 

One of the arguments that's consistently been raised against doing anything about climate change is that it will be expensive. On the more extreme end of the spectrum, there have been dire warnings about plunging standards of living due to skyrocketing electricity prices. The plunging cost of renewables like solar cheaper than gas has largely silenced these warnings, but a new report from the Department of Energy suggests that, even earlier, renewables were actually lowering the price of electricity in the United States.

 

Plunging prices
The report focuses on wholesale electricity prices in the US. Note that these are distinct from the prices consumers actually pay, which includes taxes, fees, payments to support the grid that delivers the electricity, and so on. It's entirely possible for wholesale electricity prices to drop even as consumers end up paying more, and market reforms determine how those changes are passed through. That said, large changes in the wholesale price should ultimately be passed on to consumers to one degree or another.

The Department of Energy analysis focuses on the decade between 2008 and 2017, and it includes an overall analysis of the US market, as well as large individual grids like PJM and ERCOT and, finally, local prices. The decade saw a couple of important trends: low natural gas prices that fostered a rapid expansion of gas-fired generators and the rapid expansion of renewable generation that occurred concurrently with a tremendous drop in price of wind and solar power.

Much of the electricity generated by renewables in this time period would be more expensive than that generated by wind and solar installed today. Not only have prices for the hardware dropped, but the hardware has improved in ways that provide higher capacity factors, meaning that they generate a greater percentage of the maximum capacity. (These changes include things like larger blades on wind turbines and tracking systems for solar panels.) At the same time, operating wind and solar is essentially free once they're installed, so they can always offer a lower price than competing fossil fuel plants.

With those caveats laid out, what does the analysis show? Almost all of the factors influencing the wholesale electricity price considered in this analysis are essentially neutral. Only three factors have pushed the prices higher: the retirement of some plants, the rising price of coal, and prices put on carbon, which only affect some of the regional grids.

In contrast, the drop in the price of natural gas has had a very large effect on the wholesale power price. Depending on the regional grid, it's driven a drop of anywhere from $7 to $53 per megawatt-hour. It's far and away the largest influence on prices over the past decade.

 

Regional variation and negative prices
But renewables have had an influence as well. That influence has ranged from roughly neutral to a cost reduction of $2.2 per MWh in California, largely driven by solar. While the impact of renewables was relatively minor, it is the second-largest influence after natural gas prices, and the data shows that wind and solar are reducing prices rather than increasing them.

The reports note that renewables are influencing wholesale prices in other ways, however. The growth of wind and solar caused the pattern of seasonal price changes to shift in areas of high wind and solar, as seen with solar reshaping prices in Northern Europe as daylight hours and wind patterns shift with the seasons. Similarly, renewables have a time-of-day effect for similar reasons, helping explain why the grid isn't 100% renewable today, which also influences the daily timing price changes, something that's not an issue with fossil fuel power.

A map showing the areas where wholesale electricity prices have gone negative, with darker colors indicating increased frequency.
Enlarge / A map showing the areas where wholesale electricity prices have gone negative, with darker colors indicating increased frequency.

US DOE
One striking feature of areas where renewable power is prevalent is that there are occasional cases in which an oversupply of renewable energy produces negative electricity prices in the wholesale market. (In the least-surprising statement in the report, it concludes that "negative prices in high-wind and high-solar regions occurred most frequently in hours with high wind and solar output.") In most areas, these negative prices are rare enough that they don't have a significant influence on the wholesale price.

That's not true everywhere, however. Areas on the Great Plains see fairly frequent negative prices, and they're growing in prevalence in areas like California, the Southwest, and the northern areas of New York and New England, while negative prices in France have been observed in similar conditions. In these areas, negative wholesale prices near solar plants have dropped the overall price by 3%. Near wind plants, that figure is 6%.

None of this is meant to indicate that there are no scenarios where expanded renewable energy could eventually cause wholesale prices to rise. At sufficient levels, the need for storage, backup plants, and grid management could potentially offset their low costs, a dynamic sometimes referred to as clean energy's dirty secret by analysts. But it's clear we have not yet reached that point. And if the prices of renewables continue to drop, then that point could potentially recede fast enough not to matter.

 

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Dubai Planning Large-Scale Solar Powered Hydrogen Production

Dubai Green Hydrogen advances electrolysis at the Mohammed Bin Rashid Al Maktoum Solar Park, with DEWA and Siemens enabling clean energy storage, re-electrification, and fuel-cell mobility for Expo 2020 Dubai and public transport.

 

Key Points

Dubai Green Hydrogen is a DEWA-Siemens project making solar hydrogen for storage, mobility, and reelectrification.

✅ Electrolysis at Mohammed Bin Rashid Al Maktoum Solar Park

✅ Partners: DEWA and Siemens; public-private demonstration plant

✅ Hydrogen for buses, re-electrification, and energy storage

 

Something you hear frequently if you are a clean tech aficionado is that excess solar and wind power can be used to split water into oxygen and hydrogen. The Dubai Supreme Council of Energy, the 2020 Dubai Higher Committee and the Dubai Electricity and Water Authority broke ground in early February on a solar power hydrogen electrolysis facility located in the Mohammed Bin Rashid Al Maktoum Solar Park, and related initiatives like the Solar Decathlon Middle East underscore Dubai's clean energy focus. Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai Supreme Council of Energy and chairman of the Expo 2020 Dubai Higher Committee, participated in the groundbreaking ceremony, according to a report by Khaleej Times.

Saeed Mohammed Al Tayer, CEO of DEWA, said at the groundbreaking ceremony the project is important to understanding the limits of green hydrogen technology and how it can contribute to the UAE’s vision of clean energy, and aligns with DEWA's latest renewable initiatives now progressing in the emirate. “This pioneering project is a role model for strategic partnerships between the public and private sectors. It will contribute to developing the green economy concept in the UAE and explore the potential of green hydrogen technology. The hydrogen produced at the facility will be stored and deployed for re-electrification, transportation and other uses.”

Siemens is providing much of the technology that will be used at the demonstration facility, while DEWA expands its China outreach to woo renewable energy firms that can contribute to the ecosystem. Joe Kaeser, president and CEO of Siemens, said the UAE was the perfect location for Siemens to test the technology, building on advances in offshore green hydrogen the company is pursuing. One of the primary uses of the hydrogen produced will be to power Dubai’s public transportation system.

“We are aware of the stress that is placed on vehicles in this region due to the high levels of heat; with hydrogen cells, you are not putting as much strain on the vehicle and that improves its longevity,” Kaeser said. “However, this is only the first step and we are eager to explore more ways in which we can adapt the technology to other sectors. The interest from various companies and partners has been immense and we are eager to work with all interested parties.”

“Dewa, Expo 2020 Dubai and Siemens are working together to help realize His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai’s, vision to identify new energy resources and provide sustainable power as part of a balanced approach that prioritizes the environment. Our aim is to make Dubai a model of energy efficiency and safety,” said Sheikh Ahmed.

Expo 2020 Dubai intends to use the hydrogen generated at the facility to transport visitors to the Expo 2020 Dubai and the Mohammed bin Rashid Al Maktoum Solar Park, reflecting regional momentum such as Saudi Arabia's clean energy plans over the next decade, in hydrogen fuel cell powered vehicles. Live data of the green hydrogen electrolysis will be displayed at Expo 2020 Dubai to help inform broader efforts like hydrogen hubs in the United States.

 

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Global CO2 emissions 'flatlined' in 2019, says IEA

2019 Global CO2 Emissions stayed flat, IEA reports, as renewable energy growth, wind and solar deployment, nuclear output, and coal-to-gas switching in advanced economies offset increases elsewhere, supporting climate goals and clean energy transitions.

 

Key Points

33 gigatonnes, unchanged YoY, as advanced economies cut power emissions via renewables, gas, and nuclear.

✅ IEA reports emissions flat at 33 Gt despite 2.9% GDP growth

✅ Advanced economies cut power-sector CO2 via wind, solar, gas

✅ Nuclear restarts and mild weather aided reductions

 

Despite widespread expectations of another increase, global energy-related CO2 emissions stopped growing in 2019, according to International Energy Agency (IEA) data released today. After two years of growth, global emissions were unchanged at 33 gigatonnes in 2019, a notable marker in the global energy transition narrative even as the world economy expanded by 2.9%.

This was primarily due to declining emissions from electricity generation in advanced economies, thanks to the expanding role of renewable sources (mainly wind and solar across many markets), fuel switching from coal to natural gas, and higher nuclear power generation, the Paris-based organisation says in the report.

"We now need to work hard to make sure that 2019 is remembered as a definitive peak in global emissions, not just another pause in growth," said Fatih Birol, the IEA's executive director. "We have the energy technologies to do this, and we have to make use of them all."

Higher nuclear power generation in advanced economies, particularly in Japan and South Korea, avoided over 50 Mt of CO2 emissions. Other factors included milder weather in several countries, and slower economic growth in some emerging markets. In China, emissions rose but were tempered by slower economic growth and higher output from low-carbon sources of electricity. Renewables continued to expand in China, and 2019 was also the first full year of operation for seven large-scale nuclear reactors in the country.

A significant decrease in emissions in advanced economies in 2019 offset continued growth elsewhere. The USA recorded the largest emissions decline on a country basis, with a fall of 140 million tonnes, or 2.9%. US emissions are now down by almost 1 gigatonne from their peak in 2000. Emissions in the European Union fell by 160 million tonnes, or 5%, in 2019 driven by reductions in the power sector as electricity producers move away from coal in the generation mix. Japan’s emissions fell by 45 million tonnes, or around 4%, the fastest pace of decline since 2009, as output from recently restarted nuclear reactors increased.

Emissions in the rest of the world grew by close to 400 million tonnes in 2019, with almost 80% of the increase coming from countries in Asia where coal-fired power generation continued to rise, and in Australia emissions rose 2% due to electricity and transport. Coal-fired power generation in advanced economies declined by nearly 15%, reflecting a sharp fall in coal-fired electricity across multiple markets, as a result of growth in renewables, coal-to-gas switching, a rise in nuclear power and weaker electricity demand.

The IEA will publish a World Energy Outlook Special Report in June that will map out how to cut global energy-related carbon emissions by one-third by 2030 and put the world on track for longer-term climate goals, a pathway that, in Canada, will require more electricity to hit net-zero. It will also hold an IEA Clean Energy Transitions Summit in Paris on 9 July, bringing together key government ministers, CEOs, investors and other major stakeholders.

Birol will discuss the results published today tomorrow at an IEA Speaker Series event at its headquarters with energy and climate ministers from Poland, which hosted COP24 in Katowice; Spain, which hosted COP25 in Madrid; and the UK, which will host COP26 in Glasgow this year, as greenhouse gas concentrations continue to break records worldwide.

 

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Hydro One reports $1.1B Q2 profit boosted by one-time gain due to court ruling

Hydro One Q2 Earnings surge on a one-time gain from a court ruling on a deferred tax asset, lifting profit, revenue, and adjusted EPS at Ontario's largest utility regulated by the Ontario Energy Board.

 

Key Points

Hydro One Q2 earnings jumped on an $867M court gain, with revenue at $1.67B and adjusted EPS improving to $0.39.

✅ One-time gain: $867M from tax appeal ruling.

✅ Revenue: $1.67B vs $1.41B last year.

✅ Adjusted EPS: $0.39 vs $0.26.

 

Hydro One Ltd., following the Peterborough Distribution sale transaction closing, reported a second-quarter profit of $1.1 billion, boosted by a one-time gain related to a court decision.

The power utility says it saw a one-time gain of $867 million in the quarter due to an Ontario court ruling on a deferred tax asset appeal that set aside an Ontario Energy Board decision earlier.

Hydro One says the profit amounted to $1.84 per share for the quarter ended June 30, amid investor concerns about uncertainties, up from $155 million or 26 cents per share a year earlier.

Shares also moved lower after the Ontario government announced leadership changes, as seen when Hydro One shares fell on the news in prior trading.

On an adjusted basis, it says it earned 39 cents per share for the quarter, despite earlier profit plunge headlines, up from an adjusted profit of 26 cents per share in the same quarter last year.

Revenue totalled $1.67 billion, up from $1.41 billion in the second quarter of 2019, while other Canadian utilities like Manitoba Hydro face heavy debt burdens.

Hydro One is Ontario’s largest electricity transmission and distribution provider, and its CEO compensation has drawn scrutiny in the province.

 

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As peak wildfire season nears, SDG&E completes work on microgrid in Ramona

SDG&E Ramona Microgrid delivers renewable energy and battery storage for wildfire mitigation, grid resilience, and PSPS support, powering the Cal Fire Air Attack Base with a 500 kW, 2,000 kWh lithium-ion system during outages.

 

Key Points

A renewable, battery-backed microgrid powering Ramona's Air Attack Base, boosting wildfire response and PSPS resilience.

✅ 500 kW, 2,000 kWh lithium-ion storage replaces diesel

✅ Keeps Cal Fire and USFS aircraft operations powered

✅ Supports PSPS continuity and rural water reliability

 

It figures to be another dry year — with the potential to spark wildfires in the region. But San Diego Gas & Electric just completed a renewable energy upgrade to a microgrid in Ramona that will help firefighters and reduce the effects of power shutoffs to backcountry residents.

The microgrid will provide backup power to the Ramona Air Attack Base, helping keep the lights on during outages, home to Cal Fire and the U.S. Forest Service's fleet of aircrafts that can quickly douse fires before they get out of hand.

"It gives us peace of mind to have backup power for a critical facility like the Ramona Air Attack Base, especially given the fact that fire season in California has become year-round," Cal Fire/San Diego County Fire Chief Tony Mecham said in a statement.

The air attack base serves as a hub for fixed-wing aircraft assigned to put out fires. Cal Fire staffs the base throughout the year with one two airtankers and one tactical aircraft. The base also houses the Forest Service's Bell 205 A++ helicopter and crew to protect the Cleveland National Forest. Aircraft for both CalFire and the Forest Service can also be mobilized to help fight fires throughout the state.

This summer, the Ramona microgrid won't have to rely on diesel generation. Instead, the facility next to the town's airport will be powered by a 500 kilowatt and 2,000 kilowatt-hour lithium-ion battery storage system that won't generate any greenhouse gas emissions.

"What's great about it, besides that it's a renewable resource, is that it's a permanent installation," said Jonathan Woldemariam, SDG&E's director of wildfire mitigation and vegetation management. "In other words, we don't have to roll a portable generator out there. It's something that can be leveraged right there because it's already installed and ready to go."

Microgrids have taken on a larger profile across the state because they can operate independently of the larger electric grid, where repairing California's grid is an ongoing challenge, thus allowing small areas or communities to keep the power flowing for hours at a time during emergencies.

That can be crucial in wildfire-prone areas affected by Public Safety Power Shutoffs, or PSPS, the practice in which investor-owned utilities in California de-energize electrical power lines in a defined area when conditions are dry and windy in order to reduce the risk of a power line falling and igniting a wildfire, while power grid upgrades move forward statewide.

Rural and backcountry communities are particularly hard hit when the power is pre-emptively cut off because many homes rely on water from wells powered by electricity for their homes, horses and livestock.

In addition to Ramona, SDG&E has established microgrids in three other areas in High Fire Threat Districts:

The microgrids in Butterfield Ranch and Shelter Valley run on diesel power but the utility plans to complete solar and battery storage systems for each locale by the end of next year, as other regions develop new microgrid rules to guide deployment.

SDG&E has a fifth microgrid in operation — in Borrego Springs, which in 2013 became the first utility-scale microgrid in the country. It provides grid resiliency to the roughly 2,700 residents of the desert town and serves as a model for integrated microgrid projects elsewhere in delivering local electricity. While the Borrego Springs microgrid is not located in a High Fire Threat District, "when and if any power is turned off, especially the power transmission feed that goes to Borrego, we can support the customers using the microgrid out there," Woldemariam said.

Microgrid costs can be higher than conventional energy systems, even as projected energy storage revenue grows over the next decade, and the costs of the SDG&E projects are passed on to ratepayers. As per California Public Utilities Commission rules, the financial details for each of microgrid are kept confidential for at least three years.

SDG&E's microgrids are part of the utility's larger plan to reduce wildfire risk that SDG&E files with the utilities commission. In its wildfire plan for 2020 through 2022, SDG&E expected to spend $1.89 billion on mitigation measures.

 

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