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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Canadian power crews head to Irma-hit Florida to help restore service

Canadian Power Crews Aid Florida after Hurricane Irma, supporting power restoration for Tampa Electric and Florida Power & Light. Hydro One and Nova Scotia Power teams provide mutual aid to speed outage repairs across communities.

 

Key Points

Mutual aid effort sending Canadian utility crews to restore power and repair outages in Florida after Hurricane Irma.

✅ Hydro One and Nova Scotia Power deploy line technicians

✅ Support for Tampa Electric and Florida Power & Light

✅ Goal: rapid power restoration and outage repairs statewide

 

Hundreds of Canadian power crews are heading to Florida to help restore power to millions of people affected by Hurricane Irma.

Two dozen Nova Scotia Power employees were en route Tampa on Tuesday morning. An additional 175 Hydro One employees from across Ontario are also heading south. Tuesday to assist after receiving a request for assistance from Tampa Electric.

Nearly 7½ million customers across five states were without power Tuesday morning as Irma — now a tropical storm — continued inland, while a power outage update from the Carolinas underscored the regional strain.

In an update On Tuesday, Florida Power & Light said its "army" of crews had already restored power to 40 per cent of the five million customers affected by Irma in the first 24 hours.

FPL said it expects to have power restored in nearly all of the eastern half of the state by the end of this coming weekend. Almost everyone should have power restored by the end of day on Sept. 22, except for areas still under water.Jason Cochrane took a flight from Halifax Stanfield International Airport along with 19 other NSP power line technicians, two supervisors and a restoration team lead, drawing on lessons from the Maritime Link first power project between Newfoundland and Nova Scotia. "It's different infrastructure than what we have to a certain extent, so there'll be a bit of a learning curve there as well," Cochrane said. "But we'll be integrated into their workforce, so we'll be assisting them to get everything put back together."

The NSP team will join 86 other Nova Scotians from their parent company, Emera, who are also heading to Tampa. Halifax-based Emera, whose regional projects include the Maritime Link, owns a subsidiary in Tampa.

"We're going to be doing anything that we can to help Tampa Electric get their customers back online," said NSP spokesperson Tiffany Chase. "We know there's been significant damage to their system as a result of that severe storm and so anything that our team can do to assist them, we want to do down in Tampa."

Crews have been told to expect to be on the ground in the U.S. for two weeks, but that could change as they get a better idea of what they're dealing with.

'It's neat to have an opportunity like this to go to another country and to help out.'- Jason Cochrane, power line technician

"It's neat to have an opportunity like this to go to another country and to help out and to get the power back on safely," said Cochrane.

Chase said she doesn't know how much the effort will cost but it will be covered by Tampa Electric. She also said Nova Scotia Power will pull its crews back if severe weather heads toward Atlantic Canada, as utilities nationwide work to adapt to climate change in their planning.

 

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How Ukraine Unplugged from Russia and Joined Europe's Power Grid with Unprecedented Speed

Ukraine-ENTSO-E Grid Synchronization links Ukraine and Moldova to the European grid via secure interconnection, matching frequency for stability, resilience, and energy security, enabling cross-border support, islanding recovery, and coordinated load balancing during wartime disruptions.

 

Key Points

Rapid alignment of Ukraine and Moldova into the European grid to enable secure interconnection and system stability.

✅ Matches 50 Hz frequency across interconnected systems

✅ Enables cross-border support and electricity trading

✅ Improves resilience, stability, and energy security

 

On February 24 Ukraine’s electric grid operator disconnected the country’s power system from the larger Russian-operated network to which it had always been linked. The long-planned disconnection was meant to be a 72-hour trial proving that Ukraine could operate on its own and to protect electricity supply before winter as contingencies were tested. The test was a requirement for eventually linking with the European grid, which Ukraine had been working toward since 2017. But four hours after the exercise started, Russia invaded.

Ukraine’s connection to Europe—which was not supposed to occur until 2023—became urgent, and engineers aimed to safely achieve it in just a matter of weeks. On March 16 they reached the key milestone of synchronizing the two systems. It was “a year’s work in two weeks,” according to a statement by Kadri Simson, the European Union commissioner for energy. That is unusual in this field. “For [power grid operators] to move this quickly and with such agility is unprecedented,” says Paul Deane, an energy policy researcher at the University College Cork in Ireland. “No power system has ever synchronized this quickly before.”

Ukraine initiated the process of joining Europe’s grid in 2005 and began working toward that goal in earnest in 2017, as did Moldova. It was part of an ongoing effort to align with Europe, as seen in the Baltic states’ disconnection from the Russian grid, and decrease reliance on Russia, which had repeatedly threatened Ukraine’s sovereignty. “Ukraine simply wanted to decouple from Russian dominance in every sense of the word, and the grid is part of that,” says Suriya Jayanti, an Eastern European policy expert and former U.S. diplomat who served as energy chief at the U.S. embassy in Kyiv from 2018 to 2020.

After the late February trial period, Ukrenergo, the Ukrainian grid operator, had intended to temporarily rejoin the system that powers Russia and Belarus. But the Russian invasion made that untenable. “That left Ukraine in isolation mode, which would be incredibly dangerous from a power supply perspective,” Jayanti says. “It means that there’s nowhere for Ukraine to import electricity from. It’s an orphan.” That was a particularly precarious situation given Russian attacks on key energy infrastructure such as the Zaporizhzhia nuclear power plant and ongoing strikes on Ukraine’s power grid that posed continuing risks. (According to Jayanti, Ukraine’s grid was ultimately able to run alone for as long as it did because power demand dropped by about a third as Ukrainians fled the country.)

Three days after the invasion, Ukrenergo sent a letter to the European Network of Transmission System Operators for Electricity (ENTSO-E) requesting authorization to connect to the European grid early. Moldelectrica, the Moldovan operator, made the same request the following day. While European operators wanted to support Ukraine, they had to protect their own grids, amid renewed focus on protecting the U.S. power grid from Russian hacking, so the emergency connection process had to be done carefully. “Utilities and system operators are notoriously risk-averse because the job is to keep the lights on, to keep everyone safe,” says Laura Mehigan, an energy researcher at University College Cork.

An electric grid is a network of power-generating sources and transmission infrastructure that produces electricity and carries it from places such as power plants, wind farms and solar arrays to houses, hospitals and public transit systems. “You can’t just experiment with a power system and hope that it works,” Deane says. Getting power where it is it needed when it is needed is an intricate process, and there is little room for error, as incidents involving Russian hackers targeting U.S. utilities have highlighted for operators worldwide.

Crucial to this mission is grid interconnection. Linked systems can share electricity across vast areas, often using HVDC technology, so that a surplus of energy generated in one location can meet demand in another. “More interconnection means we can move power around more quickly, more efficiently, more cost effectively and take advantage of low-carbon or zero-carbon power sources,” says James Glynn, a senior research scholar at the Center on Global Energy Policy at Columbia University. But connecting these massive networks with many moving parts is no small order.

One of the primary challenges of interconnecting grids is synchronizing them, which is what Ukrenergo, Moldelectrica and ENTSO-E accomplished last week. Synchronization is essential for sharing electricity. The task involves aligning the frequencies of every energy-generation facility in the connecting systems. Frequency is like the heartbeat of the electric grid. Across Europe, energy-generating turbines spin 50 times per second in near-perfect unison, and when disputes disrupt that balance, slow clocks across Europe can result, reminding operators of the stakes. For Ukraine and Moldova to join in, their systems had to be adjusted to match that rhythm. “We can’t stop the power system for an hour and then try to synchronize,” Deane says. “This has to be done while the system is operating.” It is like jumping onto a moving train or a spinning ride at the playground: the train or ride is not stopping, so you had better time the jump perfectly.

 

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Enel Starts Operations of 450 MW Wind Farm in U.S

High Lonesome Wind Farm powers Texas with 500 MW of renewable energy, backed by a 12-year PPA with Danone North America and a Proxy Revenue Swap, cutting CO2 emissions as Enel's largest project to date.

 

Key Points

A 500 MW Enel wind project in Texas, supplying renewable power via PPAs and hedged by a Proxy Revenue Swap.

✅ 450 MW online; expanding to 500 MW in early 2020

✅ 12-year PPA with Danone North America for 20.6 MW

✅ PRS hedge with Allianz and Nephila stabilizes revenues

 

Enel, through its US renewable subsidiary Enel Green Power North America, Inc. (“EGPNA”), has started operations of its 450 MW High Lonesome wind farm in Upton and Crockett Counties, in Texas, the largest operational wind project in the Group’s global renewable portfolio, alongside a recent 90 MW Spanish wind build in its European pipeline. Enel also signed a 12-year, renewable energy power purchase agreement (PPA) with food and beverage company Danone North America, a Public Benefit Corporation, for physical delivery of the renewable electricity associated with 20.6 MW, leading to an additional 50 MW expansion of High Lonesome that will increase the plant’s total capacity to 500 MW. The construction of the 50 MW expansion is currently underway and operations are due to start in the first quarter of 2020.

“The start of operations of Enel’s largest wind farm in the world marks a significant achievement for our company and reinforces our global commitment to accelerated renewable energy growth,” said Antonio Cammisecra, CEO of Enel Green Power, referencing the largest wind project constructed in North America as evidence of market momentum. “This milestone is matched with a new partnership with Danone North America to support their renewable goals, a reinforcement of our continued commitment to provide customers with tailored solutions to meet their sustainability goals.”

The agreement between Enel and Danone North America will provide enough electricity to produce the equivalent of almost 800 million cups of yogurt1 and over 80 million gallons2 of milk each year and support the food and beverage company’s commitment to securing 100% of its purchased electricity from renewable sources by 2030, in a market where North Carolina’s first wind farm is now fully operational and expanding access to clean power.

Mariano Lozano, president and CEO of Danone North America, added:“This is an exciting and significant step as we continue to advance our 2030 renewable electricity goals. As a public benefit corporation committed to balancing the needs of our business with those of society and the planet, we truly believe that this agreement makes sense from both a business and sustainability point of view. We’re delighted to be working with Enel Green Power to expand their High Lonesome wind farm and grow the renewable electricity infrastructure, such as New York’s biggest offshore wind projects, here in the US.”

In addition, as more US wind projects come online, such as TransAlta’s 119 MW project, the energy produced by a 295 MW portion of the project will be hedged under a Proxy Revenue Swap (PRS) with insurer Allianz Global Corporate & Specialty, Inc.'s Alternative Risk Transfer unit (Allianz), and Nephila Climate, a provider of weather and climate risk management products. The PRS is a financial derivative agreement designed to produce stable revenues for the project regardless of power price fluctuations and weather-driven intermittency, hedging the project from this kind of risk in addition to that associated with price and volume.

Under the PRS agreement, and as other projects begin operations, like Building Energy’s latest plant, High Lonesome will receive fixed payments based on the expected value of future energy production, with adjustments paid depending on how the realized proxy revenue of the project differs from the fixed payment. The PRS for High Lonesome, which is the largest by capacity for a single plant globally and the first agreement of its kind for Enel, was executed in collaboration with REsurety, Inc.

The investment in the construction of the 500 MW plant amounts to around 720 million US dollars. The wind farm is due to generate around 1.9 TWh annually, comparable to a 280 MW Alberta wind farm’s output, while avoiding the emission of more than 1.2 million tons of CO2 per year.

 

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Shell says electricity to meet 60 percent of China's energy use by 2060

China 2060 Carbon-Neutral Energy Transition projects tripled electricity, rapid electrification, wind and solar dominance, scalable hydrogen, CCUS, and higher carbon pricing to meet net-zero goals while decarbonizing heavy industry and transport.

 

Key Points

Shell's outlook for China to reach net zero by 2060 via electrification, renewables, hydrogen, CCUS, and carbon pricing.

✅ Power supply to 60% of energy; generation triples by 2060.

✅ Wind and solar reach 80% of electricity; coal declines sharply.

✅ Hydrogen scales to 17 EJ; CCUS and carbon pricing expand.

 

China may triple electricity generation to supply 60 percent of the country's total energy under Beijing's carbon-neutral goal by 2060, up from the current 23 per cent, according to Royal Dutch Shell.

Shell is one of the largest global investors in China's energy sector, with business covering gas production, petrochemicals and a retail fuel network. A leading supplier of liquefied natural gas, it has recently expanded into low-carbon business such as hydrogen power and electric vehicle charging.

In a rare assessment of the country's energy sector by an international oil major, Shell said China needed to take quick action this decade to stay on track to reach the carbon-neutrality goal.

China has mapped out plans to reach peak emissions by 2030, and aims to reduce coal power production over the coming years, but has not yet revealed any detailed carbon roadmap for 2060.

This includes investing in a reliable and renewable power system, including compressed air generation, and demonstrating technologies that transform heavy industry using hydrogen, biofuel and carbon capture and utilization.

"With early and systematic action, China can deliver better environmental and social outcomes for its citizens while being a force for good in the global fight against climate change," Mallika Ishwaran, chief economist of Shell International, told a webinar hosted by the company's China business.

Shell expects China's electricity generation to rise three-fold to more than 60 exajoules (EJ) in 2060 from 20 EJ in 2020, even amid power supply challenges reported recently.

Solar and wind power are expected to surpass coal as the largest sources of electricity by 2034 in China, reflecting projections that renewables will eclipse coal globally by mid-decade, versus the current 10 percent, rising to 80 percent by 2060, Shell said.

Hydrogen is expected to scale up to 17 EJ, or equivalent to 580 million tonnes of coal by 2060, up from almost negligible currently, adding over 85 percent of the hydrogen will be produced through electrolysis, supported by PEM hydrogen R&D across the sector, powered by renewable and nuclear electricity, Shell said.

Hydrogen will meet 16 percent of total energy use in 2060 with heavy industry and long-distance transport as top hydrogen users, the firm added.

The firm also expects China's carbon price to rise to 1,300 yuan (CDN$256.36) per tonne in 2060 from 300 yuan in 2030.

Nuclear, on a steady development track, and biomass will have niche but important roles for power generation in the years to come, Shell said.

Electricity generated from biomass, combined with carbon, capture, utilization and storage (CCUS), provide a source of negative emissions for the rest of the energy system from 2053, it added.

 

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Judge: Texas Power Plants Exempt from Providing Electricity in Emergencies

Texas Blackout Liability Ruling clarifies appellate court findings in Houston, citing deregulated energy markets, ERCOT immunity, wholesale generators, retail providers, and 2021 winter storm lawsuits over grid failures and wrongful deaths.

 

Key Points

Houston judges held wholesale generators owe no duty to retail customers, limiting liability for 2021 blackout lawsuits.

✅ Court cites deregulated market and lack of privity to consumers

✅ Ruling shields generators from 2021 winter storm civil suits

✅ Plaintiffs plan appeals; legislature may address liability

 

Nearly three years after the devastating Texas blackout of 2021, a panel of judges from the First Court of Appeals in Houston has determined that major power companies cannot be held accountable for their failure to deliver electricity during the power grid crisis that unfolded, citing Texas' deregulated energy market as the reason.

This ruling appears likely to shield these companies from lawsuits that were filed against them in the aftermath of the blackout, leaving the families of those affected uncertain about where to seek justice.

In February 2021, a severe cold front swept over Texas, bringing extended periods of ice and snow. The extreme weather conditions increased energy demand while simultaneously reducing supply by causing power generators and the state's natural gas supply chain to freeze. This led to a blackout that left millions of Texans without power and water for nearly a week.

The state officially reported that almost 250 people lost their lives during the winter storm and subsequent blackout, although some analysts argue that this is a significant undercount and warn of blackout risks across the U.S. during severe heat as well.

In the wake of the storm, Texans affected by the energy system's failure began filing lawsuits, and lawmakers proposed a market bailout as political debate intensified. Some of these legal actions were directed against power generators whose plants either ceased to function during the storm or ran out of fuel for electricity generation.

After several years of legal proceedings, a three-judge panel was convened to evaluate the merits of these lawsuits.

This week, Chief Justice Terry Adams issued a unanimous opinion on behalf of the panel, stating, "Texas does not currently recognize a legal duty owed by wholesale power generators to retail customers to provide continuous electricity to the electric grid, and ultimately to the retail customers."

The opinion further clarified that major power generators "are now statutorily precluded by the legislature from having any direct relationship with retail customers of electricity."

This separation of power generation from transmission and retail electric sales in many parts of Texas resulted from energy market deregulation in the early 2000s, with the goal of reducing energy costs, and prompted electricity market reforms aimed at avoiding future blackouts.

Under the previous system, power companies were "vertically integrated," controlling generators, transmission lines, and selling the energy they produced directly to regional customers. However, in deregulated areas of Texas, competition was introduced, creating competing energy-generating companies and retail electric providers that purchase power wholesale and then sell it to residential consumers; meanwhile, electric cooperatives in other parts of the state remained member-owned providers.

Tré Fischer, a partner at the Jackson Walker law firm representing the power companies, explained, "One consequence of that was, because of the unbundling and the separation, you also don't have the same duties and obligations [to consumers]. The structure just doesn't allow for that direct relationship and correspondingly a direct obligation to continually supply the electricity even if there's a natural disaster or catastrophic event."

In the opinion, Justice Adams noted that when designing the Texas energy market, amid renewed interest in ways to improve electricity reliability across the grid, state lawmakers "could have codified the retail customers' asserted duty of continuous electricity on the part of wholesale power generators into law."

The recent ruling applies to five representative cases chosen by the panel out of hundreds filed after the blackout. Due to this decision, it is improbable that any of the lawsuits against power companies will succeed, according to the court's interpretation.

However, plaintiffs' attorneys have indicated their intention to appeal. They may request a review of the panel's opinion by the entire First Court of Appeals or appeal directly to the state supreme court.

The state Supreme Court had previously ruled that the Electric Reliability Council of Texas (ERCOT), the state's power grid operator, enjoys sovereign immunity and cannot be sued over the blackout.

This latest opinion raises the question of who, if anyone, can be held responsible for deaths and losses resulting from the blackout, a question left unaddressed by the court. Fischer commented, "If anything [the judges] were saying that is a question for the Texas legislature."

 

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In a record year for clean energy purchases, Southeast cities stand out

Municipal Renewable Energy Procurement surged as cities contracted 3.7 GW of solar and wind, leveraging green tariffs, community solar, and utility partnerships across the Southeast, led by Houston, RMI, and WRI data.

 

Key Points

The process by which cities contract solar and wind via utilities or green tariffs to meet climate goals.

✅ 3.7 GW procured in 2020, nearly 25% year-over-year growth

✅ Houston runs city ops on 500 MW solar, a record purchase

✅ Southeast cities use green tariffs and community solar

 

Cities around the country bought more renewable energy last year than ever before, reflecting how renewables may soon provide one-fourth of U.S. electricity across the grid, with some of the most remarkable projects in the Southeast, according to new data unveiled Thursday.

Even amid the pandemic, about eight dozen municipalities contracted to buy nearly 3.7 gigawatts of mostly solar and wind energy — enough to power more than 800,000 homes. The figure is almost a quarter higher than the year before.

Half of the cites listed as “most noteworthy” in Thursday’s release —  from research groups Rocky Mountain Institute and World Resources Institute — are in the region that stretches from Texas to Washington, D.C. 

Houston stands out for the sheer enormity of its purchase: In July, it began powering city operations entirely from nearly 500 megawatts of solar power — the largest municipal purchase of renewable energy ever in the United States, as renewable electricity surpassed coal nationwide.

The groups also feature smaller deals in North Carolina and Tennessee, achieved through a utility partnership called a green tariff.

“We wanted to recognize that Nashville and Charlotte were really blazing a new trail,” said Stephen Abbott, principal at the Rocky Mountain Institute.

And the nation’s capital shows how renewable energy can be a source of revenue: It’s leasing out its public transit station rooftops for 10 megawatts of community solar.

All of these strategies will be necessary for scores of U.S. cities to meet their ambitious climate goals, researchers believe. An interactive clean energy targets tracker shows all 95 clean energy procurements from the year in detail.


Tracker 
Even before former President Donald Trump promised to remove the United States from the Paris Climate Accord, a lack of federal action on climate left a void that some cities and counties were beginning to fill, as renewables hit a record 28% in a recent month. In 2015, the first year tracked by researchers at the Rocky Mountain Institute and the World Resources Institute, municipalities contracted to buy more than 1 gigawatt of wind, solar and other forms of clean energy. 

But when Trump officially set in motion the withdrawal from the climate agreement, the ranks of municipalities dedicated to 100% clean energy multiplied. Today there are nearly 200 of them. The growth in activity last year reflects, in part, that surge of new pledges.

“It takes a while to get city staff up to speed and understand the options, and create the roadmap and then start executing,” Abbott said. “There is a bit of a lag, but we’re starting to see the impact.”

Even in Houston — one of the earliest to begin procuring renewable energy — there has been a steep learning curve as market forces change and prices drop, including cheaper solar batteries shaping procurement strategies, said Lara Cottingham, Houston’s chief of staff and chief sustainability officer.

No matter how well resourced and educated their staff, cities have to clear a thicket of structural, political and economic challenges to procure renewable energy. Most don’t own their own sources of power. Nearly all face budget constraints. Few have enough land or government rooftops to meet their goals within city limits.

“Cities face a situation where it’s a square peg in a round hole,” Cottingham said.

The hurdles are especially steep in much of the Southeast, where only publicly regulated utilities can sell electricity to retail customers, even large ones such as major cities. That’s where a green tariff regime comes in: Cities can purchase clean energy from a third party, such as a solar company, using the utility as a go-between.

Early last year, Charlotte became the largest city to use such a program, partnering with Duke Energy and two North Carolina solar developers to build a solar farm 50 miles north in Iredell County. At first, the city will pay a premium for the energy, but in the latter half of the 20-year contract, as gas prices rise, it will save money compared to business as usual.

“Over the course of 20 years, it’s projected we would save about $2 million,” Katie Riddle, sustainability analyst with Charlotte, told the Energy News Network last year.

The growing size of projects, innovative partnerships like green tariff programs, and the improving economics all give Abbott hope that renewable energy investments from cities will only grow — even with the Trump presidency over and the country back in the Paris agreement.

And when cities meet their goals for procuring renewable energy for their own operations, they must then turn to an even bigger task: reducing the carbon footprint of every person in their jurisdiction with broader decarbonization strategies and community engagement.

“The city needs to do its part for sure,” said Houston’s Cottingham. “Then we have this challenge of how do we get everyone else to.”

 

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