Utilities prepare for Tropical Storm Hanna

FERC Transmission Rule accelerates grid modernization and interregional high-voltage lines, enabling renewable energy integration, load balancing, and reliability to advance net-zero goals while strengthening resilience, capacity expansion, and decarbonization across U.S. regional transmission organizations.

Key Points

A federal policy mandating interregional grid planning and cost sharing to expand high-voltage lines for renewables.

✅ Expands interregional high-voltage transmission capacity

✅ Improves reliability, resilience, and load balancing

✅ Aligns cost allocation and long-term planning for renewables

On May 13th, 2024, the US took a monumental step towards its clean energy goals. The Federal Energy Regulatory Commission (FERC) approved a long-awaited rule designed to significantly expand the transmission of renewable energy across the nation's power grid, a US grid overhaul that many advocates say was overdue. This decision aligns with President Biden's ambitious plan to achieve net-zero carbon emissions by 2050, with renewable energy playing a central role.

The new rule tackles a critical bottleneck hindering the widespread adoption of renewables – transmission infrastructure. Unlike traditional power plants like coal or natural gas that run constantly, solar and wind power generation fluctuates with weather conditions. This variability poses a challenge for the existing grid, which is not designed to efficiently handle large-scale integration of these intermittent sources, helping explain why the grid isn't 100% renewable today.

The FERC rule aims to address this by promoting the construction of new, high-voltage transmission lines, particularly those connecting different regions, where grid limitations in the Pacific Northwest have highlighted the need for better interregional transfers. This improved connectivity would allow for a more strategic distribution of renewable energy. Imagine solar energy harnessed in the sun-drenched Southwest being transmitted eastward to meet peak demand during hot summer days on the Atlantic Coast.

The benefits of this expanded transmission network are multifaceted. First, it unlocks the full potential of renewable resources by allowing for their efficient utilization across the country, a trend consistent with wind and solar surpassing coal in U.S. generation. Abundant wind power in the Midwest could be utilized on the West Coast, while surplus solar energy from the South could supplement demand in the Northeast.

Second, a more robust grid with a higher capacity for renewables reduces reliance on fossil fuel-based power plants and complements other ways to meet decarbonization goals across sectors. This translates to cleaner air and a significant reduction in greenhouse gas emissions, contributing to the fight against climate change.

Third, a modernized grid with improved long-distance transmission bolsters the nation's energy security. Extreme weather events, a growing concern due to climate change, can disrupt energy production in specific regions. This interconnected grid would provide a buffer, ensuring a more reliable and resilient power supply and helping put regions on the road to 100% renewables even during adverse weather conditions.

The FERC's decision is a win for environmental groups and the renewable energy industry. They see it as a critical step towards a cleaner energy future and a significant driver of job creation in the construction and maintenance of new transmission lines. However, concerns have been raised by some stakeholders, particularly investor-owned utilities. They worry about the potential cost burden associated with building these expansive new lines, and recent reports of stalled grid spending underscore those concerns and the need for efficient cost allocation mechanisms. Striking a balance between efficiency, affordability, and environmental responsibility will be crucial for the successful implementation of this policy.

Related News

• Electricity Forum News

• Renewable Energy News

Great British Energy could cut UK electricity costs via public ownership, investing in clean energy like wind, solar, tidal, and nuclear, curbing windfall profits, stabilizing bills, and reinvesting returns through a state-backed generator.

Key Points

A proposed state-backed UK generator investing in clean power to cut costs and return gains to taxpayers.

✅ Publicly owned investment in wind, solar, tidal, and nuclear

✅ Cuts electricity bills by reducing generators' windfall profits

✅ Funded via bonds or asset buyouts; non-profit operations

A publicly owned electricity generation firm could save Britons nearly £21bn a year, according to new analysis that bolsters Labour’s case to launch a national energy company if the party gains power.

Thinktank Common Wealth has calculated that the cost of generating electricity to power homes and businesses could be reduced by £20.8bn or £252 per household a year under state ownership, according to a report seen by the Guardian.

The Labour leader, Keir Starmer, has committed to creating “a publicly owned national champion in clean energy” named Great British Energy.

Starmer is yet to lay out the exact structure of the mooted company, although he has said it would not involve nationalising existing assets, or become involved in the transmission grid or retail supply of energy.

Starmer instead hopes to create a state-backed entity that would invest in clean energy – wind, solar, tidal, nuclear, large-scale storage and other emerging technologies – creating jobs and ensuring windfalls from the growth in low carbon power feed back to the government.

The Common Wealth report, which analysed scenarios for reforming the electricity market, said that a huge saving on electricity costs could be made by buying out assets such as wind, solar and biomass generators on older contracts and running them on a non-profit basis. Funding the measure could require a government bond issuance, or some form of compulsory purchase process.

Last year the government attempted to get companies operating low carbon generators, including nuclear power plants, on older contracts to switch to contracts for difference (CfD), allowing any outsized profits to flow back to taxpayers. However, the government later decided to tax eligible firms through the electricity generator levy instead.

The Common Wealth study concluded that a publicly owned low carbon energy generator would best deliver on Britain’s climate and economic goals, would eliminate windfall profits made by generators and would cut household bills significantly.

MPs and campaigners have argued that Britain’s energy companies should be nationalised since the energy crisis, even as coal-free records have multiplied and renewables still need more support, which has resulted in North Sea oil and gas producers and electricity generators making windfall profits, and a string of retail suppliers collapsing, costing taxpayers billions. Detractors of nationalisation in energy argue it can stifle innovation and expose taxpayers to huge financial risks.

Common Wealth pointed out that more than 40% of the UK’s offshore wind generation capacity was publicly owned by overseas national entities, meaning the benefits of high electricity prices linked to the war in Ukraine had flowed back to other governments.

The study found the publicly owned generator model would create more savings than other options, including a drive for voluntary CfDs; splitting the generation market between low carbon and fossil fuel sources at a time when wind and solar have outproduced nuclear, and a “single buyer model” with nationalised retail suppliers.

Related News

• Electricity Forum News

• Power Generation News

California Utility Spending Bill scrutinizes how ratepayer funds are used by utilities, targeting lobbying, advertising, wildfire prevention cost pass-throughs, and CPUC oversight to curb high electricity bills and increase accountability and transparency statewide.

Key Points

Legislation restricting utilities from using ratepayer money for lobbying and ads, with stronger CPUC oversight.

✅ Bans ratepayer-funded lobbying and political advertising

✅ Expands prohibited utility communications and influence spending

✅ Aims to curb bills, boost transparency, and CPUC accountability

California's legislators are about to vote on a bill that would impose stricter regulations on how utility companies spend the money they collect from ratepayers. This legislation directly responds to the growing discontent among Californians who are already grappling with high electricity bills, as Californians ask why electricity prices are soaring amid wildfire prevention efforts.

Consumer rights groups have been vehemently critical of how utilities have been allocating customer funds, amid growing calls for regulatory action from state officials. They allege that a substantial portion of this money is being funnelled into lobbying efforts and advertising campaigns that yield no direct benefits for the customers themselves.

The proposed bill would significantly broaden the definition of what constitutes prohibited advertising and political influence activities on the part of utility companies, separate from income-based fixed electricity charges proposals that affect rate design. This would effectively restrict the ways in which utilities can utilize customer funds for such purposes.

While consumer advocacy groups have favored the legislation, it has drawn opposition from utility companies and some labor unions, as lawmakers weigh overturning income-based utility charges in parallel debates. Opponents contend that it would hinder utilities' ability to communicate effectively with their customers and advocate for their interests. Additionally, they express concerns that the bill could result in job losses within the utility sector.

The vote on the bill is expected to take place on Monday. The outcome of the vote is uncertain, but it is sure to be a closely watched development for Californians struggling with the burden of high electricity bills, with many wondering about major changes to their electric bills in the near term.

California's Electricity Rates: A Burden for Residents

A recent report by the California Public Utilities Commission (CPUC) revealed that the average Californian household spends a significantly higher amount on electricity compared to the national average. This disparity in electricity rates can be attributed to a number of factors, including the financial costs associated with wildfire prevention measures, investments in renewable energy infrastructure, and maintenance of aging electrical grids, even as the state considers revamping electricity rates to clean the grid.

Examples of Utility Company Spending that Raise Concerns

Consumer rights groups have specifically highlighted instances where utility companies have used customer money to fund lavish executive compensation packages, sponsor professional sports teams, and finance political campaigns. They argue that these expenditures do not provide any tangible benefits to ratepayers and should not be funded through customer bills.

The Need for Accountability and Prioritization

Proponents of the bill believe that the legislation is necessary to ensure that utility companies are held accountable for how they spend customer funds. They believe that the stricter regulations would compel utilities to prioritize investments that directly improve the quality and reliability of electricity services for Californians, alongside discussions of income-based flat-fee utility bills that could reshape rate structures.

The impending vote on the bill underscores the ongoing tension between the need for reliable electricity services and the desire to keep utility rates affordable for Californians. The outcome of the vote is likely to have a significant impact on how utility companies operate in the state and how much Californians pay for their electricity.

Related News

• Electricity Forum News

• Energy Policy News

Enegix Base One Green Hydrogen Plant will produce renewable hydrogen via electrolysis in Ceara, Brazil, leveraging 3.4 GW baseload renewables, offshore wind, and hydro to scale clean energy, storage, and export logistics.

Key Points

A $5.4bn Ceara, Brazil project to produce 600m kg of green hydrogen annually using 3.4 GW of baseload renewables.

✅ 3.4 GW baseload from hydro and offshore wind pipelines

✅ Targets 600m kg green hydrogen per year via electrolysis

✅ Focus on storage, transport, and export supply chains

In March, Enegix Energy announced some of the most ambitious hydrogen plans the world has ever seen. The company signed a memorandum of understanding (MOU) with the government of the Brazilian state of Ceará to build the world’s largest green hydrogen plant in the state on the country’s north-eastern coast, and the figures are staggering.

The Base One facility will produce more than 600 million kilograms of green hydrogen annually from 3.4GW of baseload renewable energy, and receive $5.4bn in investment to get the project off the ground and producing within four years.

Green hydrogen, hydrogen produced by electrolysis that is powered by renewables, has significant potential as a clean energy source. Already seeing increased usage in the transport sector, the power source boasts the energy efficiency and the environmental viability to be a cornerstone of the world’s energy mix.

Yet practical challenges have often derailed large-scale green hydrogen projects, from the inherent obstacle of requiring separate renewable power facilities to the logistical and technological challenges of storing and transporting hydrogen. Could vast investment, clever planning, and supportive governments and programs like the DOE’s hydrogen hubs initiative help Enegix to deliver on green hydrogen’s oft-touted potential?

Brazilian billions
The Base One project is exceptional not only for its huge scale, but the timing of its construction, with demand for hydrogen set to increase dramatically over the next few decades. Figures from Wood Mackenzie suggest that hydrogen could account for 1.4 billion tonnes of energy demand by 2050, one-tenth of the world’s supply, with green hydrogen set to be the majority of this figure.

Yet considering that, prior to the announcement of the Enegix project, global green hydrogen capacity was just 94MW, advances in offshore green hydrogen and the development of a project of this size and scope could scale up the role of green hydrogen by orders of magnitude.

“We really need to [advance clean energy] without any emissions on a completely clean, carbon neutral and net-zero framework, and so we needed access to a large amount of green energy projects,” explains Wesley Cooke, founder and CEO of Enegix, a goal aligned with analyses that zero-emissions electricity by 2035 is possible, discussing the motivation behind the vast project.

With these ambitious goals in mind, the company needed to find a region with a particular combination of political will and environmental traits to enable such a project to take off.

“When we looked at all of these key things: pipeline for renewables, access to water, cost of renewables, and appetite for renewables, Brazil really stood out to us,” Cooke continues. “The state of Ceará, that we’ve got an MOU with the government in at the moment, ticks all of these boxes.”

Ceará’s own clean energy plans align with Enegix’s, at least in terms of their ambition and desire for short-term development. Last October, the state announced that it plans to add 5GW of new offshore wind capacity in the next five years. With BI Energia alone providing $2.5bn in investment for its 1.2GW Camocim wind facility, there is significant financial muscle behind these lofty ambitions.

“One thing I should add is that Brazil is very blessed when it comes to baseload renewables,” says Cooke. “They have an incredibly high percentage of their country-wide energy that comes from renewable sources and a lot of this is in part due to the vast hydro schemes that they have for hydro dams. Not a lot of countries have that, and specifically when you’re trying to produce hydrogen, having access to vast amounts of renewables [is vital].”

Changing perceptions and tackling challenges
This combination of vast investment and integration with the existing renewable power infrastructure of Ceará could have cultural impacts too. The combination of state support for and private investment in clean energy offsets many of the narratives emerging from Brazil concerning its energy policies and environmental protections, even as debates over clean energy's trade-offs persist in Brazil and beyond, from the infamous Brumadinho disaster to widespread allegations of illegal deforestation and gold mining.

“I can’t speak for the whole of Brazil, but if we look at Ceará specifically, and even from what we’ve seen from a federal government standpoint, they have been talking about a hydrogen roadmap for Brazil for quite some time now,” says Cooke, highlighting the state’s long-standing support for green hydrogen. “I think we came in at the perfect time with a very solid plan for what we wanted to do, [and] we’ve had nothing but great cooperation, and even further than just cooperation, excitement around the MOU.”

This narrative shift could help overcome one of the key challenges facing many hydrogen projects, the idea that its practical difficulties render it fundamentally unsuitable for baseload power generation. By establishing a large-scale green hydrogen facility in a country that has recently struggled to present itself as one that is invested in renewables, the Base One facility could be the ultimate proof that such clean hydrogen projects are viable.

Nevertheless, practical challenges remain, as is the case with any energy project of this scale. Cooke mentions a number of solutions to two of the obstacles facing hydrogen production around the world: renewable energy storage and transportation of the material.

“We were looking at compressed hydrogen via specialised tankers [and] we were looking at liquefied hydrogen, [as] you have to get liquefied hydrogen very cool to around -253°, and you can use 30% to 40% of your total energy that you started with just to get it down to that temperature,” Cooke explains.

“The other aspect is that if you’re transporting this internationally, you really have to think about the supply chain. If you land in a country like Indonesia, that’s wonderful, but how do you get it from Indonesia to the customers that need it? What is the supply chain? What does that look like? Does it exist today?”

The future of green hydrogen
These practical challenges present something of a chicken and egg problem for the future of green hydrogen: considerable up-front investment is required for functions such as storage and transport, but the difficulties of these functions can scare off investors and make such investments uncommon.

Yet with the world’s environmental situation increasingly dire, more dramatic, and indeed risky, moves are needed to alter its energy mix, and Enegix is one company taking responsibility and accepting these risks.

“We need to have the renewables to match the dirty fuel types,” Cooke says. “This [investment] will really come from the decisions that are being made right now by large-scale companies, multi-billion-euro-per-year revenue companies, committing to building out large scale factories in Europe and Asia, to support PEM [hydrolysis].”

This idea of large-scale green hydrogen is also highly ambitious, considering the current state of the energy source. The International Renewable Energy Agency reports that around 95% of hydrogen comes from fossil fuels, so hydrogen has a long ways to go to clean up its own carbon footprint before going on to displace fossil fuel-driven industries.

Yet this displacement is exactly what Enegix is targeting. Cooke notes that the ultimate goal of Enegix is not simply to increase hydrogen production for use in a single industry, such as clean vehicles. Instead, the idea is to develop green hydrogen infrastructure to the point where it can replace coal and oil as a source of baseload power, leapfrogging other renewables to form the bedrock of the world’s future energy mix.

“The problem with [renewable] baseload is that they’re intermittent; the wind’s not always blowing and the sun’s not always shining and batteries are still very expensive, although that is changing. When you put those projects together and look at the levelised cost of energy, this creates a chasm, really, for baseload.

“And for us, this is really where we believe that hydrogen needs to be thought of in more detail and this is what we’re really evangelising about at the moment.”

A more hydrogen-reliant energy mix could also bring social benefits, with Cooke suggesting that the same traits that make hydrogen unwieldy in countries with established energy infrastructures could make hydrogen more practically viable in other parts of the world.

“When you look at emerging markets and developing markets at the moment, the power infrastructure in some cases can be quite messy,” Cooke says. “You’ve got the potential for either paying for the power or extending your transmission grid, but rarely being able to do both of those.

“I think being able to do that last mile piece, utilising liquid organic hydrogen carrier as an energy vector that’s very cost-effective, very scalable, non-toxic, and non-flammable; [you can] get that power where you need it.

“We believe hydrogen has the potential to be very cost-effective at scale, supporting a vision of cheap, abundant electricity over time, but also very modular and usable in many different use cases.”

Related News

• Electricity Forum News

• Renewable Energy News

TransLink Electric Bus Pilot launches zero-emission service in Metro Vancouver, cutting greenhouse gas emissions with fast-charging stations on Route 100, supporting renewable energy goals alongside trolley buses, CNG, and hybrid fleets.

Key Points

TransLink's Metro Vancouver program deploying charging, zero-emission buses on Route 100 to cut emissions and fuel costs.

✅ Cuts ~100 tonnes GHG and saves $40k per bus annually

✅ Five-minute on-route charging at terminals on Route 100

✅ Pilot data to guide zero-emission fleet transition by 2050

TransLink's first battery-electric buses are taking to the roads in Metro Vancouver as part of a pilot project to reduce emissions, joining other initiatives like electric school buses in B.C. that aim to cut pollution in transportation.

The first four zero-emission buses picked up commuters in Vancouver, Burnaby and  New Westminster on Wednesday. Six more are expected to be brought in, and similar launches like Edmonton's first electric bus are underway across Canada.

"With so many people taking transit in Vancouver today, electric buses will make a real difference," said Merran Smith, executive director of Clean Energy Canada, a think tank at Simon Fraser University, in a release.

According to TransLink, each bus is expected to reduce 100 tonnes of greenhouse gas emissions and save $40,000 in fuel costs per year compared to a conventional diesel bus.

"Buses already help tackle climate change by getting people out of cars, and Vancouver is ahead of the game with its electric trolleys," Smith said.

She added there is still more work to be done to get every bus off diesel, as seen with the TTC's battery-electric buses rollout in Toronto.

The buses will run along the No. 100 route connecting Vancouver and New Westminster. They recharge — it takes about five minutes — at new charging stations installed at both ends of the route while passengers load and unload or while the driver has a short break. 

Right now, more than half of TransLink's fleet currently operates with clean technology, offering insights alongside Toronto's large battery-electric fleet for other cities. 

In addition to the four new battery-electric buses, the fleet also includes hundreds of zero-emission electric trolley buses, compressed natural gas buses and hybrid diesel-electric buses, while cities like Montreal's first STM electric buses continue to expand adoption.

"Our iconic trolley buses have been running on electricity since 1948 and we're proud to integrate the first battery-electric buses to our fleet," said TransLink CEO Kevin Desmond in a press release.

TransLink has made it a goal to operate its fleet with 100 per cent renewable energy in all operations by 2050. Desmond says, the new buses are one step closer to meeting that goal.

The new battery-electric buses are part of a two-and-a-half year pilot project that looks at the performance, maintenance, and customer experience of making the switch to electric, complementing BC Hydro's vehicle-to-grid pilot initiative underway in the province.

Related News

• Electricity Forum News

• EV Infrastructure News

Quebec Hydropower Export Retaliation examines using electricity exports to counter U.S. tariffs amid Canada-U.S. trade tensions, weighing clean energy supply, grid reliability, energy security, legal risks, and long-term market impacts.

Key Points

Using Quebec electricity exports as leverage against U.S. tariffs, and its economic, legal, and diplomatic consequences.

✅ Revenue loss for Quebec and higher costs for U.S. consumers

✅ Risk of legal disputes under trade and energy agreements

✅ Long-term erosion of market share and grid cooperation

As trade tensions between Canada and the United States continue to escalate, with electricity exports at risk according to recent reporting, discussions have intensified around potential Canadian responses to the imposition of U.S. tariffs. One of the proposals gaining attention is the idea of reducing or even halting the export of energy from Quebec to the U.S. This measure has been suggested by some as a potential countermeasure to retaliate against the tariffs. However, experts and industry leaders are urging caution, emphasizing that the consequences of such a decision could have significant economic and diplomatic repercussions for both Canada and the United States.

Quebec plays a critical role in energy trade, particularly in supplying hydroelectric power to the United States, especially to the northeastern states, including New York where tariffs may spike energy prices according to analysts, strengthening the case for stable cross-border flows. This energy trade is deeply embedded in the economic fabric of both regions. For Quebec, the export of hydroelectric power represents a crucial source of revenue, while for the U.S., it provides access to a steady and reliable supply of clean, renewable energy. This mutually beneficial relationship has been a cornerstone of trade between the two countries, promoting economic stability and environmental sustainability.

In the wake of recent U.S. tariffs on Canadian goods, some policymakers have considered using energy exports as leverage, echoing threats to cut U.S. electricity exports in earlier disputes, to retaliate against what is viewed as an unfair trade practice. The idea is to reduce or stop the flow of electricity to the U.S. as a way to strike back at the tariffs and potentially force a change in U.S. policy. On the surface, this approach may appear to offer a viable means of exerting pressure. However, experts warn that such a move would be fraught with significant risks, both economically and diplomatically.

First and foremost, Quebec's economy is heavily reliant on revenue from hydroelectric exports to the U.S. Any reduction in these energy sales could have serious consequences for the province's economic stability, potentially resulting in job losses and a decrease in investment. The hydroelectric power sector is a major contributor to Quebec's GDP, and recent events, including a tariff threat delaying a green energy bill in Quebec, illustrate how trade tensions can ripple through the policy landscape, while disrupting this source of income could harm the provincial economy.

Additionally, experts caution that reducing energy exports could have long-term ramifications on the energy relationship between Quebec and the northeastern U.S. These two regions have developed a strong and interconnected energy network over the years, and abruptly cutting off the flow of electricity could damage this vital partnership. Legal challenges could arise under existing trade agreements, and even as tariff threats boost support for Canadian energy projects among some stakeholders, the situation would grow more complex. Such a move could also undermine trust between the two parties, making future negotiations on energy and other trade issues more difficult.

Another potential consequence of halting energy exports is that U.S. states may seek alternative sources of energy, diminishing Quebec's market share in the long run. As the U.S. has a growing demand for clean energy, especially as it looks to transition away from fossil fuels, and looks to Canada for green power in several regions, cutting off Quebec’s electricity could prompt U.S. states to invest in other forms of energy, including renewables or even nuclear power. This could have a lasting effect on Quebec's position in the U.S. energy market, making it harder for the province to regain its footing.

Moreover, reducing or ceasing energy exports could further exacerbate trade tensions, leading to even greater economic instability. The U.S. could retaliate by imposing additional tariffs on Canadian goods or taking other measures that would negatively impact Canada's economy. This could create a cycle of escalating trade barriers that would hurt both countries and undermine the broader North American trade relationship.

While the concept of using energy exports as a retaliatory tool may seem appealing to some, the experts' advice is clear: the potential economic and diplomatic costs of such a strategy outweigh the short-term benefits. Quebec’s role as an energy supplier to the U.S. is crucial to its own economy, and maintaining a stable, reliable energy trade relationship is essential for both parties. Rather than escalating tensions further, it may be more prudent for Canada and the U.S. to seek diplomatic solutions that preserve trade relations and minimize harm to their economies.

While the idea of using Quebec’s energy exports as leverage in response to U.S. tariffs may appear attractive on the surface, and despite polls showing support for tariffs on energy and minerals among Canadians, it carries significant risks. Experts emphasize the importance of maintaining a stable energy export strategy to protect Quebec’s economy and preserve positive diplomatic relations with the U.S. Both countries have much to lose from further escalating trade tensions, and a more measured approach is likely to yield better outcomes in the long run.

Related News

• Electricity Forum News

• Energy Policy News