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ESCC COVID-19 Resource Guide outlines control center continuity, sequestration, social distancing, remote operations, testing priorities, mutual assistance, supply chain risk, and PPE protocols to sustain grid reliability and plant operations during the COVID-19 pandemic.

Key Points

An industry guide to COVID-19 mitigation for the power sector covering control centers, testing, PPE, and mutual aid.

✅ Control center continuity: segregation, remote ops, reserve shifts

✅ Sequestration triggers, testing priorities, and PPE protocols

✅ Mutual assistance, supply chain risk, and workforce planning

The latest version of the Electricity Subsector Coordinating Council’s (ESCC’s) resource guide to assess and mitigate COVID-19 suggests the U.S. power sector continues to grapple with key concerns involving control center continuity, power plant continuity, access to restricted and quarantined areas, mutual assistance, and supply chain challenges, alongside urban demand shifts seen in Ottawa’s electricity demand during closures.

In its fifth and sixth versions of the “ESCC Resource Guide—Assessing and Mitigating the Novel Coronavirus (COVID-19),” released on April 16 and April 20, respectively, the ESCC expanded its guidance as it relates to social distancing and sequestration within tight power sector environments like control centers, crucial mitigation strategies that are designed to avoid attrition of essential workers.

The CEO-led power sector group that serves as a liaison with the federal government during emergencies introduced the guide on March 23, and it provides periodic updates  sourced from “tiger teams,” which are made up of representatives from investor-owned electric companies, public power utilities, electric cooperatives, independent power producers (IPPs), and other stakeholders. Collating regulatory updates and emerging resources, it serves as a general shareable blueprint for generators,  transmission and distribution (T&D) facilities, reliability coordinators, and balancing authorities across the nation on issues the sector is facing as the COVID-19 pandemic endures.

Controlling Spread at Control Centers
While control centers are typically well-isolated, physically secure, and may be conducive to on-site sequestration, the guide is emphatic that staff at these facilities are typically limited and they need long lead times to be trained to properly use the information technology (IT) and operational technology (OT) tools to keep control centers functioning and maintain grid visibility. Control room operators generally include: reliability engineers, dispatchers, area controllers, and their shift supervisors. Staff that directly support these function, also considered critical, consist of employees who maintain and secure the functionality of the IT and OT tools used by the control room operators.

In its latest update, the ESCC notes that many entities took “proactive steps to isolate their control center facilities from external visitors and non-essential employees early in the pandemic, leveraging the presence of back-up control centers, self-quarantining of employees, and multiple shifts to maximize social distancing.” To ensure all levels of logistical and operational challenges posed by the pandemic are addressed, it envisions several scenarios ranging from mild contagion—where a single operator is affected at one of two control center sites to the compromise of both sites.

Previous versions of the guide have set out universal mitigation strategies—such as clear symptom reporting, cleaning, and travel guidance. To ensure continuity even in the most dire of circumstances, for example, it recommends segregating shifts, and even sequestering a “complete healthy shift” as a “reserve” for times when minimum staffing levels cannot be met. It also encourages companies to develop a backup staff of retirees, supervisors, managers, and engineers that could backfill staffing needs.

Meanwhile, though social distancing has always been a universal mitigation strategy, the ESCC last week detailed what social distancing at a control room could look like. It says, for example, that entities should consider if personnel can do their jobs in spaces adjacent to the existing control room; moving workstations to allow at least six feet of space between employees; or designating workstations for individual operators. The guide also suggests remote operations outside of a single control room as an option, and some markets are exploring virtual power plant models in the UK to support flexibility, though it underscores that not all control center operations can be performed remotely, and remote operations increase the potential for security vulnerabilities. “The NERC [North American Electric Reliability Corp.] Reliability Standards address requirements for BES [bulk electric system] control centers and security controls for remote access of systems, applications, or data,” the resource guide notes.

Sequestration—Highly Effective but Difficult
Significantly, the new update also clarifies circumstances that could “trigger” sequestration—or keeping mission-essential workers at facilities. Sequestration, it notes, “is likely to be the most effective means of reducing risk to critical control center employees during a pandemic, but it is also the most resource- and cost-intensive option to implement.”

It is unclear exactly how many power sector workers are currently being sequestered at facilities. According to the  American Public Power Association (APPA), as of last week, the New York Power Authority was sequestering 82 power plant control room and transmission control operator, amid New York City’s shifting electric rhythms during COVID-19; the Sacramento Municipal Utility District (SMUD) in California had begun sequestering critical employees; and the Electric & Gas Utility at the City of Tallahassee had 44 workers being rotated in and out of sequestration. Another 37 workers from the New York ISO were already being sequestered or housed onsite as of April 9. PJM began sequestering a team of operators on April 11, and National Grid was sequestering 200 employees as of April 12. 

Decisions to trigger sequestration at T&D and other grid monitoring facilities are typically driven by entities’ risk assessment, ESCC noted. Considerations may involve: 

The number of people showing symptoms or testing positive as a percentage of the population in a county or municipality where the control center is sited. One organization, for example, is considering a lower threshold of 10% community infection as a trigger of “officer-level decision” to determine whether to sequester. A higher threshold of 20% “mandates a move to sequestration,” ESCC said.
The number of essential workers showing symptoms or having tested positive. “Acceptable risk should be based on the minimum staffing requirements of the control center and should include the availability of a reserve shift for critical position backfills. For example, shift supervisors are commonly certified in all positions in the control center, and the unavailability of more than one-third of a single organization’s shift supervisors could compromise operations,” it said.
The rate of infection spread across a geographic region. In the April 20 version, the guide removes specific mention that cases are doubling “every 3–5 days or more frequently in some areas.” It now says:  “Considering the rapid spread of COVID-19, special care should be taken to identify the point at which control center personnel are more likely than not to come into contact with an infected individual during their off-shift hours.”
Generator Sequestration Measures Vary
Generators, meanwhile, have taken different approaches to sequester generation operators. Some have reacted to statewide outbreaks, others to low reserves, and others still, as with one IPP, to control exposure to smaller staffs, which cannot afford attrition. The IPP, for example, decided sequestration was necessary because it “did not want to wait for confirmed cases in the workforce.” That company sequestered all its control room operators, outside operators, and instrumentation and control technicians.

The ESCC resource guide says workers are being sequestered in several ways. On-site, these could range from housing workers in two separate areas, for example, or in trailers brought in. Off-site, workers may be housed in hotel rooms, which the guide notes, “are plentiful.”

Location makes a difference, it said: “Onsite requires more logistical co-ordination for accommodations, food, room sanitization, linens, and entertainment.”  To accommodate sequestered workers, generators have to consider off-site food and laundry services (left at gates for pick-up)—and even extending Wi-Fi for personal use. Generators are learning from each other about all aspects of sequestration—including how to pay sequestered workers. It suggests sequestered workers should receive pay for all hours inside the plant, including straight time for regularly scheduled hours and time-and-a-half for all other hours. To maintain non-sequestered employees, who are following stay-at-home protocols, pay should remain regularly scheduled, it says.

Testing Remains a Formidable Hurdle
Though decisions to sequester differ among different power entities, they appear commonly complicated by one prominent issue: a dearth of testing.

At the center of a scuffle between the federal and state governments of late, the number of tests has not kept pace with the severity of the pandemic, and while President Trump has for some weeks claimed that “Testing is a local thing,” state officials, business leaders—including from the power sector—and public health experts say that it is far short of the several hundred thousands or perhaps even millions of daily tests it might take to safely restart the economy, even as calls to keep electricity options open grow among policymakers, a three-phase approach for which the Trump administration rolled out this week. While the White House said the approach is “based on the advice of public health experts, the suggestions do not indicate a specific timeframe. Some hard-hit states have committed to keeping current restrictions in place. New York on April 16 said it would maintain a shutdown order through May 15, while California published its own guidelines and states in the Northeast, Midwest, and West Coast entered regional pacts that may involve interstate coordination on COVID-19–related policy going forward.

On Sunday, responding to a call by governors across the political spectrum that insisted the federal government should step up efforts to help states obtain vital supplies for tests, Trump said the federal government will be “using” and “preparing to use” the Defense Production Act to increase swab production.

For the power entities that are part of the ESCC, widespread testing underlies many mitigation strategies. The group’s generation owners and operating companies, which include members from the full power spectrum, have said testing is central to “successful mitigation of risk to control center continuity.”

In the updated guide, the entities recommend requesting that governmental authorities—it is unclear whether the focus should be on the federal or state governments—“direct medical facilities to prioritize testing for asymptomatic generation control room operators, operator technicians, instrument and control technicians, and the operations supervisor (treat comparable to first responders) in advance of sequestered, extended-duration shifts; and obtain state regulatory approval for corporate health services organizations to administer testing for coronavirus to essential employees, if applicable.”

The second priority, as crucial, involves asking the government to direct medical facilities to prioritize testing for control room operators before they are sequestered or go into extended-duration shifts.

Generators also want local, regional, state, and federal governments to ensure operators of generating facilities are allowed to move freely if “populace-wide quarantine/curfew or other travel restrictions” are enacted. Meanwhile,  they have also asked federal agencies and state permitting agencies to allow for non-compliance operations of generating facilities in case enough workers are not available.

Lower on its list, but still “medium priority,” is that the government should obtain authority for priority supply of sanitizing supplies and personal protective equipment (PPE) for generating facilities. They are also asking states to allow power plant employees (as opposed to crucially redirected medical personnel) to administer health questionnaires and temperature checks without Americans with Disabilities Act or other legal constraints. Newly highlighted in the update, meanwhile, is an emphasis on enough fire retardant (FR) vests and hoods and PPE, including masks and face coverings, so technicians don’t have to share them.

The worst-case scenario envisioned for generators involves a 40% workforce attrition, a nine-month pandemic, and no mutual assistance. As the update suggests, along with universal mitigation strategies, some power companies are eliminating non-essential work that would require close contact, altering assignments so work tasks are done by paired teams that do not rotate, and ensuring workers wear masks. The resource guide includes case studies and lessons learned so far, and all suggest pandemic planning was crucial to response. 

Gearing Up for Mutual Assistance—Even for Generation—During COVID-19
Meanwhile, though the guide recognizes that protecting employees is a key priority for many entities, it also lauds the crucial role mutual assistance plays in the sector’s collective response to the pandemic, even as coal and nuclear plant closures test just transition planning across regions. Mutual assistance is a long-standing power sector practice in the U.S. Last week, for example, as severe weather impacted the southern and eastern portions of the U.S., causing power outages for 1.3 million customers at the peak, the sector demonstrated the “versatility of mutual assistance processes,” bringing in additional workers and equipment from nearby utilities and contractors to assist with assessment and repair. “Crews utilized PPE and social distancing per the CDC [Centers for Disease Control and Prevention] and OSHA [Occupational Safety and Health Administration] guidelines to perform their restoration duties,” the Energy Department told POWER.

But as the ESCC’s guide points out, mutual assistance has traditionally been deployed to help restore electric service to customers, typically focused on T&D infrastructure. The COVID-19 pandemic, uniquely, “has motivated generation entities to consider the use of mutual assistance for generation plant operation” it notes. As with the model it proposes to ensure continuity of control centers, mutual aid poses key challenges, such as for task variance, knowledge of operational practice, system customization, and legal indemnification.

Among guidelines ESCC proposes for generators are to use existing employee work stoppage plans as a resource in planning for the use of personnel not currently assigned to plant operation. It urges, for example, that generators keep a list of workers with skills who can be called from corporate/tech support (such as former operators or plant engineers/managers), or retirees and other individuals who could be called upon to help operate the control room first. ESCC also recommends considering the use of third-party contractor operations to supplement plant operations.

Key to these efforts is to “Create a thorough list of experience and qualifications needed to operate a particular unit. Important details include fuel type, OEM [original equipment manufacturer] technology, DCS [distributed control system] type, environmental controls, certifications, etc,” it says. “Consider proactively sharing this information internally within your company first and then with neighboring companies”—and that includes sufficient detail from manufacturers (such as Emerson Ovation, GE Mark VI, ABB, Honeywell)—“without exposing proprietary information.” One way to control this information is to develop a mutual assistance agreement with “strategic” companies within the region or system, it says.

Of specific interest is that the ESCC also recommends that generators consider “leaving units in extended or planned maintenance outage in that state as long as possible.” That’s because, “Operators at these offline sites could be considered available for a site responding to pandemic challenges,” it says.

However, these guidelines differ by resource. Nuclear generators, for example, already have robust emergency plans that include minimum staffing requirements, and owing to regulations, mutual aid is managed by each license holder, it says. However, to provide possible relief for attrition at operating nuclear plants, the Nuclear Regulatory Commission (NRC) on March 28 outlined a streamlined process that could allow nuclear operators to obtain exemptions from work hour rules, while organizations also point to IAEA low-carbon electricity lessons for future planning.

Uncertainty of Supply Chain Endurance
As the guide stresses, operational continuity during the pandemic will require that all power entities maintain supply of inputs and physical equipment. To help entities plan ahead—by determining volumes needed and geographic location of suppliers—it lists the most important materials needed for power delivery and bulk chemicals. “Clearly, the extent and duration of this emergency will influence the importance of one supply chain component compared to another,” it says.

As Massachusetts Institute of Technology supply chain expert David Simchi-Levi noted on April 13, global supply chains have been heavily taxed by the pandemic, and manufacturing activities in the European Union and North America are still going offline. China is showing signs of slow recovery. Even in the best-case scenario, however—even if North America and Europe manage to control and reduce the pandemic—the supply chain will likely experience significant logistical capacity shortages, from transportation to warehousing. Owing to variability in timing, he suggested that companies plan to reconfigure supply chains and reposition inventory in case suppliers go out of business or face quarantine, while some industry groups urge investing in hydropower as part of resilient recovery strategies.

Also in short supply, according to ESCC, is industry-critical PPE. “While our sector recognizes that the priority is to ensure that PPE is available for workers in the healthcare sector and first responders, a reliable energy supply is required for healthcare and other sectors to deliver their critical services,” its resource guide notes. “The sector is not looking for PPE for the entire workforce. Rather, we are working to prioritize supplies for mission-essential workers – a subset of highly skilled energy workers who are unable to work remotely and who are mission-essential during this extraordinary time.”

Among critical industry PPE needs are nitrile gloves, shoe covers, Tyvek suits, goggles/glasses, hand sanitizer, dust masks, N95 respirators, antibacterial soap, and trashbags. While it provides a list of non-governmental PPE vendors and suppliers, the guide also provides several “creative” solutions. These include, for example, formulations for effective hand sanitizer; 3D printer face shield files; methods for decontaminating face piece respirators and other PPE; and instructions for homemade masks with pockets for high-efficiency particulate air (HEPA) filter inserts.

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Vietnam Offshore Wind Regulations expand coastal zones to six nautical miles, remove water depth limits, streamline permits, and boost investment, grid integration, and renewable energy capacity across deeper offshore wind resource areas.

Key Points

Policies extend sites to six nautical miles, scrap depth limits, and speed permits to scale offshore wind.

✅ Extends offshore zones to six nautical miles from shore

✅ Removes water depth limits to access stronger winds

✅ Streamlines permits, aiding grid integration and finance

Vietnam has recently redefined its regulations for offshore wind power projects, marking a significant development in the country's renewable energy ambitions. This strategic shift aims to streamline regulatory processes, enhance project feasibility, and accelerate the deployment of offshore wind energy in Vietnam's coastal regions, amid a trillion-dollar offshore wind market globally.

Regulatory Changes

The Vietnamese government has adjusted offshore wind power regulations by extending the allowable distance from shore for wind farms to six nautical miles (approximately 11 kilometers), a move that aligns with evolving global practices such as Canada's offshore wind plan announced recently by regulators. This expansion from previous limits aims to unlock new areas for development and maximize the utilization of Vietnam's vast offshore wind potential.

Scrapping Depth Restrictions

In addition to extending offshore boundaries, Vietnam has removed restrictions on water depth for offshore wind projects. This revision allows developers to explore deeper waters, where wind resources may be more abundant, thereby diversifying project opportunities and optimizing energy generation capacity.

Strategic Implications

The redefined regulations are expected to stimulate investment in Vietnam's renewable energy sector, attracting domestic and international stakeholders keen on capitalizing on the country's favorable wind resources, with World Bank support for wind underscoring the growing pipeline in developing markets. The move aligns with Vietnam's broader energy diversification goals and commitment to reducing reliance on fossil fuels.

Economic Opportunities

The expansion of offshore wind development zones creates economic opportunities across the value chain, from project planning and construction to operation and maintenance. The influx of investments is anticipated to spur job creation, technology transfer, and infrastructure development in coastal communities, as industry groups like Marine Renewables Canada shift toward offshore wind specialization.

Environmental and Energy Security Benefits

Harnessing offshore wind power contributes to Vietnam's efforts to mitigate greenhouse gas emissions and combat climate change. By integrating renewable energy sources into its energy mix, Vietnam enhances energy security, as seen in the UK offshore wind expansion, reduces dependency on imported fuels, and promotes sustainable economic growth.

Challenges and Considerations

Despite the promising outlook, offshore wind projects face challenges such as technical complexities, environmental impact assessments, and grid integration, as well as exposure to policy risk exemplified by U.S. opposition to offshore wind debates.

Future Outlook

Looking ahead, Vietnam's redefined offshore wind regulations position the country as a key player in the global renewable energy transition, a trend reinforced by progress in offshore wind in Europe elsewhere. Continued policy support, investment facilitation, and technological innovation will be critical in unlocking the full potential of offshore wind power and achieving Vietnam's renewable energy targets.

Conclusion

Vietnam's revision of offshore wind power regulations reflects a proactive approach to advancing renewable energy development and fostering a conducive investment environment. By expanding development zones and eliminating depth restrictions, Vietnam sets the stage for accelerated growth in offshore wind capacity, contributing to both economic prosperity and environmental stewardship. As stakeholders seize opportunities in this evolving landscape, collaboration and innovation will drive Vietnam towards a sustainable energy future powered by offshore wind.

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Canada Oil Recession Outlook analyzes the Russia-Saudi price war, OPEC discord, COVID-19 demand shock, WTI and WCS collapse, Alberta oilsands exposure, U.S. shale stress, and GDP risks from blockades and fiscal responses.

Key Points

An outlook on how the oil price war and COVID-19 demand shock could tip Canada into recession and strain producers.

✅ WTI and WCS prices plunge on OPEC-Russia discord

✅ Alberta oilsands face break-even pressure near 30 USD WTI

✅ RBC flags global recession; GDP hit from blockades, virus

A war between Russia and Saudi Arabia for market share for oil may have been triggered by the COVID-19 pandemic in China, but the oil price crash contagion that it will spread could have impacts that last longer than the virus.

The prospects for Canada are not good.

Plunging oil prices, reduced economic activity from virus containment, and the fallout from weeks of railway blockades over the Coastal GasLink pipeline all add up to “a one-two-three punch that I think is almost inevitably going to put Canada in a position where its growth has to be negative,” said Dan McTeague, a former Liberal MP and current president of Canadians for Affordable Energy. The situation “certainly has the makings” of a recession, said Ken Peacock, chief economist for the Business Council of British Columbia.

“At a minimum, it’s going to be very disruptive and we’re going to have maybe one negative quarter,” Peacock said. “Whether there’s a second one, where it gets labeled a recession, is a different question. But it’s going to generate some turmoil and challenges over the next two quarters – there’s no doubt about that.”

RBC Economics on March 13 announced it now predicts a global recession and cut its growth projections for Canada's economy in 2020 by half a per cent.

Oil price futures plunged 30% last week, dragging stock markets and currencies, including the Canadian dollar, down with them, even as a deep freeze strained U.S. energy systems. That drop came on top of a 17% decline in February, due to falling demand for oil due to the virus.

The latest price plunge – the worst since the 1991 Gulf War – was the result of Russia and the Organization of Petroleum Exporting Countries (OPEC), led by Saudi Arabia, failing to agree on oil production cuts.

The COVID-19 outbreak in China – the world’s second-largest oil consumer – had resulted in a dramatic drop in oil demand in that country, and a sudden glut of oil, with the U.S. energy crisis affecting electricity, gas and EV markets.

OPEC has historically been able to moderate global oil prices by controlling output. But when Russia refused to co-operate with OPEC and agree to production cuts, Saudi Arabia’s state-owned company, Aramco, announced it plans to boost its oil output from 9.7 million barrels per day (bpd) to 12.3 million bpd in April.

In response to that announcement, West Texas Intermediate (WTI) prices dropped 18% to below US$34 per barrel while the Canadian Crude Index fell 24% to US$21. Western Canadian Select dropped 39% to US$15.73.

The effect on Alberta oilsands producers was severe and immediate. Cenovus Energy Inc. (TSX:CVE) saw roughly $2 billion in market cap erased on March 9, when its stock dropped by 52%, which came on top of a 12% drop March 6.

The company responded the very next day by announcing it would cut spending by 32% in 2020, suspend its oil-by-rail program and defer expansion projects.

MEG Energy Corp. (TSX:MEG), which suffered a 56% share price drop on March 9, also announced a 20% reduction in its 2020 capital spending plan.

Peter Tertzakian, chief economist for ARC Energy Research Institute, wrote last week that Russia’s plan is to try to hurt U.S. shale oil producers, who have more than doubled U.S. oil production over the past decade.

Anas Alhajji, a global oil analyst, expects that plan could work. Even before the oil price shock, he had predicted the great shale boom in the U.S. was coming to an end.

“Shale production will decline, and the myth of ‘explosive growth’ will end,” he told Business in Vancouver. “The impact is global and Canadian producers might suffer even more if the oil that Saudi Arabia sends to the U.S. is medium and heavy. This might last longer than what people think.”

The question for Alberta is how Canadian producers can continue to operate through a period of cheap oil. Alberta producers do not compete on the global market. They serve a niche market of U.S. heavy oil refiners, and Biden-era policy is seen as potentially more favourable for Canada’s energy sector than alternatives.

“On the positive side, the industry is battle-hardened,” Tertzakian wrote. “Over the past five years, innovative companies have already learned to endure some of the lowest prices in the world.”

But he added that they need WTI prices of US$30 per barrel just to break even.

“But that’s an average break-even threshold for an industry with a wide variation in costs. That means at that level about half the companies can’t pay their bills and half are treading water.”

Just prior to the oil price plunge, the International Energy Agency (IEA) updated its 2020 forecast for global oil consumption from an 825,000 bpd increase in oil consumption to a 90,000 bpd decrease, due to the COVID-19 virus and consequent economic contraction and reduction in travel.

The IEA predicts global oil demand won’t return to “normal” until the second half of 2020. But even if demand does return to pre-virus levels, that doesn’t mean oil prices will – not if Saudi Arabia can sustain increased oil production at low prices, and evolving clean grid priorities could influence the trajectory too.

The oil plunge was greeted in Alberta with alarm. Alberta Premier Jason Kenney warned Alberta is in “uncharted territory” as consumers are urged to lock in rates and said his government might have to review its balanced budget and resort to emergency deficit spending.

While British Columbians – who pay some of the highest gasoline prices in North America – will enjoy lower gasoline prices at a time when prices are usually starting a seasonal spike, B.C.’s economy could feel knock-on effects from a recession in Alberta.

“We sell a lot of inputs, do a lot of trade with Alberta, so it’s important for B.C., Alberta’s economic health,” Peacock said, “and recent tensions over electricity purchase talks underscore that.”

Last week, the Trudeau government announced $1 billion in emergency funding to cope with the virus and waived a one-week waiting period for unemployment insurance.

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U.S. Power Sector Outlook 2022 previews clean energy targets, grid reliability and resilience upgrades, transmission expansion, renewable integration, EV charging networks, and decarbonization policies shaping utilities, markets, and climate strategies amid extreme weather risks.

Key Points

An outlook on clean energy goals, grid resilience, transmission, and EV infrastructure shaping U.S. decarbonization.

✅ States set 100% clean power targets; equity plans deepen.

✅ Grid reforms, transmission builds, and RTO debates intensify.

✅ EV plants, batteries, and charging corridors accelerate.

As sweeping climate legislation stalled in Congress this year, states and utilities were busy aiming to reshape the future of electricity.

States expanded clean energy goals and developed blueprints on how to reach them. Electric vehicles got a boost from new battery charging and factory plans.

The U.S. power sector also is sorting through billions of dollars of damage that will be paid for by customers over time. States coped with everything from blackouts during a winter storm to heat waves, hurricanes, wildfires and tornadoes. The barrage has added urgency to a push for increased grid reliability and resilience, especially as the power generation mix evolves, EV grid challenges grow as electricity is used to power cars and the climate changes.

“The magnitude of our inability to serve with these sort of discontinuous jumps in heat or cold or threats like wildfires and flooding has made it really clear that we can’t take the grid for granted anymore — and that we need to do something,” said Alison Silverstein, a Texas-based energy consultant.

Many of the announcements in 2021 could see further developments next year as legislatures, utilities and regulators flesh out details on everything from renewable projects to ways to make the grid more resilient.

On the policy front, the patchwork of state renewable energy and carbon reduction goals stands out considering Congress’ failure so far to advance a key piece of President Biden’s agenda — the "Build Back Better Act," which proposed about $550 billion for climate action. Criticism from fellow Democrats has rained on Sen. Joe Manchin (D-W.Va.) since he announced his opposition this month to that legislation (E&E Daily, Dec. 21).

The Biden administration has taken some steps to advance its priorities as it looks to decarbonize the U.S. power sector by 2035. That includes promoting electric vehicles, which are part of a goal to make the United States have net-zero emissions economywide no later than 2050. The administration has called for a national network of 500,000 EV charging stations as the American EV boom raises power-supply questions, and mandated the government begin buying only EVs by 2035.

Still, the fate of federal legislation and spending is uncertain. States and utility plans are considered a critical factor in whether Biden’s targets come to fruition. Silverstein also stressed the importance of regional cooperation as policymakers examine the grid and challenges ahead.

“Our comfort as individuals and as households and as an economy depends on the grid staying up,” Silverstein said, “and that’s no longer a given.”

Here are three areas of the electricity sector that saw changes in 2021, and could see significant developments next year:

1. Clean energy
The list of states with new or revamped clean energy goals expanded again in 2021, with Oregon and Illinois joining the ranks requiring 100 percent zero-carbon electricity in 2040 and 2050, respectively.

Washington state passed a cap-and-trade bill. Massachusetts and Rhode Island adopted 2050 net-zero goals.

North Carolina adopted a law requiring a 70 percent cut in carbon emissions by 2030 from 2005 levels and establishing a midcentury net-zero goal.

Nebraska didn’t adopt a statewide policy, but its three public power districts voted separately to approve clean energy goals, actions that will collectively have the same effect. Even the governor of fossil-fuel-heavy North Dakota, during an oil conference speech, declared a goal of making the state carbon-neutral by the end of the decade.

These and other states join hundreds of local governments, big energy users and utilities, which were also busy establishing and reworking renewable energy and climate goals this year in response to public and investor pressure.

However, many of the details on how states will reach those targets are still to be determined, including factors such as how much natural gas will remain online and how many renewable projects will connect to the grid.

Decisions on clean energy that could be made in 2022 include a key one in Arizona, which has seen support rise and fall over the years for a proposal to lead to 100 percent clean power for regulated electric utilities. The Arizona Corporation Commission could discuss the matter in January, though final approval of the plan is not a sure thing. Eyes also are on California, where a much bigger grid for EVs will be needed, as it ponders a recent proposal on rooftop solar that has supporters of renewables worried about added costs that could hamper the industry.

In the wake of the major energy bill North Carolina passed in 2021, observers are waiting for Duke Energy Corp.’s filing of its carbon-reduction plan with state utility regulators. That plan will help determine the future electricity mix in the state.

Warren Leon, executive director of the Clean Energy States Alliance (CESA), said that without federal action, state goals are “going to be more difficult to achieve.”

State and federal policies are complementary, not substitutes, he said. And Washington can provide a tailwind and help states achieve their goals more quickly and easily.

“Progress is going to be most rapid if both the states and the federal government are moving in the same direction, but either of them operating independently of the others can still make a difference,” he said.

While emissions reductions and renewable energy goals were centerpieces of the state energy and climate policies adopted this year, there were some other common threads that could continue in 2022.

One that’s gone largely unnoticed is that an increasing number of states went beyond just setting targets for clean energy and have developed plans, or road maps, for how to meet their goals, Leon said.

Like the New Year resolutions that millions of Americans are planning — pledges to eat healthier or exercise more — it’s far easier to set ambitious goals than to achieve them.

According to CESA, California, Colorado, Nevada, Maine, Rhode Island, Massachusetts and Washington state all established plans for how to achieve their clean energy goals. Prior to late 2020, only two states — New York and New Jersey — had done so.

Another trend in state energy and climate policies: Equity and energy justice provisions factored heavily in new laws in places such as Maine, Illinois and Oregon.

Equity isn’t a new concern for states, Leon said. But state plans have become more detailed in terms of their response to ways the energy transition may affect vulnerable populations.

“They’re putting much more concrete actions in place,” he said. “And they are really figuring out how they go about electricity system planning to make sure there are new voices at the table, that the processes are different, and there are things that are going to be measured to determine whether they’re actually making progress toward equity.”

2. Grid
Climate change and natural disasters have been a growing worry for grid planners, and 2021 was a year the issue affected many Americans directly.

Texas’ main power grid suffered massive outages during a deadly February winter storm, and it wasn’t far from an uncontrolled blackout that could have required weeks or months of recovery.

Consumers elsewhere in the country watched as millions of Texans lost grid power and heat amid a bitter cold snap. Other parts of the central United States saw more limited power outages in February.

“I think people care about the grid a lot more this year than they did last year,” Silverstein said, adding, “All of a sudden people are realizing that electricity’s not as easy as they’ve assumed it was and … that we need to invest more.”

Many of the challenges are not specific to one state, she added.

“It seems to me that the state regulators need to put a lot — and utilities need to put a lot — more commitment into working together to solve broad regional problems in cooperative regional ways,” Silverstein said.

In 2022, multiple decisions could affect the grid, including state oversight of spending on upgrades and market proposals that could sway the amount of clean energy brought online.

A focal point will be Texas, where state regulators are examining further changes to the Electric Reliability Council of Texas’ market design. That could have major implications for how renewables develop in the state. Leaders in other parts of the country will likely keep tabs on adjustments in Texas as they ponder their own changes.

Texas has already embarked on reforms to help improve the power sector and its coordination with the natural gas system, which is critical to keeping plants running. But its primary power grid, operated by ERCOT, remains largely isolated and hasn’t been able to rule out power shortages this winter if there are extreme conditions (Energywire, Nov. 22).

Transmission also remains a key issue outside of the Lone Star State, both for resilience and to connect new wind and solar farms. In many areas of the country, the job of planning these new regional lines and figuring out how to allocate billions of dollars in costs falls to regional grid operators (Energywire, Dec. 13).

In the central U.S., the issue led to tension between states in the Midwest and the Gulf South (Energywire, Oct. 15).

In the Northeast, a Maine environmental commissioner last month suspended a permit for a major transmission project that could send hydropower to the region from Canada (Greenwire, Nov. 24). The project’s developers are now battling the state in court to force construction of the line — a process that could be resolved in 2022 — after Mainers signaled opposition in a November vote.

Advocates of a regional transmission organization for Western states, meanwhile, hope to keep building momentum even as critics question the cost savings promoted by supporters of organized markets. Among those in existing markets, states such as Louisiana are expected to monitor the costs and benefits of being associated with the Midcontinent Independent System Operator.

In other states, more details are expected to emerge in 2022 about plans announced this year.

In California, where policymakers are also exploring EVs for grid stability alongside wildfire prevention, Pacific Gas & Electric Co. announced a plan over the summer to spend billions of dollars to underground some 10,000 miles of power lines to help prevent wildfires, for example (Greenwire, July 22).

Several Southeastern utilities, including Dominion Energy Inc., Duke Energy, Southern Co. and the Tennessee Valley Authority, won FERC approval to create a new grid plan — the Southeast Energy Exchange Market, or SEEM — that they say will boost renewable energy.

SEEM is an electricity trading platform that will facilitate trading close to the times when the power is used. The new market is slated to include two time zones, which would allow excess renewables such as solar and wind to be funneled to other parts of the country to be used during peak demand times.

SEEM is significant because the Southeast does not have an organized market structure like other parts of the country, although some utilities such as Dominion and Duke do have some operations in the region managed by PJM Interconnection LLC, the largest U.S. regional grid operator.

SEEM is not a regional transmission organization (RTO) or energy imbalance market. Critics argue that because it doesn’t include a traditional independent monitor, SEEM lacks safeguards against actions that could manipulate energy prices.

Others have said the electric companies that formed SEEM did so to stave off pressure to develop an RTO. Some of the regulated electric companies involved in the new market have denied that claim.

3. Electric vehicles
With electric vehicles, the Midwest and Southeast gained momentum in 2021 as hubs for electrifying the transportation sector, as EVs hit an inflection point in mainstream adoption, and the Biden administration simultaneously worked to boost infrastructure to help get more EVs on the road.

From battery makers to EV startups to major auto manufacturers, companies along the entire EV supply chain spectrum moved to or expanded in those two regions, solidifying their footprint in the fast-growing sector.

A wave of industry announcements capped off in December with California-based Rivian Automotive Inc. declaring it would build a $5 billion electric truck, SUV and van factory in Georgia. Toyota Motor Corp. picked North Carolina for its first U.S.-based battery plant. General Motors Co. and a partner plan to build a $2.5 billion battery plant in GM’s home state of Michigan. And Proterra Inc. has unveiled plans to build a new battery factory in South Carolina.

Advocates hope the EV shift by automakers in the Midwest and Southeast will widen the options for customers. Automakers and startups also have been targeting states with zero-emission vehicle targets to launch new and more models because there’s an inherent demand for them.

“The states that have adopted those standards are getting more vehicles,” said Anne Blair, senior EV policy manager for the Electrification Coalition.

EV advocates say they hope those policies could help bring products like Ford’s electrified signature truck line on the road and into rural areas. Ford also is partnering with Korean partner SK Innovation Co. Ltd. to build two massive battery plants in Kentucky.

Regardless of the fanfare about new vehicles, more jobs and must-needed economic growth, barriers to EV adoption remain. Many states have tacked on annual fees, which some elected officials argue are needed to replace revenues secured from a gasoline tax.

Other states do not allow automakers to sell directly to consumers, preventing companies like Lordstown Motors Corp. and Rivian to effectively do business there.

“It’s about consumer choice and consumers having the capacity to buy the vehicles that they want and that are coming out, in new and innovative ways,” Blair told E&E News. Blair said direct sales also will help boost EV sales at traditional dealerships.

In 2022, advocates will be closely watching progress with the National Electric Highway Coalition, amid tensions over charging control among utilities and networks, which was formed by more than 50 U.S. power companies to build a coast-to-coast fast-charging network for EVs along major U.S. travel corridors by the end of 2023 (Energywire, Dec. 7).

A number of states also will be holding legislative sessions, and they could include new efforts to promote EVs — or change benefits that currently go to owners of alternative vehicles.

EV advocates will be pushing for lawmakers to remove barriers that they argue are preventing customers from buying alternative vehicles.

Conversations already have begun in Georgia to let startup EV makers sell their cars and trucks directly to consumers. In Florida, lawmakers will try again to start a framework that will create a network of charging stations as charging networks jostle for position under federal electrification efforts, as well as add annual fees to alternative vehicles to ease concerns over lost gasoline tax revenue.

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BC Hydro Peak Electricity Demand reached a record 10,902 megawatts during a cold snap, driven by home heating. Peak hours surged; load shifting and energy conservation can ease strain on the grid and lower bills.

Key Points

Record winter peak of 10,902 MW, set during a cold snap, largely from home heating demand at peak hours.

✅ All-time high load: 10,902 MW between 5 and 6 p.m., Dec. 27.

✅ Cold snap increased home heating demand during peak hours.

✅ Shift laundry and dishwashers off-peak; use programmable thermostats.

BC Hydro says the province set a new record for peak electricity demand on Monday as temperatures hit extreme lows, and Quebec shattered consumption records during similar cold weather.

Between 5 and 6 p.m. on Dec. 27, demand for electricity hit an all-time high of 10,902 megawatts, which is higher than the previous record of 10,577 megawatts set in 2020, and follows a record-breaking year in 2021 for the utility.

“The record represents a single moment in the hour when demand for electricity was the highest yesterday,” says Simi Heer, BC Hydro spokesperson, in a statement. “Most of the increase is likely due to additional home heating required during this cold snap.”

In addition to the peak demand record on Monday, BC Hydro has observed an overall increase in electricity demand since Friday, and has noted that cryptocurrency mining electricity use is an emerging load in the province as well. Monday’s hourly peak demand was 18 per cent higher than Friday’s, while Calgary's electricity use soared during a frigid February, underscoring how cold snaps strain regional grids.

“BC Hydro has enough supply options in place to meet increasing electricity demand,” adds Heer, and pointed to customer supports like a winter payment plan for households managing higher bills. “However, if British Columbians want to help ease some of the demand on the system during peak times, we encourage shifting activities like doing laundry or running dishwashers to earlier in the day or later in the evening.”

BC Hydro is also offering energy conservation tips for people looking to lower their electricity use and their electricity bills, noting that Earth Hour once saw electricity use rise in the province:

Manage your home heating actively by turning the heat down when no one his home or when everyone is sleeping. Consider installing a programmable thermostat to automatically adjust temperatures at different times based on your family's activities, and remember that in warmer months wasteful air conditioning can add $200 to summer energy bills. BC Hydro recommends the following temperatures:

16 degrees Celsius when sleeping or away from home
21 degrees Celsius when relaxing, watching TV
18 degrees Celsius when doing housework or cleaning
 

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ERCOT Texas Fall Grid Forecast outlines ample power supply, planned maintenance outages, and grid reliability, citing PUC oversight and Gov. Abbott's remarks, with seasonal assessment noting mild demand yet climate risks and conservation alerts.

Key Points

ERCOT's seasonal outlook for Texas on fall power supply, outages, and reliability expectations under PUC oversight.

✅ Projects sufficient supply in October and November

✅ Many plants scheduled offline for maintenance

✅ Notes PUC oversight and Abbott's confidence

Gov. Greg Abbott said Tuesday that the Texas power grid is prepared for the fall months and referenced a new seasonal forecast by the state’s grid operator, which typically does not draw much attention to its fall and spring grid assessments because of the more mild temperatures during those seasons.

Tuesday’s new forecast by the Electric Reliability Council of Texas showed that there should be plenty of power supply to meet demand in October and November. It also showed that many Texas power plants are scheduled to be offline this fall for maintenance work. Texas power plants usually plan to go down in the fall and spring for repairs to improve reliability ahead of the more extreme temperatures in winter and summer, when Texans crank up their heat and air conditioning and raise demand for power.

ERCOT for at least a decade announced its seasonal forecasts, but did not do so on Tuesday. The grid operator stopped announcing the reports after the 2021 winter storm event. A spokesperson for the grid operator, which posted the report to its website midday without notifying the public or power industry stakeholders, said there were no plans to discuss the latest forecast and referred questions about it to the Public Utility Commission, which oversees ERCOT. Abbott appoints the board of the PUC.

Abbott on Tuesday expressed his confidence about the grid in a news release, which included photos of the governor sitting at a table with incoming ERCOT CEO Pablo Vegas, outgoing interim CEO Brad Jones and Public Utility Commission Chair Peter Lake.

“The State of Texas continues to monitor the reliability of our electric grid, and I thank ERCOT and PUC for their hard work to implement bipartisan reforms we passed last year and for their proactive leadership to ensure our grid is stronger than ever before,” Abbott said in the release.

Abbott has not previously shared or called attention to ERCOT’s forecasts as he did on Tuesday.

Up for reelection this fall, Abbott has faced continued criticism, including from the Sierra Club over his handling of the 2021 deadly power grid disaster, when extended freezing temperatures shut down natural gas facilities and power plants, which rely on each other to keep electricity flowing. The resulting blackouts left millions of Texans without power for days in the cold, and hundreds of people died.

ERCOT’s forecasts for fall and spring are typically the least worrisome seasonal forecasts, energy experts said, because temperatures are usually milder in between summer and winter, even as ERCOT has issued an RFP to procure winter capacity to address shortages, so demand for power usually does not skyrocket like it does during extreme temperatures.

But they’ve warned that climate change could potentially lead to more extreme temperatures during times when Texas hasn’t experienced such weather in the past. For example, in early May six power plants unexpectedly broke down when a spring heat wave drove power demand up and highlighted broader heat-related blackout risks across the grid. ERCOT asked Texans to conserve electricity at home at the time.

Abbott released the seasonal report at a time when he has asserted unprecedented control over ERCOT. Although he had no formal role in ERCOT’s search for a new permanent CEO, he put a stranglehold on the process, The Texas Tribune previously reported. Since the winter storm, Abbott’s office has also dictated what information about the power grid ERCOT has released to the public.

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