Texas urged to stay with deregulated power market

By McClatchy Tribune News


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Texas' growing energy needs require new power plants of all types and continuation of a deregulated power market despite high electricity prices, according to recommendations from the governor's competitiveness council.

Texas will require 2 percent more energy every year, which means it will need dozens more natural gas, coal and nuclear plants and more wind power to maintain a safety margin, the council said. Texas also needs plants to replace older ones that will be mothballed.

The recommendations were among 37 designed to keep the state attractive to business and globally competitive. "America must be much more independent on the energy side," Gov. Rick Perry told several hundred business leaders. "And Texas is going to lead us all."

Higher natural gas prices this year combined with the state's dependence on natural gas plants for much of its electricity have soured many consumers on the deregulated market because of high monthly bills.

The council's report noted that among states with mostly natural gas power, Texas' electricity costs are actually lower than seven other states.

"Our retail market is the most successful retail market in the world," said Barry Smitherman, chairman of the state's Public Utility Commission. "We have 25 retail electric providers fighting against each other every day for your business," he said. "Natural gas prices have increased 400 percent while electricity costs have risen just 30 percent."

Part of consumer frustration over high rates has come from the shutdown of several electricity providers; the council's report recommends changing the certification process for new power retailers.

The council predicts that any federal attempt to set caps on carbon emissions will hurt Texas's energy-intensive economy disproportionately compared with other states. The report urged a partnership between state agencies to educate the public about the "high cost of carbon regulation" compared with its environmental benefits. Texas must continue to encourage wind power development and explore the economic viability of solar energy, perhaps by establishing innovation prizes. The state should also de-emphasize the preference given to building natural gas plants.

Other recommendations include:

- Streamlining state water permitting to encourage utilities to build more nuclear plants.

- Adding a sales tax exemption for solar generation systems.

- Encouraging the development of offshore wind generation because offshore winds blow during peak demand; the wind in West Texas generally blows early in the morning and at night.

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Ford's Washington Meeting: Energy Tariffs and Trade Tensions with U.S

Ontario-U.S. Energy Tariff Dispute highlights cross-border trade tensions, retaliatory tariffs, export surcharges, and White House negotiations as Doug Ford meets U.S. officials to de-escalate pressure over steel, aluminum, and energy supplies.

 

Key Points

A trade standoff over energy exports and tariffs, sparked by Ontario's surcharge and U.S. duties on steel and aluminum.

✅ 25% Ontario energy surcharge paused before White House talks

✅ U.S. steel and aluminum tariffs reduced from 50% to 25%

✅ Potential energy supply cutoff remains leverage in negotiations

 

Ontario Premier Doug Ford's recent high-stakes diplomatic trip to Washington, D.C., underscores the delicate trade tensions between Canada and the United States, particularly concerning energy exports and Canada's electricity exports across the border. Ford's potential use of tariffs or even halting U.S. energy supplies, amid Ontario's energy independence considerations, remains a powerful leverage tool, one that could either de-escalate or intensify the ongoing trade conflict between the two neighboring nations.

The meeting in Washington follows a turbulent series of events that began with Ontario's imposition of a 25% surcharge on energy exports to the U.S. This move came in retaliation to what Ontario perceived as unfair treatment in trade agreements, a step that aligned with Canadian support for tariffs at the time. In response, U.S. President Donald Trump's administration threatened its own set of tariffs, specifically targeting Canadian steel and aluminum, which further escalated tensions. U.S. officials labeled Ford's threat to cut off U.S. electricity exports and energy supplies as "egregious and insulting," warning of significant economic retaliation.

However, shortly after these heated exchanges, Trump’s commerce secretary, Howard Lutnick, extended an invitation to Ford for a direct meeting at the White House. Ford described this gesture as an "olive branch," signaling a potential de-escalation of the dispute. In the lead-up to this diplomatic encounter, Ford agreed to pause the energy surcharge, allowing the meeting to proceed, amid concerns tariffs could spike NY energy prices, without further escalating the crisis. Trump's administration responded by lowering its proposed 50% tariff on Canadian steel and aluminum to a more manageable 25%.

The outcome of the meeting, which is set to address these critical issues, could have lasting implications for trade relations between Canada and the U.S. If Ford and Lutnick can reach an agreement, the potential for tariff imposition on energy exports, though experts advise against cutting Quebec's energy exports due to broader risks, could be resolved. However, if the talks fail, it is likely that both countries could face further retaliatory measures, compounding the economic strain on both sides.

As Canada and the U.S. continue to navigate these complex issues, where support for Canadian energy projects has risen, the outcome of Ford's meeting with Lutnick will be closely watched, as it could either defuse the tensions or set the stage for a prolonged trade battle.

 

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Is tidal energy the surge remote coastal communities need?

BC Tidal Energy Micro-Grids harness predictable tidal currents to replace diesel in remote Indigenous coastal communities, integrating marine renewables, storage, and demand management for resilient off-grid power along Vancouver Island and Haida Gwaii.

 

Key Points

Community-run tidal turbines and storage deliver reliable, diesel-free electricity to remote B.C. coastal communities.

✅ Predictable power from tidal currents reduces diesel dependence

✅ Integrates storage, demand management, and microgrid controls

✅ Local jobs via marine supply chains and community ownership

 

Many remote West Coast communities are reliant on diesel for electricity generation, which poses a number of negative economic and environmental effects.

But some sites along B.C.’s extensive coastline are ideal for tidal energy micro-grids that may well be the answer for off-grid communities to generate clean power, suggested experts at a COAST (Centre for Ocean Applied Sustainable Technologies) virtual event Wednesday.

There are 40 isolated coastal communities, many Indigenous communities, and 32 of them are primarily reliant on diesel for electricity generation, said Ben Whitby, program manager at PRIMED, a marine renewable energy research lab at the University of Victoria (UVic).

Besides being a costly and unreliable source of energy, there are environmental and community health considerations associated with shipping diesel to remote communities and running generators, Whitby said.

“It's not purely an economic question,” he said.

“You've got the emissions associated with diesel generation. There's also the risks of transporting diesel … and sometimes in a lot of remote communities on Vancouver Island, when deliveries of diesel don't come through, they end up with no power for three or four days at a time.”

The Heiltsuk First Nation, which suffered a 110,000-litre diesel spill in its territorial waters in 2016, is an unfortunate case study for the potential environmental, social, and cultural risks remote coastal communities face from the transport of fossil fuels along the rough shoreline.

A U.S. barge hauling fuel for coastal communities in Alaska ran aground in Gale Pass, fouling a sacred and primary Heiltsuk food-harvesting area.

There are a number of potential tidal energy sites near off-grid communities along the mainland, on both sides of Vancouver Island, and in the Haida Gwaii region, Whitby said.

Tidal energy exploits the natural ebb and flow of the coast’s tidal water using technologies like underwater kite turbines to capture currents, and is a highly predictable source of renewable energy, he said.

Micro-grids are self-reliant energy systems drawing on renewables from ocean, wave power resources, wind, solar, small hydro, and geothermal sources.

The community, rather than a public utility like BC Hydro, is responsible for demand management, storage, and generation with the power systems running independently or alongside backup fuel generators — offering the operators a measure of energy sovereignty.

Depending on proximity, cost, and renewable solutions, tidal energy isn’t necessarily the solution for every community, Whitby noted, adding that in comparison to hydro, tidal energy is still more expensive.

However, the best candidates for tidal energy are small, off-grid communities largely dependent on costly fossil fuels, Whitby said.

“That's really why the focus in B.C. is at a smaller scale,” he said.

“The time it would take (these communities) to recoup any capital investment is a lot shorter.

“And the cost is actually on a par because they're already paying a significant amount of money for that diesel-generated power.”

Lisa Kalynchuk, vice-president of research and innovation at UVic, said she was excited by the possibilities associated with tidal power, not only in B.C., but for all of Canada’s coasts.

“Canada has approximately 40,000 megawatts available on our three coastlines,” Kalynchuk said.

“Of course, not all this power can be realized, but it does exist, so that leads us to the hard part — tapping into this available energy and delivering it to those remote communities that need it.”

Challenges to establishing tidal power include the added cost and complexity of construction in remote communities, the storage of intermittent power for later use, the economic model, though B.C.’s streamlined regulatory process may ease approvals, the costs associated with tidal power installations, and financing for small communities, she said.

But smaller tidal energy projects can potentially set a track record for more nascent marine renewables, as groups like Marine Renewables Canada pivot to offshore wind development, at a lower cost and without facing the same social or regulatory resistance a large-scale project might face.

A successful tidal energy demo project was set up using a MAVI tidal turbine in Blind Channel to power a private resort on West Thurlow Island, part of the outer Discovery Islands chain wedged between Vancouver Island and the mainland, Whitby said.

The channel’s strong tidal currents, which routinely reach six knots and are close to the marina, proved a good site to test the small-scale turbine and associated micro-grid system that could be replicated to power remote communities, he said.

The mooring system, cable, and turbine were installed fairly rapidly and ran through the summer of 2017. The system is no longer active as provincial and federal funding for the project came to an end.

“But as a proof of concept, we think it was very successful,” Whitby said, adding micro-grid tidal power is still in the early stages of development.

Ideally, the project will be revived with new funding, so it can continue to act as a test site for marine renewable energy and to showcase the system to remote coastal communities that might want to consider tidal power, he said.

In addition to harnessing a local, renewable energy source and increasing energy independence, tidal energy micro-grids can fuel employment and new business opportunities, said Whitby.

The Blind Channel project was installed using the local supply chain out of nearby Campbell River, he said.

“Most of the vessels and support came from that area, so it was all really locally sourced.”

Funding from senior levels of government would likely need to be provided to set up a permanent tidal energy demonstration site, with recent tidal energy investments in Nova Scotia offering a model, or to help a community do case studies and finance a project, Whitby said.

Both the federal and provincial governments have established funding streams to transition remote communities away from relying on diesel.

But remote community projects funded federally or provincially to date have focused on more established renewables, such as hydro, solar, biomass, or wind.

The goal of B.C.’s Remote Community Energy Strategy, part of the CleanBC plan and aligned with zero-emissions electricity by 2035 targets across Canada, is to reduce diesel use for electricity 80 per cent by 2030 by targeting 22 of the largest diesel locations in the province, many of which fall along the coast.

The province has announced a number of significant investments to shift Indigenous coastal communities away from diesel-generated electricity, but they predominantly involve solar or hydro projects.

A situation that’s not likely to change, as the funding application guide in 2020 deemed tidal projects as ineligible for cash.

Yet, the potential for establishing tidal energy micro-grids in B.C. is good, Kalynchuk said, noting UVic is a hub for significant research expertise and several local companies, including ocean and river power innovators working in the region, are employing and developing related service technologies to install and maintain the systems.

“It also addresses our growing need to find alternative sources of energy in the face of the current climate crisis,” she said.

“The path forward is complex and layered, but one essential component in combating climate change is a move away from fossil fuels to other sources of energy that are renewable and environmentally friendly.”

 

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China to build 525-MW hydropower station on Yangtze tributary

Baima Hydropower Station advances China renewable energy on the Wujiang River, a Yangtze tributary in Chongqing; a 525 MW cascade project approved by NDRC, delivering 1.76 billion kWh and improving river shipping.

 

Key Points

An NDRC-approved 525 MW project on Chongqing's Wujiang River, producing 1.76 billion kWh and improving navigation.

✅ 10.2 billion yuan investment; final cascade plant on Wujiang in Chongqing

✅ Expected output: 1.76 billion kWh; capacity 525 MW; NDRC approval

✅ Improves river shipping; relocation of 5,000 residents in Wulong

 

China plans to build a 525-MW hydropower station on the Wujiang River, a tributary of the Yangtze River, in Southwest China's Chongqing municipality, aligning with projects like the Lawa hydropower station elsewhere in the Yangtze basin.

The Baima project, the last of a cascade of hydropower stations on the section of the Wujiang River in Chongqing, has gotten the green light from the National Development and Reform Commission, China's state planning agency, even as some independent power projects elsewhere face uncertainty, such as the Siwash Creek project in British Columbia, the Chongqing Municipal Commission of Development and Reform said Monday.

The project, in Baima township of Wulong district, is expected to involve an investment of 10.2 billion yuan ($1.6 billion), as China explores compressed air generation to bolster grid flexibility, it said.

#google#

With a power-generating capacity of 525 MW, it is expected to generate 1.76 billion kwh of electricity a year, supporting efforts to reduce coal power production nationwide, and help improve the shipping service along the Wujiang River.

More than 5,000 local residents will be relocated to make room for the project, which forms part of a broader energy mix alongside advances in nuclear energy in China.

 

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The Impact of AI on Corporate Electricity Bills

AI Energy Consumption strains corporate electricity bills as data centers and HPC workloads run nonstop, driving carbon emissions. Efficiency upgrades, renewable energy, and algorithm optimization help control costs and enhance sustainability across industries.

 

Key Points

AI Energy Consumption is the power used by AI compute and data centers, impacting costs and sustainability.

✅ Optimize cooling, hardware, and workloads to cut kWh per inference

✅ Integrate on-site solar, wind, or PPAs to offset data center power

✅ Tune models and algorithms to reduce compute and latency

 

Artificial Intelligence (AI) is revolutionizing industries with its promise of increased efficiency and productivity. However, as businesses integrate AI technologies into their operations, there's a significant and often overlooked impact: the strain on corporate electricity bills.

AI's Growing Energy Demand

The adoption of AI entails the deployment of high-performance computing systems, data centers, and sophisticated algorithms that require substantial energy consumption. These systems operate around the clock, processing massive amounts of data and performing complex computations, and, much like the impact on utilities seen with major EV rollouts, contributing to a notable increase in electricity usage for businesses.

Industries Affected

Various sectors, including finance, healthcare, manufacturing, and technology, rely on AI-driven applications for tasks ranging from data analysis and predictive modeling to customer service automation and supply chain optimization, while manufacturing is influenced by ongoing electric motor market growth that increases electrified processes.

Cost Implications

The rise in electricity consumption due to AI deployments translates into higher operational costs for businesses. Corporate entities must budget accordingly for increased electricity bills, which can impact profit margins and financial planning, especially in regions experiencing electricity price volatility in Europe amid market reforms. Managing these costs effectively becomes crucial to maintaining competitiveness and sustainability in the marketplace.

Sustainability Challenges

The environmental impact of heightened electricity consumption cannot be overlooked. Increased energy demand from AI technologies contributes to carbon emissions and environmental footprints, alongside rising e-mobility demand forecasts that pressure grids, posing challenges for businesses striving to meet sustainability goals and regulatory requirements.

Mitigation Strategies

To address the escalating electricity bills associated with AI, businesses are exploring various mitigation strategies:

  1. Energy Efficiency Measures: Implementing energy-efficient practices, such as optimizing data center cooling systems, upgrading to energy-efficient hardware, and adopting smart energy management solutions, can help reduce electricity consumption.

  2. Renewable Energy Integration: Investing in renewable energy sources like solar or wind power and energy storage solutions to enhance flexibility can offset electricity costs and align with corporate sustainability initiatives.

  3. Algorithm Optimization: Fine-tuning AI algorithms to improve computational efficiency and reduce processing times can lower energy demands without compromising performance.

  4. Cost-Benefit Analysis: Conducting thorough cost-benefit analyses of AI deployments to assess energy consumption against operational benefits and potential rate impacts, informed by cases where EV adoption can benefit customers in broader electricity markets, helps businesses make informed decisions and prioritize energy-saving initiatives.

Future Outlook

As AI continues to evolve and permeate more aspects of business operations, the demand for electricity will likely intensify and may coincide with broader EV demand projections that increase grid loads. Balancing the benefits of AI-driven innovation with the challenges of increased energy consumption requires proactive energy management strategies and investments in sustainable technologies.

Conclusion

The integration of AI technologies presents significant opportunities for businesses to enhance productivity and competitiveness. However, the corresponding surge in electricity bills underscores the importance of proactive energy management and sustainability practices. By adopting energy-efficient measures, leveraging renewable energy sources, and optimizing AI deployments, businesses can mitigate cost impacts, reduce environmental footprints, and foster long-term operational resilience in an increasingly AI-driven economy.

 

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Some old dams are being given a new power: generating clean electricity

Hydroelectric retrofits for unpowered dams leverage turbines to add renewable capacity, bolster grid reliability, and enable low-impact energy storage, supporting U.S. and Canada decarbonization goals with lower costs, minimal habitat disruption, and climate resilience.

 

Key Points

They add turbines to existing dams to make clean power, stabilize the grid, and offer low-impact storage at lower cost.

✅ Lower capex than new dams; minimal habitat disruption

✅ Adds firming and storage to support wind and solar

✅ New low-head turbines unlock more retrofit sites

 

As countries race to get their power grids off fossil fuels to fight climate change, there's a big push in the U.S. to upgrade dams built for purposes such as water management or navigation with a feature they never had before — hydroelectric turbines. 

And the strategy is being used in parts of Canada, too, with growing interest in hydropower from Canada supplying New York and New England.

The U.S. Energy Information Administration says only three per cent of 90,000 U.S. dams currently generate electricity. A 2012 report from the U.S. Department of Energy found that those dams have 12,000 megawatts (MW) of potential hydroelectric generation capacity. (According to the National Hydropower Association, 1 MW can power 750 to 1,000 homes. That means 12,000 MW should be able to power more than nine million homes.)

As of May 2019, there were projects planned to convert 32 unpowered dams to add 330 MW to the grid over the next several years.

One that was recently completed was the Red Rock Hydroelectric Project, a 60-year-old flood control dam on the Des Moines River in Iowa that was retrofitted in 2014 to generate 36.4 MW at normal reservoir levels, and up to 55 MW at high reservoir levels and flows. It started feeding power to the grid this spring, and is expected to generate enough annually to supply power to 18,000 homes.

It's an approach that advocates say can convert more of the grid from fossil fuels to clean energy, often with a lower cost and environmental impact than building new dams.

Hydroelectric facilities can also be used for energy storage, complementing intermittent clean energy sources such as wind and solar with pumped storage to help maintain a more reliable, resilient grid.

The Nature Conservancy and the World Wildlife Fund are two environmental groups that oppose new hydro dams because they can block fish migration, harm water quality, damage surrounding ecosystems and release methane and CO2, and in some regions, Western Canada drought has reduced hydropower output as reservoirs run low. But they say adding turbines to non-powered dams can be part of a shift toward low-impact hydro projects that can support expansion of solar and wind power.

Paul Norris, president of the Ontario Waterpower Association, said there's typically widespread community support for such projects in his province amid ongoing debate over whether Ontario is embracing clean power in its future plans. "Any time that you can better use existing assets, I think that's a good thing."

New turbine technology means water doesn't need to fall from as great a height to generate power, providing opportunities at sites that weren't commercially viable in the past, Norris said, with recent investments such as new turbines in Manitoba showing what is possible.

In Ontario, about 1,000 unpowered dams are owned by various levels of government. "With the appropriate policy framework, many of these assets have the potential to be retrofitted for small hydro," Norris wrote in a letter to Ontario's Independent Electricity System Operator this year as part of a discussion on small-scale local energy generation resources.

He told CBC that several such projects are already in operation, such as a 950 kW retrofit of the McLeod Dam at the Moira River in Belleville, Ont., in 2008. 

Four hydro stations were going to be added during dam refurbishment on the Trent-Severn Waterway, but they were among 758 renewable energy projects cancelled by Premier Doug Ford's government after his election in 2018, a move examined in an analysis of Ontario's dirtier electricity outlook and its implications.

Patrick Bateman, senior vice-president of Waterpower Canada, said such dam retrofit projects are uncommon in most provinces. "I don't see it being a large part of the future electricity generation capacity."

He said there has been less movement on retrofitting unpowered dams in Canada compared to the U.S., because:

There are a lot more opportunities in Canada to refurbish large, existing hydro-generating stations to boost capacity on a bigger scale.

There's less growth in demand for clean energy, because more of Canada's grid is already non-carbon-emitting (80 per cent) compared to the U.S. (40 per cent).

Even so, Norris thinks Canadians should be looking at all opportunities and options when it comes to transitioning the grid away from fossil fuels, including retrofitting non-powered dams, especially as a recent report highlights Canada's looming power problem over the coming decades.

"If we're going to be serious about addressing the inevitable challenges associated with climate change targets and net zero, it really is an all-of-the-above approach."

 

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Wind and Solar Energy Surpass Coal in U.S. Electricity Generation

Wind and Solar Surpass Coal in U.S. power generation, as EIA data cites falling LCOE, clean energy incentives, grid upgrades, and battery storage driving renewables growth, lower emissions, jobs, and less fossil fuel reliance.

 

Key Points

An EIA-noted milestone where U.S. renewables outproduce coal, driven by lower LCOE, policy credits, and grid upgrades.

✅ EIA data shows wind and solar exceed coal generation

✅ Falling LCOE boosts project viability across the grid

✅ Policies and storage advances strengthen reliability

 

In a landmark shift for the energy sector, wind and solar power have recently surpassed coal in electricity generation in the United States. This milestone, reported by Warp News, marks a significant turning point in the country’s energy landscape and underscores the growing dominance of renewable energy sources.

A Landmark Achievement

The achievement of wind and solar energy generating more electricity than coal is a landmark moment in the U.S. energy sector. Historically, coal has been a cornerstone of electricity production, providing a substantial portion of the nation's power needs. However, recent data reveals a transformative shift, with renewables surpassing coal for the first time in 130 years, as renewable energy sources, particularly wind and solar, have begun to outpace coal in terms of electricity generation.

The U.S. Energy Information Administration (EIA) reported that in recent months, wind and solar combined produced more electricity than coal, including a record 28% share in April, reflecting a broader trend towards cleaner energy sources. This development is driven by several factors, including advancements in renewable technology, decreasing costs, and a growing commitment to reducing greenhouse gas emissions.

Technological Advancements and Cost Reductions

One of the key drivers behind this shift is the rapid advancement in wind and solar technologies, as wind power surges in the U.S. electricity mix across regions. Improvements in turbine and panel efficiency have significantly increased the amount of electricity that can be generated from these sources. Additionally, technological innovations have led to lower production costs, making wind and solar energy more competitive with traditional fossil fuels.

The cost of solar panels and wind turbines has decreased dramatically over the past decade, making renewable energy projects more economically viable. According to Warp News, the levelized cost of electricity (LCOE) from solar and wind has fallen to levels that are now comparable to or lower than coal-fired power. This trend has been pivotal in accelerating the transition to renewable energy sources.

Policy Support and Investment

Government policies and incentives have also played a crucial role in supporting the growth of wind and solar energy, with wind now the most-used renewable electricity source in the U.S. helping drive deployment. Federal and state-level initiatives, such as tax credits, subsidies, and renewable energy mandates, have encouraged investment in clean energy technologies. These policies have provided the financial and regulatory support necessary for the expansion of renewable energy infrastructure.

The Biden administration’s focus on addressing climate change and promoting clean energy has further bolstered the transition. The Infrastructure Investment and Jobs Act and the Inflation Reduction Act, among other legislative efforts, have allocated significant funding for renewable energy projects, grid modernization, and research into advanced technologies.

Environmental and Economic Implications

The surpassing of coal by wind and solar energy has significant environmental and economic implications, building on the milestone when renewables became the second-most prevalent U.S. electricity source in 2020 and set the stage for further gains. Environmentally, it represents a major step forward in reducing carbon emissions and mitigating climate change. Coal-fired power plants are among the largest sources of greenhouse gases, and transitioning to cleaner energy sources is essential for meeting climate targets and improving air quality.

Economically, the shift towards wind and solar energy is creating new opportunities and industries. The growth of the renewable energy sector is generating jobs in manufacturing, installation, and maintenance. Additionally, the decreased reliance on imported fossil fuels enhances energy security and stabilizes energy prices.

Challenges and Future Outlook

Despite the progress, there are still challenges to address. The intermittency of wind and solar power requires advancements in energy storage and grid management to ensure a reliable electricity supply. Investments in battery storage technologies and smart grid infrastructure are crucial for overcoming these challenges and integrating higher shares of renewable energy into the grid.

Looking ahead, the trend towards renewable energy is expected to continue, with renewables projected to soon provide about one-fourth of U.S. electricity as deployment accelerates, driven by ongoing technological advancements, supportive policies, and a growing commitment to sustainability. As wind and solar power become increasingly cost-competitive and efficient, their role in the U.S. energy mix will likely expand, further displacing coal and other fossil fuels.

Conclusion

The surpassing of coal by wind and solar energy in U.S. electricity generation is a significant milestone in the transition to a cleaner, more sustainable energy future. This achievement highlights the growing importance of renewable energy sources and the success of technological advancements and supportive policies in driving this transition. As the U.S. continues to invest in and develop renewable energy infrastructure, the move away from coal represents a crucial step towards achieving environmental goals and fostering economic growth in the clean energy sector.

 

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