Algonquin Power & Utilities Corp. Completes Acquisition of The Empire District Electric Company


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Algonquin Power & Utilities Empire acquisition expands Liberty Utilities' regulated footprint in U.S., adds Empire District Electric, increases 2,500 MW capacity, boosts dividend growth prospects, and delivers accretive cash flows in a Cdn$3.2 billion merger.

 

Key Points

A Cdn$3.2 billion Liberty Utilities deal to acquire Empire District Electric, expanding U.S. regulated operations.

✅ Purchase price Cdn$3.2B incl. US$0.8B debt; US$34 per share

✅ Empire delisted from NYSE; now a Liberty Utilities subsidiary

✅ Deal adds scale, 2,500 MW capacity, supports 10% dividend growth

 

Algonquin Power & Utilities Corp. announced today that a subsidiary of Liberty Utilities Co. ("Liberty Utilities"), APUC's wholly-owned regulated utility business, successfully completed its acquisition of The Empire District Electric Company ("Empire"), amid the Hydro One-Avista backlash around U.S. utility takeovers, for an aggregate purchase price of approximately Cdn$3.2 billion (the "Transaction"). Empire is now a wholly-owned subsidiary of Liberty Utilities and will cease to be a publicly-held corporation.

With the closing of the Transaction, APUC has materially expanded its utility operations in the United States. APUC, through its 2,200 employees, now serves over 782,000 electric, gas, and water customers within its regulated utility business, and APUC's portfolio of power generating facilities now contains both regulated and non-regulated power facilities, as peers such as Duke Energy's renewables push indicate across the sector, with a total capacity of over 2,500 MW.

"Empire is highly complementary to the scope of our current operations, brings valuable scale to our existing utility business, and adds further support to our annual dividend growth target of 10% through significant accretion to per share cash flows and earnings," said Ian Robertson, Chief Executive Officer of APUC. "The APUC and Empire teams have worked diligently to successfully bring our companies together, and we are excited about the many opportunities that our newly expanded platform brings to our growth prospects in North America, where outcomes like the CPUC ruling favoring community energy are reshaping markets."

As previously announced, and in a landscape where Hydro One-Avista deal rejected highlighted regulatory risk, Empire's shareholders will receive US$34.00 per common share which, including the assumption of approximately US$0.8 billion of debt at closing, represents an aggregate purchase price of approximately US$2.3 billion (Cdn$3.2 billion).

As a result of the closing, Empire's common stock is being delisted from the New York Stock Exchange. Empire shareholders will be provided with instructions on how to receive the merger consideration for their shares by Wells Fargo, in its capacity as paying agent for the transaction, even as proceedings like El Paso Electric's 2017 Texas rate case continue to draw attention.

APUC will issue shortly a final instalment notice (the "Final Instalment Notice") notifying holders of its 5% convertible unsecured subordinated debentures ("Debentures") represented by instalment receipts of the date for payment of the final instalment (the "Final Instalment Date"), which shall not be less than 15 days nor more than 90 days following the date of such notice in accordance with the terms of the instalment receipts. Additional details will be set out in the Final Instalment Notice regarding, among other things, the right of holders of Debentures who have paid the final instalment to receive a make-whole payment and to convert their Debentures into APUC common shares.

 

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Coal CEO blasts federal agency's decision on power grid

FERC Rejects Trump Coal Plan, denying subsidies for coal-fired and nuclear plants as energy policy shifts toward natural gas and renewables, citing no grid reliability threat and warning about electricity prices and market impacts.

 

Key Points

FERC unanimously rejected subsidies for coal and nuclear plants, finding no grid reliability risk from retirements.

✅ Unanimous FERC vote rejects coal and nuclear compensation

✅ Cites no threat to grid reliability from plant retirements

✅ Opponents warned subsidies would distort power markets and prices

 

A decision by an independent energy agency to reject the Trump administration’s electricity pricing plan to bolster the coal industry could lead to more closures of coal-fired power plants and the loss of thousands of jobs, a top coal executive said Tuesday.

Robert Murray, CEO of Ohio-based Murray Energy Corp., called the action by the Federal Energy Regulatory Commission “a bureaucratic cop-out” that will raise the cost of electricity and jeopardize the reliability and security of the nation’s electric grid.

“While FERC commissioners sit on their hands and refuse to take the action directed by Energy Secretary Rick Perry and President Donald Trump, the decommissioning of more coal-fired and nuclear plants could result, further jeopardizing the reliability, resiliency and security of America’s electric power grids,” Murray said. “It will also raise the cost of electricity for all Americans.”

The five-member energy commission voted unanimously Monday to reject Trump’s plan to reward nuclear and coal-fired power plants for adding reliability to the nation’s power grid. The plan would have made the plants eligible for billions of dollars in government subsidies and help reverse a tide of bankruptcies and loss of market share suffered by the once-dominant coal industry as utilities' shift to natural gas and renewable energy continues.

The Republican-controlled commission said there’s no evidence that any past or planned retirements of coal-fired power plants pose a threat to reliability of the nation’s electric grid.

Murray disputed that and said the recent cold snap that hit the East Coast showed coal’s value, as power users in the Southeast were asked to cut back on electricity usage because of a shortage of natural gas. “If it were not for the electricity generated by our nation’s coal-fired and nuclear power plants, we would be experiencing massive brownouts risk and blackouts in this country,” he said.

Murray Energy is the largest privately owned coal company in the United States, with mining operations in Ohio, Illinois, Kentucky, Utah and West Virginia. Robert Murray, a Trump friend and political supporter, has been pushing hard for federal assistance for his industry. The Associated Press reported last year that Murray asked the Trump administration to issue an emergency order protecting coal-fired power plants from closing. Murray warned that failure to act could cause thousands of coal miners to be laid off and force his largest customer, Ohio-based FirstEnergy Solutions, into bankruptcy.

Perry ultimately rejected Murray’s request, but later asked energy regulators to boost coal and nuclear plants as the administration moved to replace the Clean Power Plan with a more limited approach.

The plan drew widespread opposition from business and environmental groups that frequently disagree with each other, even as some coal and business interests backed the EPA's Affordable Clean Energy rule in court.

Jack Gerard, president and CEO of the American Petroleum Institute, said Tuesday that the Trump plan was “far too narrow” in its focus on power sources that maintain a 90-day fuel supply.

API, the largest lobbying group for oil and gas industry, supports coal and other energy sources, Gerard said, “but we should not put our eggs in an individual basket defined as a 90-day fuel supply (while) unnecessarily intervening in private markets.”

 

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French Price-Fixing Probe: Schneider, Legrand, Rexel, and Sonepar Fined

French Antitrust Fines for Electrical Cartel expose price fixing by Schneider Electric, Legrand, Rexel, and Sonepar, after a Competition Authority probe into electrical distribution, collusion, and compliance breaches impacting market competition and customers.

 

Key Points

Penalties on Schneider Electric, Legrand, Rexel, and Sonepar for electrical price fixing, upholding competition law.

✅ Competition Authority fined four major suppliers.

✅ Collusion raised prices across construction and industry.

✅ Firms bolster compliance programs and training.

 

In a significant crackdown on corporate malfeasance, French authorities have imposed hefty fines on four major electrical equipment companies—Schneider Electric, Legrand, Rexel, and Sonepar—after concluding a price-fixing investigation. The total fines amount to approximately €500 million, underscoring the seriousness with which regulators are addressing anti-competitive practices in the electrical distribution sector, even as France advances a new electricity pricing scheme to address EU concerns.

Background of the Investigation

The probe, initiated by France’s Competition Authority, sought to uncover collusion among these leading firms regarding the pricing of electrical equipment and services between 2005 and 2012. This investigation is part of a broader initiative to promote fair competition within the market, as Europe prepares to revamp its electricity market to bolster transparency, ensuring that consumers and businesses alike benefit from competitive pricing and innovative products.

The inquiry revealed that these companies had engaged in illicit agreements to fix prices and coordinate their market strategies, limiting competition in a sector critical to both the economy and infrastructure. The findings indicated that the collusion not only stifled competition but also led to inflated prices for customers, illustrating why rolling back electricity prices is often more complex than it appears for customers across various sectors, from construction to manufacturing.

The Fines Imposed

Following the conclusion of the investigation, the fines levied against the companies were substantial. Schneider Electric faced the largest penalty, receiving a fine of €220 million, while Legrand was fined €150 million. Rexel and Sonepar were each fined €70 million and €50 million, respectively. These financial penalties serve as a deterrent to other companies that might consider engaging in similar practices, reinforcing the message that anti-competitive behavior will not be tolerated.

The fines are particularly significant given the size and influence of these companies within the electrical equipment market. Their combined revenues amount to billions of euros annually, making the repercussions of their actions far-reaching. As major players in the industry, their pricing strategies have a direct impact on numerous sectors, from residential construction to large-scale industrial projects.

Industry Reactions

The response from the affected companies has varied. Schneider Electric expressed its commitment to compliance and transparency, acknowledging the importance of adhering to competition laws, amid ongoing EU electricity reform debates that influence market expectations.

Legrand also emphasized its commitment to fair competition, noting that it has taken steps to enhance its compliance framework in response to the investigation. Rexel and Sonepar similarly reaffirmed their dedication to ethical business practices and their intention to cooperate with regulators in the future.

Industry experts have pointed out that these fines, while significant, may not be enough to deter large corporations from engaging in similar behavior unless accompanied by a broader cultural shift within the industry. There is a growing call for enhanced oversight and stricter penalties to ensure that companies prioritize ethical conduct over short-term profits.

Implications for the Market

The fines imposed on Schneider, Legrand, Rexel, and Sonepar could have broader implications for the electrical equipment market and beyond. They signal to other companies within the sector that regulatory bodies are vigilant, even as nine EU countries oppose electricity market reforms proposed as fixes for price spikes, and willing to take decisive action against anti-competitive practices. This could foster a more competitive environment, ultimately benefiting consumers through better prices and enhanced product offerings.

Moreover, the case highlights the importance of regulatory bodies in maintaining fair market conditions. As industries evolve, ongoing vigilance from competition authorities will be necessary to prevent similar instances of collusion and ensure that markets remain competitive and innovative, as seen when New York opened a formal review of retail energy markets.

The recent fines imposed on Schneider Electric, Legrand, Rexel, and Sonepar mark a significant moment in France's ongoing battle against corporate price-fixing and anti-competitive practices, occurring as the government and EDF reached a deal on electricity prices to balance market pressures. With total penalties exceeding €500 million, the investigation underscores the commitment of French authorities to uphold market integrity and protect consumer interests.

As the industry reflects on these developments, it remains crucial for companies to prioritize compliance and ethical business practices. The ultimate goal is to create an environment where competition thrives, innovation flourishes, and consumers benefit from fair pricing. This case serves as a reminder that transparency and accountability are vital in maintaining the health of any market, particularly one as essential as the electrical equipment sector.

 

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China, Cambodia agree to nuclear energy cooperation

Cambodia-CNNC Nuclear Energy MoU advances peaceful nuclear cooperation, human resources development, and Belt and Road ties, targeting energy security and applications in medicine, agriculture, and industry across ASEAN under IAEA-guided frameworks.

 

Key Points

A pact to expand peaceful nuclear tech and skills, boosting Cambodia's energy, healthcare under ASEAN and Belt and Road.

✅ Human resources development and training pipelines

✅ Peaceful nuclear applications in medicine, agriculture, industry

✅ Aligns with IAEA guidance, ASEAN links, Belt and Road goals

 

Cambodia has signed a memorandum of understanding with China National Nuclear Corporation (CNNC) on cooperation in the peaceful use of nuclear energy. The agreement calls for cooperation on human resources development.

The agreement was signed yesterday by CNNC chief accountant Li Jize and Tekreth Samrach, Cambodia's secretary of state of the Office of the Council of Ministers and vice chairman of the Cambodian Commission on Sustainable Development. It was signed during the 14th China-ASEAN Expo and China-ASEAN Business and Investment Summit, being held in Nanning, the capital of China's Guangxi province.

The signing was witnessed by Cambodia's minister of commerce and other government officials, CNNC said.

"This is another important initiative of China National Nuclear Corporation in implementing the 'One Belt, One Road' strategy as China's nuclear program continues to advance and strengthening cooperation with ASEAN countries in international production capacity, laying a solid foundation for follow-up cooperation between the two countries," CNNC said.

One Belt, One Road is China's project to link trade in about 60 Asian and European countries along a new Silk Road, even as Romania ended talks with a Chinese partner in a separate nuclear project.

CNNC noted that Cambodia's current power supply cannot meet its basic electricity needs, while sectors including medicine, agriculture and industry require a "comprehensive upgrade". It said Cambodia has great market potential for nuclear power and nuclear technology applications.

On 14 August, CNNC vice president Wang Jinfeng met with Tin Ponlok, secretary general of Cambodia's National Council for Sustainable Development, to consult on the draft MOU. Cambodia's Ministry of Environment said these discussions focused on human resources in nuclear power for industrial development and environmental protection.

In late August, CNNC president Qian Zhimin visited Cambodia and met Say Chhum, president of the Senate of Cambodia. Qian noted that CNNC will support Cambodia in applying nuclear technologies in industry, agriculture and medical science, thus developing its economy and improving the welfare of the population. Cambodia can start training workers, promoting new energy exploitation as India's nuclear revival progresses in Asia, and infrastructure construction, and increasing its capabilities in scientific research and industrial manufacturing, he said. This will help the country achieve its long-term goal of the peaceful use of nuclear energy, he added.

In November 2015, Russian state nuclear corporation Rosatom signed a nuclear cooperation agreement with Cambodia, focused on a possible research reactor, but with consideration of nuclear power, while KHNP in Bulgaria illustrates parallel developments in Europe. A further cooperation agreement was signed in March 2016, and in May Rosatom and the National Council for Sustainable Development signed memoranda to establish a nuclear energy information centre in Cambodia and set up a joint working group on the peaceful uses of atomic energy.

In mid-2016, Cambodia's Ministry of Industry, Mines and Energy held discussions with CNNC on building a nuclear power plant and establishing the regulatory and legal infrastructure for that, in collaboration with the International Atomic Energy Agency, mirroring IAEA assistance in Bangladesh on nuclear development.

 

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New Rules for a Future Puerto Rico Microgrid Landscape

Puerto Rico Microgrid Regulations outline renewable energy, CHP, and storage standards, enabling islanded systems, PREPA interconnection, excess energy sales, and IRP alignment to boost resilience, distributed resources, and community power across the recovering grid.

 

Key Points

Rules defining microgrids, requiring 75 percent renewables or CHP, and setting interconnection and PREPA fee frameworks.

✅ 75 percent renewables or CHP; hybrids allowed

✅ Registration, engineer inspection, and annual generation reports

✅ PREPA interconnection fees; excess energy sales permitted

 

The Puerto Rico Energy Commission unveiled 29 pages of proposed regulations last week for future microgrid installations on the island.

The regulations, which are now open for 30 days of public comment, synthesized pages of responses received after a November 10 call for recommendations. Commission chair José Román Morales said it’s the most interest the not-yet four-year-old commission has received during a public rulemaking process.

The goal was to sketch a clearer outline for a tricky-to-define concept -- the term "microgrid" can refer to many types of generation islanded from the central grid -- as climate pressures on the U.S. grid mount and more developers eye installations on the recovering island.

“There’s not a standard definition of what a microgrid is, not even on the mainland,” said Román Morales.

According to the commission's regulation, “a microgrid shall consist, at a minimum, of generation assets, loads and distribution infrastructure. Microgrids shall include sufficient generation, storage assets and advanced distribution technologies, including advanced inverters, to serve load under normal operating and usage conditions.”

All microgrids must be renewable (with at least 75 percent of power from clean energy), combined heat and power (CHP) or hybrid CHP-and-renewable systems. The regulation applies to microgrids controlled and owned by individuals, customer cooperatives, nonprofit and for-profit companies, and cities, but not those owned by the Puerto Rico Electric Power Authority (PREPA). Owners must submit a registration application for approval, including a certification of inspection from a licensed electric engineer, and an annual fuel, generation and sales report that details generation and fuel source, as well as any change in the number of customers served.

Microgrids, like the SDG&E microgrid in Ramona in California, can interconnect with the PREPA system, but if a microgrid will use PREPA infrastructure, owners will incur a monthly fee. That amounts to $25 per customer up to a cap of $250 per month for small cooperative microgrids. The cost for larger systems is calculated using a separate, more complex equation. Operators can also sell excess energy back to PREPA.

 

Big goals for the island's future grid

In total, 53 groups and companies, including Sunnova, AES, the Puerto Rico Solar Energy Industries Association (PR-SEIA), the Advanced Energy Management Alliance (AEMA), and the New York Smart Grid Consortium, submitted their thoughts about microgrids or, in many cases, broader goals for the island’s future energy system. It was a quick turnaround: The Puerto Rico Energy Commission offered a window of just 10 days to submit advice, although the commission continued to accept comments after the deadline.

“PREC wanted the input as fast as possible because of the urgency,” said AES CEO Chris Shelton.

AES’ plan includes a network of “mini-grids” that could range in size from several megawatts to one large enough to service the entire city of San Juan.

“The idea is, you connect those to each other with transmission so they can have a co-optimized portfolio effect and lower the overall cost,” said Shelton. “But they would be largely autonomous in a situation where the tie-lines between them were broken.”

According to estimates provided in AES’ filing, utility-scale solar installations over 50 megawatts on the island could cost between $40 and $50 per megawatt-hour. Those prices make solar located near load centers an economic alternative to the island’s fossil-fuel generating plants. The utility’s analysis showed that a 10,000-megawatt solar system could replace 12,000 gigawatt-hours of fossil generation, with 25 gigawatt-hours of battery storage leveling out load throughout the day. Puerto Rico’s peak load is 3,000 megawatts.

In other filings, PR-SEIA urged a restructuring of FEMA funds so they’re available for microgrid development. GridWise Alliance wrote that plans should consider cybersecurity, and AEMA recommended the commission develop an integrated resource plan (IRP) that includes distributed energy resources, microgrids and non-wires alternatives.

 

An air of optimism, though 1.5 million are still without power

After the commission completes the microgrid rulemaking, a new IRP is next on the commission’s to-do list. PREPA must file that plan in July, and regulators are working furiously to make sure it incorporates the recent flood of rebuilding recommendations from the energy industry.

Though the commission has the final say when it comes to approval of the plan, PREPA will lead the IRP process. The utility’s newly formed Transformation Advisory Council (TAC), a group of 11 energy experts, will contribute.

With that group, along with New York’s Resiliency Working Group, lessons from California's grid transition, the Energy Commission, the utility itself, and the dozens of other clean energy experts and entrepreneurs who want to offer their two cents, the energy planning process has a lot of moving parts. But according to Julia Hamm, CEO of the Smart Electric Power Alliance and a member of both the Energy Resiliency Working Group and the TAC, those working to establish standards for Puerto Rico’s future are hitting their stride.

“Certainly over the past three months, it has been a bit of a challenge to ensure that everybody has been coordinating efforts. Just over the past couple of weeks, we’ve seen some good progress on that front. We’re starting to see a lot more communication,” she said, adding that an air of optimism has settled on the process. “The key stakeholders all have a very common vision for Puerto Rico when it comes to the power sector.”

Nisha Desai, a PREPA board member who is liaising with the TAC, affirmed that collaborators are on the same page. “Everyone is violently in agreement that the future of Puerto Rico involves renewables, microgrids and distributed generation,” she said.

The TAC will hold its first in-person meeting in mid-January, and has already consulted with the utility on its formal fiscal plan submission, due January 10.

Though many taking part in the process feel the once-harried recovery is beginning to adopt a more organized approach, Desai acknowledges that “there are a lot of people in Puerto Rico who feel forgotten.”

Puerto Rico’s current generation sits at just 72.6 percent, in a nation facing longer, more frequent outages due to extreme weather. The government recently offered its first estimate that about half the island, 1.5 million residents, remains without power.

In late December and into January, 1,500 more crewmembers from 18 utilities in states as far flung as Minnesota, Missouri and Arizona will land on the island to aid further restoration through mutual aid agreements.

“The system is getting up to speed, getting to 100 percent, but there’s still some instability,” said Román Morales. “Right now it’s a matter of time.”

 

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EVs could drive 38% rise in US electricity demand, DOE lab finds

EV-Driven Electricity Demand Growth will reshape utilities through electrification, EV adoption, grid modernization, and ratebasing of charging, as NREL forecasts rising terawatt-hours, CAGR increases, and demand-side flexibility to manage emissions and reliability.

 

Key Points

Growth in power consumption fueled by EV adoption and electrification, increasing utility sales and grid investment.

✅ NREL projects 20%-38% higher U.S. load by 2050

✅ Utilities see CAGR up to 1.6% and 80 TWh/year growth

✅ Demand-side flexibility and EV charging optimize grids

 

Utilities have struggled with flat demand for years, but analysis by the National Renewable Energy Laboratory predicts steady growth across the next three decades — largely driven by the adoption of electric vehicles, including models like the Tesla Model 3 that are reshaping expectations.

The study considers three scenarios, a reference case and medium- and high-adoption electrification predictions. All indicate demand growth, but in the medium and high scenarios for 2050, U.S. electricity consumption increases by 20% and 38%, respectively, compared to business as usual.

Utilities could go from stagnant demand to compound annual growth rates of 1.6%, which would amount to sustained absolute growth of 80 terawatt-hours per year.

"This unprecedented absolute growth in annual electricity consumption can significantly alter supply-side infrastructure development requirements," the report says, and could challenge state power grids in multiple regions.

NREL's Trieu Mai, principal investigator for the study, cautions that more research is needed to fully assess the drivers and impacts of electrification, "as well as the role and value of demand-side flexibility."

"Although we extensively and qualitatively discuss the potential drivers and barriers behind electric technology adoption in the report, much more work is needed to quantitatively understand these factors," Mai said in a statement.

However, utilities have largely bought into the dream.

"Electric vehicles are the biggest opportunity we see right now," Energy Impact Partners CEO Hans Kobler told Utility Dive. And the impact could go beyond just higher kilowattt-hour sales, particularly as electric truck fleets come online.

"When the transportation sector is fully electrified, it will result in around $6 trillion in investment," Kobler said. "Half of that is on the infrastructure side of the utility." And the industry can also benefit through ratebasing charging stations and managing the new demand.

One benefit that NREL's report points to is the possibility of "expanded value streams enabled by electric and/or grid-connected technologies," such as energy storage and mobile chargers that enhance flexibility.

"Many electric utilities are carefully watching the trend toward electrification, as it has the potential to increase sales and revenues that have stagnated or fallen over the past decade," the report said, highlighting potential benefits for all customers as adoption grows. "Beyond power system planning, other motivations to study electrification include its potential to impact energy security, emissions, and innovation in electrical end-use technologies and overall efficient system integration. The impacts of electrification could be far-reaching and have benefits and costs to various stakeholders."

 

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Maryland opens solar-power subscriptions to all

Maryland Community Solar Program enables renters and condo residents to subscribe to offsite solar, earn utility bill discounts, and support projects across BGE, Pepco, Delmarva, and Potomac Edison territories, with low to moderate income participation.

 

Key Points

A pilot allowing residents to subscribe to offsite solar and get bill credits and savings, regardless of home ownership.

✅ 5-10 percent discounts on standard utility rates

✅ Available in BGE, Pepco, Delmarva, Potomac Edison areas

✅ Includes low and moderate income subscriber carve-outs

 

Maryland has launched a pilot program that will allow anyone to power their home with solar panels — even if they are renters or condo-dwellers, or live in the shade of trees.

Solar developers are looking for hundreds of residents to subscribe to six power projects planned across the state, including recently announced sites in Owings Mills and Westminster. Their offers include discounts on standard electric rates.

The developers need a critical mass of customers who are willing to buy the projects’ electricity before they can move forward with plans to install solar panels on about 80 acres. Under state rules, the customer base must include low- and moderate-income residents, many of whom face energy insecurity challenges.

The idea of the community solar program is to tap into the pool of residential customers who don’t want to get their energy from fossil fuels but currently have no way to switch to a cleaner alternative.

That could significantly expand demand for solar projects, said Gary Skulnik, a longtime Maryland solar entrepreneur.

Skulnik is now CEO of Neighborhood Sun, a company recruiting customers for the six projects.

“You’re signing up for a project that won’t exist unless we get enough subscribers,” Skulnik said. “You’re actually getting a new project built.”

It could also stoke simmering conflicts over what sort of land is appropriate for solar development.

The General Assembly authorized the community solar pilot program in 2015. But not-in-my-backyard opposition and concerns about the loss of agricultural land have slowed progress.

Community solar could force more communities to confront those sorts of clashes — and to consider more carefully where solar farms belong.

“We are going to see a lot more solar development in the state,” said Megan Billingsley, assistant director of the Valleys Planning Council in Baltimore County. “One of the things we haven’t seen is any direction or thoughtful planning on where we want to see solar development.”

The General Assembly authorized about 200 megawatts in community solar projects — enough to power about 40,000 households — over three years.

Customers can sign up for projects built within the territory of their electric utility. About half of that solar energy load has been allotted for the region served by Baltimore Gas and Electric Co.

By subscribing to a community solar project, customers won’t actually be getting their electricity from its photovoltaic panels. But their payments will help finance it and, in some cases, complementary battery storage solutions as well.

The Public Service Commission has approved six projects so far: Two in BGE territory, in Owings Mills and near Westminster; one in Pepco territory, in Prince George’s County; two in Delmarva Power and Light territory, in Caroline and Worcester counties; and one in Potomac Edison territory, in Washington County where planning officials have developed proposed recommendations.

More projects are expected to win approval in the next two years.

But none of them can be built unless they catch on with electricity customers. The developers are looking for 2,600 customers statewide.

Skulnik would not say how many customers an individual project needs to get the green light. But he said that the Prince George’s proposal, a 25-acre array atop a Fort Washington landfill is the closest, with about 100 subscribers so far.

The terms of subscription vary by project, but discounts range from 5 percent to 10 percent off utility rates. Customers are asked to commit to the projects for as long as 25 years. (They can break the contracts with advance notice, or if they move to a different utility service area.)

Maryland joins more than a dozen states in advancing community solar projects, as scientists work to improve solar and wind power technology.

Corey Ramsden is an executive for Solar United Neighbors, a nonprofit that promotes the solar industry in eight states and the District of Columbia.

He said potential customers are often confused by the mechanics of subscribing to community solar, or hesitant to commit for years or even decades. The industry is working to answer questions and get people more comfortable with the idea, he said.

But it has been a challenge across the country, including debates over New England grid upgrades, and in Maryland. Advocates for solar say there is broad support for renewable energy generation. The state has set goals to increase green energy use and reduce greenhouse gas emissions.

Still, many Marylanders don’t welcome the reality when a project attempts to move in.

Rural land is often the most desirable for solar developers, because it requires the least effort to prepare for an array of panels. But community groups in those areas have asked whether land historically used for farming is right for a more industrial use.

“People are very much in favor of going for a lot more renewables, for whatever reason,” said Dru Schmidt-Perkins, the former president of the land conservation group 1,000 Friends of Maryland. “That support comes to a screeching halt when land that is perceived to be valuable for other things, whether a historic view­shed or farming, suddenly becomes a target of a location for this new project.”

Such concerns have at least temporarily stalled the momentum for solar across the state. Anne Arundel County had at least five small community solar projects in the pipeline in December when officials decided to pause development for eight months. Baltimore County officials imposed a four-month moratorium on solar development before passing an ordinance last year to limit the size and number of solar farms.

Billingsley said the Valley Plannings Council, which advocates for historic and rural areas in western Baltimore County, is frustrated that there hasn’t been more discussion about which areas the county should target for solar development — and which it shouldn’t.

She said she fears that pressure to expand solar farms across rural lands is only going to grow as community solar projects launch, and as lawmakers in Annapolis talk about more policies to promote investment in renewable energy.

Schmidt-Perkins called community solar “an amazing program” for those who would install solar panels on their roofs if they could. But she said its launch heightens the importance of discussions about a broader solar strategy.

“Most communities are caught a little flat-footed on this and are somewhat at the mercy of an industry that’s chomping at the bit,” she said. “It’s time for Maryland to say, ‘Okay, let’s come up with our plan so that we know how much solar can we really generate in this state on lands that are not conflict-based.’”

 

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