Data Center Boom Poses a Power Challenge for U.S. Utilities

California clean electricity accelerates with renewables as solar and wind surge, battery storage strengthens grid resilience, natural gas declines, and coal fades, advancing SB 100 targets, carbon neutrality goals, and affordable, reliable power statewide.

Key Points

California clean electricity is the state's transition to renewable, zero-carbon power, scaling solar, wind and storage.

✅ Solar generation up nearly 20x since 2012

✅ Natural gas power down 20%; coal nearly phased out

✅ Battery storage shifts daytime surplus to evening demand

Data from the California Energy Commission (CEC) highlight California’s continued progress toward building a more resilient grid, achieving 100 percent clean electricity and meeting the state’s carbon neutrality goals.

Analysis of the state’s Total System Electric Generation report shows how California’s power mix has changed over the last decade. Since 2012:

Solar generation increased nearly twentyfold from 2,609 gigawatt-hours (GWh) to 48,950 GWh.

• Wind generation grew by 63 percent.
• Natural gas generation decreased 20 percent.
• Coal has been nearly phased-out of the power mix, and renewable electricity surpassed coal nationally in 2022 as well.

In addition to total utility generation, rooftop solar increased by 10 times generating 24,309 GWh of clean power in 2022. The state’s expanding fleet of battery storage resources also help support the grid by charging during the day using excess renewable power for use in the evening.

“This latest report card showing how solar energy boomed as natural gas powered electricity experienced a steady 20 percent decline over the last decade is encouraging,” said CEC Vice Chair Siva Gunda. “Even as climate impacts become increasingly severe, California remains committed to transitioning away from polluting fossil fuels and delivering on the promise to build a future power grid that is clean, reliable and affordable.”

Senate Bill 100 (2018) requires 100 percent of California’s electric retail sales be supplied by renewable and zero-carbon energy sources by 2045. To keep the state on track, last year Governor Gavin Newsom signed SB 1020, establishing interim targets of 90 percent clean electricity by 2035 and 95 percent by 2040.

The state monitors progress through the Renewables Portfolio Standard (RPS), which tracks the power mix of retail sales, and regional peers such as Nevada's RPS progress offer useful comparison. The latest data show that in 2021 more than 37 percent of the state’s electricity came from RPS-eligible sources such as solar and wind, an increase of 2.7 percent compared to 2020. When combined with other sources of zero-carbon energy such as large hydroelectric generation and nuclear, nearly 59 percent of the state’s retail electricity sales came from nonfossil fuel sources.

The total system electric generation report is based on electric generation from all in-state power plants rated 1 megawatt (MW) or larger and imported utility-scale power generation. It reflects the percentage of a specific resource compared to all power generation, not just retail sales. The total system electric generation report accounts for energy used for water conveyance and pumping, transmission and distribution losses and other uses not captured under RPS.

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Ontario Ultra-Low Overnight Electricity Rates cut costs for shift workers and EV charging, with time-of-use pricing, off-peak savings, on-peak premiums, kilowatt-hour details, and Ontario Energy Board guidance for homes and businesses across participating utilities.

Key Points

Ontario's ultra-low overnight plan: 2.4c/kWh 11pm-7am for EVs, shift workers; higher daytime on-peak pricing.

✅ 2.4c/kWh 11pm-7am; 24c/kWh on-peak 4pm-9pm

✅ Best for EV charging, shift work, night usage

✅ Available provincewide by Nov 1 via local utilities

The Ontario government is introducing a new ultra-low overnight price plan that can benefit shift workers and individuals who charge electric vehicles while they sleep.

Speaking at a news conference on Tuesday, Energy Minister Todd Smith said the new plan could save customers up to $90 a year.

“Consumer preferences are still changing and our government realized there was more we could do, especially as the province continues to have an excess supply of clean electricity at night when province-wide electricity demand is lower,” Smith said, noting a trend underscored by Ottawa's demand decline during the pandemic.

The new rate, which will be available as an opt-in option as of May 1, will be 2.4 cents per kilowatt-hour from 11 p.m. to 7 a.m. Officials say this is 67 per cent lower than the current off-peak rate, which saw a off-peak relief extension during the pandemic.

However, customers should be aware that this plan will mean a higher on-peak rate, as unlike earlier calls to cut peak rates, Hydro One peak charges remained unchanged for self-isolating customers.

The new plan will be offered by Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution, and Sioux Lookout Hydro by May. Officials have said this will be expanded to all local distribution companies by Nov. 1.

With the new addition of the “ultra low” pricing, there are now three different electricity plans that Ontarians can choose from. Here is what you have to know about the new hydro options:

TIME OF USE:
Most residential customers, businesses and farms are eligible for these rates, similar to BC Hydro time-of-use proposals in another province, which are divided into off-peak, mid-peak and on-peak hours.

This is what customers will pay as of May 1 according to the Ontario Energy Board, following earlier COVID-19 electricity relief measures that temporarily adjusted rates:

 Off-peak (Weekdays between 7 p.m. and 7 a.m. and on weekends/holidays): 7.4 cents per kilowatt-hour
 Mid-Peak (Weekdays between 7 a.m. and 11 a.m., and between 5 p.m. and 7 p.m.): 10.2 cents per kilowatt-hour
 On-Peak ( Weekdays 11 a.m. to 5 p.m.): 15.1 cents per kilowatt-hour

TIERED RATES
This plan allows customers to get a standard rate depending on how much electricity is used. There are various thresholds per tier, and once a household exceeds that threshold, a higher price applies. Officials say this option may be beneficial for retirees who are home often during the day or those who use less electricity overall.

The tiers change depending on the season. This is what customers will pay as of May 1:

 Residential households that use 600 kilowatts of electricity per month and non-residential businesses that use 750 kilowatts per month: 8.7 cents per kilowatt-hour.
 Residences and businesses that use more than that will pay a flat rate of 10.3 cents per kilowatt-hour

ULTRA-LOW OVERNIGHT RATES
Customers can opt-in to this plan if they use most of their electricity overnight.

This is what customers will pay as of May 1:

•  Between 11 p.m. and 7 a.m.: 2.4 cents per kilowatt-hour
•  Weekends and holidays between 7 a.m. and 11 p.m.: 7.4 cents per kilowatt-hour
•  Mid-Peak (Weekdays between 7 a.m. and 4 p.m., and between 9 p.m. and 11 p.m.): 10.2 cents per kilowatt-hour
•  On-Peak (weekdays between 4 p.m. and 9 p.m.): 24 cents per kilowatt-hour

More information on these plans can be found on the Ontario Energy Board website, alongside stable pricing for industrial and commercial updates from the province.

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B.C. EV Electrification 2055 projects grid capacity needs doubling to 37 GW, driven by electric vehicles, renewable energy expansion, wind and solar generation, limited natural gas, and policy mandates for zero-emission transportation.

Key Points

A projection that electrifying all B.C. road transport by 2055 would more than double grid demand to 37 GW.

✅ Site C adds 1.1 GW; rest from wind, solar, limited natural gas.

✅ Electricity price per kWh rises 9%, but fuel savings offset.

✅ Significant GHG cuts with 93% renewable grid under Clean Energy Act.

Researchers at the University of Victoria say that if B.C. were to shift to electric power for all road vehicles by 2055, the province would require more than double the electricity now being generated.

The findings are included in a study to be published in the November issue of the Applied Energy journal.

According to co-author and UVic professor Curran Crawford, the team at the university's Pacific Institute for Climate Solutions took B.C.'s 2015 electrical capacity of 15.6 gigawatts as a baseline, and added projected demands from population and economic growth, then added the increase that shifting to electric vehicles would require, while acknowledging power supply challenges that could arise.

They calculated the demand in 2055 would amount to 37 gigawatts, more than double 15.6 gigawatts used in 2015 as a baseline, and utilities warn of a potential EV charging bottleneck if demand ramps up faster than infrastructure.

"We wanted to understand what the electricity requirements are if you want to do that," he said. "It's possible — it would take some policy direction."

B.C. announces $4M in rebates for home and work EV charging stations across the province
The team took the planned Site C dam project into account, but that would only add 1.1 gigawatts of power. So assuming no other hydroelectric dams are planned, the remainder would likely have to come from wind and solar projects and some natural gas.

"Geothermal and biomass were also in the model," said Crawford, adding that they are more expensive electricity sources. "The model we were using, essentially, we're looking for the cheapest options."
Wind turbines on the Tantramar Marsh between Nova Scotia and New Brunswick tower over the Trans-Canada Highway. If British Columbia were to shift to 100 per cent electric-powered ground transportation by 2055, the province would have to significantly increase its wind and solar power generation. (Eric Woolliscroft/CBC)
The electricity bill, per kilowatt hour, would increase by nine per cent, according to the team's research, but Crawford said getting rid of the gasoline and diesel now used to fuel vehicles could amount to an overall cost saving, especially when combined with zero-emission vehicle incentives available to consumers.

The province introduced a law this year requiring that all new light-duty vehicles sold in B.C. be zero emission by 2040, while the federal 2035 EV mandate adds another policy signal, so the researchers figured 2055 was a reasonable date to imagine all vehicles on the road to be electric.

Crawford said hydrogen-powered vehicles weren't considered in the study, as the model used was already complicated enough, but hydrogen fuel would actually require more electricity for the electrolysis, when compared to energy stored in batteries.

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The study also found that shifting to all-electric ground transportation in B.C. would also mean a significant decrease in greenhouse gas emissions, assuming the Clean Energy Act remains in place, which mandates that 93 per cent of grid electricity must come from renewable resources, whereas nationally, about 18 per cent of electricity still comes from fossil fuels, according to 2019 data. 

"Doing the electrification makes some sense — If you're thinking of spending some money to reduce carbon emissions, this is a pretty cost effective way of doing that," said Crawford.

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Vehicle-to-Grid (V2G) enables EV batteries to provide grid balancing, flexibility, and demand response, integrating renewables with bidirectional charging, reducing peaker plant reliance, and unlocking distributed energy storage from millions of connected electric vehicles.

Key Points

Vehicle-to-Grid (V2G) lets EVs export power via bidirectional charging to balance grids and support renewables.

✅ Turns parked EVs into distributed energy storage assets

✅ Delivers balancing services and demand response to the grid

✅ Cuts peaker plant use and supports renewable integration

“There are already many Gigawatt-hours of batteries on wheels”, which could be used to provide balance and flexibility to electrical grids, if the “ultimate potential” of vehicle-to-grid (V2G) technology could be harnessed.

That’s according to a panel of experts and stakeholders convened by our sister site Current±, which covers the business models and technologies inherent to the low carbon transition to decentralised and clean energy. Focusing mainly on the UK grid but opening up the conversation to other territories and the technologies themselves, representatives including distribution network operator (DNO) Northern Powergrid’s policy and markets director and Nissan Europe’s director of energy services debated the challenges, benefits and that aforementioned ultimate potential.

Decarbonisation of energy systems and of transport go hand-in-hand amid grid challenges from rising EV uptake, with vehicle fuel currently responsible for more emissions than electricity used for energy elsewhere, as Ian Cameron, head of innovation at DNO UK Power Networks says in the Q&A article.

“Furthermore, V2G technology will further help decarbonisation by replacing polluting power plants that back up the electrical grid,” Marc Trahand from EV software company Nuvve Corporation added, pointing to California grid stability initiatives as a leading example.

While the panel states that there will still be a place for standalone utility-scale energy storage systems, various speakers highlighted that there are over 20GWh of so-called ‘batteries on wheels’ in the US, capable of powering buildings as needed, and up to 10 million EVs forecast for Britain’s roads by 2030.

“…it therefore doesn’t make sense to keep building expensive standalone battery farms when you have all this capacity on wheels that just needs to be plugged into bidirectional chargers,” Trahand said.

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Yukon Renewable Energy Funding backs wind turbines, grid-scale battery storage, and transmission line upgrades, cutting diesel dependence, lowering greenhouse gas emissions, and strengthening Yukon Energy's isolated grid for remote communities, local jobs, and future growth.

Key Points

Federal support for Yukon projects adding wind, battery storage, and grid upgrades to cut diesel use and emissions.

✅ Three 100 kW wind turbines will power Destruction Bay.

✅ 8 MW battery storage smooths peaks and reduces diesel.

✅ Mayo-McQuesten 138 kV line upgrade boosts reliability.

Kluane First Nation in Yukon will receive a total of $3.1 million in funding from the federal government to install and operate wind turbines that will help reduce the community’s diesel reliance.

According to a release, the community will integrate three 100-kilowatt turbines in Destruction Bay, Yukon, providing a renewable energy source for their local power grid that will reduce greenhouse gas emissions and create local jobs in the community.

A $2-million investment from Natural Resources Canada came from the Clean Energy for Rural and Remote Communities Program, part of the Government of Canada’s Investing in Canada infrastructure plan, which supports green energy solutions across jurisdictions. Crown-Indigenous Relations’ and Northern Affairs Canada also contributed a $1.1-million investment from the Northern REACHE Program.

Also, the Government of Canada announced more than $39.2 million in funding for two Yukon Energy projects that will increase the reliability of Yukon’s electrical grid, including exploration of a potential connection to the B.C. grid to bolster resiliency, and help build the robust energy system needed to support future growth. The investment comes from the government’s Green Infrastructure Stream (GIS) of the Investing in Canada infrastructure plan.

Project 1: Grid-scale battery storage

The federal government is investing $16.5 million in Yukon Energy’s construction of a new battery storage system in Yukon. Once completed, the 8 MW battery will be the largest grid-connected battery in the North, and one of the largest in Canada, alongside major Ontario battery projects underway.

The new battery is a critical investment in Yukon Energy’s ability to meet growing demands for power and securing Yukon’s energy future. As an isolated grid, one of the largest challenges Yukon Energy faces is meeting peak demands for power during winter months, as electrification grows with EV adoption in the N.W.T. and beyond.

When complete, the new system will store excess electricity generated during off-peak periods, complementing emerging vehicle-to-grid integration approaches, and provide Yukoners with access to more power during peak periods. This new energy storage system will create a more reliable power supply and help reduce the territory’s reliance on diesel fuel. Over the 20-year life of project, the new battery is expected to reduce carbon emissions in Yukon by more than 20,000 tonnes.

A location for the new battery energy storage system has not been identified. Yukon Energy will begin permitting of the project in 2020 with construction targeted to be complete by mid-2023.

Project 2: Replacing and upgrading the Mayo to McQuesten Transmission Line

Yukon Energy has received $22.7 million in federal funding to proceed with Stage 1 of the Stewart to Keno City Transmission Project – replacing and upgrading the 65 year-old transmission line between Mayo and McQuesten. The project also includes the addition of system protection equipment at the Stewart Crossing South substation. The Yukon government, through the Yukon Development Corporation, has already provided $3.5 million towards planning for the project.

Replacing the Mayo to McQuesten transmission line is critical to Yukon Energy’s ability to deliver safe and reliable electricity to customers in the Mayo and Keno regions, mirroring broader regional transmission initiatives that enhance grid resilience, and to support economic growth in Yukon. The transmission line has reached end-of-life and become increasingly unreliable for customers in the area.

The First Nation of Na-Cho Nyak Dun has expressed their support of this project. The project has also been approved by the Yukon Environmental and Socio-Economic Assessment Board.

Yukon Energy will begin replacing and upgrading the 31 km transmission line between Mayo and McQuesten in 2020. Construction is expected to be complete in late 2020. When finished, the new 138 kV transmission line will provide more reliable electricity to customers in the Mayo and Keno regions and be equipped to support industrial growth and development in the area, including the Victoria Gold Mine, with renewable power from the Yukon grid.

Planning work for the remainder of the Stewart to Keno City Transmission Project has been completed. Yukon Energy continues to explore funding opportunities that are needed to proceed with other stages of the project.

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Alberta Ends Renewable Energy Moratorium, accelerating wind and solar deployment while prioritizing grid stability, reliability, and infrastructure upgrades to attract investment, cut emissions, meet climate targets, and integrate renewables into the provincial power system.

Key Points

It is Alberta's decision to lift a pause on new wind and solar projects while enhancing grid reliability.

✅ Resumes wind and solar development across Alberta.

✅ Focuses on grid stability and infrastructure upgrades.

✅ Aims to attract investment and meet climate targets.

The Alberta government has announced the end of a temporary suspension on the development of new renewable energy projects, as the power grid operator prepares to accept green energy bids across the market. This pause, which had been in place since May 2023, was initially implemented to evaluate the effects of rapid growth in renewable energy installations on the province's power grid and overall energy system. However, the decision to lift the moratorium reflects a shift in the government’s approach to balancing energy needs and environmental goals.

The suspension was introduced amid concerns that the swift expansion of wind and solar energy projects, including documented challenges with solar energy expansion in the province, could place undue stress on Alberta's electrical grid and infrastructure. Officials expressed worries about the ability of the grid to handle the increased load and the potential need for upgrades to accommodate new renewable energy sources. The government aimed to assess the implications of this growth and determine appropriate measures to ensure that the energy system could support both existing and future demands.

The moratorium drew significant criticism from various sectors, including renewable energy companies, environmental advocates, and local communities. Critics argued that the pause was detrimental to Alberta's efforts to transition to cleaner energy sources and meet climate targets, citing cases like TransAlta scrapping a wind farm amid policy uncertainty. They pointed out that halting projects could delay investments and job creation associated with the renewable energy sector, potentially impeding progress towards a more sustainable energy future.

In response to these concerns, the Alberta government conducted further reviews and consultations. The decision to cancel the pause reflects the government’s recognition of the importance of advancing renewable energy initiatives while also addressing the need for grid stability and infrastructure development. By ending the moratorium, the government aims to support the continued growth of renewable energy projects and maintain momentum in the shift towards greener energy solutions.

The lifting of the moratorium is expected to have a positive impact on the renewable energy industry in Alberta. Several planned projects that were put on hold can now proceed, leading to renewed investment and economic benefits, including a renewable energy surge that could power 4,500 jobs across the province. The government’s decision signals a commitment to integrating renewable energy sources into the provincial grid in a way that ensures both reliability and sustainability.

Going forward, the Alberta government plans to implement measures to better manage the integration of renewable energy into the existing power infrastructure. This includes addressing any potential challenges related to grid capacity and ensuring that the growth of renewable energy projects aligns with the province's overall energy strategy, as recent federal procurement such as a $500M green electricity contract with an Edmonton company underscores demand that integration efforts must accommodate. The goal is to create a balanced approach that supports the development of clean energy while maintaining the stability and efficiency of the energy system.

The end of the moratorium aligns with Alberta’s broader objectives to reduce greenhouse gas emissions and promote environmental sustainability within a province recognized as a powerhouse for both green energy and fossil fuels in Canada. The government’s approach reflects a willingness to adapt policies and strategies in response to evolving industry needs and environmental priorities. By removing the pause, Alberta demonstrates its commitment to fostering a diverse and resilient energy sector that can meet both current and future demands.

The decision to cancel the moratorium is also seen as a move to reinforce Alberta’s position as a leader in renewable energy development. With the lifting of restrictions, the province can continue to attract investment in clean energy projects, as neighboring jurisdictions such as B.C. streamline clean energy approvals to accelerate deployment, enhance its reputation as a progressive energy market, and contribute to global efforts to address climate change.

In summary, the Alberta government’s decision to lift the pause on renewable energy projects represents a significant shift in its approach to energy policy. The move reflects an acknowledgment of the importance of advancing renewable energy while addressing the practical challenges associated with grid management and infrastructure development. By ending the moratorium, Alberta aims to support the growth of clean energy initiatives and maintain its commitment to sustainability and environmental responsibility.

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