Electric cars will not cure environmental woes

By Reuters


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The world is falling in love with plug-in hybrids and all-electric cars.

President-elect Obama wants to put 1 million on the road by 2015. GM features them, particularly the Chevy Volt, in its new business plan for a debut in 2010. The EU wants them to shrink greenhouse gas emissions in 2020 by 20% from 1990 levels. The Chinese auto company BYD began selling the worldÂ’s first commercially-available plug-in hybrid sedan.

No matter that these cars are not widely available; that they are priced far above traditional models; that many have a short range, making them useful only for local trips; that batteries may be prone to catching fire; and that many motorists park on the street, where charging is impractical.

For some, these issues pale in importance to saving the planet from harmful emissions of carbon, sulfur dioxide and nitrogen dioxide — all of which are released from internal combustion engine vehicles. If battery powered cars reduce emissions, environmentalists argue, they should be produced and consumers should be enticed to buy them.

But whereas electric cars donÂ’t pollute when theyÂ’re running on batteries, theyÂ’re not pollution-free. Making the lithium-ion batteries is pollution-intensive and recharging the batteries uses electricity. And most electricity generation, from coal- and gas-fired power plants, still causes pollution.

Which means that pollution from the extra electricity for car batteries has to be weighed against savings from burning less gasoline. Whether battery power can trump the internal combustion engine, which is continually getting more efficient, depends on when drivers decide to charge their future cars, as well as how the electricity is made.

A 2008 study by the Oak Ridge National Laboratory projected U.S. power needs in 2030 if 25% of the car fleet used some form of battery power.

If drivers charged vehicles after 10 p.m., when household power consumption is at its lowest, then at most eight extra power plants would be needed for electric cars. In contrast, if drivers charged cars in early evening when household use is peaking, 160 new power plants would have to be built.

At issue here is the way that America will generate its electricity when ObamaÂ’s 1 million plug-in hybrids hit the road in 2015. Nuclear power plants do not generate harmful emissions, and are a far cleaner source of electricity than oil, natural gas, or coal. Yet America has refused to build them for fear of accidents and because of controversy about where to dispose of spent fuel. A third problem is long delays in winning government licenses for new plants.

Private companies donÂ’t want to face litigious American consumers, trial lawyers at the ready, and so do not dare embark on nuclear power plants. Until Congress makes serious efforts to shield companies from liability, nuclear power wonÂ’t be viable. The Nuclear Regulatory Commission has not licensed a new nuclear power plant in over 30 years.

France, on the other hand, does have nuclear power; it generates 78% of its supply from splitting the atom, far more than AmericaÂ’s 19% share. Electric cars in France, therefore, if they can overcome problems of range, safety, and price, would be more environmentally friendly than their American counterparts.

Until America can resume construction of nuclear power plants, it might be that the way to energy efficiency on the road is not through the electric car but by making improvements in the way cars burn gasoline. That would be a good use of the $25 billion that Congress gave to the auto industry last year to improve efficiency.

Call it a dual-highway route to saving energy on the road.

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U.S. Speeds Up Permitting for Geothermal Energy

Geothermal Emergency Permitting accelerates BLM approvals on public lands via categorical exclusions for exploratory drilling and geophysical surveys, boosting domestic energy security, cutting timelines by up to a year, and streamlining low-impact reviews.

 

Key Points

A policy fast-tracking geothermal exploration on public lands, using BLM categorical exclusions to cut review delays.

✅ Categorical exclusions speed exploratory drilling approvals

✅ Cuts permitting timelines by up to one year

✅ Focused on public lands to enhance energy security

 

In a significant policy shift, the U.S. Department of the Interior has introduced emergency permitting procedures aimed at expediting the development of geothermal energy projects. This initiative, announced on May 30, 2025, is part of a broader strategy to enhance domestic energy production, seen in proposals to replace Obama's power plant overhaul and reduce reliance on foreign energy sources.

Background and Rationale

The decision to fast-track geothermal energy projects comes in the wake of President Donald Trump's declaration of a national energy emergency, which faces a legal challenge from Washington's attorney general, on January 20, 2025. This declaration cited high energy costs and an unreliable energy grid as threats to national security and economic prosperity. While the emergency order includes traditional energy resources such as oil, gas, coal, and uranium and nuclear energy resources, it notably excludes renewable sources like solar, wind, and hydrogen from its scope.

Geothermal energy, which harnesses heat from beneath the Earth's surface to generate electricity, is considered a reliable and low-emission energy source. However, its development has been hindered by lengthy permitting processes and environmental reviews, with recent NEPA rule changes influencing timelines. The new emergency permitting procedures aim to address these challenges by streamlining the approval process for geothermal projects.

Key Features of the Emergency Permitting Procedures

Under the new guidelines, the Bureau of Land Management (BLM) has adopted categorical exclusions to expedite the review and approval of geothermal energy exploration on public lands. These exclusions allow for faster permitting of low-impact activities, such as drilling exploratory wells and conducting geophysical surveys, without the need for extensive environmental assessments.

Additionally, the BLM has proposed a new categorical exclusion that would apply to operations related to the search for indirect evidence of geothermal resources. This proposal is currently open for public comment and, if finalized, would further accelerate the discovery of new geothermal resources on public lands.

Expected Impact on Geothermal Energy Development

The implementation of these emergency permitting procedures is expected to significantly reduce the time and cost associated with developing geothermal energy projects. According to the Department of the Interior, the new measures could cut permitting timelines by up to a year for certain types of geothermal exploration activities.

This acceleration in project development is particularly important given the untapped geothermal potential in regions like Nevada, which is home to some of the largest undeveloped geothermal resources in the country.

Industry and Environmental Reactions

The geothermal industry has largely welcomed the new permitting procedures, viewing them as a necessary step to unlock the full potential of geothermal energy. Industry advocates argue that reducing permitting delays will facilitate the deployment of geothermal projects, contributing to a more reliable and sustainable energy grid amid debates over electricity pricing changes that affect market signals.

However, the exclusion of solar and wind energy projects from the emergency permitting procedures has drawn criticism from some environmental groups. Critics argue that a comprehensive approach to energy development should include all renewable sources, not just geothermal, to effectively address climate change, as reflected in new EPA pollution limits for coal and gas power plants, and promote energy sustainability.

The U.S. government's move to implement emergency permitting procedures for geothermal energy development marks a significant step toward enhancing domestic energy production and reducing reliance on foreign energy sources. By streamlining the approval process for geothermal projects, the administration aims to accelerate the deployment of this reliable and low-emission energy source. While the exclusion of other renewable energy sources from the emergency procedures has sparked debate, especially after states like California halted an energy rebate program during a federal freeze, the focus on geothermal energy underscores its potential role in the nation's energy future.

 

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Power customers in British Columbia, Quebec have faced fees for refusing the installation of smart meters

NB Power Smart Meter Opt-Out Fees reflect cost causation principles set before the Energy and Utilities Board, covering meter reading charges, transmitter-disable options, rollout targets, and education plans across New Brunswick's smart metering program.

 

Key Points

Fees NB Power may apply to customers opting out of smart meters, reflecting cost causation and meter-reading costs.

✅ Based on cost causation and meter reading expenses

✅ BC and Quebec charge monthly opt-out surcharges

✅ Policy finalized during rollout after EUB review

 

NB Power customers who do not want a smart meter installed on their home could be facing a stiff fee for that decision, but so far the utility is not saying how much it might be.  

"It will be based on the principles of cost causation, but we have not gotten into the detail of what that fee would be at this point," said NB Power Senior Vice President of Operations Lori Clark at Energy and Utilities Board hearings on Friday.

In other jurisdictions that have already adopted smart meters, customers not wanting to participate have faced hundreds of dollars in extra charges, while Texas utilities' pullback from smart-home networks shows approaches can differ.

In British Columbia, power customers are charged a meter reading fee of $32.40 per month if they refuse a smart meter, or $20 per month if they accept a smart meter but insist its radio transmitter be turned off. That's a cost of between $240 and $388.80 per year for customers to opt out.

In Quebec, smart meters were installed beginning in 2012. Customers who refused the devices were initially charged $98 to opt out plus a meter reading fee of $17 per month. That was eventually cut by Quebec's energy board in 2014 to a $15 refusal fee and a $5 per month meter reading surcharge.

NB Power said it may be a year or more before it settles on its own fee.

"The opt out policy will be developed and implemented as part of the roll out.  It will be one of the last things we do," said Clark.

 

Customers need to be on board

NB Power is in front of the New Brunswick Energy and Utilities Board seeking permission to spend $122.7 million to install 350,000 smart meters province wide, as neighboring markets grapple with major rate increases that heighten affordability concerns.  

The meters are capable of transmitting consumption data of customers back to NB Power in real time, which the utility said will allow for a number of innovations in pricing and service, and help address old meter inaccuracies that affected some households.

The meters require near universal adoption by customers to maximize their financial benefit — like eliminating more than $20 million a year NB Power currently spends to read meters manually. The utility has said the switch will not succeed if too many customers opt out.

"We certainly wouldn't be looking at making an investment of this size without having the customer with us," said Clark.

On Thursday, Kent County resident Daniel LeBlanc, who along with Roger Richard, is opposing the introduction of smart meters for health reasons, predicted a cool reception for the technology in many parts of the province, given concerns that include health effects and billing disputes in Nova Scotia reported elsewhere.

"If one were to ask most of the people in the rural areas, I'm not sure you would get a lot of takers for this infrastructure," said LeBlanc, who is concerned with the long-term effect microwave frequencies used by the meters to transmit data may have on human health.

That issue is before the EUB next week.

 

Haven't tested the waters

NB Power acknowledged it has not measured public opinion on adopting smart meters but is confident it can convince customers it is a good idea for them and the utility, even as seasonal rate proposals in New Brunswick have prompted consumer backlash.

"People don't understand what the smart meter is," said Clark. "We need to educate our customers first to allow them to make an informed decision so that will be part of the roll out plan."

Clark noted that smart meters, helped by stiff opting out penalties, were eventually accepted by 98 per cent of customers in British Columbia and by 97.4 per cent of customers in Quebec.

"We will check and adjust along the way if there are issues with customer uptake," said Clark.

 

"This is very similar to what has been done in other jurisdictions and they haven't had those challenges."

 

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Ontario unveils new tax breaks, subsidized hydro plan to spur economic recovery from COVID-19

Ontario COVID-19 Business Tax Relief outlines permanent Employer Health Tax exemptions, lower Business Education Tax rates, optional municipal property tax cuts, and hydro bill subsidies to support small businesses, industrial and commercial recovery.

 

Key Points

A provincial package of tax breaks and hydro subsidies to help small, industrial, and commercial businesses recover.

✅ Permanent Employer Health Tax exemption to $1M payroll

✅ Lower Business Education Tax rates for 94% of firms

✅ Hydro subsidies cut medium-large rates by 14-16%

 

The Ontario government's latest plan to help businesses survive and recover from the COVID-19 pandemic includes a suite of new tax breaks for small businesses and $1.3 billion to subsidize electricity bills for industrial and commercial operations.

The new measures were announced Thursday as part of Ontario's 2020 budget, which sets new provincial records for both spending and deficit projections.

The government of Premier Doug Ford says the budget will address barriers impeding long-term growth, ensuring the province forges a path to a full recovery from the pandemic.

"When the pandemic is over, Ontario will come back with a vengeance, stronger and more prosperous than ever before," Ford said at an afternoon news conference.

Small businesses with payrolls under $1 million will no longer have to pay the Employer Health Tax. The province temporarily raised the exemption from $490,000 to $1 million earlier this year, but the government is now making the change permanent.

The higher exemption means that about 90 per cent of Ontario businesses will no longer have to pay the tax, amounting to about $360 million by 2022, according to the province.

"We have heard from employers across Ontario that this measure helped them keep workers on the job during COVID-19," Finance Minister Rod Phillips told the legislature.

The 2020 budget lowers rates for the Business Education Tax (BET), a property tax earmarked for public education. More than 200,000 Ontario businesses, or 94 per cent, will see a lower rate.

"I believe this budget takes some significant initial steps to help stabilize the economy and help businesses, especially small businesses," said Toronto Mayor John Tory in a statement. Tory's office estimates that reductions to the BET will result in $117 million in lower taxes for commercial properties in Canada's largest city.

Municipal governments will also be permitted to reduce property taxes for small businesses, should they choose to do so. The province says it will "consider matching these reductions," which could amount to $385 million in tax relief by 2023.

Finance Minister Rod Phillips tabled the largest spending plan in Ontario history on Thursday afternoon. (Frank Gunn/The Canadian Press)
Municipalities currently have few options to provide targeted relief to local businesses. Guelph Mayor Cam Guthrie, chair of Ontario's Big City Mayors, said the prospect of lowering property taxes will likely be welcomed by local governments across the province.

"I really am looking forward to looking into that because it would give targeted relief to these businesses that have been asking for something from local governments for the past nine months," he said in an interview.

Tax cuts 'won't help a boarded up business,' NDP says
The 2020 budget does not contain any new direct funding for small businesses or their employees. NDP leader Andrea Horwath, who has proposed to make hydro public again, said those types of funding would help businesses more than potential tax reductions.

"A future hydro or tax cut won't help a boarded up business and it certainly won't help the folks that used to work there," Horwath said.

"Those measures are great if you're a company that's doing really well ... but let's face it, main streets across Ontario are crumbling."

Ontario did reveal on Thursday more details about a previously announced $300-million fund to support businesses in Toronto, Ottawa, Peel Region and York Region, which were placed under modified Stage 2 restrictions this fall. The money can be used to cover property taxes and energy bills for eligible businesses.

In a similar move, B.C. provided a three-month break on electricity bills for residents and businesses during the pandemic.

An undetermined amount of the $300 million will also be made available to businesses that are placed under "control" and "lockdown" rules, which are the two most severe restrictions in the province's updated reopening guidelines announced in October.

No regions are currently under these restrictions.

Elsewhere, B.C. saw commercial electricity consumption plummet during the COVID-19 pandemic.

Government to subsidize hydro bills for industrial businesses
The Ford government, which earlier oversaw a Hydro One leadership overhaul, is also taking aim at what it calls "job-killing electricity prices" in Ontario's industrial and commercial sectors.

The budget includes a $1.3 billion investment over three years to subsidize their hydro bills, a move praised by Canadian Manufacturers & Exporters as supportive of industry, which the province says have been inflated due to contracts signed by the previous Liberal government to purchase electricity generated by wind, solar and bioenergy.

"This is the legacy that is making our businesses uncompetitive," Phillips told reporters Thursday afternoon.

Ontario says its $1.3-billion investment to subsidize electricity bills will offset expensive contracts for green energy signed by the previous Liberal government. (Patrick Pleul/dpa via Associated Press)
The investment will lower rates for medium- and large-sized business by between 14 and 16 per cent, and follows an OEB decision on Hydro One rates that affects transmission and distribution costs, according to Ontario's calculations. Phillips said those rates will be among the lowest of any jurisdiction in the Great Lakes region.

The provincial government said the investment is necessary for Ontario to recover from the COVID-19 downturn. The Ford government expects that no further subsidies will be required by around 2040.

 

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Ontario Teachers' Plan Acquires Brazilian Electricity Transmission Firm Evoltz

Ontario Teachers' Evoltz Acquisition expands electricity transmission in Brazil, adding seven grid lines across ten states, aligning infrastructure strategy with inflation-linked cash flows, renewable energy integration, Latin America and net-zero objectives pending regulatory approvals.

 

Key Points

A 100% purchase of Brazil's Evoltz, adding seven grid lines and delivering stable, inflation-linked cash flows.

✅ 100% stake in Evoltz with seven transmission lines

✅ Aligns with net-zero and renewable energy strategy

✅ Inflation-linked, core infrastructure cash flows in Brazil

 

The Ontario Teachers’ Pension Plan has acquired Evoltz Participações, an electricity transmission firm in Brazil, from US asset manager TPG. 

The retirement system took a 100% stake in the energy firm, Ontario Teachers’ said Monday. The acquisition has netted the pension fund seven electricity transmission lines that service consumers and businesses across 10 states in Brazil, amid dynamics similar to electricity rate reductions for businesses seen in Ontario. The firm was founded by TPG just three years ago. 

“Our strategy focuses on allocating significant capital to high-quality core infrastructure assets with lower risks and stable inflation-linked cash flows,” Dale Burgess, senior managing director of infrastructure and natural resources at Ontario Teachers, said in a statement. “Electricity transmission businesses are particularly attractive given their importance in facilitating a transition to a low-carbon economy.” 

The pension fund has invested in other electricity distribution companies recently. In March, Ontario Teachers’ took a 40% stake in Finland’s Caruna, and agreed to acquire a 25% stake in SSEN Transmission in the UK grid. For more than a decade, it has maintained a 50% stake in Chile-based transmission firm Saesa. 

The investment into Evoltz demonstrates Ontario Teachers’ growing portfolio in Brazil and Latin America, while activity in Ontario such as the Peterborough Distribution sale reflects ongoing utility consolidation. In 2016, the firm, with the Canada Pension Plan Investment Board (CPPIB), invested in toll roads in Mexico. They took a 49% stake with Latin American infrastructure group IDEAL. 

Evoltz, which delivers renewable energy, will also help decarbonize the pension fund’s portfolio. In January, the fund pledged to reach net-zero carbon emissions by 2050. Last year, Ontario Teachers’ issued its first green bond offering. The $890 million 10-year bond will help the retirement system fund sustainable investments aligned with policy measures like Ontario's subsidized hydro plan during COVID-19. 

However, Ontario Teachers’ has also received criticism for its investment into parts of Abu Dhabi’s gas pipeline network, and investor concerns about Hydro One highlight sector uncertainties. Last summer, it joined other institutional investors in investing $10.1 billion for a 49% stake. 

As of December, Ontario Teachers’ reached a portfolio with C$221.2 billion (US$182.5 billion) in assets. Since 1990, the fund has maintained a 9.6% annualized return. Last year, it missed its benchmark with an 8.6% return, with examples such as Hydro One shares fall after shake-up underscoring market volatility.

The pension fund expects the deal will close later this fall, pending closing conditions and regulatory approvals, including decisions such as the OEB combined T&D rates ruling that shape utility economics. 

 

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IAEA - COVID-19 and Low Carbon Electricity Lessons for the Future

Nuclear Power Resilience During COVID-19 shows low-carbon electricity supporting renewables integration with grid flexibility, reliability, and inertia, sustaining decarbonization, stable baseload, and system security while prices fell and demand dropped across markets.

 

Key Points

It shows nuclear plants providing reliable, low-carbon power and supporting grid stability despite demand declines.

✅ Low prices challenge investment; lifetime extensions are cost-effective.

✅ Nuclear provides inertia, reliability, and dispatchable capacity.

✅ Market reforms should reward flexibility and grid services.

 

The COVID-19 pandemic has transformed the operation of power systems across the globe, including European responses that many argue accelerated the transition, and offered a glimpse of a future electricity mix dominated by low carbon sources.

The performance of nuclear power, in particular, demonstrates how it can support the transition to a resilient, clean energy system well beyond the COVID-19 recovery phase, and its role in net-zero pathways is increasingly highlighted by analysts today.

Restrictions on economic and social activity during the COVID-19 outbreak have led to an unprecedented and sustained decline in demand for electricity in many countries, in the order of 10% or more relative to 2019 levels over a period of a few months, thereby creating challenging conditions for both electricity generators and system operators (Fig. 1). The recent Sustainable Recovery Report by the International Energy Agency (IEA) projects a 5% reduction in global electricity usage for the entire year 2020, with a record 5.7% decline foreseen in the United States alone. The sustainable economic recovery will be discussed at today's IEA Clean Energy Transitions Summit, where Fatih Birol's call to keep options open will be prominent as IAEA Director General Rafael Mariano Grossi participates.

Electricity generation from fossil fuels has been hard hit, due to relatively high operating costs compared to nuclear power and renewables, as well as simple price-setting mechanisms on electricity markets. By contrast, low-carbon electricity prevailed during these extraordinary circumstances, with the contribution of renewable electricity rising in a number of countries as analyses see renewables eclipsing coal by 2025, due to an obligation on transmission system operators to schedule and dispatch renewable electricity ahead of other generators, as well as due to favourable weather conditions.

Nuclear power generation also proved to be resilient, reliable and adaptable. The nuclear industry rapidly implemented special measures to cope with the pandemic, avoiding the need to shut down plants due to the effects of COVID-19 on the workforce or supply chains. Nuclear generators also swiftly adapted to the changed market conditions. For example, EDF Energy was able to respond to the need of the UK grid operator by curtailing sporadically the generation of its Sizewell B reactor and maintain a cost-efficient and secure electricity service for consumers.

Despite the nuclear industry's performance during the pandemic, faced with significant decreases in demand, many generators have still needed to reduce their overall output appreciably, for example in France, Sweden, Ukraine, the UK and to a lesser extent Germany (Fig. 2), even as the nuclear decline debate continues in Europe. Declining demand in France up to the end of March already contributed to a 1% drop in first quarter revenues at EDF, with nuclear output more than 9% lower than in the year before. Similarly, Russia's Rosatom experienced a significant demand contraction in April and May, contributing to an 11% decline in revenues for the first five months of the year.

Overall, the competitiveness and resilience of low carbon technologies have resulted in higher market shares for nuclear, solar and wind power in many countries since the start of lockdowns (Fig. 3), and low-emissions sources to meet demand growth over the next three years. The share of nuclear generation in South Korea rose by almost 9 percentage points during the pandemic, while in the UK, nuclear played a big part in almost eliminating coal generation for a period of two months. For the whole of 2020, the US Energy Information Administration's Short-Term Energy Outlook sees the share of nuclear generation increasing by more than one percentage point compared to 2019. In China, power production decreased during January-February 2020 by more than 8% year on year: coal power decreased by nearly 9%, hydropower by nearly 12%. Nuclear has proved more resilient with a 2% reduction only. The benefits of these higher shares of clean energy in terms of reduced emissions of greenhouse gases and other air pollutants have been on full display worldwide over the past months.

Challenges for the future

Despite the demonstrated performance of a cleaner energy system through the crisis - including the capacity of existing nuclear power plants to deliver a competitive, reliable, and low carbon electricity service when needed - both short- and long-term challenges remain.

In the shorter term, the collapse in electricity demand has accelerated recent falls in electricity prices, particularly in Europe (Fig. 4), from already economically unsustainable levels. According to Standard and Poor's Midyear Update, the large price drops in Europe result from not only COVID-19 lockdown measures but also collapsing demand due to an unusually warm winter, increased supply from renewables in a context of lower gas prices and CO2 allowances . Such low prices further exacerbate the challenging environment faced by many electricity generators, including nuclear plants. These may impede the required investments in the clean energy transition, with longer term consequences on the achievement of climate goals.

For nuclear power, maintaining and extending the operation of existing plants is essential to support and accelerate the transition to low carbon energy systems. With a supportive investment environment, a 10-20 year lifetime extension can be realized at an average cost of US $30-40/MW*h, making it among the most cost-effective low-carbon options, while also maintaining dispatchable capacity and lowering the overall cost of the clean energy transition. The IEA Sustainable Recovery report indicates that without such extensions 40% of the nuclear fleet in developed economies may be retired within a decade, adding around US$ 80 billion per year to electricity bills. The IEA note the potential for nuclear plant maintenance and extension programmes to support recovery measures by generating significant economic activity and employment.

The need for flexibility

New nuclear power projects can provide similar economic and environmental benefits and applications beyond electricity, but will be all the more challenging to finance without strong policy support and more substantive power market reforms, including improved frameworks for remunerating reliability, flexibility and other services. The need for flexibility in electricity generation and system operation - a trend accelerated by the crisis - will increasingly characterize future energy systems over the medium to longer term.

Looking further ahead, while generators and system operators successfully responded to the crisis, the observed decline in fossil fuel generation draws attention to additional grid stability challenges likely to emerge further into the energy transition. Heavy rotating steam and gas turbines provide mechanical inertia to an electricity system, thereby maintaining its balance. Replacing these capacities with variable renewables may result in greater instability, poorer power quality and increased incidence of blackouts. Large nuclear power plants along with other technologies can fill this role, alleviating the risk of supply disruptions in fully decarbonized electricity systems.

The challenges created by COVID-19 have also brought into focus the need to ensure resilience is built-in to future energy systems to cope with a broader range of external shocks, including more variable and extreme weather patterns expected from climate change.

The performance of nuclear power during the crisis provides a timely reminder of its ongoing contribution and future potential in creating a more sustainable, reliable, low carbon energy system.

Data sources for electricity demand, generation and prices: European Network of Transmission System Operators for Electricity (Europe), Ukrenergo National Power Company (Ukraine), Power System Operation Corporation (India), Korea Power Exchange (South Korea), Operador Nacional do Sistema Eletrico (Brazil), Independent Electricity System Operator (Ontario, Canada), EIA (USA). Data cover 1 January to May/June.

 

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The biggest problem facing the U.S. electric grid isn't demand. It's climate change

US power grid modernization addresses aging infrastructure, climate resilience, extreme weather, EV demand, and clean energy integration, using AI, transmission upgrades, and resilient substations to improve reliability, reduce outages, and enable rapid recovery.

 

Key Points

US power grid modernization strengthens infrastructure for resilience, reliability, and clean energy under rising demand.

✅ Hardening substations, lines, and transformers against extreme weather

✅ Integrating EV load, DERs, and renewables into transmission and distribution

✅ Using AI, sensors, and automation to cut outages and speed restoration

 

The power grid in the U.S. is aging and already struggling to meet current demand, with dangerous vulnerabilities documented across the system today. It faces a future with more people — people who drive more electric cars and heat homes with more electric furnaces.

Alice Hill says that's not even the biggest problem the country's electricity infrastructure faces.

"Everything that we've built, including the electric grid, assumed a stable climate," she says. "It looked to the extremes of the past — how high the seas got, how high the winds got, the heat."

Hill is an energy and environment expert at the Council on Foreign Relations. She served on the National Security Council staff during the Obama administration, where she led the effort to develop climate resilience. She says past weather extremes can no longer safely guide future electricity planning.

"It's a little like we're building the plane as we're flying because the climate is changing right now, and it's picking up speed as it changes," Hill says.

The newly passed infrastructure package dedicates billions of dollars to updating the energy grid with smarter electricity infrastructure programs that aim to modernize operations. Hill says utility companies and public planners around the country are already having to adapt. She points to the storm surge of Hurricane Sandy in 2012.

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"They thought the maximum would be 12 feet," she says. "That storm surge came in close to 14 feet. It overcame the barriers at the tip of Manhattan, and then the electric grid — a substation blew out. The city that never sleeps [was] plunged into darkness."

Hill noted that Con Edison, the utility company providing New York City with energy, responded with upgrades to its grid: It buried power lines, introduced artificial intelligence, upgraded software to detect failures. But upgrading the way humans assess risk, she says, is harder.

"What happens is that some people tend to think, well, that last storm that we just had, that'll be the worst, right?" Hill says. "No, there is a worse storm ahead. And then, probably, that will be exceeded."

In 2021, the U.S. saw electricity outages for millions of people as a result of historic winter storms in Texas, a heatwave in the Pacific Northwest and Hurricane Ida along the Gulf Coast. Climate change will only make extreme weather more likely and more intense, driving longer, more frequent outages for utilities and customers.

In the West, California's grid reliability remains under scrutiny as the state navigates an ambitious clean energy shift.

And that has forced utility companies and other entities to grapple with the question: How can we prepare for blackouts and broader system stress we've never experienced before?

A modern power station in Maryland is built for the future
In the town of Edgemere, Md., the Fitzell substation of Baltimore Gas and Electric delivers electricity to homes and businesses. The facility is only a year or so old, and Laura Wright, the director of transmission and substation engineering, says it's been built with the future in mind.

She says the four transformers on site are plenty for now. And to counter the anticipated demand of population growth and a future reliance on electric cars, she says the substation has been designed for an easy upgrade.

"They're not projecting to need that additional capacity for a while, but we designed this station to be able to take that transformer out and put in a larger one," Wright says.

Slopes were designed to insulate the substation from sea level rise. And should the substation experience something like a catastrophic flooding event or deadly tornado, there's a plan for that too.

"If we were to have a failure of a transformer," Wright says, "we can bring one of those mobile transformers into the substation, park it in the substation, connect it up in place of that transformer. And we can do that in two to three days."

The Fitzell substation is a new, modern complex. Older sites can be knocked down for weeks.

That raises the question: Can the amount of money dedicated to the power grid in the new infrastructure legislation actually make meaningful changes to the energy system across the country, where studies find more blackouts than other developed nations persist?

"The infrastructure bill, unfortunately, only scratches the surface," says Daniel Cohan, an associate professor in civil and environmental engineering at Rice University.

Though the White House says $65 billion of the infrastructure legislation is dedicated to power infrastructure, a World Resources Institute analysis noted that only $27 billion would go to the electric grid — a figure that Cohan also used.

"If you drill down into how much is there for the power grid, it's only about $27 billion or so, and mainly for research and demonstration projects and some ways to get started," he says.

Cohan, who is also author of the forthcoming book Confronting Climate Gridlock, says federal taxpayer dollars can be significant but that most of the needed investment will eventually come from the private sector — from utility companies and other businesses spending "many hundreds of billions of dollars per decade," even as grid modernization affordability remains a concern. He also says the infrastructure package "misses some opportunities" to initiate that private-sector action through mandates.

"It's better than nothing, but, you know, with such momentous challenges that we face, this isn't really up to the magnitude of that challenge," Cohan says.

Cohan argues that thinking big, and not incrementally, can pay off. He believes a complete transition from fossil fuels to clean energy by 2035 is realistic and attainable — a goal the Biden administration holds — and could lead to more than just environmental benefit.

"It also can lead to more affordable electricity, more reliable electricity, a power supply that bounces back more quickly when these extreme events come through," he says. "So we're not just doing it to be green or to protect our air and climate, but we can actually have a much better, more reliable energy supply in the future."

 

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