IEA: Electricity investment surpasses oil and gas for the first time

Heathrow Airport Power Outage 2025 disrupted operations with mass flight cancellations and diversions after a grid failure, exposing infrastructure resilience gaps, crisis management flaws, and raising passenger compensation and safety oversight concerns.

Key Points

A grid failure closed Heathrow, causing mass cancellations and diversions, exposing resilience and communication lapses.

✅ Grid fire triggered airport-wide shutdown

✅ 1,400+ flights canceled or diverted

✅ Inquiry probes resilience, communication, compensation

On March 21, 2025, Heathrow Airport, Europe's busiest, suffered a catastrophic power outage, similar to another high-profile outage seen at major events, that led to the cancellation and diversion of over 1,400 flights, affecting nearly 300,000 passengers and costing airlines an estimated £100 million. The power failure, triggered by a fire at an electricity substation in west London, left Heathrow with a significant operational crisis. This disruption is even more significant considering that Heathrow is one of the most expensive airports globally, which raises concerns about its infrastructure resilience and broader electricity system resilience across Europe.

In a parliamentary committee meeting, Heathrow officials admitted that vulnerabilities in the airport’s power supply were flagged just days before the outage. Nigel Wicking, Chief Executive of the Heathrow Airline Operators' Committee (HAOC), informed MPs that concerns regarding power resilience had been raised on March 15, following disruptions caused by cable thefts impacting runway lights. Despite these warnings, the airport’s management did not address the vulnerabilities urgently, even as UK net zero policies continue to reshape infrastructure planning, which ultimately led to the disastrous outage.

The airport was closed for a day, with serious consequences for not only airlines but also the surrounding community and businesses. British Airways alone faced millions of pounds in losses, and passengers experienced significant emotional distress, missing vital life events like weddings and funerals due to flight cancellations. The committee is now questioning officials from National Grid and Scottish and Southern Electricity Networks to better understand why Heathrow’s infrastructure failed, in the context of a cleaner grid following the British carbon tax that reduced coal use, how it communicated with affected parties, and what measures will be taken to compensate impacted passengers.

Heathrow’s Chief Executive, Thomas Woldbye, defended the closure decision, stating it would have been disastrous to keep the airport open under such circumstances. He noted that continuing operations would have left tens of thousands of passengers stranded and would have posed safety risks due to the failure of fire surveillance and CCTV systems. However, Wicking, representing the airlines, pointed out that Heathrow’s lack of resilience was unacceptable given the amount spent on the airport, emphasizing the need for better infrastructure, including addressing SF6 in switchgear during upgrades, and more transparent management practices.

Looking forward, the MPs intend to investigate the airport’s emergency preparedness, why the resilience review from 2018 wasn’t shared with airlines, and whether enough preventative measures were in place amid surging data demand that could strain electricity supplies. The outcome of this inquiry could have lasting effects on how Heathrow and other major airports handle their infrastructure and crisis management systems, as drought-driven hydro challenges demonstrate the wider climate stresses on power networks.

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Hospital Electricity Reliability underpins ICU operations, ventilators, medical devices, and diagnostics, reducing power outages risks via grid power and backup generators, while energy poverty and blackouts magnify COVID-19 mortality in vulnerable regions.

Key Points

Hospital electricity reliability is steady power that keeps ICU care, ventilators and medical devices operating.

✅ ICU loads: ventilators, monitors, infusion pumps, diagnostics

✅ Grid power plus backup generators minimize outage risk

✅ Energy poverty increases COVID-19 mortality and infection

Robert Bryce, Contributor

During her three-year career as a registered nurse, my friend, C., has cared for tuberculosis patients as well as ones with severe respiratory problems. She’s now caring for COVID-19 patients at a hospital in Ventura County, California, where debates about keeping the lights on continue amid the state’s energy transition. Is she scared about catching the virus? “No,” she replied during a phone call on Thursday. “I’m pretty unflappable.”

What would scare her? She quickly replied, “a power outage,” a threat that grows during summer blackouts when heat waves drive demand. About a year ago, while working in Oregon, the hospital she was working in lost power for about 45 minutes. “It was terrifying,” she said. 

C., who wasn’t authorized by her hospital to talk to the media, and thus asked me to only use the initial of her first name, said that COVID-19 patients are particularly reliant on electrical devices. She quickly ticked off the machines: “The bed, the IV machine, vital signs monitor, heart monitor, the sequential compression devices...” COVID-19 patients are hooked up to a minimum of five electrical devices, she said, and if the virus-stricken patient needs high-pressure oxygen or a ventilator, the number of electrical devices could be two or three times that number. “You name it, it plugs in,” she said.  

Today In: Energy

The virus has infected some 2.2 million people around the world and killed more than 150,000,including more than 32,000 people here in the U.S. While those numbers are frightening, it is apparent that the toll would be far higher without adequate supplies of reliable electricity. Modern healthcare systems depend on electricity. Hospitals are particularly big consumers. Power demand in hospitals is about 36 watts per square meter, which is about six times higher than the electricity load in a typical American home, and utilities are turning to AI to adapt to electricity demands during surges. 

Beating the coronavirus is all about electricity. Indeed, nearly every aspect of coronavirus detection, testing, and treatment requires juice. Second, it appears that the virus is more deadly in places where electricity is scarce or unreliable. Finally, if there are power outages in virus hotspots or hospitals, a real risk in a grid with more blackouts than other developed countries, the damage will be even more severe. 

As my nurse friend in Ventura County made clear, her ability to provide high-quality care for patients is wholly dependent on reliable electricity. The thermometers used to check for fever are powered by electricity. The monitors she uses to keep track of her patients, as well as her Vocera, the walkie-talkie that she uses to communicate with her colleagues, runs on batteries. Testing for the virus requires electricity. One virus-testing machine, Abbott Labs’ m2000, is a 655-pound appliance that, according to its specification sheet, runs on either 120 or 240 volts of electricity. The operating manual for a ventilator made by Hamilton Medical is chock full of instructions relating to electricity, including how to manage the machine’s batteries and alarms. 

While it may be too soon to make a direct connection between lack of electricity and the lethality of the coronavirus, the early signs from the Navajo reservation indicate that energy poverty amplifies the danger. The sprawling reservation has about 175,000 residents, but it has a higher death toll from the virus than 13 states. About 10 percent of Navajos do not have electricity in their homes and more than 30 percent lack indoor plumbing. 

The death rate from the virus on the reservation now stands at 3.4 percent, which is nearly twice the global average. In the middle of last week, the entire population of Native American tribes in the U.S. accounted for about 1,100 confirmed cases of the virus and about 44 deaths. Navajos accounted for the majority of those, with 830 confirmed cases of coronavirus and 28 deaths. 

On Saturday night, the Navajo Times reported a major increase, with 1,197 positive cases of COVID-19 on the reservation and 44 deaths. Other factors may contribute to the high infection and mortality rates on the reservation, including  high rates of diabetes, obesity, and crowded residential living situations. That said, electricity and water are essential to good hygiene and health authorities say that frequent hand washing helps cut the risk of contracting the virus. 

The devastation happening on Navajoland provides a window into what may happen in crowded, electricity-poor countries like India, Pakistan, and Bangladesh. It also shows what could happen if a tornado or hurricane were to wipe out the electric grid in virus hotspots like New Orleans, as extreme weather increasingly afflicts the grid nationwide. Sure, most American hospitals have backup generators to help assure reliable power. But those generators can fail. Further, they usually burn diesel fuel which needs to be replenished every few days. 

The essential point here is that our hospitals and critical health care machines aren’t running on solar panels and batteries. Instead, they are running on grid power that’s being provided by reliable sources — coal, natural gas, hydro, and nuclear power — which together produce about 89 percent of the electricity consumed in this country, even as Russian hacking of utilities highlights cyber risks. The pandemic — which is inflicting trillions of dollars of damage on our economy and tens of thousands of deaths — underscores the criticality of abundant and reliable electricity to our society and the tremendous damage that would occur if our health care infrastructure were to be hit by extended blackouts during the fight to stop COVID-19.

In a follow-up interview on Saturday with my friend, C., she told me that while caring for patients, she and her colleagues “are entirely dependent on electricity. We take it for granted. It’s a hidden assumption in our work,” a reminder echoed by a grid report card that warns of dangerous vulnerabilities. She quickly added she and her fellow nurses “aren’t trained or equipped to deal with circumstances that would come with shoddy power. If we lost power completely, people will die.”

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Ontario Competitive Energy Procurement accelerates renewables, boosts grid reliability, and invites competitive bids across solar, wind, natural gas, and storage, driving innovation, lower costs, and decarbonization to meet rising electricity demand and ensure power supply.

Key Points

Ontario Competitive Energy Procurement is a competitive bidding program to deliver reliable, low-carbon electricity.

✅ Competitive bids from renewables, gas, and storage

✅ Targets grid reliability, affordability, and emissions

✅ Phased evaluations: technical, financial, environmental

Ontario has recently marked a significant milestone in its energy sector with the launch of what is being touted as the largest competitive energy procurement process in the province’s history. This ambitious initiative is set to transform the province’s energy landscape through a broader market overhaul that fosters innovation, enhances reliability, and addresses the growing demands of Ontario’s diverse population.

A New Era of Energy Procurement

The Ontario government’s move to initiate this massive competitive procurement process underscores a strategic shift towards modernizing and diversifying the province’s energy portfolio. This procurement exercise will invite bids from a broad spectrum of energy suppliers and technologies, ranging from traditional sources like natural gas to renewable energy options such as solar and wind power. The aim is to secure a reliable and cost-effective energy supply that aligns with Ontario’s long-term environmental and economic goals.

This historic procurement process represents a major leap from previous approaches by emphasizing a competitive marketplace where various energy providers can compete on an equal footing through electricity auctions and transparent bidding. By doing so, the government hopes to drive down costs, encourage technological advancements, and ensure that Ontarians benefit from a more dynamic and resilient energy system.

Key Objectives and Benefits

The primary objectives of this procurement initiative are multifaceted. First and foremost, it seeks to enhance the reliability of Ontario’s electricity grid. As the province experiences population growth and increased energy demands, maintaining a stable and dependable supply of electricity is crucial, and interprovincial imports through an electricity deal with Quebec can complement local generation. This procurement process will help identify and integrate new sources of power that can meet these demands effectively.

Another significant goal is to promote environmental sustainability. Ontario has committed to reducing its greenhouse gas emissions through Clean Electricity Regulations and transitioning to a cleaner energy mix. By inviting bids from renewable energy sources and innovative technologies, the government aims to support its climate action plan and contribute to the province’s carbon reduction targets.

Cost-effectiveness is also a central focus of the procurement process. By creating a competitive environment, the government anticipates that energy providers will strive to offer more attractive pricing structures and fair electricity cost allocation practices for ratepayers. This, in turn, could lead to lower energy costs for consumers and businesses, fostering economic growth and improving affordability.

The Competitive Landscape

The competitive energy procurement process will be structured to encourage participation from a wide range of energy providers. This includes not only established companies but also emerging players and startups with innovative technologies. By fostering a diverse pool of bidders, the government aims to ensure that all viable options are considered, ultimately leading to a more robust and adaptable energy system.

Additionally, the process will likely involve various stages of evaluation, including technical assessments, financial analyses, and environmental impact reviews. This thorough evaluation will help ensure that selected projects meet the highest standards of performance and sustainability.

Implications for Stakeholders

The implications of this procurement process extend beyond just energy providers and consumers. Local communities, businesses, and environmental organizations will all play a role in shaping the outcomes. For communities, this initiative could mean new job opportunities and economic development, particularly in regions where new energy projects are developed. For businesses, the potential for lower energy costs and access to innovative energy solutions, including demand-response initiatives like the Peak Perks program, could drive growth and competitiveness.

Environmental organizations will be keenly watching the process to ensure that it aligns with broader sustainability goals. The inclusion of renewable energy sources and advanced technologies will be a critical factor in evaluating the success of the initiative in meeting Ontario’s climate objectives.

Looking Ahead

As Ontario embarks on this unprecedented energy procurement journey, the outcomes will be closely watched by various stakeholders. The success of this initiative will depend on the quality and diversity of the bids received, the efficiency of the evaluation process, and the ability to integrate new energy sources into the existing grid, while advancing energy independence where feasible.

In conclusion, Ontario’s launch of the largest competitive energy procurement process in its history is a landmark event that holds promise for a more reliable, sustainable, and cost-effective energy future. By embracing competition and innovation, the province is setting a new standard for energy procurement that could serve as a model for other regions seeking to modernize their energy systems. The coming months will be crucial in determining how this bold initiative will shape Ontario’s energy landscape for years to come.

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Ontario Nuclear Power Costs highlight LCOE, capex, refurbishment outlays, and waste management, compared with renewables, grid reliability, and emissions targets, informing Australia and Peter Dutton on feasibility, timelines, and electricity prices.

Key Points

They include high capex and LCOE from refurbishments and waste, offset by reliable, low-emission baseload.

✅ Refurbishment and maintenance drive lifecycle and LCOE variability.

✅ High capex and long timelines affect consumer electricity prices.

✅ Low emissions, but waste and safety compliance add costs.

Australian opposition leader Peter Dutton recently lauded Canada’s use of nuclear power as a model for Australia’s energy future. His praise comes as part of a broader push to incorporate nuclear energy into Australia’s energy strategy, which he argues could help address the country's energy needs and climate goals. However, the question arises: Is Ontario’s experience with nuclear power as cost-effective as Dutton suggests?

Dutton’s endorsement of Canada’s nuclear power strategy highlights a belief that nuclear energy could provide a stable, low-emission alternative to fossil fuels. He has pointed to Ontario’s substantial reliance on nuclear power, and the province’s exploration of new large-scale nuclear projects, as an example of how such an energy mix might benefit Australia. The province’s energy grid, which integrates a significant amount of nuclear power, is often cited as evidence that nuclear energy can be a viable component of a diversified energy portfolio.

The appeal of nuclear power lies in its ability to generate large amounts of electricity with minimal greenhouse gas emissions. This characteristic aligns with Australia’s climate goals, which emphasize reducing carbon emissions to combat climate change. Dutton’s advocacy for nuclear energy is based on the premise that it can offer a reliable and low-emission option compared to the fluctuating availability of renewable sources like wind and solar.

However, while Dutton’s enthusiasm for the Canadian model reflects its perceived successes, including recent concerns about Ontario’s grid getting dirtier amid supply changes, a closer look at Ontario’s nuclear energy costs raises questions about the financial feasibility of adopting a similar strategy in Australia. Despite the benefits of low emissions, the economic aspects of nuclear power remain complex and multifaceted.

In Ontario, the cost of nuclear power has been a topic of considerable debate. While the province benefits from a stable supply of electricity due to its nuclear plants, studies warn of a growing electricity supply gap in coming years. Ontario’s experience reveals that nuclear power involves significant capital expenditures, including the costs of building reactors, maintaining infrastructure, and ensuring safety standards. These expenses can be substantial and often translate into higher electricity prices for consumers.

The cost of maintaining existing nuclear reactors in Ontario has been a particular concern. Many of these reactors are aging and require costly upgrades and maintenance to continue operating safely and efficiently. These expenses can add to the overall cost of nuclear power, impacting the affordability of electricity for consumers.

Moreover, the development of new nuclear projects, as seen with Bruce C project exploration in Ontario, involves lengthy and expensive construction processes. Building new reactors can take over a decade and requires significant investment. The high initial costs associated with these projects can be a barrier to their economic viability, especially when compared to the rapidly decreasing costs of renewable energy technologies.

In contrast, the cost of renewable energy has been falling steadily, even as debates over nuclear power’s trajectory in Europe continue, making it a more attractive option for many jurisdictions. Solar and wind power, while variable and dependent on weather conditions, have seen dramatic reductions in installation and operational costs. These lower costs can make renewables more competitive compared to nuclear energy, particularly when considering the long-term financial implications.

Dutton’s praise for Ontario’s nuclear power model also overlooks some of the environmental and logistical challenges associated with nuclear energy. While nuclear power generates low emissions during operation, it produces radioactive waste that requires long-term storage solutions. The management of nuclear waste poses significant environmental and safety concerns, as well as additional costs for safe storage and disposal.

Additionally, the potential risks associated with nuclear power, including the possibility of accidents, contribute to the complexity of its adoption. The safety and environmental regulations surrounding nuclear energy are stringent and require continuous oversight, adding to the overall cost of maintaining nuclear facilities.

As Australia contemplates integrating nuclear power into its energy mix, it is crucial to weigh these financial and environmental considerations. While the Canadian model provides valuable insights, the unique context of Australia’s energy landscape, including its existing infrastructure, energy needs, and the costs of scrapping coal-fired electricity in comparable jurisdictions, must be taken into account.

In summary, while Peter Dutton’s endorsement of Canada’s nuclear power model reflects a belief in its potential benefits for Australia’s energy strategy, the cost-effectiveness of Ontario’s nuclear power experience is more nuanced than it may appear. The high capital and maintenance costs associated with nuclear energy, combined with the challenges of managing radioactive waste and ensuring safety, present significant considerations. As Australia evaluates its energy future, a comprehensive analysis of both the benefits and drawbacks of nuclear power will be essential to making informed decisions about its role in the country’s energy strategy.

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Hydro-Québec $185-Billion Clean Energy Plan accelerates hydroelectric upgrades, wind power expansion, solar and battery storage, pumped storage, and 5,000 km transmission lines to decarbonize Quebec, boost grid resilience, and attract bond financing and Indigenous partnerships.

Key Points

Plan to grow renewables, harden the grid, and fund Quebec's decarbonization with major investments.

✅ $110B new generation, $50B grid resilience by 2035

✅ Triple wind, add solar, batteries, and pumped storage

✅ 5,000 km lines, bond financing, Indigenous partnerships

Hydro-Québec is in the preliminary stages of dialogue with various financiers and potential collaborators to strategize the implementation of a $185-billion initiative aimed at transitioning Quebec away from fossil fuel dependency.

As the leading hydroelectric power producer in Canada, Hydro-Québec is set to allocate up to $110 billion by 2035 towards the development of new clean energy facilities, building on its hydropower capacity expansion in recent years, with an additional $50 billion dedicated to enhancing the resilience of its power grid, as revealed in a strategy announced last November. The remainder of the projected expenditure will cover operational costs.

This ambitious initiative has garnered significant interest from the financial sector, with the province's recent electricity for industrial projects also drawing attention, as noted by CEO Michael Sabia during a conference call with journalists where the utility's annual financial outcomes were discussed. Sabia reported receiving various proposals to fund the initiative, though specific partners were not disclosed. He expressed confidence in securing the necessary capital for the project's success.

Sabia highlighted three immediate strategies to increase power output: identifying new sites for hydroelectric projects while upgrading turbines at existing facilities, such as the Carillon Generating Station upgrade now underway for enhanced efficiency, expanding wind energy production threefold, and promoting energy conservation among consumers to optimize current power usage.

Additionally, Hydro-Québec aims to augment its solar and battery energy production and is planning to establish a pumped-storage hydroelectric plant to support peak demand periods. The utility also intends to construct 5,000 kilometers of new transmission lines, address Quebec-to-U.S. transmission constraints where feasible, and is set to double its capital expenditure to $16 billion annually, a significant increase from the investment levels during the James Bay hydropower project construction in the 1970s and 1980s.

To fund part of this expansive plan, Hydro-Québec will continue to access the bond market, having issued $3.7 billion in notes to investors last year despite facing several operational hurdles due to adverse weather conditions.

For the year 2023, Hydro-Québec reported a net income of $3.3 billion, marking a 28% decrease from the previous year's record of $4.56 billion. Factors such as insufficient snow cover, reduced spring runoff, and higher temperatures resulted in lower water levels in reservoirs, leading to a reduction in power exports and a $547-million decrease in external market sales compared to the previous year.

The utility experienced its lowest export volume in a decade but managed to leverage hedging strategies to secure 10.3 cents per kWh for exported power to markets including New Brunswick via recent NB Power agreements that expand interprovincial deliveries, nearly twice the average market rate, through forward contracts that cover up to half of its export volume for about a year in advance.

The success of Sabia's plan will partly depend on the cooperation of First Nations communities, as the proposed infrastructure developments are likely to traverse their ancestral territories. Relationships with some communities are currently tense, exemplified by the Innu of Labrador's $4-billion lawsuit against Hydro-Québec for damages related to land flooding for reservoir construction, and broader regional tensions in Newfoundland and Labrador that persist in the power sector.

Sabia has committed to involving First Nations and Inuit communities as partners in clean energy ventures, offering them ongoing financial benefits rather than one-off settlements, a principle he refers to as "economic reconciliation."

Recently, the Quebec government reached an agreement with the Innu of Pessamit, pledging $45 million to support local community development. This agreement outlines solutions for managing a nearby hydropower reservoir, such as the La Romaine complex in the region, and includes commitments for wind energy development.

Sabia is optimistic about building stronger, more positive relationships with various Indigenous communities, anticipating significant progress in the coming months and viewing this year as a potential milestone in transforming these relationships for the better.

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California fossil fuel grid reliability plan addresses heat wave demand, rolling blackouts, and grid stability by temporarily procuring gas generation while accelerating renewables, storage, and transmission to meet clean energy and carbon-neutral targets by 2045.

Key Points

A stop-gap policy to prevent blackouts by buying fossil power while fast-tracking renewables, storage, and grid upgrades.

✅ Temporary procurement of gas to avoid rolling blackouts

✅ Accelerates renewables, storage, transmission permitting

✅ Aims for carbon neutrality by 2045 without new gas plants

California wants to quit fossil fuels. Just not yet Faced with a fragile electrical grid and the prospect of summertime blackouts, the state agreed to put aside hundreds of millions of dollars to buy power from fossil fuel plants that are scheduled to shut down as soon as next year.

That has prompted a backlash from environmental groups and lawmakers who say Democratic Gov. Gavin Newsom’s approach could end up extending the life of gas plants that have been on-track to close for more than a decade and could threaten the state’s goal to be carbon neutral by 2045.

“The emphasis that the governor has been making is ‘We’re going to be Climate Leaders; we’re going to do 100 percent clean energy; we’re going to lead the nation and the world,’” said V. John White, executive director of the Sacramento-based Center for Energy Efficiency and Renewable Technologies, a non-profit group of environmental advocates and clean energy companies. “Yet, at least a part of this plan means going the opposite direction.”

That plan was a last-minute addition to the state’s energy budget, which lawmakers in the Democratic-controlled Legislature reluctantly passed. Backers say it’s necessary to avoid the rolling blackouts like the state experienced during a heat wave in 2020. Critics see a muddled strategy on energy, and not what they expected from a nationally ambitious governor who has made climate action a centerpiece of his agenda.

The legislation, which some Democrats labeled as “lousy” and “crappy,” reflects the reality of climate change. Heat waves are already straining power capacity, and the transition to cleaner energy isn’t coming fast enough to meet immediate needs in the nation’s most populous state.

Officials have warned that outages would be possible this summer, as the grid faces heat wave tests again, with as many as 3.75 million California homes losing power in a worst-case scenario of a West-wide heat wave and insufficient electrical supplies, particularly in the evenings.

It’s also an acknowledgment of the political reality that blackout politics are hazardous to elected officials, even in a state dominated by one party.

Newsom emphasized that the money to prop up the power grid, part of a larger $4.3 billion energy spending package, is meant as a stop-gap measure. The bill allows the Department of Water Resources to spend $2.2 billion on “new emergency and temporary generators, new storage systems, clean generation projects, and funding on extension of existing generation operations, if any occur,” the governor said in a statement after signing the bill.

“Action is needed now to maintain reliable energy service as the State accelerates the transition to clean energy,” Newsom said.

Following the signing, the governor called for the state California Air Resources Board to add a set of ambitious goals to its 2022 Scoping Plan, which lays out California’s path for reducing carbon emissions.

Among Newsom’s requested changes is a move away from fossil fuels, asking state agencies to prepare for an energy transition that avoids the need for new natural gas plants.

Alex Stack, a spokesman for the governor, said in a statement that California has been a global leader in reducing pollution and exporting energy policies across Western states, and pointed to Newsom’s recent letter to the Air Resources Board as well as one sent to President Joe Biden outlining how states can work with the federal government to combat climate change.

“California took action to streamline permitting for clean energy projects to accelerate the build out of clean energy that is needed to meet our climate goals and help maintain reliability in the face of extreme heat, wildfires, and drought,” Stack said.

But the prospect of using state money on fossil fuel power, even in the short term, has raised ire among the state’s many environmental advocacy groups, and raised questions about whether California will be able to achieve its goals.

“What is so frustrating about an energy bill like this is that we are at crunch time to meet these goals,” said Mary Creasman, CEO of California Environmental Voters. “And we’re investing a scale of funding into things that exacerbate those goals.”
 
Emmanuelle Chriqui and Mary Creasman speak during the 2021 Environmental Media Association IMPACT Summit at Pendry West Hollywood on September 2, 2021 in West Hollywood, California. | Jesse Grant/Getty Images for Environmental Media Association

With climate change-induced drought and high temperatures continuing to ravage the West, California anticipates the demand on the grid will only continue to grow. Despite more than a decade of bold posturing and efforts to transition to solar, wind and hydropower, the state worries it doesn’t have enough renewable energy sources on hand to keep the power on in an emergency right now, amid a looming shortage that will test reliability.

The specter of power outages poses a hazard to Newsom, and Democrats in general, especially ahead of November. While the governor is widely expected to sail to reelection, rolling blackouts are a serious political liability — in 2003, they were the catalyst for recalling Democratic Gov. Gray Davis. A lack of power isn’t just about people sweating in the dark, said Steven Maviglio, a longtime Democratic consultant who served as communications director for Davis, it can affect businesses, travel and have an outsized impact on the economy.

It behooves any state official to keep the power on, but, unlike Davis, Newsom is under serious pressure to make sure the state also adheres to its climate goals.

“Gavin Newsom’s brand is based on climate change and clean air, so it’s a little more difficult for him to say ‘well that’s not as important as keeping the power on,’” Maviglio said.

The same bill effectively ends local government control over those projects, for the time being. It hopes to speed up the state’s production of renewable energy sources by giving exclusive authority over the siting of those projects to a single state agency for the next seven years.

Environmental advocates say the state is now scrambling to address an issue they’ve long known was coming. In 2010, California officials set a schedule to retire a number of coastal gas plants that rely on what’s known as once-through cooling systems, which are damaging to the environment, especially marine life, even as regulators weigh more power plants to maintain reliability today. Many of those plants have been retired since 2010, but others have received extensions.

The remaining plants have various deadlines for when they must cease operations, with the soonest being the end of 2023.

Also at issue is the embattled Diablo Canyon nuclear power plant, California’s largest electricity source. The Pacific Gas & Electric-owned plant is scheduled to close in 2025, but the strain on the grid has officials considering the possibility of seeking an extension. Newsom said earlier this spring he would be open to extending the life of the plant. Doing so would also require federal approval.

Al Muratsuchi stands and talks into a microphone with a mask on. 
Assemblyman Al Muratsuchi speaks during an Assembly session in Sacramento, Calif., on Jan. 31, 2022. | Rich Pedroncelli/AP Photo

The International Brotherhood of Electrical Workers 1245, a labor union, sees the energy package as a way to preserve Diablo Canyon, and jobs at the plant.

“The value to 1245 PG&E members at Diablo Canyon is clear — funding to keep the plant open,” the union said of the bill.

Assemblymember Al Muratsuchi (D-Los Angeles) criticized the bill as “crappy” when it came to the floor in late June, describing it as “a rushed, unvetted and fossil-fuel-heavy response” to the state’s need to bolster the grid.

“The state has had over 12 years to procure and bring online renewable energy generation to replace these once through cooling gas power plants,” Muratsuchi said. “Yet, the state has reneged on its promise to shut down these plants, not once, but twice already.”

Not all details of the state’s energy budget are final. Lawmakers still have $3.8 billion to allocate when they return on Aug. 1 for the final stretch of the year.

Creasman, at California Environmental Voters, said she wants lawmakers to set specific guidelines for how and where it will spend the $2.2 billion when they return in August to dole out the remaining money in the budget. Newsom and legislators also need to ensure that this is the last time California has to spend money on fossil fuel, she said.

“Californians deserve to see what the plan is to make sure we’re not in this position again of having to choose between making climate impacts worse or keeping our lights on,” Creasman said. “That’s a false choice.”

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