EPA proposes tracking industry emissions

U.S. Power Grid Supply Shortages strain reliability as heat waves, hurricanes, and drought drive peak demand; transformer scarcity, gas constraints, and renewable delays raise outage risks across ERCOT and MISO, prompting FERC warnings.

Key Points

They are equipment and fuel constraints that, amid extreme weather and peak demand, elevate outage risks.

✅ Transformer shortages delay storm recovery and repairs.

✅ Record gas burn, low hydro tighten generation capacity.

✅ ERCOT and MISO warn of rolling outages in heat waves.

U.S. power companies are facing supply crunches amid the U.S. energy crisis that may hamper their ability to keep the lights on as the nation heads into the heat of summer and the peak hurricane season.

Extreme weather events such as storms, wildfires and drought are becoming more common in the United States. Consumer power use is expected to hit all-time highs this summer, reflecting unprecedented electricity demand across the Eastern U.S., which could strain electric grids at a time when federal agencies are warning the weather could pose reliability issues.

Utilities are warning of supply constraints for equipment, which could hamper efforts to restore power during outages. They are also having a tougher time rebuilding natural gas stockpiles for next winter, after the Texas power system failure highlighted cold-weather vulnerabilities, as power generators burn record amounts of gas following the shutdown of dozens of coal plants in recent years and extreme drought cuts hydropower supplies in many Western states.

"Increasingly frequent cold snaps, heat waves, drought and major storms continue to challenge the ability of our nation’s electric infrastructure to deliver reliable affordable energy to consumers," Richard Glick, chairman of the U.S. Federal Energy Regulatory Commission (FERC), said earlier this month.

Federal agencies responsible for power reliability like FERC have warned that grids in the western half of the country could face reliability issues this summer as consumers crank up air conditioners to escape the heat, with nationwide blackout risks not limited to Texas. read more

Some utilities have already experienced problems due to the heat. Texas' grid operator, the Electric Reliability Council of Texas (ERCOT), was forced to urge customers to conserve energy as the Texas power grid faced another crisis after several plants shut unexpectedly during an early heat wave in mid-May. read more

In mid-June, Ohio-based American Electric Power Co (AEP.O) imposed rolling outages during a heat wave after a storm damaged transmission lines and knocked out power to over 200,000 homes and businesses.

The U.S. Midwest faces the most severe risk because demand is rising while nuclear and coal power supplies have declined. read more

The Midcontinent Independent System Operator (MISO), which operates the grid from Minnesota to Louisiana, warned that parts of its coverage area are at increased risk of temporary outages to preserve the integrity of the grid.

Supply-chain issues have already delayed the construction of renewable energy projects across the country, and the aging U.S. grid is threatening progress on renewables and EVs. Those renewable delays coupled with tight power in the Midwest prompted Wisconsin's WEC Energy Group Inc (WEC.N) and Indiana's NiSource Inc (NI.N) to delay planned coal plant shutdowns in recent months.

BRACING FOR SUPPLY SHORTAGES
Utility operators are conserving their inventory of parts and equipment as they plan to prevent summer power outages during severe storms. Over the last several months, that means operators have been getting creative.

"We’re doing a lot more splicing, putting cables together, instead of laying new cable because we're trying to maintain our new cable for inventory when we need it," Nick Akins, chief executive of AEP, said at the CERAWeek energy conference in March.

Transformers, which often sit on top of electrical poles and convert high-voltage energy to the power used in homes, are in short supply.

New Jersey-based Public Service Enterprise Group Inc (PSEG) (PEG.N) Chief Executive Ralph Izzo told Reuters the company has had to look at alternate supply options for low voltage transformers.

"You don’t want to deplete your inventory because you don't know when that storm is coming, but you know it's coming," Izzo said.

Some utilities are facing waiting times of more than a year for transformer parts, the National Rural Electric Cooperative Association and the American Public Power Association told U.S. Energy Secretary Jennifer Granholm in a May letter.

Summer is just starting, but U.S. weather so far this year has already been about 21% warmer than the 30-year norm, according to data provider Refinitiv.

"If we have successive days of 100-degree-heat, those pole top transformers, they start popping like Rice Krispies, and we would not have the supply stack to replace them," Izzo said.

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Scottish Renewable Grid Upgrades address outdated infrastructure, expanding transmission lines, pylons, and substations to move clean energy, meet rising electricity demand, and integrate onshore wind, offshore wind, and battery storage across Scotland.

Key Points

Planned transmission upgrades in Scotland to move clean power via new lines and substations for a low-carbon grid.

✅ Fivefold expansion of transmission lines by 2030

✅ Enables onshore and offshore wind integration

✅ New pylons, substations, and routes face local opposition

Renewable energy in Scotland is being held back by outdated grid infrastructure, industry leaders said, with projects stuck on hold underscoring their warning that new pylons and power lines are needed to "ensure our lights stay on".

Scottish Renewables said new infrastructure is required to transmit the electricity generated by green power sources and help develop "a clean energy future" informed by a broader green recovery agenda.

A new report from the organisation - which represents companies working across the renewables sector - makes the case for electricity infrastructure to be updated, aligning with global network priorities identified elsewhere.

But it comes as electricity firms looking to build new lines or pylons face protests, with groups such as the Strathpeffer and Contin Better Cable Route challenging power giant SSEN over the route chosen for a network of pylons that will run for about 100 miles from Spittal in Caithness to Beauly, near Inverness.

Scottish Renewables said it is "time to be upfront and honest" about the need for updated infrastructure.

It said previous work by the UK National Grid estimated "five times more transmission lines need to be built by 2030 than have been built in the past 30 years, at a cost of more than £50bn".

The Scottish Renewables report said: "Scotland is the UK's renewable energy powerhouse. Our winds, tides, rainfall and longer daylight hours already provide tens of thousands of jobs and billions of pounds of economic activity.

"But we're being held back from doing more by an electricity grid designed for fossil fuels almost a century ago, a challenge also seen in the Pacific Northwest today."

Investment in the UK transmission network has "remained flat, and even decreased since 2017", echoing stalled grid spending trends elsewhere, the report said.

It added: "We must build more power lines, pylons and substations to carry that cheap power to the people who need it - including to people in Scotland.

"Electricity demand is set to increase by 50% in the next decade and double by mid-century, so it's therefore wrong to say that Scottish households don't need more power lines, pylons and substations.

Renewable energy in Scotland is being held back by outdated grid infrastructure, industry leaders said, as they warned new pylons and power lines are needed to "ensure our lights stay on".

Scottish Renewables said new infrastructure is required to transmit the electricity generated by green power sources and help develop "a clean energy future".

A new report from the organisation - which represents companies working across the renewables sector - makes the case for electricity infrastructure to be updated.

But it comes as electricity firms looking to build new lines or pylons face protests, with groups such as the Strathpeffer and Contin Better Cable Route challenging power giant SSEN over the route chosen for a network of pylons that will run for about 100 miles from Spittal in Caithness to Beauly, near Inverness.

Scottish Renewables said it is "time to be upfront and honest" about the need for updated infrastructure.

It said previous work by the UK National Grid estimated "five times more transmission lines need to be built by 2030 than have been built in the past 30 years, at a cost of more than £50bn".

The Scottish Renewables report said: "Scotland is the UK's renewable energy powerhouse. Our winds, tides, rainfall and longer daylight hours already provide tens of thousands of jobs and billions of pounds of economic activity.

"But we're being held back from doing more by an electricity grid designed for fossil fuels almost a century ago."

Investment in the UK transmission network has "remained flat, and even decreased since 2017", the report said.

It added: "We must build more power lines, pylons and substations to carry that cheap power to the people who need it - including to people in Scotland.

"Electricity demand is set to increase by 50% in the next decade and double by mid-century, so it's therefore wrong to say that Scottish households don't need more power lines, pylons and substations.

"We need them to ensure our lights stay on, as excess solar can strain networks in the same way consumers elsewhere in the UK need them.

"With abundant natural resources, Scotland's home-grown renewables can be at the heart of delivering the clean energy needed to end our reliance on imported, expensive fossil fuel.

"To do this, we need a national electricity grid capable of transmitting more electricity where and when it is needed, echoing New Zealand's electricity debate as well."

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Nick Sharpe, director of communications and strategy at Scottish Renewables, said the current electricity network is "not fit for purpose".

He added: "Groups and individuals who object to the construction of power lines, pylons and substations largely do so because they do not like the way they look.

"By the end of this year, there will be just over 70 months left to achieve our targets of 11 gigawatts (GW) offshore and 12 GW onshore wind.

"To ensure we maximise the enormous socioeconomic benefits this will bring to local communities, we will need a grid fit for the 21st century."

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Hornsea One Offshore Wind Farm delivers first power to the UK grid, scaling renewable energy with 1.2GW capacity, giant offshore turbines, and Yorkshire coast infrastructure to replace delayed nuclear and cut fossil fuel emissions.

Key Points

Hornsea One Offshore Wind Farm is a 1.2GW UK project delivering offshore renewable power to about 1 million homes.

✅ 174 turbines over 407 km2; Siemens Gamesa supply chain in the UK

✅ 1.2GW capacity can power ~1m homes; phases scale with 10MW+ turbines

✅ Supports UK grid, replaces delayed nuclear, cuts fossil generation

An offshore windfarm on the Yorkshire coast that will dwarf the world’s largest when completed is to supply its first power to the UK electricity grid this week, mirroring advances in tidal electricity projects delivering to the grid as well.

The Danish developer Ørsted, which has installed the first of 174 turbines at Hornsea One, said it was ready to step up its plans and fill the gap left by failed nuclear power schemes.

The size of the project takes the burgeoning offshore wind power sector to a new scale, on a par with conventional fossil fuel-fired power stations.

Hornsea One will cover 407 square kilometres, five times the size of the nearby city of Hull. At 1.2GW of capacity it will power 1m homes, making it about twice as powerful as today’s biggest offshore windfarm once it is completed in the second half of this year.

“The ability to generate clean electricity offshore at this scale is a globally significant milestone at a time when urgent action needs to be taken to tackle climate change,” said Matthew Wright, UK managing director of Ørsted, the world’s biggest offshore windfarm builder.

The power station is only the first of four planned in the area, with a green light and subsidies already awarded to a second stage due for completion in the early 2020s, and interest from Japanese utilities underscoring growing investor appetite.

The first two phases will use 7MW turbines, which are taller than London’s Gherkin building.

But the latter stages of the Hornsea development could use even more powerful, 10MW-plus turbines. Bigger turbines will capture more of the energy from the wind and should lower costs by reducing the number of foundations and amount of cabling firms need to put into the water, with developers noting that offshore wind can compete with gas in the U.S. as costs fall.

Henrik Poulsen, Ørsted’s chief executive, said he was in close dialogue with major manufacturers to use the new generation of turbines, some of which are expected to approach the height of the Shard in London, the tallest building in the EU.

The UK has a great wind resource and shallow enough seabed to exploit it, and could even “power most of Europe if it [the UK] went to the extreme with offshore”, he said.

Offshore windfarms could help ministers fill the low carbon power gap created by Hitachi and Toshiba scrapping nuclear plants, the executive suggested. “If nuclear should play less of a role than expected, I believe offshore wind can step up,” he said.

New nuclear projects in Europe had been “dramatically delayed and over budget”, he added, in comparison to “the strong track record for delivering offshore [wind]”.

The UK and Germany installed 85% of new offshore wind power capacity in the EU last year, according to industry data, with wind leading power across several markets. The average power rating of the turbines is getting bigger too, up 15% in 2018.

The turbines for Hornsea One are built and shipped from Siemens Gamesa’s factory in Hull, part of a web of UK-based suppliers that has sprung up around the growing sector, such as Prysmian UK's land cables supporting grid connections.

Around half of the project’s transition pieces, the yellow part of the structure that connects the foundation to the tower, are made in Teeside. Many of the towers themselves are made by a firm in Campbeltown in the Scottish highlands. Altogether, about half of the components for the project are made in the UK.

Ørsted is not yet ready to bid for a share of a £60m pot of further offshore windfarm subsidies, to be auctioned by the government this summer, but expects the price to reach even more competitive levels than those seen in 2017.

Like other international energy companies, Ørsted has put in place contingency planning in event of a no-deal Brexit – but the hope is that will not come to pass. “We want a Brexit deal that will facilitate an orderly transition out of the union,” said Poulsen.

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Power plant staff sequestration isolates essential operators on-site at plants and control centers, safeguarding critical infrastructure and grid reliability during the COVID-19 pandemic under DHS CISA guidance, with social distancing, offset shifts, and stockpiled supplies.

Key Points

A protocol isolating essential grid workers on-site to maintain operations at plants and control centers.

✅ Ensures grid reliability and continuity of critical infrastructure

✅ Implements social distancing, offset shifts, and isolation protocols

✅ Stockpiles food, beds, PPE, and sanitation for essential crews

The U.S. electric industry may ask essential staff to live on site at power plants and control centers to keep operations running if the coronavirus outbreak worsens, after a U.S. grid warning from the overseer, and has been stockpiling beds, blankets, and food for them, according to industry trade groups and electric cooperatives.

The contingency plans, if enacted, would mark an unprecedented step by power providers to keep their highly-skilled workers healthy as both private industry and governments scramble to minimize the impact of the global pandemic that has infected more than 227,000 people worldwide, with some utilities such as BC Hydro at Site C reporting COVID-19 updates as the situation evolves.

“The focus needs to be on things that keep the lights on and the gas flowing,” said Scott Aaronson, vice president of security and preparedness at the Edison Electric Institute (EEI), the nation’s biggest power industry association. He said that some “companies are already either sequestering a healthy group of their essential employees or are considering doing that and are identifying appropriate protocols to do that.”

Maria Korsnick, president of the Nuclear Energy Institute, said that some of the nation’s nearly 60 nuclear power plants are also “considering measures to isolate a core group to run the plant, stockpiling ready-to-eat meals and disposable tableware, laundry supplies and personal care items.”

Neither group identified specific companies, though nuclear worker concerns have been raised in some cases.

Electric power plants, oil and gas infrastructure and nuclear reactors are considered “critical infrastructure” by the federal government, and utilities continue to emphasize safety near downed lines even during emergencies. The U.S. Department of Homeland Security is charged with coordinating plans to keep them operational during an emergency.

A DHS spokesperson said that its Cybersecurity and Infrastructure Security Agency had issued guidance to local governments and businesses on Thursday asking them to implement policies to protect their critical staff from the virus, even as an EPA telework policy emerged during the pandemic.

“When continuous remote work is not possible, businesses should enlist strategies to reduce the likelihood of spreading the disease,” the guidance stated. “This includes, but is not necessarily limited to, separating staff by off-setting shift hours or days and/or social distancing.”

Public health officials have urged the public to practice social distancing as a preventative measure to slow the spread of the virus, and as more people work from home, rising residential electricity use is being observed alongside daily routines. If workers who are deemed essential still leave, go to work and return to their homes, it puts the people they live with at risk of exposure. 

California has imposed a statewide shutdown, asking all citizens who do not work in those critical infrastructure industries not to leave their homes, a shift that may raise household electricity bills for consumers. Similar actions have been put in place in cities across America.

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COVID-19 Impact on U.S. Wind Industry: disrupting wind power projects, tax credits, and construction timelines, risking rural revenues, jobs, and $35B investments; AWEA seeks Congressional flexibility as OEM shutdowns like Siemens Gamesa intensify delays.

Key Points

Pandemic disruptions threaten 25 GW of projects, $35B investment, rural revenues, jobs, and tax-credit timelines.

✅ 25 GW at risk; $35B investment jeopardized

✅ Rural taxes and land-lease payments may drop $8B

✅ AWEA seeks Congressional flexibility on tax-credit deadlines

In one of the latest examples of the havoc that the novel coronavirus is wreaking on the U.S. economy and the crisis hitting solar and wind sector alike, the American Wind Energy Association (AWEA) -- the national trade association for the U.S. wind industry -- yesterday stated its concerns that COVID-19 will "pose significant challenges to the American wind power industry." According to AWEA's calculations, the disease is jeopardizing the development of approximately 25 gigawatts of wind projects, representing $35 billion in investments, even as wind additions persist in some markets amid the pandemic.

Rural communities, where about 99% of wind projects are located, in particular, face considerable risk. The AWEA estimates that rural communities stand to lose about $8 billion in state and local tax payments and land-lease payments to private landowners. In addition, it's estimated that the pandemic threatens the loss of over 35,000 jobs, and the U.S. wind jobs outlook underscores the stakes, including wind turbine technicians, construction workers, and factory workers.

The development of wind projects is heavily reliant on the earning of tax credits, and debates over a Solar ITC extension highlight potential impacts on wind. However, in order to qualify for the current credits, project developers are bound to begin construction before Dec. 31, 2020. With local and state governments implementing various measures to stop the spread of the virus, the success of project developers' meeting this deadline is dubious, as utility-scale solar construction slows nationwide due to COVID-19. Addressing this and other challenges, the AWEA is turning to the government for help. In the trade association's press release, it states that "to protect the industry and these workers, AWEA is asking Congress for flexibility in allowing existing policies to continue working for the industry through this period of uncertainty."

Illustrating one of the ways in which COVID-19 is affecting the industry, Siemens Gamesa, a global leader in the manufacturing of wind turbines, closed a second Spanish factory this week after learning that a second of its employees had tested positive for the novel coronavirus.

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Alberta Energy-Only Electricity Market faces capacity market debate, AESO price cap review, and coal-to-gas shifts by TransAlta and Capital Power, balancing reliability with volatility as investment signals evolve across Alberta's grid.

Key Points

An energy market paying generators only for electricity sold, with AESO oversight and a price cap guiding new capacity.

✅ AESO reviewing $999 per MW-h wholesale price cap.

✅ UCP retained energy-only; capacity market plan cancelled.

✅ TransAlta and Capital Power shift to coal-to-gas.

The Kenney government’s decision to cancel the redesign of Alberta’s electricity system to a capacity market won’t side-track two of the province’s largest power generators from converting coal-fired facilities to burn natural gas as part of Alberta’s shift from coal to cleaner energy overall.

But other changes could be coming to the province’s existing energy-only electricity market — including the alteration of the $999 per megawatt-hour (MW-h) wholesale price cap in Alberta.

The heads of TransAlta Corp. and Capital Power Corp. are proceeding with strategies to convert existing coal-fired power generating facilities to use natural gas in the coming years.

Calgary-based TransAlta first announced in 2017 that it would make the switch, as the NDP government was in the midst of overhauling the electricity sector and wind generation began to outpace coal in the province.

At the time, the Notley government planned to phase out coal-fired power by 2030, even as Alberta moved to retire coal by 2023 in practice, and shift Alberta into an electricity capacity market in 2021.

Such a move, made on the recommendation of the Alberta Electric System Operator (AESO), was intended to reduce price volatility and ensure system reliability.

Under the energy-only market, generators receive payments for electricity produced and sold into the grid. In a capacity market, generators are also paid for having power available on demand, regardless of how often they sell energy into the provincial grid.

The UCP government decided last month to ditch plans for a capacity market after consulting with the sector, saying it would be better for consumers.

On a conference call, TransAlta CEO Dawn Farrell said the company will convert coal-fired generating plants to burn gas, although it may alter the mix between simple conversions and switching to so-called “hybrid” plants.

(A hybrid conversion is a larger and more-expensive switch, as it includes installing a new gas turbine and heat-recovery steam generator, but it creates a highly efficient combined cycle unit.)

“Our view is fundamentally that carbon will be priced over the next 20 years no matter what,” she said Friday.

“We cannot get off coal fast enough in this company, and gas right now in Alberta is extremely inexpensive…

“So our coal-to-gas strategy is completely predicated on our belief that it’s not smart to be in carbon-intensive fuels for the future.”

Elsewhere in Canada, the Stop the Shock campaign has advocated for reviving coal power, underscoring ongoing policy debates.

The company said it’s planning the coal-to-gas conversion and re-powering of some or all of the units at its Keephills and Sundance facilities to gas-fired generation sometime between 2020 and 2023.

Similarly, Capital Power CEO Brian Vaasjo said the Edmonton-based company is moving ahead with a project that will allow it to burn both coal and natural gas at its Genesee generating station, even as Ontario’s energy minister sought to explore a halt to natural gas generation elsewhere.

In June, the company announced it would spend an estimated $50 million between 2019 and 2021 to allow it to use gas at the facility.

“What we’re doing is going to be dual fuel, so we will be able to operate 100 per cent natural gas or 100 per cent coal and everything in between,” Vaasjo said in an interview.

“You can expect to see we will be burning coal in the winter when natural gas prices are high, and we will be burning natural gas in summer when gas prices are real low.”

The transition comes as the government’s decision to stick with the energy-only market has been welcomed by players in the industry, and as Alberta's electricity future increasingly leans on wind resources.

A study by electricity consultancy EDC Associates found the capacity market would result in consumers paying an extra $1.4 billion in direct costs in 2021-22, as it required more generation to come online earlier than expected.

These additional costs would have accumulated to $10 billion by 2030, said EDC chief executive Duane-Reid Carlson.

For Capital Power, the decision to stick with the current system makes the province more investable in the future. Vaasjo said there was great uncertainty about the transition to a capacity market, and the possibility of rules shifting further.

Officials with Enmax Corp. said the city-owned utility would not have invested in future generation under the proposed capacity market.

“There is no short-term need (today) for new generation, so we’re just looking at the market and saying, ‘OK, as it evolves, we will see what happens,’” said Enmax vice-president Tim Boston.

Sticking with the energy-only market doesn’t mean Alberta will keep the existing rules.

In a July 25 letter, Alberta Energy Minister Sonya Savage directed AESO chair Will Bridge to examine if changes to the existing market are needed and report back by July 2020.

AESO, which manages the power grid, has been asked to investigate whether the current price cap of $999 per megawatt-hour (MW-h) should be changed.

The price ceiling hasn’t been altered since the energy-only market was implemented by the Klein government about two decades ago.

While allowing prices to go higher would increase volatility, reflecting lessons from Europe’s power crisis about scarcity pricing, during periods of rising demand and limited supply, it would send a signal to generators when investment in new generation is required, said Kent Fellows, a research associate at the University of Calgary’s School of Public Policy.

“Keeping the price (cap) too low could end up costing us more in the long run,” he said.

In a 2016 report, AESO said the province examined raising the price cap to $5,000 per MW-h, but “determined that it was unlikely to be successful in attracting investment due to increased price volatility.”

However, the amount of future generation that will be required in Alberta has been scaled back by the province.

In the United States, the Electricity Reliability Council of Texas (ERCOT) allows wholesale power prices in the state to climb to a cap of $9,000 per megawatt hours as demand rises — as it did Tuesday in the midst of a heat wave, according to Bloomberg.

Jim Wachowich, legal counsel for the Consumers’ Coalition of Alberta, said while few players are exposed to spot electricity prices, he has yet to be convinced raising the cap would be good for Albertans.

“Someone has to show me the evidence, and I suspect that’s what the minister has asked the AESO to do,” he said.

Generators say they believe some tinkering is needed to the energy-only market to ensure new generation is built when it’s required.

“The No. 1 change that the government has to … think about is in pricing,” added Farrell.

“If you don’t have enough of a price signal in an energy-only market to attract new capital, you won’t get new capital — and you’ll run up against the wall.”

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