Heatwave Sparks Unprecedented Electricity Demand Across Eastern U.S

Electricity Investment Surpasses Oil and Gas 2016, driven by renewable energy, power grids, and energy efficiency, as IEA reports lower oil and gas spending, rising solar and wind capacity, and declining coal power plant approvals.

Key Points

A 2016 milestone where electricity topped global energy investment, led by renewables, grids, and efficiency, per the IEA.

✅ IEA: electricity investment hit $718b; oil and gas fell to $650b.

✅ Renewables led with $297b; solar and wind unit costs declined.

✅ Coal plant approvals plunged; networks and storage spending rose.

Investments in electricity surpassed those in oil and gas for the first time ever in 2016 on a spending splurge on renewable energy and power grids as the fall in crude prices led to deep cuts, the International Energy Agency (IEA) said.

Total energy investment fell for the second straight year by 12 per cent to US$1.7 trillion compared with 2015, the IEA said. Oil and gas investments plunged 26 per cent to US$650 billion, down by over a quarter in 2016, and electricity generation slipped 5 per cent.

"This decline (in energy investment) is attributed to two reasons," IEA chief economist Laszlo Varro told journalists.

"The reaction of the oil and gas industry to the prolonged period of low oil prices which was a period of harsh investment cuts; and technological progress which is reducing investment costs in both renewable power and in oil and gas," he said.

Oil and gas investment is expected to rebound modestly by 3 per cent in 2017, driven by a 53 per cent upswing in U.S. shale, and spending in Russia and the Middle East, the IEA said in a report.

"The rapid ramp up of U.S. shale activities has triggered an increase of U.S. shale costs of 16 per cent in 2017 after having almost halved from 2014-16," the report said.

The global electricity sector, however, was the largest recipient of energy investment in 2016 for the first time ever, overtaking oil, gas and coal combined, the report said.

"Robust investments in renewable energy and increased spending in electricity networks, which supports the outlook that low-emissions sources will cover most demand growth, made electricity the biggest area of capital investments," Varro said.

Electricity investment worldwide was US$718 billion, lifted by higher spending in power grids which offset the fall in power generation investments.

"Investment in new renewables-based power capacity, at US$297 billion, remained the largest area of electricity spending, despite falling back by 3 per cent as clean energy investment in developing nations slipped, the report said."

Although renewables investments was 3 per cent lower than five years ago, capacity additions were 50 per cent higher and expected output from this capacity about 35 per cent higher, thanks to the fall in unit costs and technology improvements in solar PV and wind generation, the IEA said.

COAL INVESTMENT IS COMING TO AN END

Investments in coal-fired electricity plants fell sharply. Sanctioning of new coal power plants fell to the lowest level in nearly 15 years, reflecting concerns about local air pollution, and emergence of overcapacity and competition from renewables, with renewables poised to eclipse coal in global power generation, notably in China. Coal investments, however, grew in India.

"Coal investment is coming to an end. At the very least, it is coming to a pause," Varro said.

The IEA report said energy efficiency investments continued to expand in 2016, reaching US$231 billion, with most of it going to the building sector globally.

Electric vehicles sales rose 38 per cent in 2016 to 750,000 vehicles at $6 billion, and represented 10 per cent of all transport efficiency spending. Some US$6 billion was spent globally on electronic vehicle charging stations, the IEA said.

Spending on electricity networks and storage continued the steady rise of the past five years, as surging electricity demand puts power systems under strain, reaching an all-time high of US$277 billion in 2016, with 30 per cent of the expansion driven by China’s spending in its distribution system, the report said.

China led the world in energy investments with 21 per cent of global total share, the report said, driven by low-carbon electricity supply and networks projects.

Although oil and gas investments fell in the United States in 2016, its total energy investments rose 16 per cent, even as Americans use less electricity in recent years, on the back of spending in renewables projects, the IEA report said.

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Eastern Kings Wind Farm Expansion advances P.E.I. renewable energy with seven new wind turbines, environmental assessment, wildlife monitoring of birds and bats, and community consultation to double output to 30 MW for domestic consumption.

Key Points

A P.E.I. project adding seven turbines for 30 MW, under 17 conditions, with wildlife monitoring and community oversight.

✅ Seven new turbines, larger than existing units

✅ 17 conditions, monthly compliance reporting

✅ Two-year wildlife study for birds and bats

A proposal to expand an existing wind farm in eastern P.E.I. has been given the go-ahead, according to P.E.I.’s Department of Environment, Water and Climate Change, as related grid work like a new transmission line progresses in the region.

Minister Natalie Jameson approved the P.E.I. Energy Corporation’s Eastern Kings Wind Farm expansion project, the province announced in a release Wednesday afternoon, as Atlantic Canada advances other renewable initiatives like tidal power to diversify supply.

The project will be subject to 17 conditions, which were drawn from a review of the 80 responses the province received from the public on the proposed Eastern Kings Wind Farm expansion.

The corporation must provide a summary on the status of each condition to the department on a monthly basis.

“This decision balances the needs of people, communities, wellness and the environment,” Jameson said in the release.

“It allows this renewable energy project to proceed and reduce greenhouse [gas] emissions that cause climate change while mitigating the project’s impact to the Island’s ecosystem.”

The P.E.I. Energy Corporation wants to double the output of its Eastern Kings Wind Farm with the installation of seven wind turbines between the communities of Elmira and East Point to develop 30 megawatts of wind power for domestic consumption, according to the minister’s impact assessment, aligning with regional moves to expand wind and solar projects across Atlantic Canada.

The new turbines are expected to be larger than the existing 10 at the site, even as regional utilities study major grid changes to integrate more renewables.

Project must comply with conditions

In February, the province said it would identify any specific questions or concerns it felt needed to be addressed in the submissions, according to Greg Wilson, manager of environmental land management for the province, while some advocate for independent electricity planning to guide such decisions.

Public feedback closed in January, after an earlier extension to wait for a supplemental report on birds and bats.

The corporation needs to comply with all conditions – such as monitoring environmental impact, setting up an environmental management plan and creating a committee to address concerns – listed in the release on Wednesday, amid calls from environmental advocates to reduce biomass use in electricity generation.

A condition in the release suggests representatives from L’nuey, the Souris and Area Wildlife Branch, the Rural Municipality of Eastern Kings and local residents to make up the committee.

The corporation will also need to conduct a study over two years after construction to look at the impact on bats and birds, and implement a protocol to report deaths of birds to federal and provincial authorities.

According to Canada Energy Regulator, roughly 98 per cent of power generated on P.E.I. comes from wind farms. It also said there were 203 megawatts installed on P.E.I. as of 2018, and the majority of energy consumed on the Island comes from New Brunswick from a mix of nuclear, fossil fuels and hydroelectricity, while in Nova Scotia, the utility has increased biomass generation as part of its supply mix.

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Proton Conducting Fuel Cells enable reversible hydrogen energy storage, coupling electrolyzers and fuel cells with ceramic catalysts and proton-conducting membranes to convert wind and solar electricity into fuel and back to reliable grid power.

Key Points

Proton conducting fuel cells store renewable power as hydrogen and generate electricity using reversible catalysts.

✅ Reversible electrolysis and fuel-cell operation in one device

✅ Ceramic air electrodes hit up to 98% splitting efficiency

✅ Scalable path to low-cost grid energy storage with hydrogen

If we want a shot at transitioning to renewable energy, we’ll need one crucial thing: technologies that can convert electricity from wind, sun, and even electricity from raindrops into a chemical fuel for storage and vice versa. Commercial devices that do this exist, but most are costly and perform only half of the equation. Now, researchers have created lab-scale gadgets that do both jobs. If larger versions work as well, they would help make it possible—or at least more affordable—to run the world on renewables.

The market for such technologies has grown along with renewables: In 2007, solar and wind provided just 0.8% of all power in the United States; in 2017, that number was 8%, according to the U.S. Energy Information Administration. But the demand for electricity often doesn’t match the supply from solar and wind, a key reason why the U.S. grid isn't 100% renewable today. In sunny California, for example, solar panels regularly produce more power than needed in the middle of the day, but none at night, after most workers and students return home.

Some utilities are beginning to install massive banks of cheaper solar batteries in hopes of storing excess energy and evening out the balance sheet. But batteries are costly and store only enough energy to back up the grid for a few hours at most. Another option is to store the energy by converting it into hydrogen fuel. Devices called electrolyzers do this by using electricity—ideally from solar and wind power—to split water into oxygen and hydrogen gas, a carbon-free fuel. A second set of devices called fuel cells can then convert that hydrogen back to electricity to power cars, trucks, and buses, or to feed it to the grid.

But commercial electrolyzers and fuel cells use different catalysts to speed up the two reactions, meaning a single device can’t do both jobs. To get around this, researchers have been experimenting with a newer type of fuel cell, called a proton conducting fuel cell (PCFC), which can make fuel or convert it back into electricity using just one set of catalysts.

PCFCs consist of two electrodes separated by a membrane that allows protons across. At the first electrode, known as the air electrode, steam and electricity are fed into a ceramic catalyst, which splits the steam’s water molecules into positively charged hydrogen ions (protons), electrons, and oxygen molecules. The electrons travel through an external wire to the second electrode—the fuel electrode—where they meet up with the protons that crossed through the membrane. There, a nickel-based catalyst stitches them together to make hydrogen gas (H2). In previous PCFCs, the nickel catalysts performed well, but the ceramic catalysts were inefficient, using less than 70% of the electricity to split the water molecules. Much of the energy was lost as heat.

Now, two research teams have made key strides in improving this efficiency, and a new fuel cell concept brings biological design ideas into the mix. They both focused on making improvements to the air electrode, because the nickel-based fuel electrode did a good enough job. In January, researchers led by chemist Sossina Haile at Northwestern University in Evanston, Illinois, reported in Energy & Environmental Science that they came up with a fuel electrode made from a ceramic alloy containing six elements that harnessed 76% of its electricity to split water molecules. And in today’s issue of Nature Energy, Ryan O’Hayre, a chemist at the Colorado School of Mines in Golden, reports that his team has done one better. Their ceramic alloy electrode, made up of five elements, harnesses as much as 98% of the energy it’s fed to split water.

When both teams run their setups in reverse, the fuel electrode splits H2 molecules into protons and electrons. The electrons travel through an external wire to the air electrode—providing electricity to power devices. When they reach the electrode, they combine with oxygen from the air and protons that crossed back over the membrane to produce water.

The O’Hayre group’s latest work is “impressive,” Haile says. “The electricity you are putting in is making H2 and not heating up your system. They did a really good job with that.” Still, she cautions, both her new device and the one from the O’Hayre lab are small laboratory demonstrations. For the technology to have a societal impact, researchers will need to scale up the button-size devices, a process that typically reduces performance. If engineers can make that happen, the cost of storing renewable energy could drop precipitously, thereby moving us closer to cheap abundant electricity at scale, helping utilities do away with their dependence on fossil fuels.

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California Rooftop Solar Cost Shift examines PG&E rate hikes, net metering changes, and utility infrastructure spending impacts on low-income households, distributed generation, and clean energy adoption, potentially raising bills and undermining grid resilience.

Key Points

A claim that rooftop solar shifts fixed grid costs to others; critics cite PG&E rates, avoided costs, and impacts.

✅ PG&E rates outpace national average, underscoring cost drivers.

✅ Net metering cuts risk burdening low- and middle-income homes.

✅ Distributed generation avoids infrastructure spend and grid strain.

California is grappling with soaring electricity prices across the state, with Pacific Gas & Electric (PG&E) rates more than double the national average and increasing at an average of 12.5% annually over the past six years. In response, Governor Gavin Newsom issued an executive order directing state energy agencies to identify ways to reduce power costs. However, recent policy shifts targeting rooftop solar users may exacerbate the problem rather than alleviate it.

The "Cost Shift" Theory

A central justification for these pricing changes is the "cost shift" theory. This theory posits that homeowners with rooftop solar panels reduce their electricity consumption from the grid, thereby shifting the fixed costs of maintaining and operating the electrical grid onto non-solar customers. Proponents argue that this leads to higher rates for those without solar installations.

However, this theory is based on a flawed assumption: that PG&E owns 100% of the electricity generated by its customers and is entitled to full profits even for energy it does not deliver. In reality, rooftop solar users supply only about half of their energy needs and still pay for the rest. Moreover, their investments in solar infrastructure reduce grid strain and save ratepayers billions by avoiding costly infrastructure projects and reducing energy demand growth, aligning with efforts to revamp electricity rates to clean the grid as well.

Impact on Low- and Middle-Income Households

The majority of rooftop solar users are low- and middle-income households. These individuals often invest in solar panels to lower their energy bills and reduce their carbon footprint. Policy changes that undermine the financial viability of rooftop solar disproportionately affect these communities, and efforts to overturn income-based charges add uncertainty about affordability and access.

For instance, Assembly Bill 942 proposes to retroactively alter contracts for millions of solar consumers, cutting the compensation they receive from providing energy to the grid, raising questions about major changes to your electric bill that could follow if their home is sold or transferred. This would force those with solar leases—predominantly lower-income individuals—to buy out their contracts when selling their homes, potentially incurring significant financial burdens.

The Real Drivers of Rising Energy Costs

While rooftop solar users are being blamed for rising electricity rates, calls for action have mounted as the true culprits lie elsewhere. Unchecked utility infrastructure spending has been a significant factor in escalating costs. For example, PG&E's rates have increased rapidly, yet the utility's spending on infrastructure projects has often been criticized for inefficiency and lack of accountability. Instead of targeting solar users, policymakers should scrutinize utility profit motives and infrastructure investments to identify areas where costs can be reduced without sacrificing service quality.

California's approach to addressing rising electricity costs by targeting rooftop solar users is misguided. The "cost shift" theory is based on flawed assumptions and overlooks the substantial benefits that rooftop solar provides to the grid and ratepayers. To achieve a sustainable and equitable energy future, the state must focus on controlling utility spending, promoting clean energy access for all, especially as it exports its energy policies across the West, and ensuring that policies support—not undermine—the adoption of renewable energy technologies.

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White Pines Project cancellation highlights Ontario's wind farm contract dispute in Prince Edward County, involving IESO approvals, Progressive Conservatives' legislation, potential court action, and costs to ratepayers amid green energy policy shifts.

Key Points

The termination effort for Ontario's White Pines wind farm contract, triggering legal, legislative, and cost disputes.

✅ Contract with IESO dates to 2009; final approval during election

✅ PCs seek legislation insulating taxpayers from litigation

✅ Cancellation could exceed $100M; cost impact on ratepayers

Cancelling an eastern Ontario green energy project that has been under development for nearly a decade could cost more than $100 million, the president of the company said Wednesday, warning that the dispute could be headed to the courts.

Ontario's governing Progressive Conservatives said this week that one of their first priorities during the legislature's summer sitting would be to cancel the contract for the White Pines Project in Prince Edward County.

Ian MacRae, president of WPD Canada, the company behind the project, said he was stunned by the news given that the project is weeks away from completion.

"What our lawyers are telling us is we have a completely valid contract that we've had since 2009 with the (Independent Electricity System Operator). ... There's no good reason for the government to breach that contract," he said.

The government has also not reached out to discuss the cancellation, he said. Meanwhile, construction on the site is in full swing, he said.

"Over the last couple weeks we've had an average of 100 people on site every day," he said. "The footprint of the project is 100 per cent in. So, all the access roads, the concrete for the base foundations, much of the electrical infrastructure. The sub-station is nearing completion."

The project includes nine wind turbines meant to produce enough electricity to power just over 3,000 homes annually, even as Ontario looks to build on an electricity deal with Quebec for additional supply. All of the turbines are expected to be installed over the next three weeks, with testing scheduled for the following month.

MacRae couldn't say for certain who would have to pay for the cancellation, electricity ratepayers or taxpayers.

"Somehow that money would come from IESO and it would be my assumption that would end up somehow on the ratepayers, despite legislation to lower electricity rates now in place," he said. "We just need to see what the government has in mind and who will foot the bill."

Progressive Conservative house leader Todd Smith, who represents the riding where the project is being built, said the legislation to cancel the project will also insulate taxpayers from domestic litigation over the dismantling of green energy projects.

"This is something that the people of Prince Edward County have been fighting ... for seven years," he said. "This shouldn't have come as a surprise to anybody that this was at the top of the agenda for the incoming government, which has also eyed energy independence in recent decisions."

Smith questioned why Ontario's Independent Electricity System Operator gave the final approval for the project during the spring election campaign.

"There's a lot of questions about how this ever got greenlighted in the first place," he said. "This project was granted its notice to proceed two days into the election campaign ... when (the IESO) should have been in the caretaker mode."

Terry Young, the IESO's vice president of policy, engagement and innovation, said the agency could not comment because of the pending introduction of legislation to cancel the deal, following a recent auditor-regulator dispute that drew attention to oversight.

NDP Leader Andrea Horwath said the new Tory government is behaving like the previous Liberal government by cancelling energy projects and tearing up contracts amid ongoing debates over Ontario's hydro mess and affordability. She likened the Tory plan to the Liberal gas plant scandal that saw the government relocate two plants at a substantial cost to taxpayers.

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Hydro Quebec transmission expansion aims to move surplus hydroelectric capacity from record reservoirs to the US grid via new interties, increasing exports to New England and New York amid rising winter peak demand.

Key Points

A plan to add capacity and intertie links to export surplus hydro power from Quebec's reservoirs to the US grid.

✅ 245 MW added in 2021; portfolio reaches 37,012 MW

✅ Reservoirs at unprecedented levels; export potential high

✅ Lacks US transmission; working on new interties

Hydro Quebec plans to add an incremental 245 MW of hydro-electric generation capacity in 2021 to its expansive portfolio in the north of the province, while Quebec authorized nearly 1,000 MW for industrial projects across the region, bringing the total capacity to 37,012 MW, an official said Friday

Quebec`s highest peak demand of 39,240 MW occurred on January 22, 2014.

A little over 75% of Quebec`s population heat their homes with electricity, Sutherland said, aligning with Hydro Quebec's strategy to wean the province off fossil fuels over time.

The province-owned company produced 205.1 TWh of power in 2017 and its net exports were 34.4 TWh that year, while Ontario chose not to renew a power deal in a separate development.

Sutherland said Hydro Quebec`s reservoirs are currently at "unprecedented levels" and the company could export more of its electricity to New England and New York, but faces transmission constraints that limit its ability to do so.

Hydro Quebec is working with US transmission developers, electric distribution companies, independent system operators and state government agencies to expand that transmission capacity in order to delivery more power from its hydro system to the US, Sutherland said.

Separately, NB Power signed three deals to bring more Quebec electricity into the province, reflecting growing regional demand.

The last major intertie connection between Quebec and the US was completed close to 30 years ago. The roughly 2,000 MW capacity transmission line that connects into the Boston area was completed in the late 1990s, according to Hydro Quebec spokeswoman Lynn St-Laurent.

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