NERC reports on summer peak demands

By North American Electric Reliability Corporation


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ATLANTA – Most of North America has sufficient resources available to meet summer peak demands, the North American Electric Reliability Corporation’s NERC 2012 Summer Reliability Assessment finds. However, planning reserve margins in the Electric Reliability Council of Texas ERCOT assessment area are projected to be below the NERC Reference Margin Level, the threshold by which resource adequacy is measured.

In California, reserves are projected to be tight, but manageable, through the summer months.

"Reduced planning reserves in certain areas will challenge operations this summer," said Mark Lauby, vice president and director of Reliability Assessment and Performance Analysis. "NERC has reviewed the operating procedures and preparations in the assessment areas, and in most areas they appear to be sufficient to meet these challenges."

Since summer 2011, capacity resources have grown across North America by approximately 12,310 megawatts, most notably within the SERC Reliability Corporation and the Northeast Power Coordinating Council areas. Compared to the 2011 projections, NERC-wide total peak demand forecast is 3,700 MW lower. The largest increase in peak demand is expected in ERCOT, where a 1.7 percent increase is projected.

"With continued growth in peak demand and only a small amount of new generation coming online, resource adequacy levels in ERCOT have fallen below targets," said John Moura, manager of Reliability Assessment at NERC.

"If ERCOT experiences stressed system conditions or record-breaking electricity demand due to extreme and prolonged high temperatures, system operators will most likely rely on demand response and emergency operating procedures, which may include initiating rotating outages to maintain the reliability of the interconnection," Moura added."

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Magnitude 5 quake strikes near Iran nuclear plant

Iran Bushehr Earthquake rattles southern province near the Bushehr nuclear power plant, USGS reports M5.1 at 38 km depth; seismic activity along major fault lines raises safety, damage, and monitoring concerns.

 

Key Points

A magnitude 5.1 quake near Bushehr nuclear plant at 38 km depth, with no damage reported, per USGS.

✅ USGS lists magnitude 5.1 at 38 km depth

✅ Near Bushehr nuclear power plant; built for stronger quakes

✅ Iran lies on major fault lines; quake risk is frequent

 

A magnitude 5 earthquake struck southern Iran early Friday near the Islamic Republic's only nuclear power plant. There were no immediate reports of damage or injuries as Iran continues combined-cycle conversions across its power sector.

The quake hit Iran's Bushehr province at 5:23 a.m., according to the U.S. Geological Survey. It put the magnitude at 5.1 and the depth of the earthquake at 38 kilometres (24 miles), in a province tied to efforts to transmit electricity to Europe in coming years.

Iranian state media did not immediately report on the quake. However, the Bushehr nuclear power plant was designed to withstand much stronger earthquakes, a notable consideration as Iraq plans nuclear power plants to address shortages.

A magnitude 5 earthquake can cause considerable damage, including power disruptions that have seen blackouts spark protests in some Iranian cities.

Iran sits on major fault lines and is prone to near-daily earthquakes, yet it remains a key player in regional power, with Iran-Iraq energy cooperation ongoing. In 2003, a 6.6-magnitude quake flattened the historic city of Bam, killing 26,000 people, and today Iran supplies 40% of Iraq's electricity through cross-border power deals. Bam is near the Bushehr nuclear plant, which wasn’t damaged at that time, while more recently Iran finalized deals to rehabilitate Iraq's power grid to improve resilience.

 

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Energy minister unveils Ontario's plan to address growing energy needs

Powering Ontario's Growth accelerates clean electricity, pairing solar, wind, and hydro with energy storage, efficiency investments, and new nuclear, including SMRs, to meet rising demand and net-zero goals while addressing supply planning across the province.

 

Key Points

Ontario's clean energy plan adds renewables, storage, efficiency, and nuclear to meet rising electricity demand.

✅ Over $1B for energy-efficiency programs through 2030+

✅ Largest clean power procurement in Canadian history

✅ Mix of solar, wind, hydro, storage, nuclear, and SMRs

 

Energy Minister Todd Smith has announced a new plan that outlines the actions the government is taking to address the province's growing demand for electricity.

The government is investing over a billion dollars in "energy-efficiency programs" through 2030 and beyond, Smith said in Windsor.

Experts at Ontario's Independent Electricity System recommended the planning start early to meet demand they predict will require the province to be able to generate 88,000 megawatts (MW) in 20 years.

"That means all of our current supply ... would need to double to meet the anticipated demand by 2050," he said during the announcement.

"While we may not need to start building today, government and those in the energy sector need to start planning immediately, so we have new clean, zero emissions projects ready to go when we need them."

The project is called Powering Ontario's Growth and will advance new clean energy generation from a number of sources, including solar, hydroelectric and wind.

He said this would be the biggest acquisition of clean energy in Canada's history.

Smith made the announcement at Hydro One's Keith Transmission Station.

He said the new planned procurement of green power will pair well with recent energy storage procurements, so that power generated by solar panels, for example, can be stored and injected into the system when needed.

NDP Opposition Leader Marit Stiles said Monday's announcement lacks specifics.

"It's light on details, including key questions of cost, climate impact, waste management and financial risk," said Stiles.

"Ford's Conservatives should be playing catch-up after undermining clean energy in their first term. Instead, they're offering generalities and a vague sense of what they might do."

The Green Party criticized the move Monday afternoon, noting that clean, affordable electricity remains a key Ontario election issue today.

"Ontario is facing an energy crunch – and the Ford government is making it worse by choosing more expensive, dirtier options," said MPP for Guelph Mike Schreiner in the statement.

He said Premier Doug Ford has "grossly" mismanaged the province's energy supply by cancelling 750 renewable energy projects and slashing efficiency programs.

"Now, faced with an opportunity to become a leader in a world that's rapidly embracing renewable energy, this government has chosen to funnel taxpayer dollars into polluting fossil gas plants and expensive new nuclear that will take decades to come online," said Schreiner.

Smith announced last week the plan for three more small modular reactors at the site of the Darlington nuclear power plant. The province also shared its intention to add a third nuclear generating station to Bruce Power near Kincardine. 

"With this backwards approach, the Ford government is squandering a once-in-a-generation opportunity to make Ontario a global leader in attracting investment dollars and creating better jobs in the trillion-dollar clean energy sector," said Schreiner.

 

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EPA: New pollution limits proposed for US coal, gas power plants reflect "urgency" of climate crisis

EPA Power Plant Emissions Rule proposes strict greenhouse gas limits for coal and gas units, leveraging carbon capture (CCS) under the Clean Air Act to cut CO2 and accelerate decarbonization of the U.S. grid.

 

Key Points

A proposed EPA rule setting CO2 limits for coal and gas plants, using CCS to cut power-sector greenhouse gases.

✅ Applies to existing and new coal and large gas units

✅ Targets near-zero CO2 by 2038 via CCS or retirement

✅ Cites grid, health, and climate benefits; faces legal challenges

 

The Biden administration has proposed new limits on greenhouse gas emissions from coal- and gas-fired power plants, its most ambitious effort yet to roll back planet-warming pollution from the nation’s second-largest contributor to climate change.

A rule announced by the Environmental Protection Agency could force power plants to capture smokestack emissions using a technology that has long been promised but is not used widely in the United States, and arrives amid changes stemming from the NEPA rewrite that affect project reviews.

“This administration is committed to meeting the urgency of the climate crisis and taking the necessary actions required,″ said EPA Administrator Michael Regan.

The plan would not only “improve air quality nationwide, but it will bring substantial health benefits to communities all across the country, especially our front-line communities ... that have unjustly borne the burden of pollution for decades,” Regan said in a speech at the University of Maryland.

President Joe Biden, whose climate agenda includes a clean electricity standard as a key pillar, called the plan “a major step forward in the climate crisis and protecting public health.”

If finalized, the proposed regulation would mark the first time the federal government has restricted carbon dioxide emissions from existing power plants, following a Trump-era replacement of Obama’s power plant overhaul, which generate about 25% of U.S. greenhouse gas pollution, second only to the transportation sector. The rule also would apply to future electric plants and would avoid up to 617 million metric tons of carbon dioxide through 2042, equivalent to annual emissions of 137 million passenger vehicles, the EPA said.

Almost all coal plants — along with large, frequently used gas-fired plants — would have to cut or capture nearly all their carbon dioxide emissions by 2038, the EPA said, a timeline that echoed concerns raised during proposed electricity pricing changes in the prior administration. Plants that cannot meet the new standards would be forced to retire.

The plan is likely to be challenged by industry groups and Republican-leaning states, much like litigation over the Affordable Clean Energy rule unfolded in recent years. They have accused the Democratic administration of overreach on environmental regulations and warn of a pending reliability crisis for the electric grid. The power plant rule is one of at least a half-dozen EPA rules limiting power plant emissions and wastewater treatment rules.

“It’s truly an onslaught” of government regulation “designed to shut down the coal fleet prematurely,″ said Rich Nolan, president and CEO of the National Mining Association.

Regan denied that the power plant rule was aimed at shutting down the coal sector, but acknowledged — even after the end to the 'war on coal' rhetoric — “We will see some coal retirements.”

 

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Altmaier's new electricity forecast: the main driver is e-mobility

Germany 2030 Electricity Demand Forecast projects 658 TWh, driven by e-mobility, heat pumps, and green hydrogen. BMWi and BDEW see higher renewables, onshore wind, photovoltaics, and faster grid expansion to meet climate targets.

 

Key Points

A BMWi outlook to 658 TWh by 2030, led by e-mobility, plus demand from heat pumps, green hydrogen, and industry.

✅ Transport adds ~70 TWh; cars take 44 TWh by 2030

✅ Heat pumps add 35 TWh; green hydrogen needs ~20 TWh

✅ BDEW urges 70% renewables and faster grid expansion

 

Gross electricity consumption in Germany will increase from 595 terawatt hours (TWh) in 2018 to 658 TWh in 2030. That is an increase of eleven percent. This emerges from the detailed analysis of the development of electricity demand that the Federal Ministry of Economics (BMWi) published on Tuesday. The main driver of the increase is therefore the transport sector. According to the paper, increased electric mobility in particular contributes 68 TWh to the increase, in line with rising EV power demand trends across markets. Around 44 TWh of this should be for cars, 7 TWh for light commercial vehicles and 17 TWh for heavy trucks. If the electricity consumption for buses and two-wheelers is added, this results in electricity consumption for e-mobility of around 70 TWh.

The number of purely battery-powered vehicles is increasing according to the investigation by the BMWi to 16 million by 2030, reflecting the global electric car market momentum, plus 2.2 million plug-in hybrids. In 2018 there were only around 100,000 electric cars, the associated electricity consumption was an estimated 0.3 TWh, and plug-in mileage in 2021 highlighted the rapid uptake elsewhere. For heat pumps, the researchers predict an increase in demand by 35 TWh to around 42 TWh. They estimate the electricity consumption for the production of around 12.5 TWh of green hydrogen in 2030 to be just under 20 TWh. The demand at battery factories and data centers will increase by 13 TWh compared to 2018 by this point in time. In the data centers, there is no higher consumption due to more efficient hardware despite advancing digitization.

The updated figures are based on ongoing scenario calculations by Prognos, in which the market researchers took into account the goals of the Climate Protection Act for 2030 and the wider European electrification push for decarbonization. In the preliminary estimate presented by Federal Economics Minister Peter Altmaier (CDU) in July, a range of 645 to 665 TWh was determined for gross electricity consumption in 2030. Previously, Altmaier officially said that electricity demand in this country would remain constant for the next ten years. In June, Chancellor Angela Merkel (CDU) called for an expanded forecast that would have to include trends in e-mobility adoption within a decade and the Internet of Things, for example.

Higher electricity demand
The Federal Association of Energy and Water Management (BDEW) is assuming an even higher electricity demand of around 700 TWh in nine years. In any case, a higher share of renewable energies in electricity generation of 70 percent by 2030 is necessary in order to be able to achieve the climate targets and to address electricity price volatility risks. The expansion paths urgently need to be increased and obstacles removed. This could mean around 100 gigawatts (GW) for onshore wind turbines, 11 GW for biomass and at least 150 GW for photovoltaics by 2030. Faster network expansion and renovation will also become even more urgent, as electric cars challenge grids in many regions.
 

 

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Canadian Manufacturers and Exporters Congratulates the Ontario Government for Taking Steps to Reduce Electricity Prices

Ontario Global Adjustment Deferral offers COVID-19 electricity bill relief to industrial and commercial consumers not on the RPP, aligning GA to March levels for Class A and Class B manufacturers to improve cash flow.

 

Key Points

A temporary GA deferral easing electricity costs for Ontario industrial and commercial users not on the RPP.

✅ Sets Class B GA at $115/MWh; Class A gets equal percentage cut.

✅ Applies April-June 2020; automatic bill adjustments and credits.

✅ Deferred charges repaid over 12 months starting January 2021.

 

Manufacturers welcome the Government of Ontario's decision to defer a portion of Global Adjustment (GA) charges as part of support for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan.

"Manufacturers are pleased the government listened to Canadian Manufacturers & Exporters (CME) member recommendations and is taking action to reduce Ontario electricity bills immediately," said Dennis Darby, President & CEO of CME.

"The majority of manufacturers have identified cash flow as their top concern during the crisis, "added Darby. "The GA system would have caused a nearly $2 billion cost surge to Ontario manufacturers this year. This new initiative by the government is on top of the billions in support already provided to help manufacturers weather this unprecedented storm, while other provinces accelerate British Columbia's clean energy shift to drive long-term competitiveness. All these measures are a great start in helping businesses of all sizes stay afloat during the crisis and, keeping Ontarians employed."

"We call on the Ontario government to continue to consider the impact of electricity costs on the manufacturing sector, even after the COVID-19 crisis is resolved," stated Darby. "High prices are putting Ontario manufacturers at a significant competitive disadvantage and, discourages investments." A recent report from London Economics International (LEI) found that when compared to jurisdictions with similar manufacturing industries, Ontario's electricity prices can be up to 75% more expensive, underscoring the importance of planning for Toronto's growing electricity needs to maintain affordability.

To provide companies with temporary immediate relief on their electricity bills, the Ontario government is deferring a portion of Global Adjustment (GA) charges for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan (RPP), starting from April 2020, as some regions saw reduced electricity demand from widespread remote work during the pandemic. The GA rate for smaller industrial and commercial consumers (i.e., Class B) has been set at $115 per megawatt-hour, which is roughly in line with the March 2020 value. Large industrial and commercial consumers (i.e., Class A) will receive the same percentage reduction in GA charges as Class B consumers.

The Ontario government intends to keep this relief in place through the end of June 2020, alongside investments like smart grid technology in Sault Ste. Marie to support reliability, subject to necessary extensions and approvals to implement this initiative.

Industrial and commercial electricity consumers will automatically see this relief reflected on their bills. Consumers who have already received their April bill should see an adjustment on a future bill.

Related initiatives include developing cyber standards for electricity sector IoT devices to strengthen system security.

The government intends to bring forward subsequent amendments that would, if approved, recover the deferred GA charges (excluding interest) from industrial and commercial electricity consumers, as Toronto prepares for a surge in electricity demand amid continued growth, over a 12-month period beginning in January 2021.

 

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Europe's Thirst for Electricity Spurs Nordic Grid Blockade

Nordic Power Grid Dispute highlights cross-border interconnector congestion, curtailed exports and imports, hydropower priorities, winter demand spikes, rising spot prices, and transmission grid security amid decarbonization efforts across Sweden, Norway, Finland, and Denmark.

 

Key Points

A clash over interconnectors and capacity cuts reshaping trade, prices, and reliability in the Nordic power market.

✅ Sweden cuts interconnector capacity to protect grid stability

✅ Norway prioritizes higher-priced exports via new cables

✅ Finland and Denmark seek EU action on capacity curtailments

 

A spat over electricity supplies is heating up in northern Europe. Sweden is blocking Norway from using its grids to transfer power from producers throughout the region. That’s angered Norway, which in turn has cut flows to its Nordic neighbor.

The dispute has built up around the use of cross-border power cables, which are a key part of Europe’s plans to decarbonize since they give adjacent countries access to low-carbon resources such as wind or hydropower. The electricity flows to wherever prices are higher, informed by how electricity is priced across Europe, without interference from grid operators -- but in the event of a supply squeeze, flows can be stopped.

Sweden moved to safeguard the security of its grid after Norway started increasing electricity exports through huge new cables to Germany and the U.K. Those exports at times have drawn energy away from Sweden, resulting in the country’s system operator cutting capacity at its Nordic borders, preventing exports but also hindering imports, which it relies on to handle demand spikes during winter.

“This is not a good situation in the long run,” Christian Holtz, a energy market consultant for Merlin & Metis AB.

Norway hit back last week by cutting flows to Sweden, this will prioritize better paying customers in Europe, amid Irish price spikes that highlight dispatchable shortages, giving them access to its vast hydro resources at the expense of its Nordic neighbors. 

By partially closing its borders Sweden can’t access imports either, which it relies on to handle demand spikes during the coldest days of the winter. 

In Denmark, unusual summer and autumn winds have at times delivered extraordinarily low electricity prices that ripple through regional markets.

The Swedish grid manager Svenska Kraftnat has reduced export capacity at cables across its borders by as much as half this year to keep operations secure. Finland and Denmark rely on imports too and the cuts will come at a cost for millions of homes and industries across the four nations already contending with record electricity rates this year. 

Finland and Denmark want the European Union to end the exemption to regulations that make such reductions possible in the first place, as Europe is losing nuclear power and facing tighter supply.

“Imports from our neighboring countries ensure adequacy at times of peak consumption,” said Reima Paivinen, head of operation at the Finland’s Fingrid. “The recent surge in electricity prices throughout Europe does not directly affect the adequacy of electricity, but prices may rise dramatically for short periods.”

Svenska Kraftnat says it’s not political -- it has no choice but to cut capacity until its old grids are expanded to handle the new direction of flows, a challenge mirrored by grid expansion woes in Germany that slow integration. That could take at least until 2030 to complete, it said earlier this year. At the same time, Norway halving available export capacity to about 1,200 megawatts will increase risk of shortages. 

“If we need more we will have to count on imports from other countries,” said Erik Ek, head of strategic operation at Svenska Kraftnat. “If that is not available, we will have to disconnect users the day it gets cold.”

 

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