NS Power prepares for rate hike

By CBC.ca


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Nova Scotia Power is preparing to request its seventh power rate increase in a decade, company representatives said.

The utility is projecting electricity costs to increase 20 per cent by 2015. That includes an average residential rate increase of nine per cent next year, four per cent in 2013, two per cent in 2014 and five per cent in 2015.

Nova Scotia Power has not yet filed its application with the Nova Scotia Utility and Review Board, company representatives said at a briefing for stakeholders and members of the media.

Rene Gallant, the general manager of regulatory affairs with the utility, said the main reason ratepayers may have to pay more next year is to cover renewable projects that are currently on the grid but are not yet paid for.

"We've invested about $1 billion in the last three years in Nova Scotia. We've been building wind farms, we've been investing in our plants and our equipment, putting equipment on the plants to keep our emissions down and meet the province's standards," Gallant told reporters after the news conference.

He added that the $1 billion has not yet been included in the utility's rates.

"At some point, like your Visa card, you have to start paying back those amounts that you've borrowed. So that's a key driver of why we're thinking we'll need to change rates," said Gallant.

Nova Scotia Power said it will need $90 million from ratepayers next year — $4.9 million of which is to increase dividends to its shareholders.

Although the utility is coming off a year of record profits, Gallant said the company needs to give shareholders more money to stay competitive.

"They don't have to invest in our company, they can invest in any number of utilities and if the rate of return is not competitive with those other utilities, they'll go somewhere else," he said.

Don Regan, who represents the Municipal Electric Utilities Co-operative, said developments like the proposed Lower Churchill hydroelectric megaproject will also mean higher rates in the future.

"There are capital plans the company has, such as the undersea cable from Newfoundland, which aren't in the numbers we saw today or in the years we saw today," Regan told CBC News.

"We're appreciative of the company laying out the future as they have here today — something they haven't done much in the past — and we're not surprised by what they've brought forward, but it does give us the opportunity to work together to mitigate these effects."

Gallant said the utility hopes there will be rate stability in several years when it completes a transition to renewable energy, an issue that Nova Scotia's NDP government has been pressing since it came to power.

Last year, the provincial government announced plans for 40 per cent of all electricity to come from renewable sources by 2020. It had already set a goal of 25 per cent by 2015.

Premier Darrell Dexter said Nova Scotia Power's plans to ask for a rate increase has not shaken his belief in the renewable energy plan.

"We're obviously very concerned with anything that affects people in the province. It is a difficult time for people trying to make ends meet," Dexter said.

"Obviously this is disappointing. We'll be at the hearing, of course, to ask questions and see that they are able to justify the increased costs."

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Why California's Climate Policies Are Causing Electricity Blackouts

California Rolling Blackouts expose grid reliability risks amid a heatwave, as CAISO curtails power while solar output fades at sunset, wind stalls, and scarce natural gas and nuclear capacity plus PG&E issues strain imports.

 

Key Points

Grid outages during heatwaves from low reserves, fading solar, weak wind, and limited firm capacity.

✅ Heatwave demand rose as solar output dropped at sunset

✅ Limited imports and gas, nuclear shortfalls cut reserves

✅ Policy, pricing, and maintenance gaps increased outage risk

 

Millions of Californians were denied electrical power and thus air conditioning during a heatwave, raising the risk of heatstroke and death, particularly among the elderly and sick. 

The blackouts come at a time when people, particularly the elderly, are forced to remain indoors due to Covid-19, and as later heat waves would test the grid again statewide.

At first, the state’s electrical grid operator last night asked customers to voluntarily reduce electricity use. But after lapses in power supply pushed reserves to dangerous levels it declared a “Stage 3 emergency” cutting off power to people across the state at 6:30 pm.

The immediate reason for the black-outs was the failure of a 500-megawatt power plant and an out-of-service 750-megawatt unit not being available. “There is nothing nefarious going on here,” said a spokeswoman for California Independent System Operator (CAISO). “We are just trying to run the grid.”

But the underlying reasons that California is experiencing rolling black-outs for the second time in less than a year stem from the state’s climate policies, which California policymakers have justified as necessary to prevent deaths from heatwaves, and which it is increasingly exporting to Western states as a model.

In October, Pacific Gas and Electric cut off power to homes across California to avoid starting forest fires after reports that its power lines may have started fires in recent seasons. The utility and California’s leaders had over the previous decade diverted billions meant for grid maintenance to renewables. 

And yesterday, California had to impose rolling blackouts because it had failed to maintain sufficient reliable power from natural gas and nuclear plants, or pay in advance for enough guaranteed electricity imports from other states.

It may be that California’s utilities and their regulator, the California Public Utilities Commission, which is also controlled by Gov. Newsom, didn’t want to spend the extra money to guarantee the additional electricity out of fears of raising California’s electricity prices even more than they had already raised them.

California saw its electricity prices rise six times more than the rest of the United States from 2011 to 2019, helping explain why electricity prices are soaring across the state, due to its huge expansion of renewables. Republicans in the U.S. Congress point to that massive increase to challenge justifications by Democrats to spend $2 trillion on renewables in the name of climate change.

Even though the cost of solar panels declined dramatically between 2011 and 2019, their unreliable and weather-dependent nature meant that they imposed large new costs in the form of storage and transmission to keep electricity as reliable. California’s solar panels and farms were all turning off as the blackouts began, with no help available from the states to the East already in nightfall.

Electricity from solar goes away at the very moment when the demand for electricity rises. “The peak demand was steady in late hours,” said the spokesperson for CAISO, which is controlled by Gov. Gavin Newsom, “and we had thousands of megawatts of solar reducing their output as the sunset.”

The two blackouts in less than a year are strong evidence that the tens of billions that Californians have spent on renewables come with high human, economic, and environmental costs.

Last December, a report by done for PG&E concluded that the utility’s customers could see blackouts double over the next 15 years and quadruple over the next 30.

California’s anti-nuclear policies also contributed to the blackouts. In 2013, Gov. Jerry Brown forced a nuclear power plant, San Onofre, in southern California to close.

Had San Onofre still been operating, there almost certainly would not have been blackouts on Friday as the reserve margin would have been significantly larger. The capacity of San Onofre was double that of the lost generation capacity that triggered the blackout.

California's current and former large nuclear plants are located on the coast, which allows for their electricity to travel shorter distances, and through less-constrained transmission lines than the state’s industrial solar farms, to get to the coastal cities where electricity is in highest demand.

There has been very little electricity from wind during the summer heatwave in California and the broader western U.S., further driving up demand. In fact, the same weather pattern, a stable high-pressure bubble, is the cause of heatwaves, since it brought very low wind for days on end along with very high temperatures.

Things won’t be any better, and may be worse, in the winter, with a looming shortage as it produces far less solar electricity than the summer. Solar plus storage, an expensive attempt to fix problems like what led to this blackout, cannot help through long winters of low output.

California’s electricity prices will continue to rise if it continues to add more renewables to its grid, and goes forward with plans to shut down its last nuclear plant, Diablo Canyon, in 2025.

Had California spent an estimated $100 billion on nuclear instead of on wind and solar, it would have had enough energy to replace all fossil fuels in its in-state electricity mix.

To manage the increasingly unreliable grid, California will either need to keep its nuclear plant operating, build more natural gas plants, underscoring its reliance on fossil fuels for reliability, or pay ever more money annually to reserve emergency electricity supplies from its neighbors.

After the blackouts last October, Gov. Newsom attacked PG&E Corp. for “greed and mismanagement” and named a top aide, Ana Matosantos, to be his “energy czar.” 

“This is not the new normal, and this does not take 10 years to solve,” Newsom said. “The entire system needs to be reimagined.”

 

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Norway Considers Curbing Electricity Exports to Avoid Shortages

Norway Electricity Export Limits weigh hydro reservoirs, energy security, EU-UK interconnectors, and record power prices amid Russia gas cuts; Statnett grid constraints and subsidies debate intensify as reservoir levels fall, threatening winter supply.

 

Key Points

Rules to curb Norway's power exports when reservoirs are very low, protecting supply security and easing extreme prices.

✅ Triggered by low hydro levels and record day-ahead prices

✅ Considers EU/UK cables, Statnett operations, seasonal thresholds

✅ Aims to secure winter supply and expand subsidies

 

Norway, one of Europe’s biggest electricity exporters, is considering measures to limit power shipments to prevent domestic shortages amid surging prices, according to local media reports.

The government may propose a rule to limit exports if the water level for Norway’s hydro reservoirs drops to “very low” levels, to ensure security of supply, said Energy Minister Terje Aasland, according NTB newswire. The limit would take account of seasonality and would differ across the about 1,800 hydro reservoirs, he said. 

Russia’s gas supply cuts in retaliation for European sanctions over the war in Ukraine have triggered the continent’s worst energy crisis in decades, with demand surging for cheap Norwegian hydro electricity. Yet the government faces increasing calls from the public and opposition to limit flows abroad. Prices are near record levels in some parts of the Nordic nation as hydro-reservoir levels have plunged in the south after a drier-than-normal spring. 

The government has been under pressure to do something about exports since before April. Flows on the cables are regulated by deals with both the European Union and the UK energy market and Norway can’t simply cut flows. It’s the latest test of European solidarity and a wake-up call for Europe when it comes to energy supplies. Hungary is trying to ban energy exports after it declared an energy emergency.

Back in May, grid operator Statnett SF warned that Norway could face a strained power situation after less snowfall than usual during the winter. At the end of last week, the level of filling in Norwegian hydro reservoirs was 66.5%, compared with a median 74.9% for the corresponding time in 2002-2021, regulator NVE said. Day-ahead electricity prices in southwest Norway soared to a record 423 euros per megawatt-hour late last month, partly due to bottlenecks in the grid limiting supply from the northern regions.

The grid operator has been asked to present by Oct. 1 possible measures that need to be taken to secure supply and infrastructure security ahead of the winter. Statnett operates cables to the UK and Germany aimed at selling surplus electricity and would likely take a financial hit if curbs were introduced. “Operations of these will always follow current laws and regulations,” Irene Meldal, a company spokeswoman, said Friday by email. 

Premier Jonas Gahr Store signaled his minority government will file proposals that also include more subsidies to families and companies and align with Europe’s emergency price measures during August, according to an interview with TV2 on Thursday. Meanwhile, opposition politicians plan to hold an extraordinary parliament meeting to discuss boosting the subsidies.

Aasland will summon the parties’ representatives to a meeting on Monday on the electricity crisis, the Aftenposten newspaper reported on Friday, without citing anyone. He intends to inform the parties about the ongoing work and aims to “avoid rushed decisions” by the parliamentary majority.

Norway Faces Pressure to Curb Power Exports as Prices Surge (1)

The nation gets almost all of its electricity from its vast hydro resources. Historically, it has been able to export a hefty surplus and still have among the lowest prices in Europe. 
 

 

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Big prizes awarded to European electricity prediction specialists

Electricity Grid Flow Prediction leverages big data, machine learning, and weather analytics to forecast power flows across smart grids, enhancing reliability, reducing blackouts and curtailment, and optimizing renewable integration under EU Horizon 2020 innovation.

 

Key Points

Short-term forecasting of power flows using big data, weather inputs, and machine learning to stabilize smart grids.

✅ Uses big data, weather, and ML for 6-hour forecasts

✅ Improves reliability, cuts blackouts and energy waste

✅ Supports smart grids, renewables, and grid balancing

 

Three European prediction specialists have won prizes worth €2 million for developing the most accurate predictions of electricity flow through a grid

The three winners of the Big Data Technologies Horizon Prize received their awards at a ceremony on 12th November in Austria.

The first prize of €1.2 million went to Professor José Vilar from Spain, while Belgians Sofie Verrewaere and Yann-Aël Le Borgne came in joint second place and won €400,000 each.

The challenge was open to individuals groups and organisations from countries taking part in the EU’s research and innovation programme, Horizon 2020.

Carlos Moedas, Commissioner for Research, Science and Innovation, said: “Energy is one of the crucial sectors that are being transformed by the digital grid worldwide.

“This Prize is a good example of how we support a positive transformation through the EU’s research and innovation programme, Horizon 2020.

“For the future, we have designed our next programme, Horizon Europe, to put even more emphasis on the merger of the physical and digital worlds across sectors such as energy, transport and health.”

The challenge for the applicants was to create AI-driven software that could predict the likely flow of electricity through a grid taking into account a number of factors including the weather and the generation source (i.e. wind turbines, solar cells, etc).

Using a large quantity of data from electricity grids, EU smart meters, combined with additional data such as weather conditions, applicants had to develop software that could predict the flow of energy through the grid over a six-hour period.

Commissioner for Digital Economy and Society Mariya Gabriel said: “The wide range of possible applications of these winning submissions could bring tangible benefits to all European citizens, including efforts to tackle climate change with machine learning across sectors.”

The decision to focus on energy grids for this particular prize was driven by a clear market need, including expanding HVDC technology capabilities.

Today’s energy is produced at millions of interconnected and dispersed unpredictable sites such as wind turbines, solar cells, etc., so it is harder to ensure that electricity supply matches the demand at all times.

This complexity means that huge amounts of data are produced at the energy generation sites, in the grid and at the place where the energy is consumed.

Being able to make accurate, short-term predictions about power grid traffic is therefore vital to reduce the risks of blackouts or, by enabling utilities to use AI for energy savings, limit waste of energy.

Reliable predictions can also be used in fields such as biology and healthcare. The predictions can help to diagnose and cure diseases as well as to allocate resources where they are most needed.

Ultimately, the winning ideas are set to be picked up by the energy sector in the hopes of creating smarter electricity infrastructure, more economic and more reliable power grids.

 

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British Columbia Fuels Up for the Future with $900 Million Hydrogen Project

H2 Gateway Hydrogen Network accelerates clean energy in B.C., building electrolysis plants and hydrogen fueling stations for zero-emission vehicles, heavy-duty trucks, and long-haul transit, supporting decarbonization, green hydrogen supply, and infrastructure investment.

 

Key Points

A $900M B.C. initiative by HTEC to build electrolysis plants and 20 hydrogen fueling stations for zero-emission transport.

✅ $900M project with HTEC, CIB, and B.C. government

✅ 3 electrolysis plants plus byproduct liquefaction in North Vancouver

✅ Up to 20 stations; 14 for heavy-duty vehicles in B.C. and Alberta

 

British Columbia is taking a significant step towards a cleaner future with a brand new $900 million project. This initiative, spearheaded by hydrogen company HTEC and supported by the CIB in B.C. and the B.C. government, aims to establish a comprehensive hydrogen network across the province. This network will encompass both hydrogen production plants and fueling stations, marking a major leap in developing hydrogen infrastructure in B.C.

The project, dubbed "H2 Gateway," boasts several key components. At its core lies the construction of three brand new electrolysis hydrogen production plants. These facilities will be strategically located in Burnaby, Nanaimo, and Prince George, ensuring a wide distribution of hydrogen fuel. An additional facility in North Vancouver will focus on liquefying byproduct hydrogen, maximizing resource efficiency.

The most visible aspect of H2 Gateway will undoubtedly be the network of hydrogen fueling stations. The project envisions up to 20 stations spread across British Columbia and Alberta, complementing the province's Electric Highway build-out, with 18 being situated within B.C. itself. This extensive network will significantly enhance the accessibility of hydrogen fuel, making it a more viable option for motorists. Notably, 14 of these stations will be designed to handle heavy-duty vehicles, catering to the transportation sector's clean energy needs.

The economic and environmental benefits of H2 Gateway are undeniable. The project is expected to generate nearly 300 jobs, aligning with recent grid job creation efforts, providing a much-needed boost to the B.C. economy. More importantly, the widespread adoption of hydrogen fuel promises significant reductions in greenhouse gas emissions. Hydrogen-powered vehicles produce zero tailpipe emissions, making them a crucial tool in combating climate change.

British Columbia's investment in hydrogen infrastructure aligns with a global trend. As countries strive to achieve ambitious climate goals, hydrogen is increasingly viewed as a promising clean energy source. Hydrogen fuel cells offer several advantages over traditional electric vehicles, and while B.C. leads the country in going electric, they boast longer driving ranges and shorter refueling times, making them particularly attractive for long-distance travel and heavy-duty applications.

While H2 Gateway represents a significant step forward, challenges remain. The production of clean hydrogen, often achieved through electrolysis using renewable energy sources, faces power supply challenges and requires substantial initial investment. Additionally, the number of hydrogen-powered vehicles on the road is still relatively low.

However, projects like H2 Gateway are crucial in overcoming these hurdles. By creating a robust hydrogen infrastructure, B.C. is sending a strong signal to the industry and, alongside BC Hydro's EV charging expansion across southern B.C., is building a comprehensive clean transportation network. This investment will not only benefit the environment but also incentivize the development and adoption of hydrogen-powered vehicles. As the technology matures and production costs decrease, hydrogen fuel has the potential to revolutionize transportation and play a key role in a sustainable future.

The road ahead for hydrogen may not be entirely smooth, but British Columbia's commitment to H2 Gateway demonstrates a clear vision. By investing in clean energy infrastructure, the province is not only positioning itself as a leader in the fight against climate change, with Canada and B.C. investing in green energy solutions to accelerate progress, but also paving the way for a more sustainable transportation landscape.

 

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Gas-electric hybrid vehicles get a boost in the US from Ford, others

U.S. Hybrid Vehicle Sales Outlook highlights rising hybrid demand as an EV bridge, driven by emissions rules, range anxiety, charging infrastructure gaps, and automaker strategies from Ford, Toyota, and Stellantis across U.S. markets.

 

Key Points

Forecast of U.S. hybrid sales shaped by EV adoption, emissions rules, charging access, and automaker strategies.

✅ S&P sees hybrids at 24% of U.S. sales by 2028

✅ Bridges ICE to EV amid range and charging concerns

✅ Ford, Toyota, Stellantis expand U.S. hybrid lineups

 

Hybrid gasoline-electric vehicles may not be dying as fast as some predicted in the auto sector’s rush to develop all-electric models.

Ford Motor is the latest of several top automakers, including Toyota and Stellantis, planning to build and sell hundreds of thousands of hybrid vehicles in the U.S. over the next five years, industry forecasters told Reuters.

The companies are pitching hybrids as an alternative for retail and commercial customers who are seeking more sustainable transportation, but may not be ready to make the leap to a full electric vehicle.

"Hybrids really serve a lot of America," said Tim Ghriskey, senior portfolio strategist at New York-based investment manager Ingalls & Snyder. "Hybrid is a great alternative to a pure electric vehicle (and) it's an easier sell to a lot of customers."

Interest in hybrids is rebounding as consumer demand for pure electrics has not accelerated as quickly as expected, with EV market share dipping in Q1 2024 according to some analyses. Surveys cite a variety of reasons for tepid EV demand, from high initial cost and concerns about range to lengthy charging times and a shortage of public charging infrastructure in many regions.

“With the tightening of emissions requirements, hybrids provide a cleaner fleet without requiring buyers to take the leap into pure electrics,” said Sam Fiorani, vice president at AutoForecast Solutions.

S&P Global Mobility estimates hybrids will more than triple over the next five years, accounting for 24% of U.S. new vehicle sales in 2028. Sales of pure electrics will claim about 37%, supported by strong U.S. EV sales into 2024 momentum, leaving combustion vehicles — including so-called “mild” hybrids — with a nearly 40% share.

S&P estimates hybrids will account for just 7% of U.S. sales this year, and pure electrics 9%, underscoring that EV sales still lag gas cars as internal combustion engine (ICE) vehicles take more than 80%.

Historically, hybrids have accounted for less than 10% of total U.S. sales, with Toyota’s long-running Prius among the most popular models. The Japanese automaker has consistently said hybrids will play a key role in the company's long-range electrification plans as it slowly ramps up investment in pure EVs.

Ford is the latest to roll out more aggressive hybrid plans. On its second-quarter earnings call in late July, Chief Executive Jim Farley surprised analysts, saying Ford expects to quadruple its hybrid sales over the next five years after earlier promising an aggressive push into all-electric vehicles.

“This transition to EVs will be dynamic,” Farley told analysts. “We expect the EV market to remain volatile until the winners and losers shake out.”

Among Ford’s competitors, General Motors appears to have little interest in hybrids in the U.S., while Stellantis will follow Toyota and Ford’s hedge by offering U.S. buyers a choice of different powertrains, including hybrids, until sales of pure electric vehicles start to take off after mid-decade, a potential EV inflection point according to forecaster GlobalData.

In a statement, GM said it, echoing leadership's view that EVs won't go mainstream until key issues are addressed, "continues to be committed to its all-electric future ... While we will have hybrid vehicles in our global fleet, our focus remains on transitioning our portfolio to electric by 2030.”

Stellantis said hybrids now account for 36% of Jeep Wrangler sales and 19% of Chrysler Pacifica sales. In addition to new pure electric models coming soon, "we are very bullish on hybrids going forward," a spokesperson said.

This year, manufacturers are marketing more than 60 hybrids in the U.S. Toyota and its premium Lexus brand are selling at least 18 different hybrid models, enabling the Japanese automaker to maintain its stranglehold on the sector.

Hyundai and sister brand Kia offer seven hybrid models, with Ford and Lincoln six. Stellantis offers just three, and GM’s sole entry, due out later this year, is a hybrid version of the Chevrolet Corvette sports car.

But hybrids remain in short supply at many U.S. dealerships.

Andrew DiFeo, dealer principal at Hyundai of St. Augustine, south of Jacksonville, FL, doesn't see EV adoption hitting the levels the Biden administration wants until EV charging networks are as ubiquitous as gas stations.

"Hybrids are a great bridge to whatever the future holds,” said DiFeo, adding, “I've got zero in stock (and) I've got customers that want all of them."

 

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Clocks are running slow across Europe because of an argument over who pays the electricity bill

European Grid Frequency Clock Slowdown has made appliance clocks run minutes behind as AC frequency drifts on the 50 Hz electricity grid, driven by a Kosovo-Serbia billing dispute and ENTSO-E monitored supply-demand imbalance.

 

Key Points

An EU-wide timing error where 50 Hz AC deviations slow appliance clocks due to Kosovo-Serbia grid imbalances.

✅ Clocks drifted up to six minutes across interconnected Europe

✅ Cause: unpaid power in N. Kosovo, contested by Serbia

✅ ENTSO-E reported 50 Hz deviations from supply-demand mismatch

 

Over the past couple of months, Europeans have noticed time slipping away from them. It’s not just their imaginations: all across the continent, clocks built into home appliances like ovens, microwaves, and coffee makers have been running up to six minutes slow. The unlikely cause? A dispute between Kosovo and Serbia over who pays the electricity bill.

To make sense of all this, you need to know that the clocks in many household devices use the frequency of electricity to keep time. Electric power is delivered to our homes in the form of an alternating current, where the direction of the flow of electricity switches back and forth many times a second. (How this system came to be established is complex, but the advantage is that it allows electricity to be transmitted efficiently.) In Europe, this frequency is 50 Hertz — meaning a current alternating of 50 times a second. In America, it’s 60 Hz, and during peak summer demand utilities often prepare for blackouts as heat drives loads higher.

Since the 1930s, manufacturers have taken advantage of this feature to keep time. Each clock needs a metronome — something with a consistent rhythm that helps space out each second — and an alternating current provides one, saving the cost of extra components. Customers simply set the time on their oven or microwave once, and the frequency keeps it precise.

At least, that’s the theory. But because this timekeeping method is reliant on electrical frequency, when the frequency changes, so do the clocks. That is what has been happening in Europe.

The news was announced this week by ENTSO-E, the agency that oversees the single, huge electricity grid connecting 25 European countries and which recently synchronized with Ukraine to bolster regional resilience. It said that variations in the frequency of the AC caused by imbalances between supply and demand on the grid have been messing with the clocks. The imbalance is itself caused by a political argument between Serbia and Kosovo. “This is a very sensitive dispute that materializes in the energy issues,” Susanne Nies, a spokesperson for ENTSO-E, told The Verge.

Essentially, after Kosovo declared independence from Serbia in 2008, there were long negotiations over custody of utilities like telecoms and electricity infrastructure. As part of the ongoing agreements (Serbia still does not recognize Kosovo as a sovereign state), four Serb-majority districts in the north of Kosovo stopped paying for electricity. Kosovo initially covered this by charging the rest of the country more, but last December, it decided it had had enough and stopped paying. This led to an imbalance: the Kosovan districts were still using electricity, but no one was paying to put it on the grid.

This might sound weird, but it’s because electricity grids work on a system of supply and demand, where surging consumption has even triggered a Nordic grid blockade in response to constrained flows. As Stewart Larque of the UK’s National Grid explains, you want to keep the same amount of electricity going onto the grid from power stations as the amount being taken off by homes and businesses. “Think of it like driving a car up a hill at a constant speed,” Larque told The Verge. “You need to carefully balance acceleration with gravity.” (The UK itself has not been affected by these variations because it runs its own grid.)

 

“THEY ARE FREE-RIDING ON THE SYSTEM.”

This balancing act is hugely complex and requires constant monitoring of supply and demand and communication between electricity companies across Europe, and growing cyber risks have spurred a renewed focus on protecting the U.S. power grid among operators worldwide. The dispute between Kosovo and Serbia, though, has put this system out of whack, as the two governments have been refusing to acknowledge what the other is doing.

“The Serbians [in Kosovo] have, according to our sources, not been paying for their electricity. So they are free-riding on the system,” says Nies.

The dispute came to a temporary resolution on Tuesday, when the Kosovan government stepped up to the plate and agreed to pay a fee of €1 million for the electricity used by the Serb-majority municipalities. “It is a temporary decision but as such saves our network functionality,” said Kosovo’s prime minister Ramush Haradinaj. In the longer term, though, a new agreement will need to be reached.

There have been rumors that the increase in demand from northern Kosovo was caused by cryptocurrency miners moving into the area to take advantage of the free electricity. But according to ENTSO-E, this is not the case. “It is absolutely unrelated to cryptocurrency,” Nies told The Verge. “There’s a lot of speculation about this, and it’s absolutely unrelated.” Representatives of Serbia’s power operator, EMS, refused to answer questions on this.

For now, “Kosovo is in balance again,” says Nies. “They are producing enough [electricity] to supply the population. The next step is to take the system back to normal, which will take several weeks.” In other words, time will return to normal for Europeans — if they remember to change their clocks, even as the U.S. power grid sees more blackouts than other developed nations.

 

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