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Negative Electricity Prices in France signal oversupply from wind and solar, stressing the wholesale market and grid. Better storage, demand response, and interconnections help balance renewables and stabilize prices today.

Key Points

They occur when renewable output exceeds demand, pushing power prices below zero as excess energy strains the grid.

✅ Driven by wind and solar surges with low demand

✅ Challenges thermal plants; erodes margins at negative prices

✅ Needs storage, demand response, and cross-border interties

France has recently experienced an unusual and unprecedented situation in its electricity market: negative electricity prices. This development, driven by a significant influx of renewable energy sources, highlights the evolving dynamics of energy markets as countries increasingly rely on clean energy technologies. The phenomenon of negative pricing reflects both the opportunities and renewable curtailment challenges associated with the integration of renewable energy into national grids.

Negative electricity prices occur when the supply of electricity exceeds demand to such an extent that producers are willing to pay consumers to take the excess energy off their hands. This situation typically arises during periods of high renewable energy generation coupled with low energy demand. In France, this has been driven primarily by a surge in wind and solar power production, which has overwhelmed the grid and created an oversupply of electricity.

The recent surge in renewable energy generation can be attributed to a combination of favorable weather conditions and increased capacity from new renewable energy installations. France has been investing heavily in wind and solar energy as part of its commitment to reducing greenhouse gas emissions and transitioning towards a more sustainable energy system, in line with renewables surpassing fossil fuels in Europe in recent years. While these investments are essential for achieving long-term climate goals, they have also led to challenges in managing energy supply and demand in the short term.

One of the key factors contributing to the negative prices is the variability of renewable energy sources. Wind and solar power are intermittent by nature, meaning their output can fluctuate significantly depending on weather conditions, with solar reshaping price patterns in Northern Europe as deployment grows. During times of high wind or intense sunshine, the electricity generated can far exceed the immediate demand, leading to an oversupply. When the grid is unable to store or export this excess energy, prices can drop below zero as producers seek to offload the surplus.

The impact of negative prices on the energy market is multifaceted. For consumers, negative prices can lead to lower energy costs as wholesale electricity prices fall during oversupply, and even potential credits or payments from energy providers. This can be a welcome relief for households and businesses facing high energy bills. However, negative prices can also create financial challenges for energy producers, particularly those relying on conventional power generation methods. Fossil fuel and nuclear power plants, which have higher operating costs, may struggle to compete when prices are negative, potentially affecting their profitability and operational stability.

The phenomenon also underscores the need for enhanced energy storage and grid management solutions. Excess energy generated from renewable sources needs to be stored or redirected to maintain grid stability and avoid negative pricing situations. Advances in battery storage technology, such as France's largest battery storage platform, and improvements in grid infrastructure are essential to addressing these challenges and optimizing the integration of renewable energy into the grid. By developing more efficient storage solutions and expanding grid capacity, France can better manage fluctuations in renewable energy production and reduce the likelihood of negative prices.

France's experience with negative electricity prices is part of a broader trend observed in other countries with high levels of renewable energy penetration. Similar situations have occurred in Germany, where solar plus storage is now cheaper than conventional power, the United States, and other regions where renewable energy capacity is rapidly expanding. These instances highlight the growing pains associated with transitioning to a cleaner energy system and the need for innovative solutions to balance supply and demand.

The French government and energy regulators are closely monitoring the situation and exploring measures to mitigate the impact of negative prices. Policy adjustments, market reforms, and investments in energy infrastructure are all potential strategies to address the challenges posed by high renewable energy generation. Additionally, encouraging the development of flexible demand response programs and enhancing grid interconnections with neighboring countries can help manage excess energy and stabilize prices.

In the long term, the rise of renewable energy and the occurrence of negative prices represent a positive development for the energy transition. They indicate progress towards cleaner energy sources and a more sustainable energy system. However, managing the associated challenges is crucial for ensuring that the transition is smooth and economically viable for all stakeholders involved.

In conclusion, the recent instance of negative electricity prices in France highlights the complexities of integrating renewable energy into the national grid. While the phenomenon reflects the success of France’s efforts to expand its renewable energy capacity, it also underscores the need for advanced grid management and storage solutions. As the country continues to navigate the transition to a more sustainable energy system, addressing these challenges will be essential for maintaining a stable and efficient energy market. The experience serves as a valuable lesson for other nations undergoing similar transitions and reinforces the importance of innovation and adaptability in the evolving energy landscape.

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Hydroelectric retrofits for unpowered dams leverage turbines to add renewable capacity, bolster grid reliability, and enable low-impact energy storage, supporting U.S. and Canada decarbonization goals with lower costs, minimal habitat disruption, and climate resilience.

Key Points

They add turbines to existing dams to make clean power, stabilize the grid, and offer low-impact storage at lower cost.

✅ Lower capex than new dams; minimal habitat disruption

✅ Adds firming and storage to support wind and solar

✅ New low-head turbines unlock more retrofit sites

As countries race to get their power grids off fossil fuels to fight climate change, there's a big push in the U.S. to upgrade dams built for purposes such as water management or navigation with a feature they never had before — hydroelectric turbines. 

And the strategy is being used in parts of Canada, too, with growing interest in hydropower from Canada supplying New York and New England.

The U.S. Energy Information Administration says only three per cent of 90,000 U.S. dams currently generate electricity. A 2012 report from the U.S. Department of Energy found that those dams have 12,000 megawatts (MW) of potential hydroelectric generation capacity. (According to the National Hydropower Association, 1 MW can power 750 to 1,000 homes. That means 12,000 MW should be able to power more than nine million homes.)

As of May 2019, there were projects planned to convert 32 unpowered dams to add 330 MW to the grid over the next several years.

One that was recently completed was the Red Rock Hydroelectric Project, a 60-year-old flood control dam on the Des Moines River in Iowa that was retrofitted in 2014 to generate 36.4 MW at normal reservoir levels, and up to 55 MW at high reservoir levels and flows. It started feeding power to the grid this spring, and is expected to generate enough annually to supply power to 18,000 homes.

It's an approach that advocates say can convert more of the grid from fossil fuels to clean energy, often with a lower cost and environmental impact than building new dams.

Hydroelectric facilities can also be used for energy storage, complementing intermittent clean energy sources such as wind and solar with pumped storage to help maintain a more reliable, resilient grid.

The Nature Conservancy and the World Wildlife Fund are two environmental groups that oppose new hydro dams because they can block fish migration, harm water quality, damage surrounding ecosystems and release methane and CO2, and in some regions, Western Canada drought has reduced hydropower output as reservoirs run low. But they say adding turbines to non-powered dams can be part of a shift toward low-impact hydro projects that can support expansion of solar and wind power.

Paul Norris, president of the Ontario Waterpower Association, said there's typically widespread community support for such projects in his province amid ongoing debate over whether Ontario is embracing clean power in its future plans. "Any time that you can better use existing assets, I think that's a good thing."

New turbine technology means water doesn't need to fall from as great a height to generate power, providing opportunities at sites that weren't commercially viable in the past, Norris said, with recent investments such as new turbines in Manitoba showing what is possible.

In Ontario, about 1,000 unpowered dams are owned by various levels of government. "With the appropriate policy framework, many of these assets have the potential to be retrofitted for small hydro," Norris wrote in a letter to Ontario's Independent Electricity System Operator this year as part of a discussion on small-scale local energy generation resources.

He told CBC that several such projects are already in operation, such as a 950 kW retrofit of the McLeod Dam at the Moira River in Belleville, Ont., in 2008. 

Four hydro stations were going to be added during dam refurbishment on the Trent-Severn Waterway, but they were among 758 renewable energy projects cancelled by Premier Doug Ford's government after his election in 2018, a move examined in an analysis of Ontario's dirtier electricity outlook and its implications.

Patrick Bateman, senior vice-president of Waterpower Canada, said such dam retrofit projects are uncommon in most provinces. "I don't see it being a large part of the future electricity generation capacity."

He said there has been less movement on retrofitting unpowered dams in Canada compared to the U.S., because:

There are a lot more opportunities in Canada to refurbish large, existing hydro-generating stations to boost capacity on a bigger scale.

There's less growth in demand for clean energy, because more of Canada's grid is already non-carbon-emitting (80 per cent) compared to the U.S. (40 per cent).

Even so, Norris thinks Canadians should be looking at all opportunities and options when it comes to transitioning the grid away from fossil fuels, including retrofitting non-powered dams, especially as a recent report highlights Canada's looming power problem over the coming decades.

"If we're going to be serious about addressing the inevitable challenges associated with climate change targets and net zero, it really is an all-of-the-above approach."

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U.S. Utility-Scale Solar Delays driven by the coronavirus pandemic threaten construction timelines, supply chains, and financing, with interconnection and commissioning setbacks, module sourcing risks in Southeast Asia, and tax credit deadline pressures impacting project delivery.

Key Points

Setbacks to large U.S. solar builds from COVID-19 impacting construction, supply, financing, and permitting.

✅ Construction, interconnection, commissioning site visits delayed

✅ Supply chain risks for modules from Southeast Asia

✅ Tax credit deadline extensions sought by developers

About 5 gigawatts (GW) of big U.S. solar energy projects, enough to power nearly 1 million homes, could suffer delays this year if construction is halted for months due to the coronavirus pandemic, as the Covid-19 crisis hits renewables across the sector, according to a report published on Wednesday.

The forecast, a worst-case scenario laid out in an analysis by energy research firm Wood Mackenzie, would amount to about a third of the utility-scale solar capacity expected to be installed in the United States this year, even as US solar and wind growth continues under favorable plans.

The report comes two weeks after the head of the top U.S. solar trade group called the coronavirus pandemic (as solar jobs decline nationwide) "a crisis here" for the industry. Solar and wind companies are pleading with Congress to extend deadlines for projects to qualify for sunsetting federal tax credits.

Even the firm’s best-case scenario would result in substantial delays, mirroring concerns that wind investments at risk across the industry. With up to four weeks of disruption, the outbreak will push out 2 GW of projects, or enough to power about 380,000 homes. Before factoring in the impact of the coronavirus, Wood Mackenzie had forecast 14.7 GW of utility-scale solar projects would be installed this year.

In its report, the firm said the projects are unlikely to be canceled outright. Rather, they will be pushed into the second half of 2020 or 2021. The analysis assumes that virus-related disruptions subside by the end of the third quarter.

Mid-stage projects that still have to secure financing and receive supplies are at the highest risk, Wood Mackenzie analyst Colin Smith said in an interview, adding that it was too soon to know whether the pandemic would end up altering long-term electricity demand and therefore utility procurement plans, where policy shifts such as an ITC extension could reshape priorities.

Currently, restricted travel is the most likely cause of project delays, the report said. Developers expect delays in physical site visits for interconnection and commissioning, and workers have had difficulty reaching remote construction sites.

For earlier-stage projects, municipal offices that process permits are closed and in-person meetings between developers and landowners or local officials have slowed down.

Most solar construction is proceeding despite stay at home orders in many states because it is considered critical infrastructure, and long-term proposals like a tenfold increase in solar could reshape the outlook, the report said, adding that “that could change with time.”

Risks to supplies of solar modules include potential manufacturing shutdowns in key producing nations in Southeast Asia such as Malaysia, Vietnam and Thailand. Thus far, solar module production has been identified as an essential business and has been allowed to continue.

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Ontario Pumped Storage advances as Ontario's largest energy storage project, delivering clean electricity, long-duration capacity, and grid reliability for peak demand, led by TC Energy and Saugeen Ojibway Nation, with IESO review underway.

Key Points

A long-duration storage project in Meaford storing clean power for peak demand, supporting Ontario's emission-free grid.

✅ Stores clean electricity to power 1M homes for 11 hours

✅ Partnership: TC Energy and Saugeen Ojibway Nation

✅ Pending IESO review and OEB regulation decisions

In a bid to accelerate the province's ambitions for clean economic growth, TC Energy Corporation has announced significant progress in the development of the Ontario Pumped Storage Project. The Government of Ontario in Canada has unveiled a plan to address growing energy needs as a sustainable road map aimed at achieving an emission-free electricity sector, and as part of this plan, the Ministry of Energy is set to undertake a final evaluation of the proposed Ontario Pumped Storage Project. A decision is expected to be reached by the end of the year.

Ontario Pumped Storage is a collaborative effort between TC Energy and the Saugeen Ojibway Nation. The project is designed to be Ontario's largest energy storage initiative, capable of storing clean electricity to power one million homes for 11 hours. As the province strives to transition to a cleaner electricity grid by embracing clean power across sectors, long duration storage solutions like Ontario Pumped Storage will play a pivotal role in providing reliable, emission-free power during peak demand periods.

The success of the Project hinges on the approval of TC Energy's board of directors and a fruitful partnership agreement with the Saugeen Ojibway Nation. TC Energy is aiming for a final investment decision in 2024, as Ontario confronts an electricity shortfall in the coming years, with the anticipated in-service date being in the early 2030s, pending regulatory and corporate approvals.

“Ontario Pumped Storage will be a critical component of Ontario’s growing clean economy and will deliver significant benefits and savings to consumers,” said Corey Hessen, Executive Vice-President and President, TC Energy, Power and Energy Solutions. “Ontario continues to attract major investments that will have large power needs — many of which are seeking zero-emission energy before they invest. We are pleased the government is advancing efforts to recognize the significant role that long duration storage plays — firming resources, including new gas plants under provincial consideration, will become increasingly valuable in supporting a future emission-free electricity system.” 

The Municipality of Meaford also expressed its support for the project, recognizing the positive impact it could have on the local economy and the overall electricity system of Ontario. Additionally, various stakeholders, including LiUNA OPDC, LiUNA Local 183, and the Ontario Chamber of Commerce, lauded the potential for job creation, training opportunities, and resilient energy infrastructure as Ontario seeks new wind and solar power to ease a coming electricity supply crunch.

The timeline for Ontario Pumped Storage's progress includes a final analysis by the Independent Electricity System Operator (IESO) to confirm its role in Ontario's electricity system and in balancing demand and emissions during the transition, to be completed by 30 September 2023. Concurrently, the Ministry of Energy will engage in consultations on the potential regulation of the Project via the Ontario Energy Board, while debates over clean, affordable electricity intensify ahead of the Ontario election, with a final determination scheduled for 30 November 2023.

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Switch-On Project Electric Trucks accelerate California freight decarbonization, deploying Volvo VNR Electric rigs with high-capacity charging infrastructure, zero-emissions operations, and connected safety features to cut greenhouse gases and improve urban air quality.

Key Points

A California program deploying Volvo VNR Electric trucks and charging to decarbonize freight and improve air quality.

✅ 70 Volvo VNR Electric trucks for regional logistics

✅ Strategic high-capacity charging for heavy-duty fleets

✅ Lower TCO via fuel savings and reduced maintenance

In a significant step toward sustainable transportation, the Switch-On project is bringing 70 Volvo VNR Electric trucks to California. This initiative aims to bolster the state's efforts to reduce emissions and transition to greener logistics solutions. The arrival of these electric vehicles marks an important milestone in California's commitment to combating climate change and improving air quality.

The Switch-On Project: Overview and Goals

The Switch-On project is a collaborative effort designed to enhance electric truck adoption in California. It focuses on developing the necessary infrastructure and technology to support electric vehicles (EVs) in the freight and logistics sectors, building on recent nonprofit investments at California ports. The project not only seeks to increase the availability of electric trucks but also aims to demonstrate their effectiveness in real-world applications.

California has set ambitious goals for reducing greenhouse gas emissions, particularly from the transportation sector, which is one of the largest contributors to air pollution. By introducing electric trucks into freight operations, the state aims to significantly cut emissions, improve public health, and pave the way for a more sustainable future.

The Volvo VNR Electric Trucks

The Volvo VNR Electric trucks are specifically designed for regional distribution and urban transport, aligning with Volvo's broader electric lineup as the company expands offerings, making them ideal for the needs of California’s freight industry. With a range of approximately 250 miles on a single charge, these trucks can efficiently handle most regional routes. Equipped with advanced technology, including regenerative braking and connectivity features, the VNR Electric models enhance operational efficiency and safety.

These trucks not only provide a cleaner alternative to traditional diesel vehicles but also promise lower operational costs over time. With reduced fuel expenses and lower maintenance needs, and emerging vehicle-to-grid pilots that can create new value streams, businesses can benefit from significant savings while contributing to environmental sustainability.

Infrastructure Development

A crucial aspect of the Switch-On project is the development of charging infrastructure to support the new fleet of electric trucks. The project partners are working on installing high-capacity charging stations strategically located throughout California while addressing utility planning challenges that large fleets will pose to the power system. This infrastructure is essential to ensure that electric trucks can be charged efficiently, minimizing downtime and maximizing productivity.

The charging stations are designed to accommodate the specific needs of heavy-duty vehicles, and corridor models like BC's Electric Highway provide useful precedents for network design, allowing for rapid charging that aligns with operational schedules. This development not only supports the new fleet but also encourages other logistics companies to consider electric trucks as a viable option for their operations.

Benefits to California

The introduction of 70 Volvo VNR Electric trucks will have several positive impacts on California. Firstly, it will significantly reduce greenhouse gas emissions from the freight sector, contributing to the state’s ambitious climate goals even as grid expansion will be needed to support widespread electrification across sectors. The transition to electric trucks is expected to improve air quality, particularly in urban areas that struggle with high pollution levels.

Moreover, the project serves as a model for other regions considering similar initiatives. By showcasing the practicality and benefits of electric trucks, California hopes to inspire widespread adoption across the nation. As the market for electric vehicles continues to grow, this project can play a pivotal role in accelerating the transition to sustainable transportation solutions.

Industry and Community Reactions

The arrival of the Volvo VNR Electric trucks has been met with enthusiasm from both industry stakeholders and community members. Logistics companies are excited about the opportunity to reduce their carbon footprints and operational costs. Meanwhile, environmental advocates applaud the project as a crucial step toward cleaner air and healthier communities.

California’s commitment to sustainable transportation has positioned it as a leader in the shift to electric vehicles amid an ongoing biofuels vs. EVs debate over the best path forward, setting an example for other states and countries.

Conclusion

The Switch-On project represents a major advancement in California's efforts to transition to electric transportation. With the deployment of 70 Volvo VNR Electric trucks, the state is not only taking a significant step toward reducing emissions but also demonstrating the feasibility of electric logistics solutions.

As infrastructure develops and more electric trucks hit the roads, California is paving the way for a greener, more sustainable future in transportation. The success of this project could have far-reaching implications, influencing policies and practices in the broader freight industry and beyond.

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Hydro One Q2 Earnings show lower net income and EPS as mild weather curbed electricity demand; revenue missed Refinitiv estimates, while tree-trimming costs rose and the dividend remained unchanged for Ontario's grid operator.

Key Points

Hydro One Q2 earnings fell to $155M, EPS $0.26, revenue $1.41B; costs rose, demand eased, dividend held at $0.2415.

✅ Net income $155M; EPS $0.26 vs $0.34 prior year

✅ Revenue $1.41B; missed $1.44B estimate

✅ Dividend steady at $0.2415 per share

Hydro One Ltd.'s (H.TO 0.25%) second-quarter profit fell by nearly 23 per cent from last year to $155 million as the electricity utility reported spending more on tree-trimming work due to milder temperatures that also saw customers using less power, notwithstanding other periods where a one-time court ruling gain shaped quarterly results.

The Toronto-based company - which operates most of Ontario's power grid - and whose regulated rates are subject to an OEB decision, says its net earnings attributable to shareholders dropped to 26 cents per share from 34 cents per share when Hydro One had $200 million in net income.

Adjusted net income was also 26 cents per share, down from 33 cents per diluted share in the second quarter of 2018, while executive pay, including the CEO salary, drew public scrutiny during the period.

Revenue was $1.41 billion, down from $1.48 billion, while revenue net of purchased power was $760 million, down from $803 million, and across the sector, Manitoba Hydro's debt has surged as well.

Separately, Ontario introduced a subsidized hydro plan and tax breaks to support economic recovery from COVID-19, which could influence consumption patterns.

Analysts had estimated $1.44 billion of revenue and 27 cents per share of adjusted income, and some investors cite too many unknowns in evaluating the stock, according to financial markets data firm Refinitiv.

The publicly traded company, which saw a share-price drop after leadership changes and of which the Ontario government is the largest shareholder, says its quarterly dividend will remain at 24.15 cents per share for its next payment to shareholders in September.

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