NuclearÂ’s lost generation of workers

By Reuters


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On a flat, low-lying island nestled in crisp waters off the west coast of Finland, the first nuclear power plant ordered in Western Europe since 1986 is inching toward start-up.

Over 4,000 builders and engineers are at work on the sprawling Olkiluoto 3 project, whose turbine hall is so cavernous it could house two Boeing 747 jets stacked on top of each other.

When it is dark, which in winter is most of the day, enormous spotlights throw into focus scores of scaffolding towers and the red hauling equipment that encircle the grey, unfinished reactor building.

The heavy reactor vessel, made to withstand temperatures over 350 degrees Celsius, has been gingerly lifted into place by two cranes.

Inside the building, a dozen workers carrying a single pipe across their shoulders create a human caterpillar that carefully wends its way through tarpaulin-covered tunnels lit by lamps and chinks of daylight.

Walking through the expansive complex, still missing a domed cover on the reactor building, it takes a while to make out a peculiar but important detail: many of the engineers and building experts working here are in their late 50s and early 60s some are in their 30s, but few are in between.

There's a hole in the nuclear workforce, not just in Finland but across the Western world. For the moment, the operator of the Olkiluoto 3 plant, power utility Teollisuuden Voima Oyj TVO, is getting by with its most experienced staff. As those workers retire, though, the skills shortage could become a crisis.

"The nuclear industry has been in the desert for years and years and the question is how to revamp it and how to revamp human resources," says Colette Lewiner from Cap Gemini, a consultancy firm which raised concerns about the aging nuclear workforce in a report in 2008 and has warned "there will be no nuclear power renaissance" without efforts to tackle the problem. "The industry needs to ramp up and it needs to do it quickly."

Like a growing number of nations, Finland sees nuclear power as vital to its future prosperity. Olkiluoto 3 is the biggest investment in the history of Finnish industry. Helsinki wants nuclear power to provide more than a third of the country's electricity by 2020, reducing its dependence on carbon-emitting fossil fuels and energy imports from Russia. Globally, 15 countries are currently building 63 nuclear power plants, according to the International Atomic Energy Agency IAEA, the UN's atomic body. More than 65 additional states, newcomers to the technology, are jostling for advice on nuclear power.

Completion of Finland's new 1,600 megawatt reactor, built by French energy giant Areva and designed to withstand a plane crashing into it, is running four years late and will turn out far more expensive than its original 3 billion euro price tag. Areva alone has already taken 2.7 billion euros in writedowns on the project.

But delays and cost overruns are nothing compared to the skills crisis the project has helped expose, which is already affecting the nuclear sector around the world. "The global community is facing this big problem — where is this human resource?" says Yanko Yanev, head of the IAEA's nuclear knowledge management unit, set up 10 years ago when the Vienna-based agency first sounded the alarm. "When we started this program, people said, 'Ah, give us a break!' Now they are realizing the problem is more complex than they had first thought."

Simply put, the cause of the looming shortage can be pinned on two events: Three Mile Island in 1979 and Chernobyl in 1986.

In its first few decades, full of optimism and hope, the nuclear age was run and staffed by workers who had graduated between the early 1940s and late 1960s. People like Esa Mannola, who is responsible for nuclear safety at Olkiluoto. Mannola studied technical physics in the late 1960s and after a brief stint of military service, took a job working on the first two nuclear units based on Olkiluoto, which went online in 1979 and 1982. Like about 40 percent of TVO's staff, Mannola, 62, is over 50.

"Nuclear was a brand new technology and it was exciting," he says, sitting in a bright conference room not far from where enormous parts for the reactor have been shipped in and hauled into place. "I felt it would be important for the country's future."

Now head of a specialist team of around 20 people at TVO, the wry, softly spoken manager says he is always on the lookout for potential new hires, but has struggled at times to find young people to fill highly specialized roles.

That's not surprising. After Long Island and Chernobyl, many countries put their nuclear plans on ice or even phased out nuclear altogether, moving instead to more affordable fossil fuels. Students turned away from the nuclear sector, recruitment stagnated and many workers left. "Nuclear did not create a permanent demand on the market so that people could see it as a prospective career," IAEA's Yanev says.

The malaise lasted for well over a decade and created what Jorma Aurela, 51, chief engineer in Finland's energy department, calls a 'lost generation.' "Many of us were paralyzed. The people in this generation did not have a good future in front of them," says Aurela, who graduated just before the Chernobyl accident and as a young worker, used to occasionally tell people he was studying history because he was embarrassed to be associated with nuclear power. Around half his classmates quit the sector, he estimates. "Some have been found again but some are lost," he says. "They are lost to other parts of the industry or are mentally lost — they do not want to work for this industry again."

That's left older workers running Finland's plants, and could threaten the country's planned nuclear growth, especially as Helsinki has just okayed plans for two more new plants.

It's a similar story in other parts of the Western world. French utility EDF says around 50 percent of employees in its nuclear branch will retire by 2015 and that its workers are on average 43-44 years old.

In the United States, the peak age of workers in the nuclear sector is 48-52 while Britain estimates that up to two-thirds of its top-tier nuclear managers will retire by 2025. Worldwide, the nuclear industry employs around 250,000 people. Many first-generation nuclear staff have just retired or will do so in the next few years, taking with them skills and knowledge of complex, costly projects — just as the nuclear renaissance gets underway.

Sometimes referred to as a "silver tsunami," the departure of the first generation of nuclear workers is a big concern for the IAEA, which promotes civilian nuclear technology alongside its role as atomic watchdog. Many countries and private firms have new units planned or under construction, the agency said in a September report for a conference of its 151 member states. "They are facing shortages of experienced personnel and loss of knowledge as they look to replace retiring staff for their existing fleet while at the same time staffing new projects."

Finnish nuclear regulator Stuk says the lack of skilled workers is at least partly to blame for the delays at Olkiluoto. So many experienced nuclear manufacturers have left the business that project managers have been forced to look for subcontractors who then need nuclear training, the regulator said in a presentation in August. Building the next generation of power plants will be demanding, "because much of the earlier experience and resources have been lost from the nuclear industry."

And it's not just a lack of engineers. The global shortage runs from uranium miners to the waste-disposal experts who tidy up at the end of the nuclear cycle. "I've got colleagues running around Florida trying to find people to take their knowledge before they die," says Peter Waggitt, a uranium production consultant to the IAEA. "Most of the senior experts in uranium mining are pushing 50 and some of the best are over 70."

A fall in uranium prices in the late 1980s left scant incentive to enter the mining industry, while leaky, badly constructed mines gave uranium mining a bad name. But the ore is now trading at around $60 per pound, in real terms more than four times the 1990 price. More than 500 companies are involved in the sector and the IAEA says at least 30 new uranium mines will open before 2015. The workforce, says Waggitt, is struggling to keep pace.

In May 2008, BHP-Billiton said it would take longer than originally estimated to expand its Olympic Dam copper-uranium mine in Australia because the worldwide mining boom had created greater competition among skilled workers, higher prices and shortages of equipment. A skills shortage still hangs over the site, the world's biggest uranium deposit. The Australian government has estimated the country needs around 6,000 extra skilled workers during construction. Analysts have put the full expansion cost at $20 billion or more. Waggitt sees these problems as a warning to the wider industry: "Uranium mining is at the very beginning. If there is a problem in this sector it is a problem for the entire nuclear cycle."

In an attempt to tackle the shortfall, Finland is rushing out a blueprint that outlines how to get more young people studying nuclear energy. From his offices next to the presidential palace in Helsinki, chief engineer Aurela heads a 20-person committee which is assessing the needs of Finland's future nuclear workforce. The country wants to build another large plant at Olkiluoto by 2020. To staff such grand plans, Aurela says Finland will need to produce at least 100 nuclear specialists a year. At the moment it produces just 20 to 30.

After talks with industry, university and government officials, the committee will soon present a detailed report on what to do next. "It will come out in spring," Aurela says. "We don't have time for a year. We need to get the measures in place. We know some of them already — we only have two nuclear physics professors in Finland and we already know that that is too few."

One of those professors is Rainer Salomaa, who first got into nuclear as a way to escape the isolated southwestern port city of Turku where he grew up, 160 km 99 miles from where he now teaches near the capital. Producing the next generation of nuclear experts, says Salomaa, 62, should not be left to chance.

"With the development at Olkiluoto, people are much more excited," he says, sitting in his Aalto University office with its stacks of curled papers and heavy textbooks. "But when you are training new people, just to get an ordinary professional it takes around five years. It's a very slow process — and to get a professor it takes 15 years — that's one of the bottlenecks."

Student numbers in basic nuclear engineering at the university have gone up, to around 30 a year from about 12 in 2000, the low-point of the industry in Finland. Masters students in the field — who it is hoped will become the next generation of top-notch nuclear specialists — have risen to 6-10 per year from 2-3 a decade ago. That's an improvement, but nothing like what Salomaa says is needed. "For the moment we will survive, but once the two new units start at full speed the burning need will continue.

"The difficulty is that the number in the new generation anywhere is getting smaller. There's huge global competition for the bright students — they are wanted in economics, law — and engineering is not as fashionable as it used to be."

Finding the right people to fill all those jobs will not be easy. Before padding in flipflops and socks to a lecture theater, Salomaa explains what he is looking for in a student. "The courage to tackle non-definable problems," he says. "With nuclear engineering, you really have to have the courage not to give up."

At the same time, he wants students with a deep respect for safety and rules. His generation was rattled by two major nuclear accidents and had safety taught to them like a mantra. "The safety culture is a question of attitude. It has to be there from the start."

Few people have that mix: mathematically gifted, able to think outside the box, but also happy to abide by rules. On a grey, mild day in late September, some 30 young Finns who have at least some of those attributes listen to a lecture in a boxy, functional building on Aalto University's sprawling science and technology campus. "I could work in the nuclear industry, I think it has a future," says Karita Kajanto, a 21-year-old energy technology student in crisp, word-perfect English.

Like her other classmates, though, Kajanto notes that some are not so upbeat about nuclear physics. "Here at this university people have positive views but some friends studying humanities — and some people who don't really know about it — they have quite aggressive views that what we are doing is wrong," she says. To give them choices after graduation, many of her classmates also take classes in the much trendier renewable energies such as solar and hydropower.

One problem is cultural. "The way nuclear companies are managed and the way young people want to work are different," Cap Gemini's Lewiner says. "Nuclear companies can be quite hierarchical, it is very controlled — you are allowed to do this and not that. Some of that is needed of course, but it has to be softened."

Changing that image will take time — but it is possible. A recent study by polling company Gallup showed nearly one third of young Finns are in favor of nuclear power, the highest since the survey began in 1982. Ten percent were against it and the rest were neutral.

The country that has done the best job of promoting atomic power is France, which began its nuclear power program in the 1960s and now gets more than 75 percent of its electricity from nuclear. French firms, which have rounded up new employees at breakneck pace in the past half decade, say that drive combined with an increased involvement in training makes them less worried by potential staff shortages than they were in the mid-2000s. Areva, for instance, says that while it has recruited 53,000 people since 2005, the urgency has slowed: in part due to the economic crisis and in part because its needs are fairly well filled.

France even sees opportunity in others' problems. French universities have decided to teach some nuclear courses in English to prepare students for an international career and attract non-French speakers. "There has been renewed interest in training because of France's own needs and a worldwide nuclear rebirth," says Laurent Turpin, head of the Institute for Nuclear Sciences and Technology INSTN outside of Paris.

Several students, interestingly, said that having anti-nuclear parents pushed them to study the subject. "People around me were ecologists," said Olivier, a 24-year old masters student. "Because I questioned this complete refusal, I wanted to study nuclear by scientific pragmatism. I then realized it was a sector which had a future."

Rediscovering some of its original optimism and raising the industry's profile may help. "In some ways it has been kept pretty secret," says the IAEA's Yanev, 60, who became excited about nuclear power in his native Bulgaria as a teenager watching the space race in the 1960s. "It was definitely not explained properly to the public and it is complex. It is not so easy to understand the nuclear processes without the proper education."

Some governments have begun targeting female students and minorities. In Britain, where the government has plans for eight new nuclear plants to replace those due for closure over the next decade, the decommissioning authority has launched a drive to recruit young people.

"It was very much an image of a man in a white coat and a hard hat standing next to a big piece of machinery or a waste pond," says Carl Dawson, manager of Britain's nuclear graduate program which has taken in 35 people since it started in 2008. Dawson says the scheme focuses on students from different academic backgrounds who can then be "nuclearized" once on board.

One such graduate is 25-year-old Becky Read, who studied chemistry and biology at Birmingham University and met Dawson at a careers fair before she graduated two years ago. "Imagine, everyone else there had a little stall with brochures and his scheme had a massive silver inflatable igloo," she says. "The program sounded so different to everything else."

Now Read has done everything from assessing how nuclear buildings withstand earthquakes to explaining atomic waste storage to the public. She has been working in Vienna at the IAEA, learning about technical cooperation between member countries. Enthusiastic about the future of nuclear power, she nonetheless feels some in the industry could do more to pass on their knowledge to the new generation.

"Some people seem scared of change. They want things to stay the same. They might worry when they see some 'bright young spark' coming in," she says, sipping coffee on the flag-decked UN plaza in Vienna. "These are the people who built the reactors, so it feels like their baby."

Whatever efforts countries make, things might get even tougher. Some worry that China and India, which are rapidly expanding their nuclear power programs, could begin snapping up workers from Europe and North America.

More than two-thirds of reactors under construction worldwide are in Asia — primarily in China, which is building more than 20 and has around 40 more planned. According to statistics collected by the IAEA, China needs 1,200 graduates in nuclear engineering and technology a year. Chinese statistics suggest overall enrolment is matching demand but that it is struggling to recruit graduates in specialized areas of nuclear chemistry and the atomic fuel cycle as well as top managers. Nuclear power plant managers in Asia have told the IAEA that their best engineers are often poached to work on new projects, underlining the demand. "The problem in China is that they have too many young people but not the older ones," the IAEA's Yanev says, referring to the nuclear workforce. "The expansion is so fast that they don't have the necessary experience."

Fierce competition for skilled workers might force companies to entice older workers out of retirement in the Western world. "The industry cannot only count on the fresh minds that will be trained. That is not possible, it takes too long. It takes four to five years for initial education and some time inside the company before they are operational," says Cap Gemini's Lewiner.

Hans-Holger Rogner, head of nuclear energy planning and economics studies at the IAEA, agrees, and says the industry cannot afford any age prejudice. When uranium prices went through the roof in 2007, companies "really went to the old people's homes and said, 'Well, you can sit in your armchair rocking back-and-forth or you can get back in the field at 75 years old.' I guess a similar thing will happen — you bring back the old knowledge."

Rogner, 61, will leave the IAEA soon. Beginning his career in systems analysis after the oil price crisis in the 1970s, he says he plans to continue in the nuclear sector even if he officially retires.

"I am certainly not going to sit and twiddle my thumbs," he says. "There is a lot to do."

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N.S. abandons Atlantic Loop, will increase wind and solar energy projects

Nova Scotia Clean Power Plan 2030 pivots from the Atlantic Loop, scaling wind and solar, leveraging Muskrat Falls via the Maritime Link, adding battery storage and transmission upgrades to decarbonize grid and retire coal.

 

Key Points

Nova Scotia's 2030 roadmap to replace coal with wind, solar, hydro imports, storage, and grid upgrades.

✅ 1,000 MW onshore wind to supply 50% by 2030

✅ Battery storage sites and New Brunswick transmission upgrades

✅ Continued Muskrat Falls imports via Maritime Link

 

Nova Scotia is abandoning the proposed Atlantic Loop in its plan to decarbonize its electrical grid by 2030 amid broader discussions about independent grid planning nationwide, Natural Resources and Renewables Minister Tory Rushton has announced.

The province unveiled its clean power plan calling for 30 per cent more wind power and five per cent more solar energy in the Nova Scotia power grid over the coming years. Nova Scotia's plan relies on continued imports of hydroelectricity from the Muskrat Falls project in Labrador via the Emera-owned Maritime Link.

Right now Nova Scotia generates 60 per cent of its electricity by burning fossil fuels, mostly coal, and some increased use of biomass has also factored into the mix. Nova Scotia Power must close its coal plants by 2030 when 80 per cent of electricity must come from renewable sources in order reduce greenhouse gas emissions causing climate changes.

Critics have urged reducing biomass use in electricity generation across the province.

The clean power plan calls for an additional 1,000 megawatts of onshore wind by 2030 which would then generate 50 per cent of the the province's electricity, while also advancing tidal energy in the Bay of Fundy as a complementary source.    

"We're taking the things already know and can capitalize on while we build them here in Nova Scotia," said Rushton, "More importantly, we're doing it at a lower rate so the ratepayers of Nova Scotia aren't going to bear the brunt of a piece of equipment that's designed and built and staying in Quebec."

The province says it can meet its green energy targets without importing Quebec hydro through the Atlantic loop. It would have brought hydroelectric power from Quebec into New Brunswick and Nova Scotia via upgraded transmission links. But the government said the cost is prohibitive, jumping to $9 billion from nearly $3 billion three years ago with no guarantee of a secure supply of power from Quebec.

"The loop is not viable for 2030. It is not necessary to achieve our goal," said David Miller, the provincial clean energy director. 

Miller said the cost of $250 to $300 per megawatt hour was five times higher than domestic wind supply.

Some of the provincial plan includes three new battery storage sites and expanding the transmission link with New Brunswick. Both were Nova Scotia Power projects paused by the company after the Houston government imposed a cap on the utility's rate increased in the fall of 2022.

The province said building the 345-kilovolt transmission line between Truro, N.S., and Salisbury, N.B., and an extension to the Point Lepreau Nuclear Generating Station, as well as aligning with NB Power deals for Quebec electricity underway, would enable greater access to energy markets.

Miller says Nova Scotia Power has revived both.

Nova Scotia Power did not comment on the new plan, but Rushton spoke for the company.

"All indications I've had is Nova Scotia Power is on board for what is taking place here today," he said.

 

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Energize America: Invest in a smarter electricity infrastructure

Smart Grid Modernization unites distributed energy resources, energy storage, EV charging, advanced metering, and bidirectional power flows to upgrade transmission and distribution infrastructure for reliability, resilience, cybersecurity, and affordable, clean power.

 

Key Points

Upgrading grid hardware and software to integrate DERs, storage, and EVs for a reliable and affordable power system.

✅ Enables DER, storage, and EV integration with bidirectional flows

✅ Improves reliability, resilience, and grid cybersecurity

✅ Requires early investment in sensors, inverters, and analytics

 

Much has been written, predicted, and debated in recent years about the future of the electricity system. The discussion isn’t simply about fossil fuels versus renewables, as often dominates mainstream energy discourse. Rather, the discussion is focused on something much larger and more fundamental: the very design of how and where electricity should be generated, delivered, and consumed.

Central to this discussion are arguments in support of, or in opposition to, the traditional model versus that of the decentralized or “emerging” model. But this is a false choice. The only choice that needs making is how to best transition to a smarter grid, and do so in a reliable and affordable manner that reflects grid modernization affordability concerns for utilities today. And the most effective and immediate means to accomplish that is to encourage and facilitate early investment in grid-related infrastructure and technology.

The traditional, or centralized, model has evolved since the days of Thomas Edison, but the basic structure is relatively unchanged: generate electrons at a central power plant, transmit them over a unidirectional system of high-voltage transmission lines, and deliver them to consumers through local distribution networks. The decentralized, or emerging, model envisions a system that moves away from the central power station as the primary provider of electricity to a system in which distributed energy resources, energy storage, electric vehicles, peer-to-peer transactions, connected appliances and devices, and sophisticated energy usage, pricing, and load management software play a more prominent role.

Whether it’s a fully decentralized and distributed power system, or the more likely centralized-decentralized hybrid, it is apparent that the way in which electricity is produced, delivered, and consumed will differ from today’s traditional model. And yet, in many ways, the fundamental design and engineering that makes up today’s electric grid will serve as the foundation for achieving a more distributed future. Indeed, as the transition to a smarter grid ramps up, the grid’s basic structure will remain the underlying commonality, allowing the grid to serve as a facilitator to integrate emerging technologies, including EV charging stations, rooftop solar, demand-side management software, and other distributed energy resources, while maximizing their potential benefits and informing discussions about California’s grid reliability under ambitious transition goals.

A loose analogy here is the internet. In its infancy, the internet was used primarily for sending and receiving email, doing homework, and looking up directions. At the time, it was never fully understood that the internet would create a range of services and products that would impact nearly every aspect of everyday life from online shopping, booking travel, and watching television to enabling the sharing economy and the emerging “Internet of Things.”

Uber, Netflix, Amazon, and Nest would not be possible without the internet. But the rapid evolution of the internet did not occur without significant investment in internet-related infrastructure. From dial-up to broadband to Wi-Fi, companies have invested billions of dollars to update and upgrade the system, allowing the internet to maximize its offerings and give way to technological breakthroughs, innovative businesses, and ways to share and communicate like never before.  

The electric grid is similar; it is both the backbone and the facilitator upon which the future of electricity can be built. If the vision for a smarter grid is to deploy advanced energy technologies, create new business models, and transform the way electricity is produced, distributed, and consumed, then updating and modernizing existing infrastructure and building out new intelligent infrastructure need to be top priorities. But this requires money. To be sure, increased investment in grid-related infrastructure is the key component to transitioning to a smarter grid; a grid capable of supporting and integrating advanced energy technologies within a more digital grid architecture that will result in a cleaner, more modern and efficient, and reliable and secure electricity system.

The inherent challenges of deploying new technologies and resources — reliability, bidirectional flow, intermittency, visibility, and communication, to name a few, as well as emerging climate resilience concerns shaping planning today, are not insurmountable and demonstrate exactly why federal and state authorities and electricity sector stakeholders should be planning for and making appropriate investment decisions now. My organization, Alliance for Innovation and Infrastructure, will release a report Wednesday addressing these challenges facing our infrastructure, and the opportunities a distributed smart grid would provide. From upgrading traditional wires and poles and integrating smart power inverters and real-time sensors to deploying advanced communications platforms and energy analytics software, there are numerous technologies currently available and capable of being deployed that warrant investment consideration.

Making these and similar investments will help to identify and resolve reliability issues earlier, and address vulnerabilities identified in the latest power grid report card findings, which in turn will create a stronger, more flexible grid that can then support additional emerging technologies, resulting in a system better able to address integration challenges. Doing so will ease the electricity evolution in the long-term and best realize the full reliability, economic, and environmental benefits that a smarter grid can offer.  

 

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California proposes income-based fixed electricity charges

Income Graduated Fixed Charge aligns CPUC billing with utility fixed costs, lowers usage rates, supports electrification, and shifts California investor-owned utilities' electric bills by income, with CARE and Climate Credit offsets for low-income households.

 

Key Points

A CPUC proposal: an income-based monthly fixed fee with lower usage rates to align costs and aid low-income customers.

✅ Income-tiered fixed fees: $0-$42; CARE: $14-$22, by utility territory

✅ Usage rates drop 16%-22% to support electrification and cost-reflective billing

✅ Lowest-income save ~$10-$20; some higher earners pay ~$10+ more monthly

 

The Public Advocates Office (PAO) for the California Public Utilities Commission (CPUC) has proposed adding a monthly income-based fixed charge on electric utility bills based on income level.  

The rate change is designed to lower bills for the lowest-income residents while aligning billing more directly with utility costs. 

PAO’s recommendation for the Income Graduated Fixed Charge places fees between $22 and $42 per month in the three major investor-owned utilities’ territories, including an SDG&E minimum charge debate under way, for customers not enrolled in the California Alternative Rates for Energy (CARE) program. As seen below, CARE customers would be charged between $14 per month and $22 a month, depending on income level and territory.

For households earning $50,000 or less per year, the fixed charge would be $0, but only if the California Climate Credit is applied to offset the fixed cost.

Meanwhile, usage-based electricity rates are lowered in the PAO proposal, part of major changes to electric bills statewide. Average rates would be reduced between 16% to 22% for the three major investor-owned utilities.

The lowest-income bracket of Californians is expected to save roughly $10 to $20 a month under the proposal, while middle-income customers may see costs rise by about $20 a month, even as lawmakers seek to overturn income-based charges in Sacramento.

“We anticipate the vast majority of low-income customers ($50,000 or less per year) will have their monthly bills decrease by $10 or more, and a small proportion of the highest income earners ($100,000+ per year) will see their monthly bills rise by $10 or more,” said the PAO.

The charges are an effort to help suppress ever-increasing electricity generation and transmission rates, which are among the highest in the country, with soaring electricity prices reported across California. Rates are expected to rise sharply as wildfire mitigation efforts are implemented by the utilities found at fault for their origin.

“We are very concerned. However, we do not see the increases stopping at this point,” Linda Serizawa, deputy director for energy, PAO, told pv magazine. “We think the pace and scale of the [rate] increases is growing faster than we would have anticipated for several years now.”

Consumer advocates and regulators face calls for action on surging electricity bills across the state.

The proposed changes are also meant to more directly couple billing with the fixed charges that utilities incur, as California considers revamping electricity rates to clean the grid. For example, activities like power line maintenance, energy efficiency programs, and wildfire prevention are not expected to vary with usage, so these activities would be funded through a fixed charge.

Michael Campbell of the PAO’s customer programs team, and leader of the proposed program, likened paying for grid enhancements and other social programs with utility rate increases to “paying for food stamps by taxing food.” Instead, a fixed charge would cover these costs.

PAO said the move to lower rates for usage should help encourage electrification as California moves to replace heating and cooling, appliances, and gas combustion cars with electrified counterparts. In addition, lower rates mean the cost burden of running these devices is improved.

 

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Metering Pilot projects may be good example for Ontario utilities

Ontario Electricity Pricing Pilot Projects explore alternative rates beyond time-of-use, with LDCs and the Ontario Energy Board testing dynamic pricing, demand management, smart-meter billing, and residential customer choice to enhance service and energy efficiency.

 

Key Points

Ontario LDC trials testing alternatives to time-of-use rates to improve billing, demand response, and efficiency.

✅ Data shared across LDCs and Ontario Energy Board provincewide

✅ Tests dynamic pricing, peak/off-peak plans, demand management

✅ Insights to enhance customer choice, bills, and energy savings

 

The results from three electricity pilot projects being offered in southern Ontario will be valuable to utility companies across the province.

Ontario Energy Minister Glenn Thibeault was in Barrie on Tuesday to announce the pilot projects, which will explore alternative pricing plans for electricity customers from three different utility companies, informed by the electricity cost allocation framework guiding rate design.

"Everyone in the industry is watching to see how the pilots deliver.", said Wendy Watson, director of communications for Greater Sudbury Utilities.

"The data will be shared will all the LDCs [local distribution companies] in the province, and probably beyond...because the industry tends to share that kind of information."

Most electricity customers in the province are billed using time-of-use rates, including options like the ultra-low overnight rates that lower costs during off-peak periods, where the cost of electricity varies depending on demand.

The Ontario Energy Board said in a media release that the projects will give residential customers more choice in how much they pay for electricity at different times, reflecting changes for Ontario electricity consumers that expand plan options.

Pilot projects can help improve service

Watson says these kinds of projects give LDCs the chance to experiment and explore new ways of delivering their service, including demand-response initiatives like the Peak Perks program that encourage conservation.

"Any pilot project is a great way to see if in practice if the theory proves out, so I think it's great that the province is supporting these LDCs," she says.

GSU recently completed its own pilot project, the Home Energy Assessment and Retrofit (HEAR) program, which focused on customers who use electric baseboards to heat their homes, amid broader provincial support for electric bills to ease costs."We installed some measures, like programmable thermostats and a few other pieces of equipment into their house," Watson says. "We also made some recommendations about other things that they could do to make their homes more energy efficient."

At the end of the program, GSU provided customers with a report so that they could the see the overall impact on their energy consumption.

Watson says a report on the results of the HEAR program will be released in the near future, for other LDCs interested in new ways to improve their service.

"We think it's incumbent on every LDC...to see what ideas that they can come up with and get approved so they can best serve their customers."

 

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Vehicle-to-grid could be ‘capacity on wheels’ for electricity networks

Vehicle-to-Grid (V2G) enables EV batteries to provide grid balancing, flexibility, and demand response, integrating renewables with bidirectional charging, reducing peaker plant reliance, and unlocking distributed energy storage from millions of connected electric vehicles.

 

Key Points

Vehicle-to-Grid (V2G) lets EVs export power via bidirectional charging to balance grids and support renewables.

✅ Turns parked EVs into distributed energy storage assets

✅ Delivers balancing services and demand response to the grid

✅ Cuts peaker plant use and supports renewable integration

 

“There are already many Gigawatt-hours of batteries on wheels”, which could be used to provide balance and flexibility to electrical grids, if the “ultimate potential” of vehicle-to-grid (V2G) technology could be harnessed.

That’s according to a panel of experts and stakeholders convened by our sister site Current±, which covers the business models and technologies inherent to the low carbon transition to decentralised and clean energy. Focusing mainly on the UK grid but opening up the conversation to other territories and the technologies themselves, representatives including distribution network operator (DNO) Northern Powergrid’s policy and markets director and Nissan Europe’s director of energy services debated the challenges, benefits and that aforementioned ultimate potential.

Decarbonisation of energy systems and of transport go hand-in-hand amid grid challenges from rising EV uptake, with vehicle fuel currently responsible for more emissions than electricity used for energy elsewhere, as Ian Cameron, head of innovation at DNO UK Power Networks says in the Q&A article.

“Furthermore, V2G technology will further help decarbonisation by replacing polluting power plants that back up the electrical grid,” Marc Trahand from EV software company Nuvve Corporation added, pointing to California grid stability initiatives as a leading example.

While the panel states that there will still be a place for standalone utility-scale energy storage systems, various speakers highlighted that there are over 20GWh of so-called ‘batteries on wheels’ in the US, capable of powering buildings as needed, and up to 10 million EVs forecast for Britain’s roads by 2030.

“…it therefore doesn’t make sense to keep building expensive standalone battery farms when you have all this capacity on wheels that just needs to be plugged into bidirectional chargers,” Trahand said.

 

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IEA warns fall in global energy investment may lead to shortages

Global Energy Investment Decline risks future oil and electricity supply, says the IEA, as spending on upstream, coal plants, and grids falls while renewables, storage, and flexible generation lag in the energy transition.

 

Key Points

Multi-year cuts to oil, power, and grid spending that increase risks of future supply shortages and market tightness.

✅ IEA warns underinvestment risks oil supply squeeze

✅ China and India slow coal plant additions; renewables rise

✅ Batteries aid flexibility but cannot replace seasonal storage

 

An almost 20 per cent fall in global energy investment over the past three years could lead to oil and electricity shortages, as surging electricity demand persists, and there are concerns about whether current business models will encourage sufficient levels of spending in the future, according a new report.

The International Energy Agency’s second annual IEA benchmark analysis of energy investment found that while the world spent $US1.7 trillion ($2.2 trillion) on fossil-fuel exploration, new power plants and upgrades to electricity grids last year, with electricity investment surpassing oil and gas even as global energy investment was down 12 per cent from a year earlier and 17 per cent lower than 2014.

While the IEA said continued oversupply of oil and electricity globally would prevent any imminent shock, falling investment “points to a risk of market tightness and undercapacity at some point down the line’’.

The low crude oil price drove a 44 per cent drop in oil and gas investment between 2014 and 2016. It fell 26 per cent last year. It was due to falls in upstream activity and a slowdown in the sanctioning of conventional oilfields to the lowest level in more than 70 years.

“Given the depletion of existing fields, the pace of investment in conventional fields will need to rise to avoid a supply squeeze, even on optimistic assumptions about technology and the impact of climate policies on oil demand,’’ the IEA warned in its report released yesterday evening. “The energy transition has barely begun in several key sectors, such as transport and industry, which will continue to rely heavily on oil, gas and coal for the foreseeable future.’’

The fall in global energy spending also reflected declining investment in power generation, particularly from coal plants.

While 21 per cent of global ­energy investment was made by China in 2016, the world’s fastest growing economy had a 25 per cent decline in the commissioning of new coal-fired power plants, due largely to air pollution issues and investment in renewables.

Investment in new coal-fired plants also fell in India.

“India and China have slammed the brakes on coal-fired generation. That is the big change we have seen globally,’’ said ­Bruce Mountain a director at CME Australia.

“What it confirms is the ­pressures and the changes we are seeing in Australia, the restructuring of our energy supply, is just part of a global trend. We are facing the pressures more sharply in Australia because our power prices are very high. But that same shift in energy source in Australia are being mirrored internationally.’’ The IEA — a Paris-based adviser to the OECD on energy policy — also highlighted Australia’s reduced power reserves in its report and called for regulatory change to encourage greater use of renewables.

“Australia has one of the highest proportions of households with PV systems on their roof of any country in the world, and its ­electricity use in its National ­Electricity Market is spread out over a huge and weakly connected network,’’ the report said.

“It appears that a series of accompanying investments and regulatory changes are needed, including a plan to avoid supply threats, to use Australia’s abundant wind and solar potential: changing system operation methods and reliability procedures as well as investment into network capacity, flexible generation and storage.’’ The report found that in Australia there had been an increase in grid-scale installations mostly associated with large-scale solar PV plants.

Last month the Turnbull ­government revealed it was prepared to back the construction of new coal-fired power stations to prevent further shortfalls in electricity supplies, while the PM ruled out taxpayer-funded plants and declared it was open to using “clean coal” technology to replace existing generators.

He also pledged “immediate” ­action to boost the supply of gas by forcing exporters to divert ­production into the domestic ­market.

Since then technology billionaire Elon Musk has promised to solve South Australia’s energy ­issues by building the world’s largest lithium-ion battery in the state.

But the IEA report said batteries were unlikely to become a “one size fits all” single solution to ­electricity security and flexibility provision.

“While batteries are well-suited to frequency control and shifting hourly load, they cannot provide seasonal storage or substitute the full range of technical services that conventional plants provide to stabilise the system,’’ the report said.

“In the absence of a major technological breakthrough, it is most likely that batteries will complement rather than substitute ­conventional means of providing system flexibility. While conventional plants continue to provide essential system services, their business model is increasingly being called into question in ­unbundled systems.’’

 

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