Oil spill may spur action on clean energy

By New York Times


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Images of gushing oil and dying pelicans in the Gulf of Mexico have stirred anger and agony in Washington. But are they enough to prod the Senate to act on long-delayed clean energy and climate change legislation?

Energy, maybe. Climate, probably not. There is growing sentiment for a measure that penalizes BP, imposes higher costs and tougher regulations on offshore drillers and takes some steps toward reducing overall energy and petroleum consumption.

But despite the outrage over the spill, there appears to be limited appetite in the Senate for a broad-based effort to cap greenhouse gas emissions across the board.

Enacting that kind of legislation will require a grand bargain involving greater nuclear plant construction, concessions to the coal and utility industries, exemptions for major manufacturers and more, not less, domestic oil and gas drilling to attract Republican and moderate Democratic support.

A coalition of 60 votes needed to overcome a filibuster is not yet in sight. In the words of Senator Lindsey Graham of South Carolina, a Republican who worked on a climate change bill for months before pronouncing it hopeless, “There’s nowhere near 60 votes to save the polar bear.”

President Obama has said that the time has come to put a price on carbon dioxide pollution and vowed to find the votes for it this year. Reacting to the defeat of a Republican plan to block the Environmental Protection Agency from regulating climate-changing emissions, the president again cited the urgent need to pass clean-energy and climate legislation.

Behind the scenes, however, his advisers are working on a more modest package of energy-saving measures that stop well short of an effort to cap carbon emissions across all sectors of the economy.

Senator Harry Reid of Nevada, the Democratic leader, has also signaled that he is open to patching together a series of limited energy measures rather than trying to push through a big climate bill like one sponsored by Senators John Kerry, Democrat of Massachusetts, and Joseph I. Lieberman, independent of Connecticut.

Mr. Reid has asked top committee leaders for ideas on how to structure a package of energy initiatives to bring to the Senate floor in July, a clear sign that he does not believe that the Kerry-Lieberman bill has a chance to pass on its own. An aide said Mr. Reid would refine his strategy after meeting with the entire Senate Democratic caucus. Mr. Kerry is to deliver a plea for his broad measure at that session, aides said.

Mr. Graham said that until the causes of the BP oil spill were identified and addressed, he would not vote for any sweeping climate change legislation. Instead, he endorsed a bill introduced by Senator Richard G. Lugar, Republican of Indiana, that sets higher fuel economy standards for cars, provides incentives for the development of alternative fuels and imposes stricter efficiency standards on buildings. The Lugar proposal includes no cap on carbon emissions but would seek to reduce greenhouse gas pollution through energy-saving steps.

“I’m not going to take a vote on the floor without a rational policy because we’re in the middle of a major oil spill,” Mr. Graham said. “I’m not going to put that on the table until I find out what happened in the gulf and make sure it doesn’t happen again.”

Mr. Lieberman said the oil spill made it more urgent to enact comprehensive energy and climate change legislation. He acknowledged, however, that the measure he and Mr. Kerry sponsored lacked the votes it needs and would probably be carved up and served in combination with other bills like Mr. LugarÂ’s.

The oil spill, Mr. Lieberman said, has concentrated the capitalÂ’s mind on energy policy and the problem of oil imports, but there is still no agreement on how to address it.

“The spill is significant, it is horrific, and it is the result of some negligence by business and government,” he said. “Ultimately, it will be used by both sides in the energy and climate debate. But the necessity of doing something in this session stands on its own merits.”

Senate Republican leaders accused Democrats and the White House of trying to exploit the oil spill for political gain. Senator Mitch McConnell of Kentucky, the Republican leader, said last week that the Democrats were using the calamity in the gulf to push what he described as a job-killing climate change bill.

“What I believe most of my members, if not all of them, and a substantial number of Democrats in the United States Senate will not be interested in is seizing on the oil spill in the gulf and using that as a rationale, if you will, for passing a national energy tax referred to down here at the White House as cap and trade,” Mr. McConnell said after meeting with Mr. Obama and top White House advisers.

Environmental advocates who have pushed hard for years for climate change legislation said they believed that the BP leak could tip the scales in favor of action. What form that action takes is still murky.

“The oil spill is a disaster, but I think it increases the likelihood of a bill being enacted this year,” said Dan Lashof, director the Natural Resources Defense Council climate center. “There is still a question whether a bill that passes the Senate will be effective in responding both to the immediate needs to tighten drilling regulation as well as the larger issue of actually ending our addiction to oil and getting us on a clean energy path.”

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Enbridge Insists Storage Hub Lives On After Capital Power Pullout

Enbridge Alberta CCS Project targets carbon capture and storage in Alberta, capturing emissions from industrial emitters to advance net-zero goals, leveraging carbon pricing, regulatory support, and a hub model despite a key partner's exit.

 

Key Points

A proposed Alberta carbon capture hub by Enbridge to store industrial emissions and support net-zero targets.

✅ Seeks emitters across power, oil and gas, and heavy industry

✅ Backed by carbon pricing, regulation, and net-zero mandates

✅ Faces high capex, storage risk, and anchor-tenant uncertainty

 

Enbridge Inc., a Canadian energy giant, is digging its heels in on its proposed carbon capture and storage (CCS) project in Alberta. This comes despite the recent withdrawal of Capital Power, a major potential emitter that was expected to utilize the CCS technology. Enbridge maintains the project remains viable, but questions linger about its future viability without a cornerstone anchor.

The CCS project, envisioned as a major carbon capture hub in Alberta, aimed to capture emissions from industrial facilities and permanently store them underground. This technology has the potential to play a significant role in reducing greenhouse gas emissions and mitigating the effects of climate change, alongside grid solutions like bridging the Alberta-B.C. electricity gap that can complement decarbonization efforts.

Capital Power's decision to shelve its $2.4 billion Genesee Generating Station project, which was designed to integrate with the CCS hub, threw a wrench into Enbridge's plans. The Genesee project was expected to be a key source of emissions for capture and storage, and its status is being weighed as Ottawa advances the federal coal plan to phase out unabated coal.

Enbridge, however, remains optimistic. The company cites ongoing discussions with other potential emitters interested in utilizing the CCS technology, amid new funding signals such as the U.S. DOE's $110M for CCUS that highlight momentum. They believe the project holds significant value despite Capital Power's departure.

"We are confident in the long-term viability of the project and continue to actively engage with potential customers," said Enbridge spokesperson Rachel Giroux. "Carbon capture and storage is a critical technology for achieving net-zero emissions, and we believe there is a strong business case for our CCS project."

Enbridge's confidence hinges on several factors. Firstly, they believe there is a growing appetite for CCS technology amongst industrial facilities facing increasing pressure to reduce their carbon footprint. Regulations and carbon pricing mechanisms, including new U.S. EPA power plant rules that test CCS readiness, could further incentivize companies to adopt CCS solutions.

Secondly, Enbridge highlights the potential for capturing emissions from not just power plants but also from other industrial sectors like oil and gas production and clean hydrogen projects in Canada, where reforming processes can generate CO2. This broader application could significantly increase the captured carbon volume and strengthen the project's economic viability.

However, skepticism remains. Critics point to the high upfront costs associated with CCS development and the nascent stage of the technology. They argue that without a guaranteed stream of captured emissions, the project might not be financially sound. Additionally, the long-term safety and effectiveness of large-scale carbon storage solutions remain under scrutiny.

The success of Enbridge's CCS project hinges on attracting new emitters. Replacing Capital Power's contribution will be a significant challenge. Enbridge will need to demonstrate the project's economic viability and navigate the complex regulatory landscape surrounding CCS technology.

The Alberta government's position on CCS is crucial. While the government has expressed support for the technology, the level of financial and regulatory incentives offered will significantly impact investor confidence, especially as the IEA net-zero outlook underscores Canada's need for much more electricity. A clear and stable policy framework will be essential for attracting emitters to the project.

The future of Enbridge's CCS project remains uncertain. Capital Power's withdrawal is a setback, but Enbridge's continued commitment suggests they believe the technology holds promise. Whether they can find enough emitters to justify the project's development will be a critical test. The outcome will have significant implications for the future of CCS technology in Alberta and Canada's broader efforts to achieve net-zero emissions, including Canada-Germany clean energy cooperation that seeks to scale low-carbon fuels.

 

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The CIB and private sector partners to invest $1.7 billion in Lake Erie Connector

Lake Erie Connector Investment advances a 1,000 MW HVDC transmission link connecting Ontario to the PJM Interconnection, enhancing grid reliability, clean power trade, and GHG reductions through a public-private partnership led by CIB and ITC.

 

Key Points

A $1.7B public-private HVDC project linking Ontario and PJM to boost reliability, cut GHGs, and enable clean power trade.

✅ 1,000 MW, 117 km HVDC link between Ontario and PJM

✅ $655M CIB and $1.05B private financing, ITC to own-operate

✅ Cuts system costs, boosts reliability, reduces GHG emissions

 

The Canada Infrastructure Bank (CIB) and ITC Investment Holdings (ITC) have signed an agreement in principle to invest $1.7 billion in the Lake Erie Connector project.

Under the terms of the agreement, the CIB will invest up to $655 million or up to 40% of the project cost. ITC, a subsidiary of Fortis Inc., and private sector lenders will invest up to $1.05 billion, the balance of the project's capital cost.

The CIB and ITC Investment Holdings signed an agreement in principle to invest $1.7B in the Lake Erie Connector project.

The Lake Erie Connector is a proposed 117 kilometre underwater transmission line connecting Ontario with the PJM Interconnection, the largest electricity market in North America, and aligns with broader regional efforts such as the Maine transmission line to import Quebec hydro to strengthen cross-border interconnections.

The 1,000 megawatt, high-voltage direct current connection will help lower electricity costs for customers in Ontario and improve the reliability and security of Ontario's energy grid, complementing emerging solutions like battery storage across the province. The Lake Erie Connector will reduce greenhouse gas emissions and be a source of low-carbon electricity in the Ontario and U.S. electricity markets.

During construction, the Lake Erie Connector is expected to create 383 jobs per year and drive more than $300 million in economic activity, and complements major clean manufacturing investments like a $1.6 billion battery plant in the Niagara Region that supports the EV supply chain. Over its life, the project will provide 845 permanent jobs and economic benefits by boosting Ontario's GDP by $8.8 billion.

The project will also help Ontario to optimize its current infrastructure, avoid costs associated with existing production curtailments or shutdowns. It can leverage existing generation capacity and transmission lines to support electricity demand, alongside new resources such as the largest battery storage project planned for southwestern Ontario.

ITC continues its discussions with First Nations communities and is working towards meaningful participation in the near term and as the project moves forward to financial close.

The CIB anticipates financial close late in 2021, pending final project transmission agreements, with construction commencing soon after. ITC will own the transmission line and be responsible for all aspects of design, engineering, construction, operations and maintenance.

ITC acquired the Lake Erie Connector project in August 2014 and it has received all necessary regulatory and permitting approvals, including a U.S. Presidential Permit and approval from the Canada Energy Regulator.

This is the CIB's first investment commitment in a transmission project and another example of the CIB's momentum to quickly implement its $10B Growth Plan, amid broader investments in green energy solutions in British Columbia that support clean growth.

 

Endorsements

This project will allow Ontario to export its clean, non-emitting power to one of the largest power markets in the world and, as a result, benefit Canadians economically while also significantly contributing to greenhouse gas emissions reductions in the PJM market. The project allows Ontario to better manage peak capacity and meet future reliability needs in a more sustainable way. This is a true win-win for both Canada and the U.S., both economically and environmentally.
Ehren Cory, CEO, Canada Infrastructure Bank

The Lake Erie Connector has tremendous potential to generate customer savings, help achieve shared carbon reduction goals, and increase electricity system reliability and flexibility. We look forward to working with the CIB, provincial and federal governments to support a more affordable, customer-focused system for Ontarians. 
Jon Jipping, EVP & COO, ITC Investment Holdings Inc., a subsidiary of Canadian-based Fortis Inc. 

We are encouraged by this recent announcement by the Canada Infrastructure Bank. Mississaugas of the Credit First Nation has an interest in projects within our historic treaty lands that have environmental benefits and that offer economic participation for our community.
Chief Stacey Laforme, Mississaugas of the Credit First Nation

While our evaluation of the project continues, we recognize this project can contribute to the economic resilience of our Shareholder, the Mississaugas of the Credit First Nation. Subject to the successful conclusion of our collaborative efforts with ITC, we look forward to our involvement in building the necessary infrastructure that enable Ontario's economic engine.
Leonard Rickard, CEO, Mississaugas of the Credit Business Corporation

The Lake Erie Connector demonstrates the advantages of public-private partnerships to develop critical infrastructure that delivers greater value to Ontarians. Connecting Ontario's electricity grid to the PJM electricity market will bring significant, tangible benefits to our province. This new connection will create high-quality jobs, improve system flexibility, and allow Ontario to export more excess electricity to promote cost-savings for Ontario's electricity consumers.
Greg Rickford, Minister of Energy, Northern Development and Mines, Minister of Indigenous Affairs

With the US pledging to achieve a carbon-free electrical grid by 2035, Canada has an opportunity to export clean power, helping to reduce emissions, maximizing clean power use and making electricity more affordable for Canadians. The Lake Erie Connector is a perfect example of that. The Canada Infrastructure Bank's investment will give Ontario direct access to North America's largest electricity market - 13 states and D.C. This is part of our infrastructure plan to create jobs across the country, tackle climate change, and increase Canada's competitiveness in the clean economy, alongside innovation programs like the Hydrogen Innovation Fund that foster clean technology.


Quick Facts

  • The Lake Erie Connector is a 1,000 megawatt, 117 kilometre long underwater transmission line connecting Ontario and Pennsylvania.
  • The PJM Interconnection is a regional transmission organization coordinating the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
  • The project will help to reduce electricity system costs for customers in Ontario, and aligns with ongoing consultations on industrial electricity pricing and programs, while helping to support future capacity needs.
  • The CIB is mandated to invest CAD $35 billion and attract private sector investment into new revenue-generating infrastructure projects that are in the public interest and support Canadian economic growth.
  • The investment commitment is subject to final due diligence and approval by the CIB's Board.

 

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Calgary's electricity use soars in frigid February, Enmax says

Calgary Winter Energy Usage Surge highlights soaring electricity demand, added megawatt-hours, and grid reliability challenges driven by extreme cold, heating loads, and climate change, with summer air conditioning also shifting seasonal peaks.

 

Key Points

A spike in Calgary's power use from extreme cold, adding 22k MWh and testing reliability as heating demand rises.

✅ +22,000 MWh vs Feb 2018 amid fourth-coldest February

✅ Heating loads spike; summer A/C now drives peak demand

✅ Grid reliability monitored; more solar and green resources ahead

 

February was so cold in Calgary that the city used enough extra energy to power 3,400 homes for a whole year, echoing record-breaking demand in B.C. in 2021 during severe cold.

Enmax Power Corporation, the primary electricity utility in the city, says the city 's energy consumption was up 22,000 megawatt hours last month compared with Februray 2018.

"We've seen through this cold period our system has held up very well. It's been very reliable," Enmax vice-president Andre van Dijk told the Calgary Eyeopener on Friday. "You know, in the absence of a windstorm combined with cold temperatures and that sort of thing, the system has actually held up pretty well."

The past month was the fourth coldest in Calgary's history, and similar conditions have pushed all-time high demand in B.C. in recent years across the West. The average temperature for last month was –18.1 C. The long-term average for February is –5.4 C.

 

Watching use, predicting issues

The electricity company monitors demand and load on a daily basis, always trying to predict issues before they happen, van Dijk said, and utilities have introduced winter payment plans to help customers manage bills during prolonged cold.

One of the issues they're watching is climate change, and how extreme temperatures and weather affect both the grid's reliability, as seen when Quebec shattered consumption records during cold snaps, and the public's energy use.

The colder it gets, the higher you turn up the heat. The hotter it is, the more you use air conditioning.

He also noted that using fuels then contributes to climate change, creating a cycle.

​"We are seeing variations in temperature and we've seen large weather events across the continent, across the world, in fact, that impact electrical systems, whether that's flooding, as we've experienced here, or high winds, tornadoes," van Dijk said.

"Climate change and changing weather patterns have definitely had had an impact on us as an electrical industry."

In 2012, he said, Calgary switched from using the most power during winter to using the most during summer, in large part due to air conditioning, he said.

"Temperature is a strong influencer of energy consumption and of our demand," van Dijk said.

Christmas tree lights have also become primarily LED, van Dijk said, which cuts down on a big energy draw in the winter.

He said he expects more solar and other green resources will be added into the electrical system in the future to mitigate how much the increasingly levels of energy use impact climate change, and to help moderate electricity costs in Alberta over time.

 

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Experts warn Albertans to lock in gas and electricity rates as prices set to soar

Alberta Energy Price Spike signals rising electricity and natural gas costs; lock in fixed rates as storage is low, demand surged in heat waves, and exports rose after Hurricane Ida, driving volatility and higher futures.

 

Key Points

An anticipated surge in Alberta electricity and natural gas prices, urging consumers to lock fixed rates to reduce risk.

✅ Fixed-rate gas near $3.79/GJ vs futures approaching $6/GJ

✅ Low storage after heat waves and U.S. export demand

✅ Switch providers or plans; UCA comparison tool helps

 

Energy economists are warning Albertans to review their gas and electricity bills and lock in a fixed rate if they haven't already done so because prices are expected to spike in the coming months.

"I have been urging anyone who will listen that every single Albertan should be on a fixed rate for this winter," University of Calgary energy economist Blake Shaffer said Monday. "And I say that for both natural gas and power."

Shaffer said people will rightly point out energy costs make up only roughly a third of their monthly bill. The rest of the costs for such things as delivery fees can't be avoided. 

But, he said, "there is an energy component and it is meaningful in terms of savings." 

For example, Shaffer said, when he checked last week, a consumer could sign a fixed rate gas contract for $3.79 a gigajoule and the current future price for gas is nearly $6 a gigajoule.

A typical household would use about 15 gigajoules a month, he said, so a consumer could save $30 to $45 a month for five months. For people on lower or fixed incomes, "that is a pretty significant saving."

Comparable savings can also be achieved with electricity, he said.

Shaffer said research has shown households that are least able to afford sharp increases in gas and electrical bills are less likely to pick up the phone and call their energy provider and either negotiate a lower fixed rate contract or jump to a new provider. 

But, he said, it is definitely worth the time and effort, particularly as Calgary electricity bills are rising across the city. Alberta's Utilities Consumer Advocate has a handy cost comparison tool on its website that allows consumers to conduct regional price comparisons that will assist in making an informed decision.

"Folks should know that for most providers you can change back to a floating rate any time you want," Shaffer said.

Summer heat wave affected natural gas supply
Why are energy prices set to spike in Alberta, which is a major producer of natural gas?

Sophie Simmonds, managing director of the brokerage firm Anova Energy, said Alberta is now generating the majority of its power using natural gas. 

The heat wave in June and July created record electrical demand. Normally, natural gas is stored in the summer for use in the winter. But this year, there was much greater gas consumption in the summer and so less was stored. 

Alberta also set a new electricity usage record during a recent deep freeze, underscoring system stress.

On top of that, Alberta has been exporting much more natural gas to the United States since August and September because Hurricane Ida knocked out natural gas assets in the Gulf of Mexico.

"So what this means is we are actually going into winter with very, very low storage numbers," Simmonds said.

Why natural gas prices have surged to some of their highest levels in years
Canadians to remain among world's top energy users even as government strives for net zero
Consultant Matt Ayres said he believes rising electricity prices also are being affected by Alberta's transition from carbon-intensive fuel sources to less carbon-intensive fuel sources.

"That transition is not always smooth," said Ayres, who is also an adjunct assistant professor at the University of Calgary's School of Public Policy. 

"It is my view that at least some of the price increases we are seeing on electricity comes down to difficulties imposed by that transition and also by a reduction in competition amongst generators, as well as power market overhaul debates shaping policy." 

In 2019, under the leadership of Premier Jason Kenney the UCP government removed the former NDP government's rate cap on electricity at the time.

The NDP has called for the government to reinstate the cap but the UCP government has dismissed that as unsustainable and unrealistic.

 

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Westinghouse AP1000 Nuclear Plant Breaks A First Refueling Outage Record

AP1000 Refueling Outage Record showcases Westinghouse nuclear power excellence as Sanmen Unit 2 completes its first reactor refueling in 28.14 days, highlighting safety, reliability, outage optimization, and economic efficiency in China.

 

Key Points

It is the 28.14-day initial refueling at Sanmen Unit 2, a global benchmark achieved with Westinghouse AP1000 technology.

✅ 28.14-day first refueling at Sanmen Unit 2 sets global benchmark

✅ AP1000 design simplifies systems, improves safety and reliability

✅ Outage optimization by Westinghouse and CNNC accelerates schedules

 

Westinghouse Electric Company China operations today announced that Sanmen Unit 2, one of the world's first AP1000® nuclear power plants, has set a new refueling outage record in the global nuclear power industry, completing its initial outage in 28.14 days.

"Our innovative AP1000 technology allows for simplified systems and significantly reduces the amount of equipment, while improving the safety, reliability and economic efficiency of this nuclear power plant, reflecting global nuclear milestones reached recently," said Gavin Liu, president of the Westinghouse Asia Operating Plant Services Business. "We are delighted to see the first refueling outage for Sanmen Unit 2 was completed in less than 30 days. This is a great achievement for Sanmen Nuclear Power Company and further demonstrates the outstanding performance of AP1000 design."

All four units of the AP1000 nuclear power plants in China have completed their first refueling outages in the past 18 months, aligning with China's nuclear energy development momentum across the sector.  The duration of each subsequent outage has fallen significantly - from 46.66 days on the first outage to 28.14 days on Sanmen Unit 2.

"During the first AP1000 refueling outage at the Sanmen site in December 2019, a Westinghouse team of experts worked side-by-side with the Sanmen outage team to partner on outage optimization, and immediately set a new standard for a first-of-a-kind outage, while major refurbishments like the Bruce refurbishment moved forward elsewhere," said Miao Yamin, chairman of CNNC Sanmen Nuclear Power Company Limited. "Lessons learned were openly exchanged between our teams on each subsequent outage, which has built to this impressive achievement."

Westinghouse provided urgent technical support on critical issues during the outage, as international programs such as Barakah Unit 1 achieved key milestones, to help ensure that work was carried out on schedule with no impact to critical path.

In addition to the four AP1000 units in China, two units are under construction at the Vogtle expansion near Waynesboro, Georgia, USA.

Separately, in the United States, a new reactor startup underscored renewed momentum in nuclear generation this year.

 

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Lawmakers push bill to connect Texas grid to rest of the nation

Connect the Grid Act links ERCOT to neighboring grids via high-voltage interconnections, enhancing reliability, resilience, and renewables integration. It enables power imports and exports with SPP, MISO, and the Western Interconnection under FERC oversight.

 

Key Points

A plan to link ERCOT with neighboring grids, improving reliability, enabling energy trade, and integrating renewables.

✅ High-voltage ties with SPP, MISO, and the Western Interconnection

✅ Enables imports during crises and exports of surplus power

✅ Brings ERCOT under FERC oversight; DoE to study Mexico links

 

In the aftermath of the devastating 2021 Texas blackouts, which exposed the vulnerabilities of the state's energy infrastructure, a significant legislative effort is underway to transform Texas from an energy island into a connected component of the broader U.S. power grid. Spearheaded by U.S. Representative Greg Casar, D-Austin, the proposed Connect the Grid Act is part of a push for smarter electricity infrastructure that seeks to remedy the isolation of the Electric Reliability Council of Texas (ERCOT) from neighboring power grids, a condition that significantly contributed to the crisis during Winter Storm Uri.

The blackouts, which left millions without power and resulted in significant loss of life and economic damage, underscored the inherent risks of Texas's unique energy infrastructure. Unlike the rest of the continental U.S., Texas's grid operates independently, limiting its ability to import electricity during emergencies. This isolation was a critical factor in the state's inability to respond effectively to the increased demand for power during the storm.

Recognizing the urgent need for a more resilient and integrated energy system, Rep. Casar's legislation aims to establish high-voltage connections between ERCOT and adjacent grid-operating organizations, including the Southern Power Pool, MISO, and the Western Interconnection. This would not only improve the reliability of Texas's power supply by enabling energy imports during crises but also allow the state to export surplus energy, thereby enhancing the economic efficiency and sustainability of its energy market.

The Connect the Grid Act proposes a range for the new connections' transfer capabilities, aiming to significantly boost the amount of power that can be shared between Texas and its neighbors. Such interconnectivity is anticipated to reduce energy costs for consumers by mitigating scarcity and enabling access to Texas's vast renewable energy resources, even as grid modernization affordability remains a point of debate among stakeholders. However, the bill faces opposition due to concerns over federal oversight, as it would bring ERCOT under the jurisdiction of the Federal Energy Regulatory Commission (FERC).

Some analysts note that policies such as later school start dates can ease late-summer peak demand as well.

At a press conference held at the IBEW Local 520 headquarters, Rep. Casar, along with environmental groups, labor unions, and frontline workers, highlighted the benefits of the proposed legislation. The bill also includes provisions for a Department of Energy study on the potential benefits of interconnecting with Mexico, and parallels proposals for macrogrids in Canada that seek greater reliability across borders.

The Connect the Grid Act reflects a broader national trend towards increasing the interconnectivity of regional power grids, a move deemed essential for the transition to renewable energy and combating climate change risks to the U.S. grid through expanded interconnection. By enabling the flow of clean energy from renewable-rich areas like Texas to energy-hungry urban centers, the legislation supports a more sustainable and resilient national energy infrastructure.

Critics of Texas's grid independence, including energy experts and federal regulators, have long advocated for such interconnections. They argue that increased access to neighboring grids could have mitigated the effects of the 2021 blackouts and emphasize the importance of a grid that can withstand extreme weather events. The Federal Energy Regulatory Commission and the North American Electric Reliability Corp. have both explored mandates and studies to promote electricity transfer between regional grids, while states like California grid upgrades are investing to modernize networks as well, highlighting the national importance of grid interconnectivity.

Despite the potential challenges of increased federal regulation, proponents of the Connect the Grid Act argue that the benefits of interconnection far outweigh the drawbacks. By reducing energy costs, enhancing grid reliability, and promoting renewable energy, the legislation aims to secure a more sustainable and equitable energy future for Texas and the nation.

If passed, the Connect the Grid Act would mark a historic shift in Texas's energy policy, ending the state's long-standing isolation and positioning it as a key player in the national and potentially international energy landscape, and echoes calls for a western Canadian electricity grid to strengthen regional ties. The bill sets a completion deadline of January 1, 2035, for the construction of the new connections, with other projects, like the one by Pattern Energy, potentially connecting ERCOT to parts of the Southeastern grid even earlier, by 2029. This legislative effort represents a critical step towards ensuring that Texas can meet its energy needs reliably and sustainably, while also contributing to the broader goal of transitioning to a cleaner, more resilient power system.

 

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