A Plutonic Power small hydro project in Toba Inlet will receive up to $73 million in funding under Ottawa's ecoENERGY for Renewable Power Program, Natural Resources Minister Lisa Raitt announced.
The East Toba River and Montrose Creek hydroelectric project gets a $10 per megawatt hour incentive from the federal government for the first 10 years of operation.
The $600-million, 196-megawatt project is on schedule for completion in mid-2010, according to a news release.
Plutonic and its partner GE Energy Financial Services, will get a $10 per megawatt hour incentive on all electricity produced over the first 10 years of operations and the government calculates that will add up to $72 million over a decade, according to the release.
“This is one more example of how our government is increasing Canada's ability to produce clean, renewable energy,” Raitt said in the news release.
“This investment in hydroelectric power will create jobs and contribute to competitive energy prices in the province, all while reducing our impact on the environment.”
“The development of clean, renewable energy projects is instrumental in achieving both federal and provincial governments' initiatives on climate change and federal support through programs like ecoENERGY are important to the industry's success,” Plutonic vice-chair and CEO Donald McInnes said in the release.
U.S. Residential Electricity Bills rose on stronger demand, inflation, and fuel costs, with higher retail prices, kWh consumption, and extreme weather driving 2022 spikes; forecasts point to stable summer usage and slight price increases.
Key Points
They are average household power costs shaped by prices, kWh use, weather, and upstream fuel costs.
✅ 2022 bills up 13% nominal, 5% real vs. 2021
✅ Retail price rose 11%; consumption up 2% to 907 kWh
✅ Fuel costs to plants up 34%, pressuring rates
In nominal terms, the average monthly electricity bill for residential customers in the United States increased 13% from 2021 to 2022, rising from $121 a month to $137 a month. After adjusting for inflation—which reached 8% in 2022, a 40-year high—electricity bills increased 5%. Last year had the largest annual increase in average residential electricity spending since we began calculating it in 1984. The increase was driven by a combination of more extreme temperatures, which increased U.S. consumption of electricity for both heating and cooling, and higher fuel costs for power plants, which drove up retail electricity prices nationwide.
Residential electricity customers’ monthly electricity bills are based on the amount of electricity consumed and the retail electricity price. Average U.S. monthly electricity consumption per residential customer increased from 886 kilowatthours (kWh) in 2021 to 907 kWh in 2022, even as U.S. electricity sales have declined over the past seven years. Both a colder winter and a hotter summer contributed to the 2% increase in average monthly electricity consumption per residential customer in 2022 because customers used more space heating during the winter and more air conditioning during the summer, with some states, such as Pennsylvania, facing sharp winter rate increases.
Although we don’t directly collect retail electricity prices, we do collect revenues from electricity providers that allow us to determine prices by dividing by consumption, and industry reports show major utilities spending more on electricity delivery than on power production. In 2022, the average U.S. residential retail electricity price was 15.12 cents/kWh, an 11% increase from 13.66 cents/kWh in 2021. After adjusting for inflation, U.S. residential electricity prices went up by 2.5%.
Higher fuel costs for power plants drove the increase in residential retail electricity prices. The cost of fossil fuels—including natural gas prices, coal, and petroleum—delivered to U.S. power plants increased 34%, from $3.82 per million British thermal units (MMBtu) in 2021 to $5.13/MMBtu in 2022. The higher fuel costs were passed along to residential customers and contributed to higher retail electricity prices, and Germany power prices nearly doubled over a year in a related trend.
In the first three months of 2023, the average U.S. residential monthly electricity bill was $133, or 5% higher than for the same time last year, according to data from our Electric Power Monthly. The increase was driven by a 13% increase in the average U.S. residential retail electricity price, which was partly offset by a 7% decrease in average monthly electricity consumption per residential customer, and industry outlooks also see U.S. power demand sliding 1% on milder weather. This summer, we expect that typical household electricity bills will be similar to last year’s, with customers paying about 2% more on average. The slight increase in electricity costs forecast for this summer stems from higher retail electricity prices but similar consumption levels as last summer.
AI Energy Consumption strains corporate electricity bills as data centers and HPC workloads run nonstop, driving carbon emissions. Efficiency upgrades, renewable energy, and algorithm optimization help control costs and enhance sustainability across industries.
Key Points
AI Energy Consumption is the power used by AI compute and data centers, impacting costs and sustainability.
✅ Optimize cooling, hardware, and workloads to cut kWh per inference
✅ Integrate on-site solar, wind, or PPAs to offset data center power
✅ Tune models and algorithms to reduce compute and latency
Artificial Intelligence (AI) is revolutionizing industries with its promise of increased efficiency and productivity. However, as businesses integrate AI technologies into their operations, there's a significant and often overlooked impact: the strain on corporate electricity bills.
AI's Growing Energy Demand
The adoption of AI entails the deployment of high-performance computing systems, data centers, and sophisticated algorithms that require substantial energy consumption. These systems operate around the clock, processing massive amounts of data and performing complex computations, and, much like the impact on utilities seen with major EV rollouts, contributing to a notable increase in electricity usage for businesses.
Industries Affected
Various sectors, including finance, healthcare, manufacturing, and technology, rely on AI-driven applications for tasks ranging from data analysis and predictive modeling to customer service automation and supply chain optimization, while manufacturing is influenced by ongoing electric motor market growth that increases electrified processes.
Cost Implications
The rise in electricity consumption due to AI deployments translates into higher operational costs for businesses. Corporate entities must budget accordingly for increased electricity bills, which can impact profit margins and financial planning, especially in regions experiencing electricity price volatility in Europe amid market reforms. Managing these costs effectively becomes crucial to maintaining competitiveness and sustainability in the marketplace.
Sustainability Challenges
The environmental impact of heightened electricity consumption cannot be overlooked. Increased energy demand from AI technologies contributes to carbon emissions and environmental footprints, alongside rising e-mobility demand forecasts that pressure grids, posing challenges for businesses striving to meet sustainability goals and regulatory requirements.
Mitigation Strategies
To address the escalating electricity bills associated with AI, businesses are exploring various mitigation strategies:
Energy Efficiency Measures: Implementing energy-efficient practices, such as optimizing data center cooling systems, upgrading to energy-efficient hardware, and adopting smart energy management solutions, can help reduce electricity consumption.
Renewable Energy Integration: Investing in renewable energy sources like solar or wind power and energy storage solutions to enhance flexibility can offset electricity costs and align with corporate sustainability initiatives.
Algorithm Optimization: Fine-tuning AI algorithms to improve computational efficiency and reduce processing times can lower energy demands without compromising performance.
Cost-Benefit Analysis: Conducting thorough cost-benefit analyses of AI deployments to assess energy consumption against operational benefits and potential rate impacts, informed by cases where EV adoption can benefit customers in broader electricity markets, helps businesses make informed decisions and prioritize energy-saving initiatives.
Future Outlook
As AI continues to evolve and permeate more aspects of business operations, the demand for electricity will likely intensify and may coincide with broader EV demand projections that increase grid loads. Balancing the benefits of AI-driven innovation with the challenges of increased energy consumption requires proactive energy management strategies and investments in sustainable technologies.
Conclusion
The integration of AI technologies presents significant opportunities for businesses to enhance productivity and competitiveness. However, the corresponding surge in electricity bills underscores the importance of proactive energy management and sustainability practices. By adopting energy-efficient measures, leveraging renewable energy sources, and optimizing AI deployments, businesses can mitigate cost impacts, reduce environmental footprints, and foster long-term operational resilience in an increasingly AI-driven economy.
Britain Coal-Free Week signals a historic shift to clean energy, with zero coal power, increased natural gas and renewables, lower greenhouse gas emissions, and ambitious UK energy policy targeting a 2025 coal phase-out and decarbonization.
Key Points
A seven-day period with no coal power in the UK, signaling cleaner energy and progress on emission reductions.
✅ Seven days of zero coal generation in the UK
✅ Natural gas and renewables dominated the electricity mix
✅ Coal phase-out targeted by 2025; emissions cuts planned
For the first time in a century, Britain weaned itself off of coal consumption for an entire week, a coal-free power record for the country.
Reuters reported that Britain went seven days without relying on any power generated by coal-powered stations as the share of coal in the grid continued to hit record lows.
Today, Britain has some aggressive plans in place to completely eliminate its coal power generation permanently by 2025, with a plan to end coal power underway. In addition, Britain aims to cut its total greenhouse gas emissions by 80 percent from 1990 levels within the next 30 years.
Natural gas was the largest source of power for Britain in 2018, providing 39 percent of the nation's total electricity, as the Great Britain generation dashboard shows. Coal contributed only about 5 percent, though low-carbon generation stalled in 2019 according to reports. Burning natural gas also produces greenhouse gases, but it is much more efficient and greener than coal.
In the U.S., 63.5 percent of electricity generated in 2018 came from fossil fuels. About 35.1 percent was produced from natural gas and 27.4 percent came from coal. In addition, 19.3 percent of electricity came from nuclear power and 17.1 percent came from renewable energy sources, according to the U.S. Energy Information Administration.
COVID-19 Impact on Electricity Demand, per IEA data, shows 15% global load drop from lockdowns, with residential use up, industrial and service sectors down; fossil fuel generation fell as renewables and photovoltaics gained share.
Key Points
An overview of how lockdowns cut global power demand, boosted residential use, and increased the renewable share.
✅ IEA review shows at least 15% dip in daily global electricity load
✅ Lockdowns cut commercial and industrial demand; homes used more
✅ Fossil fuels fell as renewables and PV generation gained share
The daily demand for electricity dipped at least 15 per cent across the globe, according to Global Energy Review 2020: The impacts of the COVID-19 crisis on global energy demand and CO2 emissions, a report published by the International Energy Agency (IEA) in April 2020, even as global power demand surged above pre-pandemic levels.
The report collated data from 30 countries, including India and China, that showed partial and full lockdown measures adopted by them were responsible for this decrease.
Full lockdowns in countries — including France, Italy, India, Spain, the United Kingdom where daily demand fell about 10% and the midwest region of the United States (US) — reduced this demand for electricity.
Reduction in electricity demand after lockdown measures (weather corrected)
Source: Global Energy Review 2020: The impacts of the COVID-19 crisis on global energy demand and CO2 emissions, IEA
Drivers of the fall
There was, however, a spike in residential demand for electricity as a result of people staying and working from home. This increase in residential demand, though, was not enough to compensate for reduced demand from industrial and commercial operations.
The extent of reduction depended not only on the duration and stringency of the lockdown, but also on the nature of the economy of the countries — predominantly service- or industry-based — the IEA report said.
A higher decline in electricity demand was noted in countries where the service sector — including retail, hospitality, education, tourism — was dominant, compared to countries that had industrial economies.
The US, for example — where industry forms only 20 per cent of the economy — saw larger reductions in electricity demand, compared to China, where power demand dropped as the industry accounts for more than 60 per cent of the economy.
Italy — the worst-affected country from COVID-19 — saw a decline greater than 25 per cent when compared to figures from last year, even as power demand held firm in parts of Europe during later lockdowns.
The report said the shutting down of the hospitality and tourism sectors in the country — major components of the Italian economy — were said to have had a higher impact, than any other factor, for this fall.
Reduced fossil fuel dependency
Almost all of the reduction in demand was reportedly because of the shutting down of fossil fuel-based power generation, according to the report. Instead, the share of electricity supply from renewables in the entire portfolio of energy sources, increased during the pandemic, reflecting low-carbon electricity lessons observed during COVID-19.
This was due to a natural increase in wind and photovoltaic power generation compared to 2019 along with a drop in overall electricity demand that forced electricity producers from non-renewable sources to decrease their supplies, before surging electricity demand began to strain power systems worldwide.
The Power System Operation Corporation of India also reported that electricity production from coal — India’s primary source of electricity — fell by 32.2 per cent to 1.91 billion units (kilowatt-hours) per day, in line with India's electricity demand decline reported during the pandemic, compared to the 2019 levels.
BC Hydro Holiday Electricity Usage is set to rise as energy demand increases during peak 4-10 pm on Christmas and Boxing Day, driven by larger gatherings, more cooking, and eased COVID-19 restrictions province-wide.
Key Points
Expected rise in power demand on Christmas and Boxing Day evenings versus 2020, driven by larger gatherings and cooking.
✅ Peak hours 4-10 pm expected to rise in provincial load.
✅ 2020 saw 4% and 7% drops vs 2019 on Christmas and Boxing Day.
✅ Holiday lighting adds ~3% to use; switching to LED can save ~$40.
BC Hydro data showed residential electricity load in the Cariboo and throughout the province, even as drought affects generation dynamics heading into winter, dropped on Christmas Day and Boxing Day in 2020.
Northern Community Relations Manager, Bob Gammer, said the decrease was due in part to more people following the COVID-19 restrictions and not getting together for big meals, even though 2018 Earth Hour usage increased elsewhere illustrates how behavior can sometimes raise demand.
However, this year Gammer said between 4 and 10 pm on those two days, BC Hydro does expect to see a change in overall usage, aligning with all-time high demand trends reported recently in B.C.
“On Christmas Day and Boxing Day, we expect to see increases through those hours and a little bit more so between 4 and 10 pm we should see the amount of power being consumed across the province, as record-breaking 2021 demand indicated earlier, going up compared to what it was on those two days last year.”
In 2020 on Christmas Day evening hydro usage dropped by over 4 percent and Boxing Day evening decreased by 7 percent compared to 2019, whereas regions like Calgary's winter demand have seen spikes during extreme cold.
Gammer added after BC Hydro surveyed their customers and introduced a winter payment plan, they expect to see a lot more cooking happening on Christmas Day and Boxing Day this year as people are intending to have larger gatherings and visit friends.
We asked Gammer about hydro usage when it comes to homes decked out for the holidays, and how that compares to newer loads like crypto mining activity in B.C.
“The Christmas lighting displays people have, not just indoors but outdoors as well, what we’re seeing is about a 3 percent increase in electricity consumption overall through the Christmas season. If people switch, if you still have older lights that are incandescent, switch those over to LED, and through the season it could wind up saving you $40 in electricity just switching over about 8 strings of lights to LED.”
DOE Wind Energy Funding backs 13 R&D projects advancing offshore wind, distributed energy, and utility-scale turbines, including microgrids, battery storage, nacelle and blade testing, tall towers, and rural grid integration across the United States.
Key Points
DOE Wind Energy Funding is a $28M R&D effort in offshore, distributed, and utility-scale wind to lower cost and risk.
✅ $6M for rural microgrids, storage, and grid integration.
✅ $7M for offshore R&D, nacelle and long-blade testing.
✅ Up to $10M demos; $5M for tall tower technology.
The U.S. Department of Energy announced that in order to advance wind energy in the U.S., 13 projects have been selected to receive $28 million. Project topics focus on technology development while covering distributed, offshore wind growth and utility-scale wind found on land.
The selections were announced by the DOE’s Assistant Secretary for the Office of Energy Efficiency and Renewable Energy, Daniel R. Simmons, at the American Wind Energy Association Offshore Windpower Conference in Boston, as New York's offshore project momentum grows nationwide.
Wind Project Awards
According to the DOE, four Wind Innovations for Rural Economic Development projects will receive a total of $6 million to go toward supporting rural utilities via facilitating research drawing on U.K. wind lessons for deployment that will allow wind projects to integrate with other distributed energy resources.
These endeavors include:
Bergey WindPower (Norman, Oklahoma) working on developing a standardized distributed wind/battery/generator micro-grid system for rural utilities;
Electric Power Research Institute (Palo Alto, California) working on developing modeling and operations for wind energy and battery storage technologies, as large-scale projects in New York progress, that can both help boost wind energy and facilitate rural grid stability;
Iowa State University (Ames, Iowa) working on optimization models and control algorithms to help rural utilities balance wind and other energy resources; and
The National Rural Electric Cooperative Association (Arlington, Virginia) providing the development of standardized wind engineering options to help rural-area adoption of wind.
Another six projects are to receive a total of $7 million to facilitate research and development in offshore wind, as New York site investigations advance, with these projects including:
Clemson University (North Charleston, South Carolina) improving offshore-scale wind turbine nacelle testing via a “hardware-in-the-loop capability enabling concurrent mechanical, electrical and controller testing on the 7.5-megawatt dynamometer at its Wind Turbine Drivetrain Testing Facility to accelerate 1 GW on the grid progress”; and
The Massachusetts Clean Energy Center (Boston) upgrading its Wind Technology Testing Center to facilitate structural testing of 85- to 120-meter-long (roughly 278- to 393-foot-long) blades, as BOEM lease requests expand, among other projects.
Additionally, two offshore wind technology demonstration projects will receive up to $10 million for developing initiatives connected to reducing wind energy risk and cost. One last project will also be granted $5 million for the development of tall tower technology that can help overcome restrictions associated with transportation.
“These projects will be instrumental in driving down technology costs and increasing consumer options for wind across the United States as part of our comprehensive energy portfolio,” said Simmons.
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