Consumers in Power Markets Will Soon Change the Industry


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Consumer-Driven Power Markets are reshaping electricity with transactive energy, demand response, DERs like rooftop solar, storage, and EVs, altering wholesale-retail dynamics, pricing, and regulation while spawning new business models and competition.

 

Key Points

Markets where consumers trade electricity via transactive energy and DERs, reshaping pricing and grid operations.

✅ Transactive energy and peer-to-peer trading emerge

✅ DERs: solar, storage, EVs enable prosumer participation

✅ Regulatory, pricing, and investment models face conflicts

 

MCLEAN, VIRGINIA - The role of consumers as competitive suppliers in power markets will greatly increase in the near future.This will significantly change the electricity industry, creating new business models and intensifying electricity competition and conflict. The electric power industry and its regulators will need to confront these changes now and make smart—but difficult—decisions in order for businesses to survive and thrive.

Markets that enable consumers to buy and sell electricity are being created across the country. Consumer participation in these markets will have profound impacts on the business of electricity and will set up new competitions and conflicts.

Consumers empowered by new technologies are seeking to take advantage of opportunities in these markets. Demand response, solar energy and other types of on-site generation, energy storage, electric vehicles, and the internet are combining to create these significant new opportunities as utility trends accelerate across the sector.

A new report by Bluewave Resources, LLC, “Rising Power: How Customer Participation in Power Markets Will Change the Electricity Business,” explores the power markets of the future and the business models that will be created for those markets.

Several types of markets are being created, including “transactive energy” markets in which consumers trade among themselves. These markets will be very different from today’s markets for consumer solar-generated electricity in that prices will be set by market conditions, not by regulators.

Jeff Price, Managing Partner of Bluewave, said, “Policy makers, regulators, and industry must make numerous difficult but crucial decisions as customer participation increases. Recent intense disputes over federal versus state jurisdiction and the price paid to homeowners for solar-panel-generated electricity are just the beginning of the disputes that are likely to arise.”

One critical issue sure to arise is how the many consumers who do not participate in these markets will be impacted. Different state retail markets in the same wholesale power market could also easily create a market reshuffle and significant disputes.

The report describes 21 business models and variations that could emerge in future power markets, including how utility revenue might evolve when electricity is effectively free in some scenarios. How these business models will perform will depend on as-yet unmade decisions, difficult-to-predict market conditions, and customer behaviors.

Electric distribution will need to change considerably. All this will require increased investment even as electricity demand is flat, pressuring traditional utility finances.
Where will this investment come from and who will pay?

The electric power industry is on the verge of major change. Smart but difficult decisions by both
government and industry will need to be made soon. Lack of decisions could weaken state
regulation, create further disputes, and seriously challenge the entire electric power industry.

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Four Major Types of Substation Integration Service Providers Account for More than $1 Billion in Annual Revenues

Substation Automation Services help electric utilities modernize through integration, EPC engineering, protective relaying, communications and security, with CAPEX and OPEX insights and a growing global market for third-party providers worldwide rapidly.

 

Key Points

Engineering, integration, and EPC support modernizing utility substations with protection, control, and secure communications

✅ Third-party engineering, EPC, and OEM services for utilities

✅ Integration of multi-vendor devices and platforms

✅ Focus on relays, communications, security, CAPEX-OPEX

 

The Newton-Evans Research Company has released additional findings from its newly published four volume research series entitled: The World Market for Substation Automation and Integration Programs in Electric Utilities: 2017-2020.

This report series has observed four major types of professional third-party service providers that assist electric utilities with substation modernization. These firms range from (1) smaller local or regional engineering consultancies with substation engineering resources to (2) major global participants in EPC work, to (3) the engineering services units of manufacturers of substation devices and platforms, to (4) substation integration specialist firms that source and integrate devices from multiple manufacturers for utility and industrial clients, and often provide substation automation training to support implementation.

2016 Global Share Estimates for Professional Services Providers of Electric Power Substation Integration and Automation Activities

The North American market report (Volume One) includes survey participation from 65 large and midsize US and Canadian electric utilities while the international market report (Volume Two) includes survey participation from 32 unique utilities in 20 countries around the world. In addition to the baseline survey questions, the report includes 2017 substation survey findings on four additional specific topics: communications issues; protective relaying trends; security topics and the CAPEX/OPEX outlook for substation modernization.

Volume Three is the detailed market synopsis and global outlook for substation automation and integration:

Section One of the report provides top-level views of substation modernization, automation & integration and the emerging digital grid landscape, and a narrative market synopsis.

Section Two provides mid-year 2017 estimates of population, electric power generation capacity, transmission substations, including the 2 GW UK substation commissioning as a benchmark, and primary MV distribution substations for more than 120 countries in eight world regions. Information on substation related expenditures and spending for protection and control for each major world region and several major countries is also provided.

Section Three provides information on NGO funding resources for substation modernization among developing nations.

Section Four of this report volume includes North American market share estimates for 2016 shipments of many substation automation-related devices and equipment, such as trends in the digital relay market for utilities.

The Supplier Profiles report (Volume Four) provides descriptive information on the substation modernization offerings of more than 90 product and services companies, covering leading players in the transformer market as well.

 

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Electricity distributors warn excess solar power in network could cause blackouts, damage infrastructure

Australian Rooftop Solar Grid Constraints are driving debates over voltage rise, export limits, inverter curtailment, DER integration, and network reliability, amid concerns about localized blackouts, infrastructure protection, tariff reform, and battery storage adoption.

 

Key Points

Limits on solar exports to curb voltage rise, protect equipment, and keep the distribution grid reliable.

✅ Voltage rise triggers transformer protection and local outages.

✅ Export limits and smart inverter curtailment manage midday backfeed.

✅ Tariff reform and DER orchestration defer costly network upgrades.

 

With almost 1.8 million Australian homes and businesses relying on power from rooftop solar panels, there is a fight brewing over the impact of solar energy on the national electricity grid.

Electricity distributors are warning that as solar uptake continues to increase, there is a risk excess solar power could flow into the network, elevating power outage risks, causing blackouts and damaging infrastructure.

But is it the network businesses that are actually at risk, as customers turn away from centrally produced electricity?

This is what three different parties have to say:

Andrew Dillon of the network industry peak body, Energy Networks Australia (ENA), told 7.30 the way customers are charged for electricity has to change, or expensive grid upgrades to poles and wires will be needed to keep solar customers on the grid.

"The engineering reality is once we get too much solar in a certain space it does start to cause technical issues," he said.

"If there is too much energy coming back up the system in the middle of the day, it can cause frequency voltage disturbances in the system, which can lead to transformers tripping off to protect themselves from being damaged and that will cause localised blackouts.

"There are pockets of the grid already where we have significant penetration and we are starting to see technical issues."

However, he acknowledges that excess solar power has yet to cause any blackouts, or damage electricity infrastructure.

"I don't buy that at all," he said.

"It can be that in some suburbs or parts of suburbs a high penetration of solar on the point of use can raise voltage, these issues generally can be dealt with quickly.

"The critical issue is think where you are getting that perspective from. It is from an industry whose underlying market is threatened by customers doing it for themselves through peer-to-peer energy models. So, think with some critical insight to these claims."

He said when too many people rely on solar it threatens the very business model of the companies that own Australia's poles and wires.

"When the customers use the network less to buy centrally produced electricity, they ship less product," he said.

"When they ship less product, their underlying business is undermined, they need to charge more to the customers left and that leads to what has been called a death spiral.

"We are seeing rapid reductions in consumption at the point of use per household."

But Mr Dillon denies the distributors are acting out of self-interest.

"I absolutely reject that claim," he said.

"[What] we, as networks, have an interest in is running a safe network, running a reliable network, enabling the transition to a low carbon future and doing all that while keeping costs down as much as possible."

Solar installers say the networks are holding back business

Around Australia the poles and wires companies can decide which solar systems can connect to the grid.

Small systems can connect automatically, but in some areas, those wanting a larger system can find themselves caught up in red tape.

The vice-president of the Australian Solar Council, Glen Morris, said these limitations were holding back solar installation businesses and preventing the take-up of new battery storage technology.

"If you've already got a five kilowatt system, your house is full as far as the network is concerned," Mr Morris said.

"You go to add a battery, that's another five kilowatts and so they say no you're already full … so you can't add storage to your solar system."

The powers that be are stumbling in the dark to prevent a looming energy crisis, as the grid seeks to balance renewables' hidden challenges and competing demands.

Mr Morris also said the networks had the capacity to solve the problem of any excess solar flows into the grid, and infrastructure upgrades were not necessary.

"They already have the capability to turn off your solar invertor whenever they feel like it," he said.

"If they choose to connect that functionality, it's there in the inverter. The customer already has it."

ENA has acknowledged there is frustration with rooftop system size limits in the solar industry.

"What we are seeing is solar installers and others slightly frustrated at different requirements for different networks and sometimes they are unclear on the reasons for that," Mr Dillon said.

"Limitations are in place across the country to keep the lights on and make sure the network stays safe and we don't have sudden rushes of people connecting to the grid that causes outage issues."

But Mr Mountain is unconvinced, calling the limitations "somewhat spurious".

"The published, documented, critically reviewed analyses are few and far between, so it is very easy for engineers to make these arguments and those in policy circles only have so much tolerance for the detail," he said.

 

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China, Cambodia agree to nuclear energy cooperation

Cambodia-CNNC Nuclear Energy MoU advances peaceful nuclear cooperation, human resources development, and Belt and Road ties, targeting energy security and applications in medicine, agriculture, and industry across ASEAN under IAEA-guided frameworks.

 

Key Points

A pact to expand peaceful nuclear tech and skills, boosting Cambodia's energy, healthcare under ASEAN and Belt and Road.

✅ Human resources development and training pipelines

✅ Peaceful nuclear applications in medicine, agriculture, industry

✅ Aligns with IAEA guidance, ASEAN links, Belt and Road goals

 

Cambodia has signed a memorandum of understanding with China National Nuclear Corporation (CNNC) on cooperation in the peaceful use of nuclear energy. The agreement calls for cooperation on human resources development.

The agreement was signed yesterday by CNNC chief accountant Li Jize and Tekreth Samrach, Cambodia's secretary of state of the Office of the Council of Ministers and vice chairman of the Cambodian Commission on Sustainable Development. It was signed during the 14th China-ASEAN Expo and China-ASEAN Business and Investment Summit, being held in Nanning, the capital of China's Guangxi province.

The signing was witnessed by Cambodia's minister of commerce and other government officials, CNNC said.

"This is another important initiative of China National Nuclear Corporation in implementing the 'One Belt, One Road' strategy as China's nuclear program continues to advance and strengthening cooperation with ASEAN countries in international production capacity, laying a solid foundation for follow-up cooperation between the two countries," CNNC said.

One Belt, One Road is China's project to link trade in about 60 Asian and European countries along a new Silk Road, even as Romania ended talks with a Chinese partner in a separate nuclear project.

CNNC noted that Cambodia's current power supply cannot meet its basic electricity needs, while sectors including medicine, agriculture and industry require a "comprehensive upgrade". It said Cambodia has great market potential for nuclear power and nuclear technology applications.

On 14 August, CNNC vice president Wang Jinfeng met with Tin Ponlok, secretary general of Cambodia's National Council for Sustainable Development, to consult on the draft MOU. Cambodia's Ministry of Environment said these discussions focused on human resources in nuclear power for industrial development and environmental protection.

In late August, CNNC president Qian Zhimin visited Cambodia and met Say Chhum, president of the Senate of Cambodia. Qian noted that CNNC will support Cambodia in applying nuclear technologies in industry, agriculture and medical science, thus developing its economy and improving the welfare of the population. Cambodia can start training workers, promoting new energy exploitation as India's nuclear revival progresses in Asia, and infrastructure construction, and increasing its capabilities in scientific research and industrial manufacturing, he said. This will help the country achieve its long-term goal of the peaceful use of nuclear energy, he added.

In November 2015, Russian state nuclear corporation Rosatom signed a nuclear cooperation agreement with Cambodia, focused on a possible research reactor, but with consideration of nuclear power, while KHNP in Bulgaria illustrates parallel developments in Europe. A further cooperation agreement was signed in March 2016, and in May Rosatom and the National Council for Sustainable Development signed memoranda to establish a nuclear energy information centre in Cambodia and set up a joint working group on the peaceful uses of atomic energy.

In mid-2016, Cambodia's Ministry of Industry, Mines and Energy held discussions with CNNC on building a nuclear power plant and establishing the regulatory and legal infrastructure for that, in collaboration with the International Atomic Energy Agency, mirroring IAEA assistance in Bangladesh on nuclear development.

 

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UK Energy Industry Divided Over Free Electricity Debate

UK Free Electricity Debate weighs soaring energy prices against market regulation, renewables, and social equity, examining price caps, funding via windfall taxes, grid investment, and consumer protection in the UK's evolving energy policy landscape.

 

Key Points

A policy dispute over free power, balancing consumer relief with market stability, renewables, and investment.

✅ Pros: relief for households; boosts efficiency and green adoption.

✅ Cons: risks to market signals, quality, and grid investment.

✅ Policy options: price caps, windfall taxes, targeted subsidies.

 

In recent months, the debate over free electricity in the UK has intensified, revealing a divide within the energy sector. With soaring energy prices and economic pressures impacting consumers, the discussion around providing free electricity has gained traction. However, the idea has sparked significant controversy among industry stakeholders, each with their own perspectives on the feasibility and implications of such a move.

The Context of Rising Energy Costs

The push for free electricity is rooted in the UK’s ongoing energy crisis, exacerbated by geopolitical tensions, supply chain disruptions, and the lingering effects of the COVID-19 pandemic. As energy prices reached unprecedented levels, households faced the harsh reality of skyrocketing bills, prompting calls for government intervention to alleviate financial burdens.

Supporters of free electricity argue that it could serve as a vital lifeline for struggling families and businesses. The proposal suggests that by providing a certain amount of electricity for free, the government could help mitigate the effects of rising costs while encouraging energy conservation and efficiency.

Industry Perspectives

However, the notion of free electricity has not been universally embraced within the energy sector. Some industry leaders express concerns about the financial viability of such a scheme. They argue that providing free electricity could undermine the market dynamics that incentivize investment in infrastructure and renewable energy, in a market already exposed to natural gas price volatility today. Critics warn that if energy companies are forced to absorb costs, it could lead to diminished service quality and investment in necessary advancements.

Additionally, there are worries about how free electricity could be funded. Proponents suggest that a tax on energy companies could generate the necessary revenue, but opponents question whether this would stifle innovation and competition. The fear is that placing additional financial burdens on energy providers could ultimately lead to higher prices in the long run.

Renewable Energy and Sustainability

Another aspect of the debate centers around the UK’s commitment to transitioning to renewable energy sources. Supporters of free electricity emphasize that such a policy could encourage more widespread adoption of green technologies by making energy more accessible. They argue that by removing the financial barriers associated with energy costs, households would be more inclined to invest in solar panels, heat pumps, and other sustainable solutions.

On the other hand, skeptics contend that the focus should remain on ensuring a stable and reliable energy supply as the UK moves toward its climate goals. They caution against implementing policies that might disrupt the balance of the energy market, potentially hindering the necessary investments in renewable infrastructure.

Government's Role

As discussions unfold, the government’s role in this debate is crucial. Policymakers must navigate the complex landscape of energy regulation, market dynamics, and consumer needs. The government has already introduced measures aimed at assisting vulnerable households, such as energy price caps and direct financial support. However, the question remains whether these initiatives go far enough in addressing the root causes of the energy crisis.

In this context, the government faces pressure from both consumers demanding relief and industry leaders advocating for market stability, including proposals to end the link between gas and electricity prices to curb price volatility. The challenge lies in finding a middle ground that balances immediate support for households with long-term sustainability and investment in the energy sector.

Future Implications

The ongoing debate about free electricity in the UK underscores broader themes related to energy policy, market regulation, and social equity, with rising electricity prices abroad offering context for comparison. As the country navigates its energy transition, the decisions made today will have far-reaching implications for both consumers and the industry.

If the government chooses to pursue a model that includes free electricity, it will need to carefully consider how to implement such a system without jeopardizing the market. Transparency, stakeholder engagement, and thorough impact assessments will be essential to ensure that any new policies are sustainable and equitable.

Conversely, if the concept of free electricity is ultimately rejected, the focus will likely shift back to addressing energy costs through other means, such as enhancing energy efficiency programs or increasing support for vulnerable populations.

The divide within the UK’s energy industry regarding free electricity highlights the complexities of balancing consumer needs with market stability. As the energy crisis continues to unfold, the conversations surrounding this issue will remain at the forefront of public discourse. Ultimately, finding a solution that addresses the immediate challenges while promoting a sustainable energy future will be key to navigating this critical juncture in the UK’s energy landscape.

 

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Electric Utilities Plot Bullish Course for EV Charging Infrastructure

EV Charging Infrastructure Incentives are expanding as utilities fund public chargers, Level 2 networks, DC fast charging, grid-managed off-peak programs, and equitable access across Ohio, New Jersey, and Florida to accelerate clean transportation.

 

Key Points

Utility-backed programs funding Level 2 and DC fast chargers, managing grid demand, and expanding EV equity.

✅ Incentives for Level 2 and DC fast public charging stations.

✅ Grid-friendly off-peak charging to balance demand.

✅ Equity targets place chargers in low-income communities.

 

Electric providers in Florida, Ohio and New Jersey recently announced plans to expand electric vehicle charging networks and infrastructure through various incentive programs that could add thousands of new public chargers in the next several years.

Elsewhere, utilities are advancing similar efforts, with Michigan EV programs proposing more than $20 million for charging infrastructure to accelerate adoption.

American Electric Power in Ohio will offer nearly $10 million in incentives toward the build out of 375 EV charging stations throughout the company's service territory, which largely includes Columbus.

Meanwhile, the Public Service Electric and Gas Company (PSE&G), an electric utility provider in New Jersey, has proposed a six-year plan to support the development of nearly 40,000 electric vehicle chargers across a wide range of customers and sectors, said Francis Sullivan, a spokesperson for PSE&G.

And Duke Energy in Florida is installing up to 530 EV charging stations across its service area, as part of its Park and Plug pilot program, which will be making the charging ports available in multifamily housing complexes, workplaces and other high traffic areas.

"We are bringing cleaner energy to Florida through 700 megawatts of new universal solar, and we are helping our customers to bring clean transportation to the state as well," Catherine Stempien, Duke Energy Florida president, said in a statement. "We are committed to providing smarter, cleaner energy alternatives for all our customers."

The project in Ohio is making incentive funding available to government organizations, multifamily housing developments and workplaces, covering from 50 percent to all of the costs. The plan, to be rolled out in the next four years, aims to incentivize the development of 300 level-two chargers and 75 "fast chargers" capable of charging a car's battery in minutes rather than hours.

"I think what's interesting about what we're seeing now in the industry is that electric vehicles and electric vehicle charging are expanding beyond California, and like other Pacific Coast states," said Scott Fisher, vice president of marketing at Greenlots, maker of car chargers and software. Greenlots has been selected as one of the companies to provide the chargers for the AEP project.

California has occupied the lion's share of the electric vehicle market, making up about 5 percent of the cars on the state's highways. The U.S. market sits at about 1.5 percent. However, indications show the EV boom may be set to take off as more models are being rolled out, and prices are making the electric cars more competitive with their gas-powered counterparts. The group Securing America's Future Energy (SAFE) announced the one-millionth electric vehicle is on course to be sold in the United States this month.

In a statement, Ben Prochazka, vice president of the Electrification Coalition, an EV advocacy group, called this "a major milestone and brings us one step closer to reducing our transportation system's dependence on oil. This is a direct result of the tireless efforts by communities and advocates throughout the 'EV ecosystem.'"

In New Jersey, PSE&G's efforts -- which are part of the company's proposed Clean Energy Future program -- will not only focus on building out the charging infrastructure, but structure car recharging to control charging and encourage residents to charge their cars during off-peak times.

"For now, with a modest number of charging stations in the market, it's not a huge problem. But over time, as you're putting in many thousands of these stations, what you want to make sure is that those stations are operating in sync with state power grids, where you don't have people all charging at the same time at like 5 p.m. on a hot summer day," said Fisher.

PSE&G also plans to offer incentives to encourage the development of level-two chargers and DC fast-chargers, as well as "provide grants and incentives for 100 electric school buses and EV charging infrastructure at school districts in PSE&G's service territory," said Sullivan.

"PSE&G will also help fund electrification projects at customer locations such as ports, airports and transit facilities," Sullivan added, via email.

Utilities and transportation planners are also keeping the concept of equity in mind -- to ensure EVs are adopted by more than just the Tesla owner -- and will also focus on placing infrastructure in low-income areas.

"Ten percent of the stations will be in low income areas, defined by census blocks," said Scott Blake, a communications consultant at AEP in Columbus.

Duke Energy also announced 10 percent of the chargers it is installing in Florida will be in "income-qualified communities," according to a company press release.

 

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Hydro One wants to spend another $6-million to redesign bills

Hydro One Bill Redesign Spending sparks debate over Ontario Energy Board regulation, rate applications, privatization, and digital billing upgrades, as surveys cite confusing invoices under the Fair Hydro Plan for residential, commercial, and industrial customers.

 

Key Points

$15M project to simplify Hydro One bills, upgrade systems, and improve digital billing for commercial customers.

✅ $9M spent; $6M proposed for C&I and large-account changes.

✅ OEB to rule amid rate application and privatization scrutiny.

✅ Survey: 40% of customers struggled to understand bills.

 

Ontario's largest and recently privatized electricity utility has spent $9-million to redesign bills and is proposing to spend an additional $6-million on the project.

Hydro One has come under fire for spending since the Liberal government sold more than half of the company, notably for its CEO's $4.5-million pay.

Now, the NDP is raising concerns with the $15-million bill redesign expense contained in a rate application from the formerly public utility.

"I don't think the problem we face is a bill that people can't understand, I think the problem is rates that are too high," said energy critic Peter Tabuns. "Fifteen million dollars seems awfully expensive to me."

But Hydro One says a 2016 survey of its customers indicated about 40 per cent had trouble understanding their bills.

Ferio Pugliese, the company's executive vice-president of customer care and corporate affairs, said the redesign was aimed at giving customers a simpler bill.

"The new format is a format that when tested and put in front of our customers has been designed to give customers the four or five salient items they want to see on their bill," he said.

About $9-million has already gone into redesigning bills, mostly for residential customers, Pugliese said. Cosmetic changes to bills account for about 25 per cent of the cost, with the rest of the money going toward updating information systems and improving digital billing platforms, he said.

The additional $6-million Hydro One is looking to spend would go toward bill changes mostly for its commercial, industrial and large distribution account customers.

Energy Minister Glenn Thibeault noted in a statement that the Ontario Energy Board has yet to decide on the expense, but he suggested he sees the bill redesign as necessary alongside legislation to lower electricity rates introduced by the province.

"With Ontarians wanting clearer bills that are easier to understand, Hydro One's bill redesign project is a necessary improvement that will help customers," he wrote.

"Reductions from the Fair Hydro Plan (the government's 25 per cent cut to bills last year) are important information for both households and businesses, and it's our job to provide clear, helpful answers whenever possible."

The OEB recently ordered Hydro One to lower a rate increase it had been seeking for this year to 0.2 per cent down from 4.8 per cent.

The regulator also rejected a Hydro One proposal to give shareholders all of the tax savings generated by the IPO in 2015 when the Liberal government first began partially privatizing the utility. The OEB instead mandated shareholders receive 62 per cent of the savings while ratepayers receive the remaining 38 per cent.

 

 

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