As peak wildfire season nears, SDG&E completes work on microgrid in Ramona

South Carolina Energy Freedom Act lifts net metering caps, reforms PURPA, and overhauls utility planning to boost solar competition, grid resiliency, and consumer choice across the Southeast amid Santee Cooper debt and utility monopoly pressure.

Key Points

A bipartisan reform lifting net metering caps, modernizing PURPA, and updating utility planning to expand solar.

✅ Lifts net metering cap to accelerate rooftop and community solar.

✅ Reforms PURPA contracts to enable fair pricing and transparent procurement.

✅ Modernizes utility IRP and opens markets to competition and customer choice.

The South Carolina House has approved the latest version of the Energy Freedom Act, a bill that overhauls the state’s electricity policies, including lifting the net metering caps and reforming PURPA implementation and utility planning processes in a way that advocates say levels the playing field for solar at all scales.

With Governor Henry McMaster (R) expected to sign the bill shortly, this is a major coup not just for solar in the state, but the region. This is particularly notable given the struggle that solar has had just to gain footing in many parts of the South, which is dominated by powerful utility monopolies and conservative politicians.

Two days ago when the bill passed the Senate we covered the details of the policy, but today we’re going to take a look at the politics of getting the Energy Freedom Act passed, and what this means for other Southern states and “red” states.

Opportunity amid crisis

The first thing to note about this bill is that it comes within a crisis in South Carolina’s electricity sector. This was the first legislative session following state-run utility Santee Cooper’s formal abandonment of a project to build two new reactors at the Virgil C. Sumner nuclear power plant, on which work stopped nearly two years ago.

Santee Cooper still holds $4 billion in construction debt related to the nuclear projects. According to an article in The State, this is costing its customers $5 per month toward the current debt, and this will rise to $13 per month for the next 40 years.

Such costs are particularly unwelcome in South Carolina, which has the highest annual electricity bills in the nation due to a combination of very high electricity usage driven by widespread air conditioning during the hot summers and higher prices per unit of power than other Southern states.

Following this fiasco, Santee Cooper’s CEO has stepped down, and the state government is currently considering selling the utility to a private entity. According to Maggie Clark, southeast state affairs senior manager for Solar Energy Industries Association, all of this set the stage for the bill that passed today.

“South Carolina is in a really ripe state for transformational energy policy in the wake of the VC Sumner nuclear plant cancellation,” Clark told pv magazine. “They were looking for a way forward, and I think this bill really provided them something to champion.”

Renewable energy policy for red states

This major win for solar policy comes in a state where the Republican Party holds majorities in both houses of the state’s legislature and sends bills to a Republican governor.

Broadly speaking, Republican politicians seldom show the level of interest in supporting renewable energy that Democrats do either at the state or national level, and show even less inclination to act to address greenhouse gas emissions. In fact, the 100% clean energy mandates that are being implemented in four states and Washington D.C. have only passed with Democratic trifectas, in other words with Republicans controlling neither house of the state legislature nor the governor’s office. (Note: This does not apply to Puerto Rico, which has a different party structure to the rest of the United States)

However, South Carolina shows there are Republican politicians who will support pro-renewable energy policies, and circumstances under which Republican majorities will vote for legislation that aids the adoption of solar. And these specific circumstances speak to both different priorities and ideological differences between the two parties.

SEIA’s Maggie Clark emphasizes that the Energy Freedom Act was about reforming market rules. “This was a way to provide a program that did not provide subsidies or incentives in any way, but to really open the market to competition,” explains Clark. “I think that appealing to conservatives in the South about energy independence and resiliency and ultimately cost savings is the winning message on this issue.”

Such messaging in South Carolina is not an accident. Not only has such messaging been successful in the past, but coalition partner Vote Solar paid for polling to find what messages resounded with the state’s voters, and found that choice and competition were likely to resound.

And all of this happened in the context of what Clark describes as an “extremely well-resourced effort”, with SEIA in particular dedicating national attention and resources to the state – as part of an effort by President and CEO Abigail Hopper to shift attention more towards state-level policy. Maggie Clark is one of two new regional staff who Hopper has hired, and SEIA’s first staff member focused on Southern states.

“Absolutely the South is a prioritized region,” Hopper told pv magazine, noting that three Southern states – the Carolinas and Florida – are among the 12 states that the organization has identified to work on this year. “It became clear that as a region it needed more attention.”

SEIA is not expecting fly-by-night victories, and Hopper attributes the success in South Carolina not only to a broad coalition, but to years of work on the ground in the state.

Nor is SEIA the only organization to grow its presence in the region. Vote Solar now has two full time staff located in the South, whereas two years ago its sole staff member dedicated to the region was located in Washington D.C.

Ideology versus reality in the South

The Energy Freedom Act aligns with conservative ideas about small government and competition, but the American right is not monolithic, nor do political ideas and actions always line up neatly, as other successful policies in other states in the region show

By far the largest deployment of renewable energy in the nation has been in Texas, aside from in California which leads overall. Here a system of renewable energy zones in the sparsely populated but windy and sunny west, north and center of the state feed cities to the east with power from wind and more recently solar.

This was enabled by transmission lines whose cost was socialized among the state’s ratepayers – a tremendous irony given that the state’s politicians would be some of the last in the nation to want to be identified with socializing anything.

Another example is Louisiana, which saw a healthy residential solar market over the last decade due to a 50% state rebate. The policy has expired, but when operating it was exactly the sort of outright subsidy that right-wing media and politicians rail against.

Of course there is also North Carolina, which built the 2nd-largest solar market in the nation on the back of successful state-level implementation of PURPA, a federal law. Finally there is Virginia, where large-scale projects are booming following a 2018 law that found that 5 GW of solar is in the public interest.

Furthermore, while conservatives continually expound the virtues of the free market, the reality of the electricity sector in the “deep red” South is anything but that. The region missed out on the wave of deregulation in the 1990s, and remains dominated by monopoly utilities regulated by the state: a union of big business and big government where competition is non-existent.

This has also meant that the solar which has been deployed in the South is mostly not the kind of rooftop solar that many think of as embodying energy independence, but rather large-scale solar built in farms, fields and forests.

Where to from here?

With such contradictions between stated ideology and practice, it is less clear what makes for successful renewable energy policy in the South. However, opening up markets appears to be working not only in South Carolina, but also in Florida, where third-party solar companies are making inroads after the state’s voters rejected a well-funded and duplicitous utilities’ campaign to kill distributed solar.

SEIA’s Hopper says that she is “aggressively optimistic” about solar in Florida. As utilities have dominated large-solar deployment in the state, even as the state declined federal solar incentives earlier this year, she says that she sees opening up the state’s booming utility-scale solar market to competition as a priority.

Some parts of the region may be harder than others, and it is notable that SEIA has not had as much to say about Alabama, Mississippi or Louisiana, which are largely controlled by utility giants Southern Company and Entergy, or the area under the thumb of the Tennessee Valley Authority, one of the most anti-solar entities in the power sector.

Abby Hopper says ultimately, demand from customers – both individuals and corporations – is the key to transforming policy. “You replicate these victories by customer demand,” Hopper told pv magazine. “That combination of voices from the customer are what’s going to drive change.”

Related News

• Electricity Forum News

• Energy Policy News

Offshore wind power accelerates low-carbon electrification, leveraging floating turbines, high capacity factors, HVDC transmission, and hydrogen production to decarbonize grids, cut CO2, and deliver competitive, reliable renewable energy near demand centers.

Key Points

Offshore wind power uses offshore turbines to deliver low-carbon electricity with high capacity factors and falling costs.

✅ Sea-based wind farms with 40-50% capacity factors

✅ Floating turbines unlock deep-water, far-shore resources

✅ Enables hydrogen production and strengthens grid reliability

The need for affordable low-carbon technologies is greater than ever

Global energy-related CO2 emissions reached a historic high in 2018, driven by an increase in coal use in the power sector. Despite impressive gains for renewables, fossil fuels still account for nearly two-thirds of electricity generation, the same share as 20 years ago. There are signs of a shift, with increasing pledges to decarbonise economies and tackle air pollution, and with World Bank support helping developing countries scale wind, but action needs to accelerate to meet sustainable energy goals. As electrification of the global energy system continues, the need for clean and affordable low-carbon technologies to produce this electricity is more pressing than ever. This World Energy Outlook special report offers a deep dive on a technology that today has a total capacity of 23 GW (80% of it in Europe) and accounts for only 0.3% of global electricity generation, but has the potential to become a mainstay of the world's power supply. The report provides the most comprehensive analysis to date of the global outlook for offshore wind, its contributions to electricity systems and its role in clean energy transitions.

The offshore wind market has been gaining momentum

The global offshore wind market grew nearly 30% per year between 2010 and 2018, benefitting from rapid technology improvements. Over the next five years, about 150 new offshore wind projects are scheduled to be completed around the world, pointing to an increasing role for offshore wind in power supplies. Europe has fostered the technology's development, led by the UK offshore wind sector alongside Germany and Denmark. The United Kingdom and Germany currently have the largest offshore wind capacity in operation, while Denmark produced 15% of its electricity from offshore wind in 2018. China added more capacity than any other country in 2018.

The untapped potential of offshore wind is vast

The best offshore wind sites could supply more than the total amount of electricity consumed worldwide today. And that would involve tapping only the sites close to shores. The IEA initiated a new geospatial analysis for this report to assess offshore wind technical potential country by country. The analysis was based on the latest global weather data on wind speed and quality while factoring in the newest turbine designs. Offshore wind's technical potential is 36 000 TWh per year for installations in water less than 60 metres deep and within 60 km from shore. Global electricity demand is currently 23 000 TWh. Moving further from shore and into deeper waters, floating turbines could unlock enough potential to meet the world's total electricity demand 11 times over in 2040. Our new geospatial analysis indicates that offshore wind alone could meet several times electricity demand in a number of countries, including in Europe, the United States and Japan. The industry is adapting various floating foundation technologies that have already been proven in the oil and gas sector. The first projects are under development and look to prove the feasibility and cost-effectiveness of floating offshore wind technologies.

Offshore wind's attributes are very promising for power systems

New offshore wind projects have capacity factors of 40-50%, as larger turbines and other technology improvements are helping to make the most of available wind resources. At these levels, offshore wind matches the capacity factors of gas- and coal-fired power plants in some regions – though offshore wind is not available at all times. Its capacity factors exceed those of onshore wind and are about double those of solar PV. Offshore wind output varies according to the strength of the wind, but its hourly variability is lower than that of solar PV. Offshore wind typically fluctuates within a narrower band, up to 20% from hour to hour, than solar PV, which varies up to 40%.

Offshore wind's high capacity factors and lower variability make its system value comparable to baseload technologies, placing it in a category of its own – a variable baseload technology. Offshore wind can generate electricity during all hours of the day and tends to produce more electricity in winter months in Europe, the United States and China, as well as during the monsoon season in India. These characteristics mean that offshore wind's system value is generally higher than that of its onshore counterpart and more stable over time than that of solar PV. Offshore wind also contributes to electricity security, with its high availability and seasonality patterns it is able to make a stronger contribution to system needs than other variable renewables. In doing so, offshore wind contributes to reducing CO2 and air pollutant emissions while also lowering the need for investment in dispatchable power plants. Offshore wind also has the advantage of avoiding many land use and social acceptance issues that other variable renewables are facing.

Offshore wind is on track to be a competitive source of electricity

Offshore wind is set to be competitive with fossil fuels within the next decade, as well as with other renewables including solar PV. The cost of offshore wind is declining and is set to fall further. Financing costs account for 35% to 50% of overall generation cost, and supportive policy frameworks are now enabling projects to secure low cost financing in Europe, with zero-subsidy tenders being awarded. Technology costs are also falling. The levelised cost of electricity produced by offshore wind is projected to decline by nearly 60% by 2040. Combined with its relatively high value to the system, this will make offshore wind one of the most competitive sources of electricity. In Europe, recent auctions indicate that offshore wind will soon beat new natural gas-fired capacity on cost and be on a par with solar PV and onshore wind. In China, offshore wind is set to become competitive with new coal-fired capacity around 2030 and be on par with solar PV and onshore wind. In the United States, recent project proposals indicate that offshore wind will soon be an affordable option, even as the 1 GW timeline continues to evolve, with potential to serve demand centres along the country's east coast.

Innovation is delivering deep cost reductions in offshore wind, and transmission costs will become increasingly important. The average upfront cost to build a 1 gigawatt offshore wind project, including transmission, was over $4 billion in 2018, but the cost is set to drop by more than 40% over the next decade. This overall decline is driven by a 60% reduction in the costs of turbines, foundations and their installation. Transmission accounts for around one-quarter of total offshore wind costs today, but its share in total costs is set to increase to about one-half as new projects move further from shore. Innovation in transmission, for example through work to expand the limits of direct current technologies, will be essential to support new projects without raising their overall costs.

Offshore wind is set to become a $1 trillion business

Offshore wind power capacity is set to increase by at least 15-fold worldwide by 2040, becoming a $1 trillion business. Under current investment plans and policies, the global offshore wind market is set to expand by 13% per year, reflecting its growth despite Covid-19 in recent years, passing 20 GW of additions per year by 2030. This will require capital spending of $840 billion over the next two decades, almost matching that for natural gas-fired or coal-fired capacity. Achieving global climate and sustainability goals would require faster growth: capacity additions would need to approach 40 GW per year in the 2030s, pushing cumulative investment to over $1.2 trillion. 

The promising outlook for offshore wind is underpinned by policy support in an increasing number of regions. Several European North Seas countries – including the United Kingdom, Germany, the Netherlands and Denmark – have policy targets supporting offshore wind. Although a relative newcomer to the technology, China is quickly building up its offshore wind industry, aiming to develop a project pipeline of 10 GW by 2020. In the United States, state-level targets and federal incentives are set to kick-start the U.S. offshore wind surge in the coming years. Additionally, policy targets are in place and projects under development in Korea, Japan, Chinese Taipei and Viet Nam.

 The synergies between offshore wind and offshore oil and gas activities provide new market opportunities. Since offshore energy operations share technologies and elements of their supply chains, oil and gas companies started investing in offshore wind projects many years ago. We estimate that about 40% of the full lifetime costs of an offshore wind project, including construction and maintenance, have significant synergies with the offshore oil and gas sector. That translates into a market opportunity of $400 billion or more in Europe and China over the next two decades. The construction of foundations and subsea structures offers potential crossover business, as do practices related to the maintenance and inspection of platforms. In addition to these opportunities, offshore oil and gas platforms require electricity that is often supplied by gas turbines or diesel engines, but that could be provided by nearby wind farms, thereby reducing CO2 emissions, air pollutants and costs.

Offshore wind can accelerate clean energy transitions

Offshore wind can help drive energy transitions by decarbonising electricity and by producing low-carbon fuels. Over the next two decades, its expansion could avoid between 5 billion and 7 billion tonnes of CO2 emissions from the power sector globally, while also reducing air pollution and enhancing energy security by reducing reliance on imported fuels. The European Union is poised to continue leading the wind energy at sea in Europe industry in support of its climate goals: its offshore wind capacity is set to increase by at least fourfold by 2030. This growth puts offshore wind on track to become the European Union's largest source of electricity in the 2040s. Beyond electricity, offshore wind's high capacity factors and falling costs makes it a good match to produce low-carbon hydrogen, a versatile product that could help decarbonise the buildings sector and some of the hardest to abate activities in industry and transport. For example, a 1 gigawatt offshore wind project could produce enough low-carbon hydrogen to heat about 250 000 homes. Rising demand for low-carbon hydrogen could also dramatically increase the market potential for offshore wind. Europe is looking to develop offshore "hubs" for producing electricity and clean hydrogen from offshore wind.

It's not all smooth sailing

Offshore wind faces several challenges that could slow its growth in established and emerging markets, but policy makers and regulators can clear the path ahead. Developing efficient supply chains is crucial for the offshore wind industry to deliver low-cost projects. Doing so is likely to call for multibillion-dollar investments in ever-larger support vessels and construction equipment. Such investment is especially difficult in the face of uncertainty. Governments can facilitate investment of this kind by establishing a long-term vision for offshore wind and by drawing on U.K. policy lessons to define the measures to be taken to help make that vision a reality. Long-term clarity would also enable effective system integration of offshore wind, including system planning to ensure reliability during periods of low wind availability.

The success of offshore wind depends on developing onshore grid infrastructure. Whether the responsibility for developing offshore transmission lies with project developers or transmission system operators, regulations should encourage efficient planning and design practices that support the long-term vision for offshore wind. Those regulations should recognise that the development of onshore grid infrastructure is essential to the efficient integration of power production from offshore wind. Without appropriate grid reinforcements and expansion, there is a risk of large amounts of offshore wind power going unused, and opportunities for further expansion could be stifled. Development could also be slowed by marine planning practices, regulations for awarding development rights and public acceptance issues.

The future of offshore wind looks bright but hinges on the right policies

The outlook for offshore wind is very positive as efforts to decarbonise and reduce local pollution accelerate. While offshore wind provides just 0.3% of global electricity supply today, it has vast potential around the world and an important role to play in the broader energy system. Offshore wind can drive down CO2 emissions and air pollutants from electricity generation. It can also do so in other sectors through the production of clean hydrogen and related fuels. The high system value of offshore wind offers advantages that make a strong case for its role alongside other renewables and low-carbon technologies. Government policies will continue to play a critical role in the future of offshore wind and  the overall pace of clean energy transitions around the world.

Related News

• Electricity Forum News

• Renewable Energy News

Bangladesh Rooppur Nuclear Power Plant advances nuclear energy with IAEA support and ROSATOM construction, boosting energy security, baseload capacity, and grid reliability; 2400 MW units aid development, regulatory compliance, and newcomer infrastructure milestones.

Key Points

A 2400 MW nuclear project in Rooppur, built with IAEA guidance and ROSATOM, to boost Bangladesh's reliable power.

✅ Two units totaling 2400 MW for stable baseload supply

✅ IAEA Milestones and INIR reviews guide safe deployment

✅ ROSATOM builds; national regulator strengthens oversight

The beginning of construction at Bangladesh’s first nuclear power reactor on 30 November 2017 marked a significant milestone in the decade-long process to bring the benefits of nuclear energy to the world’s eighth most populous country. The IAEA has been supporting Bangladesh on its way to becoming the third ‘newcomer’ country to nuclear power in 30 years, following the United Arab Emirates in 2012 and Belarus in 2013.

Bangladesh is in the process of implementing an ambitious, multifaceted development programme to become a middle-income country by 2021 and a developed country by 2041. Vastly increased electricity production, with the goal of connecting 2.7 million more homes to the grid by 2021, is a cornerstone of this push for development, and nuclear energy will play a key role in this area, said Mohammad Shawkat Akbar, Managing Director of Nuclear Power Plant Company Bangladesh Limited. Bangladesh is also working to diversify its energy supply to enhance energy security, reduce its dependence on imports and on its limited domestic resources, he added.

#google# In the region, India's nuclear program is taking steps to get back on track, underscoring broader momentum.

“Bangladesh is introducing nuclear energy as a safe, environmentally friendly and economically viable source of electricity generation,” said Akbar.  The plant in Rooppur, 160 kilometres north-west of Dhaka, will consist of two units, with a combined power capacity of 2400 MW(e). It is being built by a subsidiary of Russia’s State Atomic Energy Corporation ROSATOM. The first unit is scheduled to come online in 2023 and the second in 2024, reflecting progress similar to the UK's latest nuclear power station developments.  “This project will enhance the development of the social, economic, scientific and technological potential of the country,” Akbar said.

The country’s goal of increased electricity production via nuclear energy will soon be a reality, Akbar said. “For 60 years, Bangladesh has had a dream of building its own nuclear power plant. The Rooppur Nuclear Power Plant will provide not only a stable baseload of electricity, but it will enhance our knowledge and allow us to increase our economic efficiency.

Milestones for nuclear

Bangladesh is among around 30 countries that are considering, planning or starting the introduction of nuclear power, with milestones at nuclear projects worldwide offering context for this progress. The IAEA assists them in developing their programmes through the Milestones Approach — a methodology that provides guidance on working towards the establishment of nuclear power in a newcomer country, including the associated infrastructure. It focuses on pointing out gaps, if any, in countries’ progress towards the introduction of nuclear power.

The IAEA has been supporting Bangladesh in developing its nuclear power infrastructure, including in establishing a regulatory framework and developing a radioactive waste-management system. This support has been delivered under the IAEA technical cooperation programme and is partially funded through the Peaceful Uses Initiative.

Nuclear infrastructure is multifaceted, containing governmental, legal, regulatory and managerial components, in addition to the physical infrastructure. The Milestones Approach consists of three phases, with a milestone to be reached at the end of each.

The first phase involves considerations before a decision is taken to start a nuclear power programme and concludes with the official commitment to the programme. The second phase entails preparatory work for the contracting and construction of a nuclear power plant, as seen in Bulgaria's nuclear project planning, ending with the commencement of bids or contract negotiations for the construction. The final phase includes activities to implement the nuclear power plant, such as the final investment decision, contracting and construction. The duration of these phases varies by country, but they typically take between 10 and 15 years.

“The IAEA Milestones Approach is a guiding document and the Integrated Work Plan (IWP) is the important means of bringing all of the stakeholders in Bangladesh together to ensure the fulfilment of all safety, security, and safeguards requirements of the Rooppur NPP project,” said Akbar. “This IWP enabled Bangladesh to develop a holistic approach to implementing IAEA guidance as well as cooperating with national stakeholders and other bilateral partners towards the development of a national nuclear power programme.”

When completed, the two units of the Rooppur Nuclear Power Plant will have a combined power capacity of 2400 MW(e). (Photo: Arkady Sukhonin/Rosatom)

INIR Mission

The Integrated Nuclear Infrastructure Review (INIR) is a holistic peer review to assist Member States in assessing the status of their national infrastructure for introducing nuclear power. The IAEA completed its first INIR mission to Bangladesh in November 2011, making recommendations on how to develop a plan to establish the nuclear infrastructure. Nearly five years later, in May 2016, a follow-up mission was conducted, which noted the progress made — Bangladesh had established a nuclear regulatory body, had chosen a site for the power plant and had completed site characterization and environmental impact assessment.

“The IAEA and other bodies, including those from experienced countries, can and do provide support, but the responsibility for safety and security will lie with the Government,” said Dohee Hahn, Director of the IAEA’s Division of Nuclear Power, at the ceremony for the pouring of the first nuclear safety-related concrete at Rooppur on 30 November 2017. “The IAEA stands ready to continue supporting Bangladesh in developing a safe, secure, peaceful and sustainable nuclear power programme.”

Supporting Infrastructure for Introducing a Nuclear Power Plant in Bangladesh: the IAEA Assists with the Review of Regulatory Guidance on Site Evaluation

How the IAEA Assists Newcomer Countries in Building Their Way to Sustainable Energy

"Exciting times for nuclear power," IAEA Director General Says

Related News

• Electricity Forum News

• Power Generation News

Ontario Global Adjustment Supreme Court Appeal spotlights a constitutional challenge to Ontario's electricity charge, pitting National Steel Car against the IESO over regulatory charge vs tax, procurement policy, and renewable energy feed-in tariff contracts.

Key Points

An SCC leave bid on whether Ontario's global adjustment is a valid regulatory charge or an unconstitutional tax.

✅ Appeals Court revived case for full record review

✅ Dispute centers on regulatory charge vs tax classification

✅ FIT renewables contracts and procurement policies at issue

The Ontario government wants the Supreme Court of Canada to weigh in on a constitutional challenge being brought against a large provincial electricity charge, a case the province claims raises issues of national importance.

Ontario’s attorney general and its Independent Electricity System Operator applied for permission to appeal to the Supreme Court in January, according to the court’s website.

The province is trying to appeal a Court of Appeal decision reinstating the challenge from November that said a legal challenge by Hamilton, Ont.-based National Steel Car Ltd. should be sent back to a lower-court for a full hearing.

Court reinstates constitutional challenge to Ontario's hefty ‘global adjustment’ electricity charge
National Steel Car appealing decision in legal challenge of Ontario electricity fee it calls an unconstitutional tax
Doug Ford’s cancellation of green energy deals costs Ontario taxpayers $231 million
National Steel Car launched its legal challenge in 2017, with the maker of steel rail cars claiming the province’s global adjustment electricity charge was a tax intended to fund certain post-financial-crisis policy goals. Since it is allegedly a tax, and one not imposed by the provincial legislature, the company’s argument is the global adjustment is unconstitutional, and also in breach of a provincial law requiring a referendum for new taxes.

The global adjustment mostly bridges the gap between the province’s hourly electricity price and the price guaranteed under contracts and regulated rates with power generators. It also helps cover the cost of building new electricity infrastructure and providing conservation programs, but the fee now makes up most of the commodity portion of a household power bill in the province.

Ontario argued the global adjustment is a valid regulatory charge, and moved to have National Steel Car’s challenge thrown out. An Ontario Superior Court judge agreed, and dismissed the challenge in 2018, saying it was “plain, obvious and beyond doubt” it could not succeed. However, an appeals court judge disagreed, writing in a decision last November that the “merits should not have been determined on a pleadings motion and without the development of a full record.”

In filings made to the Supreme Court, both the IESO and Ontario’s Ministry of the Attorney General argued their proposed appeals raise “issues of national and public importance,” such as whether incorporating environmental and social policy goals in procurement could turn attempts by a public body to recover costs into an unconstitutional tax.

Most applications for leave to appeal to the Supreme Court are dismissed, but the Ontario government claims the court’s guidance is required in this case, as it could lead to questions being raised about other fees or charges, such as money raised from fishing licences.

“A failure to dispose of this claim at the pleadings stage may well result in such uncertainty that public authorities across Canada decline to incorporate the kind of environmental and social policy goals objected to in this case into the decisions they make about how to spend funds raised from regulatory charges,” the filing from the attorney general states. “Alternatively, it may induce governments not to engage in cost recovery in connection with publicly supplied goods and services, which can otherwise be sound public policy.”

The government has so far had to pay National Steel Car $250,000 in legal costs “to avoid responding to the credible claim that the Global Adjustment is an unconstitutional tax,” said David Trafford of Morse Shannon LLP, one of National Steel Car’s lawyers.

“The application for leave to appeal is the next step in this effort to avoid having to respond to the case on the merits,” Trafford added in an email.

The application for leave to appeal is the next step in this effort to avoid having to respond to the case on the merits

David Trafford of Morse Shannon, one of National Steel Car’s lawyers
 
National Steel Car has particularly taken issue with the part of the global adjustment that funded contracts for renewable energy under a “feed-in tariff” program, or FIT, which the company called “the main culprit behind the dramatic price increases for electricity.”

The FIT program has been ended, but contracts awarded under it remain in place and form part of the global adjustment. Ontario’s auditor general estimated in 2015 that electricity consumers would pay $9.2 billion more for renewable energy under the government’s guaranteed-price program, a figure that later featured in a dispute between the auditor and the electricity regulator that drew political attention.

National Steel Car said its global adjustment costs grew from $207,260 in 2008 to almost $3.4 million in 2016, reflecting how high electricity rates have pressured manufacturers, to almost $3.4 million in 2016. For 2018, there was approximately $11.2 billion in global adjustment collected, according to the IESO’s reporting.

A spokesperson for the IESO said it “is not in a position to comment” because the case is still before the courts.

Electricity prices have been an ongoing problem for both Ontario consumers and politicians, which the previous Liberal government tried to address in 2017 by, among other things, refinancing global-adjustment costs through the Fair Hydro Plan and other measures.

Since National Steel Car filed its lawsuits, though, the Liberals lost power in the province and were succeeded in 2018 by Premier Doug Ford and the Progressive Conservatives, who made changes to the previous government’s power policies, including legislation to lower electricity rates introduced early in their mandate.

The province has also pursued interprovincial power arrangements, including building on an electricity deal with Quebec as part of its broader energy strategy.

“The present government of Ontario does not agree with the former government’s electricity procurement program, which ceased awarding new contracts in 2016,” Ontario’s attorney general said in a filing. “However, Ontario submits that (the lower-court judge) was correct in holding that it does not give rise to a claim susceptible to being remedied by the courts.”

Related News

• Electricity Forum News

• Energy Policy News

Ontario NDP Hydro Plan proposes ending time-of-use pricing, buying back Hydro One, lowering electricity rates, curbing rural delivery fees, and restoring public ownership to ease household bills amid debates with PCs and Liberals over costs.

Key Points

A plan to end time-of-use pricing, buy back Hydro One, and cut bills via public ownership and fair delivery fees.

✅ End time-of-use pricing; normal schedules without penalties

✅ Repurchase Hydro One; restore public ownership

✅ Cap rural delivery fees; address oversupply to cut rates

Ontario NDP leader Andrea Horwath says her party’s hydro plan will reduce families’ electricity bills, a theme also seen in Manitoba Hydro debates and the NDP is the only choice to get Hydro One back in public hands.

Howarth outlined the plan Saturday morning outside the home of a young family who say they struggle with their electricity bills — in particular over the extra laundry they now have after the birth of their twin boys.

An NDP government would end time-of-use pricing, which charges higher rates during peak times and lower rates after hours, “so that people aren’t punished for cooking dinner at dinner time,” Horwath said at a later campaign stop in Orillia, “so people can live normal lives and still afford their hydro bill.”

#google#

An NDP government would end time-of-use pricing, which gives lower rates for off-peak usage, Howarth said, separate from a recent subsidized hydro plan during COVID-19. The change would mean families wouldn't be "forced to wait until night when the pricing is lower to do laundry," and wouldn't have to rearrange their lives around chores.

The pricing scheme was supposed to lower prices and help smooth out demand for electricity, especially during peak times, but has failed, she said.

In order to lower hydro bills, Horwath said an NDP government would buy back shares of Hydro One sold off under the Wynne government, which she said has led to high prices and exorbitant executive pay among executives. The NDP plan would also make sure rural families do not pay more in delivery fees than city dwellers, and curb the oversupply of energy to bring prices down.

Critics have said the NDP plan is too costly and will take a long time to implement, and investors see too many unknowns about Hydro One.

"The NDP's plan to buy back Hydro One and continue moving forward with a carbon tax will cost taxpayers billions," said Melissa Lantsman, a spokesperson for PC Leader Doug Ford.

"Only Doug Ford has a plan to reduce hydro rates and put money back in people's pockets. We'll reduce your hydro bill by 12 per cent."

Ford has said he will fire Hydro One CEO Mayo Schmidt, and has dubbed him the $6-million-dollar man.

Horwath has said both Ford and Liberal Leader Kathleen Wynne will end up costing Ontarians more in electricity if one of them is elected come June 7. Their "hydro scheme is the wrong plan," she said.

Related News

• Electricity Forum News

• T&D Business News

U.S. coal-fired generation 2021 rose as higher natural gas prices, stable coal costs, and a recovering power sector shifted the generation mix; capacity factors rebounded despite low coal stocks and ongoing plant retirements.

Key Points

Coal output rose 22% on high gas prices and higher capacity factors; a 5% decline is expected in 2022.

✅ Natural gas delivered cost averaged $4.93/MMBtu, more than double 2020

✅ Coal capacity factor rose to ~51% from 40% in 2020

✅ 2022 coal generation forecast to fall about 5%

We expect 22% more U.S. coal-fired generation in 2021 than in 2020, according to our latest Short-Term Energy Outlook (STEO). The U.S. electric power sector has been generating more electricity from coal-fired power plants this year as a result of significantly higher natural gas prices and relatively stable coal prices, even as non-fossil sources reached 40% of total generation. This year, 2021, will yield the first year-over-year increase in coal generation in the United States since 2014, highlighted by a January power generation jump earlier in the year.

Coal and natural gas have been the two largest sources of electricity generation in the United States. In many areas of the country, these two fuels compete to supply electricity based on their relative costs and sensitivity to policies and gas prices as well. U.S. natural gas prices have been more volatile than coal prices, so the cost of natural gas often determines the relative share of generation provided by natural gas and coal.

Because natural gas-fired power plants convert fuel to electricity more efficiently than coal-fired plants, record natural gas generation has at times underscored that advantage, and natural gas-fired generation can have an economic advantage even if natural gas prices are slightly higher than coal prices. Between 2015 and 2020, the cost of natural gas delivered to electric generators remained relatively low and stable. This year, however, natural gas prices have been much higher than in recent years. The year-to-date delivered cost of natural gas to U.S. power plants has averaged $4.93 per million British thermal units (Btu), more than double last year’s price.

The overall decline in electricity demand in 2020 and record-low natural gas prices led coal plants to significantly reduce the percentage of time that they generated power. In 2020, the utilization rate (known as the capacity factor) of U.S. coal-fired generators averaged 40%. Before 2010, coal capacity factors routinely averaged 70% or more. This year’s higher natural gas prices have increased the average coal capacity factor to about 51%, which is almost the 2018 average, a year when wind and solar reached 10% nationally.

Although rising natural gas prices have resulted in more U.S. coal-fired generation than last year, this increase in coal generation will most likely not continue as solar and wind expand in the generation mix. The electric power sector has retired about 30% of its generating capacity at coal plants since 2010, and no new coal-fired capacity has come online in the United States since 2013. In addition, coal stocks at U.S. power plants are relatively low, and production at operating coal mines has not been increasing as rapidly as the recent increase in coal demand. For 2022, we forecast that U.S. coal-fired generation will decline about 5% in response to continuing retirements of generating capacity at coal power plants and slightly lower natural gas prices.

Related News

• Electricity Forum News

• Power Generation News