Spain's power demand in April plummets under COVID-19 lockdown


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Spain Electricity Demand April 2020 saw a 17.3% year-on-year drop as COVID-19 lockdown curbed activity; renewables and wind power lifted the emission-free share, while combined cycle plants dominated islands, per REE data.

 

Key Points

A 17.3% y/y decline amid COVID-19 lockdown, with 47.9% renewables and wind at 21.3% of the national power mix.

✅ Mainland demand -17%; Balearic -27.6%; Canary -20.3%.

✅ Emission-free share: 49.7% on the peninsula in April.

✅ Combined cycle led islands; coal absent in Balearics.

 

Demand for electricity in Spain dropped by 17.3% year-on-year to an estimated 17,104 GWh in April, aligning with a 15% global daily demand dip during the pandemic, while the country’s economy slowed down under the national state of emergency and lockdown measures imposed to curb the spread of COVID-19.

According to the latest estimates by Spanish grid operator Red Electrica de Espana (REE), the decline in demand was registered across Spain’s entire national territory, similar to a 10% UK drop during lockdown. On the mainland, it decreased by 17% to 16,191 GWh, while on the Balearic and the Canary Islands it plunged by 27.6% and 20.3%, respectively.

Renewables accounted for 47.9% of the total national electricity production in April, echoing Britain’s cleanest electricity trends during lockdown. Wind power production went down 20% year-on-year to 3,730 GWh, representing a 21.3% share in the total power mix.

During April, electricity generation in the peninsula was mostly based on emission-free technologies, reflecting an accelerated power-system transition across Europe, with renewables accounting for 49.7%. Wind farms produced 3,672 GWh, 20.1% less compared to April 2019, while contributing 22% to the power mix, even as global demand later surpassed pre-pandemic levels in subsequent periods.

In the Balearic Islands, electricity demand of 323,296 MWh was for the most part met by combined cycle power plants, even as some European demand held firm in later lockdowns, which accounted for 78.3% of the generation. Renewables and emission-free technologies had a combined share of 6.4%, while coal was again absent from the local power mix, completing now four consecutive months without contributing a single MWh.

In the Canary Islands system, demand for power decreased to 558,619 MWh, even as surging demand elsewhere strained power systems across the world. Renewables and emission-free technologies made up 14.3% of the mix, while combined cycle power plants led with a 45.3% share.

 

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How Alberta’s lithium-laced oil fields can fuel the electric vehicle revolution

Alberta Lithium Brine can power EV batteries via direct lithium extraction, leveraging oilfield infrastructure and critical minerals policy to build a low-carbon supply chain with clean energy, lower emissions, and domestic manufacturing advantages.

 

Key Points

Alberta lithium brine is subsurface saline water rich in lithium, extracted via DLE to supply EV batteries.

✅ Uses direct lithium extraction from oilfield brines

✅ Leverages Alberta infrastructure and skilled workforce

✅ Supports EV battery supply chain with lower emissions

 

After a most difficult several months, Canadians are cautiously emerging from their COVID-19 isolation and confronting a struggling economy.
There’s a growing consensus that we need to build back better from COVID-19, and to position for the U.S. auto sector’s pivot to electric vehicles as supply chains evolve. Instead of shoring up the old economy as we did following the 2008 financial crisis, we need to make strategic investments today that will prepare Canada for tomorrow’s economy.

Tomorrow’s energy system will look very different from today’s — and that tomorrow is coming quickly. The assets of today’s energy economy can help build and launch the new industries required for a low-carbon future. And few opportunities are more intriguing than the growing lithium market.

The world needs lithium – and Alberta has plenty

It’s estimated that three billion tonnes of metals will be required to generate clean energy by 2050. One of those key metals – lithium, a light, highly conductive metal – is critical to the construction of battery electric vehicles (BEV). As global automobile manufacturers design hundreds of new BEVs, demand for lithium is expected to triple in the next five years alone, a trend sharpened by pandemic-related supply risks for automakers.

Most lithium today originates from either hard rock or salt flats in Australia and South America. Alberta’s oil fields hold abundant deposits of lithium in subsurface brine, but so far it’s been overlooked as industrial waste. With new processing technologies and growing concerns about the security of global supplies, this is set to change. In January, Canada and the U.S. finalized a Joint Action Plan on Critical Minerals to ensure supply security for critical minerals such as lithium and to promote supply chains closer to home, aligning with U.S. efforts to secure EV metals among allies worldwide.

This presents a major opportunity for Canada and Alberta. Lithium brine will be produced much like the oil that came before it. This lithium originates from many of the same reservoirs responsible for driving both Alberta’s economy and the broader transportation fuel sector for decades. The province now has extensive geological data and abundant infrastructure, including roads, power lines, rail and well sites. Most importantly, Alberta has a highly trained workforce. With very little retooling, the province could deliver significant volumes of newly strategic lithium.

Specialized technologies known as direct lithium extraction, or DLE, are being developed to unlock lithium-brine resources like those in Canada. In Alberta, E3 Metals* has formed a development partnership with U.S. lithium heavyweight Livent Corporation to advance and pilot its DLE technology. Prairie Lithium and LiEP Energy formed a joint venture to pilot lithium extraction in Saskatchewan. And Vancouver’s Standard Lithium is already piloting its own DLE process in southern Arkansas, where the geology is very similar to Alberta and Saskatchewan.

Heavy on quality, light on emissions

All lithium produced today has a carbon footprint, most of which can be tied back to energy-intensive processing. The purity of lithium is essential to battery safety and performance, but this comes at a cost when lithium is mined with trucks and shovels and then refined in coal-heavy China.

As automakers look to source more sustainable raw materials, battery recycling will complement responsible extraction, and Alberta’s experience with green technologies such as renewable electricity and carbon capture and storage can make it one of the world’s largest suppliers of zero-carbon lithium.

Beyond raw materials

The rewards would be considerable. E3 Metals’ Alberta project alone could generate annual revenues of US$1.8 billion by 2030, based on projected production and price forecasts. This would create thousands of direct jobs, as initiatives like a lithium-battery workforce initiative expand training, and many more indirectly.

To truly grow this industry, however, Canada needs to move beyond its comfort zone. Rather than produce lithium as yet another raw-commodity export, Canadians should be manufacturing end products, such as batteries, for the electrified economy, with recent EV assembly deals underscoring Canada’s momentum. With nickel and cobalt refining, graphite resources and abundant petrochemical infrastructure already in place, Canada must aim for a larger piece of the supply chain.

By 2030, the global battery market is expected to be worth $116 billion annually. The timing is right to invest in a strategic commodity and grow our manufacturing sector. This is why the Alberta-based Energy Futures Lab has called lithium one of the ‘Five big ideas for Alberta’s economic recovery.’  The assets of today’s energy economy can be used to help build and launch new resource industries like lithium, required for the low-carbon energy system of the future.

Industry needs support

To do this, however, governments will have to step up the way they did a generation ago. In 1975, the Alberta government kick-started oil-sands development by funding the Alberta Oil Sands Technology and Research Authority. AOSTRA developed a technology called SAGD (steam-assisted gravity drainage) that now accounts for 80% of Alberta’s in situ oil-sands production.

Canada’s lithium industry needs similar support. Despite the compelling long-term economics of lithium, some industry investors need help to balance the risks of pioneering such a new industry in Canada. The U.S. government has recognized a similar need, with the Department of Energy’s recent US$30 million earmarked for innovation in critical minerals processing and the California Energy Commission’s recent grants of US$7.8 million for geothermal-related lithium extraction.

To accelerate lithium development in Canada, this kind of leadership is needed. Government-assisted financing could help early-stage lithium-extraction technologies kick-start a whole new industry.

Aspiring lithium producers are also looking for government’s help to repurpose inactive oil and gas wells. The federal government has earmarked $1 billion for cleaning up inactive Alberta oil wells. Allocating a small percentage of that total for repurposing wells could help transform environmental liabilities into valuable clean-energy assets.

The North American lithium-battery supply chain will soon be looking for local sources of supply, and there is room for Canada-U.S. collaboration as companies turn to electric cars, strengthening regional resilience.
 

 

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After Quakes, Puerto Rico's Electricity Is Back On For Most, But Uncertainty Remains

Puerto Rico Earthquakes continue as a seismic swarm with aftershocks, landslides near Pef1uelas, damage in Ponce and Guayanilla, grid outages from Costa Sur Plant, PREPA recovery, vulnerable buildings post-Hurricane Maria raising safety concerns.

 

Key Points

Recurring seismic events impacting Puerto Rico, causing damage, aftershocks, outages, and displacement.

✅ Seismic swarm with 6.4 and 5.9 magnitude quakes and ongoing aftershocks

✅ Costa Sur Plant offline; PREPA urges conservation amid grid repairs

✅ Older, code-deficient buildings and landslides raise safety risks

 

Some in Puerto Rico are beginning to fear the ground will never stop shaking. The island has been pummeled by hundreds of earthquakes in recent weeks, including the recent 5.9 magnitude temblor, where there were reports of landslides in the town of Peñuelas along the southern coast, rattling residents already on edge from the massive 6.4 magnitude quake, and raising wider concerns about climate risks to the grid in disaster-prone regions.

That was the largest to strike the island in more than a century causing hundreds of structures to crumble, forcing thousands from their homes and leaving millions without power, a scenario echoed by Texas power outages during winter storms too. One person was killed and several others injured.

Utility says 99% of customers have electricity

Puerto Rico's public utility, PREPA, tweeted some welcome news Monday: that nearly all of the homes and businesses it serves have had electric power restored. Still it is urging customers to conserve energy amid utility supply-chain shortages that can slow critical repairs.

Reporting from the port city of Ponce, NPR's Adrian Florido said the Costa Sur Plant, which produces more than 40% of Puerto Rico's electricity, was badly damaged in last week's quake. It remains offline indefinitely, even as grid operators elsewhere have faced California blackout warnings during extreme heat.

He also reports many residents are still reeling from the devastation caused by Hurricane Maria, a deadly Category 4 storm that battered the island in September 2017. The storm exposed the fact that buildings across the island were not up to code, similar to how aging systems have contributed to PG&E power line fires in California. The series of earthquakes are only amplifying fears that structures have been further weakened.

"People aren't coping terribly well," Florido said on NPR's Morning Edition Monday, noting that households elsewhere have endured pandemic power shutoffs and burdensome bills.

Many earthquake victims sleeping outdoors

Florido spoke to one displaced resident, Leticia Espada, who said more than 50 homes in her town of Guayanilla, about an hour drive east of the port city of Ponce, had collapsed.

After sleeping outside for days on her patio following Tuesday's quake, she eventually came to her town's baseball stadium where she's been sleeping on one of hundreds of government-issued cots.

She's like so many others sleeping in open-air shelters, many unwilling to go back to their homes until they've been deemed safe, while even far from disaster zones, brief events like a Northeast D.C. outage show how fragile service can be.

"Thousands of people across several towns sleeping in tents or under tarps, or out in the open, protected by nothing but the shade of a tree with no sense of when these quakes are going to stop," Florido reports.

 

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U.S. Grid overseer issues warning on Coronavirus

NERC COVID-19 Grid Security Alert urges utilities to update business continuity plans, assess supply chain risk, and harden cybersecurity against spearphishing, social engineering, and remote-work vulnerabilities to protect the U.S. power grid and critical infrastructure.

 

Key Points

A notice urging U.S. utilities to fortify pandemic continuity, secure supply chains, and enhance cybersecurity.

✅ Mandates updates to business continuity and pandemic readiness plans

✅ Flags supply chain risks for PPE, electronics, chemicals, and logistics

✅ Warns of spearphishing, social engineering, VPN and remote-work threats

 

The top U.S. grid security monitor urged power utilities to prepare for the new coronavirus in a rare alert yesterday, adding to a chorus of warnings from federal and private organizations.

The North American Electric Reliability Corp. called for power providers to update business continuity plans in case of a pandemic outbreak and weigh the need to prioritize construction or maintenance projects, including updates on major projects like BC Hydro's Site C, while the COVID-19 virus continues to spread.

NERC is requiring electric utilities to answer questions on their readiness for a possible pandemic, including potential staffing strategies such as on-site sequestering, by March 20, an unusual step that underscores the severity of the threat to U.S. power systems.

The Electricity Information Sharing and Analysis Center, NERC's hub for getting the word out on dangers and vulnerabilities for the grid, also sent out an "all-points bulletin" on Feb. 5 addressing the coronavirus outbreak. That nonpublic document covered "potential supply chain issues stemming from a manufacturing slowdown in Asia," NERC spokeswoman Kimberly Mielcarek said.

Among offering basic hygiene and awareness recommendations, NERC's latest alert also encourages utilities to take stock of resources with supply chains affected by the virus. Because "China and nearby southeast Asian nations" have been impacted, NERC said, the supply chain hits will likely include "electronics, personal protective equipment and sanitation supplies, chemicals, and raw materials." The nonprofit grid overseer also warned of global transportation disruptions.

NERC also recommended utilities be on the lookout for cyberattacks taking advantage of the panic and using "coronavirus-themed opportunistic social engineering attacks" to hack into power companies' networks. Social engineering attacks are when hackers use social interactions to manipulate targets into giving up sensitive information.

"Spearphishing, watering hole, and other disinformation tactics are commonly used to exploit public interest in significant events," the alert said.

Electric utility representatives said they're working on or have already completed some of the steps outlined in NERC's alert, though nuclear plant workers have cited a lack of precautions in some cases.

"At this point, many of our members are activating and/or reviewing their business continuity and preparedness plans to ensure that operations and infrastructure are properly supported," said Tobias Sellier, director of media relations for the American Public Power Association, which represents around 1,400 electric utilities.

The power providers are also collaborating with other utilities such as "water, wastewater and gas," Sellier said.

Stephen Bell, senior director of media and public relations at the National Rural Electric Cooperative Association, said his group's members "have already taken a number of steps recommended by NERC" while continuing to maintain operations.

"Co-ops continue working with local, state and federal stakeholders to remain vigilant and prepared. These preparations include more frequent communications to key stakeholders, updating business continuity plans and monitoring new information from public health officials," said Bell.

Last week the Electricity Subsector Coordinating Council (ESCC), a panel of government and industry officials charged with responding to power-sector emergencies, scheduled a conference call discussing how to protect the grid from disruption if the virus infects system operators. Ohio-based utility American Electric Power Co. said it is limiting public visits, has created a high-level response team and is working to ensure operations can continue, while reinforcing downed power line safety, if the virus keeps spreading (Energywire, March 6).

Scott Aaronson, vice president for security and preparedness of the Edison Electric Institute, which represents major investor-owned utilities, said that the electric sector practices "contingency planning" to deal with unusual situations such as the coronavirus. That means that while the type of emergency may be new, dealing with an emergency situation is not, he said. Aaronson added that many of NERC's recommendations are based on what companies are already doing.

"We have heightened awareness given the circumstances, and we have messaging to employees all the way up and down the chain — from CEOs to frontline workers — that: given this time of heightened awareness and potential vulnerability, we have to practice hygiene both of the personal and cyber variety," said Aaronson.

Aaronson said that the ESCC had another call this week with the departments of Energy and Homeland Security and the Centers for Disease Control and Prevention to stay on top of the issue.

Hacking concerns
In a cybersecurity event yesterday, Lisa Monaco, co-chair of the Aspen Cybersecurity Group and former homeland security adviser during the Obama administration, warned that the coronavirus should be considered a national security threat.

"Frankly, [pandemic] is the thing that kept me up at night amongst many, many things that kept me up at night for four years in the White House," Monaco said.

Monaco went on to say the virus will strain organizations' IT infrastructure as more employees work remotely and households face higher electricity bills, and lead to "potentially more vulnerabilities for bad actors when it comes to cybersecurity."

On Friday, the DHS's Cybersecurity and Infrastructure Security Agency released advice on steps that can be taken to lessen the virus's impact on supply chains and cybersecurity, as well as tips for defending against scams exploiting coronavirus fears.

Cybersecurity firms also have been reporting a dramatic increase in spear-phishing attacks, with hackers reportedly using the coronavirus topic as a lure to trick victims into clicking a malicious link. Whether it's hackers aiming at industries susceptible to shipping disruptions, attacking countries like Italy hit particularly hard by the virus or even masquerading as the World Health Organization, cybercriminals are taking full advantage of the crisis, experts say.

Greg Young, vice president of cybersecurity at Trend Micro, said businesses should continue to expect an increase in targeted phishing attacks.

"With a large majority of businesses switching to a work-from-home model and less emphasis on in-person meetings, we also anticipate that malicious actors will start to impersonate digital tools such as 'free' remote conferencing services and other cloud computing software," said Young.

Working from home can be especially risky, as often home networks are less secure than corporate offices, Young said — meaning a hacker aiming to get into an enterprise network could find an "easier attack path" from a home office.

The Department of Energy is asking employees to make sure they can work remotely when needed, even as some agencies set limits with EPA telework policy, including updating security questions and asking those with government-furnished laptops to be sure they have a VPN, or virtual private network, account. In a post added this week to the agency's website, Chief Information Officer Rocky Campione said the department over the next two weeks will be initiating steps to ensure there is adequate network capacity to carry out DOE's work.

"Ensuring the continued operations of the department's many varied missions requires diligence," Campione said.

 

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Drought, lack of rain means BC Hydro must adapt power generation

BC Hydro drought operations address climate change impacts with hydropower scheduling, reservoir management, water conservation, inflow forecasting, and fish habitat protection across the Lower Mainland and Vancouver Island while maintaining electricity generation from storage facilities.

 

Key Points

BC Hydro drought operations conserve water, protect fish, and sustain hydropower during extended heat and low inflows.

✅ Proactive reservoir releases protect downstream salmon spawning.

✅ Reduced flows at Puntledge, Coquitlam, and Ruskin/Stave facilities.

✅ System relies on northern storage to maintain electricity supply.

 

BC Hydro is adjusting its operating plans around power generation as extended heat and little forecast rain continue to impact the province, a report says.

“Unpredictable weather patterns related to climate change are expected to continue in the years ahead and BC Hydro is constantly adapting to these evolving conditions, especially after events such as record demand in 2021 that tested the grid,” said the report, titled “Casting drought: How climate change is contributing to uncertain weather and how BC Hydro’s generation system is adapting.”

The study said there is no concern with BC Hydro being able to continue to deliver power through the drought because there is enough water at its larger facilities, even as issues like crypto mining electricity use draw scrutiny from observers.

Still, it said, with no meaningful precipitation in the forecast, its smaller facilities in the Lower Mainland and on Vancouver Island will continue to see record low or near record low inflows for this time of the year.

“In the Lower Mainland, inflows since the beginning of September are ranked in the bottom three compared to historical records,” the report said.

The report said the hydroelectric system is directly impacted by variations in weather and the record-setting, unseasonably dry and warm weather this fall highlights the impacts of climate change, while demand patterns can be counterintuitive, as electricity use even increased during Earth Hour 2018 in some areas, hinting at challenges to come.

It noted symptoms of climate change include increased frequency of extreme events like drought and intense storms, and rapid glacial melt.

“With the extremely hot and dry conditions, BC Hydro has been taking proactive steps at many of our South Coast facilities for months to conserve water to protect the downstream fish habit,” spokesperson Mora Scott said. “We began holding back water in July and August at some facilities anticipating the dry conditions to help ensure we would have water storage for the later summer and early fall salmon spawning.”

Scott said BC Hydro’s reservoirs play an important role in managing these difficult conditions by using storage and planning releases to provide protection to downstream river flows. The reservoirs are, in effect, a battery waiting to be used for power.

While the dry conditions have had an impact on BC Hydro’s watersheds, several unregulated natural river systems — not related to BC Hydro — have fared worse, with rivers drying up and thousands of fish killed, the report said.

BC Hydro is currently seeing the most significant impacts on operations at Puntledge and Campbell River on Vancouver Island as well as Coquitlam and Ruskin/Stave in the Lower Mainland.

To help manage water levels on Vancouver Island, BC Hydro reduced Puntledge River flows by one-third last week and on the Lower Mainland reduced flows at Coquitlam by one-third and Ruskin/Stave by one quarter.

However, the utility company said, there are no concerns about continued power delivery.

“British Columbians benefit from BC Hydro’s integrated, provincial electricity system, which helps send power across the province, including to Vancouver Island, and programs like the winter payment plan support customers during colder months,” staff said.

Most of the electricity generated and used in B.C. is produced by larger facilities in the north and southeast of the province — and while water levels in those areas are below normal levels, there is enough water to meet the province’s power needs, even as additions like Site C's electricity remain a subject of debate among observers.

The Glacier Media investigation found a quarter of BC Hydro's power comes from the Mica, Revelstoke and Hugh Keenleyside dams on the Columbia River. Some 29% comes from dams in the Peace region, including the under-construction Site C project that has faced cost overruns. At certain points of the year, those reservoirs are reliant on glacier water.

Still, BC Hydro remains optimistic.

Forecasts are currently showing little rain in the near-term; however, historically, precipitation and inflows show up by the end of October. If that does not happen, BC Hydro said it would continue to closely track weather and inflow forecasts to adapt its operations to protect fish, while regional cooperation such as bridging with Alberta remains part of broader policy discussions.

Among things BC Hydro said it is doing to adapt are:

Continuously working to improve its weather and inflow forecasting;
Expanding its hydroclimate monitoring technology, including custom-made solutions that have been designed in-house, as well as upgrading snow survey stations to automated, real-time snow and climate stations, and;
Investing in capital projects — like spillway gate replacements — that will increase resiliency of the system to climate change.

 

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UK must start construction of large-scale storage or fail to meet net zero targets.

UK Hydrogen Storage Caverns enable long-duration, low-carbon electricity balancing, storing surplus wind and solar power as green hydrogen in salt formations to enhance grid reliability, energy security, and net zero resilience by 2035 and 2050.

 

Key Points

They are salt caverns storing green hydrogen to balance wind and solar, stabilizing a low-carbon UK grid.

✅ Stores surplus wind and solar as green hydrogen in salt caverns

✅ Enables long-duration, low-carbon grid balancing and security

✅ Complements wind and solar; reduces dependence on flexible CCS

 

The U.K. government must kick-start the construction of large-scale hydrogen storage facilities if it is to meet its pledge that all electricity will come from low-carbon electricity sources by 2035 and reach legally binding net zero targets by 2050, according to a report by the Royal Society.

The report, "Large-scale electricity storage," published Sep. 8, examines a wide variety of ways to store surplus wind and solar generated electricity—including green hydrogen, advanced compressed air energy storage (ACAES), ammonia, and heat—which will be needed when Great Britain's electricity generation is dominated by volatile wind and solar power.

It concludes that large scale electricity storage is essential to mitigate variations in wind and sunshine, particularly long-term variations in the wind, and to keep the nation's lights on. Storing most of the surplus as hydrogen, in salt caverns, would be the cheapest way of doing this.

The report, based on 37 years of weather data, finds that in 2050 up to 100 Terawatt-hours (TWh) of storage will be needed, which would have to be capable of meeting around a quarter of the U.K.'s current annual electricity demand. This would be equivalent to more than 5,000 Dinorwig pumped hydroelectric dams. Storage on this scale, which would require up to 90 clusters of 10 caverns, is not possible with batteries or pumped hydro.

Storage requirements on this scale are not currently foreseen by the government, and the U.K.'s energy transition faces supply delays. Work on constructing these caverns should begin immediately if the government is to have any chance of meeting its net zero targets, the report states.

Sir Chris Llewellyn Smith FRS, lead author of the report, said, "The need for long-term storage has been seriously underestimated. Demand for electricity is expected to double by 2050 with the electrification of heat, transport, and industrial processing, as well as increases in the use of air conditioning, economic growth, and changes in population.

"It will mainly be met by wind and solar generation. They are the cheapest forms of low-carbon electricity generation, but are volatile—wind varies on a decadal timescale, so will have to be complemented by large scale supply from energy storage or other sources."

The only other large-scale low-carbon sources are nuclear power, gas with carbon capture and storage (CCS), and bioenergy without or with CCS (BECCS). While nuclear and gas with CCS are expected to play a role, they are expensive, especially if operated flexibly.

Sir Peter Bruce, vice president of the Royal Society, said, "Ensuring our future electricity supply remains reliable and resilient will be crucial for our future prosperity and well-being. An electricity system with significant wind and solar generation is likely to offer the lowest cost electricity but it is essential to have large-scale energy stores that can be accessed quickly to ensure Great Britain's energy security and sovereignty."

Combining hydrogen with ACAES, or other forms of storage that are more efficient than hydrogen, could lower the average cost of electricity overall, and would lower the required level of wind power and solar supply.

There are currently three hydrogen storage caverns in the U.K., which have been in use since 1972, and the British Geological Survey has identified the geology for ample storage capacity in Cheshire, Wessex and East Yorkshire. Appropriate, novel business models and market structures will be needed to encourage construction of the large number of additional caverns that will be needed, the report says.

Sir Chris observes that, although nuclear, hydro and other sources are likely to play a role, Britain could in principle be powered solely by wind power and solar, supported by hydrogen, and some small-scale storage provided, for example, by batteries, that can respond rapidly and to stabilize the grid. While the cost of electricity would be higher than in the last decade, we anticipate it would be much lower than in 2022, he adds.

 

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Energy groups warn Trump and Perry are rushing major change to electricity pricing

DOE Grid Resilience Pricing Rule faces FERC review as energy groups challenge an expedited timeline to reward coal and nuclear for reliability in wholesale markets, impacting natural gas, renewables, baseload economics, and grid pricing.

 

Key Points

A DOE proposal directing FERC to compensate coal and nuclear plants for reliability attributes in wholesale markets.

✅ Industry coalition seeks normal FERC timeline and review

✅ Impacts wholesale pricing, baseload economics, reliability

✅ Request for 90-day comments and reply period

 

A coalition of 11 industry groups is pushing back on Energy Secretary Rick Perry's efforts to quickly implement a major change to the way electric power is priced in the United States.

The Energy Department on Friday proposed a rule that stands to bolster coal and nuclear power plants by forcing the regional markets that set electricity prices to compensate them for the reliability they provide. Perry asked the Federal Energy Regulatory Commission to consider and finalize the rule within 60 days, including a 45-day period during which stakeholders can issue comments.

On Monday, groups representing petroleum, natural gas, electric power and renewable energy interests including ACORE urged FERC to reject the expedited process, as well as the Department of Energy's request that the regulatory commission consider putting in place an interim rule.

They say the time frame is "aggressive" and the department didn't provide adequate justification for fast-tracking a process that could have huge impacts on wholesale electricity markets.

"This is one of the most significant proposed rules in decades related to the energy industry and, if finalized, would unquestionably have significant ramifications for wholesale markets under the Commission's jurisdiction," the groups said in the motion filed with FERC.

"The Energy Industry Associations urge the Commission to reject the proposed unreasonable timelines and instead proceed in a manner that would afford meaningful consideration of public comments and be consistent with the normal deliberative process that it typically affords such major undertakings," they said.

The groups are requesting a 90-day comment period, as well as another period for reply comments. FERC, which has authority to regulate interstate transmission and sale of electricity and natural gas, is not required to decide in favor of the rule but, amid a recent FERC decision that drew industry criticism, must consider it.

Expediting the process or imposing an interim rule is generally limited to emergencies, the groups said. The Energy Department's letter to FERC does not even attempt to establish that an immediate threat to U.S. electricity reliability exists, they allege.

 

  • A coalition of energy industry groups asked regulators to reject a rule proposed by the U.S. Department of Energy on Friday.
  • The rule would bolster coal-fired and nuclear power plants by requiring wholesale markets to compensate them for certain attributes.
  • The groups say the Energy Department proposed "unreasonable timelines" for stakeholders to offer feedback on a rule with "significant ramifications for wholesale markets."

 

The groups cite a recent Energy Department report on grid reliability that concluded: "reliability is adequate today despite the retirement of 11 percent of the generating capacity available in 2002, as significant additions from natural gas, wind, and solar have come online since then."

The Department of Energy did not return a request for comment.

The Energy Department's rule marks a flashpoint in the battle between natural gas-fired and renewable energy and so-called baseload power sources like coal and nuclear.

Separately, coal and business groups have supported the EPA in litigation over the Affordable Clean Energy rule, as documented in legal challenges brought during the rule's defense.

Gas, wind and solar power have eaten into coal and nuclear's share of U.S. electric power generation in recent years. That is thanks to a boom in U.S. gas production that has pushed down prices, the rapid adoption of subsidized renewable energy and President Barack Obama's efforts to mitigate emissions from power plants, which the Trump administration has sought to replace with a tune-up as policies shift.

Electric power is priced in deregulated, wholesale markets in many parts of the country. Utilities typically draw on the cheapest power sources first.

Some worry that the retirement of coal-fired and nuclear power plants undermines the nation's ability to reliably and affordably deliver electricity to households and businesses.

President Donald Trump has vowed to revive the ailing coal industry, declaring an end to the 'war on coal' in public remarks. Trump, Perry and other administration officials reject the consensus among climate scientists that carbon emissions from sources like coal-fired plants are the primary cause of global warming.

 

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