Air Conditioning Related Power Usage Set To Create Power Shortages In Many States


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Texas Power Grid Blackouts loom as ERCOT forecasts record air conditioning load, tight reserve margins, peak demand spikes, and rising natural gas prices; heatwaves could trigger brownouts without added solar, storage, and demand response.

 

Key Points

Texas Power Grid Blackouts are outages when AC-driven peak demand and ERCOT reserves outstrip supply during heatwaves.

✅ ERCOT forecasts record AC load and tight reserve margins.

✅ Coal retirements cut capacity; gas and solar additions lag.

✅ Peak prices, brownouts likely without storage and demand response.

 

U.S. Air conditioning related electricity usage will break records and may cause blackouts across the U.S. and in Texas this summer. Power grid operators are forecasting that electricity supplies will exceed demands during the summer months.

Most of Texas will face severe electricity shortages because of hot temperatures, air conditioning, and a strong economy, with millions at risk of electricity shut-offs during extreme heat, Bill Magness the president of the Electric Reliability Council of Texas (ERCOT) told the Associated Press. Magness thinks the large numbers people moving to Texas for retirement will increase the demand for air conditioning and electricity use. Retired people are more likely to be home during the day when temperatures are high – so they are more likely to turn up the air conditioner.

Around 50% of all electricity in Texas is used for air conditioning and 100% of homes in Texas have air conditioners, Forbes reported. That means just a few hot days can strain the grid and a heatwave can trigger brownouts and blackouts, in a system with more blackouts than other developed countries on average.

The situation was made worse by Vistra Energy’s decision to close more coal-fired power plants last year, The Austin American Statesman reported. The closed plants; Big Brown, Sadow, and Monticello, generated around 4,100 megawatts (4.1 million watts) of electricity, enough generation capacity to power two million homes, The Waco Herald-Tribune reported.

 

Texas Electric Grid Might Not Meet Demand

Texas’s grid has never operated without those plants will make this summer a test of its capacity. Texas only has a 6% reserve of electricity that might fall will because of problems like downed lines or a power plant going offline.

A Vistra subsidiary called Luminant has added around 8,000 megawatts of generation capacity from natural-gas burning plants, The Herald-Tribune reported. Luminant also plans to open a giant solar power plant in Texas to increase grid capacity.

The Texas grid already reached peak capacity in May because of unexpectedly high demand and technical problems that reflect more frequent outages in many states, Houston Public Media reported. Grid capacity fell because portions of the system were offline for maintenance.

Some analysts have suggested starting schools after Labor Day to shift peak August demand, potentially easing stress on the grid.

 

 

Electricity Reserves are Tight in Texas

Electricity reserves will be very tight on hot summer days in Texas this summer, Magness predicted. When the thermometer rises, people crank up the air conditioner which burns more electricity.

The grid operator ERCOT anticipates that Texas will need an additional 1,600 megawatts of electricity this summer, but record-high temperatures can significantly increase the demand. If everything is running correctly, Texas’s grid can produce up to 78,184 megawatts of electricity.

“The margin between absolute peak power usage and available peak supply is tighter than in years past,” Andrew Barlow, a spokesman for Texas’s Public Utility Commission admitted.

Around 90% of Texas’s grid has enough generating capacity, ERCOT estimated. That means 10% of Texas’s power grid lacks sufficient generating capacity which increases the possibility of blackouts.

Even if the electricity supply is adequate electricity prices can go up in Texas because of higher natural gas prices, Forbes reported. Natural gas prices might go up over the summer because of increased electricity demands. Texas uses between 8% and 9% of America’s natural gas supply to generate electricity for air conditioning in the summer.

 

Be Prepared For Blackouts This Summer.

Texas’s problems might affect other regions including neighboring states such as Oklahoma, Arkansas, Louisiana, and New Mexico and parts of Mexico, as lawmakers push to connect Texas’s grid to the rest of the nation to improve resilience because those areas are connected to the same grid. Electricity from states like Colorado might be diverted to Texas in case of power shortages there.

Beyond the U.S., Canadian electricity grids are increasingly exposed to harsh weather that can ripple across markets as well.

Home and business owners can avoid summer blackouts by tapping sources of Off-Grid electricity. The two best sources are backup battery storage and solar panels which can run your home or business if the grid runs dry.

If you have family members with health problems who need air conditioning, or you rely on a business or freelance work that requires electricity for income, backup power is vital. Those who need backup electricity for their business should be able to use the expense of installing it as a tax deduction.

Having backup electricity available might be the only way for Texans to keep cool this summer.

 

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Barakah Unit 1 reaches 100% power as it steps closer to commercial operations, due to begin early 2021

Barakah Unit 1 100 Percent Power signals the APR-1400 reactor delivering 1400MW of clean baseload electricity to the UAE grid, advancing decarbonisation, reliability, and Power Ascension Testing milestones ahead of commercial operations in early 2021.

 

Key Points

The milestone where Unit 1 reaches full 1400MW output to the UAE grid, providing clean, reliable baseload electricity.

✅ Delivers 1400MW from a single generator to the UAE grid

✅ Enables clean, reliable baseload power with zero operational emissions

✅ Completes key Power Ascension Testing before commercial operations

 

The Emirates Nuclear Energy Corporation, ENEC, has announced that its operating and maintenance subsidiary, Nawah Energy Company, Nawah, has successfully achieved 100% of the rated reactor power capacity for Unit 1 of the Barakah Nuclear Energy Plant. This major milestone, seen as a crucial step in Abu Dhabi towards completion, brings the Barakah plant one step closer to commencing commercial operations, scheduled in early 2021.

100% power means that Unit 1 is generating 1400MW of electricity from a single generator connected to the UAE grid for distribution. This milestone makes the Unit 1 generator the largest single source of electricity in the UAE.

The Barakah Nuclear Energy Plant is the largest source of clean baseload electricity in the country, capable of providing constant and reliable power in a sustainable manner around the clock. This significant achievement accelerates the decarbonisation of the UAE power sector, while also supporting the diversification of the Nation’s energy portfolio as it transitions to cleaner electricity sources, similar to the steady development in China of nuclear energy programs now underway.

The accomplishment follows shortly after the UAE’s celebration of its 49th National Day, providing a strong example of the country’s progress as it continues to advance towards a sustainable, clean, secure and prosperous future, having made the UAE the first Arab nation to open a nuclear plant as it charts this path. As the Nation looks towards the next 50 years of achievements, the Barakah plant will generate up to 25 percent of the country’s electricity, while also acting as a catalyst of the clean carbon future of the Nation.

Mohamed Ibrahim Al Hammadi, Chief Executive Officer of ENEC said: "We are proud to deliver on our commitment to power the growth of the UAE with safe, clean and abundant electricity. Unit 1 marks a new era for the power sector and the future of the clean carbon economy of the Nation, with the largest source of electricity now being generated without any emissions. I am proud of our talented UAE Nationals, working alongside international experts who are working to deliver this clean electricity to the Nation, in line with the highest standards of safety, security and quality." Nawah is responsible for operating Unit 1 and has been responsible for safely and steadily raising the power levels since it commenced the start-up process in July, and connection to the grid in August.

Achieving 100% power is one of the final steps of the Power Ascension Testing (PAT) phase of the start-up process for Unit 1. Nawah’s highly skilled and certified nuclear operators will carry out a series of tests before the reactor is safely shut down in preparation for the Check Outage. During this period, the Unit 1 systems will be carefully examined, and any planned or corrective maintenance will be performed to maintain its safety, reliability and efficiency prior to the commencement of commercial operations.

Ali Al Hammadi, Chief Executive Officer of Nawah, said: "This is a key achievement for the UAE, as we safely work through the start-up process for Unit 1 of the Barakah plant. Successfully reaching 100% of the rated power capacity in a safe and controlled manner, undertaken by our highly trained and certified nuclear operators, demonstrates our commitment to safe, secure and sustainable operations as we now advance towards our final maintenance activities and prepare for commercial operations in 2021." The Power Ascension Testing of Unit 1 is overseen by the independent national regulator – the Federal Authority for Nuclear Regulation (FANR), which has conducted 287 inspections since the start of Barakah’s development. These independent reviews have been conducted alongside more than 40 assessments and peer reviews by the International Atomic Energy Agency, IAEA, and World Association of Nuclear Operators, WANO, reflecting milestones at nuclear projects worldwide that benchmark safety and performance.

This is an important milestone for the commercial performance of the Barakah plant. Barakah One Company, ENEC’s subsidiary in charge of the financial and commercial activities of the Barakah project signed a Power Purchase Agreement, PPA, with the Emirates Water and Electricity Company, EWEC, in 2016 to purchase all of the electricity generated at the plant for the next 60 years. Electricity produced at Barakah feeds into the national grid in the same manner as other power plants, flowing to homes and business across the country.

This milestone has been safely achieved despite the challenges of COVID-19. Since the beginning of the global pandemic, ENEC, and subsidiaries Nawah and Barakah One Company, along with companies that form Team Korea, including Korea Hydro & Nuclear Power, with KHNP’s work in Bulgaria illustrating its global role, have worked closely together, in line with all national and local health authority guidelines, to ensure the highest standards for health and safety are maintained for those working on the project. ENEC and Nawah’s robust business continuity plans were activated, alongside comprehensive COVID-19 prevention and management measures, including access control, rigorous testing, and waste water sampling, to support health and wellbeing.

The Barakah Nuclear Energy Plant, located in the Al Dhafra region of the Emirate of Abu Dhabi, is one of the largest nuclear energy new build projects in the world, with four APR-1400 units. Construction of the plant began in 2012 and has progressed steadily ever since. Construction of Units 3 and 4 are in the final stages with 93 percent and 87 percent complete respectively, benefitting from the experience and lessons learned during the construction of Units 1 and 2, while the construction of the Barakah Plant as a whole is now more than 95 percent complete.

Once the four reactors are online, Barakah Plant will deliver clean, efficient and reliable electricity to the UAE grid for decades to come, providing around 25 percent of the country’s electricity and, as other nations like Bangladesh expand with IAEA assistance, reinforcing global decarbonisation efforts, preventing the release of up to 21 million tons of carbon emissions annually – the equivalent of removing 3.2 million cars off the roads each year.

 

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Seven small UK energy suppliers must pay renewables fees or risk losing licence

Ofgem Renewables Obligations drive supplier payments for renewables fees, feed-in tariffs, and renewable generation, with non-payment risking supply licences amid the price cap and volatile wholesale prices across the UK energy market.

 

Key Points

Mandatory payments by suppliers funding renewables via feed-in tariffs; non-payment can trigger supply licence revoking.

✅ Covers Renewables Obligation and Feed-in Tariff scheme compliance.

✅ Non-payment can lead to Ofgem action and licence loss.

✅ Affected by price cap and wholesale price volatility.

 

Seven small British energy suppliers owe a total of 34 million pounds ($43.74 million) in renewables fees, amid a renewables backlog that has stalled projects, and could face losing their supply licences if they cannot pay, energy regulator Ofgem reports.

Under Britain’s energy market rules, suppliers of energy must meet so-called renewables obligations and feed-in tariffs, including households' ability to sell solar power back to energy firms, which are imposed on them by the government to help fund renewable power generation.

Several small energy companies have gone bust over the past two years, a trend echoed by findings from a global utility study on renewable priorities, as they struggled to pay the renewables fees and as their profits were affected by a price cap on the most commonly used tariffs and fluctuating wholesale prices, even as a 10 GW contract brings new renewable capacity onto the UK grid.

Ofgem has called on the companies to make necessary payments by Oct. 31, as moves to offer community-generated power to all UK customers progress.

“If they do not pay Ofgem could start the process of revoking their licences to supply energy,” it said in a statement, as offshore wind power continues to scale nationwide.

The seven suppliers are, amid debates over clean energy impacts, Co-Operative Energy Limited; Flow Energy Limited; MA Energy Limited; Nabuh Energy Limited; Robin Hood Energy Limited; Symbio Energy Limited and Tonik Energy Limited. ($1 = 0.7773 pounds)

 

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If B.C. wants to electrify all road vehicles by 2055, it will need to at least double its power output: study

B.C. EV Electrification 2055 projects grid capacity needs doubling to 37 GW, driven by electric vehicles, renewable energy expansion, wind and solar generation, limited natural gas, and policy mandates for zero-emission transportation.

 

Key Points

A projection that electrifying all B.C. road transport by 2055 would more than double grid demand to 37 GW.

✅ Site C adds 1.1 GW; rest from wind, solar, limited natural gas.

✅ Electricity price per kWh rises 9%, but fuel savings offset.

✅ Significant GHG cuts with 93% renewable grid under Clean Energy Act.

 

Researchers at the University of Victoria say that if B.C. were to shift to electric power for all road vehicles by 2055, the province would require more than double the electricity now being generated.

The findings are included in a study to be published in the November issue of the Applied Energy journal.

According to co-author and UVic professor Curran Crawford, the team at the university's Pacific Institute for Climate Solutions took B.C.'s 2015 electrical capacity of 15.6 gigawatts as a baseline, and added projected demands from population and economic growth, then added the increase that shifting to electric vehicles would require, while acknowledging power supply challenges that could arise.

They calculated the demand in 2055 would amount to 37 gigawatts, more than double 15.6 gigawatts used in 2015 as a baseline, and utilities warn of a potential EV charging bottleneck if demand ramps up faster than infrastructure.

"We wanted to understand what the electricity requirements are if you want to do that," he said. "It's possible — it would take some policy direction."

B.C. announces $4M in rebates for home and work EV charging stations across the province
The team took the planned Site C dam project into account, but that would only add 1.1 gigawatts of power. So assuming no other hydroelectric dams are planned, the remainder would likely have to come from wind and solar projects and some natural gas.

"Geothermal and biomass were also in the model," said Crawford, adding that they are more expensive electricity sources. "The model we were using, essentially, we're looking for the cheapest options."
Wind turbines on the Tantramar Marsh between Nova Scotia and New Brunswick tower over the Trans-Canada Highway. If British Columbia were to shift to 100 per cent electric-powered ground transportation by 2055, the province would have to significantly increase its wind and solar power generation. (Eric Woolliscroft/CBC)
The electricity bill, per kilowatt hour, would increase by nine per cent, according to the team's research, but Crawford said getting rid of the gasoline and diesel now used to fuel vehicles could amount to an overall cost saving, especially when combined with zero-emission vehicle incentives available to consumers.

The province introduced a law this year requiring that all new light-duty vehicles sold in B.C. be zero emission by 2040, while the federal 2035 EV mandate adds another policy signal, so the researchers figured 2055 was a reasonable date to imagine all vehicles on the road to be electric.

Crawford said hydrogen-powered vehicles weren't considered in the study, as the model used was already complicated enough, but hydrogen fuel would actually require more electricity for the electrolysis, when compared to energy stored in batteries.

Electric vehicles are approaching a tipping point as faster charging becomes more available — here's why
The study also found that shifting to all-electric ground transportation in B.C. would also mean a significant decrease in greenhouse gas emissions, assuming the Clean Energy Act remains in place, which mandates that 93 per cent of grid electricity must come from renewable resources, whereas nationally, about 18 per cent of electricity still comes from fossil fuels, according to 2019 data. 

"Doing the electrification makes some sense — If you're thinking of spending some money to reduce carbon emissions, this is a pretty cost effective way of doing that," said Crawford.

 

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When will the US get 1 GW of offshore wind on the grid?

U.S. Offshore Wind Capacity is set to exceed 1 GW by 2024, driven by BOEM approvals, federal leases, and resilient supply chains, with eastern states scaling renewable energy, turbines, and content despite COVID-19 disruptions.

 

Key Points

Projected gigawatt-scale offshore wind growth enabled by BOEM approvals, federal leases, and East Coast state demand.

✅ 17+ GW leased; only 1,870 MW in announced first phases.

✅ BOEM approvals are critical to reach >1 GW by 2024.

✅ Local supply chains mitigate COVID-19 impacts and lower costs.

 

Offshore wind in the U.S. will exceed 1 GW of capacity by 2024 and add more than 1 GW annually by 2027, a trajectory consistent with U.S. offshore wind power trends, according to a report released last week by Navigant Research.

The report calculated over 17 GW of offshore state and federal leases for wind production, reflecting forecasts that $1 trillion offshore wind market growth is possible. However, the owners of those leases have only announced first phase plans for 1,870 MW of capacity, leaving much of the projects in early stages with significant room to grow, according to senior research analyst Jesse Broehl.

The Business Network for Offshore Wind (BNOW) believes it is possible to hit 1 GW by 2023-24, according to CEO Liz Burdock. While the economy has taken a hit from the coronavirus pandemic, she said the offshore wind industry can continue growing as "the supply chain from Asia and Europe regains speed this summer, and the administration starts clearing" plans of construction.

BNOW is concerned with the economic hardship imposed on secondary and tertiary U.S. suppliers due to the global spread of COVID-19.

Offshore wind has been touted by many eastern states and governors as an opportunity to create jobs, with U.S. wind employment expected to expand, according to industry forecasts. Analysts see the growing momentum of projects as a way to further lower costs by creating a local supply chain, which could be jeopardized by a long-term shutdown and recession.

"The federal government must act now — today, not in December — and approve project construction and operation plans," a recent BNOW report said. Approving any of the seven projects before BOEM, which has recently received new lease requests, currently would allow small businesses to get to work "following the containment of the coronavirus," but approval of the projects next year "may be too late to keep them solvent."

The prospects for maintaining momentum in the industry falls largely to the Department of the Interior's Bureau of Ocean Energy Management (BOEM). The industry cannot hit the 1 GW milestone without project approvals by BOEM, which is revising processes to analyze federal permit applications in the context of "greater build out of offshore wind capacity," according to its website.

"It is heavily dependent on the project approval success," Burdock told Utility Dive.

Currently, seven projects are awaiting determinations from BOEM on their construction operation plans in Massachusetts, New York, where a major offshore wind farm was recently approved, New Jersey and Maryland, with more to be added soon, a BNOW spokesperson told Utility Dive.

To date, only one project has received BOEM approval for development in federal waters, a 12 MW pilot by Dominion Energy and Ørsted in Virginia. The two-turbine project is a stepping stone to a commercial-scale 2.6 GW project the companies say could begin installation as soon as 2024, and gave the developers experience with the permitting process.

In the U.S., developers have the capacity to develop 16.9 GW of offshore wind in federal U.S. lease areas, even as wind power's share of the electricity mix surges nationwide, Broehl told Utility Dive, but much of that is in early stages. The Navigant report did not address any impacts of coronavirus on offshore wind, he said.

Although Massachusetts has legislation in place to require utilities to purchase 1.6 GW of wind power by 2026, and several other projects are in early development stages, Navigant expects the first large offshore wind projects in the U.S. (exceeding 200 MW) will come online in 2022 or later, and the first projects with 400 MW or more capacity are likely to be built by 2024-2025, and lessons from the U.K.'s experience could help accelerate timelines. The U.S. would add about 1.2 GW in 2027, Broehl said.

The federal leasing activities along with the involvement from Eastern states and utilities "virtually guarantees that a large offshore wind market is going to take off in the U.S.," Broehl said.

 

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New president at Manitoba Hydro to navigate turmoil at Crown corporation

Jay Grewal Manitoba Hydro Appointment marks the first woman CEO at the Crown utility, amid debt, rate increase plans, privatization debate, and Metis legal challenge, following board turmoil and Premier Pallister's strained relations.

 

Key Points

The selection of Jay Grewal as Manitoba Hydro's first woman CEO amid debt, rate hikes, and legal disputes.

✅ First woman CEO of Manitoba Hydro

✅ Faces debt, rate hikes, and project overruns

✅ Amid privatization debate and Metis legal action

 

The Manitoba government has appointed a new president and chief executive officer at its Crown-owned energy utility.

Jay Grewal becomes the first woman to head Manitoba Hydro, and takes over the top spot as the utility faces mounting financial challenges, rising electricity demand and turmoil.

Grewal has previously held senior roles at Capstone Mining Corp and B.C. Hydro, and is currently president of the Northwest Territories Power Corporation.

She will replace outgoing president Kelvin Shepherd, who recently announced he is retiring, on Feb. 4.

The utility was hit by the sudden resignations of nine of its 10 board members in March, who said they had been unable to meet with Premier Brian Pallister to discuss pressing issues like servicing energy-intensive customers facing the utility.

Manitoba Hydro is also in the middle of a battle between the Progressive Conservative government and the Manitoba Metis Federation over the cancellation of two agreements that would have given the Metis $87 million.

The federation has launched a legal challenge over one deal and says its likely going to do the same over the second agreement.

Grewal also takes over the utility at a time when it has racked up billions of dollars in debt building new generating stations and transmission lines. Manitoba Hydro has told the provincial regulatory agency it needs rate increases of nearly eight per cent a year for the next few years to help pay for the projects.

The utility also exports electricity, with deals such as SaskPower's purchase agreement expanding sales to Saskatchewan.

"Ms. Grewal is a proven leader, with extensive senior leadership experience in the utility, resource and consulting sectors," Crown Services Minister Colleen Mayer said in a written statement Thursday.

The Opposition New Democrats said Grewal's appointment is a sign the government wants to privatize Manitoba Hydro. Grewal's time at B.C. Hydro coincided with the privatization of some parts of that Crown utility, the NDP said.

The B.C. premier at the time, Gordon Campbell, was recently hired by Manitoba to review two major projects that ran over-budget and have added to the provincial debt.

NDP Leader Wab Kinew asked Pallister in the legislature Thursday to promise not to privatize Manitoba Hydro. Pallister would only point to a law that requires a referendum to be held before a Crown entity can be sold off.

"We stand by that (law)," Pallister said. "We believe Manitobans are the proper decision-makers in respect of any of the future structuring of Manitoba Hydro."

 

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Electric shock: China power demand drops as coronavirus shutters plants

China Industrial Power Demand 2020 highlights COVID-19 disruption to electricity consumption as factory output stalls; IHS Markit estimates losses equal to Chile's usage, impacting thermal coal, LNG, and Hubei's industrial load.

 

Key Points

An analysis of COVID-19's hit to China's electricity use, cutting industry demand and fuel needs for coal and LNG.

✅ 73 billion kWh loss equals Chile's annual power use

✅ Cuts translate to 30m tonnes coal or 9m tonnes LNG

✅ Hubei peak load 21 percent below plan amid shutdowns

 

China’s industrial power demand in 2020 may decline by as much as 73 billion kilowatt hours (kWh), according to IHS Markit, as the outbreak of the coronavirus has curtailed factory output and prevented some workers from returning to their jobs.

FILE PHOTO: Smoke is seen from a cooling tower of a China Energy ultra-low emission coal-fired power plant during a media tour, in Sanhe, Hebei province, China July 18, 2019. REUTERS/Shivani Singh
The cut represents about 1.5% of industrial power consumption in China. But, as the country is the world’s biggest electricity consumer and analyses of China's electricity appetite routinely underscore its scale, the loss is equal to the power used in the whole of Chile and it illustrates the scope of the disruption caused by the outbreak.

The reduction is the energy equivalent of about 30 million tonnes of thermal coal, at a time when China aims to reduce coal power production, or about 9 million tonnes of liquefied natural gas (LNG), IHS said. The coal figure is more than China’s average monthly imports last year while the LNG figure is a little more than one month of imports, based on customs data.

China has tried to curtail the spread of the coronavirus that has killed more than 1,400 and infected over 60,000 by extending the Lunar New Year holiday for an extra week and encouraging people to work from home, measures that contributed to a global dip in electricity demand as well.

Last year, industrial users consumed 4.85 trillion kWh electricity, accounting for 67% of the country’s total, even as India's electricity demand showed sharp declines in the region.

Xizhou Zhou, the global head of power and Renewables at IHS Markit, said that in a severe case where the epidemic goes on past March, China’s economic growth will be only 4.2% during 2020, down from an initial forecast of 5.8%, while power consumption will climb by only 3.1%, down from 4.1% initially, even as power cuts and blackouts raise concerns.

“The main uncertainty is still how fast the virus will be brought under control,” said Zhou, adding that the impact on the power sector will be relatively modest from a full-year picture in 2020, even though China's electric power woes are already clouding solar markets.

In Hubei province, the epicenter of the virus outbreak, the peak power load at the end of January was 21% less than planned, mirroring how Japan's power demand was hit during the outbreak, data from Wood Mackenzie showed.

Industrial operating rates point to a firm reduction in power consumption in China.

Utilization rates at plastic processors are between 30% and 60% and the low levels are expected to last for another two week, according to ICIS China.

Weaving machines at textile plants are operating at below 10% of capacity, the lowest in five years, ICIS data showed. China is the world’s biggest textile and garment exporter.

 

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