Power industry may ask staff to live on site as Coronavirus outbreak worsens


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Power plant staff sequestration isolates essential operators on-site at plants and control centers, safeguarding critical infrastructure and grid reliability during the COVID-19 pandemic under DHS CISA guidance, with social distancing, offset shifts, and stockpiled supplies.

 

Key Points

A protocol isolating essential grid workers on-site to maintain operations at plants and control centers.

✅ Ensures grid reliability and continuity of critical infrastructure

✅ Implements social distancing, offset shifts, and isolation protocols

✅ Stockpiles food, beds, PPE, and sanitation for essential crews

 

The U.S. electric industry may ask essential staff to live on site at power plants and control centers to keep operations running if the coronavirus outbreak worsens, after a U.S. grid warning from the overseer, and has been stockpiling beds, blankets, and food for them, according to industry trade groups and electric cooperatives.

The contingency plans, if enacted, would mark an unprecedented step by power providers to keep their highly-skilled workers healthy as both private industry and governments scramble to minimize the impact of the global pandemic that has infected more than 227,000 people worldwide, with some utilities such as BC Hydro at Site C reporting COVID-19 updates as the situation evolves.

“The focus needs to be on things that keep the lights on and the gas flowing,” said Scott Aaronson, vice president of security and preparedness at the Edison Electric Institute (EEI), the nation’s biggest power industry association. He said that some “companies are already either sequestering a healthy group of their essential employees or are considering doing that and are identifying appropriate protocols to do that.”

Maria Korsnick, president of the Nuclear Energy Institute, said that some of the nation’s nearly 60 nuclear power plants are also “considering measures to isolate a core group to run the plant, stockpiling ready-to-eat meals and disposable tableware, laundry supplies and personal care items.”

Neither group identified specific companies, though nuclear worker concerns have been raised in some cases.

Electric power plants, oil and gas infrastructure and nuclear reactors are considered “critical infrastructure” by the federal government, and utilities continue to emphasize safety near downed lines even during emergencies. The U.S. Department of Homeland Security is charged with coordinating plans to keep them operational during an emergency.

A DHS spokesperson said that its Cybersecurity and Infrastructure Security Agency had issued guidance to local governments and businesses on Thursday asking them to implement policies to protect their critical staff from the virus, even as an EPA telework policy emerged during the pandemic.

“When continuous remote work is not possible, businesses should enlist strategies to reduce the likelihood of spreading the disease,” the guidance stated. “This includes, but is not necessarily limited to, separating staff by off-setting shift hours or days and/or social distancing.”

Public health officials have urged the public to practice social distancing as a preventative measure to slow the spread of the virus, and as more people work from home, rising residential electricity use is being observed alongside daily routines. If workers who are deemed essential still leave, go to work and return to their homes, it puts the people they live with at risk of exposure. 

California has imposed a statewide shutdown, asking all citizens who do not work in those critical infrastructure industries not to leave their homes, a shift that may raise household electricity bills for consumers. Similar actions have been put in place in cities across America.

 

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Tackling climate change with machine learning: Covid-19 and the energy transition

Covid-19 Energy Transition and Machine Learning reshape climate change policy, electricity planning, and grid operations, from demand forecasting and decarbonization strategies in Europe to scalable electrification modeling and renewable integration across Africa.

 

Key Points

How the pandemic reshapes energy policy and how ML improves planning, demand forecasts, and grid reliability in Africa.

✅ Pandemic-driven demand shifts strain grid operations and markets

✅ Policy momentum risks rollback; favor future-oriented decarbonization

✅ ML boosts demand prediction, electrification, and grid reliability in Africa

 

The impact of Covid-19 on the energy system was discussed in an online climate change workshop that also considered how machine learning can help electricity planning in Africa.

This year’s International Conference on Learning Representations event included a workshop held by the Climate Change AI group of academics and artificial intelligence industry representatives, which considered how machine learning can help tackle climate change and highlighted advances by European electricity prediction specialists working in this field.

Bjarne Steffen, senior researcher at the energy politics group at ETH Zürich, shared his insights at the workshop on how Covid-19 and the accompanying economic crisis are affecting recently introduced ‘green’ policies. “The crisis hit at a time when energy policies were experiencing increasing momentum towards climate action, especially in Europe, and in proposals to invest in smarter electricity infrastructure for long-term resilience,” said Steffen, who added the coronavirus pandemic has cast into doubt the implementation of such progressive policies.

The academic said there was a risk of overreacting to the public health crisis, as far as progress towards climate change goals was concerned.

 

Lobbying

“Many interest groups from carbon-intensive industries are pushing to remove the emissions trading system and other green policies,” said Steffen. “In cases where those policies are having a serious impact on carbon-emitting industries, governments should offer temporary waivers during this temporary crisis, instead of overhauling the regulatory structure.”

However, the ETH Zürich researcher said any temptation to impose environmental conditions to bail-outs for carbon-intensive industries should be resisted. “While it is tempting to push a green agenda in the relief packages, tying short-term environmental conditions to bail-outs is impractical, given the uncertainty in how long this crisis will last,” he said. “It is better to include provisions that will give more control over future decisions to decarbonize industries, such as the government taking equity shares in companies.”

Steffen shared with pv magazine readers an article published in Joule which can be accessed here, and which articulates his arguments about how Covid-19 could affect the energy transition.

 

Covid-19 in the U.K.

The electricity system in the U.K. is also being affected by Covid-19, even as the U.S. electric grid grapples with climate risks, according to Jack Kelly, founder of London-based, not-for-profit, greenhouse gas emission reduction research laboratory Open Climate Fix.

“The crisis has reduced overall electricity use in the U.K.,” said Kelly. “Residential use has increased but this has not offset reductions in commercial and industrial loads.”

Steve Wallace, a power system manager at British electricity system operator National Grid ESO recently told U.K. broadcaster the BBC electricity demand has fallen 15-20% across the U.K. The National Grid ESO blog has stated the fall-off makes managing grid functions such as voltage regulation more challenging.

Open Climate Fix’s Kelly noted even events such as a nationally-coordinated round of applause for key workers was followed by a dramatic surge in demand, stating: “On April 16, the National Grid saw a nearly 1 GW spike in electricity demand over 10 minutes after everyone finished clapping for healthcare workers and went about the rest of their evenings.”

Climate Change AI workshop panelists also discussed the impact machine learning could have on improving electricity planning in Africa. The Electricity Growth and Use in Developing Economies (e-Guide) initiative funded by fossil fuel philanthropic organization the Rockefeller Foundation aims to use data to improve the planning and operation of electricity systems in developing countries.

E-Guide members Nathan Williams, an assistant professor at the Rochester Institute of Technology (RIT) in New York state, and Simone Fobi, a PhD student at Columbia University in NYC, spoke about their work at the Climate Change AI workshop, which closed on Thursday. Williams emphasized the importance of demand prediction, saying: “Uncertainty around current and future electricity consumption leads to inefficient planning. The weak link for energy planning tools is the poor quality of demand data.”

Fobi said: “We are trying to use machine learning to make use of lower-quality data and still be able to make strong predictions.”

The market maturity of individual solar home systems and PV mini-grids in Africa mean more complex electrification plan modeling is required, similar to integrating AI data centers into Canada's grids at scale.

 

Modeling

“When we are doing [electricity] access planning, we are trying to figure out where the demand will be and how much demand will exist so we can propose the right technology,” added Fobi. “This makes demand estimation crucial to efficient planning.”

Unlike many traditional modeling approaches, machine learning is scalable and transferable. Rochester’s Williams has been using data from nations such as Kenya, which are more advanced in their electrification efforts, to train machine learning models to make predictions to guide electrification efforts in countries which are not as far down the track.

Williams also discussed work being undertaken by e-Guide members at the Colorado School of Mines, which uses nighttime satellite imagery and machine learning to assess the reliability of grid infrastructure in India, where new algorithms to prevent ransomware-induced blackouts are also advancing.

 

Rural power

Another e-Guide project, led by Jay Taneja at the University of Massachusetts, Amherst – and co-funded by the Energy and Economic Growth program on development spending based at Berkeley – uses satellite imagery to identify productive uses of electricity in rural areas by detecting pollution signals from diesel irrigation pumps.

Though good quality data is often not readily available for Africa, Williams added, it does exist.

“We have spent years developing trusting relationships with utilities,” said the RIT academic. “Once our partners realize the value proposition we can offer, they are enthusiastic about sharing their data … We can’t do machine learning without high-quality data and this requires that organizations can effectively collect, organize, store and work with data. Data can transform the electricity sector, as shown by Canadian projects to use AI for energy savings, but capacity building is crucial.”

 

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Canadian Manufacturers and Exporters Congratulates the Ontario Government for Taking Steps to Reduce Electricity Prices

Ontario Global Adjustment Deferral offers COVID-19 electricity bill relief to industrial and commercial consumers not on the RPP, aligning GA to March levels for Class A and Class B manufacturers to improve cash flow.

 

Key Points

A temporary GA deferral easing electricity costs for Ontario industrial and commercial users not on the RPP.

✅ Sets Class B GA at $115/MWh; Class A gets equal percentage cut.

✅ Applies April-June 2020; automatic bill adjustments and credits.

✅ Deferred charges repaid over 12 months starting January 2021.

 

Manufacturers welcome the Government of Ontario's decision to defer a portion of Global Adjustment (GA) charges as part of support for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan.

"Manufacturers are pleased the government listened to Canadian Manufacturers & Exporters (CME) member recommendations and is taking action to reduce Ontario electricity bills immediately," said Dennis Darby, President & CEO of CME.

"The majority of manufacturers have identified cash flow as their top concern during the crisis, "added Darby. "The GA system would have caused a nearly $2 billion cost surge to Ontario manufacturers this year. This new initiative by the government is on top of the billions in support already provided to help manufacturers weather this unprecedented storm, while other provinces accelerate British Columbia's clean energy shift to drive long-term competitiveness. All these measures are a great start in helping businesses of all sizes stay afloat during the crisis and, keeping Ontarians employed."

"We call on the Ontario government to continue to consider the impact of electricity costs on the manufacturing sector, even after the COVID-19 crisis is resolved," stated Darby. "High prices are putting Ontario manufacturers at a significant competitive disadvantage and, discourages investments." A recent report from London Economics International (LEI) found that when compared to jurisdictions with similar manufacturing industries, Ontario's electricity prices can be up to 75% more expensive, underscoring the importance of planning for Toronto's growing electricity needs to maintain affordability.

To provide companies with temporary immediate relief on their electricity bills, the Ontario government is deferring a portion of Global Adjustment (GA) charges for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan (RPP), starting from April 2020, as some regions saw reduced electricity demand from widespread remote work during the pandemic. The GA rate for smaller industrial and commercial consumers (i.e., Class B) has been set at $115 per megawatt-hour, which is roughly in line with the March 2020 value. Large industrial and commercial consumers (i.e., Class A) will receive the same percentage reduction in GA charges as Class B consumers.

The Ontario government intends to keep this relief in place through the end of June 2020, alongside investments like smart grid technology in Sault Ste. Marie to support reliability, subject to necessary extensions and approvals to implement this initiative.

Industrial and commercial electricity consumers will automatically see this relief reflected on their bills. Consumers who have already received their April bill should see an adjustment on a future bill.

Related initiatives include developing cyber standards for electricity sector IoT devices to strengthen system security.

The government intends to bring forward subsequent amendments that would, if approved, recover the deferred GA charges (excluding interest) from industrial and commercial electricity consumers, as Toronto prepares for a surge in electricity demand amid continued growth, over a 12-month period beginning in January 2021.

 

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Hydro One reports $1.1B Q2 profit boosted by one-time gain due to court ruling

Hydro One Q2 Earnings surge on a one-time gain from a court ruling on a deferred tax asset, lifting profit, revenue, and adjusted EPS at Ontario's largest utility regulated by the Ontario Energy Board.

 

Key Points

Hydro One Q2 earnings jumped on an $867M court gain, with revenue at $1.67B and adjusted EPS improving to $0.39.

✅ One-time gain: $867M from tax appeal ruling.

✅ Revenue: $1.67B vs $1.41B last year.

✅ Adjusted EPS: $0.39 vs $0.26.

 

Hydro One Ltd., following the Peterborough Distribution sale transaction closing, reported a second-quarter profit of $1.1 billion, boosted by a one-time gain related to a court decision.

The power utility says it saw a one-time gain of $867 million in the quarter due to an Ontario court ruling on a deferred tax asset appeal that set aside an Ontario Energy Board decision earlier.

Hydro One says the profit amounted to $1.84 per share for the quarter ended June 30, amid investor concerns about uncertainties, up from $155 million or 26 cents per share a year earlier.

Shares also moved lower after the Ontario government announced leadership changes, as seen when Hydro One shares fell on the news in prior trading.

On an adjusted basis, it says it earned 39 cents per share for the quarter, despite earlier profit plunge headlines, up from an adjusted profit of 26 cents per share in the same quarter last year.

Revenue totalled $1.67 billion, up from $1.41 billion in the second quarter of 2019, while other Canadian utilities like Manitoba Hydro face heavy debt burdens.

Hydro One is Ontario’s largest electricity transmission and distribution provider, and its CEO compensation has drawn scrutiny in the province.

 

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Power Demand Seen Holding Firm In Europe’s Latest Lockdown

European Power Demand During Second Lockdowns remains resilient as winter heating offsets commercial losses; electricity consumption tracks seasonal norms, with weather sensitivity, industrial activity, natural gas shielding, and coal decline shaping dynamics under COVID-19 restrictions.

 

Key Points

It is expected to remain near seasonal norms, driven by heating, industry activity, and weather sensitive consumption.

✅ Winter heating offsets retail and hospitality closures

✅ Demand sensitivity rises with colder weather in France

✅ Gas generation shielded; coal likely to curtail first

 

European power demand is likely to hold up in the second round of national lockdown restrictions, with fluctuations most likely driven by changes in the weather.

Traders and analysts expect normal consumption this time around as home heating during the chilly season replaces commercial demand.

Last week electricity consumption in France, Germany and the U.K. was close to business-as-usual levels for the time of year, according to BloombergNEF data. By contrast, power demand had dropped 16% in the first seven days of the springtime lockdown, as reflected by the U.K.’s 10% daily decline reported then.

How power demand performs has significance outside the sector. It’s often seen as a proxy for economic growth and during lockdowns earlier this year, electricity use slumped along with GDP, and stunted hydro and nuclear output could further hobble recovery. For Western Europe, annual demand is expected to be 5% lower than the previous year, a bigger decline than after the global financial crisis in 2008, according to S&P Global Platts.

The Covid-19 limits are lighter than those from earlier in the year “with an explicit drive to preserve economic activity, particularly at the more energy-intensive industrial end of the spectrum,” said Glenn Rickson, head of European power analysis at S&P Global Platts.

Higher levels of working from home will offset some of the losses from shop and hospitality closures, “but also increase the temperature sensitivity of overall gas and power demand, as heat-driven demand records have shown in recent summers,” he said.

The latest wave of national lockdowns began in France, Germany, Spain, Italy and Britain, with Spain having seen April demand plummet earlier in the year, as coronavirus cases surged and officials struggled to keep the spread of the virus under control.

Much of the manufacturing industry remains working for now despite additional restrictions to contain the coronavirus. With the peak of the second wave yet to be reached, “it seems almost inevitable that the fourth quarter will prove economically challenging,” analysts at Alfa Energy said.

There will initially be significantly less of an impact on demand compared with this spring when global daily demand dipped about 15% and electricity consumption in Europe was down 30%, Johan Sigvardsson, power price analyst at Swedish utility Bixia AB said.

The prevalence of electric heating systems in France means that power demand is particularly sensitive to cold weather. A cold spell would significantly boost demand and drive record electricity prices in tight markets.

Similar to the last round of shutdowns, it’s use of coal that will probably be hit first if power demand sags, as transition-focused responses gather pace, leaving natural gas mostly shielded from fluctuations in the market.

“We expect that another drop in power demand would again impact coal-fired generation and shield gas power to some extent,” said Carlos Torres Diaz, an analyst at Rystad Energy.

 

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Tesla Electric is preparing to expand in the UK

Tesla Electric UK Expansion signals retail energy entry, leveraging Powerwall VPPs for grid services, dynamic pricing, and energy trading, building on Texas success and Octopus Energy ties to buy and sell electricity automatically.

 

Key Points

Tesla's plan to launch Tesla Electric in the UK, using Powerwall VPPs to retail energy, trade power, and hedge peaks.

✅ Retail energy model built on Powerwall VPP aggregation

✅ Automated buy-sell arbitrage with dynamic pricing

✅ Leverages prior UK approval and Octopus Energy ties

 

According to a new job posting, Tesla Electric, Tesla’s new electric utility division, is preparing to expand in the United Kingdom as regions such as California grid planners look to electric vehicles for stability to manage demand.

Late last year, after gaining experience through its virtual power plants (VPPs), including response during California blackouts that pressured the grid, Tesla took things a step further with the launch of “Tesla Electric.”

Instead of reacting to specific “events” and providing services to your local electric utilities through demand response programs, as Tesla Powerwall owners have done in VPPs in California, Tesla Electric is actively and automatically buying and selling electricity for Tesla Powerwall owners – providing a buffer against peak prices.

The company is essentially becoming an energy retailer, aligning with a major future for its energy business envisioned by leadership.

Tesla Electric is currently only available to Powerwall owners in Texas, but the company has plans to expand its products through this new division.

We recently reported on Tesla Electric customers in Texas making as much as $150 a day selling electricity back to the grid through the program.

Now Tesla is looking to expand Tesla Electric to the UK, where grid capacity for rising EV demand remains a key consideration.

The company has listed a new job posting for a role called “Head of Operations, Tesla Electric – Retail Energy.”

This has been in the works for a while now. Tesla used to have a partnership with Octopus Energy in the UK for special electricity rates for its owners, during a period when UK EV inquiries surged amid a fuel supply crisis, but it seemed to be a stepping stone before it would itself become an energy provider in the market.

In 2020, Tesla was officially approved as an electricity retailer in the UK. Now it looks like Tesla is going to use this approval with the launch of Tesla Electric.
 

 

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Economic Crossroads: Bank Earnings, EV Tariffs, and Algoma Steel

Canada Economic Crossroads highlights bank earnings trends, interest rates, loan delinquencies, EV tariffs on Chinese imports, domestic manufacturing, Algoma Steel decarbonization, sustainability, and housing market risks shaping growth, investment, consumer prices, and climate policy.

 

Key Points

An overview of how bank earnings, EV tariffs, and Algoma Steel's transition shape Canada's economy.

✅ Higher rates lift margins but raise delinquencies and housing risks

✅ EV tariffs aid domestic makers but pressure consumer prices

✅ Algoma invests to decarbonize, boosting efficiency and compliance

 

In a complex economic landscape, recent developments have brought attention to several pivotal issues affecting Canada's business sector. The Globe and Mail’s latest report delves into three major topics: the latest bank earnings, the implications of new tariffs on Chinese electric vehicles (EVs), and Algoma Steel’s strategic maneuvers. These factors collectively paint a picture of the challenges and opportunities facing Canada's economy.

Bank Earnings Reflect Economic Uncertainty

The recent financial reports from major Canadian banks have revealed a mixed picture of the nation’s economic health. As the Globe and Mail reports, earnings results show robust performances in some areas while highlighting growing concerns in others. Banks have generally posted strong quarterly results, buoyed by higher interest rates which have improved their net interest margins. This uptick is largely attributed to the central bank's monetary policies aimed at combating inflation and stabilizing the economy.

However, the positive earnings are tempered by underlying economic uncertainties. Rising loan delinquencies and a slowing housing market are areas of concern. Increased interest rates, while beneficial for banks’ margins, have also led to higher borrowing costs for consumers and businesses. This dynamic has the potential to impact overall economic growth and consumer confidence.

Tariffs on Chinese EVs: A Strategic Shift

Another significant development is the imposition of new tariffs on Chinese electric vehicles. This move is part of a broader strategy to protect domestic automotive industries and address trade imbalances, aligning with public support for tariffs in key sectors. The tariffs are expected to increase the cost of Chinese EVs in Canada, which could have several implications for the market.

On one hand, the tariffs might provide a temporary boost to Canadian and North American manufacturers by reducing competition from lower-priced Chinese imports. This protectionist measure could encourage investments in local production and innovation, mirroring tariff threats boosting support for energy projects in other sectors. However, the increased cost of Chinese EVs may also lead to higher prices for consumers, potentially slowing the adoption of electric vehicles—a critical goal in Canada’s climate strategy.

The tariffs come at a time when the Canadian government is keen on accelerating the transition to electric mobility to meet its environmental targets, even as a critical crunch in electrical supply raises questions about grid readiness. Balancing the protection of domestic industries with the broader goal of reducing emissions will be a significant challenge moving forward.

Algoma Steel’s Strategic Evolution

In the steel industry, Algoma Steel has been making headlines with its strategic initiatives aimed at transforming its operations, in a broader shift toward clean grids and industrial decarbonization. The Globe and Mail highlights Algoma Steel's efforts to modernize its production processes and shift towards more sustainable practices. This includes significant investments in technology and infrastructure to enhance production efficiency and reduce environmental impact.

Algoma's focus on reducing carbon emissions aligns with broader industry trends towards sustainability. The company’s efforts are part of a larger push within the steel sector to address climate change and meet regulatory requirements. As one of Canada’s leading steel producers, Algoma’s actions could set a precedent for the industry, showcasing how traditional manufacturing sectors can adapt to evolving environmental standards.

Implications and Future Outlook

The interplay of these developments reflects a period of significant transition for Canada's economy, shaped in part by U.S. policy where Biden is seen as better for Canada's energy sector by some analysts. For banks, the challenge will be to navigate the balance between profitability and potential risks from a changing economic environment. The new tariffs on Chinese EVs represent a strategic shift with mixed implications for the automotive market, potentially influencing both domestic production and consumer prices. Meanwhile, Algoma Steel’s push towards sustainability could serve as a model for other industries seeking to align with environmental goals.

As these issues unfold, stakeholders across sectors will need to stay informed and adaptable. For policymakers, the challenge will be to support domestic industries while fostering innovation and sustainability, including the dilemma over electricity rates and innovation they must weigh. For businesses, the focus will be on navigating financial pressures and leveraging opportunities for growth. Consumers, in turn, will face the impact of these developments in their daily lives, from the cost of borrowing to the price of electric vehicles.

In summary, Canada’s current economic landscape is characterized by a blend of financial resilience, strategic adjustments, and evolving industry practices, amid policy volatility such as a tariff threat delaying Quebec's green energy bill earlier this year. As the country navigates these crossroads, the outcomes of these developments will play a crucial role in shaping the future economic environment.

 

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