U.S. carbon rules could slam door on new coal plants

By Reuters


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The Obama administration is expected soon to unveil long-delayed rules limiting carbon emissions from new coal-fired power stations, possibly helping to slam the door shut well into the future on building plants that run on the fuel.

The Environmental Protection Agency has dragged its feet on proposing the new standards on carbon emissions that would hit new coal plants or facilities undergoing expansion.

The short-term impact of the rules, the first to limit U.S. carbon emissions from new power stations, is expected to be symbolic -- the rules will not tackle existing plants, which would have been far more disruptive to the industry.

But in the long run it could set the stage for rules that take on such cuts.

"The proposed rule is certainly expected to send the message that coal is dead," said Christine Tezak, an energy policy analyst at wealth management company Robert W. Baird & Co.

Republicans sharply oppose a raft of clean-air initiatives from the EPA and are keen to take the argument on the campaign trail for this year's presidential election that the initiatives kill jobs and saddle businesses with onerous costs.

The longer the administration delays, the less likely the rules will be finalized before November's vote and the greater the chances they could be overturned if President Barack Obama loses.

But EPA chief Lisa Jackson, whose mantra is smart rules can protect the environment, human health and the economy, says the carbon plan will be out early this year.

The delay on the carbon rules is simply to work out the kinks so they are not too costly on power companies, said administration sources, who asked not to be identified.

U.S. states and environmentalists who have sued the EPA in the past to speed up the carbon rules also expect to see the proposal soon. "It's our expectation that the rules for greenhouse gas emissions from new power plants will be issued this month," said Mike Myers, a New York state government lawyer involved in talks with the EPA.

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Texas produces and consumes the most electricity in the US

Texas ERCOT Power Grid leads U.S. wind generation yet faces isolated interconnection, FERC exemption, and high industrial energy use, with distinct electricity and natural gas prices managed by a single balancing authority.

 

Key Points

The state-run interconnection that balances Texas electricity, isolated from FERC oversight and other U.S. grids.

✅ Largest U.S. wind power producer, high industrial demand

✅ Operates one balancing authority, independent interconnection

✅ Pays lower electricity, higher natural gas vs national average

 

For nearly two decades, the Lone Star State has generated more wind-sourced electricity than any other state in the U.S., according to the Energy Information Administration, or EIA.

In 2022, EIA reported Texas produced more electricity than any other state and generated twice as much as second-place Florida.

However, Texas also leads the country in another category. According to EIA, Texas is the largest energy-consuming state in the nation across all sectors with more than half of the state’s energy being used by the industrial sector.

As of May 2023, Texas residents paid 43% more for natural gas and around 10% less for electricity compared to the national average, according to EIA, and in competitive areas shopping for electricity is getting cheaper as well. Commercial and industrial sectors on average for the same month paid 25% less for electricity compared to the national average.


U.S. electric system compared to Texas
The U.S. electric system is essentially split into three regions called interconnections and are managed by a total of 74 entities called balancing authorities that ensure that power supply and demand are balanced throughout the region to prevent the possibility of blackouts, according to EIA.

The three regions (Interconnections):

Eastern Interconnection: Covers all U.S. states east of the Rocky Mountains, a portion of northern Texas, and consists of 36 balancing authorities.
Western Interconnection: Covers all U.S. states west of the Rockies and consists of 37 balancing authorities.
ERCOT: Covers the majority of Texas and consists of one balancing authority (itself).

During the 2021 winter storm, Texas electric cooperatives were credited with helping maintain service in many communities.

“ERCOT is unique in that the balancing authority, interconnection, and the regional transmission organization are all the same entity and physical system,” according to EIA, a structure often discussed in analyses of Texas power grid challenges today.

With this being the case, Texas is the only state in the U.S. that balances itself, the only state that is not subject to the jurisdiction of the Federal Energy Regulatory Commission, or FERC, and the only state that is not synchronously interconnected to the grid in the rest of the United States in the event of tight grid conditions, highlighting ongoing discussions about improving Texas grid reliability before peak seasons, according to EIA.

Every other state in the U.S. is connected to a web of multiple balancing authorities that contribute to ensuring power supply and demand are met.

California, for example, was the fourth largest electricity producer and the third largest electricity consumer in the nation in 2022, according to EIA, and California imports the most electricity from other states while Pennsylvania exports the most.

Although California produces significantly less electricity than Texas, it has the ability to connect with more than 10 neighboring balancing authorities within the Western Interconnection to interchange electricity, a dynamic that can see clean states importing dirty electricity under certain market conditions. ERCOT being independent only has electricity interchange with two balancing authorities, one of which is in Mexico.

Regardless of Texas’ unique power structure compared to the rest of the nation, the vast majority of the U.S. risked electricity supplies during this summer’s high heat, as outlined in severe heat blackout risks reports, according to EIA.

 

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American Households Struggle with Sky-High Energy Bills During Extreme Summer Heat

US Summer Energy Bills Crisis is driven by record heatwaves, soaring electricity prices, AC cooling demand, energy poverty risks, and LIHEAP relief, straining low-income households, vulnerable seniors, and budgets amid volatile utilities and peak demand.

 

Key Points

Rising household energy costs from extreme heat, higher electricity prices, and AC demand, straining vulnerable families.

✅ Record heatwaves drive peak electricity and cooling loads

✅ Tiered rates and volatile markets inflate utility bills

✅ LIHEAP aid and cooling centers offer short-term relief

 

As the sweltering heat of summer continues to grip much of the United States, American households are grappling with a staggering rise in energy bills. The combination of record-breaking temperatures and rising electricity prices is placing an unprecedented financial strain on families, raising concerns about the long-term impact on household budgets and overall well-being.

Record Heat and Energy Consumption

This summer has witnessed some of the hottest temperatures on record across the country. With many regions experiencing prolonged heatwaves, the demand for air conditioning and cooling systems has surged amid unprecedented electricity demand across parts of the U.S. The increased use of these energy-intensive appliances has led to a sharp rise in electricity consumption, which, combined with elevated energy prices, has pushed household energy bills to new heights.

The situation is particularly dire for households that are already struggling financially. Many families are facing energy bills that are not only higher than usual but are reaching levels that are unsustainable, underscoring electricity struggles for thousands of families across the country. This has prompted concerns about the potential for energy poverty, where individuals are forced to make difficult choices between paying for essential services and covering other necessary expenses.

Impact on Low-Income and Vulnerable Households

Low-income households and vulnerable populations are disproportionately affected by these soaring energy costs. For many, the financial burden of high energy bills is compounded by energy insecurity during the pandemic and other economic pressures, such as rising food prices and stagnant wages. The strain of paying for electricity during extreme heat can lead to tough decisions, including cutting back on other essential needs like healthcare or education.

Moreover, the heat itself poses a serious health risk, particularly for the elderly, children, and individuals with pre-existing health conditions. High temperatures can exacerbate conditions such as cardiovascular and respiratory illnesses, making the need for reliable cooling even more critical. For those struggling to afford adequate cooling, the risk of heat-related illnesses and fatalities increases significantly.

Utilities and Energy Pricing

The sharp rise in energy bills can be attributed to several factors, including higher costs of electricity production and distribution. The ongoing transition to cleaner energy sources, while necessary for long-term environmental sustainability, has introduced short-term volatility in energy markets. Additionally, power-company supply chain crises and increased demand during peak summer months have contributed to higher prices.

Utilities are often criticized for their pricing structures, which can be complex and opaque. Some regions, including areas where California electricity bills soar under scrutiny, use tiered pricing models that charge higher rates as energy consumption increases. This can disproportionately impact households that need to use more energy during extreme heat, further exacerbating financial strain.

Government and Community Response

In response to the crisis, various government and community initiatives are being rolled out to provide relief. Federal and state programs aimed at assisting low-income households with energy costs are being expanded. These programs, such as the Low-Income Home Energy Assistance Program (LIHEAP), offer financial assistance to help with utility bills, but demand often outstrips available resources.

Local community organizations are also stepping in to offer support. Initiatives include distributing fans and portable air conditioners, providing temporary cooling centers, and offering financial assistance to help cover energy costs. These efforts are crucial in helping to mitigate the immediate impact of high energy bills on vulnerable households.

Long-Term Solutions and Sustainability

The current crisis highlights the need for long-term solutions to address both the causes and consequences of high energy costs. Investing in energy efficiency and renewable energy technologies can help reduce the overall demand for electricity and lower long-term costs. Improvements in building insulation, the adoption of energy-efficient appliances, and advancements in smart grid technologies to prevent summer power outages are all essential components of a sustainable energy future.

Furthermore, addressing income inequality and supporting economic stability are critical to ensuring that all households can manage their energy needs without facing financial hardship. Policymakers will need to consider a range of strategies, including financial support programs, regulatory reforms, and infrastructure investments, to create a more equitable and resilient energy system.

Conclusion

As American households endure the double burden of extreme summer heat and skyrocketing energy bills, the need for immediate relief and long-term solutions has never been clearer. The current crisis serves as a reminder of the broader challenges facing the nation’s energy system and the importance of addressing both short-term needs and long-term sustainability. By investing in efficient technologies, supporting vulnerable populations, and developing resilient infrastructure, the U.S. can work towards a future where energy costs are manageable, and everyone has access to the resources they need to stay safe and comfortable.

 

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Europe to Weigh Emergency Measures to Limit Electricity Prices

EU Electricity Price Limits are proposed by the European Commission to curb contagion from gas prices, bolster energy security, stabilize the power market, and manage inflation via LNG imports, gas storage, and reduced demand.

 

Key Points

Temporary power-price caps to curb gas contagion, shield consumers, and bolster EU energy security.

✅ Limits decouple electricity from volatile gas benchmarks

✅ Short-term LNG imports and storage to enhance supply security

✅ Market design reforms and demand reduction to tame prices

 

The European Union should consider emergency measures in the coming weeks that could include price cap strategies on electricity prices, European Commission President Ursula von der Leyen told leaders at an EU summit in Versailles.

The reference to the possible measures was contained in a slide deck Ms. von der Leyen used to discuss efforts to curb the EU’s reliance on Russian energy imports, which last year accounted for about 40% of its natural-gas consumption. The slides were posted to Ms. von der Leyen’s Twitter account.

Russia’s invasion of Ukraine has highlighted the vulnerability of Europe’s energy supplies to severe supply disruptions and raised fears that imports could be cut off by Moscow or because of damage to pipelines that run across Ukraine. It has also driven energy prices up sharply, contributing to worries about inflation and economic growth.

Earlier this week, the European Commission, the EU’s executive arm, published the outline of a plan that it said could cut imports of Russian natural gas by two-thirds this year and end the need for those imports entirely before 2030, aligning with calls to ditch fossil fuels in Europe. In the short-term, the plan relies largely on storing natural gas ahead of next winter’s heating season, reducing consumption and boosting imports of liquefied natural gas from other producers.

The Commission acknowledged in its report that high energy prices are rippling through the economy, even as European gas prices have fallen back toward pre-war levels, raising manufacturing costs for energy-intensive businesses and putting pressure on low-income households. It said it would consult “as a matter of urgency” and propose options for dealing with high prices.

The slide deck used by Ms. von der Leyen on Thursday said the Commission plans by the end of March to present emergency options “to limit the contagion effect of gas prices in electricity prices, including temporary price limits, even though rolling back electricity prices can be complex under current market rules.” It also intends this month to set up a task force to prepare for next winter and a proposal for a gas storage policy.

By mid-May, the Commission will set out options to revamp the electricity market and issue a proposal for phasing out EU dependency on Russian fossil fuels by 2027, according to the slides.

French President Emmanuel Macron said Thursday that Europe needs to protect its citizens and companies from the increase in energy prices, adding that some countries, including France, have already taken some national measures.

“If this lasts, we will need to have a more long-lasting European mechanism,” he said. “We will give a mandate to the Commission so that by the end of the month we can get all the necessary legislation ready.”

The problem with price limits is that they reduce the incentive for people and businesses to consume less, said Daniel Gros, distinguished fellow at the Centre for European Policy Studies, a Brussels think tank. He said low-income families and perhaps some businesses will need help dealing with high prices, but that should come as a lump-sum payment that isn’t tied to how much energy they are consuming.

“The key will be to let the price signal work,” Mr. Gros said in a paper published this week, which argued that high energy prices could result in lower demand in Europe and Asia, reducing the need for Russian natural gas. “Energy must be expensive so that people save energy,” he said.

Ms. von der Leyen’s slides suggest the EU hopes to replace 60 billion cubic meters of Russian gas with alternative suppliers, including suppliers of liquefied natural gas, by the end of this year. Another 27 billion cubic meters could be replaced through a combination of hydrogen and EU production of biomethane, according to the slide deck.

 

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In 2021, 40% Of The Electricity Produced In The United States Was Derived From Non-Fossil Fuel Sources

Renewable Electricity Generation is accelerating the shift from fossil fuels, as wind, solar, and hydro boost the electric power sector, lowering emissions and overtaking nuclear while displacing coal and natural gas in the U.S. grid.

 

Key Points

Renewable electricity generation is power from non-fossil sources like wind, solar, and hydro to cut emissions.

✅ Driven by wind, solar, and hydro adoption

✅ Reduces fossil fuel dependence and emissions

✅ Increasing share in the electric power sector

 

The transition to electric vehicles is largely driven by a need to reduce our reliance on fossil fuels and reduce emissions associated with burning fossil fuels, while declining US electricity use also shapes demand trends in the power sector. In 2021, 40% of the electricity produced by the electric power sector was derived from non-fossil fuel sources.

Since 2007, the increase in non-fossil fuel sources has been largely driven by “Other Renewables” which is predominantly wind and solar. This has resulted in renewables (including hydroelectric) overtaking nuclear power’s share of electricity generation in 2021 for the first time since 1984. An increasing share of electricity generation from renewables has also led to a declining share of electricity from fossil fuel sources like coal, natural gas, and petroleum, with renewables poised to eclipse coal globally as deployment accelerates.

Includes net generation of electricity from the electric power sector only, and monthly totals can fluctuate, as seen when January power generation jumped on a year-over-year basis.

Net generation of electricity is gross generation less the electrical energy consumed at the generating station(s) for station service or auxiliaries, and the projected mix of sources is sensitive to policies and natural gas prices over time. Electricity for pumping at pumped-storage plants is considered electricity for station service and is deducted from gross generation.

“Natural Gas” includes blast furnace gas and other manufactured and waste gases derived from fossil fuels, while in the UK wind generation exceeded coal for the first time in 2016.

“Other Renewables” includes wood, waste, geo-thermal, solar and wind resources among others.

“Other” category includes batteries, chemicals, hydrogen, pitch, purchased steam, sulfur, miscellaneous technologies, and, beginning in 2001, non-renewable waste (municipal solid waste from non-biogenic sources, and tire-derived fuels), noting that trends vary by country, with UK low-carbon generation stalling in 2019.

 

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Demise of nuclear plant plans ‘devastating’ to Welsh economy, MP claims

Wylfa Nuclear Project Cancellation reflects Hitachi's withdrawal, pulling £16bn from North Wales, risking jobs, reshaping UK nuclear power plans as renewables grow and Chinese involvement rises amid shifting energy market policies.

 

Key Points

An indefinite halt to Hitachi's Wylfa Newydd nuclear plant, removing about £16bn investment and jobs from North Wales.

✅ Hitachi withdraws funding amid changing energy market costs

✅ Puts 400 local roles and up to 10,000 construction jobs at risk

✅ UK shifts toward renewables as nuclear project support stalls

 

Chris Ruane said Japanese firm Hitachi’s announcement this morning about the Wylfa project would take £16 billion of investment out of the region.

He said it was the latest in a list of energy projects which had been scrapped as he responded to a statement from business secretary Greg Clark.

Mr Ruane, the Labour member for the Vale of Clywd, said: “In his statement he said the Government are relying now more on renewables, can I put the North Wales picture to him; 1,500 wind turbines were planned off the coast of North Wales. They were removed, those plans were cancelled by the private sector.

“The tidal lagoons for Wales were key to the development of the Welsh economy – the Government itself pulled the support for the Swansea Bay tidal lagoon. That had a knock-on effect for the huge lagoon planned off the coast of North Wales.

“And now today we hear of the cancellation of a £16 billion investment in the North Wales economy. This will devastate the North Wales economy. The people of North Wales need to know that the Prime Minister is batting for them and batting for the UK.”

Mr Clark blamed the changing landscape of the energy market for today’s announcement, and said Wales has been a “substantial and proud leader” in renewable energy during the UK’s green industrial revolution over recent years.

But another Labour MP from North Wales, Albert Owen, of Ynys Mon, said the Wylfa plant’s cancellation in his constituency is putting 400 jobs at risk, as well as the “potential of 8-10,000 construction jobs”, as well as hundreds of operational jobs and 33 apprenticeships.

He asked Mr Clark: “Can I say straightly can we work together to keep this project alive, to ensure that we create the momentum so it can be ready for a future developer or this developer with the right mechanism?”

The minister replied that he and his officials would “work together in a completely open-book way on the options” to try and salvage the project.

But in the Lords, Labour former security minister Lord West of Spithead said the UK’s nuclear industry was in crisis, noting that Europe is losing nuclear power as well.

“In the 1950s our nation led the world in nuclear power generation and decisions by successive governments, of all hues, have got us in the position today where we cannot even construct a large civil nuclear reaction,” he told peers at question time.

Lord West asked: “Are we content that now the only player seems to be Chinese and that by 2035… we are happy for the Chinese to control one third of the energy supply of our nation?”

Business, Energy and Industrial Strategy minister Lord Henley said the Government had hoped for a better announcement from Hitachi but that was not the case.

He said costs in the nuclear sector were rising, amid setbacks at Hinkley Point C, while costs for many renewables were coming down and this was one of the reasons for the problem.

Tory former energy secretary Lord Howell of Guildford said the Chinese were in “pole position” for the rebuilding and replacement “of our nuclear fleet” and this would have a major impact on UK energy policy and plans to meet net zero targets in the 2030s.

Plaid Cymru’s Lord Wigley warned that putting the Wylfa Newydd on indefinite hold would cause economic planning blight in north-west Wales and urged the Government to raise the level of support allocated to the region.

Lord Henley acknowledged the announcement was not welcome but added: “We remain committed to nuclear power. We will look to see what we can do. We still have a great deal of expertise in this country and we can work on that.”

 

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DOE Announces $28M Award for Wind Energy

DOE Wind Energy Funding backs 13 R&D projects advancing offshore wind, distributed energy, and utility-scale turbines, including microgrids, battery storage, nacelle and blade testing, tall towers, and rural grid integration across the United States.

 

Key Points

DOE Wind Energy Funding is a $28M R&D effort in offshore, distributed, and utility-scale wind to lower cost and risk.

✅ $6M for rural microgrids, storage, and grid integration.

✅ $7M for offshore R&D, nacelle and long-blade testing.

✅ Up to $10M demos; $5M for tall tower technology.

 

The U.S. Department of Energy announced that in order to advance wind energy in the U.S., 13 projects have been selected to receive $28 million. Project topics focus on technology development while covering distributed, offshore wind growth and utility-scale wind found on land.

The selections were announced by the DOE’s Assistant Secretary for the Office of Energy Efficiency and Renewable Energy, Daniel R. Simmons, at the American Wind Energy Association Offshore Windpower Conference in Boston, as New York's offshore project momentum grows nationwide.

 

Wind Project Awards

According to the DOE, four Wind Innovations for Rural Economic Development projects will receive a total of $6 million to go toward supporting rural utilities via facilitating research drawing on U.K. wind lessons for deployment that will allow wind projects to integrate with other distributed energy resources.

These endeavors include:

Bergey WindPower (Norman, Oklahoma) working on developing a standardized distributed wind/battery/generator micro-grid system for rural utilities;

Electric Power Research Institute (Palo Alto, California) working on developing modeling and operations for wind energy and battery storage technologies, as large-scale projects in New York progress, that can both help boost wind energy and facilitate rural grid stability;

Iowa State University (Ames, Iowa) working on optimization models and control algorithms to help rural utilities balance wind and other energy resources; and

The National Rural Electric Cooperative Association (Arlington, Virginia) providing the development of standardized wind engineering options to help rural-area adoption of wind.

Another six projects are to receive a total of $7 million to facilitate research and development in offshore wind, as New York site investigations advance, with these projects including:

Clemson University (North Charleston, South Carolina) improving offshore-scale wind turbine nacelle testing via a “hardware-in-the-loop capability enabling concurrent mechanical, electrical and controller testing on the 7.5-megawatt dynamometer at its Wind Turbine Drivetrain Testing Facility to accelerate 1 GW on the grid progress”; and

The Massachusetts Clean Energy Center (Boston) upgrading its Wind Technology Testing Center to facilitate structural testing of 85- to 120-meter-long (roughly 278- to 393-foot-long) blades, as BOEM lease requests expand, among other projects.

Additionally, two offshore wind technology demonstration projects will receive up to $10 million for developing initiatives connected to reducing wind energy risk and cost. One last project will also be granted $5 million for the development of tall tower technology that can help overcome restrictions associated with transportation.

“These projects will be instrumental in driving down technology costs and increasing consumer options for wind across the United States as part of our comprehensive energy portfolio,” said Simmons.

 

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