Megaproject

RENEWABLE ENERGY WORLD NEWS

With Texas Facing Soaring Electricity Demand, The Politics Of Energy Quietly Shift At The CapitolBy Kayla Guo, The Texas Tribune “With Texas facing soaring electricity demand, the politics of energy quietly shift at the Capitol” was first published by The Texas Tribune, a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues. Sign up for The Brief, The Texas Tribune’s daily newsletter that keeps readers up to speed on the most essential Texas news. Four years ago, after all electricity sources struggled to keep Texans’ lights on during Winter Storm Uri, the state’s top Republican leaders singled out solar and wind energy for scorn as they worked to goose natural gas-powered generation. After decades of growth in solar and wind put Texas among the nation’s top producers of renewable energy, the state’s leaders turned against renewables as they began to compete more fiercely with coal and gas-fueled power. At the same time, anti-renewables rhetoric swelled nationally as well as part of a broader fight over combating climate change — which climate scientists say has led to more severe weather in Texas and increased risks to life and property. But with this year’s legislative session underway, the political tides around energy are quietly turning in the country’s biggest oil and gas state. Texas faces a massive surge in demand for electricity due to an increase of large users like crypto mining facilities, in addition to population growth and more extreme weather. And policymakers are recognizing that in order to meet that demand, the state will need all the generation it can get — from every source. “Here in Texas, we believe in an ‘all-of-the-above’ energy approach,” Gov. Greg Abbott said in December, touting Texas as the fourth-largest oil producer in the world and the leading state for wind and large-scale solar generation. “We will increase capacity of our grid to ensure that every Texan has affordable, reliable power and unleash the full potential of Texas’ nuclear industry. And we will produce enough energy power on the grid to make sure that every home, every business and every location is going to have access to the power they need.” The recent expansion of renewable energy in Texas has helped stave off crises since the grid came close to catastrophic collapse in February 2021 when Uri plunged millions of Texans into darkness and left hundreds of people dead. Texas increased its energy supply by 35% over the last four years, Abbott said in his State of the State address in February. A whopping 92% of that new supply, according to energy consultant Doug Lewin, came from solar, wind and battery storage. Texas added more battery storage capacity than any other state last year, and, excluding California, now has more battery capacity than the rest of the country combined. The state installed around 9,700 megawatts of new solar generation last year and 1,735 megawatts of wind power, according to a January report by the Federal Reserve Bank of Dallas. Solar power and battery storage set records last summer, providing nearly 25% of electricity needs in the middle of the day, according to the Dallas Fed’s report. Texas also added 3,410 megawatts of gas-fueled power last year after losing 2,172 megawatts in 2023. The Electricity Reliability Council of Texas, the state’s main grid operator, estimates that 1 megawatt of electricity can power around 250 homes. These additions meant that ERCOT didn’t have to issue a single emergency alert last year during the sixth-hottest summer on record in Texas. In 2023, during the state’s second-hottest summer, ERCOT issued 11 alerts asking Texans to conserve energy. The grid also made it through several cold snaps this winter with plenty of supply on hand — though experts warn that solar plays a smaller role in meeting peak demand during the winter. Weatherization requirements the Public Utility Commission imposed on power plants after Winter Storm Uri also contributed to greater resiliency on the grid. On top of increased reliability, renewable energy resources saved Texas power consumers around $11 billion in the last two years, according to a report by IdeaSmiths LLC, an energy analytics firm, that was funded by pro-renewables trade groups. “These resources materially contribute to having enough power on the system and also being able to do it most affordably,” said Bryn Baker, senior director of policy innovation at the Texas Energy Buyers Alliance. “Being able to maintain the ability for all resources to play in the market is critical for Texas to maintain its energy leadership, as well as economic leadership.” Despite those gains, ERCOT predicts that Texas’ energy demand will nearly double by 2030, with power supply projected to fall short of peak demand in a worst-case scenario beginning in summer 2026. That surge in demand is being driven by population demand, more extreme heat and cold, and an influx of large power users, such as crypto mining facilities, artificial intelligence-related data centers and electrifying oil and gas field operations. State lawmakers have looked to boost natural gas-fueled generation — in 2023 they established the $5 billion Texas Energy Fund, which offers low-interest taxpayer funded loans to incentivize construction of new gas-powered plants. But those plants take years to build. New advanced nuclear technology at scale is also years away, even as the state’s top leaders throw their support behind the burgeoning industry. As a result, experts warned, Texas can’t afford to block any forms of generation, including renewables. “We’re going to need every megawatt that we can get, from every generation resource that we can get,” Michael Jewell, an energy attorney and expert, said. “Legislative proposals that would discourage the continued development of every resource — that’s anti-energy.” Renewable energy advocates hope that message is getting through to lawmakers as they grapple with how to meet soaring demand this legislative session. They emphasize that they are not against gas-fueled generation, and that Texas needs a mix of resources to grow its grid. “I think, and I hope, and I pray that the conversation has changed,” said Matthew Boms, executive director of the Texas Advanced Energy Business Alliance. “With those kind of numbers, the whole conversation changes from, ‘What should the mix look like?’ to a different conversation, which is how we’re going to meet all of this load growth.” Renewables proponents also point to the millions of dollars in tax revenue that solar, wind and battery storage projects funnel into local school districts and communities — many of them in the districts of key lawmakers. In House Speaker Dustin Burrows’ district — which includes parts of Lubbock and its surrounding counties — existing solar, wind and storage projects are projected to pay around $94 million in local tax revenues over their lifetimes, according to the IdeaSmiths report. The district of Sen. Charles Schwertner, R-Georgetown and chair of the Senate Business and Commerce Committee, is poised to see $499 million in local tax revenues from existing solar and storage projects. And Rep. Drew Darby, R-San Angelo and chair of the House Energy Resources Committee, represents a district expected to see $293 million in local tax revenues from renewable energy. Those dynamics — demand growth, the role of renewables and storage on the grid and the economic impacts of the industry — suggest that the Legislature may be less inclined to clamp down on solar and wind this year as lawmakers have tried to do in previous sessions. “We are actively exploring and promoting advanced technology, including small modular nuclear reactors, larger duration battery storage and geothermal energy,” Schwertner said at the ERCOT Market Summit last month. “These technologies and others offer unique advantages in providing stable, dispatchable power, and Texas is committed to leading in their deployment.” Still, anti-renewables sentiment has not gone away in the Capitol. “There’s certainly ideological opposition. It’s very serious,” Lewin said. “The Legislature walked right up to the edge of really kneecapping the renewable industry last session. I’m sure those discussions will be weighty this session — but I hope not.” Lawmakers have filed a number of bills that would restrict the development of renewable energy or favor natural gas generation in the energy market. For example, a proposal by state Sen. Lois Kolkhorst, R-Brenham — and co-sponsored by state Sen. Phil King, R-Weatherford, the vice chair of the Senate Business and Commerce Committee — aims to reduce the impact of wind and solar projects on residential neighbors and the local environment by imposing strict permitting and siting requirements and restricting tax abatements for those projects. The bill, Senate Bill 819, would not apply those standards to other energy facilities, such as natural gas or coal plants. A near-identical bill passed the Senate in 2023 but failed to advance in the House. Renewables advocates warned that the bill would sharply curtail new wind and solar development, unduly interfere with the energy market and step on the private property rights of landowners to lease their land out for energy projects. Senate Bill 388, filed by King, aims to offset the impact of federal incentives to build wind and solar projects by requiring 50% of new generation to be “dispatchable” — namely, natural gas and coal. Dispatchable generation can be turned on at any point and does not rely on intermittent resources like sun and wind. Lawmakers have emphasized a need for dispatchable resources to offer greater reliability when grid conditions are tight. But at least one lawmaker, in addition to industry trade groups, expressed skepticism at a Senate Business and Commerce Committee hearing Tuesday that the bill would effectively boost natural gas and increase reliability. The bill represents “a heavy-handed, prescriptive recipe for what the market should build,” Sen. Nathan Johnson, D-Dallas, said, “cutting off the investment and innovation that the private sector can bring to this market.” Mark Stover, executive director of the Texas Solar + Storage Association, testified to the committee that the bill would have a “destabilizing effect” on the energy market. “While the bill may seem straightforward,” Stover said, “we believe it could produce unintended consequences that could actually increase costs on consumers and undermine reliability.” Other legislative proposals would specifically tax renewable energy projects and bar offshore wind facilities from connecting to the grid. Beyond legislation related to the type of energy on the grid, lawmakers are more broadly focused on how to meet demand growth. Senate Bill 6 — a priority bill of Lt. Gov. Dan Patrick, who presides over the Senate and wields enormous power over which legislation is approved — aims to firm up the state’s energy demand forecast, more fairly allocate the costs of building out necessary transmission infrastructure and ensure that existing generation is not removed from the grid to serve large industrial users. House Bill 2678 looks to support the development of advanced nuclear technology in the state, in line with Abbott’s and Patrick’s priorities. Lawmakers have also proposed measures to increase consumer protections, including by tightening oversight of third-party solar panel sellers, re-establishing a low-income electricity bill assistance fund and requiring that new battery storage projects have safe removal and disposal plans at the end of their lives. As the clock ticks on the remaining months of session, Lewin said, lawmakers will have to decide whether they want to focus on pushing down, or building up, certain resources. “There’s only 140 days — you don’t really have enough time to do both,” he said. “Building up a nuclear industry in Texas will take a lot of good legislative thinking and focus and attention. I hope that they focus on stuff like that — and not on punching down at renewables.” This article originally appeared in The Texas Tribune at https://www.texastribune.org/2025/03/06/texas-legislature-energy-renewables-power-grid/. The Texas Tribune is a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy. Learn more at texastribune.org.

powerplant

Mar 06, 2025

RENEWABLE ENERGY WORLD NEWS

‘A Really Dumb Idea’: Trump Tariffs Threaten The Grid As Ontario Premier Reaffirms Promise To Cut Off Electricity To The UsOn Tuesday the United States imposed sweeping tariffs on its largest trade partners, sending world markets tumbling and instigating retaliatory countermeasures that are likely to impact the cost and availability of electricity for millions of Americans while jeopardizing state renewable energy targets. Effective March 4, 2025, the U.S. has imposed a 25% tariff on all imports from Mexico, a 10% tariff on Canadian energy and a 25% tariff on other imports, and an additional 10% tariff on all Chinese goods- tacked onto the 10% imposed precisely one month ago. More than one-third of all products brought into the United States are produced in Mexico, Canada, and China. Canada also generates roughly 90% of its imported electricity, primarily clean hydropower flowing into states like New York, Maine, and Vermont. The tariffs, paid by U.S. businesses to the U.S. government on purchases from affected countries, are the latest and largest levied in President Donald Trump’s ongoing trade war with neighbors he claims have been “ripping off” the United States. In an executive order, Trump professes Mexico and Canada have been allowing fentanyl and immigrants to pass freely into the U.S., and intends his tariffs to stay in place until both issues have been remedied to his satisfaction. Both countries dispute those assertions; Mexican President Ms. Claudia Sheinbaum’s government rejects Trump’s statements as “offensive, defamatory and without substance,” with Canadian Prime Minister Justin Trudeau echoing “there is no justification for these actions.” The tariffs threaten the stability of the Canadian economy, which relies heavily on exports, and have already prompted retaliation from the United States’ closest allies, which will only further harm people with bills to pay and grid operators with lights to keep on. “Today the United States launched a trade war against Canada, their closest partner and ally, their closest friend,” Trudeau said Tuesday at a press conference in the capital of Ottawa. “At the same time, they are talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense.” “You’re a smart guy,” Trudeau continued, addressing President Trump by his first name, Donald. “But this is a very dumb thing to do.” Heliene CEO Martin Pochtaruk says tariffs are already cutting into his bottom line and stifling job creation. Check out: Penalized for creating jobs? North American manufacturer frustrated by solar import policy Tuesday morning, Canada swiftly responded to Trump’s actions with a 25% tariff against $155 billion of American goods, roughly $30 billion implemented immediately and the rest within three weeks. The exact goods have yet to be specified. “Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Canada’s Prime Minister said. “While we urge the U.S. administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal.” “Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs,” Trudeau continued, pointing out how tariffs will disrupt a successful trade agreement negotiated by President Trump during his last term. Canada’s Prime Minister went on to proclaim President Trump is purposefully trying to crash his country’s economy. “What he wants to see is a total collapse because that’ll make it easier to annex us,” Trudeau alleged. “That’s never going to happen. We will never be the 51st state.” Meanwhile, Ontario Premier Doug Ford has doubled down on his previous promise to pull the plug on his province’s energy exports to the United States in retaliation, which would drive up prices for millions of ratepayers in the northeast, a region that has adopted particularly ambitious net-zero legislation. “They rely on our energy, they need to feel the pain,” he told attendees of a mining convention in downtown Toronto on Monday. “They want to come at us hard? We’re going to come back twice as hard.” “We keep the lights on in 1.5 million homes and manufacturers in New York, Michigan, and Minnesota,” Ford pointed out in a subsequent media appearance. “If he wants to destroy our economy and our families, I will shut down the electricity going down to the U.S. and I’m telling you, we will do it. It’s unfortunate. I would rather ship you more electricity, more energy.” The three states Ford rattled off are Ontario’s largest customers of exported electricity. Ontario has the third-most hydropower generation capacity of any province, totaling about 9 gigawatts (GW). Quebec (41 GW) has the most, followed by British Columbia (16 GW). Major players including British Columbia Hydro and Power Authority (BC Hydro), Hydro Quebec, and Ontario’s Hydro One have wholesale trading divisions and subsidiaries in charge of power exchanges with the United States. The United States and Canada share one of the world’s most integrated international electric grids, allowing the countries to pool resources in times of need. Every regional grid in the U.S. is connected to at least one Canadian province except for the Electric Reliability Council of Texas (ERCOT). The New York Independent System Operator (NYISO) is interconnected with two Canadian system operators, Ontario’s Independent Electricity System Operator (IESO) and Hydro-Québec (HQ), where it can import as much as 2,500 megawatts (MW) from IESO and another 2,100 MW from HQ. Although Canadian imports accounted for less than 1% of annual US electricity consumption last year, NYISO and ISO – New England (ISO-NE) bank on a lot coming from Canada. In 2024, 9% of electricity demand in New England was met through imports from Canada through NYISO. New York imported the most from Canada in 2024 at 7.7 TWh, according to data from the regulator. Via ISO-NE, Vermont imported 3.9 TWh and Maine imported 2.3 TWh in 2024. Late last week, ISO-NE and NYISO requested authorization from the Federal Energy Regulatory Commission (FERC) to collect import tariffs, although admitting they’re still uncertain if they would (or should) apply to electricity imports from Canada. ISO-NE has estimated Trump’s decision could jack up the region’s power costs by up to $165 million per year, and NYISO claims tariffs on Canadian electricity “would likely amount to tens of millions of dollars per year” for New Yorkers. “The NYISO and neighboring system operators have serious concerns that applying export tariffs to electricity may have serious adverse effects on reliability and wholesale electric markets,” NYISO stated on its website, emphasizing its FERC filing was made out of an “abundance of caution to ensure that if NYISO is determined to have an obligation under federal law to collect and remit tariffs on electricity imported from Canada it has the cost recovery and allocation mechanism in place to comply with that obligation.” “The NYISO’s principal and preferred proposal would require any entity that causes Canadian electricity to be imported to New York to bear the cost of the tariffs,” it added. DISTRIBUTECH® is the leading annual transmission and distribution event that addresses technologies used to move electricity from the power plant through the transmission and distribution systems to the meter and inside the home. Register now to secure your spot, and we’ll see you March 24-27, 2025 in Dallas, Texas! The United States spent about $3.2 billion importing 33.2 terawatt-hours (TWh) of electricity from Canada in 2023. The U.S. previously imported much more, topping out at 68 TWh in 2015, according to the Energy Information Administration (EIA). The decline can be attributed to drought conditions over the last few years, which have reduced hydropower generation and brought its cost closer to decreasing U.S. natural gas prices. As Grid Status points out on the former blue bird app, President Trump’s 10% tariff might be enough to completely topple the scales, destroying any remaining advantages of importing electricity from up north. Both NYISO and ISO-NE import millions of cheaper MWhs per year from Canada. With just 10% tariffs, this price advantage is nearly eliminated. Both NYISO and ISO-NE import millions of cheaper MWhs per year from Canada. With just 10% tariffs, this price advantage is nearly… pic.twitter.com/uraEkS8jPs China also punched back at President Trump’s tariff actions Tuesday. The country’s finance ministry announced 15% tariffs on imports of chicken, wheat, corn and cotton from the United States, plus 10% tariffs on imports of sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products. Ms. Sheinbaum says the Mexican government will take its time to consider countermeasures that will likely include retaliatory tariffs, planning to make an announcement by Sunday. President Trump has shown no signs of letting up on his trade war. A 25% worldwide tariff on imported aluminum and steel is set to go into effect March 12, and an as-of-yet-unspecified tariff on some agricultural products is expected in April. Since you made it this far, you may be wondering, dear reader, how any of these actions benefit the United States. David Kelly, chief global strategist and head of the global market insights strategy team for J.P. Morgan Asset Management, took a stab at it. “The trouble with tariffs, to be succinct, is that they raise prices, slow economic growth, cut profits, increase unemployment, worsen inequality, diminish productivity, and increase global tensions. Other than that, they’re fine.”

powerplant

Mar 04, 2025

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