Latest news with #electricity
Forbes
3 hours ago
- Business
- Forbes
Storage Now Vital Part Of Grid Architecture
It has become, in electric terms, the elephant in the room. That metaphor dates back to 1814, but serves well today when looking at the constrained future of the U.S. electricity supply: the emergence of storage as an essential part of the grid infrastructure. Storage, largely pump storage, has been around since the 19th century. Now with batteries, storage has become an essential player in supporting the grid during normal operations and in times of stress. Notably both the CEO of ERCOT, Pablo Vegas, and the CEO of CAISO, Elliot Mainzer, have said their systems got through the winter of 2022-2023 because of the amount of storage in both systems. Storage Is The New Essentiality The growing importance of storage, indeed its essentiality, is covered in a major article — more of a white paper, really -- authored by three energy attorneys at the world's largest law firm, Dentons: Clinton Vince, Jennifer Morrisey and Andrew Mina. It appears in the August issue of Financier Worldwide, a monthly publication for executives. The article traces the history of battery storage from its acceptance as a potential contributor to a low-carbon grid, playing a role in firming up intermittent resources, to its growing importance in grid stability. Historically, pump storage was the most cost-effective and reliable storage system with long drawdown times. But, as the Dentons attorneys point out in their article, it is difficult to build and new sites are limited. Ninety percent of new storage is from batteries, they say. You might say that utility scale battery storage has come of age. The article states: 'The essential role of storage and the variety of benefits it offers to the grid are quickly becoming more broadly appreciated.' The authors portray the grid as becoming more stressed, suffering from years of under investment, increasingly turbulent weather, and a rapidly increasing demand for power. 'Last year the U.S. electric grid saw additions of new generation capacity of more than 70 percent over the previous year, a trend that is expected to repeat this year. 'This is a significant increase, but it pales in comparison to the expected threefold increase in demand over the next few years, driven by artificial intelligence and data center growth, and the electrification of transportation and industrial operations,' they write. The workhorse in batteries is lithium ion which has done so much to support the changing face of the modern world, from cellphones to electric vehicles, drones to toys, personal computers to spacecraft. But for utilities, the future may have other strong players, including iron-air and flow batteries. Even old-fashioned and proven lead-acid devices may have a future in the utility space. While iron-air batteries, as offered by Form Energy based in Somerville, Massachusetts, have the advantage of drawdown times of several days, they are less adept at load following. John Howes, principal at Redland Energy Group and an aficionado of batteries of all kinds, points out that energy-hungry data centers aren't waiting. They are deploying batteries in their data centers now. Howes told me, 'Energy storage systems, which have been part of the nation's power infrastructure for more than 150 years, now must assume a role of greater importance to ensure that the physical infrastructure will perform seamlessly. 'Batteries already are deployed in every data center.' He added that batteries serve the nation's growing artificial intelligence capability. Howes said batteries not only back up other power generators in emergencies but can also achieve 'black starts' in a complete blackout situation. Their day-to-day work is to store low-cost energy for discharge in peak demand times. To accomplish these functions in a cost-effective manner, Howes said, batteries will have to use better performance materials and advanced designs, and be made with state-of-the-art processes. Complexity Of Valuing Battery Resource The Dentons article explains these challenges this way: 'Valuing a battery resource is a more complex exercise than for other resources. The cost of a battery resource is deeply intertwined with the engineering operations of the grid, and the arbitrage functions of battery storage complicates the determination of the market value of the resource. 'Moreover, battery storage provides a variety of values to the electric system. The cost will vary depending on which service is needed at any given time to optimize which market, and will affect how battery storage is bid into the market and at what level of charge. This sets battery storage apart from other distributed resources.' In 2024, according to the Energy Information Administration, utility-scale battery storage exceeded 26 gigawatts, with operators adding 10.4 GW of new battery storage capacity, making it the second-largest generating capacity addition after solar. The EIA expects a record-breaking increase in 2025, with 19.6 GW of utility-scale battery storage planned to be added to the grid. The elephant is stirring, maybe getting to its feet.
ABC News
6 hours ago
- Business
- ABC News
Tasmania signs on to Marinus Link power cable project despite government caretaker period
Tasmanian Energy Minister Nick Duigan has confirmed the state has signed up to the multi-billion-dollar Marinus Link project. Speaking to ABC Radio Hobart on Friday morning, Mr Duigan said he signed a new deal with the federal government on Thursday night. "I'm very pleased to say that as of last night I was able to sign that new deal having received advice and that has resulted in a significantly better deal for Tasmania," he said. The Marinus project will see a second underwater electricity cable and transmission line built in the Bass Strait between Victoria and Tasmania. It is designed to give the mainland greater reciprocal access to Tasmania's renewable energy resources. The state government has yet to release the business case for the project, despite earlier in the year promising to release it 30 days before a final investment decision. The decision to sign onto the project comes during the caretaker period almost two weeks after a state election in which no party has yet formed a new government.
Reuters
12 hours ago
- Business
- Reuters
PPL and Blackstone data center joint-venture secures land as demand grows
NEW YORK, July 31 (Reuters) - PPL Corp's (PPL.N), opens new tab joint-venture with Blackstone to build power plants for Big Tech data centers has secured land and is in discussions with potential customers, gas pipeline companies and turbine manufacturers, executives with the company said on Thursday. U.S. electricity demand is surging to new heights from energy-intensive data centers needed for the expansion of artificial intelligence, raising reliability and cost concerns for power grids growing short on supplies. "Meeting this unprecedented demand growth will require an unprecedented response and will require all market participants to be part of the solution," PPL CEO Vincent Sorgi said on an earnings call with investors. On the call, PPL separately said that it was extending the life of retiring coal-fired power generation in Kentucky to meet growing electricity consumption. PPL, a major electric utility company that primarily operates in Pennsylvania, announced the joint-venture earlier this month at an AI energy summit in Pittsburgh that was attended by U.S. President Donald Trump, giant technology companies and power industry executives. Energy companies that previously only ran power lines are increasingly considering alternative options to ramp up power supplies, including by developing their own power plants. Data center demand in PPL's territory has reached 14.5 gigawatts, equivalent to what could power all of the homes in the largest U.S. state of California. PPL is also supporting state legislation in Pennsylvania that would allow fully-regulated utilities to own power generation, which is currently not allowed in the state. The joint venture with Blackstone does not include PPL Electric utilities or its regulated subsidiaries.
CTV News
13 hours ago
- Business
- CTV News
Hydro-Quebec proposes 4.8% rate hike for businesses, 3% for residents
Hydro-Quebec is proposing annual rate increases of three per cent for residential consumers and 4.8 per cent for commercial and industrial customers over the next three years. The Crown corporation presented its rate requests for 2026, 2027, and 2028 on Thursday, which must be approved by Quebec's energy board, the Régie de l'énergie. For the residential sector, the proposed increase would raise the average electricity bill by approximately $2.40 per month for an apartment and $6.70 for an average-sized house. Hydro-Quebec's request is part of François Legault's government's energy reform, adopted under closure last June. It aims to limit residential electricity rate increases to a maximum of three per cent. In addition, the corporation has announced an increase in its budget for measures to help consumers reduce their bills, including the smart thermostat program, up to $2.5 billion for the next three years. In the business community, the proposed 4.8 per cent increase is already drawing criticism, though Hydro-Quebec denies that it is hurting small and medium businesses. 'Rates in Quebec remain significantly lower than in other jurisdictions,' said Dave Rhéaume, executive vice president of commercial operations and head of customer relations, at a press conference. The Régie de l'énergie is expected to render a decision in March 2026. The new rates would then be scheduled to take effect on April 1 that year. - This report by The Canadian Press was first published in French on July 31, 2025.
Reuters
13 hours ago
- Business
- Reuters
Exelon says potential data center demand is more than 30 gigawatts
July 31 (Reuters) - Major U.S. electricity utility Exelon (EXC.O), opens new tab has 33 gigawatts of data center customers interested in connecting to its system, as the company explores its options for adding new power supplies to meet the explosion of demand, company executives said on Tuesday. Electric utilities are fielding massive requests for electricity to fuel Big Tech's new AI data centers, which are driving U.S. power consumption to new highs and pressuring the grid. Thirty-three gigawatts is enough power all of the homes in California, New York and Texas, combined. Of that amount, Exelon says 17 gigawatts are already in line to connect to its system, and another 16 gigawatts will be studied and are expected to be added to the formal pipeline by the end of the year. Exelon serves more than 10.5 million customers through six fully-regulated transmission and distribution utilities. Chicago-based Exelon is considering its options for building and owning power generation, which electric utilities are legally barred from in many U.S. states. In those states, regulated utilities own power lines, while independent power producers own and operate power plants. There are currently proposals in states, including Pennsylvania and New Jersey, to allow regulated utilities to develop and own power plants. "We want to be part of the solution," Exelon CEO Calvin Butler said on an earnings call with investors. "The supply is not meeting the demand." Exelon reported overall revenue of $5.43 billion for the second quarter, compared with analysts' average estimate of $5.38 billion, according to data compiled by LSEG. Earnings at its PECO unit, Pennsylvania's largest electric and natural gas energy company, rose about 51% to $136 million during the reported quarter. However, earnings at its Commonwealth Edison unit (ComEd), the largest electric utility in Illinois, fell 15.6% to $228 million. The company reaffirmed its full-year 2025 adjusted profit forecast of $2.64 to $2.74 per share. Analysts were expecting $2.69 per share. Exelon posted adjusted operating earnings of 39 cents per share for the April to June period, compared with analysts' estimate of 37 cents.
