Latest news with #PJMInterconnection
New York Post
3 days ago
- Business
- New York Post
How the Big Beautiful Bill will lower energy costs, shore up the electric grid — and unleash American prosperity
How much would you pay for an Uber if you didn't know when it would pick you up or where it was going to drop you off? Probably not much. Yet this is the same effect that variable generation sources like wind and solar have on our power grids. Advertisement You never know if these energy sources will actually be able to produce electricity when you need it — because you don't know if the sun will be shining or the wind blowing. Even so, the federal government has subsidized these sources for decades, resulting in higher electricity prices and a less stable grid. President Donald Trump knows what to do: Eliminate green tax credits from the Democrats' so-called Inflation Reduction Act, including those for wind and solar power. Advertisement The One Big Beautiful Bill seeks to do that: Along with other proposals, like canceling billions in Biden Green New Deal money and making much-needed investments in the Strategic Petroleum Reserve, it aims to set an aggressive end date for these subsidies and build on the president's push for affordable, abundant, and secure energy for the nation. The House bill begins phasing out these tax credits within three years, saving hundreds of billions for American taxpayers. As secretary of energy — and someone who's devoted his life to advancing energy innovation to better human lives — I, too, know how these Green New Deal subsidies are fleecing Americans. Wind and solar subsidies have been particularly wasteful and counterproductive. Advertisement One example: The Renewable Electricity Production Tax Credit was first introduced in 1992, when wind energy was a nascent industry. This tax credit, originally set to phase out in 1999, was sold on a promise of low-cost energy with fewer tradeoffs. Since 1999, the REPTC has been extended a whopping 12 times, yet consumers continue to pay more on average for their home electric bills than in 1992, even after adjusting for inflation. Plus, today, more than 75% of US electricity comes from natural gas, nuclear and coal — and they supply it 24/7, independent of the weather. Climate change activists are predictably up in arms over efforts to end the subsidies. But like Uber rides, energy generation is pointless if it flunks the test of reliable delivery. Advertisement At 8 p.m. on Inauguration Day, amid bitter cold across much of the Eastern seaboard, we reached peak demand for electricity in the mid-Atlantic region. At that point in time, PJM Interconnection, which supplies the Mid-Atlantic United States, got approximately 44% of its power from coal, 24% from natural gas, 25% from nuclear, 3% from oil, 3% from wind, 1% from hydro and 0% from solar. Think about that: When Americans most needed dependable power to heat their homes and businesses to stay alive, solar and wind were non-factors. Our homes, hospitals and businesses only continued to operate because there was enough reliable, baseload energy from natural gas, coal and nuclear available to meet demand. How valuable is a teammate who occasionally shows up for practice but is never there at game time? And the more we load our grid with intermittent generation, the worse the grid performs during times of maximum stress and demand. Subsidies are meant to drive prices down and boost supply. But subsidizing wind and solar has done exactly the opposite. These sources force grid operators to maintain two separate systems — one for legacy power and another for renewable sources. Advertisement When wind and solar come online, legacy resources must be scaled back. But it's difficult to store electricity from wind and solar. So when wind and solar aren't available at times of peak demand, reliable baseload sources must scale up. Bottom line: higher costs. Indeed, wind and solar subsidies not only cost taxpayers but also force providers to add more dispatchable resources to the grid, at their expense. These costs are then passed on to ratepayers. Advertisement In other words, more wind and solar brings us the worst of two worlds: less reliable energy delivery and higher electric bills. It's time to stop subsidizing such insanity in perpetuity. If sources are truly economically viable, let's allow them to stand on their own, and stop forcing Americans to pick up the tab if they're not. Since Day 1, President Trump has been focused on lowering energy costs and promoting affordable, reliable and secure energy sources. Advertisement The One Big Beautiful Bill brings us one step closer to cementing this legacy — and unleashing economic prosperity for the American people. US Energy Secretary Chris Wright is a self-described energy nerd turned entrepreneur. He's spent his entire career in the energy industry, working in oil and gas, nuclear, solar and geothermal.
Forbes
4 days ago
- Climate
- Forbes
How To Stay Cool In A Post-Climate World
A man cools himself with a garden hose during a heat wave. Power grids from the Midwest to the Southeast have taken emergency action this week as an early-season heat dome brought an extended period of hot and humid weather to America's most populous region. The science team at nonprofit news organization Climate Central found that climate change made the present spell of hot weather four to five times more likely. The largest grid operator in the U.S., the Pennsylvania-New Jersey-Maryland (PJM) Interconnection, which coordinates the transmission of electricity to roughly 20% of the U.S. population in 13 states and the District of Columbia, issued an alert that power usage is likely to hit a 14-year high this week. The alert advises electrical generation facilities to delay maintenance and repair outages due to the heavy load and informs clients that it will undertake 'demand response' initiatives through VPPs like Sonnen and Renew Home—companies which we have covered in this column. The Interconnection, which maintains approximately 179 gigawatts of total generation capacity and nearly 8 GW of demand response capacity, anticipated a load of 160 GW—around 86% of its total capacity. On Tuesday, the Department of Energy issued an emergency declaration for the Carolinas allowing Duke Energy to exceed pollution limits at its power plants to meet the load brought about by the heatwave. While summer heatwaves are not unusual, this one came early in the season and is severe enough to prompt action by grid operators and the U.S. government. The scientists at Climate Central have developed an online climate shift index application that calculates the increased likelihood of temperature extremes due to climate change. According to Climate Central's explanation, 'The Climate Shift Index (CSI) reveals how much climate change influences the temperature on a particular day. The index ranges from -5 to +5 with positive levels indicating temperatures that are becoming more likely due to climate change (negative scores indicate conditions that are becoming less likely). For levels at 2 or above, the Index is a multiple of how frequently a particular temperature will occur due to climate change.' The CSI estimates the current Midwest and East Coast heatwave has been roughly four to five times more likely due to the effects of human-induced carbon cycle imbalances. Climate Central's Climate Shift Index for the U.S. on June 24, 2025 This analysis highlights the extent to which climate change is already affecting our daily lives. I often hear people speculate as to climate change's effects on their children or grandchildren while overlooking the radical imbalance of the planet's carbon cycle already incurred by 150 years of burning fossil fuels. Climate change's impacts on civilization are no longer abstract projections to be suffered by future generations; if we take the trouble to look for them, we find that those impacts have already arrived. We are living in a 'post-climate' world. This week's early-season heatwave illustrates the vicious cycle in which we are now trapped. People crank up their air conditioning in rising temperatures. Utilities, straining to accommodate the additional power demand, crank up coal- and natural gas-burning facilities, releasing carbon dioxide into the atmosphere, making the atmosphere more insulating, and further raising temperatures. Now consider that this vicious cycle is playing out across the globe. Climate Central's Climate Shift Index for the globe on June 24, 2025 Everyone living in the dark rust-colored parts of the map above is experiencing unseasonably hot weather made four to five times more likely due to climate change. Outside of the U.S., many in those dark rust-colored areas live in developing countries with rapidly expanding urban areas subject to the urban heat island effect. People in developing countries are no less desperate for the relief of air conditioning than people on the East Coast of the U.S. and are increasingly able to afford this luxury. There are ways to break out of this vicious cycle, but they are not simple. One featured earlier this month in this column is Dr. Lorenzo Kristov's proposal to shift power generation and distribution to regionally distributed self-reliant mini-grids. Another is reducing fossil fuel generation demand through energy efficiency improvements in homes and commercial buildings. Yet another is increasing the livability of underserved neighborhoods through tree planting and the establishment of energy-efficient community cooling centers. One point that bears stating: Cutting funding to federal agencies like NOAA and the National Weather Service risks lives during extreme weather events and threatens the stability of our electrical grid. The emergency measures taken by PJM and the Department of Energy this week were made possible by forecasts born from the hard work done daily at these agencies. Maintaining our government's capacity to understand how a changing climate will manifest itself through extreme weather events like heat domes and predicting these events before they occur is essential in this post-climate world.
Yahoo
5 days ago
- Climate
- Yahoo
AEP Ohio says no blackouts expected despite heat wave; here's how to help prevent them
As central Ohio sweats its way through June, only one thing could make this oppressive heat worse: a power outage. Thankfully, AEP Ohio isn't expecting one. Director of operations Matt Bennett said there's been no indication from PJM Interconnection, the organization that manages the electricity grid for Ohio and 12 other states, that an electrical outage is anticipated in the coming weeks. That's not to say that an "emergency load reduction," commonly known as a blackout, isn't possible. Bennett said the process would involve temporarily cutting power to one group of circuits for some minutes, then restoring it and moving onto the next group. "That's why they call it a rolling blackout, because you're rotating the outages to ultimately reduce the demand on the system," Bennett said. "There's never a convenient time for a power outage, so you're trying to make it as least inconvenient and least impactful for the customer as possible." Temperatures are projected to be in the high 90s the next few days, with heat index values reaching as high as 104 degrees. On June 25, temperatures are expected to slightly drop, remaining in the low 90s through June 29 at least. Now until 8 p.m. on June 24, Columbus and much of Ohio are under a heat advisory issued by the National Weather Service due to consecutive days — and even nights — of high heat and humidity. In the past few days, PJM has issued multiple alerts regarding the heat wave, which Bennett said serve as preventative measures to ensure the electrical grid is in the best possible condition amid extreme temperatures. There is a possibility that PJM directs a formal energy conservation request to industrial and residential energy users in a further attempt to be proactive, but a blackout itself is "an absolute last resort," Bennett said. To help fend off this outcome, Bennett said people should minimize their electricity usage between 3-6 p.m., when demand is highest. During this period, you should avoid charging your electric vehicle and using large appliances like ovens, dishwashers and dryers. Bennett also advised turning your thermostat up a few degrees — ideally to 78, as recommended by AEP. Even if it's turning off lights or unplugging phone chargers, Bennett said "every little bit helps." "It may not seem a lot for each individual person, but on a larger scale, it can really make a big impact, because this is truly a supply and demand issue," Bennett said. "The overall goal is that we protect the grid, which ultimately will keep the energy flowing for all of us." AEP Ohio remains in "close communication" with PJM, and Bennett encouraged Ohioans to follow AEP Ohio on Instagram, X or Facebook to stay updated on potential blackouts and learn more tips to conserve energy. Reporter Emma Wozniak can be reached at ewozniak@ or @emma_wozniak_ on X, formerly known as Twitter. This article originally appeared on The Columbus Dispatch: AEP Ohio says blackouts, power outages not expected despite heat wave
Miami Herald
23-06-2025
- Business
- Miami Herald
Summer business energy strategies to impact your bottom line
Summer business energy strategies to impact your bottom line For many businesses, managing energy costs can be a challenge, especially during the summer months. Understanding peak load contribution (PLC) and the strategies it entails can unlock significant savings on electricity bills, and more importantly, provide a competitive edge in energy (and energy cost) management. In this guide, Shipley Energy explains the key concepts of PLC and explores strategies your business can implement to mitigate these costs while ensuring you remain operationally efficient. What is peak load contribution? PLC refers to your business' share of energy use during the highest demand periods on the electricity grid-usually on the hottest days of summer. Utilities use this figure to calculate your portion of capacity charges, which are a major part of your total electricity costs. In essence, the higher your energy use during these peak periods, the larger your share of the grid's maintenance and operational costs, and the higher your bills are for the next 12 months. So why does this matter? For businesses, since capacity costs are measured in dollars per megawatt day, reducing energy consumption during these peak times can translate to lower capacity charges, which can have a substantial impact on your bottom line. How is peak load contribution determined? Utility companies measure your energy usage during peak hours-typically across five peak days during the year when the grid is most strained. These days are often driven by extreme weather or high-demand periods, and are determined by regional transmission organizations such as PJM Interconnection, which manages much of the mid-Atlantic region. If your business uses a significant amount of electricity during these peak events, it contributes more to the overall load, and your capacity charges will be higher. The key to mitigating this is managing and reducing energy usage during these critical times. Strategies for mitigating PLC and reducing energy costs Participate in demand response programs One of the easiest ways to mitigate PLC is by participating in utility-sponsored demand response programs. These programs offer financial incentives to businesses that reduce their energy usage during peak periods. By temporarily scaling back nonessential operations or shifting energy-intensive processes to nonpeak hours, you can not only reduce your PLC but also receive direct compensation for doing so. Shift energy usage to off-peak times Load shifting is another effective strategy. This involves rescheduling high-energy-consuming activities, like production or heavy machinery operation, to times when the grid is under less stress. For many businesses, this may involve adjusting work schedules or automating processes to occur overnight or early in the morning. Load shifting can significantly reduce your energy demand during peak periods, cutting down your PLC and, by extension, your capacity charges. Heavy heating or cooling of buildings can also be shifted preemptively so that usage is lowered during peak periods. Obviously, any usage that is critical to the financial well-being of your business shouldn't be shifted without a full financial analysis of the impacts and potential savings. Leverage energy storage solutions Investing in energy storage systems, such as batteries, can help your business store energy during off-peak times and use it during peak hours. This not only shields you from high peak demand rates but also offers a layer of protection against power outages. While energy storage can involve an upfront investment, the long-term savings in PLC reduction and operational uptime may make it a worthwhile consideration. Utilize on-site generation Another option for reducing your reliance on the grid during peak times is through on-site generation. This can include solar panels, wind turbines, or natural gas generators that produce energy for your facility. During peak times, your business can draw from these sources, reducing the need to pull from the grid and lowering your PLC. While this requires significant planning and initial capital, it can offer both cost savings and sustainability benefits. Implement energy efficiency measures Lastly, improving your business's overall energy efficiency can reduce your PLC indirectly. By upgrading lighting, HVAC systems, and insulation, you reduce the overall amount of energy your facility uses throughout the year. These improvements also make it easier to manage your energy use during peak times, making PLC mitigation part of a broader energy strategy. The financial impact of PLC mitigation The potential savings from PLC mitigation are significant. Lowering your PLC means lower capacity charges, which can account for 10%-30% of your total electricity bill. Moreover, while the upfront investment in energy storage, on-site generation, or efficiency upgrades may seem daunting, the long-term return on investment can make these measures highly profitable. Energy storage systems, for example, not only help with PLC mitigation but also provide resilience against power outages. Effectively managing your PLC requires more than just tracking energy usage-it demands a comprehensive approach that blends technology, strategic planning, and expert guidance. Physical solutions to reduce load LED lighting: Switch to high-efficiency LED lighting to significantly cut down on your facility's baseline energy air conditioning: Upgrade to energy-efficient HVAC systems that consume less power during both peak and non-peak speed motor drives: Install variable speed drives on equipment to adjust energy output to match operational demands, ensuring your machinery only uses what it needs when it needs controlled HVAC systems: Implement smart, remote-controlled HVAC systems that allow you to adjust temperatures during peak periods without compromising comfort or productivity. By making these physical upgrades, businesses can see immediate reductions in energy consumption, which directly lowers PLC and overall operating costs. Who benefits the most from peak load contribution mitigation? While all businesses can benefit from managing their PLC, certain industries and organizations are particularly impacted by high energy demand and capacity charges. Here's a look at the types of businesses where PLC mitigation can have the most significant impact. 1. Manufacturing facilities Manufacturing facilities are often among the largest energy consumers, with heavy machinery, production lines, and climate control systems running at full capacity. A single manufacturing plant can see its energy bills skyrocket during peak periods, making PLC management crucial. By adopting energy-efficient equipment, like variable speed motor drives and high-efficiency HVAC systems, manufacturers can reduce their peak demand. Additionally, strategic load shifting, such as moving energy-intensive processes to nonpeak hours, can dramatically lower PLC. Example: A metal fabrication plant that adjusts its production schedule to run energy-heavy processes overnight, using smart systems to monitor and control energy use during the day, could reduce its PLC by 15%, leading to significant savings on energy bills while maintaining production targets. 2. Municipal water treatment plants Water treatment facilities are essential operations that consume large amounts of energy, particularly during pumping and treatment cycles. These facilities often have limited flexibility to shift their energy use, but smart strategies like demand response programs and energy storage solutions can help. By implementing remote-controlled systems to reduce nonessential power consumption during peak events, municipalities can cut energy costs without compromising service. Example: A water treatment plant that integrates an on-site energy storage system and begins participating in a demand response program. By storing energy during off-peak times and drawing from the storage during peak demand periods, the facility could reduce its PLC and see a 10% decrease in its annual energy expenses. 3. Commercial real estate and office buildings For office buildings, especially those with large HVAC and lighting systems, energy consumption tends to peak during regular business hours. Facilities managers can utilize real-time monitoring and automated HVAC systems to reduce load during peak times. Simple actions like adjusting the thermostat and dimming lights during peak events can significantly lower energy usage and mitigate PLC costs. 4. Data centers Data centers, with their extensive use of servers and cooling systems, are constant energy consumers. PLC mitigation is critical for these operations, where uptime is nonnegotiable. Strategies such as load shifting, energy-efficient cooling, and on-site renewable generation can help reduce peak demand without affecting data center reliability. 5. Large retail operations Retailers, especially large chains or shopping malls, tend to have predictable peak hours. Energy-saving initiatives like LED lighting and smart building systems can help them cut back on energy use during peak periods without impacting customer experience. Additionally, demand response programs can provide a source of income by reducing nonessential operations during grid stress. Why peak load contribution mitigation matters For these types of organizations, effective PLC management goes beyond just lowering energy bills-it enhances operational resilience, reduces environmental impact, and ensures compliance with local and regional energy regulations. Businesses in these sectors can tailor their energy management strategies to meet their unique operational demands while controlling energy costs. This story was produced by Shipley Energy and reviewed and distributed by Stacker. © Stacker Media, LLC.
Reuters
23-06-2025
- Climate
- Reuters
Grid operator PJM issues maximum generation alert for Monday amid heat wave
June 23 (Reuters) - Grid operator PJM Interconnection has issued an alert for Monday asking power generators to be ready to operate at maximum capacity if needed, as hot weather continues throughout the eastern U.S. region the grid operator serves. PJM expects its electricity needs to reach 160,000 MW on Monday, 158,000 on Tuesday and 155,000 on Wednesday, it said. The alert is aimed at transmission and generation owners who can schedule maintenance work accordingly, and also signals to neighboring regions that PJM power exports may need to be curtailed, the grid operator said. A hot weather alert is in effect through June 25 for PJM's entire service area, which includes all or parts of 13 states including New Jersey and Illinois plus the District of Columbia, ahead of an expected extended heat wave. Major cities across the U.S. are preparing for extreme temperatures caused by a heat dome that hit the U.S. Plains on Friday and is expected to expand to much of the rest of the country over the coming days.
