Powered by

Welcome to Grid Brief! Here’s what we’re looking at today: California embarks on a flexible demand plan, Asia sees blackouts during a punishing heatwave, Iran wants to build a regional gas hub, and more.

California’s Flexible Demand Plan

The California Energy Commission approved a new load shift goal for 2030—7000 MW, which is double the current level.

“The goal, which comes from a requirement in state Senate Bill 846, passed last year, includes a series of measures including demand response programs and time-of-use rates that incentivize the use of electricity when it makes the most sense for customers and the grid,” reports Utility Dive.

In other words, California is creating incentives that allow consumers to shift their use of power around. As the state builds more intermittent resources and tries to electrify more sectors, supply volatility and demand will increase apace. Load flexibility is an attempt to reconcile electrifying everything with unreliable power. California heavily relied on demand response—asking Californians to cut their power use during peak hours—to avoid blackouts last summer.

The CEC’s decision is “essentially the counterpart to the renewable portfolio standard,” Cisco DeVries, CEO of OhmConnect told Utility Dive. DeVries described the RPS as “a giant starting gun for utility-scale renewable power,” adding that this new goal will serve the same function for demand flexibility.

The CEC also approved a $3 million grant for Lancaster Project company to develop a renewable hydrogen production facility in the state.

“The plant will produce about 3.8 kg of renewable hydrogen by converting 42,000 tons of in-state rejected recycled mixed paper waste per year,” reports California Energy Markets.

Asia’s Scorching Summer

As mercury rises across Asia, livestock perish and power grids fail.

“In southern regions, electricity demand hit peak levels in late May, a month earlier than last year, while Beijing in the north is expected to see temperatures hit a high of 37C (98F) on Wednesday. Shanghai broke a 150-year-old record for the highest-ever May temperature last week,” reports Bloomberg. “The scorching weather is proving particularly dangerous to animals. Hundreds of pigs have been dying in Jiangsu province and farmed fish perished as water temperatures soared in Guangxi, according to reports in local media. In Sichuan, the heat is killing rabbits, causing a surge in the price of spicy rabbit heads, a popular street food dish.”

Chinese agriculture and industry are also suffering under the heatwave.

Meanwhile, Vietnam is struggling under some of its worst ever power shortages. And a coal shortage has sent blackouts across Bangladesh.

Share Grid Brief

We rely on word of mouth to grow. If you're enjoying this, don't forget to forward Grid Brief to your friends and ask them to subscribe!

Iran Wants to Build a Regional Gas Hub

Iran wants to create a natural gas hub in the Persian Gulf. According to Iranian Oil Minister Javad Owji, the country is working with Russia, Qatar, and Turkmenistan to make it happen.

“With the cooperation of Russia, Turkmenistan, and Qatar, we are trying to have a gas hub in the Asaluyeh region, and its preparations are being planned,” Owji told Iranian media.

“Asaluyeh is a port and energy hub in the southern Bushehr province in the Gulf. Iran will also continue its natural gas swap deals with neighboring countries, the Iranian oil minister added. Iran is estimated to hold the world’s second-largest natural gas reserves, second only to Russia, and ahead of Qatar, Turkmenistan, and the United States,” reports Oilprice.com. “With 32 trillion cubic meters, Iran is home to 16% of global natural gas reserves. A lot of Iran’s gas reserves are concentrated in the South Pars offshore field in the Persian Gulf, which it shares with Qatar. Total production for 2020 reached 234 billion cubic meters or a daily average of 645 million cubic meters.”

Iran struggled to develop its natural gas reserves when Western majors like TotalEnergy quit the region after Donald Trump reinstated sanctions against the country. As a result, Iran grew closer to Venezuela and Russia—two countries facing similar sanctions regimes.

A message from Flaviar

Discover Fine Drinks from Craft to Big Brands

Founded in 2012, Flaviar is the world’s largest premium spirits club, with operations in the US and Europe. Flaviar offers a better way to experience fine spirits.

Conversation Starters

• Work on the Paks II nuclear plant in Hungary will begin soon. “Hungary's Foreign and Trade Minister Peter Szijjártó said preparatory works would start for the Paks II nuclear power plant project in Hungary next month. It followed talks with Rosatom Director General Alexei Likhachev,” reports World Nuclear News. “The Paks II project was launched in early 2014 by an intergovernmental agreement between Hungary and Russia for two VVER-1200 reactors to be supplied by Rosatom, with the contract supported by a Russian state loan to finance the majority of the project. The application was submitted in July 2020 to construct Paks II alongside the existing Paks plant, 100 kilometres southwest of Budapest on the banks of the Danube river. Hungary's National Atomic Energy Office issued the construction licence in August 2022. In January this year, Hungary's Energy Minister Csaba Lantos said the Paks II plant was now expected to be completed in 2032.”

• Chinese imports increase 🤝 Oil prices rise. “Oil prices rose early on Wednesday as Chinese data showed crude imports into the world’s top oil importer jumped in May, recovering from a weak April,” reports Oilprice.com. “As of 8:13 a.m. EDT on Wednesday, ahead of the EIA weekly inventory report, WTI Crude prices were up by 0.99% at $72.45. The international benchmark, Brent Crude, traded at $76.98, up by 0.94% on the day.”

• US electricity from natural gas broke records over the winter. “U.S. electricity generation from natural gas reached a record-high 619 billion kilowatthours (BkWh) during the most recent winter heating season (November 1–March 31), averaging more than 120 BkWh per month and accounting for 38% of the country’s electricity generation mix,” reports the Energy Information Administration. “Electricity generation from natural gas increased in the United States this past winter due to increased demand for electricity and continued reductions in electricity generation from coal.”

Crom’s Blessing

Interested in sponsoring Grid Brief?

Email [email protected] for our media kit to learn more about sponsorship opportunities.