Best of POWER

(July 15, 2024)

Welcome to the mid-July issue of the Best of POWER, a bi-monthly e-newsletter from POWER magazine that provides important news and information that many in our audience have found to be must-reads.

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The Transformer Crisis: An Industry on the Brink | For several years now, the power sector has frantically raised the alarm about an impending transformer supply chain crisis, seeking to reinforce the availability of the component that many consider the backbone of the electric industry. But since the COVID pandemic, the crisis has descended full-blown and grown crippling. In April, global research and consultancy firm Wood Mackenzie warned that transformer lead times have continued an upward trajectory and now stand at 115 to 130 weeks—more than two years—on average. Lead times for large transformers, both substation power transformers and generator step-up (GSU) transformers, have surged to 120 to 210 weeks—or 2.3 to 4 years. At the same time, depending on the size and application, transformer prices have risen 60% to 80% on average since January 2020, driven upward by raw material commodities. Prices for grain-oriented electrical steel (GOES), though significantly volatile, have almost doubled since the pandemic, while copper prices surged upwards of 40%.

Siemens Energy, GE Vernova Each Will Build Two, 2-GW Gas-Fired Power Stations in Saudi Arabia | Siemens Energy and GE Vernova each announced the companies would support construction of large combined-cycle power plants in Saudi Arabia as part of that country’s plan to increase its supply of electricity to support a growing population.

The Chevron Deference Is Dead. What Does It Mean for the Power Sector? | The U.S. Supreme Court on June 28 overturned the Chevron doctrine—a forty-year-old precedent—significantly curtailing the power of federal agencies to interpret ambiguous statutory provisions, even in areas of agency expertise. The landmark 6–3 decision could have far-reaching effects on the power industry, with specific impact on sweeping energy regulations from the Environmental Protection Agency (EPA) to the Federal Energy Regulatory Commission (FERC), legal experts have suggested.

Plant Vogtle Units 3 and 4 Win POWER's Plant of the Year Award | Adding new reactors to the U.S.’s fleet of nuclear power plants doesn’t happen every day. In fact, prior to the addition of Plant Vogtle Units 3 and 4, it hadn’t been done from scratch in decades. Success was not easy, but perseverance paid off as Georgia Power now operates the largest thermal power plant in the country at Plant Vogtle.

The ADVANCE Act—Legislation Crucial for a U.S. Nuclear Renaissance—Clears Congress. Here's a Detailed Breakdown | The U.S. Senate has passed the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act, sweeping legislation that seeks to promote U.S. nuclear leadership, accelerate advanced nuclear technology development while preserving existing nuclear generation, bolster national security measures, and enhance regulatory efficiency to support new nuclear deployment.

In Case You Missed It: How PG&E Is Reducing Wildfire Risks Using Satellite Imagery | Wildfires have had a devastating impact on California and on the state’s largest utility company, Pacific Gas and Electric (PG&E). PG&E’s equipment has been linked to several major wildfires in the past including the 2018 Camp Fire (the deadliest wildfire in California history, killing 85 people, according to CAL FIRE, the state agency responsible for, among other things, protecting natural resources from fire) and the 2021 Dixie Fire (the second-largest wildfire in state history, burning more than 963,000 acres).

Analyst Says Nuclear Industry Is ‘Totally Irrelevant’ in the Market for New Power Capacity | Nuclear power has consistently provided about 19% to 20% of total annual U.S. electricity generation since 1990. It provides significant amounts of electricity in many other countries as well.

Microgrids Take Major Role for Reliability, Resiliency | The use of microgrids to provide reliable power for critical infrastructure is growing, and these off-grid installations also are becoming more prevalent as part of commercial and industrial (C&I) enterprises and residential neighborhoods. Early adopters of microgrids included healthcare facilities such as hospitals, along with data centers, government buildings, and other facilities at which reliability and resiliency of the electricity supply are essential. Today’s microgrid users also have recognized how the use of distributed energy resources (DERs) supports financial and sustainability benefits.

Supreme Court Halts EPA’s ‘Good Neighbor Plan’ | The U.S. Supreme Court in a 5–4 vote blocked enforcement of the Environmental Protection Agency’s (EPA’s) final “Good Neighbor Plan,” a rule intended to significantly cut smog-forming nitrogen oxide (NOx) pollution from power plants and other industrial facilities in 23 states. In the meantime, the applicants, which include the states of Ohio, Indiana, and West Virginia, among others petitioners, will not be required to comply with the rule, pending the disposition of their case filed in the U.S. Court of Appeals for the District of Columbia (D.C.) Circuit.

The World Wants Nuclear Power Again—America Can Lead | After a decades-long slowdown marked by fits and starts, the U.S. is once again building and innovating in nuclear power. In April, the second of two new nuclear units went into service at Georgia Power’s Vogtle plant. In Wyoming, TerraPower has broken ground for America’s first plant designed around an advanced nuclear reactor, capable of varying its output to fill in for fluctuations in wind and solar power. And in Europe, U.S. firms are teaming up to construct the first-ever nuclear power station in Poland.