Police offers stand guard near demonstrators blocking the entrance to a Luma Energy facility at the Puerto Rico Electric Authority (Prepa) Palo Seco Power Plant in Toa Baja, Puerto Rico, on Friday June 4, 2021.
Xavier Garcia | Bloomberg | Getty Images
When Hurricane Fiona hit Puerto Rico in September, Felipe Pérez was ready.
Pérez, the owner of local sandwich shop chain El Meson, equipped his stand-alone locations with power generators and water tanks in the event of a prolonged outage like the one after Hurricane Maria, the devastating storm that ravaged the island in 2017.
His business was one of the lucky ones. Many businesses were forced to shut down for weeks after Hurricane Fiona hit. And even for some businesses that quickly got electricity back, “the cost of operations was so high that they would rather close,” Pérez said.
The state of Puerto Rico’s power grid has been a sore spot for many island businesses and residents, leading to backlash against Luma Energy — the company brought in to operate and improve the grid after Hurricane Maria.
The Luma takeover
Luma Energy officially took over control of the island’s power grid in June 2021 for the Puerto Rico Electric Power Authority, or PREPA. The company, a joint venture between Houston-based Quanta Services and Calgary-based ATCO, was tasked with operating, maintaining and modernizing the island’s beaten-down grid.
Improvements since then appear to have been slow to come, with power outages becoming the norm even before Hurricane Fiona, according to residents and media reports, leading to seemingly growing dissatisfaction with Luma. In September, a Puerto Rico resident told local news station WAPA TV: “Here, you blow out a birthday candle and the power goes out.”
“Since [Hurricane] Maria, they have basically just restrung the wires, they fixed some of the transfer stations, and the basic generation system is still the same,” said Tom Sanzillo, director of financial analysis at the IEEFA. “That means we’re sort of nowhere, and nothing’s really been fundamentally invested in the grid.”
Island residents have also protested due to Luma’s services. In July, about two months before Hurricane Fiona hit Puerto Rico, hundreds of residents marched to Gov. Pedro Pierluisi’s home in Old San Juan, demanding the Luma contract be canceled.
Pierluisi told local newspaper El Nuevo Día that he asked Luma to make some management changes so the company could better handle the situation. Luma didn’t comment on those remarks but has said that the grid — which serves more than 1.4 million clients — had for decades been mismanaged by its predecessor, PREPA, and that “the more than 3,000 men and woman of LUMA are focused on restoring power to every customer impacted by Category 1 Hurricane Fiona and building and transforming the electric system for the future.”
“When we took over about 16 months ago, the situation of the power grid was 60% worse than the worst fourth-quartile utility in the country,” said Shay Bahramirad, senior vice president of engineering asset management and capital programs at Luma Energy.
But while most of the island may have power restored, customers still need to contend with crippling high energy costs.
Data from the U.S. Energy Information Administration shows that commercial customers in Puerto Rico on average pay 29.4 cents per kilowatt hour as of June 2022. That’s more than double the U.S. average of 12.9 cents per kWh. Residential customers, meanwhile, pay 27.68 cents per kWh on average, while the U.S. average is around 15 cents per kWh.
Luma’s Bahramirad said the company has “nothing to do with increased electricity costs,” adding that this is primarily a function of higher energy costs around the world. Energy prices have soared this year in part due to Russia’s invasion of Ukraine.
But Sanzillo of the IEEFA thinks this disparity could have been at least mitigated through improvements to the grid’s infrastructure.
“If you had changed considerable amounts of the system, you’d still have high prices — you can’t change everything overnight — but you would have been at least buffered a little bit,” Sanzillo said.
El Meson’s Pérez said he hasn’t received the electric bill for September yet but that he would not pay for “electricity that wasn’t consumed.”
All of this comes as Puerto Rico’s economy struggles to recover. FactSet data shows that Puerto Rico’s real GDP has fallen in nine of the past 10 years. On top of that, Puerto Rico’s population fell 11.8% from 2010 to 2020, while the overall U.S. population grew by 7.4% in that time, according to Census Bureau data.
“The exodus has been tremendous, especially among [young adults],” said Pérez. “The island needs young people who can assume leadership roles on the island.”
National Grid Renewables has broken ground on its 100 MW Apple River Solar Project in Polk County, Wisconsin.
The Wisconsin solar farm, which will use US-made First Solar Series 6 Plus bifacial modules, will be constructed by The Boldt Company, creating 150 construction and service jobs. Apple River Solar will generate over $36 million in direct economic benefits over its first 20 years.
Once it comes online in late 2025, Apple River Solar will supply clean energy to Xcel Energy, which serves customers throughout the Upper Midwest. According to National Grid Renewables, the solar farm will generate enough energy to power around 26,000 homes annually. It will also offset about 129,900 metric tons of carbon dioxide emissions each year – equivalent to taking 30,900 cars off the road.
“We are excited to see this project begin as it underscores our dedication to delivering clean, reliable and affordable energy to our customers,” said Karl Hoesly, President, Xcel Energy-Wisconsin and Michigan. “This project is an important step in those goals while bringing significant economic benefits to Polk County and the local townships.”
Electrekreported in February that Xcel Energy, Minnesota’s largest utility, expects to cut more than 80% – and possibly up to 88% – of its emissions by 2030, putting it on track to hit Minnesota’s goal of net zero by 2040. It also says it’s on track to achieve its clean energy goals for all the Upper Midwest states it serves – Minnesota, Wisconsin, North Dakota, South Dakota, and Michigan.
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Tesla has announced that it will finally deliver 500 kW charging as it is about to install its long-awaited V4 Supercharger cabinets.
The rollout of Supercharger V4 has been a strange one, to say the least.
Tesla has been deploying the new charging stations for two years and calling them “Supercharger V4”, but it has only been deploying the charging stalls.
Supercharger stations are made of two main parts: the stalls, which are where the charging cable is located, and the cabinets, which are generally located further back and include all the power electronics.
For all these new “Supercharger V4”, Tesla was actually using Supercharger V3 cabinets. This has been limiting the power output of the charging stations to 250 kW – although
Today, Tesla officially announced its “V4 Cabinet”, which the automaker claims will enable of “delivering up to 500kW for cars and 1.2MW for Semi.”
Here are the main features of the V4 Cabinet as per Tesla:
Faster charging: Supports 400V-1000V vehicle architectures, including 30% faster charging for Cybertruck. S3XY vehicles enjoy 250kW charge rates they already experience on V3 Cabinet — charging up to 200 miles in 15 minutes.
Faster deployments: V4 Cabinet powers 8 posts, 2X the stalls per cabinet. Lower footprint and complexity = more sites coming online faster.
Next-generation hardware: Cutting-edge power electronics designed to be the most reliable on the planet, with 3X power density enabling higher throughput with lower costs.
Tesla reports that its first sites with the new V4 Cabinets are going into permitting now. The company expects its first sites to open next year.
We recently reported about Tesla’s new Oasis Supercharger project, which includes larger solar arrays and battery packs to operate the charging station mostly off-grid.
Early in the deployment of the Supercharger network, Tesla promised to add solar arrays and batteries to all Supercharger stations, and Musk even said that most stations would be able to operate off-grid.
While Tesla did add solar and batteries to a few stations, the vast majority of them don’t have their own power system or have only minimal solar canopies.
Back in 2016, I asked Musk about this, and he said that it would now happen as Tesla had the “pieces now in place” with Supercharger V3, Powerpack V2, and SolarCity:
It took about 8 years, but it sounds like the pieces are now getting actually in place with Supercharger V4, Megapacks, and this new Oasis project.
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Hyundai has a new secret weapon it’s about ready to unleash. To revamp the brand in China and counter BYD’s surge, Hyundai is launching a new AI-powered EV next year. The new model will be Hyundai’s first dedicated electric car for the world’s largest EV market.
With the help of Haomo, a Chinese autonomous startup, Hyundai will launch its first EV equipped with generative AI. It will also be its first model designed specifically for China.
A Hyundai Motor official said (via The Korea Herald) the company is “working to load the software” onto the new EV model, “which will be released in the Chinese market next year.” The spokesperson added, “The level of autonomous driving is somewhere between 2 and 2.5.”
In comparison, Tesla’s Autopilot is considered a level 2 advanced driver assistance system (ADAS) on the SAE scale (0 to 5), meaning it offers limited hands-free features.
With Autopilot, you still have to keep your eyes on the road and hands on the steering wheel, or the system will notify you and eventually disengage.
Haomo’s system, DriveGPT, unveiled last spring, takes inspiration from the OpenAI’s popular ChatGPT.
The system can continuously update in real-time to optimize decision-making by absorbing traffic data patterns. According to Haomo, DriveGPT is used in around 20 models as it looks to play a bigger role in China.
Hyundai hopes new AI-powered EV boosts sales in China
Electric vehicle sales continue surging in China. According to Rho Motion, China set another EV sales record last month with 1.2 million units sold, up 50% from October 2023.
Over 8.4 million EVs were sold in China in the first ten months of 2024, a notable 38% increase from last year.
BYD continues to dominate its home market. According to Autovista24, BYD accounted for 32.9% of all PHEV and EV (NEV) sales in China through September, with over half of the top 20 best-selling EV models.
Tesla was second with a 6.5% share of the market, but keep in mind these numbers only include plug-in models (PHEV).
Like most foreign automakers, Hyundai is struggling to keep up with the influx of low-cost electric models in China. Beijing Hyundai’s sales have been slipping since 2017. Through September, Korean automaker’s share of the Chinese market fell to just 1.2%.
According to local reports, Hyundai is partnering with other local tech companies like Thundersoft, a smart cockpit provider, and others in China to power up its next-gen EVs
With its first AI-powered EV launching next year, Hyundai hopes to turn things around in the region quickly. The new model will be one of five to launch in China through 2026.
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