Electricity News in February 2022
Europe's Renewables Are Crowding Out Gas as Coal Phase-Out Slows
EU Renewable Energy Shift is cutting gas dependence as wind and solar expand, reshaping Europe's power mix, curbing emissions, and pressuring coal use amid a supply crisis and rising natural gas prices.
Key Points
An EU trend where wind and solar growth reduce gas reliance, curb coal, and lower power-sector emissions.
✅ Wind and solar displace gas in EU power mix
✅ Coal use rises as gas prices surge
✅ Emissions fall, but not fast enough for 1.5 C target
The European Union’s renewable energy sources are helping reduce its dependence on natural gas, under the current European electricity pricing framework, that’s still costing the region dearly.
Renewables growth has helped reduce the EU’s dependence on gas, as wind and solar outpaced gas across the bloc last year, which has soared in price since the middle of last year as the region grapples with a supply crisis that’s dealt blows to industries as well as ordinary consumers’ pockets. More than half of new renewable generation since 2019 has replaced gas power, according to a study by London-based climate think tank Ember, with the rest replacing mainly nuclear and coal sources.
“These are moments and paradigm shifts when governments and businesses start taking this much more seriously,” said Charles Moore, the lead author on the study, amid Covid-19 responses accelerating the transition across Europe. “The alternatives are available, they are cheaper, and they are likely to get even cheaper and more competitive. Renewables are now an opportunity, not a cost.”
The high price of gas relative to coal has meant utilities are leaning more on coal as a back-up for renewable generation, as stunted hydro and nuclear output has constrained low-carbon alternatives in parts of Europe, which risks the trajectory of Europe’s phase-out of the dirtiest fossil fuel. Last year, the EU’s coal use jumped disproportionately high relative to the rise in power generation as high gas prices boosted the relative profitability of burning coal instead.
Europe Coal Use Jumps as Costly Gas Turns Firms to Dirty Fuel
EU power generation from renewables reached a record high in 2021 of 547 terawatt-hours last year, accounting for an 11% increase compared to two years before, according to Ember’s Europe Electricity Review. It’s more than doubled in a decade, representing a 157% increase since 2011.
Gas use declined last year for the second year in a row, as Europe explores storing electricity in gas pipelines to leverage existing infrastructure, reaching a level 8.1% lower than 2019. By contrast, coal use fell just 3.3% in the same period. Put simply, wind and solar did a great job of replacing coal during 2011-2019 but since then renewables have mostly been nudging out gas-fired power stations.
Ember’s Moore warned that the slowing phase-out of coal might require legislation to accelerate. The International Energy Agency recommends OECD countries cease using coal by the end of the decade to ensure alignment with the Paris Agreement target of keeping the world’s temperature increase below 1.5 Celsius, with renewables poised to eclipse coal globally by the mid-2020s lending momentum.
“Europe can accelerate the phasing out of coal by building more renewable energy and faster,” said Felicia Aminoff, an energy-transition analyst at BloombergNEF. “Wind and solar have no fuel costs, so as soon as you have made the initial investments to build wind and solar capacity it will start replacing generation that uses any kind of fuel, whether it is coal or gas.”
Overall, EU power sector emissions fell at less than half the rate required to hit that target, Ember’s report said. Spain produced the largest emissions reduction in the last two years, with renewables adding about 25 TWh and gas falling 15 TWh, and in Germany renewables topped coal and nuclear for the first time to support the shift. In contrast, heavy use of coal dragged down the bloc’s climate progress in Poland, where coal use rose about 8 TWh and renewables gained only 4 TWh.
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Europe Is Losing Nuclear Power Just When It Really Needs Energy
Europe's Nuclear Energy Policy shapes responses to the energy crisis, soaring gas prices, EU taxonomy rules, net-zero goals, renewables integration, baseload security, SMRs, and Russia-Ukraine geopolitics, exposing cultural, financial, and environmental divides.
Key Points
A policy guiding nuclear exits or expansion to balance energy security, net-zero goals, costs, and EU taxonomy.
✅ Divergent national stances: phase-outs vs. new builds
✅ Costs, delays, and waste challenge large reactors
✅ SMRs, renewables, and gas shape net-zero pathways
As the Fukushima disaster unfolded in Japan in 2011, then-German Chancellor Angela Merkel made a dramatic decision that delighted her country’s anti-nuclear movement: all reactors would be ditched.
What couldn’t have been predicted was that Europe would find itself mired in one of the worst energy crises in its history. A decade later, the continent’s biggest economy has shut down almost all its capacity already. The rest will be switched off at the end of 2022 — at the worst possible time.
Wholesale power prices are more than four times what they were at the start of the coronavirus pandemic. Governments are having to take emergency action to support domestic and industrial consumers faced with crippling bills, which could rise higher if the tension over Ukraine escalates. The crunch has not only exposed Europe’s supply vulnerabilities, but also the entrenched cultural and political divisions over the nuclear industry and a failure to forge a collective vision.
Other regions meanwhile are cracking on, challenging the idea that nuclear power is in decline worldwide. China is moving fast on nuclear to try to clean up its air quality. Its suite of reactors is on track to surpass that of the U.S., the world’s largest, by as soon as the middle of this decade. Russia is moving forward with new stations at home and has more than 20 reactors confirmed or planned for export construction, according to the World Nuclear Association.
“I don’t think we’re ever going to see consensus across Europe with regards to the continued running of existing assets, let alone the construction of new ones,” said Peter Osbaldstone, research director for power and renewables at Wood Mackenzie Group Ltd. in the U.K. “It’s such a massive polarizer of opinions that national energy policy is required in strength over a sustained period to support new nuclear investment.”
France, Europe’s most prolific nuclear energy producer, is promising an atomic renaissance as its output becomes less reliable. Britain plans to replace aging plants in the quest for cleaner, more reliable energy sources. The Netherlands wants to add more capacity, Poland also is seeking to join the nuclear club, and Finland is starting to produce electricity later this month from its first new plant in four decades.
Belgium and Spain, meanwhile, are following Germany’s lead in abandoning nuclear, albeit on different timeframes. Austria rejected it in a referendum in 1978.
Nuclear power is seen by its proponents as vital to reaching net-zero targets worldwide. Once built, reactors supply low-carbon electricity all the time, unlike intermittent wind or solar.
Plants, though, take a decade or more to construct at best and the risk is high of running over time and over budget. Finland’s new Olkiluoto-3 unit is coming on line after a 12-year delay and billions of euros in financial overruns.
Then there’s the waste, which stays hazardous for 100,000 years. For those reasons European Union members are still quarreling over whether nuclear even counts as sustainable.
Electorates are also split. Polling by YouGov Plc published in December found that Danes, Germans and Italians were far more nuclear-skeptic than the French, British or Spanish.
“It comes down to politics,” said Vince Zabielski, partner at New York-based law firm Pillsbury Winthrop Shaw Pittman LLP, who was a nuclear engineer for 15 years. “Everything political ebbs and flows, but when the lights start going off people have a completely different perspective.”
What’s Behind Europe’s Skyrocketing Energy Prices
Indeed, there’s a risk of rolling blackouts this winter. Supply concerns plaguing Europe have sent gas and electricity prices to record levels and inflation has ballooned. There’s also mounting tension with Russia over a possible invasion of Ukraine, which could lead to disrupted supplies of gas. All this is strengthening the argument that Europe needs to reduce its dependence on international sources of gas.
Europe will need to invest 500 billion euros ($568 billion) in nuclear over the next 30 years to meet growing demand for electricity and achieve its carbon reduction targets, according to Thierry Breton, the EU’s internal market commissioner. His comments come after the bloc unveiled plans last month to allow certain natural gas and nuclear energy projects to be classified as sustainable investments.
“Nuclear power is a very long-term investment and investors need some kind of guarantee that it will generate a payoff,” said Elina Brutschin at the International Institute for Applied Systems Analysis. In order to survive in liberalized economies like the EU, the technology needs policy support to help protect investors, she said.
That already looks like a tall order. The European Commission has been told by a key expert group that the labeling risks raising greenhouse gas emissions and undermining the bloc’s reputation as a bastion for environmentally friendly finance.
Austria has threatened to sue the European Commission over attempts to label atomic energy as green. The nation previously attempted a legal challenge, when the U.K. was still an EU member, to stop the construction of Electricite de France SA’s Hinkley Point C plant, in the west of England. It has also commenced litigation against new Russia-backed projects in neighboring Hungary.
Germany, which has missed its carbon emissions targets for the past two years, has been criticized by some environmentalists and climate scientists for shutting down a supply of clean power at the worst time, despite arguments for a nuclear option for climate policy. Its final three reactors will be halted this year. Yet that was never going to be reversed with the Greens part of the new coalition government.
The contribution of renewables in Germany has almost tripled since the year before Fukushima, and was 42% of supply last year. That’s a drop from 46% from the year before and means the country’s new government will have to install some 3 gigawatts of renewables — equivalent to the generating capacity of three nuclear reactors — every year this decade to hit the country's 80% goal.
“Other countries don’t have this strong political background that goes back to three decades of anti-nuclear protests,” said Manuel Koehler, managing director of Aurora Energy Research Ltd., a company analyzing power markets and founded by Oxford University academics.
At the heart of the issue is that countries with a history of nuclear weapons will be more likely to use the fuel for power generation. They will also have built an industry and jobs in civil engineering around that.
Germany’s Greens grew out of anti-nuclear protest movements against the stationing of U.S. nuclear missiles in West Germany. The 1986 Chernobyl meltdown, which sent plumes of radioactive fallout wafting over parts of western Europe, helped galvanize the broader population. Nuclear phase-out plans were originally laid out in 2002, but were put on hold by the country's conservative governments. The 2011 Fukushima meltdowns reinvigorated public debate, ultimately prompting Merkel to implement them.
It’s not easy to undo that commitment, said Mark Hibbs, a Bonn, Germany-based nuclear analyst at Carnegie Endowment for International Peace, or to envision any resurgence of nuclear in Germany soon: “These are strategic decisions, that have been taken long in advance.”
In France, President Emmanuel Macron is about to embark on a renewed embrace of nuclear power, even as a Franco-German nuclear dispute complicates the debate. The nation produces about two-thirds of its power from reactors and is the biggest exporter of electricity in Europe. Notably, that includes anti-nuclear Germany and Austria.
EDF, the world’s biggest nuclear plant operator, is urging the French government to support construction of six new large-scale reactors at an estimated cost of about 50 billion euros. The first of them would start generating in 2035.
But even France has faced setbacks. Development of new projects has been put on hold after years of technical issues at the Flamanville-3 project in Normandy. The plant is now scheduled to be completed next year.
In the U.K., Business Secretary Kwasi Kwarteng said that the global gas price crisis underscores the need for more home-generated clean power. By 2024, five of Britain’s eight plants will be shuttered because they are too old. Hinkley Point C is due to be finished in 2026 and the government will make a final decision on another station before an election due in 2024.
One solution is to build small modular reactors, or SMRs, which are quicker to construct and cheaper. The U.S. is at the forefront of efforts to design smaller nuclear systems with plans also underway in the U.K. and France. Yet they too have faced delays. SMR designs have existed for decades though face the same challenging economic metrics and safety and security regulations of big plants.
The trouble, as ever, is time. “Any investment decisions you make now aren’t going to come to fruition until the 2030s,” said Osbaldstone, the research director at Wood Mackenzie. “Nuclear isn’t an answer to the current energy crisis.”
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Putting Africa on the path to universal electricity access
West and Central Africa Electricity Access hinges on utility reform, renewable energy, off-grid solar, mini-grids, battery storage, and regional grid integration, lowering costs, curbing energy poverty, and advancing SDG7 with sustainable, reliable power solutions.
Key Points
Expanding reliable power via renewables, grid trade, and off-grid systems to cut energy poverty and unlock inclusive growth.
✅ Utility reform lowers costs and improves service reliability
✅ Regional grid integration enables clean, least-cost power trade
✅ Off-grid solar and mini-grids electrify remote communities
As commodity prices soar and leaders around the world worry about energy shortages and prices of gasoline at the pump, millions of people in Africa still lack access to electricity. One-half of the people on the continent cannot turn on a fan when temperatures go up, can’t keep food cool, or simply turn the lights on. This energy access crisis must be addressed urgently.
In West and Central Africa, only three countries are on track to give every one of their people access to electricity by 2030. At this slow pace, 263 million people in the region will be left without electricity in ten years. West Africa has one of the lowest rates of electricity access in the world; only about 42% of the total population, and 8% of rural residents, have access to electricity.
These numbers, some far too big, others far too small, have grave consequences. Electricity is an important step toward enhancing people’s opportunities and choices. Access is key to boosting economic activity and contributes to improving human capital, which, in turn, is an investment in a country’s potential.
Without electricity, children can’t do their schoolwork at night. Businesspeople can’t get information on markets or trade with each other. Worse, as the COVID-19 pandemic has shown so starkly, limited access to energy constrains hospital and emergency services, further endangering patients and spoiling precious medicine.
What will it take to power West and Central Africa?
As the African continent recovers from COVID-19 impacts, now is the critical time to accelerate progress towards universal energy access to drive the region’s economic transformation, promote socio-economic inclusion, and unlock human capital growth. Without reliable access to electricity, the holes in a country’s social fabric can grow bigger, those without access growing disenchanted with inequality.
Tackling the Africa region’s energy access crisis requires four bold approaches.
First, this involves making utilities financially viable. Many power providers in the region are cash-strapped, operate dilapidated and aging generation fleet and infrastructure. Therefore, they can’t deliver reliable and affordable electricity to their customers, let alone deliver electricity to those that currently must rely on inadequate alternatives to electricity. Overall, fewer than half of the utilities in Sub-Saharan Africa recover their operating costs, resulting in GDP losses as high as four percent in some countries.
Improving the performance of national utilities and greening their power generation mix is a prerequisite to lowering the costs of supply, thus expanding electricity access to those currently unelectrified, usually lower-income and often remote households.
In that effort — and this a critical second point — West and Central African countries need to look beyond their borders and further integrate their national utilities and grids to other systems in the region. The region has an abundance of affordable clean energy sources — hydropower in Guinea, Mali, and Cote d’Ivoire; high solar irradiation in the Sahel — but the regional energy market is fragmented.
Without efficient regional trade, many countries are highly dependent on one or two energy resources and heavily reliant on inefficient, polluting generation sources, requiring fuel imports linked to volatile international oil prices.
The vision of an integrated regional power market in countries of the Economic Community of West African States (ECOWAS) is coming a step closer to reality thanks to an ambitious program of cross-border interconnection projects. If countries take full advantage of this grid, the share of the region’s electricity consumption traded across borders would more than double from 8 percent today to about 17 percent by 2030. Overall, regional power trade could lower the lifecycle cost of West Africa’s power generation system by about 10 percent and provide greener energy by 2030.
Third, electrification efforts need to be open to private sector investments and innovations, such as renewables like solar energy and battery storage, which have made a tremendous impact in enabling access for millions of poor and underserved households. Specifically, off-grid solar systems and mini-grids have become a proven reliable way to provide affordable modern electricity services, powering homes in rural communities, healthcare facilities, and schools.
Burkina Faso, which enjoys one of the best solar radiation conditions in the region, is a successful example of leveraging the transformative impact of solar energy and battery storage. With support from the World Bank, the country is deploying solar energy to power its national grid, as well as mini-grids and individual household systems. Solar power with battery storage is competitive in Burkina Faso compared to other technologies and its government was successful in attracting private sector investments to support this technology.
Last, achieving universal electricity access will involve significant commitment from political leaders, especially developing policies and regulations that can attract high-quality investments.
A significant step in that direction was achieved at the World Bank’s 2020 Annual Meetings with a commitment to set up the Powering Transformation Platform in each African country. Through the platform, each government will set their country-specific vision, goals and metrics, track progress, and explore and exchange innovative ideas and emerging best practices according to their own national energy needs and plans.
This platform will bring together the elements needed to bring electricity to all in West and Central Africa and help attract new financing.
Over the last 3 years, the World Bank has doubled its investments to increase electricity access rates in Central and West Africa. We have committed more than $7.8 billion to support 40 electricity access programs, of which more than half directly support new electricity connections. These operations are expected to provide access to 16 million people. The aim is to increase electricity access rates in West and Central Africa from 50 percent today to 64 percent by 2026.
However, World Bank’s financing alone is not enough. Our estimates show that nearly $20 billion are required for universal electrification across Sub-Saharan Africa, aligning with calls to quadruple power investment to meet demand, with about $10 billion annually needed for West and Central Africa.
Closing the funding gap will require mobilizing traditional and new partners, especially the private sector, which is willing to invest if enabling conditions are in place, as well as philanthropic capital, that can fill in the space in areas not yet commercially attractive. The World Bank is ready to play a catalytical role in leveraging new investments.
This is vital as less than a decade remains to reach the 2030 SDG7 goal of ensuring electricity for all through affordable, reliable, and modern energy services. As headlines worldwide focus on soaring energy prices in the developed world, we cannot lose sight of the vast populations in Africa that still cannot access basic energy services. This is the true global energy crisis.
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Electricity bills on the rise in Calgary after
Calgary Electricity Price Increase signals higher ENMAX bills as grid demand surges; wholesale market volatility, fixed vs floating rates, kWh costs, and transmission charges drive above-average pricing across Alberta this winter.
Key Points
A market-led rise in Calgary power rates as grid demand and wholesale volatility affect fixed and floating plans.
✅ ENMAX warns of higher winter prices amid record grid demand
✅ Fixed rates hedge wholesale volatility; floating tracks spot market
✅ Transmission and distribution fees rise 5-10 percent annually
Calgarians should expect to be charged more for their electricity bills amid significant demand on the grid and a transition to above-average rates across Alberta.
ENMAX, one of the most-used electricity providers in the city, has sent an email to customers notifying them of higher prices for the rest of the winter months.
“Although fluctuations in electricity market prices are normal, we have seen a general trend of increasing rates over time,” the email to customers read.
“The price volatility we are forecasting is due to market factors beyond a single energy provider, including but not limited to expectations for a colder-than-normal winter and changes in electricity supply and demand in Alberta’s wholesale market. ”
Earlier this month, the province set a record for electricity usage during a bitterly cold stretch of weather.
According to energy comparison website energyrates.ca, Alberta’s energy prices have increased by 34 per cent between November 2020 and 2021.
“One of the reasons that this increase seems so significant is we’re actually coming off of a low period in the market,” the site’s founder Joel MacDonald told Global News. “You’re seeing rates well below average transitioning to well above average.”
According to ENMAX’s rate in January, the price of electricity currently sits at 15.9 cents per kilowatt-hour, with an electricity price spike from 7.9 cents per kilowatt-hour last year.
MacDonald said prices for electricity have been relatively low since 2018 but a swing in the price of oil has created more activity in the province’s industrial sector, and in turn more demand on the power grid.
According to MacDonald, the price increase can also be attributed to the removal of a consumer price cap that limited regulated rates to 6.8 cents per kilowatt-hour for households and small businesses with lower demand, which, after the carbon tax was repealed, initially remained in place.
Although the cap was scrapped by the UCP three years ago, he said energy bills now depend on the rate set by the market.
“What’s increased now recently is actually the price per kilowatt, and the (transmission and distribution) charges have only increased, but annually they increase between five and 10 per cent,” MacDonald said. “So the portion of your bill that’s increasing is different than what Albertans are typically used to, or at least in recent memory.”
But Albertans do have options, MacDonald said.
As part of its email to customers, ENMAX sent a list of energy saving tips to reduce energy consumption in people’s homes, including using cold water for laundry and avoiding dryer use, energy-efficient lightbulbs and unplugging electronics when they are not in use.
Retailers also offer contracts with floating or fixed rates for consumers.
“Fixed rates, obviously, you’re going to pick your price. It’s going to be the same each and every single month,” MacDonald said. “Floating rate is based off the wholesale spot market, and that has been exceptionally high the last few months.”
He said consumers looking to save money when electricity prices are high should look into a fixed rate.
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California electricity pricing changes pose an existential threat to residential rooftop solar
California Rooftop Solar Rate Reforms propose shifting net metering to fixed access fees, peak-demand charges, and time-of-use pricing, aligning grid costs, distributed generation incentives, and retail rates for efficient, least-cost electricity and fair cost recovery.
Key Points
Policies replacing net metering with fixed fees, demand charges, and time-of-use rates to align costs and incentives.
✅ Large fixed access charge funds grid infrastructure
✅ Peak-demand pricing reflects capacity costs at system peak
✅ Time-varying rates align marginal costs and emissions
The California Public Service Commission has proposed revamping electricity rates for residential customers who produce electricity through their rooftop solar panels. In a recent New York Times op‐ed, former Governor Arnold Schwarzenegger argued the changes pose an existential threat to residential rooftop solar. Interest groups favoring rooftop solar portray the current pricing system, often called net metering, in populist terms: “Net metering is the one opportunity for the little guy to get relief, and they want to put the kibosh on it.” And conventional news coverage suggests that because rooftop solar is an obvious good development and nefarious interests, incumbent utilities and their unionized employees, support the reform, well‐meaning people should oppose it. A more thoughtful analysis would inquire about the characteristics and prices of a system that supplies electricity at least cost.
Currently, under net metering customers are billed for their net electricity use plus a minimum fixed charge each month. When their consumption exceeds their home production, they are billed for their net use from the electricity distribution system (the grid) at retail rates. When their production exceeds their consumption and the excess is supplied to the grid, residential consumers also are reimbursed at retail rates. During a billing period, if a consumer’s production equaled their consumption their electric bill would only be the monthly fixed charge.
Net metering would be fine if all the fixed costs of the electric distribution and transmission systems were included in the fixed monthly charge, but they are not. Between 66 and 77 percent of the expenses of California private utilities do not change when a customer increases or decreases consumption, but those expenses are recovered largely through charges per kWh of use rather than a large monthly fixed charge. Said differently, for every kWh that a PG&E solar household exported into the grid in 2019, it saved more than 26 cents, on average, while the utility’s costs only declined by about 8 cents or less including an estimate of the pollution costs of the system’s fossil fuel generators. The 18‐cent difference pays for costs that don’t change with variation in a household’s consumptions, like much of the transmission and distribution system, energy efficiency programs, subsidies for low‐income customers, and other fixed costs. Rooftop solar is so popular in California because its installation under a net metering system avoids the 18 cents, creating a solar cost shift onto non-solar customers. Rooftop solar is not the answer to all our environmental needs. It is simply a form of arbitrage around paying for the grid’s fixed costs.
What should electricity tariffs look like? This article in Regulation argues that efficient charges for electricity would consist of three components: a large fixed charge for the distribution and transmission lines, meter reading, vegetation trimming, etc.; a peak‐demand charge related to your demand when the system’s peak demand occurs to pay for fixed capacity costs associated with peak use; and a charge for electricity use that reflects the time‐ and location‐varying cost of additional electricity supply.
Actual utility tariffs do not reflect this ideal because of political concerns about the effects of large fixed monthly charges on low‐income customers and the optics of explaining to customers that they must pay 50 or 60 dollars a month for access even if their use is zero. Instead, the current pricing system “taxes” electricity use to pay for fixed costs. And solar net metering is simply a way to avoid the tax. The proposed California rate reforms would explicitly impose a fixed monthly charge on rooftop solar systems that are also connected to the grid, a change that could bring major changes to your electric bill statewide, and would thus end the fixed‐cost avoidance. Any distributional concerns that arise because of the effect of much larger fixed charges on lower‐income customers could be managed through explicit tax deductions that are proportional to income.
The current rooftop solar subsidies in California also should end because they have perverse incentive effects on fossil fuel generators, even as the state exports its energy policies to neighbors. Solar output has increased so much in California that when it ends with every sunset, natural gas generated electricity has to increase very rapidly. But the natural gas generators whose output can be increased rapidly have more pollution and higher marginal costs than those natural gas plants (so called combined cycle plants) whose output is steadier. The rapid increase in California solar capacity has had the perverse effect of changing the composition of natural gas generators toward more costly and polluting units.
The reforms would not end the role of solar power. They would just shift production from high‐cost rooftop to lower‐cost centralized solar production, a transition cited in analyses of why electricity prices are soaring in California, whose average costs are comparable with electricity production in natural gas generators. And they would end the excessive subsidies to solar that have negatively altered the composition of natural gas generators.
Getting prices right does not generate citizen interest as much as the misguided notion that rooftop solar will save the world, and recent efforts to overturn income-based utility charges show how politicized the debate remains. But getting prices right would allow the decentralized choices of consumers and investors to achieve their goals at least cost.
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UK windfarms generate record amount of electricity during Storm Malik
UK Wind Power Record as Storm Malik boosts renewable electricity, with National Grid reporting 19,500 megawatts in Scotland, cutting fossil fuel use and easing market prices on the path toward net zero targets.
Key Points
An all-time peak in UK wind generation, reaching 19,500 MW during Storm Malik, supplying over half of electricity.
✅ Peak: 19,500 MW, over 50% of UK electricity.
✅ Driven by Storm Malik; strongest winds in Scotland.
✅ Lowered market prices; reduced fossil fuel generation.
The UK’s windfarms generated a new record for wind power generation over the weekend as Storm Malik battered parts of Scotland and northern England.
Wind speeds of up to 100 miles an hour recorded in Scotland's wind farms helped wind power generation to rise to a provisional all-time high of more than 19,500 megawatts – or more than half the UK’s electricity – according to data from National Grid.
National Grid’s electricity system operator said that although it recognised the new milestone towards the UK’s ‘net zero’ carbon future, where wind is leading the power mix according to recent analyses, it was “also thinking of those affected by Storm Malik”.
The deadly storm caused widespread disruption over the weekend, leaving thousands without electricity and killing two people.
Many of the areas affected by Storm Malik were also hit in December by Storm Arwen, which caused the most severe disruption to power supplies since 2005, leaving almost a million homes without power for up to 12 days.
The winter storms have followed a summer of low wind power generation across the UK and Europe, even though wind produced more electricity than coal for the first time in 2016, which caused increased use of gas power plants during a global supply shortfall.
Gas markets around the world reached record highs due to rising demand for gas, and UK electricity prices hit a 10-year high as economies have rebounded from the economic shock of the Covid-19 pandemic. In the UK, electricity market prices reached an all-time high of more than £424.60 a megawatt-hour in September, compared with an average price of £44/MWh in the same month the year before.
The UK’s weekend surge in renewable electricity helped to provide a temporary reprieve from its heavy reliance on fossil fuel generation in recent months, and on some days wind has been the main source of UK electricity, which has caused market prices to reach record highs.
The market price for electricity on Saturday fell to £150.59 pounds a megawatt-hour, the lowest level since 3 January, while UK peak power prices have risen with the price for power on Sunday, when wind was expected to fall, jumping to more than £193.50/MWh.
The new wind generation record bettered a high recorded last year when the gusty May bank holiday weekend recorded 17.6GW.
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BC Hydro: 2021 was a record-breaking year for electricity demand
BC Hydro 2021 Peak Load Records highlight record-breaking electricity demand, peak load spikes, heat dome impacts, extreme cold, and shifting work-from-home patterns managed by a flexible hydroelectric system and climate-driven load trends.
Key Points
Record-breaking electricity demand peaks from extreme heat and cold that reshaped daily load patterns across BC in 2021.
✅ Heat dome and deep freeze drove sustained peak electricity demand
✅ Peak load built gradually, reflecting work-from-home behavior
✅ Flexible hydroelectric system adapts quickly to demand spikes
From June’s heat dome to December’s extreme cold, 2021 was a record-setting year, according to BC Hydro, and similar spikes were noted as Calgary's electricity use surged in frigid weather.
On Friday, the energy company released a new report on electricity demand, and how extreme temperatures over extended periods of time, along with growing scrutiny of crypto mining electricity use, led to record peak loads.
“We use peak loads to describe the electricity demand in the province during the highest load hour of each day,” Kyle Donaldson, BC Hydro spokesperson, said in a media release.
“With the heat dome in the summer and the sustained cold temperatures in December, we saw more record-breaking hours on more days last year than any other single year.”
According to BC Hydro, during summer, the Crown corporation recorded 19 of its top 25 all-time summer daily peak records — including breaking its all-time summer peak hourly demand record.
In December, which saw extremely cold temperatures and heavy snowfall, BC Hydro said its system experienced the highest and longest sustained load levels ever, as it activated its winter payment plan to assist customers.
Overall, BC Hydro says it has experienced 11 of its top 25 all-time daily peak records this winter, adding that Dec. 27 broke its all-time high peak hourly demand record.
“BC Hydro’s hydroelectric system is directly impacted by variations in weather, including drought conditions that require adaptation, and in 2021 more electricity demand records were broken than any other year prior, largely because of the back-to-back extreme temperatures lasting for days and weeks on end,” reads the report.
The energy company expects this trend to continue, noting that it has broken the peak record five times in the past five years, and other jurisdictions such as Quebec consumption record have also shattered consumption records.
It also noted that peak demand patterns have also changed since the first year of the COVID-19 pandemic, with trends seen during Earth Hour usage offering context.
“When the previous peak hourly load record was broken in January 2020, load displayed sharper increases and decreases throughout the day, suggesting more typical weather and behaviour,” said the report.
“In contrast, the 2021 peak load built up more gradually throughout the day, suggesting more British Columbians were likely working from home, or home for the holidays – waking up later and home earlier in the evening – as well as colder weather than average.”
BC Hydro also said “current climate models suggest a warming trend continuing in years to come which could increase demand year-round,” but noted that its flexible hydroelectric system can meet changes in demand quickly.
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Nevada on track to reach RPS mandate of 50% renewable electricity by 2030: report
Nevada Renewable Portfolio Standard 2030 targets 50% clean energy, advancing solar, geothermal, and wind, cutting GHG emissions, phasing out coal, and expanding storage, EV infrastructure, and in-state renewables under PUCN oversight and tax abatements.
Key Points
A state mandate requiring 50% of electricity from renewables by 2030, driving solar, geothermal, wind, and storage.
✅ 50% clean power by 2030; 100% carbon-free target by 2050
✅ Growth in solar, geothermal, wind; coal phase-out; natural gas remains
✅ RETA incentives spur 6.1 GW capacity, jobs, and in-state investment
Nevada is on track to meet its Renewable Portfolio Standard of 50% of electricity generated by renewable energy sources by 2030, according to the Governor's Office of Energy's annual Status of Energy Report.
Based on compliance reports the Public Utilities Commission of Nevada has received, across all providers, about 20% of power is currently generated by renewable resources, and, nationally, renewables ranked second in 2020 as filings show Nevada's investor-owned utility and other power providers have plans to reach the state's ambitious RPS of 50% by 2030, according to the report released Jan. 28.
"Because transportation and electricity generation are Nevada's two largest contributors to greenhouse gas emissions, GOE's program work in 2021 underscored our focus on transportation electrification and reaching the state's legislatively required renewable portfolio standard," GOE Director David Bobzien said in a statement Jan. 28. "While electricity generated from renewable resources currently accounts for about 25% of the state's electricity, a share similar to projections that renewables will soon provide about one-fourth of U.S. electricity overall, we continue to collaborate with the Public Utilities Commission of Nevada, electricity providers, the renewable energy industry and conservation organizations to ensure Nevada reaches our target of 50% clean energy by 2030."
The state's RPS, enacted in 1997 and last modified in 2019, requires an increase in renewable energy, starting with 22% in 2020 and increasing to 50% by 2030. The increase in renewables will reduce GHG emissions and help the state reach its goal of 100% carbon-free power by 2050, while states like Rhode Island have a 100% by 2030 plan, highlighting varying timelines.
Renewable additions
The state added 1.332 GW of renewable capacity in 2021 as part of the Renewable Energy Tax Abatement program, at a time when U.S. renewable energy hit a record 28% in April, for a total renewable capacity of 6.117 GW, according to the report.
The RETA program awards partial sales and use tax and partial property-tax abatements to eligible renewable energy facilities, which increase Nevada's tax revenue and create jobs in a growing industry. Eligible projects must employ at least 50% Nevada workers, pay 175% of Nevada's average wage during construction, and offer health care benefits to workers and their dependents.
Since its adoption in 2010, the GOE has approved 60 projects, including large-scale solar PV, solar thermal, biomass, geothermal and wind projects throughout the state, according to the report. Projects granted abatements in 2021 include:
- 100-MW Citadel Solar Project
- 150-MW Dry Lake Solar + Storage Project
- 714-MW Gemini Solar Project
- 55-MW North Valley Power Geothermal Project
- 113-MW Boulder Flats Solar Project
- 200-MW Arrow Canyon Solar Project
"Nevada does not produce fossil fuels of any significant amount, and gasoline, jet fuel and natural gas for electricity or direct use must be imported," according to the report. "Transitioning to domestically produced renewable resources and electrified transportation can provide cost savings to Nevada residents and businesses, as seen in Idaho's largely renewable mix today, while reducing GHG emissions. About 86% of the fuel for energy that Nevada consumes comes from outside the state."
Phasing out coal plants
Currently, more than two-thirds of the state's electricity is produced by natural gas-fired power plants, with renewables covering most of the remaining generation, according to the report. Nevada continues to phase out its remaining coal power plants, as renewables surpassed coal nationwide in 2022, which provide less than 10% of produced electricity.
"Nevada has seen a significant increase in capturing its abundant renewable energy resources such as solar and geothermal," according to the report. "Renewable energy production continues to grow, powering Nevada homes and business and serves to diversify the state's economy by exporting solar and geothermal to neighboring states, as California neared 100% renewable electricity for the first time. Nevada has more than tripled its renewable energy production since 2011."
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Quebec shatters record for electricity consumption once again
Hydro Quebec Power Consumption Record surges amid extreme cold, peak demand, and grid stress, as Hydro-Quebec urges energy conservation, load management, and reduced heating during morning and evening peaks across Montreal and southern Quebec.
Key Points
Quebec's grid hit 40,300 MW during an extreme cold snap, setting a new record and prompting conservation appeals.
✅ Lower thermostats 1-2 C in unused rooms during peak hours
✅ Delay dishwashers, dryers, and hot water use to off-peak
✅ Peak windows: 6-9 a.m. and 4-8 p.m.; import power if needed
Hydro Quebec says it has once again set a new record for power consumption, echoing record-breaking demand in B.C. in 2021 as extreme cold grips much of the province.
An extreme cold warning has been in effect across southern Quebec since Friday morning, straining the system, just as Calgary's electricity use soared during a frigid February, as Quebecers juggle staying warm and working from home.
Hydro Québec recorded consumption levels reaching 40,300 megawatts as of 8 a.m. Friday, breaking a previous record of 39,000 MW (with B.C. electricity demand hit an all-time high during a similar cold snap) that was broken during another cold snap on Jan 11.
The publicly owned utility is now asking Quebecers to reduce their electricity consumption as much as possible today and tomorrow, a move consistent with clean electricity goals under federal climate pledges, predicting earlier in the morning the province would again reach an all-time high.
Reducing heating by just one or two degrees, especially in rooms that aren't being used, is one step that people can take to limit their consumption. They can also avoid using large appliances like the dishwasher and clothing dryer as often, and shortening the use of hot water.
"They're small actions, but across millions of clients, it makes a difference," said Cendrix Bouchard, a spokesperson with Hydro Québec, while speaking with Tout un matin.
"We understand that asking this may pose challenges for some who are home throughout the day because they are working remotely, but if people are able to contribute, we appreciate it."
The best time to try and limit electricity usage is in the morning and evening, when electricity usage tends to peak, Bouchard said.
The province can import electricity from other regions if Quebec's system reaches its limits, even as the utility pursues selling to the United States as part of its long-term strategy, he added.
Temperatures dropped to –24 C in Montreal at 7 a.m., with a wind chill of –29 C.
It will get colder across the south of the province through the evening and wind chills are expected to make it feel as cold as – 40 until Saturday morning, Environment Canada warned.
Those spending time outdoors are at a higher risk of frostbite and hypothermia.
"Frostbite can develop within minutes on exposed skin, especially with wind chill," Environment Canada said.
Conserving energy
Hydro-Québec has signed up 160,000 clients to a flexible billing plan similar to BC Hydro's winter payment plan that allows them to pay less for energy — as long as they use it during non-peak periods.
Quebec's energy regulator, the Régie de l'énergie, also forces crypto-currency mining operations to shut down for some hours on peak-demand days, a topic where BC Hydro's approach to crypto mining has also drawn attention, Bouchard said.
Hydro-Québec says the highest consumption periods are usually between 6 a.m.-9 a.m. and 4 p.m.-8 p.m.
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New England Is Burning the Most Oil for Electricity Since 2018
New England oil-fired generation surges as ISO New England manages a cold snap, dual-fuel switching, and a natural gas price spike, highlighting winter reliability challenges, LNG and pipeline limits, and rising CO2 emissions.
Key Points
Reliance on oil-burning power plants during winter demand spikes when natural gas is costly or constrained.
✅ Driven by dual-fuel switching amid high natural gas prices
✅ ISO-NE winter reliability rules encourage oil stockpiles
✅ Raises CO2 emissions despite coal retirements and renewables growth
New England is relying on oil-fired generators for the most electricity since 2018 as a frigid blast boosts demand for power and natural gas prices soar across markets.
Oil generators were producing more than 4,200 megawatts early Thursday, accounting for about a quarter of the grid’s power supply, according to ISO New England. That was the most since Jan. 6, 2018, when oil plants produced as much as 6.4 gigawatts, or 32% of the grid’s output, said Wood Mackenzie analyst Margaret Cashman.
Oil is typically used only when demand spikes, because of higher costs and emissions concerns. Consumption has been consistently high over the past three weeks as some generators switch from gas, which has surged in price in recent months. New England generators are producing power from oil at an average rate of almost 1.8 gigawatts so far this month, the highest for January in at least five years.
Oil’s share declined to 16% Friday morning ahead of an expected snowstorm, which was “a surprise,” Cashman said.
“It makes me wonder if some of those generators are aiming to reserve their fuel for this weekend,” she said.
During the recent cold snap, more than a tenth of the electricity generated in New England has been produced by power plants that haven’t happened for at least 15 years.
Burning oil for electricity was standard practice throughout the region for decades. It was once our most common fuel for power and as recently as 2000, fully 19% of the six-state region’s electricity came from burning oil, according to ISO-New England, more than any other source except nuclear power at the time.
Since then, however, natural gas has gotten so cheap that most oil-fired plants have been shut or converted to burn gas, to the point that just 1% of New England’s electricity came from oil in 2018, whereas about half our power came from natural gas generation regionally during that period. This is good because natural gas produces less pollution, both particulates and greenhouse gasses, although exactly how much less is a matter of debate.
But as you probably know, there’s a problem: Natural gas is also used for heating, which gets first dibs. Prolonged cold snaps require so much gas to keep us warm, a challenge echoed in Ontario’s electricity system as supply tightens, that there might not be enough for power plants – at least, not at prices they’re willing to pay.
After we came close to rolling brownouts during the polar vortex in the 2017-18 winter because gas-fired power plants cut back so much, ISO-NE, which has oversight of the power grid, established “winter reliability” rules. The most important change was to pay power plants to become dual-fuel, meaning they can switch quickly between natural gas and oil, and to stockpile oil for winter cold snaps.
We’re seeing that practice in action right now, as many dual-fuel plants have switched away from gas to oil, just as was intended.
That switch is part of the reason EPA says the region’s carbon emissions have gone up in the pandemic, from 22 million tons of CO2 in 2019 to 24 million tons in 2021. That reverses a long trend caused partly by closing of coal plants and partly by growing solar and offshore wind capacity: New England power generation produced 36 million tons of CO2 a decade ago.
So if we admit that a return to oil burning is bad, and it is, what can we do in future winters? There are many possibilities, including tapping more clean imports such as Canadian hydropower to diversify supply.
The most obvious solution is to import more natural gas, especially from fracked fields in New York state and Pennsylvania. But efforts to build pipelines to do that have been shot down a couple of times and seem unlikely to go forward and importing more gas via ocean tanker in the form of liquefied natural gas (LNG) is also an option, but hits limits in terms of port facilities.
Aside from NIMBY concerns, the problem with building pipelines or ports to import more gas is that pipelines and ports are very expensive. Once they’re built they create a financial incentive to keep using natural gas for decades to justify the expense, similar to moves such as Ontario’s new gas plants that lock in generation. That makes it much harder for New England to decarbonize and potentially leaves ratepayers on the hook for a boatload of stranded costs.
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Nova Scotia Power delays start of controversial new charge for solar customers
Nova Scotia Power solar charge proposes an $8/kW monthly system access fee on net metering customers, citing grid costs. UARB review, carbon credits, rate hikes, and solar industry impacts fuel political and consumer backlash.
Key Points
A proposed $8/kW monthly grid access fee on net metered solar customers, delayed to Feb 1, 2023, pending UARB review.
✅ $8/kW monthly system access fee on net metering
✅ Delay to Feb 1, 2023 after industry and political pushback
✅ UARB review; debate over grid costs and carbon credits
Nova Scotia Power has pushed back by a year the start date of a proposed new charge for customers who generate electricity and sell it back to the grid, following days of concern from the solar industry and politicians worried that it will damage the sector.
The company applied to the Nova Scotia Utility and Review Board (UARB) last week for various changes, including a "system access charge" of $8 per kilowatt monthly on net metered installations, and the province cannot order the utility to lower rates under current law. The vast majority of the province's 4,100 net metering customers are residential customers with solar power, according to the application.
The proposed charge would have come into effect Tuesday if approved, but Nova Scotia Power said in a news release Tuesday it will change the date in its filing from Feb. 1, 2022, to Feb. 1, 2023.
"We understand that the solar industry was taken off guard," utility CEO Peter Gregg said in an interview.
"There could have been an opportunity to have more conversations in advance."
Gregg said the utility will meet with members of the solar industry over the next year to work on finding solutions that support the sector's growth, while addressing what NSP sees as an inequity in the net metering system.
NSP recognized that customers who choose solar invest a significant amount and pay for the electricity they use, but they don't pay for costs associated with accessing the electrical grid when they need energy, such as on cold winter evenings when the sun is not shining.
"I know that's hit a nerve, but it doesn't take away the fact that it is an issue," Gregg said.
He said this is an issue utilities are navigating around North America, where seasonal rate designs have sparked consumer backlash in New Brunswick, and NSP is open to hearing ideas for other models of charges or fees.
The utility's suggested system access charge closely resembles one proposed in California, which has also raised major concerns from the solar industry and been criticized by the likes of Elon Musk, and has parallels to Massachusetts solar demand charges as well.
Although the "solar profile" of Nova Scotia and California is very different, with far more solar customers in that state, and in other provinces such as Saskatchewan, NDP criticism of 8% hikes has intensified affordability debates, Gregg said the fundamental issues are the same.
For those with a typical 10-kilowatt solar system, which generates around $1,800 of electricity a year, the new charge would mean those customers would be required to pay $960 back to NSP. That would roughly double the length of time it takes for those customers to pay off their investment for the panels.
David Brushett, chair of Solar Nova Scotia, said he relayed concerns from solar installers and others in the industry to Gregg on Monday.
Brushett said the year delay is a positive first step, but he is still calling on the province to take a strong stance against the application, which has led to customers cancelling their panel installations and companies considering layoffs.
"There's still an urgency to this situation that hasn't been addressed, and we need to kind of protect the industry," he said Tuesday.
NSP's original application proposed exempting net metering customers who enrolled before Feb. 1, 2022, from the charge for 25 years after they sign up. But any benefit would be lost if those customers sold their home, and the exemption wouldn't extend to the new buyers, said Brushett.
Carbon offsets missing from equation: industry
Brushett said NSP "completely ignored" the fact that it's getting free carbon offset credits from homeowners who use solar energy under the provincial cap and trade program.
If the net metering system continues as is, NSP has said non-solar customers would pay about $55 million between now and 2030. That number assumes about 2,000 people sign up for net metering each year over the next nine years.
When asked whether those carbon emission credits were factored into the calculations for the proposed charge, Gregg said, "I don't believe in the current structure it is, but it's something that certainly we'd be open to hearing about."
Brushett said his group is finalizing a legal response to NSP's proposal and has already filed an official complaint against the company with the UARB.
Base charge on actual electrical output: customer
At least one shareholder in NSP parent company Emera is considering selling his shares in response to the application.
Joe Hood, a shareholder from Middle Sackville, said the proposed charge won't apply to his existing 11.16-kilowatt solar system, but if it did, it would cost him $1,071 a year.
"I am offended that a company I would invest in would do this to the solar industry in Nova Scotia," he said.
According to his meter, Hood said he pushed 9,600 kilowatt hours of solar electricity to the grid last year— some only for a brief period, and all of which was used by his home by the end of the year.
Under the proposed charge, someone with one solar panel who goes away on vacation in the summer would push all their electricity to the grid, and be charged far less than someone with 10 panels who has used all their own power and hasn't pushed anything.
"Nova Scotia Power's argument is that it's an issue with the grid. Well, then it should be based on what touches the grid," Hood said.
Far from actually making the system fair for everyone, Hood said this charge places solar only in the hands of the super-rich or NSP, with projects like its community solar gardens in Amherst, N.S.
Green Party suggests legislation update
Nova Scotia's Green Party also said Tuesday that Gregg's arguments of fairness are misleading, echoing earlier premier opposition to a 14% hike on rates.
The party is calling for an update to the Electricity Act that would "prevent penalizing any activity that helps Nova Scotia reach its emissions target," aligning with calls to make the electricity system more accountable to residents.
In its application, NSP has also asked to increase electricity rates for residential customers by at least 10 per cent over the next three years, amid debate that culminated in a 14% rate hike approval by regulators.
The company wants to maintain its nine per cent rate of return.
NSP expects to earn $153 million this year, $192 million in 2023, and $213 million in 2024 from its rate of return.
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Ontario Businesses To See Full Impact of 2021 Electricity Rate Reductions
Ontario Comprehensive Electricity Plan delivers Global Adjustment reductions for industrial and commercial non-RPP customers, lowering electricity rates, shifting renewable energy costs, and enhancing competitiveness across Ontario businesses in 2022, with additional 4 percent savings.
Key Points
Ontario's plan lowers Global Adjustment by shifting renewable costs, cutting industrial and commercial bills 15-17%.
✅ Shifts above-market non-hydro renewable costs to the Province
✅ Reduces GA for industrial and commercial non-RPP customers
✅ Additional 4% savings on 2022 bills after GA deferral
As of January 1, 2022, industrial and commercial electricity customers will benefit from the full savings introduced through the Ontario government’s Comprehensive Electricity Plan, which supports stable electricity pricing for industrial and commercial companies, announced in Budget 2020, and first implemented in January 2021. This year customers could see an additional four percent savings compared to their bills last year, bringing the full savings from the Comprehensive Electricity Plan to between 15 and 17 per cent, making Ontario a more competitive place to do business.
“Our Comprehensive Electricity Plan has helped reverse the trend of skyrocketing electricity prices that drove jobs out of Ontario,” said Todd Smith, Minister of Energy. “Over 50,000 customers are benefiting from our government’s plan which has reduced electricity rates on clean and reliable power, allowing them to focus on reinvesting in their operations and creating jobs here at home.”
Starting on January 1, 2021, the Comprehensive Electricity Plan reduced overall Global Adjustment (GA) costs for industrial and commercial customers who do not participate in the Regulated Price Plan (RPP) by shifting the forecast above-market costs of non-hydro renewable energy, such as wind, solar and bioenergy, from the rate base to the Province, alongside energy-efficiency programs that complement demand reduction efforts.
“Since taking office, our government has listened to job creators and worked to lower the costs of doing business in the province. Through these significant reductions in electricity prices through the Comprehensive Electricity Plan, customers all across Ontario will benefit from significant savings in their business operations in 2022,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By continuing to reduce electricity costs, lowering taxes, and cutting red tape our government has reduced the cost of doing business in Ontario by nearly $7 billion annually to ensure that we remain competitive, innovative and poised for economic recovery.”
As part of its COVID response, including electricity relief for families and small businesses, Ontario had deferred a portion of GA between April and June 2020 for industrial and non-RPP commercial customers, with more than 50,000 customers benefiting. Those same businesses paid back these deferred GA costs over 12 months, between January 2021 and December 2021, while the province prepared to extend disconnect moratoriums for residential customers.
During the pandemic, residential electricity use rose even as overall consumption dropped, underscoring shifts in load patterns.
Now that the GA deferral repayment period is over, industrial and non-RPP commercial customers will benefit from the full cost reductions provided to them by the Comprehensive Electricity Plan, alongside temporary off-peak rate relief that supported families and small businesses. This means that, beginning January 1, 2022, these businesses could see an additional four per cent savings on their bills compared to 2021, as new ultra-low overnight pricing options emerge depending on their location and consumption.
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There's a Russia-Sized Mystery in China's Electricity Sector
China Power Demand-Emissions Gap highlights surging grid demand outpacing renewables, with coal filling shortages despite record solar, wind, EV charging, and hydrogen growth, threatening decarbonization targets and net-zero pathways through 2030.
Key Points
China's power demand outpaces renewables, keeping coal dominant and raising emissions risk through the 2020s.
✅ Record solar and wind still lag fast grid demand growth
✅ Coal fills gaps as EV charging and hydrogen loads rise
✅ Forecasts diverge: CEC bullish vs IEA, BNEF conservative
Here’s a new obstacle that could prevent the world finally turning the corner on climate change: Imagine that over the coming decade a whole new economy the size of Russia were to pop up out of nowhere. With the world’s fourth-largest electricity sector and largest burden of power plant emissions after China, the U.S. and India, this new economy on its own would be enough to throw out efforts to halt global warming — especially if it keeps on growing through the 2030s.
That’s the risk inherent in China’s seemingly insatiable appetite for grid power, as surging electricity demand is putting systems under strain worldwide.
From the cracking pace of renewable build-out last year, you might think the country had broken the back of its carbon addiction. A record 55 gigawatts of solar power and 48 gigawatts of wind were connected — comparable to installing the generation capacity of Mexico in less than 12 months. This year will see an even faster pace, with 93 GW of solar and 50 GW of wind added, according to a report last week from the China Electricity Council, an industry association.
That progress could in theory see the country’s power sector emissions peak within months, rather than the late-2020s date the government has hinted at. Combined with a smaller quantity of hydro and nuclear, low-emissions sources will probably add about 310 terawatt-hours to zero-carbon generation this year. That 3.8% increase would be sufficient to power the U.K.
Countries that have reached China’s levels of per-capita electricity consumption (already on a par with most of Europe) typically see growth rates at less than half that level, even as global power demand has surged past pre-pandemic levels in recent years. Grid supply could grow at a faster pace than Brazil, Iran, South Korea or Thailand managed over the past decade without adding a ton of additional carbon to the atmosphere.
There’s a problem with that picture, however. If electricity demand grows at an even more headlong pace, there simply won’t be enough renewables to supply the grid. Fossil fuels, overwhelmingly coal, will fill the gap, a reminder of the iron law of climate dynamics in energy transitions.
Such an outcome looks distinctly possible. Electricity consumption in 2021 grew at an extraordinary rate of 10%, and will increase again by between 5% and 6% this year, according to the CEC. That suggests the country is on pace to match the CEC’s forecasts of bullish grid demand over the coming decade, with generation hitting 11,300 terawatt-hours in 2030. External analysts, such as the International Energy Agency and BloombergNEF, envisage a more modest growth to around 10,000 TWh.
The difference between those two outlooks is vast — equivalent to all the electricity produced by Russia or Japan. If the CEC is right and the IEA and BloombergNEF are wrong, even the furious rate of renewable installations we’re seeing now won’t be enough to rein in China’s power-sector emissions.
Who’s correct? On one hand, it’s fair to say that power planners usually err on the side of overestimation. If your forecast for electricity demand is too high, state-owned generators will be less profitable than they otherwise would have been — but if it’s too low, you’ll see power cuts and shutdowns like China witnessed last autumn, with resulting power woes affecting supply chains beyond its borders.
On the other hand, the decarbonization of China’s economy itself should drive electricity demand well above what we’ve seen in the past, with some projections such as electricity meeting 60% of energy use by 2060 pointing to a profound shift. Some 3.3 million electric vehicles were sold in 2021 and BloombergNEF estimates a further 5.7 million will be bought in 2022. Every million EVs will likely add in the region of 2 TWh of load to the grid. Those sums quickly mounts up in a country where electric drivetrains are taking over a market that shifts more than 25 million new cars a year.
Decarbonizing industry, a key element on China’s road to zero emissions, could also change the picture. The IEA sees the country building 25 GW of electolysers to produce hydrogen by 2030, enough to consume some 200 TWh on their own if run close to full-time.
That’s still not enough to justify the scale of demand being forecast, though. China is already one of the least efficient countries in the world when it comes to translating energy into economic growth, and despite official pressure on the most wasteful, so called “dual-high” industries such as steel, oil refining, glass and cement, its targets for more thrifty energy usage remain pedestrian.
The countries that have decarbonized fastest are those, such as Germany, the U.K and the U.S., where Americans are using less electricity, that have seen power demand plateau or even decline, giving new renewable power a chance to swap out fossil-fired generators without chasing an ever-increasing burden on the grid. China’s inability to do this as its population peaks and energy consumption hits developed-country levels isn’t a sign of strength.
Instead, it’s a sign of a country that’s chronically unable to make the transition away from polluting heavy industry and toward the common prosperity and ecological civilization that its president keeps promising. Until China reins in that credit-fueled development model, the risks to its economy and the global climate will only increase.
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U.S. Electricity and natural gas prices explained
Energy Pricing Factors span electricity generation, transmission, and distribution costs, plus natural gas supply-demand, renewables, seasonal peaks, and wholesale pricing effects across residential, commercial, and industrial customers, usage patterns, weather, and grid constraints.
Key Points
They are the costs and market forces driving electricity and natural gas prices, from generation to delivery and demand.
✅ Generation, transmission, distribution shape electricity rates
✅ Gas prices hinge on supply, storage, imports/exports
✅ Demand shifts: weather, economy, and fuel alternatives
There are a lot of factors that affect energy prices globally. What’s included in the price to heat homes and supply them with electricity may be a lot more than some people may think.
Electricity
Generating electricity is the largest component of its price, according to the U.S. Energy Information Administration (EIA). Generation accounts for 56% of the price of electricity, while distribution and transmission account for 31% and 13% respectively.
Homeowners and businesses pay more for electricity than industrial companies, and U.S. electricity prices have recently surged, highlighting broader inflationary pressures. This is because industrial companies can take electricity at higher voltages, reducing transmission costs for energy companies.
“Industrial consumers use more electricity and can receive it at higher voltages, so supplying electricity to these customers is more efficient and less expensive. The price of electricity to industrial customers is generally close to the wholesale price of electricity,” EIA explains.
NYSEG said based on the average use of 600 kilowatt-hours per month, its customers spent the most money on delivery and transition charges in 2020, 57% or about $42, and residential electricity bills increased 5% in 2022 after inflation, according to national data. They also spent on average 35% (~$26) on supply charges and 8% (~$6) on surcharges.
Electricity prices are usually higher in the summer. Why? Because energy companies use sources of electricity that cost more money. It used to be that renewable sources, like solar and wind, were the most expensive sources of energy but increased technological advances have changed this, according to the International Energy Agency’s 2021 World Energy Outlook.
“In most markets, solar PV or wind now represents the cheapest available source of new electricity generation. Clean energy technology is becoming a major new area for investment and employment – and a dynamic arena for international collaboration and competition,” the report said.
Natural gas
The price of natural gas is driven by supply and demand. If there is more supply, prices are generally lower. If there is not as much supply, prices are generally higher the EIA explains. On the other side of the equation, more demand can also increase the price and less demand can decrease the price.
High natural gas prices mean people turn their home thermostats down a few degrees to save money, so the EIA said reduced demand can encourage companies to produce more natural gas, which would in turn help lower the cost. Lower prices will sometimes cause companies to reduce their production, therefore causing the price to rise.
The three major supply factors that affect prices: the amount of natural gas produced, how much is stored, and the volume of gas imported and exported. The three major demand factors that affect price are: changes in winter/summer weather, economic growth, and the broader energy crisis dynamics, as well as how much other fuels are available and their price, said EIA.
To think the price of natural gas is higher when the economy is thriving may sound counterintuitive but that’s exactly what happens. The EIA said this is because of increases in demand.
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Almost 500-mile-long lightning bolt crossed three US states
Longest Lightning Flash Record confirmed by WMO: a 477.2-mile megaflash spanning Mississippi, Louisiana, and Texas, detected by satellite sensors, highlighting Great Plains supercell storms, lightning safety, and extreme weather monitoring advancements.
Key Points
It is the WMO-verified 477.2-mile megaflash across MS, LA, and TX, detected via satellites.
✅ Spanned 477.2 miles across Mississippi, Louisiana, and Texas
✅ Verified by WMO using space-based lightning detection
✅ Occurs in megaflash-prone regions like the U.S. Great Plains
An almost 500-mile long bolt of lightning that lit up the sky across three US states has set a new world record for longest flash, scientists have confirmed.
The lightning bolt, extended a total of 477.2 miles (768 km) and spread across Mississippi, Louisiana, and Texas.
The previous record was 440.6 miles (709 km) and recorded in Brazil in 2018.
Lightning rarely extends over 10 miles and usually lasts under a second, yet utilities plan for severe weather when building long-distance lines such as the TransWest Express transmission project to enhance reliability.
Another lightning flash recorded in 2020 - in Uruguay and Argentina - has also set a new record for duration at 17.1 seconds. The previous record was 16.7 seconds.
"These are extraordinary records from lightning flash events," Professor Randall Cerveny, the WMO's rapporteur of weather and climate extremes, said.
According to the WMO, both records took place in areas prone to intense storms that produce 'megaflashes', namely the Great Plains region of the United States and the La Plata basin of South America's southern cone, where utilities adapting to climate change is an increasing priority.
Professor Cerveny added that greater extremes are likely to exist and are likely to be recorded in the future thanks to advances in space-based lightning detection technology.
The WMO warned that lightning was a hazard and urged people in both regions and around the world to take caution during storms, which can lead to extensive disruptions like the Tennessee power outages reported after severe weather.
"These extremely large and long-duration lightning events were not isolated but happened during active thunderstorms," lightning specialist Ron Holle said in a WMO statement.
"Any time there is thunder heard, it is time to reach a lightning-safe place".
Previously accepted WMO 'lightning extremes' include a 1975 incident in which 21 people were killed by a single flash of a lightning as they huddled inside a tent in Zimbabwe, and modern events show how dangerous weather can also cut electricity for days, as with the Hong Kong typhoon outages that affected families.
In another incident, 469 people were killed when lightning struck the Egyptian town of Dronka in 1994, causing burning oil to flood the town, and major incidents can also disrupt infrastructure, as seen during the LA power outage following a substation fire.
The WMO notes that the only lightning-safe locations are "substantial" buildings with wiring and plumbing, and dedicated lightning protection training helps reinforce these guidelines, rather than structures such as bus stops or those found at beaches.
Fully enclosed metal-topped vehicles are also considered reliably safe, and regional storm safety tips offer additional guidance.
