Couple gets huge energy bills for vacant house

UK Market Stability Outlook remains febrile as the Bank of England, Treasury, and OBR forecasts shape fiscal policy, interest rates, gilt yields, inflation, energy bills, and pound sterling, with Oct. 31 guidance to reassure investors.

Key Points

A view of investor confidence as BOE policy, fiscal plans, and energy aid shape inflation and interest rates.

✅ Markets await Oct. 31 fiscal statement and OBR projections

✅ Energy support design drives inflation and disposable income

✅ Pound weakness adds imported inflation; rates seen up 75 bps

Bank of England Deputy Governor Dave Ramsden said financial markets are still unsettled about the outlook for the UK and that a Treasury statement due on Oct. 31 may provide some reassurance.

Speaking to the Treasury Committee in Parliament, Ramsden said officials in government and the central bank are dealing with huge economic shocks, notably the surge in energy prices that came with Russia’s attack on Ukraine. Investors are reassessing where interest rates and the fiscal stance are headed.

“Markets remain quite febrile,” Ramsden told members of Parliament in London on Monday. “Things have not settled down yet.”

He described the events following Prime Minister Liz Truss’s ill-fated fiscal statement on Sept. 23, which set out a series of tax cuts funded by borrowing that spooked investors and triggered a rout in UK assets. Ramsden said those events damaged the UK’s credibility among investors, but reversing that program and Truss’s decision to step aside have helped the nation regain confidence.

“Credibility is hard won and easily lost,” Ramsden said. “That credibility is being recovered. That has to be followed through. A return to the kind of stability around policy making and around the framing of fiscal events will be really important.”

He said the issue with the Sept. 23 statement was that “it had one side of the fiscal arithmetic in it” and that the decision to include forecasts from the Office for Budget Responsibility will help underpin the confidence investors have in assessing the UK budget due out next week, including potential moves to end the link between gas and electricity prices for consumers.

“What we are going to get on Oct. 31 will be very important,” Ramsden said, “as it will address measures such as the price cap on household energy bills and other fiscal choices.”

“My sense is that will take account of all the statements on both the revenue and on the spending side.”

The central bank already was getting some information from Chancellor of the Exchequer Jeremy Hunt’s team about the fiscal statement due. Hunt said last week he’d curtail government plans to subsidize household fuel bills in April, when a 16% decrease in energy bills is anticipated, instead of letting it run as long as planned and replace it with a more targeted program. 

“To the extent possible, we will obviously have a little bit of time to take account of that before we make our decisions later next week,” Ramsden said.

With Truss stepping down in the next day and handing power to Rishi Sunak, it isn’t certain the Oct. 31 statement will go ahead as planned. Ramsden’s remarks confirm reports that Hunt is preparing to make the statement, amid a free electricity debate in the industry, even before Sunak names his team.

Any hint about what sort of package Hunt will offer on energy is crucial to the BOE’s forecasts. Without aid for energy, consumers will be exposed to high winter heating and electricity costs and to the full force of whatever happens in natural gas and electricity markets, and that will have a big impact on how much disposable income is available to households.

The energy plan, alongside the energy security bill, “will be a key element, as obviously it will have a bearing on the path for inflation, which is critical, but also how much additional support relative to what we were assuming at the time of the September MPC there will be for households at different points in the income distribution,” Ramsden added.

Investors currently expect the BOE to hike rates by 75 basis points next week.

Ramsden also said the BOE is watching the pound’s decline to assess how that changes the outlook for inflation.

“We have to take account of it,” Ramsden said. “When sterling deprreciaties that feeds through to imported inflation. It’s fallen quite significantly. The overall trend is down.”

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PGE Residential Energy Storage Pilot aggregates 525 home batteries into a virtual power plant, enabling distributed energy resources, smart grid control, renewable energy optimization, demand response, and backup power across Portland General Electric's area.

Key Points

A PGE program aggregating 525 batteries into a utility-run virtual power plant for renewables support and backup power.

✅ Up to 4 MW aggregated capacity from 525 residential batteries

✅ Monthly credits: $40 ($20 with solar) for grid services

✅ Enhances smart grid, DERs, resilience, and outage backup

Portland General Electric Company is set to launch a pilot program that will incentivize installation and connection of 525 residential energy storage batteries that PGE will dispatch, contributing up to four megawatts of energy to PGE's grid. The distributed assets will create a virtual power plant made up of small units that can be operated individually or combined to serve the grid, adding flexibility that supports PGE's transition to a clean energy future. When the program launches this fall, incentives will be available to residential customers across PGE's service area. Rebates will be available to customers within three neighborhoods participating in PGE's Smart Grid Test Bed, and income-qualified customers participating in Energy Trust of Oregon's Solar Within Reach offer.

PGE will study the full benefits of energy storage that these distributed energy assets can provide the grid while also increasing resiliency for each participating customer. PGE will operate and test the benefits of using homes' batteries, each capable of storing 12 to 16 kWh of energy, to optimize the use of renewable energy and grid capabilities. In the event of a power outage, participating customers can rely on them as a backup power resource.

"Our vision for clean energy relies on a smart, integrated grid. One of the ways that we'll achieve that is through creative partnerships and diversified energy resources, including those behind-the-meter," said Larry Bekkedahl, vice president of Grid Architecture, Integration and Systems Operation. "This pilot project will allow PGE to integrate even more intermittent renewable energy and enhance grid capabilities while also giving participating customers peace of mind in the event of an outage."

Energy storage maximizes renewables and the grid, improves power quality

Energy storage, including long-duration energy storage solutions, is vital to help capture and store energy from renewable power sources, such as wind and solar, that are more variable. As a virtual power plant, the residential battery storage pilot will create a single resource that can help the grid balance energy production with energy demand, freeing up the generation resources that are typically held on standby, ready to kick in when the wind doesn't blow or the sun doesn't shine. As a clean energy option that takes the place of standby resources, the virtual power plant also gives customers access to reliable energy, even in the event of system outages.

The test program will also allow PGE to test new smart-grid control devices across its distribution system that will more effectively allow a two-way exchange between PGE and pilot participants. The new controls will more actively manage the way that electricity is distributed across PGE's system to incorporate energy that customers generate, such as through solar panels, while also meeting power demand that is less predictable, such as for charging electric vehicles, supporting EVs for grid stability strategies. The controls will allow PGE to more actively manage power distribution to improve power quality for all customers.

Select rebates and incentives will be available to participants, aligned with electric vehicle programs that encourage transportation electrification

When it launches in fall 2020, participation in the program will be available to residential customers, including:

* Those across PGE's service area who already have or are installing a qualifying battery. Participation will require an application, and in exchange for allowing PGE to operate their battery for grid services, similar to programs where EV owners selling power back for compensation, participating customers will receive a monthly bill credit of $40, or $20 if the battery is charged with solar power.

* Customers across PGE's service area who are participating in the Solar Within Reach offering from Energy Trust of Oregon. Participants will be eligible for a $5,000 instant rebate in addition to the monthly bill credits.

* Those living within the PGE Smart Grid Test Bed who purchase a battery will be eligible for an instant rebate, in addition to the monthly bill credit of $40 or $20, which will allow PGE to test the localized grid impact of having a large concentration of battery storage devices available on one substation and explore interfaces with vehicle-to-grid pilots in the region.

PGE is working with Energy Trust to cost-effectively procure the residential battery storage systems, as utilities invest in advanced storage solutions across the region, by leveraging the existing Solar incentive program infrastructure and trade ally contractor network. Customers who participate in the program will own their battery systems, and rebates will only be available for systems installed by an Energy Trust solar trade ally. The program may also accept customers with a qualifying battery that is was previously installed, following a process to ensure safe operation.

More information about Portland General Electric's energy storage program is available at PortlandGeneral.com/energystorage and will be updated with details about the residential battery storage pilot program.

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Electrification Potential Study for Canada evaluates NRCan's decarbonization roadmap, assessing electrification of end uses and replacements for fossil fuels across transportation, buildings, and industry, including propane, diesel, natural gas, and coal, to guide energy policy.

Key Points

An NRCan study assessing electrification to replace fossil fuels across sectors and guide deep decarbonization R&D.

✅ Evaluates non-electric alternatives alongside electrification paths

✅ Covers propane, diesel, natural gas, and coal end uses

✅ Guides NRCan R&D priorities for deep decarbonization

The federal government wants to spend up to $300,000 on a study aimed at understanding whether existing electrical technologies can “reduce or eliminate” fossil fuels used for virtually every purpose other than generating electricity.

The proposal has caused consternation within the Saskatchewan government, whose premier has criticized a 2035 net-zero grid target as shifting the goalposts, and which has spent months attacking federal policies it believes will harm the Western Canadian energy sector without meaningfully addressing climate change.

Procurement documents indicate the “Electrification Potential Study for Canada” will provide “strategic guidance on the need to pursue both electric and non-electric energy research and development to enable deep decarbonisation scenarios.”

“It is critical that (Natural Resources Canada) as a whole have a cross-sectoral, consistent, and comprehensive understanding of the viability of electric technologies as a replacement for fossil fuels,” the documents state.

The study proponent will be asked to examine possible replacements for a range of fuels, including propane, transportation fuel, fuel oil, diesel, natural gas and coal, even as Alberta maps a path to clean electricity for its grid. Only international travel fuel and electricity generation are outside the scope of the study.

“To be clear, the consultant should not answer these questions directly, but should conduct the analysis with them in mind. The goal … is to collate data which can be used by (Natural Resources Canada) to conduct analysis related to these questions,” the documents state.

Natural Resources Canada issued the request for proposals one week before Prime Minister Justin Trudeau officially launched a 40-day election campaign in which climate and energy policy, including debates over Alberta's power market like a Calgary retailer's challenge, is expected to play a defining role.

It also comes as the federal government works to complete the controversial Trans Mountain Pipeline Expansion project through British Columbia, amid tariff threats boosting support for Canadian energy projects, which it bought last year for $4.5 billion and is currently bogged down in the court system.

A Natural Resources Canada spokeswoman said the ministry would not be able to respond to questions until sometime on Thursday.

While the documents make clear that the study aims to answer unresolved questions about what the International Energy Agency calls an increasingly-electric future, with clean grid and storage trends emerging, without a specific timeline, the provincial government is far from thrilled.

Energy and Resources Minister Bronwyn Eyre said the document reflects the federal government’s “hostility” to the energy sector, even as Alberta's electricity sector faces profound change, because government ministries like Natural Resources Canada don’t do anything without political direction.

Asked whether a responsible government should consider every option before taking a decision, Eyre said a government that was not interested in eliminating fossil fuels entirely would not have used such “strong” language in a public document, noting that provinces like Ontario are grappling with hydro system problems as well.

“I think it’s a real wake-up call to what (Ottawa’s) endgame really is here,” she said, adding that the document does not ask the proponent to conduct an economic impact analysis or consider potential job losses in the energy sector.

The study is organized by Natural Resources Canada’s office of energy research and development, which is tasked with accelerating energy technology “in order to produce and use energy in … more clean and efficient ways,” the documents state.

Bidding on the proposal closes Oct. 14, one week before the federal election. The successful proponent must deliver a final report in April 2020, according to the documents.

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European Electricity Market Trends 2020 highlight decarbonisation, rising renewables, EV adoption, shifting energy mix, COVID-19 impacts, fuel switching, hydro, wind and solar growth, gas price dynamics, and wholesale electricity price increases.

Key Points

EU power in 2020 saw lower emissions, more renewables, EV growth, demand shifts, and higher wholesale prices.

✅ Power sector CO2 down 14% on higher renewables, lower coal

✅ Renewables 39% vs fossil 36%; hydro, wind, solar expanded

✅ EV share hit 17%; wholesale prices rose with gas, ETS costs

According to the Market Observatory for Energy DG Energy report, the COVID-19 pandemic and favorable weather conditions are the two key drivers of the trends experienced within the European electricity market in 2020. However, the two drivers were exceptional or seasonal.

The key trends within Europe’s electricity market include:

1. Decrease in power sector’s carbon emissions

As a result of the increase in renewables generation and decrease in fossil-fueled power generation in 2020, the power sector was able to reduce its carbon footprint by 14% in 2020. The decrease in the sector’s carbon footprint in 2020 is similar to trends witnessed in 2019 when fuel switching was the main factor behind the decarbonisation trend.

However, most of the drivers in 2020 were exceptional or seasonal (the pandemic, warm winter, high
hydro generation). However, the opposite is expected in 2021, with the first months of 2021 having relatively cold weather, lower wind speeds and higher gas prices, with stunted hydro and nuclear output also cited, developments which suggest that the carbon emissions and intensity of the power sector could rise.

The European Union is targeting to completely decarbonise its power sector by 2050 through the introduction of supporting policies such as the EU Emissions Trading Scheme, the Renewable Energy Directive and legislation addressing air pollutant emissions from industrial installations, with expectations that low-emissions sources will cover most demand growth in the coming years.

According to the European Environment Agency, Europe halved its power sector’s carbon emissions in 2019 from 1990 levels.

2. Changes in energy consumption

EU consumption of electricity fell by -4% as majority of industries did not operate at full level during the first half of 2020. Although majority of EU residents stayed at home, meaning an increase in residential energy use, rising demand by households could not reverse falls in other sectors of the economy.

However, as countries renewed COVID-19 restrictions, energy consumption during the 4th quarter was closer to the “normal levels” than in the first three quarters of 2020. 

The increase in energy consumption in the fourth quarter of 2020 was also partly due to colder temperatures compared to 2019 and signs of surging electricity demand in global markets.

3. Increase in demand for EVs

As the electrification of the transport system intensifies, the demand for electric vehicles increased in 2020 with almost half a million new registrations in the fourth quarter of 2020. This was the highest figure on record and translated into an unprecedented 17% market share, more than two times higher than in China and six times higher than in the United States.

However, the European Environment Agency (EEA)argues that the EV registrations were lower in 2020 compared to 2019. EEA states that in 2019, electric car registrations were close to 550 000 units, having reached 300 000 units in 2018.

4. Changes in the region’s energy mix and increase in renewable energy generation

The structure of the region’s energy mix changed in 2020, according to the report.

Owing to favorable weather conditions, hydro energy generation was very high and Europe was able to expand its portfolio of renewable energy generation such that renewables (39%) exceeded the share of fossil fuels (36%) for the first time ever in the EU energy mix.

Rising renewable generation was greatly assisted by 29 GW of wind and solar capacity additions in 2020, which is comparable to 2019 levels. Despite disrupting the supply chains of wind and solar resulting in project delays, the pandemic did not significantly slow down renewables’ expansion.

In fact, coal and lignite energy generation fell by 22% (-87 TWh) and nuclear output dropped by 11% (-79 TWh). On the other hand, gas energy generation was not significantly impacted owing to favorable prices which intensified coal-to-gas and lignite-to-gas switching, even as renewables crowd out gas in parts of the market.

5. Retirement of coal energy generation intensify

 As the outlook for emission-intensive technologies worsens and carbon prices rise, more and more early coal retirements have been announced. Utilities in Europe are expected to continue transitioning from coal energy generation under efforts to meet stringent carbon emissions reduction targets and as they try to prepare themselves for future business models that they anticipate to be entirely low-carbon reliant.

6. Increase in wholesale electricity prices

In recent months, more expensive emission allowances, along with rising gas prices, have driven up wholesale electricity prices on many European markets to levels last seen at the beginning of 2019. The effect was most pronounced in countries that are dependent on coal and lignite. The wholesale electricity prices dynamic is expected to filter through to retail prices.

The rapid sales growth in the EVs sector was accompanied by expanding charging infrastructure. The number of high-power charging points per 100 km of highways rose from 12 to 20 in 2020.

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Los Angeles Power Station Fire prompts LADWP to shut a Northridge/Reseda substation, causing a San Fernando Valley outage amid a heatwave; high-voltage equipment and mineral oil burned as 94,000 customers lost power, elevator rescues reported.

Key Points

An LADWP substation fire in Northridge/Reseda caused a major outage; 94,000 customers affected as crews restore power.

✅ Fire started around 6:52 p.m.; fully extinguished by 9 p.m.

✅ High-voltage gear and mineral oil burned; no injuries reported.

✅ Outages hit Porter Ranch, Reseda, West Hills, Granada Hills.

About 94,000 customers were without electricity Saturday night after the Los Angeles Department of Water and Power shut down a power station in the northeast San Fernando Valley that caught fire, the agency said.

The fire at the station in the Northridge/Reseda area of Los Angeles started about 6:52 p.m. and involved equipment that carries high-voltage electricity and distributes it at lower voltages to customers in the surrounding area, the department said, even as other utilities sometimes deploy wildfire safety shut-offs to reduce risk during dangerous conditions.

The department shut off power to the station as a precautionary move, and it is restoring power now that the fire has been put out, similar to restoration after intentional shut-offs in other parts of California. Initially, 140,000 customers were without power. That number had been cut to 94,000 by 11 p.m.

The power outage comes as much of California baked in heat that broke records, and rolling blackout warnings were issued as the grid strained. A record that stood 131 years in Los Angeles was snapped when the temperature spiked at 98 degrees downtown.

People reported losing power in Porter Ranch, Winnetka, West Hills, Canoga Park, Woodland Hills, Granada Hills, North Hills, Reseda and Chatsworth, KABC TV reported, highlighting electricity inequality across communities.

Shortly after the blaze broke out, firefighters found a huge container of mineral oil that is used to cool electrical equipment on fire, Los Angeles Fire Department spokesman Brian Humphrey told the Los Angeles Times. The incident underscores infrastructure risks that in some regions have required a complete grid rebuild after severe storms.

Firefighters had the blaze under control by 8:30 p.m. and were able to put it out by 9 p.m., Humphrey said. "These were fierce flames, with smoke towering more than 300 feet into the sky," he told the newspaper.

No one was injured.

Firefighters rescued people who were stranded in elevators, Humphrey said.

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California Heat Wave Grid Emergency sees CAISO issue Stage 3 alerts as record demand, extreme heat, and climate change strain renewable energy; conservation efforts avert rolling blackouts and protect grid reliability statewide.

Key Points

A grid emergency in California's heat wave, with CAISO Stage 3 alerts amid record demand and risk of rolling blackouts.

✅ CAISO triggered Stage 3 alerts, then downgraded by 8 pm PT

✅ Record 52,061 MW demand; conservation reduced grid stress

✅ Extreme heat and climate change heightened outage risks

California has avoided ordering rolling blackouts after electricity demand reached a record-high Tuesday night from excessive heat across the state, even as energy experts warn the U.S. grid faces mounting climate stresses. 

The California Independent System Operator, which oversees the state’s electrical grid, imposed its highest level energy emergency on Tuesday, a step that comes before ordering rolling blackouts and allows the state to access emergency power sources.

The Office of Emergency Services also sent a text alert to residents requesting them to conserve power. The operator downgraded the Stage 3 alert around 8:00 p.m. PT on Tuesday and said that “consumer conservation played a big part in protecting electric grid reliability,” and in bolstering grid resilience overall.

The state capital of Sacramento reached 116 degrees Fahrenheit on Tuesday, according to the National Weather Service, surpassing a record that was set almost 100 years ago. And nearly a half-dozen cities in the San Francisco Bay Area tied or set all-time highs, the agency said.

CAISO said peak power demand on Tuesday reached 52,061 megawatts, surpassing a previous high of 50,270 megawatts on July 24, 2006, while nearby B.C. electricity demand has also hit records during extreme weather.

While the operator did not order rolling blackouts, three Northern California cities saw brief power outages, and severe storms have caused similar disruptions statewide in recent months. As of 7:00 am PT on Wednesday, nearly 8,000 customers in California were without power, according to PowerOutage.us. 

Gov. Gavin Newsom, in a Twitter video on Tuesday, warned the temperatures across California were unprecedented and the state is headed into the worst part of the heat wave, which is on track to be the hottest and longest on record for September.

“The risk for outages is real and it’s immediate,” Newsom said. “These triple-digit temperatures throughout much of the state are leading, not surprisingly, to record demand on the energy grid.”

The governor urged residents to pre-cool their homes earlier in the day when more power is available and turn thermostats to 78 degrees or higher after 4:00 pm PT. “Everyone has to do their part to help step up for just a few more days,” Newsom said.

The possibility for widespread outages reflects how power grids in California and other states are becoming more vulnerable to climate-related disasters such as heat waves, storms and wildfires across California.

California, which has set a goal to transition to 100% carbon-free electricity by 2045, has shuttered a slew of gas power plants in the past few years, leaving the state increasingly dependent on solar energy.

At times, the state has produced a clean energy surplus during peak solar generation, underscoring the challenges of balancing supply and demand.

The megadrought in the American West has generated the driest two decades in the region in at least 1,200 years, and human-caused climate change has fueled the problem, scientists said earlier this year. Conditions will likely continue through 2022 and persist for years.

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