Greenpeace not LOL over Facebook footprint

By Associated Press


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After an emotional breakup with the timber industry, Prineville, Ore., was thrilled to get friended by Facebook.

The social networking site chose the highdesert timber town of 10,000 to take advantage of its cool nights and dry air in hopes of making its firstever data center an energy efficiency landmark.

But the concept failed to impress Greenpeace.

In a report posted on the Internet last month, the environmental group praised Google and Yahoo for tapping hydro power — but challenged Facebook for building in coal country.

The feud shows how hard it can be for the computing industry to meaningfully reduce its environmental footprint. It can add to its green glow through energy efficiency, but Greenpeace argues that IT companies should care more about where the power comes from.

As the nation works to green up the grid to combat global warming, data centers are demanding more energy than ever. A 2007 Environmental Protection Agency report estimated that from 2000 to 2006 data centers doubled their consumption to 61 billion kilowatt hours. Thats 1.5 percent of the grid and enough for 5.8 million households.

If you want to really be responsible for your carbon footprint, you should be trying to provision your electricity supply with renewable energy as much as possible, said Greenpeace climate policy analyst Gary Cook.

In what might be considered adding insult to injury, Greenpeace even created a special Facebook page with a smokestack logo to say the data center would be a greenhouse gas hog.

But the complex equation that goes into how much something costs still counts, said Ken Patchett, who was hired away from Google to run Facebooks data center in Prineville.

At the end of the day, Facebook is like any other major competitive business, he said. We do have to manage to our bottom line.

Facebook, Yahoo, Google and others have become fans of the Northwest as they build more warehouses filled with computers to store data.

It is close to undersea cables with direct links to growing markets in Asia. Power costs are low and stable. Highspeed bandwidth is as close as the nearest railroad line. The climate makes it cheaper to keep computers cool. Communities like Prineville, struggling to reinvent their economies, give generous tax incentives.

Facebook said in choosing Prineville, the energy saving features allowed by the climate outweighed the source of the electricity, and that the utility PacifiCorp is greening up its power sources, expanding wind power to 2,000 megawatts by 2013. It currently gets 58 percent of its power from coal, and only 21 percent from renewables.

PacifiCorp offers a green power option, but it costs more. Facebook has not signed a contract yet, and is not saying if it will go for the Blue Sky option.

In most data centers, cooling the servers takes nearly as much electricity as running the servers themselves. Facebook hopes its new cooling system will take only 15 percent as much power as the computers. Facebook is also shooting for a gold rating from the green building standard known as LEED.

The climate is important. Even in summer, nights are cool. The center can take in outside air for free. When temperatures rise, a hightech swamp cooler blows dry air over water, and the evaporation lowers temperatures. In winter, hot air from the servers is blown into office space.

The way we are managing it provides for a lower carbon footprint as well as a lower monthly bill for power, Patchett said.

Like Facebook, Yahoo had a cool climate on top of its list when it chose Lockport, N.Y. But it also tapped local hydro generation for power.

It is building a patentpending system known as the Yahoo Computing Coop — it sort of resembles a chicken coop — that it hopes will beat Facebooks efficiency, using only 10 percent for cooling as for running servers. Louvered sidewalls allow wind to blow cool air into buildings, which are long and narrow to facilitate venting hot air through the roof.

We are all working together to really nail down what does an efficient data center look like... so we can demonstrate leadership, said Christina Page, Yahoo director of climate and energy strategy.

Beyond changes in the mix of energy sources on the grid, the IT industry can reduce carbon emissions through the smart grid, smart buildings and more efficient heating and cooling, she added.

JoneLin Wang, managing director of the global power group for IHS Cambridge Energy Research Associates, said thats not realistic. Renewables account for less than 4 percent of the grid. Wind, solar and hydroelectric are all intermittent, needing a backup, such as natural gas. And they tend to demand a premium price. Meanwhile, coal power is declining on its own, because many plants wont be able to meet tightening pollution controls.

She added that over the next 10 years, renewables will grow to just 7.5 percent of the grid, primarily because 30 states have adopted Renewable Portfolio Standards setting targets for growing renewable power.

All this gets little attention in Prineville, which has watched its sawmills wink out as logging declined over the years. Then came the recession, leaving ghost subdivisions around town and Crook County with the worst unemployment in Oregon, a seasonally adjusted 14.9 percent.

People are hungry for jobs that will keep young people from moving away, and the 200 construction jobs and 35 permanent jobs at the data center are a step in the right direction, said Greg Lambert, owner of Mid Oregon Personnel Services.

Most people kind of view Greenpeace as kind of a fly on the butt of an ox, said Lambert.

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Enbridge Insists Storage Hub Lives On After Capital Power Pullout

Enbridge Alberta CCS Project targets carbon capture and storage in Alberta, capturing emissions from industrial emitters to advance net-zero goals, leveraging carbon pricing, regulatory support, and a hub model despite a key partner's exit.

 

Key Points

A proposed Alberta carbon capture hub by Enbridge to store industrial emissions and support net-zero targets.

✅ Seeks emitters across power, oil and gas, and heavy industry

✅ Backed by carbon pricing, regulation, and net-zero mandates

✅ Faces high capex, storage risk, and anchor-tenant uncertainty

 

Enbridge Inc., a Canadian energy giant, is digging its heels in on its proposed carbon capture and storage (CCS) project in Alberta. This comes despite the recent withdrawal of Capital Power, a major potential emitter that was expected to utilize the CCS technology. Enbridge maintains the project remains viable, but questions linger about its future viability without a cornerstone anchor.

The CCS project, envisioned as a major carbon capture hub in Alberta, aimed to capture emissions from industrial facilities and permanently store them underground. This technology has the potential to play a significant role in reducing greenhouse gas emissions and mitigating the effects of climate change, alongside grid solutions like bridging the Alberta-B.C. electricity gap that can complement decarbonization efforts.

Capital Power's decision to shelve its $2.4 billion Genesee Generating Station project, which was designed to integrate with the CCS hub, threw a wrench into Enbridge's plans. The Genesee project was expected to be a key source of emissions for capture and storage, and its status is being weighed as Ottawa advances the federal coal plan to phase out unabated coal.

Enbridge, however, remains optimistic. The company cites ongoing discussions with other potential emitters interested in utilizing the CCS technology, amid new funding signals such as the U.S. DOE's $110M for CCUS that highlight momentum. They believe the project holds significant value despite Capital Power's departure.

"We are confident in the long-term viability of the project and continue to actively engage with potential customers," said Enbridge spokesperson Rachel Giroux. "Carbon capture and storage is a critical technology for achieving net-zero emissions, and we believe there is a strong business case for our CCS project."

Enbridge's confidence hinges on several factors. Firstly, they believe there is a growing appetite for CCS technology amongst industrial facilities facing increasing pressure to reduce their carbon footprint. Regulations and carbon pricing mechanisms, including new U.S. EPA power plant rules that test CCS readiness, could further incentivize companies to adopt CCS solutions.

Secondly, Enbridge highlights the potential for capturing emissions from not just power plants but also from other industrial sectors like oil and gas production and clean hydrogen projects in Canada, where reforming processes can generate CO2. This broader application could significantly increase the captured carbon volume and strengthen the project's economic viability.

However, skepticism remains. Critics point to the high upfront costs associated with CCS development and the nascent stage of the technology. They argue that without a guaranteed stream of captured emissions, the project might not be financially sound. Additionally, the long-term safety and effectiveness of large-scale carbon storage solutions remain under scrutiny.

The success of Enbridge's CCS project hinges on attracting new emitters. Replacing Capital Power's contribution will be a significant challenge. Enbridge will need to demonstrate the project's economic viability and navigate the complex regulatory landscape surrounding CCS technology.

The Alberta government's position on CCS is crucial. While the government has expressed support for the technology, the level of financial and regulatory incentives offered will significantly impact investor confidence, especially as the IEA net-zero outlook underscores Canada's need for much more electricity. A clear and stable policy framework will be essential for attracting emitters to the project.

The future of Enbridge's CCS project remains uncertain. Capital Power's withdrawal is a setback, but Enbridge's continued commitment suggests they believe the technology holds promise. Whether they can find enough emitters to justify the project's development will be a critical test. The outcome will have significant implications for the future of CCS technology in Alberta and Canada's broader efforts to achieve net-zero emissions, including Canada-Germany clean energy cooperation that seeks to scale low-carbon fuels.

 

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OEB issues decision on Hydro One's first combined T&D rates application

OEB Hydro One Rate Decision 2023-2027 sets approved transmission and distribution rates in Ontario, with a settlement reducing revenue requirement, modest bill impacts, higher productivity factors, inflation certainty, DVA credits, and First Nations participation measures.

 

Key Points

OEB-approved Hydro One 2023-2027 transmission and distribution rates settlement, lowering costs and limiting bill impacts.

✅ $482.7M revenue reductions vs. original proposal

✅ Avg bill impact: +$0.69 trans., +$2.43 distr. per month

✅ Faster DVA refunds; productivity and efficiency incentives

 

The Ontario Energy Board (OEB) issued its Decision and Order on an application filed by Hydro One Networks Inc. (Hydro One) on August 5, 2021 seeking approval for changes to the rates it charges for electricity transmission and distribution, beginning January 1, 2023 and for each subsequent year through to December 31, 2027. 

The proceeding resulted in the filing of a settlement proposal that the OEB has now approved after concluding that it is in the public interest. 

The negotiated reductions in Hydro One's transmission and distribution revenue requirements over the 2023 to 2027 period total $482.7 million compared to the requests made by Hydro One in its application.

The OEB found that the reductions in Hydro One's proposed capital expenditure and operating, maintenance and administration costs were reasonable, and should not compromise the safety and reliability of Hydro One's transmission and distribution systems. It also concluded that the estimated bill impacts for both transmission and distribution customers are reasonable, and that the January 1, 2023 implementation and effective date of the new rates is appropriate.

In the broader Canadian context, pressures on utility finances at other companies, such as Manitoba Hydro's debt provide additional background for stakeholders.

 

Bill Impacts

This proceeding related to both transmission and distribution operations.

 

Transmission

The new transmission revenue requirement will affect Ontario electricity consumers across the province because it will be incorporated into updated transmission rates, which are paid by electricity distributors and other large consumers connected directly to the transmission system, and distributors then pass this cost on to their customers.

As a result of the settlement approved on the transmission portion of the application, it is estimated that for a typical Hydro One residential customer with a monthly consumption of 750 kWh, the total bill impact averaged over the 2023-2027 period will be an increase of $0.69 per month or 0.5%, which follows the 2021 electricity rate reductions that affected many businesses.

 

Distribution

The new OEB-approved distribution rates will affect Hydro One's distribution customers, including areas served through acquisitions such as the Peterborough Distribution sale which expanded its customer base.

As a result of the settlement reached on the distribution portion of the application, it is estimated that for a typical residential distribution customer of Hydro One with a monthly consumption of 750 kWh, the total bill impact averaged over the 2023-2027 period will be an increase of $2.43 per month or 1.5%.
This proceeding included 24 approved intervenors representing a wide variety of customer classes and other interests. Representatives of 18 of those intervenors participated in the settlement conference. Having this diversity of perspective enriches the already thorough examination of evidence and argument that the OEB routinely undertakes when considering an application.

Other features of the settlement proposal include:

  • A commitment by Hydro One to include, in future operational and capital investment plans, a discussion of how the proposed spending will directly support the achievement of Hydro One's climate change policy.
  • Eliminating further updates to reflect changes to inflation in 2022 and 2023 as originally proposed, to provide Hydro One's customers with greater certainty as to the potential impacts of inflation on their bills.
  • Increases in the productivity factors and supplemental stretch factors for both the distribution and transmission business segments which will provide Hydro One with additional incentives to achieve greater efficiencies during the 2023 to 2027 period.
  • Undertaking certain measures to seek economic participation or equity investment opportunities from First Nations.
  • Disposition of net credit balances in deferral and variance accounts (DVAs) owed to customers will be returned over a shorter period of time:
  • Transmission DVA – $22.5M over a one-year period in 2023 (versus five years)
  • Distribution DVA – $85.9M over a three-year period – 2023-2025 (versus five years)
  • Undertaking certain measures to continue examining cost-effective transmission and distribution line losses
  • In the decision, the OEB acknowledged the efforts involved by parties to participate in this entire proceeding, including the settlement conference, considering the number of participants, the complexity of the issues, and the challenging logistics of a "virtual" proceeding. The OEB commended the parties and OEB staff for achieving a comprehensive settlement on all issues.

 

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Scotland’s Wind Farms Generate Enough Electricity to Power Nearly 4.5 Million Homes

Scotland Wind Energy delivered record renewable power as wind turbines and farms generated 9,831,320 MWh in H1 2019, supplying clean electricity for every home twice and supporting northern England, according to WWF data.

 

Key Points

Term for Scotland's wind power output, highlighting 2019 records, clean electricity, and progress on decarbonization.

✅ 9,831,320 MWh generated Jan-Jun 2019 by wind farms

✅ Enough to power 4.47 million homes twice in that period

✅ Advances decarbonization and 2030 renewables, 2050 net-zero goals

 

Wind turbines in Scotland produced enough electricity in the first half of 2019, reflecting periods when wind led the power mix across the UK, to power every home in the country twice over, according to new data by the analytics group WeatherEnergy. The wind farms generated 9,831,320 megawatt-hours between January and June, as the UK set a wind generation record in comparable periods, equal to the total electricity consumption of 4.47 million homes during that same period.

The electricity generated by wind in early 2019 is enough to power all of Scotland’s homes, as well as a large portion of northern England’s, highlighting how wind and solar exceeded nuclear in the UK in recent milestones as well, and events such as record UK output during Storm Malik underscore this capacity.

“These are amazing figures,” Robin Parker, climate and energy policy manager at WWF, which highlighted the new data, said in a statement. “Scotland’s wind energy revolution is clearly continuing to power ahead, as wind became the UK’s main electricity source in a recent first. Up and down the country, we are all benefitting from cleaner energy and so is the climate.”

Scotland currently has a target of generating half its electricity from renewables by 2030, a goal buoyed by milestones like more UK electricity from wind than coal in 2016, and decarbonizing its energy system almost entirely by 2050. Experts say the latest wind energy data shows the country could reach its goal far sooner than originally anticipated, especially with complementary technologies such as tidal power in Scottish waters gaining traction.

 

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Electrifying Manitoba: How hydro power 'absolutely revolutionized' the province

Manitoba Electrification History charts arc lights, hydroelectric dams, Winnipeg utilities, transmission lines, rural electrification, and Manitoba Hydro to today's wind, solar, and EV transition across the provincial power grid, driving modernization and reliability.

 

Key Points

Manitoba's power evolution from arc lights to hydro and rural electrification, advancing wind and solar on a modern grid.

✅ 1873 Winnipeg arc light predates Edison and Bell.

✅ 1919 Act built transmission lines, rural electrification.

✅ Hydroelectric dams reshaped lands and affected First Nations.

 

The first electric light in Manitoba was turned on in Winnipeg in 1873, but it was a century ago this year that the switch was flipped on a decision that would bring power to the fingertips of people across the province.

On March 12, 1873, Robert Davis — who owned the Davis House hotel on Main Street, about a block from Portage Avenue — used an electric arc light to illuminate the front of his building, according to A History of Electric Power in Manitoba, published by Manitoba Hydro.

That type of light used an an inert gas in a glass container to create an electric arc between two metal electrodes.

"The lamp in front of the Davis Hotel is quite an institution," a Manitoba Free Press report from the day said. "It looks well and guides the weary traveller to a haven of rest, billiards and hot drinks."

A ladder crew from the Winnipeg Electric Street Railway Company working on an electric trolley line in 1905. (I.F. Allen/Manitoba Hydro archives)

The event took place six years before Thomas Edison's first incandescent lamp was invented and three years before the first complete sentence was spoken over the telephone by Alexander Graham Bell.

"Electrification probably had a bigger influence on the lives of Manitobans than virtually anything else," said Gordon Goldsborough, head researcher with the Manitoba Historical Society.

"It's one of the most significant changes in the lives of Manitobans ever, because basically it transformed so many aspects of their lives. It wasn't just one thing — it touched pretty much every aspect of life."

 

Winnipeg gets its 1st street lamps

In the pioneer days of lighting and street railway transportation in Winnipeg, multiple companies formed in an effort to take advantage of the new utility: Winnipeg Gas Company, Winnipeg General Power Company, Manitoba Electric and Gas Light Company, and The North West Electric Light and Power Company.

In October 1882, the first four street lamps, using electric arc lights, were turned on along Main Street from Broadway to the CPR crossing over the Assiniboine River.

They were installed privately by P.V. Carroll, who came from New York to establish the Manitoba Electric Light & Power Company and try to win a contract for illuminating the rest of the city's streets.

He didn't get it. Newspaper reports from the time noted many outages and other problems and general disappointment in the quality of the light.

Instead, the North West Electric Light and Power Company won that contract and in June 1883 it lit up the streets.

Workers erect a wooden hydro pole beside the Belmont Hotel in 1936. Belmont is a small community southeast of Brandon. (Manitoba Hydro archives)

Over the years, other companies would bring power to the city as it became more reliable, including the Winnipeg Electric Street Railway Company (WERCo), which built the streetcar system and sold electric heat, light and power.

But it was the Brandon Electric Light Company that first tapped into a new source of power — hydro. In 1900, a dam was built across the Minnedosa River (now known as the Little Saskatchewan River) in western Manitoba, and the province's first hydroelectric generating station was created.

The first transmission line was also built, connecting the station with Brandon.

By 1906, WERCo had taken over the Winnipeg General Power Company and the Manitoba Electric and Gas Light Company, and changed its name to the Winnipeg Electric Railway Company. Later, it became the Winnipeg Electric Company, or WECo.

It also took a cue from Brandon, building a hydroelectric plant to provide more power. The Pinawa dam site operated until 1951 and is now a provincial park.

The Minnedosa River plant was the first hydroelectric generating station in Manitoba. (Manitoba Hydro archives)

The City of Winnipeg Hydroelectric System was also formed in 1906 as a public utility to combat the growing power monopoly held by WECo, and to get cheaper power. The city had been buying its supply from the private company "and the City of Winnipeg didn't quite like that price," said Bruce Owen, spokesman for Manitoba Hydro.

So the city funded and built its own dam and generating station site on the Winnipeg River in Pointe du Bois — about 125 kilometres northeast of Winnipeg — which is still in operation today.

"All of a sudden, not only did we have street lights … businesses had lights, power was supplied to homes, people no longer had to cook on wood stoves or walk around with kerosene lanterns. This city took off," said Owen.

"It helped industry grow in the city of Winnipeg. Within a few short years, a second plant had to be built, at Slave Falls."

 

Lighting up rural Manitoba

While the province's two biggest cities enjoyed the luxury of electricity and the conveniences it brought, the patchwork of power suppliers had also created a jumble of contracts with differing rates and terms, spurring periodic calls for a western Canadian electricity grid to improve coordination.

Meanwhile, most of rural Manitoba remained in the dark.

The Pinawa Dam was built by the Winnipeg Electric Street Railway Company in 1906 and operated until 1951. (Manitoba Hydro archives)

The Pinawa Dam site now, looking like some old Roman ruins. (Darren Bernhardt/CBC)

That began to change in 1919 when the Manitoba government passed the Electric Power Transmission Act, with the aim of supplying rural Manitoba with electrical power. The act enabled the construction of transmission lines to carry electricity from the Winnipeg River generating stations to communities all over southern Manitoba.

It also created the Manitoba Power Commission, predecessor to today's Manitoba Hydro, to purchase power from the City of Winnipeg — and later WECo — to supply to those other communities.

The first transmission line, a 97-kilometre link between Winnipeg and Portage la Prairie, opened in late 1919, and modern interprovincial projects like Manitoba-Saskatchewan power line funding continue that legacy today. The power came from Pointe du Bois to a Winnipeg converter station that still stands at the corner of Stafford Street and Scotland Avenue, then went on to Portage la Prairie.

"That's the remarkable thing that started in 1919," said Goldsborough.

Every year after that, the list of towns connected to the power grid became longer "and gradually, over the early 20th century, the province became electrified," Goldsborough said.

"You'd see these maps that would spider out across the province showing the [lines] that connected each of these communities — a precursor to ideas like macrogrids — to each other, and it was really quite remarkable."

By 1928, 33 towns were connected to the Manitoba Power Commission grid. That rose to 44 by 1930 and 140 by 1939, according to the Manitoba Historical Society.

 

Power on the farm

Still, one group who could greatly use electricity for their operations — farmers — were still using lanterns, steam and coal for light, heat and power.

"The power that came to the [nearest] town didn't extend to them," said Goldsborough.

It was during the Second World War, as manual labour was hard to come by on farms, that the Manitoba Power Commission recognized the gap in its grid.

It met with farmers to explain the benefits electricity could bring and surveyed their interest. When the war ended in 1945, the farm electrification process got underway.

Employees, their spouses, and children pose for a photo outside of Great Falls generating station in 1923. (Manitoba Hydro archives)

Farmers were taught wiring techniques and about the use of motors for farm equipment, as well as about electric appliances and other devices to ease the burden of domestic life.

"The electrification of the 1940s and '50s absolutely revolutionized rural life," said Goldsborough.

"Farmers had to provide water for all those animals and in a lot of cases [prior to electrification] they would just use a hand pump, or sometimes they'd have a windmill. But these were devices that weren't especially reliable and they weren't high capacity."

Electric motors changed everything, from pumping water to handling grain, while electric heat provided comfort to both people and animals.

Workers build a hydro transmission line tower in an undated photo from Manitoba Hydro. (Manitoba Hydro archives)

"Now you could have heat lamps for your baby chickens. They would lose a lot of chickens normally, because they would simply be too cold," Goldsborough said.

Keeping things warm was important, but so too was refrigeration. In addition to being able to store meat in summer, it was "something to prolong the life of dairy products, eggs, anything," said Manitoba Hydro's Owen.

"It's all the things we take for granted — a flick of a switch to turn the lights on instead of walking around with a lantern, being able to have maybe a bit longer day to do routine work because you have light."

Agriculture was the backbone of the province but it was limited without electricity, said Owen.

Connecting it to the grid "brought it into the modern age and truly kick-started it to make it a viable part of our economy," he said. "And we still see that today."

In 1954, when the farm electrification program ended, Manitoba was the most wired of the western provinces, with 75 per cent of farms and 100,000 customers connected.

The success of the farm electrification program, combined with the post-war boom, brought new challenges, as the existing power generation could not support the new demand.

The three largest players — City Hydro, WECo and the Manitoba Power Commission, along with the provincial government  — created the Manitoba Hydro-Electric Board in 1949 to co-ordinate generation and distribution of power.

A float in a Second World War victory parade represents a hydroelectric dam and the electricity it generates to power cities. (Manitoba Hydro archives)

More hydroelectric generating stations were built and more reorganizations took place. WECo was absorbed by the board and its assets split into separate companies — Greater Winnipeg Gas and Greater Winnipeg Transit.

Its electricity distribution properties were sold to City Hydro, which became the sole distributor in central Winnipeg. The Manitoba Power Commission became sole distributor of electricity in the suburbs and the rest of Manitoba.

 

Impacts on First Nations

Even as the lives of many people in the province were made easier by the supply of electricity, many others suffered from negative impacts in the rush of progress.

Many First Nations were displaced by hydro dams, which flooded their ancestral lands and destroyed their traditional ways of life.

"And we hear stories about the potential abuses that occurred," said Goldsborough. "So you know, there are there pluses but there are definitely minuses."

In the late 1950s, the Manitoba Power Commission continued to grow and expand its reach, this time moving into the north by buying up private utilities in The Pas and Cranberry Portage.

In 1961, the provincial government merged the commission with the Manitoba Hydro-Electric Board to create Manitoba Hydro.

In 1973, 100 years after the first light went on at that Main Street hotel, the last of the independent power utilities in the province — the Northern Manitoba Power Company Ltd. — was taken over by Hydro.

Winnipeg Hydro, previously called City Hydro, joined the fold in 2002.

Today, Manitoba Hydro operates 15 generating stations and serves 580,262 electric power customers in the province, as well as 281,990 natural gas customers.

 

New era

And now, as happened in 1919, a new era in electricity distribution is emerging as alternative sources of power — wind and solar — grow in popularity, and as communities like Fort Frances explore integrated microgrids for resilience.

"There's a bit of a clean energy shift happening," said Owen, adding use of biomass energy — energy production from plant or animal material — is also expanding.

"And there's a technological change going on and that's the electrification of vehicles. There are only really several hundred [electric vehicles] in Manitoba on the streets right now. But we know at some point, with affordability and reliability, there'll be a switch over and the gas-powered internal combustion engine will start to disappear."

'We're just a little behind here': Manitoba electric vehicle owners call for more charging stations

That means electrical utilities around the world are re-examining their capabilities, as climate change increasingly stresses grids, said Owen.

"It's coming [and we need to know], are we in a position to meet it? What will be the demands on the system on a path to a net-zero grid by 2050 nationwide?" he said.

"It may not come in my lifetime, but it is coming."

 

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BOE Says UK Energy Price Guarantee is Key for Next Rates Call

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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Why California's Climate Policies Are Causing Electricity Blackouts

California Rolling Blackouts expose grid reliability risks amid a heatwave, as CAISO curtails power while solar output fades at sunset, wind stalls, and scarce natural gas and nuclear capacity plus PG&E issues strain imports.

 

Key Points

Grid outages during heatwaves from low reserves, fading solar, weak wind, and limited firm capacity.

✅ Heatwave demand rose as solar output dropped at sunset

✅ Limited imports and gas, nuclear shortfalls cut reserves

✅ Policy, pricing, and maintenance gaps increased outage risk

 

Millions of Californians were denied electrical power and thus air conditioning during a heatwave, raising the risk of heatstroke and death, particularly among the elderly and sick. 

The blackouts come at a time when people, particularly the elderly, are forced to remain indoors due to Covid-19, and as later heat waves would test the grid again statewide.

At first, the state’s electrical grid operator last night asked customers to voluntarily reduce electricity use. But after lapses in power supply pushed reserves to dangerous levels it declared a “Stage 3 emergency” cutting off power to people across the state at 6:30 pm.

The immediate reason for the black-outs was the failure of a 500-megawatt power plant and an out-of-service 750-megawatt unit not being available. “There is nothing nefarious going on here,” said a spokeswoman for California Independent System Operator (CAISO). “We are just trying to run the grid.”

But the underlying reasons that California is experiencing rolling black-outs for the second time in less than a year stem from the state’s climate policies, which California policymakers have justified as necessary to prevent deaths from heatwaves, and which it is increasingly exporting to Western states as a model.

In October, Pacific Gas and Electric cut off power to homes across California to avoid starting forest fires after reports that its power lines may have started fires in recent seasons. The utility and California’s leaders had over the previous decade diverted billions meant for grid maintenance to renewables. 

And yesterday, California had to impose rolling blackouts because it had failed to maintain sufficient reliable power from natural gas and nuclear plants, or pay in advance for enough guaranteed electricity imports from other states.

It may be that California’s utilities and their regulator, the California Public Utilities Commission, which is also controlled by Gov. Newsom, didn’t want to spend the extra money to guarantee the additional electricity out of fears of raising California’s electricity prices even more than they had already raised them.

California saw its electricity prices rise six times more than the rest of the United States from 2011 to 2019, helping explain why electricity prices are soaring across the state, due to its huge expansion of renewables. Republicans in the U.S. Congress point to that massive increase to challenge justifications by Democrats to spend $2 trillion on renewables in the name of climate change.

Even though the cost of solar panels declined dramatically between 2011 and 2019, their unreliable and weather-dependent nature meant that they imposed large new costs in the form of storage and transmission to keep electricity as reliable. California’s solar panels and farms were all turning off as the blackouts began, with no help available from the states to the East already in nightfall.

Electricity from solar goes away at the very moment when the demand for electricity rises. “The peak demand was steady in late hours,” said the spokesperson for CAISO, which is controlled by Gov. Gavin Newsom, “and we had thousands of megawatts of solar reducing their output as the sunset.”

The two blackouts in less than a year are strong evidence that the tens of billions that Californians have spent on renewables come with high human, economic, and environmental costs.

Last December, a report by done for PG&E concluded that the utility’s customers could see blackouts double over the next 15 years and quadruple over the next 30.

California’s anti-nuclear policies also contributed to the blackouts. In 2013, Gov. Jerry Brown forced a nuclear power plant, San Onofre, in southern California to close.

Had San Onofre still been operating, there almost certainly would not have been blackouts on Friday as the reserve margin would have been significantly larger. The capacity of San Onofre was double that of the lost generation capacity that triggered the blackout.

California's current and former large nuclear plants are located on the coast, which allows for their electricity to travel shorter distances, and through less-constrained transmission lines than the state’s industrial solar farms, to get to the coastal cities where electricity is in highest demand.

There has been very little electricity from wind during the summer heatwave in California and the broader western U.S., further driving up demand. In fact, the same weather pattern, a stable high-pressure bubble, is the cause of heatwaves, since it brought very low wind for days on end along with very high temperatures.

Things won’t be any better, and may be worse, in the winter, with a looming shortage as it produces far less solar electricity than the summer. Solar plus storage, an expensive attempt to fix problems like what led to this blackout, cannot help through long winters of low output.

California’s electricity prices will continue to rise if it continues to add more renewables to its grid, and goes forward with plans to shut down its last nuclear plant, Diablo Canyon, in 2025.

Had California spent an estimated $100 billion on nuclear instead of on wind and solar, it would have had enough energy to replace all fossil fuels in its in-state electricity mix.

To manage the increasingly unreliable grid, California will either need to keep its nuclear plant operating, build more natural gas plants, underscoring its reliance on fossil fuels for reliability, or pay ever more money annually to reserve emergency electricity supplies from its neighbors.

After the blackouts last October, Gov. Newsom attacked PG&E Corp. for “greed and mismanagement” and named a top aide, Ana Matosantos, to be his “energy czar.” 

“This is not the new normal, and this does not take 10 years to solve,” Newsom said. “The entire system needs to be reimagined.”

 

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