Tax plan could shut nuclear plant: lawmakers

By Reuters


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Several state and local politicians in Connecticut challenged the fairness of a proposed state tax that would disproportionately fall on Dominion's D.N Millstone nuclear power plant and could force the shutdown of the two reactors.

The proposed legislation, An Act Concerning Electric Rate Relief Senate Bill 1176, aims to raise revenue, provide ratepayer relief and fund clean energy projects.

The money would come from a tax on the power produced at nuclear, coal and oil-fired generators in the state.

The bill is expected to raise about $340 million a year, but Dominion said $330 million of that would come from Millstone, the only nuclear plant in the state.

"If the tax passes we will be forced to shut Millstone. That burden of $330 million will make the plant no longer economically viable to operate," Dominion spokesman Ken Holt told Reuters.

State Senator John Fonfara, a Hartford Democrat, and State Representative Vickie Orsini Nardello, a Democrat from Bethany, referred the bill to the Joint Committee on Energy and Technology on March 10, one day before the massive earthquake crippled the Fukushima nuclear plant in Japan.

The bill passed the Energy and Technology Committee by a vote of 12 to 9 on March 22 and will commence on or after July 1 if it becomes law.

Since Fukushima, governments around the world, including the United States, have reviewed the safety of their existing nuclear fleets and some nations reevaluated proposals to build new reactors.

State Senator Andrea Stillman and State Representative Betsy Ritter, both Democrats from the town of Waterford where the plant is located, held a press conference challenging the fairness of the proposed bill.

"SB 1176 from its outset has the damaging effect of putting our state in one corner and one single corporate entity in the opposite corner — ahead of what promises to be a bruising, knockdown showdown between the two," Stillman said.

Ritter said the bill "specifically and punitively targets certain large companies, and creates a difficult and negative environment for businesses interested in thriving in the state of Connecticut. This proposal doesn't help us in building the strong economic future that our state so badly needs in these tough times."

The shutdown of Millstone could have a major impact on the state.

The 2,022-megawatt plant produces enough power to meet about half the state's energy needs without any greenhouse gas emissions.

Dominion said it provides about $1.2 billion in annual economic benefits to the state and employs 4,230 direct and indirect jobs, including 1,080 Dominion employees and 350 supplemental workers.

Dominion also said a shutdown of the plant would not only cut tax revenues for the state but lead to higher electricity costs for consumers due to more expensive replacement power.

Connecticut consumers already pay the second highest cost for power in the nation, almost 19 cents per kilowatt hour in 2010 versus the national average of about 11 cents. Only Hawaii consumers pay more.

"This is not an easy decision or idle threat," Dominion said on its website about closing the plant if the tax becomes law. The proposed tax threatens the economic viability of the facility and the jobs of more than 4,000 people.

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OPINION Rewiring Indian electricity

India Power Sector Crisis: a tangled market of underused plants, coal shortages, cross-subsidies, high transmission losses, and weak PPAs, requiring deregulation, power exchanges, and cost-reflective tariffs to fix insolvency and outages.

 

Key Points

India power market failure from subsidies, coal shortages, and losses, needing deregulation and reflective pricing.

✅ Deregulate to enable spot trading on power exchanges

✅ End cross-subsidies; charge cost-reflective tariffs

✅ Secure coal supply; cut T&D losses and theft

 

India's electricity industry is in a financial and political tangle.

Power producers sit on thousands of megawatts of underutilized plant, while consumers face frequent power cuts, both planned and unplanned.

Financially troubled generators struggle to escape insolvency proceedings. The state-owned banks that have mostly financed power utilities fear that debts of troubled utilities totaling 1.74 trillion rupees will soon go bad.

Aggressive bidding for supply contracts and slower-than-expected demand growth, including a recent demand slump in electricity use, is the root cause. The problems are compounded by difficulties in securing coal and other fuels, high transmission losses, electricity theft and cash-starved distribution companies.

But India's 36 state and union territory governments are contributing mightily to this financial and economic mess. They persist with populist cross-subsidies -- reducing charges for farmers and households at the cost of nonagricultural businesses, especially energy-intensive manufacturing sectors such as steel.

The states refuse to let go of their control over how electricity is produced, distributed and consumed. And they are adamant that true markets, with freedom for large industrial users to buy power at market-determined rates from whichever utility they want at power exchanges -- will not become a reality in India.

State politicians are driven mainly by the electoral need to appease farmers, India's most important vote bank, who have grown used to decades of nearly-free power.

New Delhi is therefore relying on short-term fixes instead of attempting to overhaul a defunct system. Users must pay the real cost of their electricity, as determined by a properly integrated national market free of state-level interference if India's power mess is to be really addressed.

As of Aug. 31, the country's total installed production capacity was 344,689 MW, underscoring its status as the third-largest electricity producer globally by output. Out of that, thermal power comprising coal, gas and diesel accounted for 64%, hydropower 13% and renewables accounted for 20%. Commercial and industrial users accounted for 55% of consumption followed by households on 25% and the remaining 20% by agriculture.

Coal-fired power generation, which contributes roughly 90% of thermal output and the bulk of the financially distressed generators, is the most troubled segment as it faces a secular decline in tariffs due to increasing competition from highly subsidized renewables (which also benefit from falling solar panel costs), coal shortages and weak demand.

The Central Electricity Act (CEA) 2003 opened the gates of the country's power sector for private players, who now account for 45% of generating capacity.

But easy credit, combined with an overconfident estimation of the risks involved, emboldened too many investors to pile in, without securing power purchase agreements (PPAs) with distribution companies.

As a result, power capacity grew at an annual compound rate of 11% compared to demand at 6% in the last decade leading to oversupply.

This does not mean that the electricity market is saturated. Merely that there are not enough paying customers. Distributors have plenty of consumers who will not or cannot pay, even though they have connections. There is huge unmet demand for power. There are 32 million Indian homes -- roughly 13% of the total -- mostly rural and poor with no access to electricity.

Moreover, consumption by those big commercial and industrial users which do not enjoy privileged rates is curbed by high prices, driven up by the cost of subsidizing others, extra charges on exchange-traded power and transmission and distribution losses (including theft) of 20-30%.

With renewables increasingly becoming cheaper, financially stressed distributors are avoiding long-term power purchase agreements, preferring spot markets. Meanwhile, coal shortages force generators to buy expensive imported coal supplies or cut output. The operating load for most private generators, which suffer particularly acute coal shortages in compared to state-owned utilities, has fallen from 84% in 2009-2010 to 55% now.

Smoothing coal supplies should be the top priority. Often coal is denied to power generators without long-term purchase contracts. Such discrimination in coal allocation prevails -- because the seller (state-run Coal India and its numerous subsidiaries) is an inefficient monopolist which cannot produce enough and rations coal supplies, favoring state-run generators over private.

To help power producers, New Delhi plans measures including auctioning power sales contracts with assured access to coal. However, even though coal and electricity shortages eased recently, such short-term fixes won't solve the problem. With electricity prices in secular decline, distributors are not seeking long-term supply contracts -- rather they are often looking for excuses to get out of existing agreements.

India needs a fundamental two-step reform. First, the market must be deregulated to allow most bulk suppliers and users to move to power trading exchanges, which currently account for just 10% of the market.

This would lead to genuine price discovery in a spot market and, in time, lead to the trading of electricity futures contracts. That would help in consumers and producers hedge their respective costs and revenues and safeguard their economic positions without any need for government intervention.

The second step to a healthy electricity industry is for consumers to pay the real cost of power. Cross-subsidization must end. That would promote optimal electricity use, innovation and environmental protection. Farmers enjoying nearly-free power create ecological problems by investing in water-guzzling crops such as rice and sugar cane.

Most industrial consumers, who do not have power supply privileges, have their businesses distorted and delayed by high prices. Lowering their costs would encourage power-intensive manufacturing to expand, and in the process, boost electricity demand and improve capacity utilization.

Of course, cutting theft is central to making consumers pay their way. Government officials must stop turning a blind eye to theft, especially when such transmission and distribution losses average 20%.

Politicians who want to continue subsidizing farmers or assist the poor can do so by paying cash out directly to their bank accounts, instead of wrongly relying on the power sector.

Such market-oriented reforms have long been blocked by state-level politicians, who now enjoy the influence born of operating subsidies and interfering in the sector. New Delhi must address this opposition. Narendra Modi, as a self-styled reforming prime minister, should have the courage to bite this bullet and convince state governments (starting with those ruled by his Bharatiya Janata Party) to reform. To encourage cooperation, he could offer states securing real improvements an increased share of centrally collected taxes.

Ritesh Kumar Singh is to be the chief economist of the new policy research and advocacy company Indonomics Consulting. He is former assistant director of the Finance Commission of India.

 

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Net-Zero Emissions Might Not Be Possible Without Nuclear Power

Nuclear Power for Net-Zero Grids anchors reliable baseload, integrating renewables with grid stability as solar, wind, and battery storage scale. Advanced reactors complement hydropower, curb natural gas reliance, and accelerate deep decarbonization of electricity systems.

 

Key Points

Uses nuclear baseload and advanced reactors to stabilize power grids and integrate higher shares of variable renewables.

✅ Provides firm, zero-carbon baseload for renewable-heavy grids

✅ Reduces natural gas dependence and peaker emissions

✅ Advanced reactors enhance safety, flexibility, and cost

 

Declining solar, wind, and battery technology costs are helping to grow the share of renewables in the world’s power mix to the point that governments are pledging net-zero emission electricity generation in two to three decades to fight global warming.

Yet, electricity grids will continue to require stable baseload to incorporate growing shares of renewable energy sources and ensure lights are on even when the sun doesn’t shine, or the wind doesn’t blow. Until battery technology evolves enough—and costs fall far enough—to allow massive storage and deployment of net-zero electricity to the grid, the systems will continue to need power from sources other than solar and wind.

And these will be natural gas and nuclear power, regardless of concerns about emissions from the fossil fuel natural gas and potential disasters at nuclear power facilities such as the ones in Chernobyl or Fukushima.

As natural gas is increasingly considered as just another fossil fuel, nuclear power generation provides carbon-free electricity to the countries that have it, even as debates over nuclear power’s outlook continue worldwide, and could be the key to ensuring a stable power grid capable of taking in growing shares of solar and wind power generation.

The United States, where nuclear energy currently provides more than half of the carbon-free electricity, is supporting the development of advanced nuclear reactors as part of the clean energy strategy.

But Europe, which has set a goal to reach carbon neutrality by 2050, could find itself with growing emissions from the power sector in a decade, as many nuclear reactors are slated for decommissioning and questions remain over whether its aging reactors can bridge the gap. The gap left by lost nuclear power is most easily filled by natural gas-powered electricity generation—and this, if it happens, could undermine the net-zero goals of the European Union (EU) and the bloc’s ambition to be a world leader in the fight against climate change.

 

U.S. Power Grid Will Need Nuclear For Net-Zero Emissions

A 2020 report from the University of California, Berkeley, said that rapidly declining solar, wind, and storage prices make it entirely feasible for the U.S. to meet 90 percent of its power needs from zero-emission energy sources by 2035 with zero increases in customer costs from today’s levels.

Still, natural gas-fired generation will be needed for 10 percent of America’s power needs. According to the report, in 2035 it would be possible that “during normal periods of generation and demand, wind, solar, and batteries provide 70% of annual generation, while hydropower and nuclear provide 20%.” Even with an exponential rise in renewable power generation, the U.S. grid will need nuclear power and hydropower to be stable with such a large share of solar and wind.

The U.S. Backs Advanced Nuclear Reactor Technology

The U.S. Department of Energy is funding programs of private companies under DOE’s new Advanced Reactor Demonstration Program (ARDP) to showcase next-gen nuclear designs for U.S. deployment.

“Taking leadership in advanced technology is so important to the country’s future because nuclear energy plays such a key role in our clean energy strategy,” U.S. Secretary of Energy Dan Brouillette said at the end of December when DOE announced it was financially backing five teams to develop and demonstrate advanced nuclear reactors in the United States.

“All of these projects will put the U.S. on an accelerated timeline to domestically and globally deploy advanced nuclear reactors that will enhance safety and be affordable to construct and operate,” Secretary Brouillette said.

According to Washington DC-based Nuclear Energy Institute (NEI), a policy organization of the nuclear technologies industry, nuclear energy provides nearly 55 percent of America’s carbon-free electricity. That is more than 2.5 times the amount generated by hydropower, nearly 3 times the amount generated by wind, and more than 12 times the amount generated by solar. Nuclear energy can help the United States to get to the deep carbonization needed to hit climate goals.

 

Europe Could See Rising Emissions Without Nuclear Power

While the United States is doubling down on efforts to develop advanced and cheaper nuclear reactors, including microreactors and such with new types of technology, Europe could be headed to growing emissions from the electricity sector as nuclear power facilities are scheduled to be decommissioned over the next decade and Europe is losing nuclear power just when it really needs energy, according to a Reuters analysis from last month.

In many cases, it will be natural gas that will come to the rescue to power grids to ensure grid stability and enough capacity during peak demand because solar and wind generation is variable and dependent on the weather.

For example, Germany, the biggest economy in Europe, is boosting its renewables targets, but it is also phasing out nuclear by next year, amid a nuclear option debate over climate strategy, while its deadline to phase out coal-fired generation is 2038—more than a decade later compared to phase-out plans in the UK and Italy, for example, where the deadline is the mid-2020s.

The UK, which left the EU last year, included support for nuclear power generation as one of the ten pillars in ‘The Ten Point Plan for a Green Industrial Revolution’ unveiled in November.

The UK’s National Grid has issued several warnings about tight supply since the fall of 2020, due to low renewable output amid high demand.

“National Grid’s announcement underscores the urgency of investing in new nuclear capacity, to secure reliable, always-on, emissions-free power, alongside other zero-carbon sources. Otherwise, we will continue to burn gas and coal as a fallback and fall short of our net zero ambitions,” Tom Greatrex, Chief Executive of the Nuclear Industry Association, said in response to one of those warnings.

But it’s in the UK that one major nuclear power plant project has notoriously seen a delay of nearly a decade—Hinkley Point C, originally planned in 2007 to help UK households to “cook their 2017 Christmas turkeys”, is now set for start-up in the middle of the 2020s.

Nuclear power development and plant construction is expensive, but it could save the plans for low-carbon emission power generation in many developed economies, including in the United States.

 

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Germany agrees 200 bln euro package to shield against surging energy prices

Germany Energy Price Defensive Shield counters soaring gas and electricity costs with a gas price brake, VAT cut, subsidies for households and SMEs, LNG terminals, renewables, temporary nuclear extension, and targeted borrowing to curb inflation.

 

Key Points

A 200 billion euro package to cap energy costs, subsidize basics, and stabilize inflation for firms and households.

✅ Gas price brake and VAT cut reduce consumer and SME energy bills.

✅ Temporary electricity subsidies and nuclear extension aid winter supply.

✅ Funded via new borrowing; supports LNG and renewable expansion.

 

German Chancellor Olaf Scholz set out a 200 billion euro ($194 billion) "defensive shield", including a gas price brake and a cut in sales tax for the fuel, to protect companies and households from the impact of soaring energy prices in Germany.

Europe's biggest economy is trying to cope with surging gas and electricity costs, with local utilities seeking help, caused largely by a collapse in Russian gas supplies to Europe, which Moscow has blamed on Western sanctions following its invasion of Ukraine in February.

3 minute readSeptember 29, 202211:35 AM PDTLast Updated 6 days ago
Germany agrees 200 bln euro package to shield against surging energy prices
By Holger Hansen and Kirsti Knolle

"Prices have to come down, so the government will do everything it can. To this end, we are setting up a large defensive shield," said Scholz.

Under the plans, to run until spring 2024, the government will introduce an emergency price brake on gas, the details of which will be announced next month, while Europe weighs emergency measures to limit electricity prices across the bloc. It is scrapping a planned gas levy meant to help firms struggling with high spot market prices. 

A temporary electricity price brake will subsidise basic consumption for consumers and small and medium-sized companies, and complements an electricity subsidy for industries under discussion. Sales tax on gas will fall to 7% from 19%.

In its efforts to cut its dependence on Russian energy, Germany is also promoting the expansion of renewable energy and developing liquefied gas terminals, but rolling back European electricity prices remains complex.

To help households and companies weather any winter supply disruption, amid rising heating and electricity costs this winter, especially in southern Germany, two nuclear plants previously due to close by the end of this year will be able to keep running until spring 2023.

The package will be financed with new borrowing this year, as Berlin makes use of the suspension of a constitutionally enshrined limit on new debt of 0.35% of gross domestic product.

Finance Minister Christian Lindner has said he wants to comply with the limit again next year, even as the EU outlines gas price cap strategies for the market.

Lindner, of the pro-business Free Democrats (FDP) who share power with Scholz's Social Democrats and the Greens, said on Thursday the country's public finances were stable.

"We can put it no other way: we find ourselves in an energy war," said Lindner. "We want to clearly separate crisis expenditure from our regular budget management, we want to send a very clear signal to the capital markets."

He also said the steps would act as a brake on inflation, which hit its highest level in more than a quarter of century in September.

Opposition conservative Markus Soeder, premier of the southern state of Bavaria, said the steps gave the right signal.

"It gives industry and citizens confidence that we can get through the winter," he said.

 

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Can the Electricity Industry Seize Its Resilience Moment?

Hurricane Grid Resilience examines how utilities manage outages with renewables, microgrids, and robust transmission and distribution systems, balancing solar, wind, and batteries to restore service, harden infrastructure, and improve storm response and recovery.

 

Key Points

Hurricane grid resilience is a utility approach to withstand storms, reduce outages, and speed safe power restoration.

✅ Focus on T&D hardening, vegetation management, remote switching

✅ Balance generation mix; integrate solar, wind, batteries, microgrids

✅ Plan 12-hour shifts; automate forecasting and outage restoration

 

When operators of Duke Energy's control room in Raleigh, North Carolina wait for a hurricane, the mood is often calm in the hours leading up to the storm.

“Things are usually fairly quiet before the activity starts,” said Mark Goettsch, the systems operations manager at Duke. “We’re anxiously awaiting the first operation and the first event. Once that begins, you get into storm mode.”

Then begins a “frenzied pace” that can last for days — like when Hurricane Florence parked over Duke’s service territory in September.

When an event like Florence hits, all eyes are on transmission and distribution. Where it’s available, Duke uses remote switching to reconnect customers quickly. As outages mount, the utility forecasts and balances its generation with electricity demand.

The control center’s four to six operators work 12-hour shifts, while nearby staff members field thousands of calls and alarms on the system. After it’s over, “we still hold our breath a little bit to make sure we’ve operated everything correctly,” said Goettsch. Damage assessment and rebuilding can only begin once a storm passes.

That cycle is becoming increasingly common in utility service areas like Duke's.

A slate of natural disasters that reads like a roll call — Willa, Michael, Harvey, Irma, Maria, Florence and Thomas — has forced a serious conversation about resiliency. And though Goettsch has heard a lot about resiliency as a “hot topic” at industry events and meetings, those conversations are only now entering Duke’s control room.

Resilience discussions come and go in the energy industry. Storms like Hurricane Sandy and Matthew can spur a nationwide focus on resiliency, but change is largely concentrated in local areas that experienced the disaster. After a few news cycles, the topic fades into the background.

However, experts agree that resilience is becoming much more important to year-round utility planning and operations as utilities pursue decarbonization goals across their fleets. It's not a fad.

“If you look at the whole ecosystem of utilities and vendors, there’s a sense that there needs to be a more resilient grid,” said Miki Deric, Accenture’s managing director of utilities, transmission and distribution for North America. “Even if they don’t necessarily agree on everything, they are all working with the same objective.”

Can renewables meet the challenge?

After Hurricane Florence, The Intercept reported on coal ash basins washed out by the storm’s overwhelming waters. In advance of that storm, Duke shut down one nuclear plant to protect it from high winds. The Washington Post also recently reported on a slowly leaking oil spill, which could surpass Deepwater Horizon in size, caused by Hurricane Ivan in 2004.

Clean energy boosters have seized on those vulnerabilities.They say solar and wind, which don’t rely on access to fuel and can often generate power immediately after a storm, provide resilience that other electricity sources do not.

“Clearly, logistics becomes a big issue on fossil plants, much more than renewable,” said Bruce Levy, CEO and president at BMR Energy, which owns and operates clean energy projects in the Caribbean and Latin America. “The ancillaries around it — the fuel delivery, fuel storage, water in, water out — are all as susceptible to damage as a renewable plant.”

Duke, however, dismissed the notion that one generation type could beat out another in a serious storm.

“I don’t think any generation source is immune,” said Duke spokesperson Randy Wheeless. “We’ve always been a big supporter of a balanced energy mix, reflecting why the grid isn't 100% renewable in practice today. That’s going to include nuclear and natural gas and solar and renewables as well. We do that because not every day is a good day for each generation source.”

In regard to performance, Wade Schauer, director of Americas Power & Renewables Research at Wood Mackenzie, said the situation is “complex.” According to him, output of solar and wind during a storm depends heavily on the event and its location.

While comprehensive data on generation performance is sparse, Schauer said coal and gas generators could experience outages at 25 percent while stormy weather might cut 95 percent of output from renewables, underscoring clean energy's dirty secret about variability under stress. Ahead of last year’s “bomb cyclone” in New England, WoodMac data shows that wind dropped to less than 1 percent of the supply mix.

“When it comes to resiliency, ‘average performance’ doesn't cut it,” said Schauer.

In the future, he said high winds could impact all U.S. offshore wind farms, since projects are slated for a small geographic area in the Northeast. He also pointed to anecdotal instances of solar arrays in New England taken out by feet of snow. During Florence, North Carolina’s wind farms escaped the highest winds and continued producing electricity throughout. Cloud cover, on the other hand, pushed solar production below average levels.

After Florence passed, Duke reported that most of its solar came online quickly, although four of its utility-owned facilities remained offline for weeks afterward. Only one was because of damage; the other three remained offline due to substation interconnection issues.

“Solar performed pretty well,” said Wheeless. “But did it come out unscathed? No.”

According to installer reports, solar systems fared relatively well in recent storms, even as the Covid-19 impact on renewables constrained projects worldwide. But the industry has also highlighted potential improvements. Following Hurricanes Maria and Irma, the Federal Emergency Management Agency published guidelines for installing and maintaining storm-resistant solar arrays. The document recommended steps such as annual checks for bolt tightness and using microinverters rather than string inverters.

Rocky Mountain Institute (RMI) also assembled a guide for retrofitting and constructing new installations. It described attributes of solar systems that survived storms, like lateral racking supports, and those that failed, like undersized and under-torqued bolts.

“The hurricanes, as much as no one liked them, [were] a real learning experience for folks in our industry,” said BMR’s Levy. “We saw what worked, and what didn’t.”          

Facing the "800-pound gorilla" on the grid

Advocates believe wind, solar, batteries and microgrids offer the most promise because they often rely less on transmitting electricity long distances and could support peer-to-peer energy models within communities.

Most extreme weather outages arise from transmission and distribution problems, not generation issues. Schauer at WoodMac called storm damage to T&D the “800-pound gorilla.”

“I'd be surprised if a single customer power outage was due to generators being offline, especially since loads where so low due to mild temperatures and people leaving the area ahead of the storm,” he said of Hurricane Florence. “Instead, it was wind [and] tree damage to power lines and blown transformers.”

 

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Power firms win UK subsidies for new Channel cables project

UK Electricity Interconnectors secure capacity market subsidies, supporting winter reliability with seabed cables to France and Belgium via the Channel Tunnel, lowering consumer costs, squeezing coal, and challenging new gas plants through cross-border energy trading.

 

Key Points

High-voltage cables linking Britain to Europe, securing backup capacity, cutting costs and boosting winter reliability.

✅ Won capacity market contracts at record-low prices

✅ Cables to France and Belgium via Channel Tunnel, seabed routes

✅ Squeezes coal, challenges new gas; renewables may join market

 

New electricity cables across the Channel to France and Belgium will be a key part of keeping Britain’s lights on during winter amid record electricity prices across Europe in the early 2020s, after their owners won backup power subsidies in a government auction this week.

For the first time, interconnector operators successfully bid for a slice of hundreds of millions’ worth of contracts in the capacity market. That will help cut costs for consumers, given how electricity is priced in Europe today, and squeeze out old coal power plants.

Three new interconnectors are currently being built to Europe, almost doubling existing capacity, with one along the Channel Tunnel and two on the seabed: one between Kent and Zeebrugge and one from Hampshire to Normandy. 

The interconnectors were success stories in this week’s capacity auction, which saw power firms bid to provide backup electricity in the winter of 2021/22. Prices for the four-year contracts hit a record low of £8.40 per kilowatt per year, which analysts described as a shock and well below expectations.

One industry source said the figure was “miles away” from what is needed to encourage companies to build big new gas power stations, which some argue are necessary to fill the gap when the UK’s ageing nuclear reactors close as Europe loses nuclear power across the region over the next decade.

While bad news for those firms, the low price is good for consumers. The subsidies will add about £525m to energy bills, or £5.68 for the average household, compared with £11 for the year before, according to analysts Cornwall Insight.

Existing gas power stations scooped up most of the contracts, but new gas ones lost out, as did several coal plants. Battery storage plants, a standout success in the last auction, fared comparatively poorly after changes to the rules.

Experts at Bernstein bank said the the misses by coal meant that around half the UK’s remaining coal power capacity could close from October 2019, when existing capacity market contracts run out. Chaitanya Kumar, policy adviser at thinktank Green Alliance, said: “Coal’s exit from the UK’s energy system just moved a step closer as coal contracts fell by half compared with last year.”

Tom Edwards, an analyst at Cornwall Insight, said that more interconnectors were likely to bid into future rounds of the capacity market, such as the cable being laid between Norway and the UK. Relying on foreign power supplies was fine, he said, provided Brexit did not make energy trading more difficult and the interconnectors delivered at times of need, where events like Irish grid price spikes illustrate the stress points.

However, one industry source, who wants to see new gas plants built in the UK, said the results showed that the system was not working, amid UK peak power prices that have climbed in recent trading. “That self-sufficiency doesn’t seem to be a priority at a time when we’re breaking away from Europe is a bit weird,” they said.

But the prospects for new gas plants in future rounds of the capacity market look bleak. They will very likely face a new source of competition next year, if energy regulator Ofgem approves a proposal to allow renewables to compete too.

 

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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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