OPA Officially Files Proposed 20-Year Plan

Eskom Wind Power Curtailment reflects South Africa's lockdown-driven drop in electricity demand, prompting grid-balancing measures as Eskom signals reduced IPP procurement from renewable energy projects during low-demand hours, despite guarantees and flexible generation constraints.

Key Points

A temporary reduction of wind IPP purchases by Eskom to balance surplus grid capacity during the COVID-19 lockdown slump

✅ Demand drop of 7,500 MW reduced need for variable renewables.

✅ Curtailment likely during low-demand early-morning hours.

✅ IPP revenues protected via contract extensions and guarantees.

South African state utility Eskom has told independent wind farms that it could buy less of their power in the coming days, as electricity demand has plummeted during a lockdown, reflecting the Covid-19 impact on renewables worldwide, aimed at curbing the spread of the coronavirus.

Eskom, which is mired in a financial crisis and has struggled to keep the lights on in the past year, said on Tuesday that power demand had dropped by more than 7,500 megawatts since the lockdown started on Friday and that it had taken offline some of its own generators.

The utility supplements its generating capacity, which is mainly derived from coal, by buying power from solar and wind farms, as wind becomes a competitive source of electricity globally, under contracts signed as part of the government’s renewable energy programme.

Spokesman Sikonathi Mantshantsha said Eskom had not yet curtailed power procurement from wind farms but that it had told them, echoing industry warnings on wind investment risk seen by the sector, this could happen “for a few hours a day during the next few days, perhaps until the lockdown is lifted”.

“Most of them are able to feed power into the grid in the early hours of the day. That coincides with the lowest demand period and can highlight curtailment challenges when supply exceeds need. And we now have a lot more capacity than needed,” Mantshantsha said.

During the lockdown imposed by President Cyril Ramaphosa, businesses apart from those deemed “essential services” are closed, mirroring Spanish wind factory closures elsewhere. Many power-hungry mines and furnaces have suspended operations.

Eskom has relatively little of its own “flexible generation” capacity, which can be ramped up or down easily, unlike regions riding a renewables boom in South Australia to export power.

The government has committed to buy up to 200 billion rand ($11.1 billion) of electricity from independent power producers and has issued state guarantees for those purchases.

“They will be compensated for their losses, amid U.S. utility-solar slowdowns being reported - each day lost will be added to their contracts,” Mantshantsha said of the wind farms. “In the end they will not be worse off.”

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New York Renewable Energy Contracts secure 23 projects totaling 2.3 GW, spanning offshore wind, solar, and battery storage under CLCPA goals, advancing 70% by 2030, a carbon-free 2040 grid, grid reliability, and green jobs.

Key Points

State agreements securing 23 wind, solar, and storage projects (2.3 GW) to meet CLCPA clean power targets.

✅ 2.3 GW across 23 wind, solar, and storage projects statewide

✅ Supports 70% renewables by 2030; carbon-free grid by 2040

✅ Drives emissions cuts, grid reliability, and green jobs

In a significant milestone for the state’s clean energy ambitions, New York has finalized contracts with 23 renewable energy projects, as part of large-scale energy projects underway in New York, totaling a combined capacity of 2.3 gigawatts (GW). This move is part of the state’s ongoing efforts to accelerate its transition to renewable energy, reduce carbon emissions, and meet the ambitious targets set under the Climate Leadership and Community Protection Act (CLCPA), which aims to achieve a carbon-free electricity grid by 2040.

A Strong Commitment to Renewable Energy

The 23 projects secured under these contracts represent a diverse range of renewable energy sources, including wind, solar, and battery storage. Together, these projects are expected to contribute significantly to New York’s energy grid, generating enough clean electricity to power millions of homes. The deal is a key component of New York’s broader strategy to achieve a 70% renewable energy share in the state’s electricity mix by 2030 and to reduce greenhouse gas emissions by 85% by 2050.

Governor Kathy Hochul celebrated the agreements as a major step forward in the state’s commitment to combating climate change while creating green jobs and economic opportunities. “New York is leading the nation in its clean energy goals, and these projects will help us meet our bold climate targets while delivering reliable and affordable energy to New Yorkers,” Hochul said in a statement.

The Details of the Contracts

The 23 projects span across various regions of the state, with an emphasis on areas that are well-suited for renewable energy development, such as upstate New York, which boasts vast open spaces ideal for large-scale solar and wind installations and the state is investigating sites for offshore wind projects along the coast. The contracts finalized by the state will ensure a steady supply of clean power from these renewable sources, helping to stabilize the grid and reduce reliance on fossil fuels.

A significant portion of the new renewable capacity will come from offshore wind projects, which have become a cornerstone of New York’s renewable energy strategy. Offshore wind has the potential to provide large amounts of electricity, and the state recently greenlighted the country's biggest offshore wind farm to date, taking advantage of the state's proximity to the Atlantic Ocean. Several of the contracts finalized include offshore wind farm projects, which are expected to be operational within the next few years.

In addition to wind energy, solar power continues to be a critical component of the state’s renewable energy strategy. The state has already made substantial investments in solar energy, having achieved solar energy goals ahead of schedule recently, and these new contracts will further expand the state’s solar capacity. The inclusion of battery storage projects is another important element, as energy storage solutions are vital to ensuring that renewable energy can be effectively utilized, even when the sun isn’t shining or the wind isn’t blowing.

Economic and Job Creation Benefits

The finalization of these 23 contracts will not only bring significant environmental benefits but also create thousands of jobs in the renewable energy sector. Construction, maintenance, and operational jobs will be generated throughout the life of the projects, benefiting communities across the state, including areas near Long Island's South Shore wind proposals that stand to gain from new investment. The investment in renewable energy is expected to support New York’s recovery from the economic impacts of the COVID-19 pandemic, contributing to the state’s clean energy economy and providing long-term economic stability.

The state's focus on clean energy also provides opportunities for local businesses, highlighted by the first Clean Energy Community designation in the state, as many of these projects will require services and materials from within New York State. Additionally, Governor Hochul’s administration has made efforts to ensure that disadvantaged communities and workers from underrepresented backgrounds will have access to job training and employment opportunities within the renewable energy sector.

The Path Forward: A Clean Energy Future

New York’s aggressive move toward renewable energy is indicative of the state’s commitment to addressing climate change and leading the nation in clean energy innovation. By locking in contracts for these renewable energy projects, the state is not only securing a cleaner future but also ensuring that the transition is fair and just for all communities, particularly those that have been historically impacted by pollution and environmental degradation.

While the finalized contracts mark a major achievement, the state’s work is far from over. The completion of these 23 projects is just one piece of the puzzle in New York’s broader strategy to decarbonize its energy system. To meet its ambitious targets under the CLCPA, New York will need to continue investing in renewable energy, energy storage, grid modernization, and energy efficiency programs.

As New York moves forward with its clean energy transition, and as BOEM receives wind power lease requests in the Northeast, the state will likely continue to explore new technologies and innovative solutions to meet the growing demand for renewable energy. The success of the 23 finalized contracts serves as a reminder of the state’s leadership in the clean energy space and its ongoing efforts to create a sustainable, low-carbon future for all New Yorkers.

New York’s decision to finalize contracts with 23 renewable energy projects totaling 2.3 gigawatts represents a bold step toward meeting the state’s clean energy and climate goals. These projects, which include a mix of wind, solar, and energy storage, will contribute significantly to reducing the state’s reliance on fossil fuels and lowering greenhouse gas emissions. With the additional benefits of job creation and economic growth, this move positions New York as a leader in the nation’s transition to renewable energy and a sustainable future.

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EU Winter Energy Mix 2022-2023 shows renewables, wind, solar, and hydro overtaking coal and gas, as demand fell amid high prices; Ember and IEA confirm lower emissions across Europe during the energy crisis.

Key Points

It describes Europe's winter power mix: reduced coal and gas, and record wind, solar, and hydro output.

✅ Coal generation fell 11% YoY; gas output declined even more.

✅ Renewables supplied 40%: wind, solar, and hydro outpaced fossil fuels.

✅ Ember and IEA confirm trends; mild winter tempered demand.

The EU burned less coal this winter during the energy crisis than in previous years, according to an analysis, quashing fears that consumption of the most polluting fossil fuel would soar as countries scrambled to find substitutes for lost supplies of Russian gas.

The study from energy think-tank Ember shows that between October 2022 and March 2023 coal generation fell 27 terawatt hours, or almost 11 per cent year on year, while gas generation fell 38 terawatt hours, as renewables crowded out gas and consumers cut electricity consumption in response to soaring prices.

Renewable energy supplies also rose, with combined wind and solar power and hydroelectric output outstripping fossil fuel generation for the first time, providing 40 per cent of all electricity supplies. The Financial Times checked Ember’s findings with the International Energy Agency, which said they broadly matched its own preliminary analysis of Europe’s electricity generation over the winter.

The study demonstrates that fears of a steep rebound in coal usage in Europe’s power mix were overstated, despite the continent’s worst energy crisis in 40 years following Russia’s full-scale invasion of Ukraine, even as stunted hydro and nuclear output in parts of Europe posed challenges.

While Russia slashed gas supplies to Europe and succeeded in boosting energy prices for consumers to record levels, the push by governments to rejuvenate old coal plants, including Germany's coal generation, to ensure the lights stayed on ultimately did not lead to increased consumption.

“With Europe successfully on the other side of this winter and major supply disruptions avoided, it is clear the threatened coal comeback did not materialise,” analysts at Ember said in the report.

“With fossil fuel generation down, EU power sector emissions during winter were the lowest they have ever been.”

Ember cautioned, however, that Europe had been assisted by a mild winter that helped cut electricity demand for heating and there was no guarantee of such weather next winter. Companies and households had also endured a lot of pain as a result of the higher prices that had led them to cut consumption, even though in some periods, such as the latest lockdown, power demand held firm in parts of Europe.

Total electricity consumption between October and March declined 94 terawatt hours, or 7 per cent, compared with the same period in winter 2021/22, continuing post-Covid transition dynamics across Europe.

“For a lot of people this winter was really hard with electricity prices that were extraordinarily high and we shouldn’t lose sight of that,” said Ember analyst Harriet Fox.

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Alberta Coal-to-Gas Transition will retire coal units, convert plants to natural gas, boost renewables, and affect electricity prices, with policy tools like a price cap and carbon tax shaping the power market.

Key Points

Shift retiring coal units and converting to natural gas and renewables, targeting coal elimination by 2030.

✅ TransAlta retires Sundance coal unit; more units convert to gas.

✅ Forward prices seen near $40 to low $50/MWh in 2018.

✅ 6.8-cent cap shields consumers; carbon tax backstops costs.

The turn of the calendar to 2018 saw TransAlta retire one of its coal power generating units at its Sundance plant west of Edmonton and mothball another as it begins the transition to cleaner sources of energy across Alberta.

The company will say goodbye to three more units over the next year and a half to prepare them for conversion to natural gas.

This is part of a fundamental shift in Alberta, which will see coal power retired ahead of schedule by 2030, replaced by a mix of natural gas and renewable sources.

“We’re going to see that transition continue right up from now until 2030, and likely beyond 2030 as wind generation starts to outpace coal and new technologies become available.”

Coal has long been the backbone of Alberta’s grid, currently providing nearly 40 per cent of the provinces power. Analysts believe removing it will come with a cost to consumers, according to a report on coal phase-out costs published recently.

“The open question over the next couple of years is whether they’re going to inch up gradually, or whether they’re going to inch up like they did in 2012 and 2013, by having periods of very high power prices.”

Albertans are currently paying historically low power prices, with generation costs last year averaging below $23/MWh, less than half of the average of the past 10 years.

A report released in mid-December by electricity consultant firm EDC Associates showed forward prices moving from the $40/MWh in the first three months of 2018, to the low $50/MWh range.

“The forwards tend to take several weeks to fully react to announcements, so its anticipated that prices will continue to gradually track upwards over the coming weeks,” the report reads.

The NDP government has taken steps to protect consumers against price surges. Last spring, a price cap of 6.8 cents/MWh was put in place until the spring of 2021, with any cost above that to be covered by carbon tax revenue.

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Snohomish PUD rate increase addresses storm recovery after a bomb cyclone and extended cold snap, stabilizing finances and grid reliability while offering assistance programs, payment plans, and energy efficiency for customers.

Key Points

Temp 5.8% residential hike in Feb 2025 to recover storm costs, meet cold snap demand, and uphold reliable service.

✅ 5.8% residential increase effective Feb 2025

✅ Driven by bomb cyclone damage and cold snap demand

✅ Aid includes payment plans, efficiency rebates, low income support

In early February 2025, the Snohomish County Public Utility District (PUD) announced a temporary increase in electricity rates to offset the financial impact of severe weather events, including a bomb cyclone and an extended cold snap, that occurred in late 2024. This decision aims to stabilize the utility's finances, a pattern seen at other utilities such as Florida Power & Light, which pursued a hurricane surcharge to recover storm costs, while ensuring continued service reliability for its customers.

Background of the Weather Events

In November 2024, the Pacific Northwest experienced a powerful bomb cyclone—a rapidly intensifying storm characterized by a significant drop in atmospheric pressure. This event brought heavy rainfall, strong winds, and widespread power outages across the region. Compounding the situation, a prolonged cold weather period in December 2024 and January 2025 led to increased energy demand, and similar conditions drove up Pennsylvania power rates in the same winter season, as residents and businesses relied heavily on heating systems.

Impact on Snohomish PUD

The combination of the bomb cyclone and the subsequent cold weather placed considerable strain on the Snohomish PUD's infrastructure and financial resources. The utility incurred substantial costs for emergency repairs, restoration efforts, and the procurement of additional electricity to meet the heightened demand during the cold snap. These unforeseen expenses prompted the PUD to seek a temporary rate adjustment to maintain financial stability and continue providing reliable service to its customers.

Details of the Rate Increase

Effective February 2025, the Snohomish PUD implemented a temporary electricity rate increase of 5.8% for residential customers, compared with a 3% BC Hydro increase in the same region for context. This adjustment is designed to recover the additional costs incurred during the severe weather events. The PUD has communicated that this rate increase is temporary and will be reevaluated after a specified period to determine if further adjustments are necessary.

Customer Impact and Assistance Programs

While the rate increase is intended to be temporary, it may still pose a financial burden for some customers, even as some markets expect rates to stabilize in 2025 in other jurisdictions. To mitigate this impact, the Snohomish PUD has outlined several assistance programs:

• Payment Plans: Customers facing financial hardship can enroll in extended payment plans to spread the cost of the increased rates over a longer period.

• Energy Efficiency Programs: The PUD offers incentives and resources to help customers reduce energy consumption, potentially lowering their overall bills.

• Low-Income Assistance: Eligible low-income customers may qualify for additional support through state and federal assistance programs.

The utility encourages customers to contact their customer service department to explore these options and find the best solutions for their individual circumstances.

Community Response and Future Considerations

The announcement of the rate increase has elicited mixed reactions from the community. Some residents express understanding, recognizing the necessity of maintaining infrastructure and service reliability. Others have voiced concerns about the financial impact, particularly among vulnerable populations, a debate also seen with higher BC Hydro rates in nearby British Columbia.

Looking ahead, the Snohomish PUD is committed to enhancing its infrastructure to better withstand future extreme weather events, an approach aligned with other utilities' multi-year rate proposals to fund upgrades. This includes investing in grid modernization, implementing advanced weather forecasting tools, and developing comprehensive emergency response plans. The utility also plans to engage with the community through public forums and surveys to gather feedback and collaboratively develop strategies that balance financial sustainability with customer affordability.

The temporary electricity rate increase by the Snohomish County Public Utility District reflects the financial challenges posed by severe weather events and parallels regional trends, including BC Hydro's 3.75% over two years adjustments, and underscores the importance of proactive infrastructure investment and community engagement. While the rate adjustment aims to stabilize the utility's finances, the PUD remains focused on supporting its customers through assistance programs and ongoing efforts to enhance service reliability and resilience against future climate-related events.

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25% Tariff on Canadian Imports threatens New York energy markets, disrupting hydroelectric power and natural gas supply chains, raising electricity prices, increasing gas costs, and intensifying trade tensions, policy uncertainty, and cross-border logistics risks.

Key Points

A U.S. policy imposing 25% duties on Canadian goods, risking higher New York electricity and natural gas costs.

✅ Hydroelectric and gas imports face costlier cross-border flows

✅ Higher utility bills for NY households and businesses

✅ Supply chain volatility and policy uncertainty increase

President Donald Trump announced the imposition of a 25% tariff on all imports from Canada, citing concerns over drug trafficking and illegal immigration. This decision has raised significant concerns among experts and residents in New York, who warn that the tariff could lead to increased electricity and gas prices in the state.

Impact on New York's Energy Sector

New York relies heavily on energy imports from Canada, particularly electricity and natural gas. Canada is a major supplier of hydroelectric power to the northeastern United States, including New York, with its electricity exports at risk amid trade tensions. The imposition of a 25% tariff on Canadian goods could disrupt this supply chain, leading to higher energy costs for consumers and businesses in New York. Justin Wilcox, an energy analyst, stated, "If the tariff is implemented, it could lead to increased costs for electricity and gas, affecting both consumers and businesses."

Potential Economic Consequences

The increased energy costs could have broader economic implications for New York, and some experts advise against cutting Quebec's exports to avoid exacerbating market volatility. Higher electricity and gas prices may lead to increased operational costs for businesses, potentially resulting in higher prices for goods and services, while tariff threats have boosted support for Canadian energy projects that could reshape regional supply. This could exacerbate the cost-of-living challenges faced by residents and strain the state's economy.

Political and Diplomatic Reactions

The tariff has also sparked political and diplomatic reactions, including threats to cut U.S. electricity exports from Ontario that raised tensions. New York Governor Kathy Hochul expressed concern over the potential economic impact, stating, "We are closely monitoring the situation and are prepared to take necessary actions to protect New York's economy." Additionally, Canadian officials have expressed their disapproval of the tariff, and Ontario Premier Doug Ford's Washington meeting underscored ongoing discussions, emphasizing the importance of the trade relationship between the two countries.

Historical Context

This development is part of a broader pattern of trade tensions between the United States and its neighbors. In 2018, the U.S. imposed tariffs on Canadian steel and aluminum, leading to retaliatory measures from Canada. The current situation underscores the ongoing challenges in international trade relations, where a recent tariff threat delayed Quebec's green energy bill and highlighted the potential domestic impacts of such policies.

The imposition of a 25% tariff on Canadian imports by President Trump has raised significant concerns in New York regarding potential increases in electricity and gas prices. Experts warn that this could lead to higher costs for consumers and businesses, with broader economic implications for the state. As the situation develops, it will be crucial to monitor the responses from both state and federal officials, as well as how Canadians support tariffs on energy and minerals may influence policy, and the potential for diplomatic negotiations to address these trade tensions.

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