Hadron Collider struggles with bad connections

Lebanon Electricity Sector Reform aims to overhaul tariffs, modernize the grid, cut fuel oil subsidies, unlock donor loans, and deliver 24-hour power, restructuring EDL governance, boosting generation capacity, and reducing the budget deficit.

Key Points

A plan to restructure EDL, adjust tariffs, add capacity, and cut subsidies to deliver 24-hour power and reduce deficits.

✅ New tariffs and phased cost recovery

✅ Added generation capacity and grid modernization

✅ Governance reform of EDL and loss reduction

Lebanon’s Cabinet has approved a much-anticipated plan to restructure the country’s dysfunctional electricity sector, as Beirut power challenges continue to underscore chronic gaps, which hasn’t been developed since the time of the country’s civil war, decades ago.

The Lebanese depend on a network of private generator providers and decrepit power plants that rely on expensive fuel oil, while Israeli power supply competition seeks to lower consumer prices in a nearby market. Subsidies to the state electricity company cost nearly $2 billion a year.

For years, reform of the electricity sector, echoed by EU electricity market revamp, has been a major demand of Lebanon’s population of over 5 million. But frequent political stalemates, corruption and infighting among politicians, entrenched since the civil war that began in 1975, often derailed reforms.

International donors have called for reforms, including in the electricity sector, to unlock $11 billion in soft loans and grants pledged last year, as regional initiatives like the Jordan-Saudi electricity linkage move ahead to strengthen interconnections. Prime Minister Saad Hariri said Monday that the new plan will eventually provide 24-hour electricity.

Energy Minister Nada Boustani said that if there were no obstacles, residents could start feeling the difference next year, as an electricity market overhaul advances alongside the plan.

The plan, which is expected to get parliament approval, will reform the state electricity company, introduce new pricing policies, with international examples like France's electricity pricing scheme, and boost power production.

“This plan will also reduce the budget deficit,” Hariri told reporters. “This is positive and all international ratings companies will see … that Lebanon is taking real steps to reform in this sector.”

Lebanon’s soaring debt prompted rating agencies to downgrade the country’s credit ratings in January over concerns the government may not be able to pay its debts. Unemployment is believed to be at 36 per cent and more than 1 million Syrian refugees have overwhelmed the already aging infrastructure, while policy debates like Alberta electricity market changes illustrate different approaches to balancing cost and reliability.

Boustani told the Al-Manar TV that the electricity sector should be spared political bickering and populist approaches.

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BC-Alberta Transmission Intertie enables clean hydro to balance wind and solar, expanding transmission capacity so Site C hydro can dispatch power, cut emissions, lower costs, and accelerate electrification across provincial grids under federal climate policy.

Key Points

A cross-provincial grid link using BC hydro to firm Alberta wind and solar, cutting emissions and costs.

✅ Balances variable renewables with dispatchable hydro from Site C.

✅ Enables power trade: peak exports, low-cost wind imports.

✅ Lowers decarbonization costs and supports electrification goals.

By Mark Jaccard

Lost in the news and noise of the federal government's newly announced $170-per-tonne carbon tax was a single, critical sentence in Canada's updated climate plan, one that signals a strategy that could serve as the cornerstone for a future free of greenhouse gas emissions.

"The government will work with provinces and territories to connect parts of Canada that have abundant clean hydroelectricity with parts that are currently more dependent on fossil fuels for electricity generation — including by advancing strategic intertie projects."

Why do we think this one sentence is so important? And what has it got to do with the controversial Site C project Site C electricity debate under construction in British Columbia?

The answer lies in the huge amount of electricity we'll need to generate in Canada to achieve our climate goals for 2030 and 2050. Even while we aggressively pursue energy efficiency, our electric cars, buses and perhaps trucks in Canada's net-zero race will need a huge amount of new electricity, as will our buildings and industries. 

Luckily, Canada is blessed with an electricity system that is the envy of the world — already over 80 per cent zero emission, the bulk being from flexible hydro-electricity, with a backbone of nuclear power largely in Ontario, a national electricity success and rapidly growing shares of cheap wind and solar. 

Provincial differences
Yet the story differs significantly from one province to another. While B.C.'s electricity is nearly emissions free, the opposite is true of its neighbour, Alberta, where more than 80 per cent still comes from fossil fuels. This, despite an impressive shift away from coal power in recent years.

Now imagine if B.C. and Alberta were one province.

This might sound like the start of a bad joke, or a horror movie to some, but it's the crux of new research by a trio of energy economists who put a fine point on the value of such co-operation.

The study, by Brett Dolter, Kent Fellows and Nic Rivers, takes a detailed look at the economic case for completing Site C, BC Hydro's controversial large hydro project under construction, and makes three key conclusions.

First, they argue Site C should likely not have been started in the first place. Only a narrow set of assumptions can now justify its total cost. But what's done is done, and absent a time machine, the decision to complete the dam rests on go-forward costs.

On that note, their second conclusion is no more optimistic. Considering the cost to complete the project, even accounting for avoiding termination costs should it be cancelled, they find the economics of completing Site C over-budget status to be weak. If the New York Times had a Site C needle in the style of the newspaper's election visual, it would be "leaning cancel" at this point.

In Alberta, more than 80 per cent of the electricity still comes from fossil fuels, despite an impressive shift away from coal power in recent years. (CBC)
But it is their third conclusion that stands out as worthy of attention. They argue there is a case for completing Site C if the following conditions are met:

B.C. and Alberta reduce their electricity sector emissions by more than 75 per cent (this really means Alberta, given B.C.'s already clean position); and

B.C. and Alberta expand their ability to move electricity between their respective provinces by building new transmission lines.

Let's deal with each of these in turn.

On Condition 1, we give an emphatic: YES! Reducing electricity emissions is an absolute must to meet climate pledges if Canada is to come even close to achieving its net-zero goals. As noted above, a clean electricity grid will be the cornerstone of a decarbonized economy as we generate a great deal more power to electrify everything from industrial processes to heating to transportation and more. 

Condition 2 is more challenging. Talk of increasing transmission connections across Canada, including Hydro-Québec's U.S. strategy has been ongoing for over 50 years, with little success to speak of. But this time might well be different. And the implications for a completed Site C, should the government go that route, are profound.

Wind and solar costs rapidly declining
Somewhat ironically, the case for Site C is made stronger by the rapidly declining costs of two of its apparent renewable competitors: wind and solar.

The cost of wind and solar generation has fallen by 70 per cent and 90 per cent, respectively, a dramatic decline in the past 10 years. No longer can these variable sources of power be derided as high cost; they are unequivocally the cheapest sources of raw energy in electricity systems today.

However, electricity system operators must deal with their "non-dispatchability," a seemingly complicated term that simply means they produce electricity only when the sun shines and the wind blows, which is not necessarily when electricity customers want their electricity delivered (dispatched) to them. And because of this characteristic, the value of dispatchable electricity sources, like a completed Site C, will grow as a complement to wind and solar. 

Thus, as Alberta's generation of cheap wind and solar grows, so too does the value of connecting it with the firm, dispatchable resources available in B.C.

Rather than displacing wind and solar, large hydro facilities with the ability to increase or decrease output on short notice can actually enable more investment in these renewable sources. Expanding the transmission connection, with Site C on one side of that line, becomes even more valuable.

Many in B.C. might read this and rightly ask themselves, why should we foot the bill for this costly project to help out Albertans? The answer is that it won't be charity — B.C. will get paid handsomely for the power it delivers in peak periods and will be able to import wind power at low prices from Alberta in other times. B.C. will benefit greatly from these gains of trade.

Turning to Alberta, why should Albertans support B.C. reaping these gains? The answer is two-fold.

First, Site C will actually enable more low-cost wind and solar to be built in Alberta due to hydro's ability to balance these non-dispatchable renewables. Jobs and economic opportunity will occur in Alberta from this renewable energy growth.

Second, while B.C. imports won't come cheap, they will be less costly than the decarbonization alternatives Alberta would need without B.C.'s flexible hydro, as the economists' study shows. This means lower overall costs to Alberta's power consumers.

A clear role for Ottawa
To be sure, there are challenges to increasing the connectedness of B.C. and Alberta's power systems, not least of which is BC Hydro being a regulated, government-owned monopoly while Alberta is a competitive market amongst private generators. Some significant accommodations in climate policy and grids will be needed to ensure both sides can compete and benefit from trade on an equal footing.

There is also the pesky matter of permitting and constructing thousands of kilometres of power lines. Getting linear energy infrastructure built in Canada has not exactly been our forte of late.

We are not naive to the significant challenges in such an approach, but it's not often that we see such a clear narrative for beneficial climate action that, when considered at the provincial level, is likely to be thwarted, but when considered more broadly can produce a big win.

It's the clearest example yet of a role for the federal government to bridge the gap, to facilitate the needed regulatory conversations, and, let's be frank, to bring money to the table to make the line happen. Neither provincial side is likely to do it on their own, nor, as history has shown, are they likely to do it together. 

For a government committed to reducing emissions, and with a justified emphasis on the electricity sector, the opportunity to expand the Alberta-B.C. transmission intertie, leveraging the flexibility of B.C.'s hydro with the abundance of wind and solar potential on the Prairies, offers a potential massive decarbonization win for Western Canada that is too good to ignore.

Mark Jaccard, a professor at Simon Fraser University, and Blake Shaffer, a professor at the University of Calgary

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COVID-19 Impact on US Renewable Energy disrupts solar and wind projects, dries up tax equity financing, strains supply chains, delays construction, and slows jobs growth amid limited federal stimulus and uncertain investor appetite.

Key Points

COVID-19 has slowed US clean energy growth by curbing tax equity, disrupting supply chains, and delaying projects.

✅ Tax equity dries up as investor profits fall

✅ Supply chain and construction face pandemic delays

✅ Policy aid and credit extensions sought by industry

Swinerton Renewable Energy had everything it needed to build a promising new solar farm in Texas. It lined up more than 2,000 acres for the $109 million project estimated to generate 400 jobs while under construction. By its completion date, the solar farm was expected to produce 200 megawatts of energy — enough to power about 25,000 homes — and generate big tax breaks for its investors as part of a government program to incentivize clean energy.

But the coronavirus pandemic put everything on hold. The solar farm’s backers aren’t sure they will make enough money from other investments during the pandemic-fueled downturn for those tax breaks to be worth it. So the project has been delayed at least six months.

“This is not a shortage of materials. It is not a pricing issue,” said George Hershman, president of Swinerton Renewable Energy. “Everything was pointing to successful projects.”

The coronavirus crisis is not only battering the oil and gas industry. It’s drying up capital and disrupting supply chains for businesses trying to move the country toward cleaner sources of energy.

While President Trump has promised lifelines for airlines and oil companies struggling with a drastic decrease in demand as Americans remain under stay-at-home orders, there is little focus in Washington on economic relief for this sector, despite a power coalition's call for action to address the pandemic — unlike during the Great Recession a decade ago, when Congress and the Obama administration earmarked an unprecedented sum for renewable energy and more efficient automobiles in a stimulus bill.

“We don’t want to lose our great oil companies,” Trump said during an April 1 news briefing. He so far has not made a similar promise to help wind and solar firms, and none of the four economic rescue and stimulus packages that Congress has passed to respond to the coronavirus crisis set aside any money for renewable energy specifically.

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The impact of the crisis is already clear: About 106,000 clean-energy workers have already filed for unemployment in March alone, according to an analysis of Bureau of Labor Statistics data by Environmental Entrepreneurs, an advocacy group.

The layoffs are a blow to a sector that has prided itself on official projections that solar installers and wind turbine technicians would be the two fastest growing occupations over the next decade.

The job losses include not just wind and solar construction workers, but also those assembling electric cars and installing energy-efficient appliances, lighting, heating and air conditioning.

“These aren’t left-wing coastal hippies,” said Bob Keefe, executive director of Environmental Entrepreneurs. “These are construction workers who get up every day and lace up their boots and pull on their gloves and go to work putting insulation in our attics.”

Despite the economic turmoil, climate experts say the coronavirus pandemic could be an opportunity to make drastic shifts in the energy landscape, with green investments potentially driving a robust recovery. They say governments around the world should help fund renewable energy and use the turmoil in energy markets to remake the industry and slash carbon dioxide emissions, which will tumble 8 percent this year, according to the International Energy Agency.

The agency said that while global energy demand fell 3.8 percent in the first quarter, renewables were the only source to post an increase in demand, rising 1.5 percent thanks to new renewable power plants, low operating costs and priority on some electricity grids.

But many investors, who rely on a broad mix of investments, are spooked. “Everything is quiet because people want to see where we land with the current crisis, and people are holding on to cash,” said Daniel Klier, the global head of sustainable finance at HSBC bank. “As soon as people have a bit of confidence that the market is recovering, they can get projects going.”

Social distancing and the country’s stay-at-home orders are also having a deep effect on daily operations. The areas hardest hit are installing solar panels on rooftops and adding energy-efficiency measures inside homes — work that often requires face-to-face interactions. Sungevity, once one of the nation’s leading solar-installation companies, laid off 377 workers, most of its workforce, in late March, according to filings with California’s Employment Development Department. The company, which had emerged from a 2017 bankruptcy, cited economic conditions.

The push to promote a more fuel-efficient automobile fleet has also veered off track. The electric car maker Tesla was forced to shut down its factory in Fremont, Calif., just as it was turning up production on its new crossover vehicle, the Model Y.

Lockdown orders across the country led Tesla’s outspoken chief executive, Elon Musk, to launch into an expletive-laden rant during an earnings call last week in which Tesla posted a lukewarm profit of $16 million.

“To say that they cannot leave their house and they will be arrested if they do,” Musk said, “this is fascist.”

Sungevity and Tesla represent only a sliver of the economic pain in this sector across the country. The Solar Energy Industries Association had anticipated a growth in solar jobs, from 250,000 to 300,000, over the course of the year, said the group’s president, Abigail Ross Hopper. Now, she said, half the workforce is at risk.

“Shelter in place puts limitations on how people can work,” she said. “Literally, people don’t want other people inside their houses to fix electrical boxes. And there are no door-to-door sales.”

Bigger projects are also grappling with the pandemic economy, though not as severely. Hopper said the industry was geared up to increase the number of new solar farms, in part to take advantage of federal tax credits. “We were on track to do almost 20 gigawatts, which would have been the highest year yet,” Hopper said. That would have been enough to power about 3.7 million homes. Now she expects new projects will come closer to last year’s 13.27 gigawatts’ worth of new construction, after a report on utility-scale solar delays warned of widespread slowdowns, enough to run approximately 2.5 million homes.

Wind energy companies, too, are bracing for lost progress unless the federal government steps in. The American Wind Energy Association said projects that would add 25 gigawatts of wind power to the U.S. grid are at risk of being scaled back or canceled outright over the next two years because of the pandemic. Altogether, that work represents about 35,000 jobs.

“2019 was a good year for the wind industry,” said Tom Kiernan, the association’s chief executive. “We were expecting 2020 to be an even stronger year.”

One project put on the back burner: an enormous 9 gigawatt offshore wind venture led by the New York State Energy Research and Development Authority set to be completed by 2035.

With New York City besieged by coronavirus cases, the authority said it would comply with an executive order from Gov. Andrew M. Cuomo (D), “pausing” all on-site work on clean-energy projects until at least May 15. Michigan, New Jersey and Pennsylvania also delayed wind turbine projects by deeming construction on them nonessential.

The Danish offshore wind firm Orsted said that plans for offshore U.S. wind installations would move “at a slower pace than originally expected due to a combination of the Bureau of Ocean Energy Management’s prolonged analysis of the cumulative impacts from the build-out of US offshore wind projects, and now also COVID-19 effects.” The company told investors it expects delays on projects off the coasts of New York, New Jersey and Rhode Island totaling almost 3 gigawatts.

The supply chains have also taken a hit during the pandemic: Even if contractors can get the money to erect wind turbines or lay solar arrays, that doesn’t mean they will have the parts. At least two factories that make wind turbine parts — one in North Dakota and another in Iowa — were forced to pause production because of coronavirus outbreaks. Factory shutdowns in China have constrained solar supplies, too.

The key reason for delaying most big solar and wind projects is the use of tax credits known as “tax equity.” These allow investors, such as banks, to use the credits to directly offset their overall tax burdens. But if an investor doesn’t have enough profit to offset the credits, the tax equity could become worthless.

“If your profitability is going down, you don’t have the same appetite,” Hopper said.

Solar and wind industry leaders are pressing Congress and the Trump administration to extend the eligibility period for tax credits that are due to expire, with senators urging support for clean energy in relief packages, and to make the tax credits refundable, meaning the government would issue a check to investors who do not have enough profit to justify their investments.

Currently, big wind turbines get a 1.5 cents per kilowatt hour tax credit if construction begins before the end of this year. Tax credits for residential renewable energy — solar panels and small wind — phase out by the end of 2021, and debate over a potential solar ITC extension continues to shape expectations in the wind market.

The lack of attention to renewables in Congress’s relief efforts so far is in stark contrast to 2009, when the United States spent $112 billion to boost “green” energy, according to the World Resources Institute. The government’s package then provided a mixture of grants and loans for a variety of renewable energy ventures — including a $465 million loan Tesla used to get its Fremont factory off the ground.

This year, a handful of clean-energy firms, including a Connecticut-based manufacturer of fuel cells and an Ohio-based maker of energy-efficient lighting systems, took money from a federal small-business lending program, before funds ran dry in the middle of last month. Broadwind Energy, a maker of steel wind energy towers based outside Chicago, received $9.5 million in small-business loans, one of the biggest totals in the program.

So far, the Trump administration has shown far more eagerness to help American petroleum producers that the president said were “ravaged” by a sharp drop in energy demand. Last month, Trump met with oil executives at the White House, and Energy Secretary Dan Brouillette has floated the idea of bridge loans for struggling oil firms.

During negotiations for the last relief package, congressional Democrats tried to strike a deal to refill the nation’s Strategic Petroleum Reserve in exchange for extending the clean-energy incentives, but Senate Majority Leader Mitch McConnell (R-Ky.) rebuffed those calls.

“Democrats won’t let us fund hospitals or save small businesses unless they get to dust off the Green New Deal,” McConnell said in March.

Already, Democrats are signaling they will make a push again in the next round of stimulus spending.

“Relief and recovery legislation will shape our society for years to come,” said Rep. A. Donald McEachin (D-Va.), vice chair of the House Sustainable Energy and Environment Coalition, a caucus that supports renewable energy resources. “We must use these bills to build in a climate-smart way.”

But it remains unclear how much appetite the GOP will have for a deal. “I just don’t know how to handicap that at this point,” said Grant Carlisle, an analyst at the Natural Resources Defense Council, a major environmental group.

Kiernan, the head of the American Wind Energy Association, said his group has “gotten a very good reception with the administration and with the Hill” when it comes to coronavirus relief, but he declined to go into specifics.

In other parts of the world, governments have been providing support for renewables. The European Union has its own Green New Deal, and China is expected to support wind and solar to get the economy moving more quickly.

Some energy analysts note that big oil companies don’t have to wait for government stimulus. The price of oil is so low that they would be better off investing in wind and solar, they say.

“For all these oil companies, the returns on these renewable projects are better than what they can do in the oil and gas industry,” said Sarah Ladislaw, director of the energy program at the Center for Strategic and International Studies. “Now is a good time to do that and tell their investors.”

This fits in with their broader goals, analysts contend. After all, Royal Dutch Shell recently matched BP’s earlier promise to aim to be net-zero for carbon emissions by 2050.

Shell’s chief executive Ben van Beurden has said the company would try to protect its low-carbon Integrated Gas and New Energies division from the largest spending cuts as it sought to weather the pandemic. “We must maintain focus on the long term,” he said in a video message. “Society expects nothing less.”

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Hybrid renewable energy projects integrate wind, solar, and battery storage to enhance grid reliability, reduce curtailment, and provide dispatchable power in markets like Alberta, leveraging photovoltaic tracking, overbuilt transformers, and improved storage economics.

Key Points

Hybrid renewable energy projects combine wind, solar, and storage to deliver reliable, dispatchable clean power.

✅ Combine wind, solar, and batteries for steady, dispatchable output

✅ Lower curtailment by using shared transformers and smart inverters

✅ Boost farm income via leases; diversify risk from oil and gas

Third-generation farmer James Praskach has been burned by the oil and gas sector and watched wicked weather pound his crops flat, but he is hoping a new kind of energy -- the renewable kind -- will pay dividends.

The 39-year-old is part of a landowner consortium that is hosting the sprawling 300-megawatt Blackspring Ridge wind power project in southeastern Alberta.

He receives regular lease payments from the $600-million project that came online in 2014, even though none of the 166 towering wind turbines that surround his land are actually on it.

His lease payments stand to rise, however, when and if the proposed 77-MW Vulcan Solar project, which won regulatory approval in 2016, is green-lighted by developer EDF Renewables Inc.

The panels would cover about 400 hectares of his family's land with nearly 300,000 photovoltaic solar panels in Alberta, installed on racks designed to follow the sun. It would stand in the way of traditional grain farming of the land, but that wouldn't have been a problem this year, Praskach says.

"This year we actually had a massive storm roll through. And we had 100 per cent hail damage on all of (the Vulcan Solar lands). We had canola, peas and barley on it this year," he said, adding the crop was covered by insurance.

Meanwhile, poor natural gas prices and a series of oilpatch financial failures mean rents aren't being paid for about half of the handful of gas wells on his land, showing how a province that is a powerhouse for both fossil and green energy can face volatility -- he's appealed to the Alberta surface Rights Board for compensation.

"(Solar power) would definitely add a level of security for our farming operations," said Praskach.

Hybrid power projects that combine energy sources are a growing trend as selling renewable energy gains traction across markets. Solar only works during the day and wind only when it is windy so combining the two -- potentially with battery storage or natural gas or biomass generation -- makes the power profile more reliable and predictable.

Globally, an oft-cited example is on El Hierro, the smallest of the Canary Islands, where wind power is used to pump water uphill to a reservoir in a volcanic crater so that it can be released to provide hydroelectric power when needed. At times, the project has provided 100 per cent of the tiny island's energy needs.

Improvements in technology such as improving solar and wind power and lower costs for storage mean it is being considered as a hybrid add-on for nearly all of its renewable power projects, said Dan Cunningham, manager of business development at Greengate Power Corp. of Calgary.

Grant Arnold, CEO of developer BluEarth Renewables, agreed.

"The barrier to date, I would say, has been cost of storage but that is changing rapidly," he said. "We feel that wind and storage or solar and storage will be a fundamental way we do business within five years. It's changing very, very rapidly and it's the product everybody wants."

Vulcan Solar was proposed after Blackspring Ridge came online, said David Warner, associate director of business development for EDF Renewables, which now co-owns the wind farm with Enbridge Inc.

"Blackspring actually had incremental capacity in the main power transformers," he said. "Essentially, it was capable of delivering more energy than Blackspring was producing. It was overbuilt."

Vulcan Solar has been sized to utilize the shortfall without producing so much energy that either will ever have to be constrained, he said. Much of the required environmental work has already been done for the wind farm.

Storage is being examined as a potential addition to the project but implementing it depends on the regulatory system. At present, Alberta's regulators are still working on how to permit and control what they call "dispatchable renewables and storage" systems.

EDF announced last spring it would proceed with the Arrow Canyon Solar Project in Nevada which is to combine 200 MW of solar with 75 MW of battery storage by 2022 -- the batteries are to soak up the sun's power in the morning and dispatch the electricity in the afternoon when Las Vegas casinos' air conditioning is most needed.

What is clear is that renewable energy will continue to grow, with Alberta renewable jobs expected to follow -- in a recent report, the International Energy Agency said global electricity capacity from renewables is set to rise by 50 per cent over the next five years, an increase equivalent to adding the current total power capacity of the United States.

The share of renewables is expected to rise from 26 per cent now to 30 per cent in 2024 but will remain well short of what is needed to meet long-term climate, air quality and energy access goals, it added.

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EU Electricity Price Limits are proposed by the European Commission to curb contagion from gas prices, bolster energy security, stabilize the power market, and manage inflation via LNG imports, gas storage, and reduced demand.

Key Points

Temporary power-price caps to curb gas contagion, shield consumers, and bolster EU energy security.

✅ Limits decouple electricity from volatile gas benchmarks

✅ Short-term LNG imports and storage to enhance supply security

✅ Market design reforms and demand reduction to tame prices

The European Union should consider emergency measures in the coming weeks that could include price cap strategies on electricity prices, European Commission President Ursula von der Leyen told leaders at an EU summit in Versailles.

The reference to the possible measures was contained in a slide deck Ms. von der Leyen used to discuss efforts to curb the EU’s reliance on Russian energy imports, which last year accounted for about 40% of its natural-gas consumption. The slides were posted to Ms. von der Leyen’s Twitter account.

Russia’s invasion of Ukraine has highlighted the vulnerability of Europe’s energy supplies to severe supply disruptions and raised fears that imports could be cut off by Moscow or because of damage to pipelines that run across Ukraine. It has also driven energy prices up sharply, contributing to worries about inflation and economic growth.

Earlier this week, the European Commission, the EU’s executive arm, published the outline of a plan that it said could cut imports of Russian natural gas by two-thirds this year and end the need for those imports entirely before 2030, aligning with calls to ditch fossil fuels in Europe. In the short-term, the plan relies largely on storing natural gas ahead of next winter’s heating season, reducing consumption and boosting imports of liquefied natural gas from other producers.

The Commission acknowledged in its report that high energy prices are rippling through the economy, even as European gas prices have fallen back toward pre-war levels, raising manufacturing costs for energy-intensive businesses and putting pressure on low-income households. It said it would consult “as a matter of urgency” and propose options for dealing with high prices.

The slide deck used by Ms. von der Leyen on Thursday said the Commission plans by the end of March to present emergency options “to limit the contagion effect of gas prices in electricity prices, including temporary price limits, even though rolling back electricity prices can be complex under current market rules.” It also intends this month to set up a task force to prepare for next winter and a proposal for a gas storage policy.

By mid-May, the Commission will set out options to revamp the electricity market and issue a proposal for phasing out EU dependency on Russian fossil fuels by 2027, according to the slides.

French President Emmanuel Macron said Thursday that Europe needs to protect its citizens and companies from the increase in energy prices, adding that some countries, including France, have already taken some national measures.

“If this lasts, we will need to have a more long-lasting European mechanism,” he said. “We will give a mandate to the Commission so that by the end of the month we can get all the necessary legislation ready.”

The problem with price limits is that they reduce the incentive for people and businesses to consume less, said Daniel Gros, distinguished fellow at the Centre for European Policy Studies, a Brussels think tank. He said low-income families and perhaps some businesses will need help dealing with high prices, but that should come as a lump-sum payment that isn’t tied to how much energy they are consuming.

“The key will be to let the price signal work,” Mr. Gros said in a paper published this week, which argued that high energy prices could result in lower demand in Europe and Asia, reducing the need for Russian natural gas. “Energy must be expensive so that people save energy,” he said.

Ms. von der Leyen’s slides suggest the EU hopes to replace 60 billion cubic meters of Russian gas with alternative suppliers, including suppliers of liquefied natural gas, by the end of this year. Another 27 billion cubic meters could be replaced through a combination of hydrogen and EU production of biomethane, according to the slide deck.

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Germany Solar Cap Removal would accelerate photovoltaics, storage, and renewables, replacing coal and nuclear during phaseout with 10GW per year toward 162GW by 2030, boosting grid resilience, O&M jobs, and domestic clean energy growth.

Key Points

A policy change to scrap the 52GW limit, enabling 10GW/year PV and storage to replace coal and nuclear capacity.

✅ Scrap 52GW cap to prevent post-2020 market slump

✅ Add 10GW PV annually; scale residential, commercial, grid storage

✅ Create jobs in planning, installation, and O&M through 2030

The German Solar Association (BSW) has called on the government to remove barriers to the development of new solar power capacity in Germany and storage capacity needed to replace coal and nuclear generation that is being phased out.

A 52GW cap should be scrapped, otherwise there is a risk that a market slump will occur in the solar industry after 2020, BSW said, especially as U.S. solar expansion plans signal accelerating global demand.

BSW managing director Carsten Körnig said: “Time is running out, and further delays are irresponsible. The 52GW mark will already be reached within a few months.”
A new report from BSW, in cooperation with Bonn-based marketing and social research company EuPD Research and The smarter E Europe initiative, said 10GW a year is needed as well as an increase in battery storage capacity.

This would lead to cumulative photovoltaic capacity of 162GW and 15GW residential, commercial and grid storage systems by 2030, in line with global renewable records being set, leading to new job opportunities.

The number of jobs in the domestic photovoltaic and storage industries could increase to 78,000 by the end of the next decade from today’s level of 26,400, aligning with forecasts of wind and solar reaching 50% by mid-century, said 'The Energy Transition in the Context of the Nuclear and Coal Phaseout – Perspectives in the Electricity Market to 2040' study.

Job growth would take place for the most part in the fields of planning, installation and operations and maintenance of PV systems, as solar uptake in Poland increases, the report said.

In maintenance alone, employment would increase from 9,200 to 26,000, with additional opened up by tapping into the market potential of medium- to long-term storage systems, alongside changing electricity prices in Northern Europe that favor flexibility, it said.

The report added that industry revenue could grow from €5bn to €12.5bn in the coming decade.

The report was supported by BayWa Re E3/DC, Fronius, Goldbeck Solar, IBC Solar, Panasonic, Sharp, Siemens, Sonnen, Suntech, Tesvolt and Varta.

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