Biomass assistance program announced

Mexico Energy Reform Defeat underscores opposition unity as CFE-first rules, state regulators, and lithium nationalization falter amid USMCA concerns, investment risks, and clean energy transition impacts in Congress over power generation policy.

Key Points

The failed push to expand CFE control, flagged for USMCA risks, higher costs, regulator shifts, and slower clean energy transition.

✅ Bill to mandate 54% CFE generation and priority dispatch failed.

✅ Opposition cited USMCA breaches, higher prices, slower clean energy.

✅ Lithium nationalization to return via separate legislation.

Mexican President Andres Manuel Lopez Obrador's plan to increase state control of power generation was defeated in parliament on Sunday, as opposition parties united in the face of a bill they said would hurt investment and breach international obligations, concerns mirrored by rulings such as the Florida court on electricity monopolies that scrutinize market concentration.

His National Regeneration Movement (MORENA) and its allies fell nearly 60 votes short of the two-thirds majority needed in the 500-seat lower house of Congress, mustering just 275 votes after a raucous session that lasted more than 12 hours.

Seeking to roll back previous constitutional reforms that liberalized the electricity market, Lopez Obrador's proposed changes would have done away with a requirement that state-owned Comision Federal de Electricidad (CFE) sell the cheapest electricity first, a move reminiscent of debates when energy groups warned on pricing changes under federal proposals, allowing it to sell its own electricity ahead of other power companies.

Under the bill, the CFE would also have been set to generate a minimum of 54% of the country's total electricity, and energy regulation would have been shifted from independent bodies to state regulators, paralleling concerns raised when a Calgary retailer opposed a market overhaul over regulatory impacts.

The contentious proposals faced much criticism from business groups and the United States, Mexico's top trade partner as well as other allies who argued it would violate the regional trade deal, the United States-Mexico-Canada Agreement (USMCA), even as the USA looks to Canada for green power to deepen cross-border energy ties.

Lopez Obrador had argued the bill would have protected consumers and made the country more energy independent, echoing how Texas weighs market reforms to avoid blackouts to bolster reliability, saying the legislation was vital to his plans to "transform" Mexico.

Although the odds were against his party, he came into the vote seeking to leverage his victory in last weekend's referendum on his leadership.

Speaking ahead of the vote, Jorge Alvarez Maynez, a lawmaker from the opposition Citizens' Movement party, said the proposals, if enacted, would damage Mexico, pointing to experiences like the Texas electricity market bailout after a severe winter storm as cautionary examples.

"There isn't a specialist, academic, environmentalist or activist with a smidgen of doubt - this bill would increase electricity prices, slow the transition to (clean) energy in our country and violate international agreements," he added.

Supporters of clean-energy goals noted that subnational shifts, such as the New Mexico 100% clean electricity bill can illustrate alternative pathways to reform.

The bill also contained a provision to nationalize lithium resources.

Lopez Obrador said this week that if the bill was defeated, he would send another bill to Congress on Monday aiming to have at least the lithium portion of the proposed legislation passed.

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Ofgem UK Electricity Interconnectors will channel subsea cables, linking Europe, enabling energy import/export, integrating offshore wind via multiple-purpose interconnectors, boosting grid stability, capacity, and investment under National Grid analysis to 2030 targets.

Key Points

Subsea links between the UK and Europe that trade power, integrate offshore wind, and reinforce grid capacity.

✅ Two new subsea interconnector bids open in 2025

✅ Pilot for multiple-purpose links to offshore wind clusters

✅ National Grid to assess optimal routes, capacity, and locations

Ofgem has opened bids to build two electricity interconnectors between the UK and continental Europe as part of the broader UK grid transformation now underway.

The energy regulator said this would “bring forward billions of pounds of investment” in the subsea cables, such as the Lake Erie Connector, which can import cheaper energy when needed and export surplus power from the UK when it is available.

Developers will be invited to submit bids to build the interconnectors next year. Ofgem will additionally run a pilot scheme for ‘multiple-purpose interconnectors’, which are used to link clusters of offshore wind farms and related innovations like an offshore vessel chargepoint to an interconnector.

This forms part of the UK Government drive to more than double capacity by 2030, and to manage rising electric-vehicle demand, as discussed in EV grid impacts, in support of its target of quadrupling offshore wind capacity by the same date.

Interconnectors provide some 7 per cent of UK electricity demand. The UK so far has seven electricity interconnectors linked to Ireland, France, Belgium, the Netherlands and Norway, while projects like the Ireland-France connection illustrate broader European grid integration.

Balfour Beatty won a £90m contract for onshore civil engineering works on the Viking Link Norway interconnector, which is due to come into operation in 2023, while London Gateway's all-electric berth highlights related port electrification.

It said that interconnector developers have in the past been allowed to propose their preferred design, connection location and sea route to the connecting country. Ofgem has now said it may decide to consider only those projects that meet its requirements based on an analysis of location and capacity needs by National Grid.

Ofgem has not specified that the new interconnectors must link to any specific place or country, but may do so later, as priorities like the Cyprus electricity highway illustrate emerging directions.

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Germany Nuclear Phase-Out reflects a decisive energy policy shift, retiring reactors as firms shun new builds amid high costs, radioactive waste challenges, climate goals, insurance gaps, and debate over small modular reactors and subsidies.

Key Points

Germany's policy to end nuclear plants and block new builds, emphasizing safety, waste, climate goals, and viability.

✅ Driven by safety risks, waste storage limits, and insurance gaps

✅ High capital costs and subsidies make new reactors uneconomic

✅ Political debate persists; SMRs raise cost and proliferation concerns

A year has passed since Germany deactivated its last three nuclear power plants, marking a significant shift in its energy policy.

Nuclear fission once heralded as the future of energy in Germany during the 1960s, was initially embraced with minimal concern for the potential risks of nuclear accidents. As Heinz Smital from Greenpeace recalls, the early optimism was partly driven by national interest in nuclear weapon technology rather than energy companies' initiatives.

Jochen Flasbarth, State Secretary in the Ministry of Development, reflects on that era, noting Germany's strong, almost naive, belief in technology. Germany, particularly the Ruhr region, grappled with smog-filled skies at that time due to heavy industrialization and coal-fired power plants. Nuclear energy presented a "clean" alternative at the time.

This sentiment was also prevalent in East Germany, where the first commercial nuclear power plant came online in 1961. In total, 37 nuclear reactors were activated across Germany, reflecting a widespread confidence in nuclear technology.

However, the 1970s saw a shift in attitudes. Environmental activists protested the construction of new power plants, symbolizing a generational rift. The 1979 Three Mile Island incident in the US, followed by the catastrophic Chornobyl disaster in 1986, further eroded public trust in nuclear energy.

The Chornobyl accident, in particular, significantly dampened Germany's nuclear ambitions, according to Smital. Post-Chernobyl, plans for additional nuclear power plants in Germany, once numbering 60, drastically declined.

The emergence of the Green Party in 1980, rooted in anti-nuclear sentiment, and its subsequent rise to political prominence further influenced Germany's energy policy. The Greens, joining forces with the Social Democrats in 1998, initiated a move away from nuclear energy, facing opposition from the Christian Democrats (CDU) and Christian Social Union (CSU).

However, the Fukushima disaster in 2011 prompted a policy reversal from CDU and CSU under Chancellor Angela Merkel, leading to Germany's eventual nuclear phase-out in March 2023, after briefly extending nuclear power amid the energy crisis.

Recently, the CDU and CSU have revised their stance once more, signaling a potential U-turn on the nuclear phaseout, advocating for new nuclear reactors and the reactivation of the last shut-down plants, citing climate protection and rising fossil fuel costs. CDU leader Friedrich Merz has lamented the shutdown as a "black day for Germany." However, these suggestions have garnered little enthusiasm from German energy companies.

Steffi Lemke, the Federal Environment Minister, isn't surprised by the companies' reluctance, noting their longstanding opposition to nuclear power, which she argues would do little to solve the gas issue in Germany, due to its high-risk nature and the long-term challenge of radioactive waste management.

Globally, 412 reactors are operational across 32 countries, even as Europe is losing nuclear power during an energy crunch, with the total number remaining relatively stable over the years. While countries like China, France, and the UK plan new constructions, there's a growing interest in small, modern reactors, which Smital of Greenpeace views with skepticism, noting their potential military applications.

In Germany, the unresolved issue of nuclear waste storage looms large. With temporary storage facilities near power plants proving inadequate for long-term needs, the search for permanent sites faces resistance from local communities and poses financial and logistical challenges.

Environment Minister Lemke underscores the economic impracticality of nuclear energy in Germany, citing prohibitive costs and the necessity of substantial subsidies and insurance exemptions.

As things stand, the resurgence of nuclear power in Germany appears unlikely, with economic factors playing a decisive role in its future.

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U.S. Solar Generation 2017 surpassed biomass, delivering 77 million MWh versus 64 million MWh, trailing only hydro and wind; driven by PV expansion, capacity additions, and utility-scale and small-scale growth, per EIA.

Key Points

It was the year U.S. solar electricity exceeded biomass, hitting 77 million MWh and trailing only hydro and wind.

✅ Solar: 77 million MWh; Biomass: 64 million MWh (2017, EIA)

✅ PV expansion; late-year capacity additions dampen annual generation

✅ Hydro: 300 and wind: 254 million MWh; solar thermal ~3 million MWh

Electricity generation from solar resources in the United States reached 77 million megawatthours (MWh) in 2017, surpassing for the first time annual generation from biomass resources, which generated 64 million MWh in 2017. Among renewable sources, only hydro and wind generated more electricity in 2017, at 300 million MWh and 254 million MWh, respectively. Biomass generating capacity has remained relatively unchanged in recent years, while solar generating capacity has consistently grown.

Annual growth in solar generation often lags annual capacity additions because generating capacity tends to be added late in the year. For example, in 2016, 29% of total utility-scale solar generating capacity additions occurred in December, leaving few days for an installed project to contribute to total annual generation despite being counted in annual generating capacity additions. In 2017, December solar additions accounted for 21% of the annual total. Overall, solar technologies operate at lower annual capacity factors and experience more seasonal variation than biomass technologies.

Biomass electricity generation comes from multiple fuel sources, such as wood solids (68% of total biomass electricity generation in 2017), landfill gas (17%), municipal solid waste (11%), and other biogenic and nonbiogenic materials (4%).These shares of biomass generation have remained relatively constant in recent years, even as renewables' rise in 2020 across the grid.

Solar can be divided into three types: solar thermal, which converts sunlight to steam to produce power; large-scale solar photovoltaic (PV), which uses PV cells to directly produce electricity from sunlight; and small-scale solar, which are PV installations of 1 megawatt or smaller. Generation from solar thermal sources has remained relatively flat in recent years, at about 3 million MWh, even as renewables surpassed coal in 2022 nationwide. The most recent addition of solar thermal capacity was the Crescent Dunes Solar Energy plant installed in Nevada in 2015, and currently no solar thermal generators are under construction in the United States.

Solar photovoltaic systems, however, have consistently grown in recent years, as indicated by 2022 U.S. solar growth metrics across the sector. In 2014, large-scale solar PV systems generated 15 million MWh, and small-scale PV systems generated 11 million MWh. By 2017, annual electricity from those sources had increased to 50 million MWh and 24 million MWh, respectively, with projections that solar could reach 20% by 2050 in the U.S. mix. By the end of 2018, EIA expects an additional 5,067 MW of large-scale PV to come online, according to EIA’s Preliminary Monthly Electric Generator Inventory, with solar and storage momentum expected to accelerate. Information about planned small-scale PV systems (one megawatt and below) is not collected in that survey.

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BC Hydro Rate Increase proposes a 2.3% hike from April, with BCUC review, aligning below inflation and funding clean energy, electrification, and grid upgrades across British Columbia while keeping electricity prices among North America's lowest.

Key Points

A proposed 2.3% BC Hydro hike from April, under BCUC review, funds clean energy and keeps average bills below inflation.

✅ Adds about $2 per month to average residential bill

✅ Sixth straight increase below inflation since 2018

✅ Supports renewable projects and grid modernization

The British Columbia government says the province’s Crown power utility is applying for a 2.3-per-cent rate increase starting in April, with higher BC Hydro rates previously outlined, adding about $2 a month to the average residential bill.

A statement from the Energy Ministry says it’s the sixth year in a row that BC Hydro has applied for an increase below the rate of inflation, similar to a 3 per cent rise noted in a separate approval, which still trailed inflation.

It says rates are currently 15.6 per cent lower than the cumulative rate of inflation over the last seven years, starting in 2017-2018, with a provincial rate freeze among past measures, and 12.4 per cent lower than the 10-year rates plan established by the previous government in 2013.

The ministry says the “modest” rate increase application comes after consideration of a variety of options and their long-term impacts, including scenarios like a 3.75% two-year path evaluated alongside others, and the B.C. Utilities Commission is expected to decide on the plan by the end of February.

Chris O’Riley, president of BC Hydro, says the rates application would keep electricity costs in the province among the lowest in North America, even as a BC Hydro fund surplus prompted calls for changes, while supporting investments in clean energy to power vehicles, homes and businesses.

Energy Minister Josie Osborne says it’s more important than ever to keep electricity bills down, especially as Ontario hydro rates increase in a separate jurisdiction, as the cost of living rises at rates that are unsustainable for many.

“Affordable, stable BC Hydro rates are good for people, businesses and climate as we work together to power our growing economy with renewable energy instead of fossil fuels,” Osborne says in a statement issued Monday.

Earlier this year, the ministry said BC Hydro provided $315 million in cost-of-living bill credits, while in another province Manitoba Hydro scaled back an increase to ease pressure, to families and small businesses in the province, including those who receive their electricity service from FortisBC or a municipal utility.

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Alberta Utility Rate Rider will add a modest fee to electricity bills and natural gas charges as the AUC recovers outstanding debt from the COVID-19 deferral program via AESO and the Balancing Pool.

Key Points

A temporary surcharge on Alberta power and gas bills to recover unpaid COVID-19 deferral debt, administered by the AUC.

✅ Applies per kWh and per GJ based on consumption

✅ Recovers unpaid balances from 2020-21 bill deferrals

✅ Collected via AESO and the Balancing Pool under AUC oversight

The province says Alberta ratepayers should expect to see an extra fee on their utility bills in the coming months.

That fee is meant to recover the outstanding debt owed to gas and electricity providers resulting from last year's three-month utility deferral program offered to struggling Albertans during the pandemic.

The provincial government announced the utility deferral program in March 2020 then formalized it with legislation, alongside a consumer price cap on power bills that shaped later policy decisions.

The program allowed residential, farm and small commercial customers who used less than 250,000 kilowatt hours of electricity per year — or consumed less than 2,500 gigajoules per year — to postpone their bills amid the COVID-19 pandemic.

According to the province, 350,000 customers, or approximately 13 per cent of the natural gas and electricity consumer base, took advantage of the program.

Customers had a year to repay providers what they owed. That deadline ended June 18, 2021.

The Alberta Utilities Commission (AUC), which regulates the utilities sector and natural gas and electricity markets and oversees a rate of last resort framework, said the vast majority of consumers have squared up.

But for those who didn't, provincial legislation dictates that Alberta ratepayers must cover any unpaid debt. The legislation exempts Medicine Hat utility customers for electricity and gas co-operative customers for gas.

"When the program was announced, it was very clear that it was a deferral program and that the monies would need to be paid back," said Geoff Scotton, a spokesperson with the Alberta Utilities Commission.

"Now we're in the situation where the providers, in good faith, who enabled those payment deferrals, need to be made whole. That's really the goal here."

Amount to be determined
Margeaux Maron, a spokesperson for Associate Minister of Natural Gas and Electricity Dale Nally, said based on early estimates, $13 to $16 million of $92 million in deferred payments remain outstanding.

As a result, the province expects the average Albertan will end up paying, unlike jurisdictions offering a lump-sum credit, a fraction of a dollar extra per monthly gas and electricity bill over a handful of months.

Scotton said at this point, there are too many unknown factors to know the exact size of the rate rider. However, he said he expects it to be modest.

Scotton said affected parties first have until the end of this week to notify the AUC exactly how much they are still owed.

Those parties include the Alberta Electric System Operator and the Balancing Pool, who essentially acted as bankers with respect to the distribution and transmission of the utilities to customers who deferred their payments.

Regulated service providers may also seek reimbursement on administrative and carrying costs, even as issues like a BC Hydro fund surplus spark debate elsewhere.

Then, Scotton said, once the outstanding amounts are known, the AUC will hold a public proceeding, similar to a Nova Scotia rate case, to determine the amount and the duration of the rate rider to be applied to each natural gas and electricity bill.

The amount will be based on consumption: per kilowatt hour for electricity and per gigajoule for natural gas.

That means larger businesses will end up paying more than the average Albertan.

Scotton said the AUC will expedite the hearing process and it expects to have a decision by the end of the summer.

Rate rider a 'surprise'
Joel MacDonald with Energyrates.ca — an organization which compares energy rates across the country — said it's not the amount of the rate rider that bothers him, but the fact that the repayment process wasn't made clear at the onset of the program.

"It came to us as a bit of a surprise," MacDonald said.

He said what was sold as a deferral program seems more like an electricity rebate program, or an "ability to pay" program.

"As opposed to the retailers looking into collection methods, anything that wasn't paid is basically just being forced upon all Alberta consumers," MacDonald said.

The expectation set out in the deferral legislation and regulations state utility providers such as Enmax and Epcor are expected to use reasonable efforts to try to collect the unpaid balances. It must then detail those reasonable efforts to the AUC.

A spokesperson for Enmax said it first works with its customers to find manageable payment arrangements and connects them with support services if they are unable to pay.

Then, if payment can't be arranged, it said it will work with a collection agency, which may even result in disconnection of service.

The spokesperson said only after all efforts have failed would Enmax seek reimbursement through this program.

Use tax revenues?
MacDonald also questioned why a government program isn't being paid for through general tax revenues.

He compared the utility deferral program to a mortgage subsidy program.

"Imagine that [Canada Mortgage And Housing Corporation] said, 'Hey, we had to give mortgage deferrals and some of these people never paid back their deferrals, so we're going to add an extra $300 to everyone's mortgage,'" he said.

"You'd expect that to come off of some sort of general taxation — not being assigned to other people's mortgages, right?"

In response, Maron said due to the current fiscal challenges facing the government — and the expected minimal costs to consumers, and even as a consumer price cap on electricity remains in place — it was determined that a rate rider would be an appropriate mechanism to repay bad debt associated with the program.

Scotton said rate riders aren't unusual — they're used to fine-tune rates for a set period of time.

He said under normal circumstances, regulated service providers can apply to the AUC to impose a rate rider to recover unexpected costs. And in some instances, they can provide a credit.

But in this situation, he said the debt is aggregated and, in turn, being collected more broadly.

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