Renewable power industry says U.S. moving too slowly

Global Coal Power Decline 2019 signals a record fall in coal-fired electricity as China plateaus, India dips, and the EU and US accelerate renewables, curbing carbon emissions and advancing the global energy transition.

Key Points

A record 2019 drop in global coal power as renewables rise and demand slows across China, India, the EU, and the US.

✅ 3% global fall in coal-fired electricity in 2019.

✅ China plateaus; India declines for first time in decades.

✅ EU and US shift to renewables and gas, cutting emissions.

The world’s use of coal-fired electricity is on track for its biggest annual fall on record this year after more than four decades of near-uninterrupted growth that has stoked the global climate crisis.

Data shows that coal-fired electricity is expected to fall by 3% in 2019, or more than the combined coal generation in Germany, Spain and the UK last year and could help stall the world’s rising carbon emissions this year.

The steepest global slump on record is likely to emerge in 2019 as India’s reliance on coal power falls for the first time in at least three decades this year, and China’s coal power demand plateaus, reflecting the broader global energy transition underway.

Both developing nations are using less coal-fired electricity due to slowing economic growth in Asia as well as the rise of cleaner energy alternatives. There is also expected to be unprecedented coal declines across the EU and the US as developed economies turn to clean forms of energy such as low-cost solar power to replace ageing coal plants.

In almost 40 years the world’s annual coal generation has fallen only twice before: in 2009, in the wake of the global financial crisis, and in 2015, following a slowdown in China’s coal plants amid rising levels of deadly air pollution.

The research was undertaken by the Centre for Research on Energy and Clean Air , the Institute for Energy Economics and Financial Analysis and the UK climate thinktank Sandbag.

The researchers found that China’s coal-fired power generation was flatlining, despite an increase in the number of coal plants being built, because they were running at record low rates. China builds the equivalent of one large new coal plant every two weeks, according to the report, but its coal plants run for only 48.6% of the time, compared with a global utilisation rate of 54% on average.

The findings come after a report from Global Energy Monitor found that the number of coal-fired power plants in the world is growing, because China is building new coal plants five times faster than the rest of the world is reducing their coal-fired power capacity.

The report found that in other countries coal-fired power capacity fell by 8GW in the 18 months to June but over the same period China increased its capacity by 42.9GW.

In a paper for the industry journal Carbon Brief, the researchers said: “A 3% reduction in power sector coal use could imply zero growth in global CO2 emissions, if emissions changes in other sectors mirror those during 2018.”

However, the authors of the report have warned that despite the record coal power slump the world’s use of coal remained far too high to meet the climate goals of the Paris agreement, and some countries are still seeing increases, such as Australia’s emissions rise amid increased pollution from electricity and transport.

The US – which is backing out of the Paris agreement – has made the deepest cuts to coal power of any developed country this year by shutting coal plants down in favour of gas power and renewable energy, with utilities such as Duke Energy facing investor pressure to disclose climate plans. By the end of August the US had reduced coal by almost 14% over the year compared with the same months in 2018.

The EU reported a record slump in coal-fired electricity use in the first half of the year of almost a fifth compared with the same months last year. This trend is expected to accelerate over the second half of the year to average a 23% fall over 2019 as a whole. The EU is using less coal power in favour of gas-fired electricity – which can have roughly half the carbon footprint of coal – and renewable energy, helped by policies such as the UK carbon tax that have slashed coal-fired generation.

We will not stay quiet on the escalating climate crisis and we recognise it as the defining issue of our lifetimes. The Guardian will give global heating, wildlife extinction and pollution the urgent attention they demand. Our independence means we can interrogate inaction by those in power. It means Guardian reporting will always be driven by scientific facts, never by commercial or political interests.

We believe that the problems we face on the climate crisis are systemic and that fundamental societal change is needed. We will keep reporting on the efforts of individuals and communities around the world who are fearlessly taking a stand for future generations and the preservation of human life on earth. We want their stories to inspire hope. We will also report back on our own progress as an organisation, as we take important steps to address our impact on the environment.

Related News

• Electricity Forum News

• Climate Change News

PG&E Wildfire Blackouts highlight California power shutoffs as high winds and suspected transmission line faults trigger evacuations, CPUC investigations, and grid safety reviews, with utilities weighing risk, compliance, and resilience during Santa Ana conditions.

Key Points

PG&E Wildfire Blackouts are outages during wind-driven fire threats linked to power lines, spurring CPUC investigations.

✅ Wind and line faults suspected amid Lafayette evacuations

✅ CPUC to probe shutoffs, notifications, and compliance

✅ Utilities plan more outages as Santa Ana winds return

Pacific Gas & Electric Co. power lines may have started two wildfires over the weekend in the San Francisco Bay Area, the utility said Monday, even though widespread blackouts were in place to prevent downed lines from starting fires during dangerously windy weather.

The fires described in PG&E reports to state regulators match blazes that destroyed a tennis club and forced evacuations in Lafayette, about 20 miles (32 kilometres) east of San Francisco.

The fires began in a section of town where PG&E had opted to keep the lights on. The sites were not designated as a high fire risk, the company said.

Powerful winds were driving multiple fires across California and forcing power shut-offs intended to prevent blazes, even as electricity prices are soaring across the state as well.

More than 900,000 power customers -- an estimated 2.5 million people -- were in the dark at the height of the latest planned blackout, nearly all of them in PG&E's territory in Northern and central California. By Monday evening a little less than half of those had their service back. But some 1.5 million people in 29 counties will be hit with more shut-offs starting Tuesday because another round of strong winds is expected, a reminder of grid stress during heat waves that test capacity, the utility said.

Southern California Edison had cut off power to 25,000 customers and warned that it was considering disconnecting about 350,000 more as power supply lapses and Santa Ana winds return midweek.

PG&E is under severe financial pressure after its equipment was blamed for a series of destructive wildfires and its 2018 Camp Fire guilty plea compounded liabilities during the past three years. Its stock dropped 24% Monday to close at $3.80 and was down more than 50% since Thursday.

The company reported last week that a transmission tower may have caused a Sonoma County fire that has forced 156,000 people to evacuate.

PG&E told the California Public Utilities Commission that a worker responded to a fire in Lafayette late Sunday afternoon and was told firefighters believed contact between a power line and a communication line may have caused it.

A worker went to another fire about an hour later and saw a fallen pole and transformer. Contra Costa Fire Department personnel on site told the worker they were looking at the transformer as a potential ignition source, a company official wrote.

Separately, the company told regulators that it had failed to notify 23,000 customers, including 500 with medical conditions, before shutting off their power earlier this month during windy weather.

Before a planned blackout, power companies are required to notify customers and take extra care to get in touch with those with medical problems who may not be able to handle extended periods without air conditioning or may need power to run medical devices.

PG&E said some customers had no contact information on file. Others were incorrectly thought to be getting electricity.

After that outage, workers discovered 43 cases of wind-related damage to power lines, transformers and other equipment.

Jennifer Robison, a PG&E spokeswoman, said the company is working with independent living centres to determine how best to serve people with disabilities.

The company faced a growing backlash from regulators and lawmakers, and a judge's order on wildfire risk spending added pressure as well.

U.S. Rep. Josh Harder, a Democrat from Modesto, said he plans to introduce legislation that would raise PG&E's taxes if it pays bonuses to executives while engaging in blackouts.

The Public Utilities Commission plans to open a formal investigation into the blackouts and the broader climate policy debate surrounding reliability within the next month, allowing regulators to gather evidence and question utility officials. If rules are found to be broken, they can impose fines up to $100,000 per violation per day, said Terrie Prosper, a spokeswoman for the commission.

The commission said Monday it also plans to review the rules governing blackouts, will look to prevent utilities from charging customers when the power is off and will convene experts to find grid improvements that might lessen blackouts during next year's fire season, as debates over rate stability in 2025 continue across PG&E's service area.

The state can't continue experiencing such widespread blackouts, "nor should Californians be subject to the poor execution that PG&E in particular has exhibited," Marybel Batjer, president of the California Public Utilities Commission, said in a statement.

Related News

• Electricity Forum News

• Energy Policy News

Indonesia Coal Production Cuts reflect weaker China demand, COVID-19 impacts, falling HBA reference prices, and DMO sales to PLN, pressuring thermal coal output, miner budgets, and investment plans under the 2020 RKAB.

Key Points

Planned 2020 coal output reductions from China demand slump, lower HBA prices, and DMO constraints impacting miners.

✅ China demand drop reduces exports and thermal coal shipments.

✅ HBA reference price decline pressures margins and cash flow.

✅ DMO sales to PLN limit revenue; investment plans may slow.

The Energy and Mineral Resources (ESDM) Ministry is considering lowering the coal production target this year as demand from China has shown a significant decline, with China power demand drops reported, since the start of the outbreak of the novel coronavirus in the country late last year, a senior ministry official has said.

The ministry’s coal and mineral director general Bambang Gatot Ariyono said in Jakarta on March 12 that the decline in the demand had also caused a sharp drop in coal prices on the world market, and China's plan to reduce coal power has further weighed on sentiment, which could cause the country’s miners to reduce their production.

The 2020 minerals and coal mining program and budget (RKAB) has set a current production goal of 550 million tons of coal, a 10 percent increase from last year’s target. As of March 6, 94.7 million tons of coal had been mined in the country in the year.

“With the existing demand, revision to this year’s production is almost certain,” he said, adding that the drop in demand had also caused a decline in coal prices.

Indonesia’s thermal coal reference price (HBA) fell by 26 percent year-on-year to US$67.08 per metric ton in March, according to a Standards & Poor press release on March 5.  At home, the coal price is also unattractive for local producers. Under the domestic market obligation (DMO) policy, miners are required to sell a quarter of their production to state-owned electricity company PLN at a government-set price, even as imported coal volumes rise in some markets. This year’s coal reference price is $70 per metric ton, far below the internal prices before the coronavirus outbreak hit China.

The ministry’s expert staff member Irwandy Arif said China had reduced its coal demand by 200,000 tons so far, as six of its coal-fired power plants had suspended operation due to the significant drop in electricity demand. Many factories in the country were closed as the government tried to halt the spread of the new coronavirus, which caused the decline in energy demand and created electric power woes for international supply chains.

“At present, all mines in Indonesia are still operating normally, while India is rationing coal supplies amid surging electricity demand. But we have to see what will happen in June,” he said.

The ministry predicted that the low demand would also result in a decline in coal mining investment, as clean energy investment has slipped across many developing nations.

The ministry set a $7.6 billion investment target for the mining sector this year, up from $6.17 billion last year, even as Israel reduces coal use in its power sector, which may influence regional demand. The year’s total investment realization was $192 million as of March 6, or around 2.5 percent of the annual target. 

Related News

• Electricity Forum News

• Power Generation News

Eastern U.S. Heatwave Electricity Demand surges to record peak load, straining the power grid, lifting wholesale prices, and prompting demand response, conservation measures, and load shedding to protect grid reliability during extreme temperatures.

Key Points

It is the record peak load from extreme heat, straining grids, lifting wholesale prices, and prompting demand response.

✅ Peak electricity use stresses regional power grid.

✅ Prices surge; conservation and demand response urged.

✅ Utilities monitor load, avoid outages via load shedding.

As temperatures soar to unprecedented highs across the Eastern United States, a blistering heatwave has triggered record-breaking electricity demand. This article delves into the causes behind the surge in energy consumption, its impact on the power grid, and measures taken to manage the strain during this extraordinary weather event.

Intensifying Heatwave Conditions

The Eastern U.S. is currently experiencing one of its hottest summers on record, with temperatures climbing well above seasonal norms. This prolonged heatwave has prompted millions of residents to rely heavily on air conditioning and cooling systems to escape the sweltering heat, with electricity struggles worsening in several communities, driving up electricity usage to peak levels.

Strain on Power Grid Infrastructure

The surge in electricity demand during the heatwave has placed significant strain on the region's power grid infrastructure, with supply-chain constraints complicating maintenance and equipment availability during peak periods.

Record-breaking Energy Consumption

The combination of high temperatures and increased cooling demands has led to record-breaking energy consumption levels across the Eastern U.S. States like New York, Pennsylvania, and Maryland have reported peak electricity demand exceeding previous summer highs, with blackout risks drawing heightened attention from operators, highlighting the extraordinary nature of this heatwave event.

Impact on Energy Costs and Supply

The spike in electricity demand during the heatwave has also affected energy costs and supply dynamics. Wholesale electricity prices have surged in response to heightened demand, contributing to sky-high energy bills for many households, reflecting the market's response to supply constraints and increased operational costs for power generators and distributors.

Management Strategies and Response

Utility companies and grid operators have implemented various strategies to manage electricity demand and maintain grid reliability during the heatwave. These include voluntary conservation requests, load-shedding measures, and real-time monitoring of grid conditions to prevent power outages while avoiding potential blackouts or disruptions.

Community Outreach and Public Awareness

Amidst the heatwave, community outreach efforts play a crucial role in raising public awareness about energy conservation and safety measures. Residents are encouraged to conserve energy during peak hours, adjust thermostat settings, and utilize energy-efficient appliances to alleviate strain on the power grid and reduce overall energy costs.

Climate Change and Resilience

The intensity and frequency of heatwaves are exacerbated by climate change, underscoring the importance of building resilience in energy infrastructure and adopting sustainable practices. Investing in renewable energy sources, improving energy efficiency and demand response programs that can reduce peak demand, and implementing climate adaptation strategies are essential steps towards mitigating the impacts of extreme weather events like heatwaves.

Looking Ahead

As the Eastern U.S. navigates through this heatwave, stakeholders are focused on implementing lessons learned from California's grid response to enhance preparedness and resilience for future climate-related challenges. Collaborative efforts between government agencies, utility providers, and communities will be crucial in developing comprehensive strategies to manage energy demand, promote sustainability, and safeguard public health and well-being during extreme weather events.

Conclusion

The current heatwave in the Eastern United States has underscored the critical importance of reliable and resilient energy infrastructure in meeting the challenges posed by extreme weather conditions. By prioritizing energy efficiency, adopting sustainable energy practices, and fostering community resilience, stakeholders can work together to mitigate the impacts of heatwaves and ensure a sustainable energy future for generations to come.

Related News

• Electricity Forum News

• Energy Policy News

German Energy Price Brakes harness price signals in a market-based policy, cutting gas consumption, preserving industrial output, and supporting CO2 reduction, showcasing Germany's resilience and adaptation while protecting households and businesses across Europe.

Key Points

Fixed-amount subsidies preserving price signals to curb gas use, shield consumers, and sustain industrial output.

✅ Maintains incentives via market-based price signals

✅ Cuts gas consumption without distorting EU markets

✅ Protects households and industry while curbing CO2

German industry and society are once again proving much more resilient and adaptable than certain people feared. Horror scenarios of a dangerous energy rationing or a massive slump in our economy have often been bandied about. But we are nowhere near that. With a challenging year just behind us, this is good news — not only for Germany, but also for Europe, where France-Germany energy cooperation has strengthened solidarity.

Companies and households reacted swiftly to the sharp increases in energy prices, in line with momentum in the global energy transition seen across markets. They installed more efficient heating or production facilities, switched to alternatives and imported intermediate products. The results are encouraging: German households and businesses have reduced gas consumption significantly, despite recent cold weather. From the start of the war in Ukraine to mid-December industrial gas consumption in Germany was (temperature-adjusted) around 20 per cent lower than the average level for the preceding three years. Even if some firms have cut back production, especially in energy-intensive sectors, industrial output as a whole has only fallen by about 1 per cent since the start of 2022. Added to this, in a survey released by the Ifo institute in November, over a third of German companies saw the potential to reduce gas consumption further without endangering output.

Instead of imposing excessive laws and regulations, we have relied on price signals and the prudence of market participants to create the right incentives and reduce gas consumption, as falling costs like record-low solar power prices continue to reinforce those signals across sectors.

We will follow this approach in coming months, when energy savings will remain important, even as the EU electricity outlook anticipates sharply higher demand by 2050. Our latest relief measures will not distort price signals. To this end, the Bundestag approved gas and electricity price brakes in its final session in 2022. They are designed to function without any intervention in markets or prices. This system will pay out a fixed amount relative to previous years’ consumption and the current difference to a reference price — regardless of current consumption.

Energy price brakes are the main component of Germany’s “protective shield”, which makes up to €200bn available for measures in 2022 to 2024. Seen in relation to the German economy’s size, its past heavy reliance on Russian energy imports and the fact that the measures will expire in 2024, these are balanced and expedient mechanisms. In contrast to instruments used in other countries, our new arrangements will not affect the price formation process driven by supply and demand, or on incentives to save gas. Companies and households will continue to save the full market price when they reduce consumption by a unit of gas or electricity. In this way, the price brakes also avoid the creation of additional demand for gas at the expense of consumers in other European countries, even as Europe’s Big Oil turning electric signals broader structural shifts in energy markets. No one need fear that competition will be distorted or that gas will be bought up. Indeed, a recent IMF working paper on cushioning the impact of high energy prices on households explicitly praises the German energy price brakes.

Current developments confirm the effectiveness of a market-based approach — and show that we should also rely on price signals when it comes to reducing CO₂ emissions, as suggested by IEA CO2 trends in recent years. Last year, households and companies had only a few weeks to adapt, yet we have already seen a strong response. The effect of CO₂ prices can be even stronger, as adaptation is possible over a much longer time and they additionally affect expectations and long-term decisions. Regulatory interventions and subsidy schemes, even if well targeted, cannot compete with market co-ordination and incentives that support individual decision-making and promote innovation.

Europe and Germany can weather this crisis without a collapse in industrial production. We also have an opportunity to deal efficiently with the move to climate neutrality, aligned with Germany’s hydrogen strategy for imported low-carbon fuels. In both cases, we should have confidence in price signals as well as in the power of people and business to innovate and adapt.

Related News

• Electricity Forum News

• Climate Change News

France Electricity Pricing Mechanism aligns with EU rules, leveraging nuclear energy and EDF profits, avoiding Contracts for Difference, redistributing windfalls to industry and households, targeting €70/MWh amid electricity market reform and Brussels oversight.

Key Points

A framework to keep power near €70/MWh by reclaiming EDF windfalls and redistributing them under EU market rules.

✅ Targets average price near €70/MWh from 2026

✅ Skims EDF profits above €78-80 and €110/MWh thresholds

✅ Aligns with EU rules; avoids nuclear CfDs and state aid clashes

France has unveiled a new electricity pricing mechanism, hoping to defuse months of tension over energy subsidies with Brussels and its neighbors.

The strain has included a Franco-German fight over EU electricity reform with Germany accusing France of wanting to subsidize its industry via artificially low energy prices, while Paris maintained it should have the right to make the most of its relatively cheap nuclear energy. That fight has now been settled.

On Tuesday, the French government presented a new mechanism — complex, and still-to-be-detailed — to bring the average price of electricity closer to €70 per megawatt hour (MWh) as of 2026, amid Europe's electricity market revamp efforts.

"The agreement has been defined to comply with European rules and avoid difficulties with the European Commission," said France's Economy and Finance Minister Bruno Le Maire, noting that France had ruled out other "simpler" options that would have caused tension with Brussels.

For example, France has not yet envisaged the use of state-backed investment schemes called Contracts for Difference (CfD), which were the main source of discord in talks with Germany on the electricity market reform and the EU push for more fixed-price contracts in generation. The compromise agreed by EU ministers last month gives the Commission the power to monitor CfDs in the nuclear sector.

"France wanted to limit as much as possible the European Commission's nuisance power," said Phuc-Vinh Nguyen, an energy expert at the Jacques Delors Institute think tank in Paris.

The announcement came weeks after French President Emmanuel Macron promised that France would "take back control" of its electricity prices to allow its industry to make the most of the country's relatively cheap nuclear energy.

Germany, by contrast, has moved to support energy-intensive industries with an industrial electricity subsidy, underscoring the policy divergence.

“The price of electricity has always been a major competitive advantage for the French nation, and it must remain so,” Le Maire said.

Under the new mechanism, part of a broader deal on electricity prices between the state and EDF, the government will seize EDF profits above certain thresholds and redistribute them directly to industry and households to bring prices closer to the desired level. Specifically, the government will redistribute 50 percent of EDF’s additional profits if prices rise above €78-€80 per MWh, and 90 percent of extra profits if prices rise above €110 per MWh.

The move also marks a new step in the government's power grab at EDF, after the company was fully nationalized earlier this year.

For years, France has been discussing an EDF reform with the Commission in order to address concerns by Brussels regarding disguised state aid to the company. In particular, the Commission wanted assurances that any state aid given to nuclear would be kept separate from those parts of the business subject to competition, such as renewable energy development.

An economy ministry official close to Le Maire argued that the new pricing mechanism would settle matters with Brussels on that front. A Commission spokesperson said Brussels was in contact with France on the file, but declined further comment.

The mechanism will replace the existing EU-mandated energy pricing mechanism, dubbed ARENH, which was set to expire at the end of 2025, and which has forced EDF to sell some of its electricity to competitors at a fixed low price since 2010, and comes amid contested electricity market reforms at EU level.

The new system could benefit EDF because it won't be bound to sell energy at a lower price, but instead will be allowed to auction off its energy to competitors. On the other hand, the redistribution system would deprive the company of some profits when electricity prices are higher. No wonder, then, that negotiations between the government and EDF have been "difficult," as Le Maire put it.

Related News

• Electricity Forum News

• Energy Policy News