TVA idles nine coal-fired units

By Knoxville News Sentinel


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TVA plans to idle nine coal-fired electric power generating units at its Shawnee, John Sevier and Widows Creek fossil plants to reduce its use of coal-generated power by 1,000 megawatts over the next five years.

In an online press conference, TVA President and CEO Tom Kilgore said none of the plants will be closed and although idling the units will affect about 200 employees out of 700 at the three plants, the agency plans to reduce those positions through attrition and by finding jobs at other TVA facilities for affected workers.

"We think we have work for those people who want to continue working," Kilgore said. "It may require that they transfer to other locations."

The plan calls for idling two of the four coal-fired units at John Sevier, which is near Rogersville six of eight units at Widows Creek near Stevenson, Ala. and one of the 10 units at Shawnee, which is near Padaucah, Ky.

Two units at Widows Creek will be idled in 2011, with the rest idled by 2015. The units at John Sevier will be idled within four to five years, and the Shawnee unit will be idled and evaluated for possible conversion to biomass fuel.

Kilgore announced TVA's goal of reducing its reliance on coal during the August board meeting, but said TVA wanted to talk to the employees and communities involved before making details public. The goal is part of a strategic vision Kilgore outlined for TVA to increase reliance on energy efficiency as well as nuclear and gas sources of power capacity while decreasing dependence on coal.

By 2010, TVA will have spent about $5.3 billion on emissions controls at its fossil-fuel plants. The units slated for idling are ones that have not been fitted with "scrubbers" for pollution control, Kilgore said. The main reasons for idling the units are:

• They are old — some nearly 60 years — and it would be expensive to fit them with scrubbers.

• Environmental Protection Agency regulations are increasingly complex, further adding to the cost.

• New sources of generation, including nuclear and gas, are coming online.

• Peak demand reduction through energy efficiency.

"We think our energy efficiency programs will reduce peak demand," Kilgore said.

Kilgore said it should be no problem for TVA to use other sources to offset the loss of 1,000 megawatts, which is about 3 percent of TVA's power production capacity. Two gas-fired generation plants at John Sevier and nuclear power units coming online will cover the loss, he said.

In fact, other coal-fired units likely will be idled, Kilgore noted. Out of 59 coal-fired units TVA operates, 42 do not have scrubbing equipment. The agency will need to look at each one and decide what to do, he said.

"We will continue to evaluate all of our unscrubbed units as we go forward and make decisions on those, whether to equip them with scrubbers or to idle them," Kilgore said.

Depending on how successfully TVA can switch to other power sources, it will move away from using coal and the idled units will be retired, Kilgore said.

"We think that by wading into this instead of diving off a high-diving board, that is the way to do this," he said.

TVA's announcement that it will idle the units drew approval from the Southern Alliance For Clean Energy, which issued a statement after the federal utility's press conference.

"We agree that there are more plants within the TVA system that need to be considered for additional retirements, but we welcome today's announcement," Stephen Smith, executive director of the organization, said in the prepared statement.

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Cancelling Ontario's wind project could cost over $100M, company warns

White Pines Project cancellation highlights Ontario's wind farm contract dispute in Prince Edward County, involving IESO approvals, Progressive Conservatives' legislation, potential court action, and costs to ratepayers amid green energy policy shifts.

 

Key Points

The termination effort for Ontario's White Pines wind farm contract, triggering legal, legislative, and cost disputes.

✅ Contract with IESO dates to 2009; final approval during election

✅ PCs seek legislation insulating taxpayers from litigation

✅ Cancellation could exceed $100M; cost impact on ratepayers

 

Cancelling an eastern Ontario green energy project that has been under development for nearly a decade could cost more than $100 million, the president of the company said Wednesday, warning that the dispute could be headed to the courts.

Ontario's governing Progressive Conservatives said this week that one of their first priorities during the legislature's summer sitting would be to cancel the contract for the White Pines Project in Prince Edward County.

Ian MacRae, president of WPD Canada, the company behind the project, said he was stunned by the news given that the project is weeks away from completion.

"What our lawyers are telling us is we have a completely valid contract that we've had since 2009 with the (Independent Electricity System Operator). ... There's no good reason for the government to breach that contract," he said.

The government has also not reached out to discuss the cancellation, he said. Meanwhile, construction on the site is in full swing, he said.

"Over the last couple weeks we've had an average of 100 people on site every day," he said. "The footprint of the project is 100 per cent in. So, all the access roads, the concrete for the base foundations, much of the electrical infrastructure. The sub-station is nearing completion."

The project includes nine wind turbines meant to produce enough electricity to power just over 3,000 homes annually, even as Ontario looks to build on an electricity deal with Quebec for additional supply. All of the turbines are expected to be installed over the next three weeks, with testing scheduled for the following month.

MacRae couldn't say for certain who would have to pay for the cancellation, electricity ratepayers or taxpayers.

"Somehow that money would come from IESO and it would be my assumption that would end up somehow on the ratepayers, despite legislation to lower electricity rates now in place," he said. "We just need to see what the government has in mind and who will foot the bill."

Progressive Conservative house leader Todd Smith, who represents the riding where the project is being built, said the legislation to cancel the project will also insulate taxpayers from domestic litigation over the dismantling of green energy projects.

"This is something that the people of Prince Edward County have been fighting ... for seven years," he said. "This shouldn't have come as a surprise to anybody that this was at the top of the agenda for the incoming government, which has also eyed energy independence in recent decisions."

Smith questioned why Ontario's Independent Electricity System Operator gave the final approval for the project during the spring election campaign.

"There's a lot of questions about how this ever got greenlighted in the first place," he said. "This project was granted its notice to proceed two days into the election campaign ... when (the IESO) should have been in the caretaker mode."

Terry Young, the IESO's vice president of policy, engagement and innovation, said the agency could not comment because of the pending introduction of legislation to cancel the deal, following a recent auditor-regulator dispute that drew attention to oversight.

NDP Leader Andrea Horwath said the new Tory government is behaving like the previous Liberal government by cancelling energy projects and tearing up contracts amid ongoing debates over Ontario's hydro mess and affordability. She likened the Tory plan to the Liberal gas plant scandal that saw the government relocate two plants at a substantial cost to taxpayers.

 

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Europe to Weigh Emergency Measures to Limit Electricity Prices

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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Starting Texas Schools After Labor Day: Power Grid and Cost Benefits?

Texas After-Labor Day School Start could ease ERCOT's power grid strain by shifting peak demand, lowering air-conditioning loads in schools, improving grid reliability, reducing electricity costs, and curbing emissions during extreme heat the summer months.

 

Key Points

A proposed calendar shift to start school after Labor Day to lower ERCOT peak demand, costs, and grid risk.

✅ Cuts school HVAC loads during peak summer heat

✅ Lowers costly peaker plant use and electricity rates

✅ Requires calendar changes, testing and activities shifts

 

As Texas faces increasing demands on its power grid, a new proposal is gaining traction: starting the school year after Labor Day. This idea, reported by the Dallas News, suggests that delaying the start of the academic year could help alleviate some of the pressure on the state’s electricity grid during the peak summer months, potentially leading to both grid stability and financial savings. Here’s an in-depth look at how this proposed change could impact Texas’s energy landscape and education system.

The Context of Power Grid Strain

Texas's power grid, operated by the Electric Reliability Council of Texas (ERCOT), has faced significant challenges in recent years. Extreme weather events, record-breaking temperatures, and high energy demand have strained the grid, and some analyses argue that climate change, not demand is the biggest challenge today, leading to concerns about reliability and stability. The summer months are particularly taxing, as the demand for air conditioning surges, often pushing the grid to its limits.

In this context, the idea of adjusting the school calendar to start after Labor Day has been proposed as a potential strategy to help manage electricity demand. By delaying the start of school, proponents argue that it could reduce the load on the power grid during peak usage periods, thereby easing some of the stress on energy resources.

Potential Benefits for the Power Grid

The concept of delaying the school year is rooted in the potential benefits for the power grid. During the hottest months of summer, the demand for electricity often spikes as families use air conditioning to stay cool, and utilities warn to prepare for blackouts as summer takes hold. School buildings, typically large and energy-intensive facilities, contribute significantly to this demand when they are in operation.

Starting school later could help reduce this peak demand, as schools would be closed during the hottest months when the grid is under the most pressure. This reduction in demand could help prevent grid overloads and reduce the risk of power outages, at a time when longer, more frequent outages are afflicting the U.S. power grid, ultimately contributing to a more stable and reliable electricity supply.

Additionally, a decrease in peak demand could help lower electricity costs. Power plants, particularly those that are less efficient and more expensive to operate, are often brought online during periods of high demand. By reducing the peak load, the state could potentially minimize the need for these costly power sources, leading to lower overall energy costs.

Financial and Environmental Considerations

The financial implications of starting school after Labor Day extend beyond just the power grid. By reducing energy consumption during peak periods, the state could see significant savings on electricity costs. This, in turn, could lead to lower utility bills for schools, businesses, and residents alike, a meaningful relief as millions risk electricity shut-offs during summer heat.

Moreover, reducing the demand for electricity from fossil fuel sources can have positive environmental impacts. Lower peak demand may reduce the reliance on less environmentally friendly energy sources, and aligns with calls to invest in a smarter electricity infrastructure nationwide, thereby decreasing greenhouse gas emissions and contributing to overall environmental sustainability.

Challenges and Trade-offs

While the proposal offers potential benefits, it also comes with challenges and trade-offs. Adjusting the school calendar would require significant changes to the academic schedule, potentially affecting extracurricular activities, summer programs, and family plans, and comparisons to California's reliability challenges underscore the complexity. Additionally, there could be resistance from various stakeholders, including parents, educators, and students, who are accustomed to the current school calendar.

There are also logistical considerations to address, such as how a delayed start might impact standardized testing schedules and the academic calendar for higher education institutions. These factors would need to be carefully evaluated to ensure that the proposed changes do not adversely affect educational outcomes or create unintended consequences.

Looking Ahead

The idea of starting Texas schools after Labor Day represents an innovative approach to addressing the challenges facing the state’s power grid. By potentially reducing peak demand and lowering energy costs, and alongside efforts to connect Texas's grid to the rest of the nation, this proposal could contribute to greater grid stability and financial savings. However, careful consideration and planning will be essential to navigate the complexities of altering the school calendar and to ensure that the benefits outweigh the challenges.

As Texas continues to explore solutions for managing its power grid and energy resources, the proposal to shift the school year schedule provides an intriguing possibility. It reflects a broader trend of seeking creative and multifaceted approaches to balancing energy demand, environmental sustainability, and public needs.

In conclusion, starting schools after Labor Day could offer tangible benefits for Texas’s power grid and financial well-being. As discussions on this proposal advance, it will be important to weigh all factors and engage stakeholders to ensure a successful and equitable implementation.

 

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Site C mega dam billions over budget but will go ahead: B.C. premier

Site C Dam Update outlines hydroelectric budget overruns, geotechnical risks, COVID-19 construction delays, BC Hydro timelines, cancellation costs, and First Nations treaty rights concerns affecting renewable energy, ratepayers, and Peace Valley impacts.

 

Key Points

Overview of Site C costs, delays, geotechnical risks, and concerns shaping BC Hydro hydroelectric plans.

✅ Cost to cancel estimated at least $10B

✅ Final budget now about $16B; completion pushed to 2025

✅ COVID-19 and geotechnical risks drove delays and redesigns

 

The cost to cancel a massive B.C. energy development project would be at least $10 billion, provincial officials revealed in an update on the future of Site C.

Thus the project will go ahead, Premier John Horgan and Energy Minister Bruce Ralston announced Friday, but with an increased budget and timeline.

Horgan and Ralston spoke at a news conference in Victoria about the findings of a status report into the hydroelectric dam project in northeastern B.C.

Peter Milburn, former deputy finance minister, finished the report earlier this year, but the findings were not initially made public.

$10B more than initial estimate
On Friday, it was announced that the project's final price tag has once again ballooned by billions of dollars.

Site C was initially estimated to cost $6 billion, and the first approved budget, back in 2014, was $8.775 billion. The budget increased to $10.8 billion in 2018.

But the latest update suggests it will cost about $16 billion in total.

And, in addition to a higher budget, the date of completion has been pushed back to 2025 – a year later than the initial target.

Among the reasons for the revisions, according to the province, is the impact of COVID-19. While officials did not get into details, there have been multiple cases of the disease publicly reported at Site C work camps.

Additionally, fewer workers were permitted on site to allow for physical distancing, and construction was scaled back.

Also cited as a cause for the increased cost were "unforeseeable" geotechnical issues at the site, which required installation of an enhanced drainage system.

Speaking to reporters Friday, the premier deflected blame.

“Managing the contract the BC Liberals signed has been difficult because it transfers the vast majority of the geotechnical risk back to BC Hydro,” said Horgan.

Former Premier Christy Clark vowed to get the project to a point of no return, and in 2017 the NDP decided to continue with the project because of the cost of cancelling it.

The Liberals now say the clean energy project should continue, but deny they shoulder any of the blame.

“Someone has to take ownership – and it's got to be government in power,” said MLA Tom Shypitka, BC Liberal critic for energy. 

There are also several reviews underway, including how to change contractor schedules to reflect delays and potential cost impacts from COVID-19, and how to keep the work environment safe during the pandemic.

A total of 17 recommendations were made in Milburn's report, all of which have been accepted by BC Hydro and the province.

Among these recommendations is a restructured project assurance board with a focus on skill-specific membership and autonomy from BC Hydro.

Cost of cancelling the project
The report looked into whether it would be better to scrap the project altogether, but the cost of cancelling it at this point would be at least $10 billion, Horgan and Ralston said.

That cost does not include replacing lost energy and capacity that Site C's electricity would have provided, according to the province.

A study conducted in 2019 suggested B.C. will need to double its electricity production by 2055, especially as drought conditions are forcing BC Hydro to adapt power generation. 

The NDP government says the cost to ratepayers of cancelling the project would be $216 a year for 10 years. Going forward will still have a cost, but instead, that payment will be split over more than 70 years, the estimated lifetime of Site C, meaning BC Hydro customers will pay about $36 more a year once the site goes live, the NDP says, even as cryptocurrency mining raises questions about electricity use.

“We will not put jobs at risk; we will not shock people's hydro bills,” said Horgan.

"Our government has taken this situation very seriously, and with the advice of independent experts guiding us, I am confident in the path forward for Site C," Ralston said.

"B.C. needs more renewable energy to bridge the electricity gap with Alberta and electrify our economy, transition away from fossil fuels and meet our climate targets."

The minister said the site is currently employing about 4,500 people.

Arguments against Site C
While there are benefits to the project, there has also been vocal opposition.

In a statement released following the announcement that the project would go ahead, the Union of B.C. Indian Chiefs suggested the decision violated the premier's commitment to a UN declaration.

"The Site C dam has never had the free, prior and informed consent of all impacted First Nations, and proceeding with the project is a clear infringement of the treaty rights of the West Moberly First Nation," the UBCIC's secretary treasurer said.

Kukpi7 Judy Wilson said the UN's Committee on the Elimination of Racial Discrimination has called for a suspension of the project until it has the consent of Indigenous peoples.

"B.C. did not even attempt to engage First Nations about the safety risks associated with the stability of the dam in the recent reviews," she said.

"It is unfathomable that such clear human rights violations are somehow OK by this government."

Chief Roland Wilson of the West Moberly First Nation said he was disappointed the province didn’t consult his and other communities prior to making this announcement. In an interview with CTV News, he said he was offered an opportunity to join a call this morning.

“We signed a treaty in 1814,” he said. “Our treaty rights are being trampled on.”

Wilson said his nation has ongoing concerns about safety issues and the plans to flood the Peace Valley. West Moberly is in a bitter court battle with the province.

At the BC Legislature, Green Party Leader Sonia Furstenau slammed the government’s decision.

“It is an astonishingly terrible business case in any circumstances, but considering that we lose the agricultural land, the biodiversity, the traditional treaty lands of Treaty 8, this is particularly catastrophic,” she told reporters.

She went on to accuse the NDP government of keeping bad news from the public. She alleged the NDP knew of serious problems before last fall’s unscheduled election, but chose not to release information.

Prior to the decision former BC Hydro president and a former federal fisheries minister are among those who added their voices to calls to halt work on the dam.

They were among 18 Canadians who wrote an open letter to the province calling for an independent team of experts to explore geotechnical problems at the site.

In the letter, signed in September, the group that also included Grand Chief Stewart Phillip of the UBCIC wrote that going ahead would be a "costly and potentially catastrophic mistake." 

According to Friday's update, independent experts have confirmed the site is safe, though improvements have been recommended to enhance oversight and risk management.

Earlier in the project, a B.C. First Nation claimed it was a $1-billion treaty violation, though an agreement was reached in 2020 after the province promised to improve land management and restore traditional place names in areas of cultural significance.

The Prophet River First Nation will also receive payments while the site is operating, and some Crown land will be transferred to the nation as part of the agreement. 

Additionally, residents of a tiny community not far from the site is suing the province over two slow-moving landslides they claim caused property values to plummet.

Nearly three dozen residents of Old Fort are behind the allegations of negligence and breach of their charter right to security of person. The claim is tied to two landslides, in 2018 and 2020, that the group alleges were caused by ground destabilization from construction related to Site C.

One of the landslides damaged the only road into the community, leaving residents under evacuation for a month.

 

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Explainer: Why nuclear-powered France faces power outage risks

France Nuclear Power Outages threaten the grid as EDF reactors undergo stress corrosion inspections, maintenance delays, and staff shortages, driving electricity imports, peak-demand curtailment plans, and potential rolling blackouts during a cold snap across Europe.

 

Key Points

EDF maintenance and stress corrosion cut reactor output, forcing imports and blackouts as cold weather lifts demand.

✅ EDF inspects stress corrosion cracks in reactor piping

✅ Maintenance backlogs and skilled labor shortages slow repairs

✅ Government plans demand cuts, imports, and rolling blackouts

 

France is bracing for possible power outages in the coming days as falling temperatures push up demand while state-controlled nuclear group EDF struggles to bring more production on line.


WHY CAN'T FRANCE MEET DEMAND?
France is one of the most nuclear-powered countries in the world, with a significant role of nuclear power in its energy mix, typically producing over 70% of its electricity with its fleet of 56 reactors and providing about 15% of Europe's total power through exports.

However, EDF (EDF.PA) has had to take a record number of its ageing reactors offline for maintenance this year just as Europe is struggling to cope with cuts in Russian natural gas supplies used for generating electricity, with electricity prices surging across the continent this year.

That has left France's nuclear output at a 30-year low, and mirrors how Europe is losing nuclear power more broadly, forcing France to import electricity and prepare plans for possible blackouts as a cold snap fuels demand for heating.


WHAT ARE EDF'S MAINTENANCE PROBLEMS?
While EDF normally has a number of its reactors offline for maintenance, it has had far more than usual this year due to what is known as stress corrosion on pipes in some reactors, and during heatwaves river temperature limits have constrained output further.

At the request of France's nuclear safety watchdog, EDF is in the process of inspecting and making repairs across its fleet since detecting cracks in the welding connecting pipes in one reactor at the end of last year.

Years of under-investment in the nuclear sector mean that there is precious little spare capacity to meet demand while reactors are offline for maintenance, and environmental constraints such as limits on energy output during high river temperatures reduce flexibility.

France also lacks specialised welders and other workers in sufficient numbers to be able to make repairs fast enough to get reactors back online.

 

WHAT IS BEING DONE?
In the very short term, after a summer when power markets hit records as plants buckled in heat, there is little that can be done to get more reactors online faster, leaving the government to plan for voluntary cuts at peak demand periods and limited forced blackouts.

In the very short term, there is little that can be done to get more reactors online faster, leaving the government to plan for voluntary cuts at peak demand periods and limited forced blackouts.

Meanwhile, EDF and others in the French nuclear industry are on a recruitment drive for the next generation of welders, pipe-fitters and boiler makers, going so far as to set up a new school to train them.

President Emmanuel Macron wants a new push in nuclear energy, even as a nuclear power dispute with Germany persists, and has committed to building six new reactors at a cost his government estimates at nearly 52 billion euros ($55 billion).

As a first step, the government is in the process of buying out EDF's minority shareholders and fully nationalising the debt-laden group, which it says is necessary to make the long-term investments in new reactors.
 

 

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Nine EU countries oppose electricity market reforms as fix for energy price spike

EU Electricity Market Reform Opposition highlights nine states resisting an overhaul of the wholesale power market amid gas price spikes, urging energy efficiency, interconnection targets, and EU caution rather than redesigns affecting renewables.

 

Key Points

Nine EU states reject overhauling wholesale power pricing, favoring efficiency and prudent policy over redesigns.

✅ Nine states oppose redesign of wholesale power market.

✅ Call for efficiency and 15% interconnection by 2030.

✅ Ministers to debate responses amid gas-driven price spikes.

 

Germany, Denmark, Ireland and six other European countries said on Monday they would not support a reform of the EU electricity market, ahead of an emergency meeting of energy ministers to discuss emergency measures and the recent price spike.

European gas and power prices soared to record high levels in autumn and have remained high, prompting countries including Spain and France to urge Brussels to redesign its electricity market rules.

Nine countries on Monday poured cold water on those proposals, in a joint statement that said they "cannot support any measure that conflicts with the internal gas and electricity market" such as an overhaul of the wholesale power market altogether.

"As the price spikes have global drivers, we should be very careful before interfering in the design of internal energy markets," the statement said.

"This will not be a remedy to mitigate the current rising energy prices linked to fossil fuels markets across Europe."

Austria, Germany, Denmark, Estonia, Finland, Ireland, Luxembourg, Latvia and the Netherlands signed the statement, which called instead for more measures to save energy and a target for a 15% interconnection of the EU electricity market by 2030.

European energy ministers meet tomorrow to discuss their response to the price spike, including gas price cap strategies under consideration. Most countries are using tax cuts, subsidies and other national measures to shield consumers against the impact higher gas prices are having on energy bills, but EU governments are struggling to agree on a longer term response.

Spain has led calls for a revamp of the wholesale power market in response to the price spike, amid tensions between France and Germany over reform, arguing that the system is not supporting the EU's green transition.

Under the current system, the wholesale electricity price is set by the last power plant needed to meet overall demand for power. Gas plants often set the price in this system, which Spain said was unfair as it results in cheap renewable energy being sold for the same price as costlier fossil fuel-based power.

The European Commission has said it will investigate whether the EU power market is functioning well, but that there is no evidence to suggest a different system would have better protected countries against the surge in energy costs, and that rolling back electricity prices is tougher than it appears during such spikes.

 

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