Thousands without power in Maritimes

Distributed Energy Resources (DER) are surging as solar PV, battery storage, and demand response decarbonize power, cut costs, and boost grid resilience for utilities, ESCOs, and C&I customers through 2030.

Key Points

DER are small-scale, grid-connected assets like solar PV, storage, and demand response that deliver flexible power.

✅ Investments in DER to rise 75% by 2030; $846B in assets, $285B in storage.

✅ Residential solar PV: 49.3% of spend; C&I solar PV: 38.9% by 2030.

✅ Drivers: favorable policy, falling costs, high demand charges, decarbonization.

Frost & Sullivan's recent analysis, Growth Opportunities in Distributed Energy, Forecast to 2030, finds that the rate of annual investment in distributed energy resources (DER) will increase by 75% by 2030, with the market set for a decade of high growth. Favorable regulations, declining project and technology costs, and high electricity and demand charges are key factors driving investments in DER across the globe, with rising European demand boosting US solar equipment makers prospects in export markets. The COVID-19 pandemic will reduce investment levels in the short term, but the market will recover. Throughout the decade, $846 billion will be invested in DER, supported by a further $285 billion that will be invested in battery storage, with record solar and storage growth anticipated as installations and investments accelerate.

"The DER business model will play an increasingly pivotal role in the global power mix, as highlighted by BNEF's 2050 outlook and as part of a wider effort to decarbonize the sector," said Maria Benintende, Senior Energy Analyst at Frost & Sullivan. "Additionally, solar photovoltaic (PV) will dominate throughout the decade. Residential solar PV will account for 49.3% of total investment ($419 billion), though policy moves like a potential Solar ITC extension could pressure the US wind market, with commercial and industrial solar PV accounting for a further 38.9% ($330 billion)."

Benintende added: "In developing economies, DER offers a chance to bridge the electricity supply gap that still exists in a number of country markets. Further, in developed markets, DER is a key part of the transition to a cleaner and more resilient energy system, consistent with IRENA's renewables decarbonization findings across the energy sector."

DER offers significant revenue growth prospects for all key market participants, including:

• Technology original equipment manufacturers (OEMs): Offer flexible after-sales support, including digital solutions such as asset integrity and optimization services for their installed base.
• System integrators and installers: Target household customers and provide efficient and trustworthy solutions with flexible financial models.
• Energy service companies (ESCOs): ESCOs should focus on adding DER deployments, in line with US decarbonization pathways and policy goals, to expand and enhance their traditional role of providing energy savings and demand-side management services to customers.

Utility companies: Deployment of DER can create new revenue streams for utility companies, from real-time and flexibility markets, and rapid solar PV growth in China illustrates how momentum in renewables can shape utility strategies.
Growth Opportunities in Distributed Energy, Forecast to 2030 is the latest addition to Frost & Sullivan's Energy and Environment research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

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California Rooftop Solar Cost Shift examines PG&E rate hikes, net metering changes, and utility infrastructure spending impacts on low-income households, distributed generation, and clean energy adoption, potentially raising bills and undermining grid resilience.

Key Points

A claim that rooftop solar shifts fixed grid costs to others; critics cite PG&E rates, avoided costs, and impacts.

✅ PG&E rates outpace national average, underscoring cost drivers.

✅ Net metering cuts risk burdening low- and middle-income homes.

✅ Distributed generation avoids infrastructure spend and grid strain.

California is grappling with soaring electricity prices across the state, with Pacific Gas & Electric (PG&E) rates more than double the national average and increasing at an average of 12.5% annually over the past six years. In response, Governor Gavin Newsom issued an executive order directing state energy agencies to identify ways to reduce power costs. However, recent policy shifts targeting rooftop solar users may exacerbate the problem rather than alleviate it.

The "Cost Shift" Theory

A central justification for these pricing changes is the "cost shift" theory. This theory posits that homeowners with rooftop solar panels reduce their electricity consumption from the grid, thereby shifting the fixed costs of maintaining and operating the electrical grid onto non-solar customers. Proponents argue that this leads to higher rates for those without solar installations.

However, this theory is based on a flawed assumption: that PG&E owns 100% of the electricity generated by its customers and is entitled to full profits even for energy it does not deliver. In reality, rooftop solar users supply only about half of their energy needs and still pay for the rest. Moreover, their investments in solar infrastructure reduce grid strain and save ratepayers billions by avoiding costly infrastructure projects and reducing energy demand growth, aligning with efforts to revamp electricity rates to clean the grid as well.

Impact on Low- and Middle-Income Households

The majority of rooftop solar users are low- and middle-income households. These individuals often invest in solar panels to lower their energy bills and reduce their carbon footprint. Policy changes that undermine the financial viability of rooftop solar disproportionately affect these communities, and efforts to overturn income-based charges add uncertainty about affordability and access.

For instance, Assembly Bill 942 proposes to retroactively alter contracts for millions of solar consumers, cutting the compensation they receive from providing energy to the grid, raising questions about major changes to your electric bill that could follow if their home is sold or transferred. This would force those with solar leases—predominantly lower-income individuals—to buy out their contracts when selling their homes, potentially incurring significant financial burdens.

The Real Drivers of Rising Energy Costs

While rooftop solar users are being blamed for rising electricity rates, calls for action have mounted as the true culprits lie elsewhere. Unchecked utility infrastructure spending has been a significant factor in escalating costs. For example, PG&E's rates have increased rapidly, yet the utility's spending on infrastructure projects has often been criticized for inefficiency and lack of accountability. Instead of targeting solar users, policymakers should scrutinize utility profit motives and infrastructure investments to identify areas where costs can be reduced without sacrificing service quality.

California's approach to addressing rising electricity costs by targeting rooftop solar users is misguided. The "cost shift" theory is based on flawed assumptions and overlooks the substantial benefits that rooftop solar provides to the grid and ratepayers. To achieve a sustainable and equitable energy future, the state must focus on controlling utility spending, promoting clean energy access for all, especially as it exports its energy policies across the West, and ensuring that policies support—not undermine—the adoption of renewable energy technologies.

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FPL Rate Increase Proposal 2026-2029 outlines $9B base-rate hikes as Florida grows, citing residential demand, grid infrastructure investments, energy mix diversification, and Florida PSC review impacting customer bills, reliability, and fuel price volatility mitigation.

Key Points

A $9B base-rate plan FPL filed with the Florida PSC to fund growth, grid upgrades, and energy diversification through 2029.

✅ Adds 275k since 2021; +335k customers projected by 2029.

✅ Monthly bills rise to about $157 by 2029, up ~22% total.

✅ Investments in poles, wires, transformers, substations, renewables.

Florida Power & Light (FPL), the state's largest utility provider, has submitted a proposal to the Florida Public Service Commission (PSC) seeking a substantial increase in customer base rates over the next four years, amid ongoing scrutiny, including a recent hurricane surcharge controversy that heightened public attention.

Rationale Behind the Rate Increase

FPL's request is primarily influenced by Florida's robust population growth. Since 2021, the utility has added about 275,000 customers and projects an additional 335,000 by the end of 2029. This surge necessitates significant investments in transmission and distribution infrastructure, including poles, wires, transformers, and substations, to maintain reliable service. Moreover, FPL aims to diversify its energy mix to shield customers from fuel price volatility, even as the state declined federal solar incentives that could influence renewable adoption, ensuring a stable and sustainable power supply.

Impact on Customer Bills

If approved, the proposed rate increases would affect residential customers as follows:

• 2026: An estimated increase of $11.52 per month, raising the typical bill to $145.66.

• 2027: An additional $6.05 per month, bringing the bill to $151.71.

• 2028: A further increase of $3.64 per month, totaling $155.35.

• 2029: An extra $2.06 per month, resulting in a final bill of $157.41.

These adjustments represent a cumulative increase of approximately 22% over the four-year period, while in other regions some customers face sharper spikes, such as Pennsylvania's winter price increases this season.

Comparison with Previous Rate Hikes

This proposal follows a series of rate increases approved in recent years, as California electricity bills have soared and prompted calls for action in that state. For instance, Tampa Electric Co. (TECO) received approval for rate hikes totaling $287.9 million in 2025, with additional increases planned for 2026 and 2027. Consumer groups have expressed intentions to challenge these rate hikes, indicating a trend of growing scrutiny over utility rate adjustments.

Regulatory Review Process

The PSC is scheduled to review FPL's rate increase proposal in the coming months. A staff recommendation is expected by March 14, 2025, with a final decision anticipated at a commission conference on March 20, 2025. This process allows for public input and thorough evaluation of the proposed rate changes, while elsewhere some utilities anticipate stabilization, such as PG&E's 2025 outlook in California.

Customer and Consumer Advocacy Responses

The proposed rate hikes have elicited concerns from consumer advocacy groups. Organizations like Food & Water Watch have criticized the scale of the increase, labeling it as the largest rate hike request in U.S. history, amid mixed signals such as Gulf Power's one-time 40% bill decrease earlier this year. They argue that such substantial increases could place undue financial strain on households, especially those with fixed incomes.

Additionally, the Florida Public Service Commission has faced challenges in approving rate hikes for other utilities, such as TECO, and a recent Florida court decision on electricity monopolies that may influence the policy landscape, with consumer groups planning to appeal these decisions. This backdrop of heightened scrutiny suggests that FPL's proposal will undergo rigorous examination.

As Florida continues to experience rapid growth, balancing the need for infrastructure development and reliable energy services with the financial impact on consumers remains a critical challenge. The PSC's forthcoming decisions will play a pivotal role in shaping the state's energy landscape, influencing both the economy and the daily lives of Floridians.

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BC Hydro 2021 Peak Load Records highlight record-breaking electricity demand, peak load spikes, heat dome impacts, extreme cold, and shifting work-from-home patterns managed by a flexible hydroelectric system and climate-driven load trends.

Key Points

Record-breaking electricity demand peaks from extreme heat and cold that reshaped daily load patterns across BC in 2021.

✅ Heat dome and deep freeze drove sustained peak electricity demand

✅ Peak load built gradually, reflecting work-from-home behavior

✅ Flexible hydroelectric system adapts quickly to demand spikes

From June’s heat dome to December’s extreme cold, 2021 was a record-setting year, according to BC Hydro, and similar spikes were noted as Calgary's electricity use surged in frigid weather.

On Friday, the energy company released a new report on electricity demand, and how extreme temperatures over extended periods of time, along with growing scrutiny of crypto mining electricity use, led to record peak loads.

“We use peak loads to describe the electricity demand in the province during the highest load hour of each day,” Kyle Donaldson, BC Hydro spokesperson, said in a media release.

“With the heat dome in the summer and the sustained cold temperatures in December, we saw more record-breaking hours on more days last year than any other single year.”

According to BC Hydro, during summer, the Crown corporation recorded 19 of its top 25 all-time summer daily peak records — including breaking its all-time summer peak hourly demand record.

In December, which saw extremely cold temperatures and heavy snowfall, BC Hydro said its system experienced the highest and longest sustained load levels ever, as it activated its winter payment plan to assist customers.

Overall, BC Hydro says it has experienced 11 of its top 25 all-time daily peak records this winter, adding that Dec. 27 broke its all-time high peak hourly demand record.

“BC Hydro’s hydroelectric system is directly impacted by variations in weather, including drought conditions that require adaptation, and in 2021 more electricity demand records were broken than any other year prior, largely because of the back-to-back extreme temperatures lasting for days and weeks on end,” reads the report.

The energy company expects this trend to continue, noting that it has broken the peak record five times in the past five years, and other jurisdictions such as Quebec consumption record have also shattered consumption records.

It also noted that peak demand patterns have also changed since the first year of the COVID-19 pandemic, with trends seen during Earth Hour usage offering context.

“When the previous peak hourly load record was broken in January 2020, load displayed sharper increases and decreases throughout the day, suggesting more typical weather and behaviour,” said the report.

“In contrast, the 2021 peak load built up more gradually throughout the day, suggesting more British Columbians were likely working from home, or home for the holidays – waking up later and home earlier in the evening – as well as colder weather than average.”

BC Hydro also said “current climate models suggest a warming trend continuing in years to come which could increase demand year-round,” but noted that its flexible hydroelectric system can meet changes in demand quickly.

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Hong Kong Typhoon Mangkhut Power Outages strain households with blackouts, electricity disruption, and humid heat, impacting Tin Ping Estate in Sheung Shui and outlying islands; contractor-led restoration faces fines for delays and infrastructure repairs.

Key Points

They are blackout events after Typhoon Mangkhut, bringing heat stress, food spoilage, and delayed power restoration.

✅ 16 floors in Tin Ping Estate lost power after meter room blast.

✅ Contractor faces HK$100,000 daily fines for late restoration.

✅ Kat O and Ap Chau families remain off-grid in humid heat.

Nearly 600 Hong Kong families are still sweltering under the summer heat and facing dark nights without electricity after Typhoon Mangkhut cut off power supply to areas, echoing mass power outages seen elsewhere.

At Sheung Shui’s Tin Ping Estate in the New Territories, 384 families were still without power, a situation similar to the LA-area blackout that left many without service. They were told on Tuesday that a contractor would rectify the situation by Friday, or be fined HK$100,000 for each day of delay.

In remote areas such as outlying islets Kat O and Ap Chau, there were some 200 families still without electricity, similar to Tennessee storm outages affecting rural communities.

The power outage at Tin Ping Estate affected 16 floors – from the 11th to 26th – in Tin Cheung House after a blast from the meter room on the 15th floor was heard at about 5pm on Sunday, and authorities urged residents to follow storm electrical safety tips during repairs.

“I was sitting on the sofa when I heard a loud bang,” said Lee Sau-king, 61, whose flat was next to the meter room. “I was so scared that my hands kept trembling.”

While the block’s common areas and lifts were not affected, flats on the 16 floors encountered blackouts.

As her fridge was out of power, Lee had to throw away all the food she had stocked up for the typhoon. With the freezer not functioning, her stored dried seafood became soaked and she had to dry them outside the window when the storm passed.

Daily maximum temperatures rose back to 30 degrees Celsius after the typhoon, and nights became unbearably humid, as utilities worldwide pursue utility climate adaptation to maintain reliability. “It’s too hot here. I can’t sleep at all,” Lee said.

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Ireland Coal-Free Electricity Record: EirGrid reports 25 days without coal on the all-island grid, as wind power, renewables, and natural gas dominated generation, cutting CO2 emissions, with Moneypoint sidelined by market competitiveness.

Key Points

It is a 25-day period when the grid used no coal, relying on gas and renewables to reduce CO2 emissions.

✅ 25 days coal-free between April 11 and May 7

✅ Gas 60%, renewables 30% of generation mix

✅ Eurostat: 6.8% drop in Ireland's CO2 emissions

The island of Ireland has gone a record length of time without using coal-fired electricity generation on its power system, Britain's week-long coal-free run providing a recent comparator, Eirgrid has confirmed.

The all-island grid operated without coal between April 11th and May 7th – a total of 25 days, it confirmed. This is the longest period of time the grid has operated without coal since the all-island electricity market was introduced in 2007, echoing Britain's record coal-free stretch seen recently.

Ireland’s largest generating station, Moneypoint in Co Clare, uses coal, with recent price spikes in Ireland fueling concerns about dispatchable capacity, as do some of the larger generation sites in Northern Ireland.

The analysis coincides with the European statistics agency, Eurostat publishing figures showing annual CO2 emissions in Ireland fell by 6.8 per cent last year; partly due to technical problems at Moneypoint.

Over the 25-day period, gas made up 60 per cent of the fuel mix, while renewable energy, mainly wind, accounted for 30 per cent, echoing UK wind surpassing coal in 2016 across the market. Coal-fired generation was available during this period but was not as competitive as other methods.

EirGrid group chief executive Mark Foley said this was “a really positive development” as coal was the most carbon intense of all electricity sources, with its share hitting record lows in the UK in recent years.

“We are acutely aware of the challenges facing the island in terms of meeting our greenhouse gas emission targets, mindful that low-carbon generation stalled in the UK in 2019, through the deployment of more renewable energy on the grid,” he added.

Last year 33 per cent of the island’s electricity came from renewable energy sources, German renewables surpassing coal and nuclear offering a parallel milestone, a new record. Coal accounted for 9 per cent of electricity generation, down from 12.9 per cent in 2017.

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