Australia on track to tap geothermal potential

Electricity Security and Firm Capacity underpin reliable supply, balancing variable renewables with grid flexibility via gas plants, nuclear power, hydropower, battery storage, and demand response, safeguarding telework, e-commerce, and critical healthcare operations.

Key Points

Ability to meet demand by combining firm generation and flexible resources, keeping grids stable as renewables grow.

✅ Balances variable renewables with dispatchable generation

✅ Rewards flexibility via capacity markets and ancillary services

✅ Enhances grid stability for critical loads during low demand

The huge disruption caused by the coronavirus crisis, and the low-carbon electricity lessons drawn from it, has highlighted how much modern societies rely on electricity and how firm capacity, such as that provided by nuclear power, is a crucial element in ensuring supply, International Energy Agency (IEA) Executive Director Fatih Birol said.

In a commentary posted on LinkedIn, Birol said: "The coronavirus crisis reminds us of electricity's indispensable role in our lives. It's also providing insights into how that role is set to expand and evolve in the years and decades ahead."

Reliable electricity supply is crucial for teleworking, e-commerce, operating ventilators and other medical equipment, among all its other uses, he said, adding that the hundreds of millions of people who live without any access to electricity are far more vulnerable to disease and other dangers.

"Although new forms of short-term flexibility such as battery storage are on the rise, and initiatives like UK home virtual power plants are emerging, most electricity systems rely on natural gas power plants - which can quickly ramp generation up or down at short notice - to provide flexibility, underlining the critical role of gas in clean energy transitions," Birol said.

"Today, most gas power plants lose money if they are used only from time to time to help the system adjust to shifts in demand. The lower levels of electricity demand during the current crisis are adding to these pressures. Hydropower, an often forgotten workhorse of electricity generation, remains an essential source of flexibility.

"Firm capacity, including nuclear power in countries that have chosen to retain it as an option, is a crucial element in ensuring a secure electricity supply even as soaring electricity and coal use complicate transitions. Policy makers need to design markets that reward different sources for their contributions to electricity security, which can enable them to establish viable business models."

In most economies that have taken strong confinement measures in response to the coronavirus - and for which the IEA has available data - electricity demand has declined by around 15%, largely as a result of factories and businesses halting operations, and in New York City load patterns were notably reshaped during lockdowns. If electricity demand falls quickly while weather conditions remain the same, the share of variable renewables like wind and solar can become higher than normal, and low-emissions sources are set to cover almost all near-term growth.

"With weaker electricity demand, power generation capacity is abundant. However, electricity system operators have to constantly balance demand and supply in real time. People typically think of power outages as happening when surging electricity demand overwhelms supply. But in fact, some of the most high-profile blackouts in recent times took place during periods of low demand," Birol said.

"When electricity from wind and solar is satisfying the majority of demand, and renewables poised to eclipse coal by 2025 are reshaping the mix, systems need to maintain flexibility in order to be able to ramp up other sources of generation quickly when the pattern of supply shifts, such as when the sun sets. A very high share of wind and solar in a given moment also makes the maintenance of grid stability more challenging."

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Bruce Power Major Component Replacement secures Ontario-made nuclear components via $914M contracts, supporting refurbishment, clean energy, low-cost electricity, and advanced manufacturing, extending reactor life to 2064 while boosting jobs, supply chain growth, and economy.

Key Points

A refurbishment program investing $914M in advanced manufacturing to extend reactors and deliver low-cost, clean power.

✅ $914M Ontario-made components for steam generators, tubes, fittings

✅ Extends reactor life to 2064; clean, low-cost electricity for Ontario

✅ Supports 22,000 jobs annually; boosts supply chain and economy

Today, Bruce Power signed $914 million in advanced manufacturing contracts for its Major Component Replacement, which gets underway in 2020, as the reactor refurbishment begins across the site and will allow the site to provide low-cost, carbon-free electricity to Ontario through 2064.

The Major Component Replacement (MCR) Project agreements include:

• $642 million to BWXT Canada Inc. for the manufacturing of 32 steam generators to be produced at BWXT’s Cambridge facility.
• $144 million to Laker Energy Products for end fittings, liners and flow elements, which will be manufactured at its Oakville location.
• $62 million to Cameco Fuel Manufacturing, in Cobourg, for calandria tubes and annulus spacers for all six MCRs.
• $66 million for Nu-Tech Precision Metals, in Arnprior, for the production of zirconium alloy pressure tubes for Units 6 and 3.

Bruce Power’s Life-Extension Program, which started in January 2016 with Asset Management Program investments and includes the MCRs on Units 3-8, remains on time and on budget.”

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By signing these contracts today, we have secured ‘Made in Ontario‘ solutions for the components we will need to successfully complete our MCR Projects, extending the life of our site to 2064,” said Mike Rencheck, Bruce Power’s President and CEO.

“Today’s announcements represent a $914 million investment in Ontario’s highly skilled workforce, which will create untold economic opportunities for the communities in which they operate for many years to come.”We look forward to growing our already excellent relationships with these supplier partners and unions as we work toward our common goal, supported by an operating record, of continuing to keep Canada’s largest infrastructure project on time and on budget."

By extending the life of Bruce Power’s reactors to 2064, the company will create and sustain 22,000 jobs annually, both directly and indirectly, across Ontario, while investing $4 billion a year into the province’s economy, underscoring the economic benefits of nuclear development across Canada.

At the same time, Bruce Power will produce 30 per cent of Ontario’s electricity at 30 per cent less than the average cost to generate residential power, while also producing zero carbon emissions, aligning with Pickering NGS life extensions across the province.The Hon. Glenn Thibeault, Minister of Energy, said today’s announcement is good news for the people of Ontario.”

Bruce Power’s Life-Extension Program makes sense for Ontario, and the announcements made today will create good jobs and benefit our economy for decades to come,” Minister Thibeault said.

“Moving forward with the refurbishment project is part of our government’s plan to support care and opportunity, while producing affordable, reliable and clean energy for the people of Ontario.”Kim Rudd, Parliamentary Secretary to the Minister of Natural Resources and MP for Northumberland-Peterborough South, offered her support and congratulations.”

Related planning includes Bruce C project exploration funding that supports long-term nuclear options in Ontario.

Canada’s nuclear industry, including its advanced manufacturing capability, is respected internationally,” Rudd said. “Bruce Power’s announcement today related to the advanced manufacturing of key components throughout Ontario as part of its Life-Extension Program will allow these suppliers to have a secure base to not only meet Canada’s needs, but export internationally.”

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U.S. Energy Dominance envisions deregulation, oil and gas growth, LNG exports, pipelines, and geopolitical leverage, while facing OPEC pricing power, infrastructure bottlenecks, climate policy pressures, and accelerating renewables in global markets.

Key Points

U.S. policy to grow fossil fuel output and exports via deregulation, bolstering energy security, geopolitical influence.

✅ Deregulation to expand drilling, pipelines, and export capacity

✅ Exposed to OPEC pricing, global shocks, and cost competitiveness

✅ Faces infrastructure, ESG finance, and renewables transition risks

Former President Donald Trump has consistently advocated for “energy dominance” as a cornerstone of his energy policy. In his vision, the United States would leverage its abundant natural resources to achieve energy self-sufficiency, flood global markets with cheap energy, and undercut competitors like Russia and OPEC nations. However, while the rhetoric resonates with many Americans, particularly those in energy-producing states, the pursuit of energy dominance faces significant real-world challenges that could limit its feasibility and impact.

The Energy Dominance Vision

Trump’s energy dominance strategy revolves around deregulation, increased domestic production of oil and gas, and the rollback of climate-oriented restrictions. During his presidency, he emphasized opening federal lands to drilling, accelerating the approval of pipelines, and, through an executive order, boosting uranium and nuclear energy initiatives, as well as withdrawing from international agreements like the Paris Climate Accord. The goal was not only to meet domestic energy demands but also to establish the U.S. as a major exporter of fossil fuels, thereby reducing reliance on foreign energy sources.

This approach gained traction during Trump’s first term, with the U.S. achieving record levels of oil and natural gas production. Energy exports surged, making the U.S. a net energy exporter for the first time in decades. Yet, critics argue that this policy prioritizes short-term economic gains over long-term sustainability, while supporters believe it provides a roadmap for energy security and geopolitical leverage.

Market Realities

The energy market is complex, influenced by factors beyond the control of any single administration, with energy crisis impacts often cascading across sectors. While the U.S. has significant reserves of oil and gas, the global market sets prices. Even if the U.S. ramps up production, it cannot insulate itself entirely from price shocks caused by geopolitical instability, OPEC production cuts, or natural disasters.

For instance, despite record production in the late 2010s, American consumers faced volatile gasoline prices during an energy crisis driven by $5 gas and external factors like tensions in the Middle East and fluctuating global demand. Additionally, the cost of production in the U.S. is often higher than in countries with more easily accessible reserves, such as Saudi Arabia. This limits the competitive advantage of U.S. energy producers in global markets.

Infrastructure and Environmental Concerns

A major obstacle to achieving energy dominance is infrastructure. Expanding oil and gas production requires investments in pipelines, export terminals, and refineries. However, these projects often face delays due to regulatory hurdles, legal challenges, and public opposition. High-profile pipeline projects like Keystone XL and Dakota Access have become battlegrounds between industry proponents and environmental activists, and cross-border dynamics such as support for Canadian energy projects amid tariff threats further complicate permitting, highlighting the difficulty of reconciling energy expansion with environmental and community concerns.

Moreover, the transition to cleaner energy sources is accelerating globally, with many countries committing to net-zero emissions targets. This trend could reduce the demand for fossil fuels in the long run, potentially leaving U.S. producers with stranded assets if global markets shift more quickly than anticipated.

Geopolitical Implications

Trump’s energy dominance strategy also hinges on the belief that U.S. energy exports can weaken adversaries like Russia and Iran. While increased American exports of liquefied natural gas (LNG) to Europe have reduced the continent’s reliance on Russian gas, achieving total energy independence for allies is a monumental task. Europe’s energy infrastructure, designed for pipeline imports from Russia, cannot be overhauled overnight to accommodate LNG shipments.

Additionally, the influence of major producers like Saudi Arabia and the OPEC+ alliance remains significant, even as shifts in U.S. policy affect neighbors; in Canada, some viewed Biden as better for the energy sector than alternatives. These countries can adjust production levels to influence prices, sometimes undercutting U.S. efforts to expand its market share.

The Renewable Energy Challenge

The growing focus on renewable energy adds another layer of complexity. Solar, wind, and battery storage technologies are becoming increasingly cost-competitive with fossil fuels. Many U.S. states and private companies are investing heavily in clean energy to align with consumer preferences and global trends, amid arguments that stepping away from fossil fuels can bolster national security. This shift could dampen the domestic demand for oil and gas, challenging the long-term viability of Trump’s energy dominance agenda.

Moreover, international pressure to address climate change could limit the expansion of fossil fuel infrastructure. Financial institutions and investors are increasingly reluctant to fund projects perceived as environmentally harmful, further constraining growth in the sector.

While Trump’s call for U.S. energy dominance taps into a desire for economic growth and energy security, it faces numerous challenges. Global market dynamics, infrastructure bottlenecks, environmental concerns, and the transition to renewable energy all pose significant barriers to achieving the ambitious vision.

For the U.S. to navigate these challenges effectively, a balanced approach that incorporates both traditional energy sources and investments in clean energy is likely needed. Striking this balance will require careful policymaking that considers not just immediate economic gains but also long-term sustainability and global competitiveness.

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Entergy COVID-19 Emergency Relief Fund provides financial assistance to ALICE households, low-income seniors, and disabled customers via United Way grants for rent, mortgage, utilities, food, and bill payment support during COVID-19, alongside a disconnect moratorium.

Key Points

A shareholder-funded program offering essential grants and bill support to Entergy customers affected by COVID-19.

✅ Shareholders commit $700,000; grants distributed via United Way partners.

✅ Focus on ALICE families, low-income seniors, and disabled customers.

✅ Disconnects suspended; bill tools and LIHEAP advocacy underway.

In an effort to help working families experiencing financial hardships as a result of the coronavirus pandemic, the Entergy Charitable Foundation has established the COVID-19 Emergency Relief Fund, recognizing the need for electricity across communities.

"The health and safety of our customers, employees and communities is Entergy's top priority," said Leo Denault, chairman and CEO of Entergy Corporation. "For more than 100 years, Entergy has never wavered in our commitment to supporting our customers and the communities we serve. This pandemic is no different. During this challenging time, we are helping lessen the impact of this crisis on the most vulnerable in our communities. I strongly encourage our business partners to join us in this effort."

As devastating and disruptive as this crisis is for everyone, we know from past experience that those most heavily impacted are ALICE households (low-wage working families) and low-income elderly and disabled customers, who often face energy insecurity during such events - roughly 40%-50% of Entergy's customer base.

"We know from experience that working families and low-income elderly and disabled customers are hardest hit during times of crisis," said Patty Riddlebarger, vice president of Entergy's corporate social responsibility. "We are working quickly to make funds available to community partners that serve vulnerable households to lessen the economic impact of the COVID-19 crisis and ensure that families have the resources they need to get by during this time of uncertainty."

To support our most vulnerable customers, Entergy shareholders are committing $700,000 to the COVID-19 Emergency Relief Fund to help qualifying customers with basic needs such as food and nutrition, rent and mortgage assistance, and other critical needs, alongside measures like Texas utilities waiving fees that ease household costs, until financial situations become more stable. Grants from the fund will be provided to United Way organizations and other nonprofit partners across Entergy's service area that are providing services to impacted households.

Company shareholders will also match employee contributions to the COVID-19 relief efforts of local United Way organizations up to $100,000 to maximize impact.

In addition to establishing the COVID-19 Emergency Relief Fund, Entergy is taking additional steps to support and protect our customers during this crisis, similar to PG&E's pandemic response measures, including:

With support from our regulators, we are temporarily suspending customer disconnects, as seen in New Jersey and New York policies, as we continue to monitor the situation.

We are working with our network of community advocates, as the industry coordination with federal partners continues, to request a funding increase of the Low Income Home Energy Assistance Program to help alleviate financial hardships caused by COVID-19 on vulnerable households.

We are developing bill payment solutions and tools to help customers pay their accumulated balances once the disconnect moratorium is lifted.

Already in place to support vulnerable customers is Entergy's The Power to Care program, which provides emergency bill payment assistance to seniors and disabled individuals. To mark the 20th anniversary of Entergy's low-income customer initiative, the limit of shareholders' dollar for dollar match of customer donations was increased from $500,000 to $1 million per year. Shareholders continue to match employee donations dollar for dollar with no limit.

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EU Gas Price Cap Strategies aim to curb inflation during an energy crisis by capping wholesale gas and electricity generation costs, balancing supply and demand, mitigating subsidies, and safeguarding supply security amid Russia-Ukraine shocks.

Key Points

Temporary EU measures to cap gas and power prices, curb inflation, manage demand, and protect supply security.

✅ Flexible temporary price limits to secure gas supplies

✅ Framework cap on gas for electricity generation with demand checks

✅ Risk: subsidies, higher demand, and market distortions

The European Commission has outlined possible strategies to cap gas prices as the bloc faces a looming energy crisis this winter. 

Member states are divided over the emergency measures designed to pull down soaring inflation amid Russia's war in Ukraine. 

One proposal is a temporary "flexible" limit on gas prices to ensure that Europe can continue to secure enough gas, EU energy commissioner Kadri Simson said on Tuesday. 

Another option could be an EU-wide "framework" for a price cap on gas used to generate electricity, which would be combined with measures to ensure gas demand does not rise as a result, she said.

EU leaders are meeting on Friday to debate gas price cap strategies amid warnings that Europe's energy nightmare could worsen this winter.

Last week, France, Italy, Poland and 12 other EU countries urged the Commission to propose a broader price cap targeting all wholesale gas trade. 

But Germany -- Europe's biggest gas buyer -- and the Netherlands are among those opposing electricity market reforms within the bloc.

Russia has slashed gas deliveries to Europe since its February invasion of Ukraine, with Moscow blaming the cuts on Western sanctions imposed in response to the invasion, as the EU advances a plan to dump Russian energy across the bloc.

Since then, the EU has agreed on emergency laws to fill gas storage and windfall profit levies to raise money to help consumers with bills. 

Price cap critics
One energy analyst told Euronews that an energy price cap was an "unchartered territory" for the European Union. 

The EU's energy sector is largely liberalised and operates under the fundamental rules of supply and demand, making rolling back electricity prices complex in practice.

"My impression is that member states are looking at prices and quantities in isolation and that's difficult because of economics," said Elisabetta Cornago, a senior energy researcher at the Centre for European Reform.

"It's hard to picture such a level of market intervention This is uncharted territory."

The energy price cap would "quickly start costing billions" because it would force governments to continually subsidise the difference between the real market price and the artificially capped price, another expert said. 

"If you are successful and prices are low and you still get gas, consumers will increase their demand: low price means high demand. Especially now that winter is coming," said Bram Claeys, a senior advisor at the Regulatory Assistance Project. 

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California Net Zero Grid Investment will fuel electrification, renewable energy buildout, EV adoption, and grid modernization, boosting utilities, solar, and storage, while policy, IRA incentives, and transmission upgrades drive reliability and long-term rate base growth.

Key Points

Funding to electrify sectors and modernize the grid, scaling renewables, EVs, and storage to meet 2045 net zero goals.

✅ $370B over 22 years to meet 2045 net zero target

✅ Utilities lead gains via grid modernization and rate base growth

✅ EVs, solar, storage scale; IRA credits offset costs

$370 billion: That’s the investment Edison International CEO Pedro Pizarro says is needed for California’s power grid to meet the state’s “net zero” goal for CO2 emissions by 2045.

Getting there will require replacing fossil fuels with electricity in transportation, HVAC systems for buildings and industrial processes. Combined with population growth and data demand potentially augmented by artificial intelligence, that adds up to an 82 percent increase in electricity demand over 22 years, or 3 percent annually, and a potential looming shortage if buildout lags.

California’s plans also call for phasing out fossil fuel generation in the state, despite ongoing dependence on fossil power during peaks. And presumably, its last nuclear plant—PG&E Corp’s (PCG) Diablo Canyon—will be eventually be shuttered as well. So getting there also means trebling the state’s renewable energy generation and doubling usage of rooftop solar.

Assuming this investment is made, it’s relatively easy to put together a list of beneficiaries. Electric vehicles hit 20 percent market share in the state in Q2, even as pandemic-era demand shifts complicate load forecasting. And while competition from manufacturers has increased, leading manufacturers like Tesla TSLA -3% Inc (TSLA) can look forward to rising sales for some time—though that’s more than priced in for Elon Musk’s company at 65 times expected next 12 months earnings.

In the past year, California regulators have dialed back net metering through pricing changes affecting compensation, a subsidy previously paying rooftop solar owners premium prices for power sold back to the grid. That’s hit share prices of SunPower Corp (SPWR) and Sunrun Inc (RUN) quite hard, by further undermining business plans yet to demonstrate consistent profitability.

Nonetheless, these companies too can expect robust sales growth, as global prices for solar components drop and Inflation Reduction Act tax credits at least somewhat offset higher interest rates. And the combination of IRA tax credits and U.S. tariff walls will continue to boost sales at solar manufacturers like JinkoSolar Holding (JKS).

The surest, biggest beneficiaries of California’s drive to Net Zero are the utilities, reflecting broader utility trends in grid modernization, with investment increasing earnings and dividends. And as the state’s largest pure electric company, Edison has the clearest path.

Edison is currently requesting California regulators OK recovery over a 30-year period of $2.4 billion in losses related to 2017 wildfires. Assuming a amicable decision by early next year, management can then turn its attention to upgrading the grid. That investment is expected to generate long-term rate base growth of 8 percent at year, fueling 5 to 7 percent annual earnings growth through 2028 with commensurate dividend increases.

That’s a strong value proposition Edison stock, with trades at just 14 times expected next 12 months earnings. The yield of roughly 4.4 percent at current prices was increased 5.4 percent this year and is headed for a similar boost in December.

When California deregulated electricity in 1996, it required utilities with rare exceptions to divest their power generation. As a result, Edison’s growth opportunity is 100 percent upgrading its transmission and distribution grid. And its projects can typically be proposed, sited, permitted and built in less than a year, limiting risk of cost overruns to ensure regulatory approval and strong investment returns.

Edison’s investment plan is also pretty much immune to an unlikely backtracking on Net Zero goals by the state. And the company has a cost argument as well: Dr Pizarro cites U.S. Department of Energy and Department of Transportation data to project inflation-adjusted savings of 40 percent in California’s total customer energy bills from full electrification.

There’s even a reason to believe 40 percent savings will prove conservative. Mainly, gasoline currently accounts for a bit more than half energy expenditures. And after a more than 10-year global oil and gas investment drought, supplies are likely get tighter and prices possibly much higher in coming years.

Of course, those savings will only show up after significant investment is made. At this point, no major utility system in the world runs on 100 percent renewable energy, and California’s blackout politics underscore how reliability concerns shape deployment. And the magnitude of storage technology needed to overcome intermittency in solar and wind generation is not currently available let alone affordable, though both cost and efficiency are advancing.

Taking EVs from 20 to 100 percent of California’s new vehicle sales calls for a similar leap in efficiency and cost, even with generous federal and state subsidy. And while technology to fully electrify buildings and homes is there, economically retrofitting statewide is almost certainly going to be a slog.

At the end of the day, political will is likely to be as important as future technological advance for how much of Pizarro’s $370 billion actually gets spent. And the same will be true across the U.S., with state governments and regulators still by and large calling the shots for how electricity gets generated, transmitted and distributed—as well as who pays for it and how much, even as California’s exported policies influence Western markets.

Ironically, the one state where investors don’t need to worry about renewable energy’s prospects is one of the currently reddest politically. That’s Florida, where NextEra Energy NEE +2.8% (NEE) and other utilities can dramatically cut costs to customers and boost reliability by deploying solar and energy storage.

You won’t hear management asserting it can run the Sunshine State on 100 percent renewable energy, as utilities and regulators do in some of the bluer parts of the country. But by demonstrating the cost and reliability argument for solar deployment, NextEra is also making the case why its stock is America’s highest percentage bet on renewables’ growth—particularly at a time when all things energy are unfortunately becoming increasingly, intensely political.

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