Texas may have second chance for FutureGen funds

New York faces soaring energy bills as utilities seek record rate hikes, aging grid infrastructure demands upgrades, and federal renewable policies shift. Consumers struggle with affordability, late payments, and rising costs of delivery and energy supply across the state.

Why is New York Facing Soaring Energy Bills?

New York faces soaring energy bills because utilities are raising rates to cover the costs of grid upgrades, inflation, and policy-driven changes in energy supply.

✅ Utilities seek double-digit rate hikes across the state

✅ Aging infrastructure and storm repairs increase delivery costs

✅ Federal policies and gas dependence push energy prices higher

New Yorkers are bracing for another wave of energy bill increases as utilities seek record-high rate hikes and policy changes ripple through the state’s power system. Electric bills in New York are the highest they’ve been in over a decade, and more than a million households are now at least two months behind on payments, a sign of pandemic energy insecurity that continues to strain budgets, owing utilities nearly $2 billion.

Record numbers of households have had their electricity or gas shut off this year — more than 61,000 in May alone — despite pandemic shut-off suspensions that had offered temporary relief, the highest the Public Utility Law Project (PULP) has ever recorded. “This August was the group’s busiest month ever,” said Laurie Wheelock, PULP’s executive director, citing a surge in calls to its hotline. “The top concern on people’s minds: rate hikes.”

Utilities across the state are pushing for significant price increases, citing aging infrastructure, the need for climate adaptation, and higher operating costs, as California regulators face calls for action amid rising bills. “We used to see single-digit rate hikes and now we see double-digit rate hikes,” said Jessica Azulay, executive director of the Alliance for a Green Economy. “That’s a new normal that is unacceptable.”

Several utilities have requested delivery rate increases of 25 percent or more, with some proposals as high as 39 percent. Upstate utilities NYSEG and RG&E are seeking to raise electric and gas bills by about $33 a month, although regulators are unlikely to approve the full amount.

The companies argue the hikes are needed “to pay for rebuilding an aging grid and expanding its capacity to meet residents’ and businesses’ service demands,” including storm repairs. They also claim the plan would create more than 1,000 jobs.

James Denn, a spokesperson for the Public Service Commission (PSC), said much of the cost pressure stems from “inflation, higher interest rates, supply chain disruptions, the global push to upgrade electrical infrastructure, and, most recently, the rising risk and uncertainty from tariffs,” trends reflected in U.S. electricity price data over the past two years.

While some have blamed New York’s clean-energy transition, a PSC report found that state climate policies account for only 5 to 9.5 percent of the average household’s electric bill, or approximately $10 to $12 per month. The bulk of the increases still come from traditional spending on infrastructure, storm resilience, and system expansion.

On the supply side, costs are rising too. President Donald Trump’s recent policies have threatened renewable-energy investment nationwide, even as states’ renewable ambitions carry significant costs, potentially adding to New York’s woes. His July “megabill” phases out a 30 percent federal tax credit for solar and wind unless projects begin construction by mid-2026. Industry experts warn that the changes could make renewables “more expensive to build” and “increase reliance on gas.”

“It just means more expensive power,” said Marguerite Wells of the Alliance for Clean Energy New York.

The state estimates Trump’s policy shifts could cost New York $60 billion in lost renewable investment. With fewer clean-energy projects moving forward, gas — which already supplies roughly half of the state’s electricity — will remain the dominant source, tying energy prices to volatile global markets and the kinds of price drivers seen in California in recent years.

Governor Kathy Hochul has called affordability “our greatest short-term challenge,” while consumer advocates are demanding reforms to reduce utility profits and overhaul “rate design,” and to strengthen protections such as the emergency disconnection moratorium that applies during declared emergencies.

“There is definitely a groundswell of concern,” Wheelock said. “We go to meetings and we’re getting questions about rate design, like, ‘What is the revenue decoupling mechanism?’ Never had that question before.”

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Ontario Electricity Transition faces surging demand, GHG targets, and federal regulations, balancing natural gas, renewables, battery storage, and grid reliability while pursuing net-zero by 2035 and cost-effective decarbonization for industry, EVs, and growing populations.

Key Points

Ontario Electricity Transition is the province's shift to a reliable, low-GHG grid via renewables, storage, and policy.

✅ Demand up 75% by 2050; procurement adds 4,000 MW capacity.

✅ Gas use rises to 25% by 2030, challenging GHG goals.

✅ Tripling wind and solar with storage can cut costs and emissions.

Ontario's electricity sector stands at a pivotal crossroads. Once a leader in clean energy, the province now faces the dual challenge of meeting surging demand while adhering to stringent greenhouse gas (GHG) reduction targets. Recent developments, including the expansion of natural gas infrastructure and proposed federal regulations, have intensified debates about the future of Ontario's energy landscape, as this analysis explains in detail.

Rising Demand and the Need for Expansion

Ontario's electricity demand is projected to increase by 75% by 2050, equivalent to adding four and a half cities the size of Toronto to the grid. This surge is driven by factors such as industrial electrification, population growth, and the transition to electric vehicles. In response, as Ontario confronts a looming shortfall in the coming years, the provincial government has initiated its most ambitious energy procurement plan to date, aiming to secure an additional 4,000 megawatts of capacity by 2030. This includes investments in battery storage and natural gas generation to ensure grid reliability during peak demand periods.

The Role of Natural Gas: A Controversial Bridge

Natural gas has become a cornerstone of Ontario's strategy to meet immediate energy needs. However, this reliance comes with environmental costs. The Independent Electricity System Operator (IESO) projects that by 2030, natural gas will account for 25% of Ontario's electricity supply, up from 4% in 2017. This shift raises concerns about the province's ability to meet its GHG reduction targets and to embrace clean power in practice. 

The expansion of gas-fired plants, including broader plans for new gas capacity, such as the Portlands Energy Centre in Toronto, has sparked public outcry. Environmental groups argue that these expansions could undermine local emissions reduction goals and exacerbate health issues related to air quality. For instance, emissions from the Portlands plant have surged from 188,000 tonnes in 2017 to over 600,000 tonnes in 2021, with projections indicating a potential increase to 1.65 million tonnes if the expansion proceeds as planned. 

Federal Regulations and Economic Implications

The federal government's proposed clean electricity regulations aim to achieve a net-zero electricity sector by 2035. However, Ontario's government has expressed concerns that these regulations could impose significant financial burdens. An analysis by the IESO suggests that complying with the new rules would require doubling the province's electricity generation capacity, potentially adding $35 billion in costs by 2050, while other estimates suggest that greening Ontario's grid could cost $400 billion over time. This could result in higher residential electricity bills, ranging from $132 to $168 annually starting in 2033.

Pathways to a Sustainable Future

Experts advocate for a diversified approach to decarbonization that balances environmental goals with economic feasibility. Investments in renewable energy sources, such as new wind and solar resources, along with advancements in energy storage technologies, are seen as critical components of a sustainable energy strategy. Additionally, implementing energy efficiency measures and modernizing grid infrastructure can enhance system resilience and reduce emissions. 

The Ontario Clean Air Alliance proposes phasing out gas power by 2035 through a combination of tripling wind and solar capacity and investing in energy efficiency and storage solutions. This approach not only aims to reduce emissions but also offers potential cost savings compared to continued reliance on gas-fired generation. 

Ontario's journey toward a decarbonized electricity grid is fraught with challenges, including balancing reliability, clean, affordable electricity, and environmental sustainability. While natural gas currently plays a significant role in meeting the province's energy needs, its long-term viability as a bridge fuel remains contentious. The path forward will require careful consideration of technological innovations, regulatory frameworks, and public engagement to ensure a clean, reliable, and economically viable energy future for all Ontarians.

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Hybrid Electric Ships leverage marine batteries, LNG engines, and clean propulsion to cut emissions in shipping. From ferries to cargo vessels, electrification and sustainability meet IMO regulations, Corvus Energy systems, and dockside fast charging.

Key Points

Hybrid electric ships use batteries with diesel or LNG engines to cut fuel and emissions and meet stricter IMO rules.

✅ LNG or diesel gensets recharge marine battery packs.

✅ Cuts CO2, NOx, and particulate emissions in port and at sea.

✅ Complies with IMO standards; enables quiet, efficient operations.

The river is running strong and currents are swirling as the 150-metre-long Seaspan Reliant slides gently into place against its steel loading ramp on the shores of B.C.'s silty Fraser River.

The crew hustles to tie up the ship, and then begins offloading dozens of transport trucks that have been brought over from Vancouver Island.

While it looks like many vessels working the B.C. coast, below decks, the ship is very different. The Reliant is a hybrid, partly powered by electricity, and joins BC Ferries' hybrid ships in the region, the seagoing equivalent of a Toyota Prius.

Down below decks, Sean Puchalski walks past a whirring internal combustion motor that can run on either diesel or natural gas. He opens the door to a gleaming white room full of electrical cables and equipment racks along the walls.

"As with many modes of transportation, we're seeing electrification, from electric planes to ferries," said Puchalski, who works with Corvus Energy, a Richmond, B.C. company that builds large battery systems for the marine industry.

In this case, the batteries are recharged by large engines burning natural gas.

"It's definitely the way of the future," said Puchalski.

The 10-year-old company's battery system is now in use on 200 vessels around the world. Business has spiked recently, driven by the need to reduce emissions, and by landmark projects such as battery-electric high-speed ferries taking shape in the U.S.

"When you're building a new vessel, you want it to last for, say, 30 years. You don't want to adopt a technology that's on the margins in terms of obsolescence," said Puchalski. "You want to build it to be future-proof."

Dirty ships

For years, the shipping industry has been criticized for being slow to clean up its act. Most ships use heavy fuel oil, a cheap, viscous form of petroleum that produces immense exhaust. According to the European Commission, shipping currently pumps out about 940 million tonnes of CO2 each year, nearly three per cent of the global total.

That share is expected to climb even higher as other sectors reduce emissions.

When it comes to electric ships, Scandinavia is leading the world. Several of the region's car and passenger ferries are completely battery powered — recharged at the dock by relatively clean hydro power, and projects such as Kootenay Lake's electric-ready ferry show similar progress in Canada.

Tougher regulations and retailer pressure

The push for cleaner alternatives is being partly driven by worldwide regulations, with international shipping regulators bringing in tougher emission standards after a decade of talk and study, while financing initiatives are helping B.C. electric ferries scale up.

At the same time, pressure is building from customers, such as Mountain Equipment Co-op, which closely tracks its environmental footprint. Kevin Lee, who heads MEC's supply chain, said large companies are realizing they are accountable for their contributions to climate change, from the factory to the retail floor.

"You're hearing more companies build it into their DNA in terms of how they do business, and that's cool to see," said Lee. "It's not just MEC anymore trying to do this, there's a lot more partners out there."

In the global race to cut emissions, all kinds of options are on the table for ships, including giant kites being tested to harvest wind power at sea, and ports piloting hydrogen-powered cranes to cut dockside emissions.

Modern versions of sailing ships are also being examined to haul cargo with minimal fuel consumption.

But in practical terms, hybrids and, in the future, pure electrics are likely to play a larger role in keeping the propellers turning along Canada's coast, with neighboring fleets like Washington State Ferries' upgrade underscoring the shift.

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Sidi Mansour Wind Farm Tunisia will deliver 30 MW as an IPP, backed by UPC Renewables and CFM, under a STEG PPA, supporting 2030 renewable energy targets, grid connection, job creation, and CO2 emissions reduction.

Key Points

A 30 MW wind IPP by UPC and CFM in Sidi Mansour, supplying STEG and advancing Tunisia's 2030 renewable target.

✅ 30 MW capacity under STEG PPA, first wind IPP in Tunisia

✅ Co-developed by UPC Renewables and Climate Fund Managers

✅ Cuts CO2 by up to 56,645 t and creates about 100 jobs

UPC Renewables (UPC) and the Climate Fund Managers (CFM) have partnered to develop a 30 megawatt wind farm in Sidi Mansour, Tunisia, which, amid regional wind expansion efforts, will help the country meet its 30% renewable energy target by 2030.

Tunisia announced the launch of its solar energy plan in 2016, with projects like the 10 MW Tunisian solar park aiming to increase the role of renewables in its electricity generation mix ten-fold to 30%,

This Sidi Mansour Project will help Tunisia meet its goals, reducing its reliance on imported fossil fuels and, mirroring 90 MW Spanish wind build milestones, demonstrating to the world that it is serious about further development of renewable energy investment.

“Chams Enfidha”, the first solar energy station in Tunisia with a capacity of 1 megawatt and located in the Enfidha region. (Ministry of Energy, Mines and Energy Transition Facebook page)

This project will also be among the country’s first Independent Power Producers (IPP). CFM is acting as sponsor, financial adviser and co-developer on the project, in a landscape shaped by IRENA-ADFD funding in developing countries, while UPC will lead the development with its local team. The team will be in charge of permitting, grid connection, land securitisation, assessment of wind resources, contract procurement and engineering.

UPC was selected under the “Authorisation Scheme” tender for the project in 2016, similar to utility-scale developments like a 450 MW U.S. wind farm, and promptly signed a power purchase agreement with Société Tunisienne Electricité et du Gaz (STEG).

Brian Caffyn, chairman of UPC Group, said: “We can start the construction of the Sidi Mansour wind farm in 2020, helping stimulate the Tunisian economy, create local jobs and a social plan for local communities while respecting international environmental protection guidelines.”

Sebastian Surie, CFM’s regional head of Africa, added: “CFM is thrilled to partner with a leading wind developer in the Sidi Mansour Wind Project to assist Tunisia in meeting its renewable energy goals. As potentially the first Wind IPP in Tunisia, this Project will be a testament to how CI1’s full life-cycle financing solution can unlock investment in renewable energy in new markets, as seen in an Irish offshore wind project globally.”

The project will not only provide electricity, but also reduce CO2 emissions by up to 56,645 tonnes and create some 100 new jobs.

Wind turbine in El Haouaria, Tunisia, highlighting advances such as a huge offshore wind turbine that can power 18,000 homes. (Reuters)

Tunisia’s first power station, “Chams Enfidha,” inaugurated at the beginning of July, has a capacity of one megawatt, with an estimated cost of 3.3 million dinars ($1.18 million). The state invested 2.3 million dinars into the project ($820,000), with the remaining 1 million dinars ($360,000) provided by a private investor.

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Texas Electricity Market Bailout proposes securitization bonds and ERCOT-backed fees after Winter Storm Uri, spreading costs via ratepayer charges on power bills to stabilize generators, co-ops, and retailers and avert bankruptcies and investor flight.

Key Points

State plan to securitize storm debts via ERCOT fees, adding bill charges to stabilize Texas power firms.

✅ Securitization bonds finance unpaid ancillary services and energy costs

✅ ERCOT fee spreads Winter Storm Uri debts across ratepayers statewide

✅ Aims to prevent bankruptcies, preserve grid reliability, reassure investors

An approximately $2.5 billion plan to bail out Texas’ distressed electricity market from the financial crisis caused by Winter Storm Uri in February has been approved by the Texas House.

The legislation would impose a fee — likely for the next decade or longer — on electricity companies, which would then get passed on to residential and business customers in their power bills, even as some utilities waived certain fees earlier in the crisis.

House lawmakers sent House Bill 4492 to the Senate on Thursday after a 129-15 vote. A similar bill is advancing in the Senate.

Some of the state’s electricity providers and generators are financially underwater in the aftermath of the February power outages, which left millions without power and killed more than 100 people. Electricity companies had to buy whatever power was available at the maximum rate allowed by Texas regulations — $9,000 per megawatt hour — during the week of the storm (the average price for power in 2020 was $22 per megawatt hour). Natural gas fuel prices also spiked more than 700% during the storm.

Several companies are nearing default on their bills to the Electric Reliability Council of Texas, which manages the Texas power grid that covers most of the state and facilitates financial transactions in it.

Rural electric cooperatives were especially hard hit; Brazos Electric Power Cooperative, which supplies electricity to 1.5 million customers, filed for bankruptcy citing a $1.8 billion debt to ERCOT.

State Rep. Chris Paddie, R-Marshall, the bill’s author, said a second bailout bill will be necessary during the current legislative session for severely distressed electric cooperatives.

“This is a financial crisis, and it’s a big one,” James Schaefer, a senior managing director at Guggenheim Partners, an investment bank, told lawmakers at a House State Affairs Committee hearing in early April. He warned that more bankruptcies would cause higher costs to customers and hurt the state’s image in the eyes of investors.

“You’ve got to free the system,” Schaefer said. “It’s horrible that a bunch of folks have to pay, but it’s a system-wide failure. If you let a bunch of folks crash, it’s not a good look for your state.”

If approved by the Senate and Gov. Greg Abbott, a newly-created Texas Electric Securitization Corp. would use the money raised from the fees for bonds to help pay the companies’ debts, including costs for ancillary services, a financial product that helps ensure power is continuously generated and improve electricity reliability across the grid.

Paddie told his colleagues Wednesday that he could not yet estimate how long the new fee would be imposed, but during committee hearings lawmakers estimated it’s likely to be at least a decade. Several other bills to spread out the costs of the winter storm and consider market reforms are also moving through the Legislature.

ERCOT’s independent market monitor recommended in March that energy sold during that period be repriced at a lower rate, which would have allowed ERCOT to claw back about $4.2 billion in payments to power generators, but the Public Utility Commission declined to do so, even as a court ruling on plant obligations in emergencies drew scrutiny among market participants.

Instead, lawmakers are pushing for bailouts that several energy experts have said is needed, both to ensure distressed companies don’t pass enormous costs on to their customers and to prevent electricity investors and companies from leaving the state if it’s viewed as too risky to continue doing business.

Becky Klein, an energy consultant in Austin and former chair of the Public Utility Commission who played a key role in de-regulating Texas’ electricity market two decades ago, said during a retail electricity panel hosted by Integrate that legislation is necessary to provide “some kind of backstop during a crazy market crisis like this to show the financial market that we’re willing to provide some relief.”

Still, some lawmakers are concerned with how they will win public support, including potential voter-approved funding measures, for bills to bail out the state’s electricity market.

“I have to go back to Laredo and say, ‘I know you didn’t have electricity for several days, but now I’m going to make you pay a little more for the next 20 years,’” state Rep. Richard Peña Raymond, D-Laredo, said during an early April discussion on the plan in the House State Affairs Committee. He said he voted for the bill because it’s in the best interest of the state.

Paddie, during the same committee hearing, acknowledged that “none of us want to increase fees or taxes.” However, he said, “We have to deal with the reality set before us.”

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IRENA Climate Investment Platform accelerates renewable energy financing through de-risking, bankable projects, and public-private partnerships, advancing Paris Agreement goals via grid integration, microgrids, and decarbonization while expanding access, jobs, and sustainable economic growth.

Key Points

A global platform linking bankable renewable projects with finance, derisking and partners to scale decarbonization.

✅ Connects developers with banks, funds, and insurers

✅ Promotes de-risking via policy, PPAs, and legal frameworks

✅ Targets Paris goals with grid, microgrids, and off-grid access

The heads-of-state and energy ministers from more than 120 nations just met in Abu Dhabi and they had one thing in common: a passion to increase the use of renewable energy to reduce the threat from global warming — one that will also boost economic output and spread prosperity. Access to finance, though, is critical to this goal. 

Indeed, the central message to emerge from the conference hosted by the International Renewable Energy Agency (IRENA) this week in the United Arab Emirates is that a global energy transition is underway that has the potential to revitalize economies and to lift people out of poverty. But such a conversion requires international cooperation and a common desire to address the climate cause. 

“The renewable energy sector created jobs employing 11 million people in 2019 and provided off-grid solutions, having helped bring the number of people with no access to electricity to under 1 billion,” the current president of the UN General Assembly Tiijani Muhammad-Bande of Nigeria told the audience. 

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While renewables are improving energy access and reducing inequities, they also have the potential to curb CO2 emissions globally. The goal is to shrink them by 45% by 2030 and 90% by 2050, with Canada's net-zero race highlighting the role of renewable energy in achieving those targets. Getting there, though, requires progressive government policies that will help to attract financing. 

According to IRENA, investment in the clean energy sector is now at $330 billion a year. But if the 2050 goals are to be reached, those levels must nearly double to $750 billion annually. The green energy sector does not want to compete with the oil and gas sectors but rather, it is seeking to diversify fuel sources — a strategy that could help make electricity systems more resilient to climate risks. To hit the Paris agreement’s targets, it says that renewable energy deployment must increase by a factor of six.  

To that end, IRENA is forming a “climate investment platform” that will bring ideas to the table and then introduce prospective parties. It will focus on those projects that it believes are “bankable.”

It’s about helping project developers find banks, private companies and pension funds to finance their worthy projects, IRENA Director General Francesco La Camera said in response to this reporter’s question. Moreover, he said that the platform would work to ensure there is a sound legal structure and that there is legislative support to “de-risk” the investments. 

“Overcoming investment needs for energy transformation infrastructure is one of the most notable barriers to the achievement of national goals,” La Camera says. “Therefore, the provision of capital to support the adoption of renewable energy is key to low-carbon sustainable economic development and plays a central role in bringing about positive social outcomes.”

If the monies are to flow into new projects, governments have to create an environment where innovation is to be rewarded: tax incentives for renewables along with the design and implementation of transition plans. The aim is to scale up which in turn, leads to new jobs and greater economic productivity — a payback of three-to-seven times the initial investment.  

The path of least resistance, for now, is off-grid green energy solutions, or providing electricity to rural areas by installing solar panels that may connect to localized microgrids. Africa, which has a half-billion people without reliable electricity, would benefit. However, “If you want to go to scale and have bankable projects, you have to be connected to the grid,” Moira Wahba, with the UN Development Program, told this writer. “That requires large capital and private enterprise.”

Public policy must thus work to create the knowledge base and the advocacy to help de-risk the investments. Government’s role is to reassure investors that they will not be subject to arbitrary laws or the crony allocation of contracts. Risk takers know there are no guarantees. But they want to compete on a level playing. 

Analyzing Risk Profiles

He is speaking during the World Energy Future Summit. 
Sultan Al Jabber, chief executive of Abu Dhabi’s national oil company, Adnoc, who is also the former ... [+]ABU DHABI SUSTAINABILITY WEEK
How do foreign investors square the role of utilities that are considered safe and sound with their potential expansion into new fields such as investing in carbon-free electricity and in new places? The elimination of risk is not possible, says Mohamed Jameel Al Ramahi, chief executive officer of UAE-based Masdar. But the need to decarbonize is paramount. The head of the renewable energy company says that every jurisdiction has its own risk profile but that each one must be fully transparent while also properly structuring their policies and regulations. And there needs to be insurance for political risks. 

The United States and China, for example, are already “de-risked,” because they are deploying “gigawatts of renewables,” he told this writer. “When we talk about doubling the amount of needed investment, we have to take into account the risk profile of the whole world. If it is a high-risk jurisdiction, it will be difficult to bring in foreign capital.” 

The most compelling factor that will drive investment is whether the global community can comply with the Paris agreement, says Dr. Thani Ahmed Al Zeyoudi, Minister of the Ministry of Climate Change and the Environment for the United Arab Emirates. The goal is to limit increases to 2 degrees Celsius by mid-century, with the understanding that the UN’s latest climate report emphasizes that positive results are urgently needed. 

One of the most effective mechanisms is the public-private model. Governments, for example, are signing long-term power purchase agreements, giving project developers the necessary income they need to operate, and in the EU plans to double electricity use by 2050 are reinforcing these commitments. They can also provide grants and bring in international partners such as the World Bank. 

“We are seeing the impact of climate change with the various extreme events: the Australian fires, the cyclones and the droughts,” the minister told reporters. “We can no longer pass this to future generations to deal with.” 

The United Arab Emirates is not just talking about it, adds Sultan Al Jabber, chief executive of Abu Dhabi’s national oil company, Adnoc, who is also the former head of subsidiary Masdar. It is acting now, and across Europe Big Oil is turning electric as traditional players pivot too. His comments came during Abu Dhabi’s Sustainability Week at the World Future Energy Summit. The country is “walking the walk” by investing in renewable projects around the globe and it is growing its own green energy portfolio. Addressing climate change is “right” while it is also making “perfect economic sense.” 

The green energy transition has taken root in advanced economies while it is making inroads in the developing world — a movement that has the twin effect of addressing climate change and creating economic opportunities, and one that aligns with calls to transform into a sustainable electric planet for long-term prosperity. But private investment must double, which requires proactive governments to limit unnecessary risks and to craft the incentives to attract risk-takers. 

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