What is the true cost of power?

By Wall Street Journal


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The debate in Washington D.C. over supporting clean energy is growing more partisan and acrimonious with each passing day. The debate centers on the cost of renewable energy, which critics charge is still more expensive than traditional energy sources despite decades of research and tens of billions of dollars in federal support.

But as the wrangling heats up in Washington, it’s worth remembering that the main reason clean energy is more expensive than dirty old energy is because the electricity game is not played on a level field. Critics of government support for clean energy decry “market manipulation,” when in reality what’s manipulated is the current state of affairs.

A case in point from today’s L.A. Times, on the “promise and peril” of President Obama’s clean-energy push:

“Success hinges on whether Obama can nurture alternative energy sources to the point where they cost no more than fossil fuels, an effort that most experts say will require heavy doses of brainpower, cash and market manipulation…. By the end of this year, the Energy Department’s spending on 35 years of clean-energy research will exceed the total inflation-adjusted cost of the Apollo program, which sent Americans to the moon, and the Manhattan Project, which developed the nuclear bomb — an estimated $117 billion combined…. That research, economists say, has made wind, solar and other alternative sources of energy cheaper. But fossil fuels remain cheaper yet.”

Simply put, fossil fuels remain cheaper because not all their costs are tallied — and that means pollution. Traditional power plants spew particulates into the air as well as carbon dioxide, but historically the cost of that pollution was not included in the pricetag for, say, operating a coal-fired plant.

When those costs are included, dirty old coal suddenly gets a lot more expensive. Even the most modern coal plants, fitted with all kinds of gizmos to scrub the air of dirty emissions, still cost more. In comparison, zero-emissions energy like wind power and solar power donÂ’t carry any significant hidden costs.

European researchers who have spent years exploring those so-called external costs figure regular old coal plants actually cost an additional 9-17 cents per kilowatt hour (7-13 European cents) — that’s an extra two or three times the average cost of electricity in the U.S. Even the cleanest of coal plants still costs an extra 2 cents per kilowatt hour.

And that, coincidentally, is the amount of subsidy support that wind power gets from the federal government to help close the cost gap. “When the external cost resulting from local and global impacts are included, the electric power system changes become more radical,” the European researchers concluded.

Bridging that cost gap is the whole thinking behind a cap-and-trade scheme that would put a pricetag on carbon emissions, which would make a whole suite of energy alternatives — from nuclear power to “clean coal” — cost competitive, depending on just how pricey carbon emissions really are.

And that is another reason that the quickest — if not the politically easiest — path to boosting clean energy will come through a national cap-and-trade scheme, rather than ramped-up federal “brainpower” or another Manhattan project.

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Russian Missiles and Drones Target Kyiv's Power Grid in Five-Hour Assault

Assault on Kyiv's Power Grid intensifies as missiles and drones strike critical energy infrastructure. Ukraine's air defenses intercept threats, yet blackouts, heating risks, and civilian systems damage mount amid escalating winter conditions.

 

Key Points

Missile and drone strikes on Kyiv's power grid to cripple infrastructure, cause blackouts, and pressure civilians.

✅ Targets power plants, substations, and transmission lines

✅ Air defenses intercept many missiles and drones

✅ Blackouts jeopardize heating, safety, and communications

 

In a troubling escalation of hostilities, Russian forces launched a relentless five-hour assault on Kyiv, employing missiles and drones to target critical infrastructure, particularly Ukraine's power grid. This attack not only highlights the ongoing conflict between Russia and Ukraine but also underscores the vulnerability of essential services, as seen in power outages in western Ukraine in recent weeks, in the face of military aggression.

The Nature of the Attack

The assault began early in the morning and continued for several hours, with air raid sirens ringing out across the capital as residents were urged to seek shelter. Eyewitnesses reported a barrage of missile strikes, along with the ominous whir of drones overhead. The Ukrainian military responded with its air defense systems, successfully intercepting a number of the incoming threats, but several strikes still managed to penetrate the defenses.

One of the most alarming aspects of this attack was its focus on Ukraine's energy infrastructure. Critical power facilities were hit, resulting in significant disruptions to electricity supply across Kyiv and surrounding regions. The attacks not only caused immediate outages but also threatened to complicate efforts to keep the lights on in the aftermath.

Impacts on Civilians and Infrastructure

The consequences of the missile and drone strikes were felt immediately by residents. Many found themselves without power, leading to disruptions in heating, lighting, and communications. With winter approaching, the implications of such outages become even more serious, as keeping the lights on this winter becomes harder while temperatures drop and the demand for heating increases.

Emergency services were quickly mobilized to assess the damage and begin repairs, but the scale of the attack posed significant challenges. In addition to the direct damage to power facilities, the strikes created a climate of fear and uncertainty among civilians, even as many explore new energy solutions to endure blackouts.

Strategic Objectives Behind the Assault

Military analysts suggest that targeting Ukraine's energy infrastructure is a calculated strategy by Russian forces. By crippling the power grid, the intention may be to sow chaos and undermine public morale, forcing the government to divert resources to emergency responses rather than frontline defenses. This tactic has been employed previously, with significant ramifications for civilian life and national stability.

Moreover, as winter approaches, the vulnerability of Ukraine’s energy systems becomes even more pronounced, with analysts warning that winter looms over the battlefront for civilians and troops alike. With many civilians relying on electric heating and other essential services, an attack on the power grid can have devastating effects on public health and safety. The psychological impact of such assaults can also contribute to a sense of hopelessness among the population, potentially influencing public sentiment regarding the war.

International Response and Solidarity

The international community has responded with concern to the recent escalation in attacks. Ukrainian officials have called for increased military support and defensive measures to protect critical infrastructure from future assaults, amid policy shifts such as the U.S. ending support for grid restoration that complicate planning. Many countries have expressed solidarity with Ukraine, reiterating their commitment to support the nation as it navigates the complexities of this ongoing conflict.

In addition to military assistance, humanitarian aid is also critical, and instances of solidarity such as Ukraine helping Spain amid blackouts demonstrate shared resilience. As the situation continues to evolve, many organizations are working to provide relief to those affected by the attacks, offering resources such as food, shelter, and medical assistance. The focus remains not only on immediate recovery efforts but also on long-term strategies to bolster Ukraine’s resilience against future attacks.

 

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N.L. lags behind Canada in energy efficiency, but there's a silver lining to the stats

Newfoundland and Labrador Energy Efficiency faces low rankings yet signs of progress: heat pumps, EV charging networks, stricter building codes, electrification to tap Muskrat Falls power and cut greenhouse gas emissions and energy poverty.

 

Key Points

Policies and programs improving N.L.'s energy use via electrification, EVs, heat pumps, and stronger building codes.

✅ Ranks last provincially but showing policy momentum

✅ Heat pump grants and EV charging network underway

✅ Stronger building codes and electrification can cut emissions

 

Ah, another day, another depressing study that places Newfoundland and Labrador as lagging behind the rest of Canada.

We've been in this place before — least-fit kids, lowest birthrate — and now we can add a new dubious distinction to the pile: a ranking of the provinces according to energy efficiency placed Newfoundland and Labrador last.

Efficiency Canada released its first-ever provincial scorecard Nov. 20, comparing energy efficiency policies among the provinces. With energy efficiency a key part of reducing greenhouse gas emissions, Newfoundland and Labrador sat in 10th place, noted for its lack of policies on everything from promoting EV uptake in Atlantic Canada to improving efficient construction codes.

But before you click away to a happier story (about, say, a feline Instagram superstar) one of the scorecard's authors says there's a silver lining to the statistics.

"It's not that Newfoundland and Labrador is doing anything badly; it's just that it could do more," said Brendan Haley, the policy director at Efficiency Canada, a new think tank based at Carleton University.

"There's just a general lack of attention to implementing efficiency policies relative to other jurisdictions, including New Brunswick's EV rebate programs on transportation."

Looking at the scorecard and comparing N.L. with British Columbia, which snagged the No. 1 spot, isn't a great look. B.C. scored 56 points out of a possible 100, while N.L. got just 15.

Haley pointed out that B.C.'s provincial government is charting progress toward 2032, when all new builds will have to be net-zero energy ready; that is, buildings that can produce as much clean energy as they consume.  

While it might not be feasible to emulate that to a T here, Haley said the province could be mandating better energy efficiency standards for new, large building projects, and, at the same time, promote electrification of such projects as a way to soak up some of that surplus Muskrat Falls electricity.

Staring down Muskrat's 'extraordinary' pressure on N.L. electricity rates

It's impossible to talk about energy efficiency in N.L. without considering that dam dilemma. As Muskrat Falls comes online, likely at the end of 2020, customer power rates are set to rise in order to pay for it, and the province is still trying to figure out the headache that is rate mitigation.

"There is a strategic choice to be made in Newfoundland and Labrador," Haley told CBC Radio's On The Go.

While having more customers using Muskrat Falls power can help with rate mitigation, including through initiatives like N.L.'s EV push to grow demand, Haley noted simply using its excess electricity for the sake of it isn't a great goal.

"That should not be an excuse, I think, to almost have a policy of wasting energy on purpose, or saying that we don't need programs that help save electricity anymore," he said.

Energy poverty
Lots of N.L. homeowners are currently feeling a chill from the spectre of rising electricity rates.

Of course, that draft could be coming from a poorly insulated and heated house, as Efficiency Canada noted 38 per cent of all households in N.L. live in what it calls "energy poverty," where they spend more than six per cent of their after-tax income on energy — that's the second highest such rate in the country.

That poverty speaks for a need for N.L.to boost efficiency incentives for vulnerable populations, although Haley noted the government is making progress. The province recently expanded its home energy savings program, doubling in the last budget year to $2 million, which gives grants to low income households for upgrades like insulation.

Can you guess what products are selling like hotcakes as Muskrat Falls looms? Heat pumps

And since Efficiency Canada compiled its scorecard, the province has introduced a $1-million heat pump program, in which 1,000 homeowners could receive $1,000 toward the purchase of a heat pump. 

That program began accepting applications Oct. 15, and one month in, has had 682 people apply, according to the Department of Municipal Affairs and Environment, along with thousands of inquiries.

Heat pump popularity
Even without that program, heat pump sales have skyrocketed in the province since 2017. That popularity doesn't come as much of a surprise to Darren Brake, the president of KSAB Construction in Corner Brook.

With more than two decades in the home building business, he's been seeing consumer demand for home energy efficiency rise to the point where a year ago, his company transitioned into only building third-party certified energy efficient homes.

"Everybody's really concerned about the escalating power costs and energy costs, I assume because of Muskrat Falls," he said.

"It's evolving now, as we speak. Everybody is all about that monthly payment."

Brake uses spray foam installation in every house he builds, to seal up any potential leaks. Without sealing the building envelope, he says, a heat pump is far less efficient. (Lindsay Bird/CBC)
And in the weakest housing market in the province in half a century, Brake has been steadily moving his, building and selling seven in the last year.

Brake's houses include heat pumps, but he said the real savings come from their heavily insulated walls, roof and floors. Homeowners looking to install a heat pump in their leaky old house, he said, won't see lower power bills in quite the same way.

"They are energy efficient, but it's more about the building envelope to make a home efficient and easy to heat. You can put a heat pump in an older home that leaks a lot of air, and you won't get the same results," he said.

Charging network coming
The other big piece to the efficiency puzzle — in the scorecard's eyes — is electric vehicles. Those could, again, use some of that Muskrat Falls energy, as well as curtail gas guzzling, but Efficiency Canada pointed to a lack of policies and incentives surrounding electrifying transportation, such as Nova Scotia's vehicle-to-grid pilot that illustrates innovation elsewhere.

Unlike Quebec or B.C., the province doesn't offer a rebate for buying EVs, even as N.W.T. encourages EVs through targeted measures, and while electric vehicles got loud applause at the House of Assembly last week, it was absent of any policy or announcement beyond the province unveiling a EV licence plate design to be used in the near future.

Electric-vehicle charging network planned for N.L. in 2020

But since the scorecard was tallied, NL Hydro has unveiled plans for a Level 3 charging network for EVs across the island, dependent on funding, with N.L.'s first fast-charging network seen as just the beginning for local drivers.

NL Hydro says while its request for proposals for an island-wide charging network closed earlier in November, there is no progress update yet, even as N.B.'s fast-charging rollout advances along the Trans-Canada. (Credit: iStock/Getty Images)
That cash appears to still be in limbo, as "we are still progressing through the funding process," said an NL Hydro spokesperson in an email, with no "additional details to release at this time."

Still, the promise of a charging network — plus the swift uptake on the heat pump program — could boost N.L.'s energy efficiency scorecard next time it's tallied, said Haley.

"It is encouraging to see the province moving forward on smart and efficient electrification," he said.

 

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Restrict price charged for gas and electricity - British MPs

UK Energy Price Cap aims to protect consumers on gas and electricity bills, tackling Big Six overcharging on default and standard variable tariffs, with Ofgem and MPs pushing urgent reforms to the broken market.

 

Key Points

A temporary absolute limit on default energy tariffs to shield consumers from overcharging on gas and electricity bills.

✅ Caps standard variable and default tariffs to protect loyalty.

✅ Targets Big Six pricing; oversight by Ofgem and BEIS MPs.

✅ Aims for winter protection while maintaining competition.

 

MPs are calling for a cap on the price of gas and electricity, with questions over the expected cost of a UK price cap amid fears consumers are being ripped off.

The Business, Energy and Industrial Strategy (BEIS) Select Committee says the Big Six energy companies have been overcharging for years.

MPs on the committee backed plans for a temporary absolute cap, noting debates over EU gas price cap strategies to fix what they called a "broken" energy market.

Labour's Rachel Reeves, who chairs the committee, said: "The energy market is broken. Energy is an essential good and yet millions of customers are ripped off for staying loyal to their energy provider.

"An energy price cap is now necessary and the Government must act urgently to ensure it is in place to protect customers next winter.

"The Big Six energy companies might whine and wail about the introduction of a price cap but they've been overcharging their customers on default and SVTs (standard variable tariffs) for years and their recent feeble efforts to move consumers off these tariffs has only served to highlight the need for this intervention."

The Committee also criticised Ofgem for failing to protect customers, especially the most vulnerable.

Draft legislation for an absolute cap on energy tariffs was published by the Government last year, and later developments like the Energy Security Bill have kept reform on the agenda.

But Business Secretary Greg Clark refused to guarantee that the flagship plans would be in place by next winter, despite warnings about high winter energy costs for households.

Committee members said there was a "clear lack of will" on the part of the Big Six to do what was necessary, including exploring decoupling gas and electricity prices, to deal with pricing problems.

A report from the committee found that customers are paying £1.4bn a year more than they should be under the current system.

Around 12 million households are stuck on poor-value tariffs, according to the report.

National assistance charity Citizens Advice said "loyal and vulnerable" customers had been "ripped off" for too long.

Chief executive Gillian Guy said: "An absolute cap, as recommended by the committee, is crucial to securing protection for the largest number of customers while continuing to provide competition in the market. This should apply to all default tariffs."

 

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Zapping elderly brains with electricity improves short-term memory — for almost an hour

Transcranial electrical stimulation synchronizes brain waves to bolster working memory, aligning neural oscillations across the prefrontal and temporal cortex. This noninvasive brain stimulation may counter cognitive aging by restoring network coupling and improving short-term recall.

 

Key Points

Transcranial electrical stimulation applies scalp currents to synchronize brain waves, briefly enhancing working memory.

✅ Synchronizes prefrontal-temporal networks to restore coupling

✅ Noninvasive tES/tACS protocols show rapid, reversible gains

✅ Effects lasted under an hour; durability remains to be tested

 

To read this sentence, you hold the words in your mind for a few seconds until you reach the period. As you do, neurons in your brain fire in coordinated bursts, generating electrical waves that let you hold information for as long as it is needed, much as novel devices can generate electricity from falling snow under specific conditions. But as we age, these brain waves start to get out of sync, causing short-term memory to falter. A new study finds that jolting specific brain areas with a periodic burst of electricity might reverse the deficit—temporarily, at least.

The work makes “a strong case” for the idea that out-of-sync brain waves in specific regions can drive cognitive aging, says Vincent Clark, a neuroscientist at the University of New Mexico in Albuquerque, who was not involved in the research. He adds that the brain stimulation approach in the study may result in a new electrical therapy for age-related deficits in working memory.

Working memory is “the sketchpad of the mind,” allowing us to hold information in our minds over a period of seconds. This short-term memory is critical to accomplishing everyday tasks such as planning and counting, says Robert Reinhart, a neuroscientist at Boston University who led the study. Scientists think that when we use this type of memory, millions of neurons in different brain areas communicate through coupled bursts of activity, a form of electrical conduction that coordinates timing across networks. “Cells that fire together, wire together,” Reinhart says.

But despite its critical role, working memory is a fragile cognitive resource that declines with age, Reinhart says. Previous studies had suggested that reduced working-memory performance in the elderly is linked to uncoupled activity in different brain areas. So Reinhart and his team set out to test whether recoupling brain waves in older adults could boost the brain’s ability to temporarily store information, a systems-level coordination challenge akin to efforts to use AI for energy savings on modern power grids.

To do so, the researchers used jolts of weak electrical current to synchronize waves in the prefrontal and temporal cortex—two brain areas critical for cognition, a targeted approach not unlike how grids use batteries to stabilize power during strain—and applied the current to the scalps of 42 healthy people in their 60s and 70s who showed no signs of decline in mental ability. Before their brains were zapped, participants looked at a series of images: an everyday object, followed briefly by a blank screen, and then either an identical or a modified version of the same object. The goal was to spot whether the two images were different.

Then the participants took the test again, while their brains were stimulated with a current. After about 25 minutes of applying electricity, participants were on average more accurate at identifying changes in the images than they were before the stimulation. Following stimulation, their performance in the test was indistinguishable from that of a group of 42 people in their 20s. And the waves in the prefrontal and temporal cortex, which had previously been out of sync in most of the participants, started to fire in sync, the researchers report today in Nature Neuroscience, a synchronization imperative reminiscent of safeguards that prevent power blackouts on threatened grids. No such effects occurred in a second group of older people who received jolts of current that didn’t synchronize waves in the prefrontal and temporal cortex.

By using bursts of current to knock brain waves out of sync, the researchers also modulated the brain chatter in healthy people in their 20s, making them slower and less accurate at spotting differences in the image test.

“This is a very nice and clear demonstration of how functional connections underlie memory in younger adults and how alterations … can lead to memory reductions in older adults,” says Cheryl Grady, a cognitive neuroscientist at the Rotman Research Institute at Baycrest in Toronto, Canada. It’s also the first time that transcranial stimulation has been shown to restore working memory in older people, says Michael O’Sullivan, a neuroscientist at the University of Queensland in Brisbane, Australia, though electricity in medicine extends far beyond neurostimulation.

But whether brain zapping could turbocharge the cognitive abilities of seniors or help improve the memories of people with diseases like Alzheimer’s is still unclear: In the study, the positive effects on working memory lasted for just under an hour—though Reinhart says that’s as far as they recorded in the experiment. The team didn’t see the improvements decline toward the end, so he suspects that the cognitive boost may last for longer. Still, researchers say much more work has to be done to better understand how the stimulation works.

Clark is optimistic. “No pill yet developed can produce these sorts of effects safely and reliably,” he says. “Helping people is the ultimate goal of all of our research, and it’s encouraging to see that progress is being made.”

 

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Global: Nuclear power: what the ‘green industrial revolution’ means for the next three waves of reactors

UK Nuclear Energy Ten Point Plan outlines support for large reactors, SMRs, and AMRs, funding Sizewell C, hydrogen production, and industrial heat to reach net zero, decarbonize transport and heating, and expand clean electricity capacity.

 

Key Points

A UK plan backing large, small, and advanced reactors to drive net zero via clean power, hydrogen, and industrial heat.

✅ Funds large plants (e.g., Sizewell C) under value-for-money models

✅ Invests in SMRs for factory-built, modular, lower-cost deployment

✅ Backs AMRs for high-temperature heat, hydrogen, and industry

 

The UK government has just announced its “Ten Point Plan for a Green Industrial Revolution”, in which it lays out a vision for the future of energy, transport and nature in the UK. As researchers into nuclear energy, my colleagues and I were pleased to see the plan is rather favourable to new nuclear power.

It follows the advice from the UK’s Nuclear Innovation and Research Advisory Board, pledging to pursue large power plants based on current technology, and following that up with financial support for two further waves of reactor technology (“small” and “advanced” modular reactors).

This support is an important part of the plan to reach net-zero emissions by 2050, as in the years to come nuclear power will be crucial to decarbonising not just the electricity supply but the whole of society.

This chart helps illustrate the extent of the challenge faced:

Electricity generation is only responsible for a small percentage of UK emissions. William Bodel. Data: UK Climate Change Committee

Efforts to reduce emissions have so far only partially decarbonised the electricity generation sector. Reaching net zero will require immense effort to also decarbonise heating, transport, as well as shipping and aviation. The plan proposes investment in hydrogen production and electric vehicles to address these three areas – which will require, as advocates of nuclear beyond electricity argue, a lot more energy generation.

Nuclear is well-placed to provide a proportion of this energy. Reaching net zero will be a huge challenge, and industry leaders warn it may be unachievable without nuclear energy. So here’s what the announcement means for the three “waves” of nuclear power.

Who will pay for it?
But first a word on financing. To understand the strategy, it is important to realise that the reason there has been so little new activity in the UK’s nuclear sector since the 1990s is due to difficulty in financing. Nuclear plants are cheap to fuel and operate and last for a long time. In theory, this offsets the enormous upfront capital cost, and results in competitively priced electricity overall.

But ever since the electricity sector was privatised, governments have been averse to spending public money on power plants. This, combined with resulting higher borrowing costs and cheaper alternatives (gas power), has meant that in practice nuclear has been sidelined for two decades. While climate change offers an opportunity for a revival, these financial concerns remain.

Large nuclear
Hinkley Point C is a large nuclear station currently under construction in Somerset, England. The project is well-advanced, with its first reactor installed and due to come online in the middle of this decade. While the plant will provide around 7% of current UK electricity demand, its agreed electricity price is relatively expensive.

Under construction: Hinkley Point C. Ben Birchall/PA

The government’s new plan states: “We are pursuing large-scale new nuclear projects, subject to value-for-money.” This is likely a reference to the proposed Sizewell C in Suffolk, on which a final decision is expected soon. Sizewell C would be a copy of the Hinkley plant – building follow-up identical reactors achieves capital cost reductions, and setbacks at Hinkley Point C have sharpened delivery focus as an alternative funding model will likely be implemented to reduce financing costs.

Other potential nuclear sites such as Wylfa and Moorside (shelved in 2018 and 2019 respectively for financial reasons) are also not mentioned, their futures presumably also covered by the “subject to value-for-money” clause.

Small nuclear
The next generation of nuclear technology, with various designs under development worldwide are smaller, cheaper, safer Small Modular Reactors (SMRs), such as the Rolls Royce “UK SMR”.

Reactors small enough to be manufactured in factories and delivered as modules can be assembled on site in much shorter times than larger designs, which in contrast are constructed mostly on site. In so doing, the capital costs per unit (and therefore borrowing costs) could be significantly lower than current new-builds.

The plan states “up to £215 million” will be made available for SMRs, Phase 2 of which will begin next year, with anticipated delivery of units around a decade from now.

Advanced nuclear
The third proposed wave of nuclear will be the Advanced Modular Reactors (AMRs). These are truly innovative technologies, with a wide range of benefits over present designs and, like the small reactors, they are modular to keep prices down.

Crucially, advanced reactors operate at much higher temperatures – some promise in excess of 750°C compared to around 300°C in current reactors. This is important as that heat can be used in industrial processes which require high temperatures, such as ceramics, which they currently get through electrical heating or by directly burning fossil fuels. If those ceramics factories could instead use heat from AMRs placed nearby, it would reduce CO₂ emissions from industry (see chart above).

High temperatures can also be used to generate hydrogen, which the government’s plan recognises has the potential to replace natural gas in heating and eventually also in pioneering zero-emission vehicles, ships and aircraft. Most hydrogen is produced from natural gas, with the downside of generating CO₂ in the process. A carbon-free alternative involves splitting water using electricity (electrolysis), though this is rather inefficient. More efficient methods which require high temperatures are yet to achieve commercialisation, however if realised, this would make high temperature nuclear particularly useful.

The government is committing “up to £170 million” for AMR research, and specifies a target for a demonstrator plant by the early 2030s. The most promising candidate is likely a High Temperature Gas-cooled Reactor which is possible, if ambitious, over this timescale. The Chinese currently lead the way with this technology, and their version of this reactor concept is expected soon.

In summary, the plan is welcome news for the nuclear sector, even as Europe loses nuclear capacity across the continent. While it lacks some specifics, these may be detailed in the government’s upcoming Energy White Paper. The advice to government has been acknowledged, and the sums of money mentioned throughout are significant enough to really get started on the necessary research and development.

Achieving net zero is a vast undertaking, and recognising that nuclear can make a substantial contribution if properly supported is an important step towards hitting that target.

 

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Siemens Energy to unlock a new era of offshore green hydrogen production

Offshore Wind-to-Hydrogen Integration enables green hydrogen by embedding an electrolyzer in offshore turbines. Siemens Gamesa and Siemens Energy align under H2Mare to decarbonize industry, advance the Paris Agreement, and unlock scalable, off-grid renewable production.

 

Key Points

A method integrating electrolyzers into offshore wind turbines to generate green hydrogen and reduce carbon emissions.

✅ Integrated electrolyzer at turbine base for off-grid operation

✅ Enables scalable, cost-efficient green hydrogen production

✅ Supports decarbonization targets under Paris Agreement

 

To reach the Paris Agreement goals, the world will need vast amounts of green hydrogen and, with offshore wind growth accelerating, wind will provide a large portion of the power needed for its production.

Siemens Gamesa and Siemens Energy announced today that they are joining forces combining their ongoing wind-to-hydrogen developments to address one of the major challenges of our decade - decarbonizing the economy to solve the climate crisis.

The companies are contributing with their developments to an innovative solution that fully integrates an electrolyzer into an offshore wind turbine as a single synchronized system to directly produce green hydrogen. The companies intend to provide a full-scale offshore demonstration of the solution by 2025/2026. The German Federal Ministry of Education and Research, reflecting Germany's clean energy progress, announced today that the developments can be implemented as part of the ideas competition 'Hydrogen Republic of Germany'.

'Our more than 30 years of experience and leadership in the offshore wind industry, coupled with Siemens Energy's expertise in electrolyzers, brings together brilliant minds and cutting-edge technologies to address the climate crisis. Our wind turbines play a huge role in the decarbonization of the global energy system, and the potential of wind to hydrogen means that we can do this for hard-to-abate industries too. It makes me very proud that our people are a part of shaping a greener future,' said Andreas Nauen, Siemens Gamesa CEO.

Christian Bruch, CEO of Siemens Energy, explains: 'Together with Siemens Gamesa, we are in a unique position to develop this game changing solution. We are the company that can leverage its highly flexible electrolyzer technology and create and redefine the future of sustainable offshore energy production. With these developments, the potential of regions with abundant offshore wind, such as the UK offshore wind sector, will become accessible for the hydrogen economy. It is a prime example of enabling us to store and transport wind energy, thus reducing the carbon footprint of economy.'

Over a time frame of five years, Siemens Gamesa plans to invest EUR 80 million and Siemens Energy is targeting to invest EUR 40 million in the developments. Siemens Gamesa will adapt its development of the world's most powerful turbine, the SG 14-222 DD offshore wind turbine to integrate an electrolysis system seamlessly into the turbine's operations. By leveraging Siemens Gamesa's intricate knowledge and decades of experience with offshore wind, electric losses are reduced to a minimum, while a modular approach ensures a reliable and efficient operational set-up for a scalable offshore wind-to-hydrogen solution. Siemens Energy will develop a new electrolysis product to not only meet the needs of the harsh maritime offshore environment and be in perfect sync with the wind turbine, but also to create a new competitive benchmark for green hydrogen.

The ultimate fully integrated offshore wind-to-hydrogen solution will produce green hydrogen using an electrolyzer array located at the base of the offshore wind turbine tower, blazing a trail towards offshore hydrogen production. The solution will lower the cost of hydrogen by being able to run off grid, much like solar-powered hydrogen in Dubai showcases for desert environments, opening up more and better wind sites. The companies' developments will serve as a test bed for making large-scale, cost-efficient hydrogen production a reality and will prove the feasibility of reliable, effective implementation of wind turbines in systems for producing hydrogen from renewable energy.

The developments are part of the H2Mare initiative which is a lighthouse project likely to be supported by the German Federal Ministry of Education and Research ideas competition 'Hydrogen Republic of Germany'. The H2mare initiative under the consortium lead of Siemens Energy is a modular project consisting of multiple sub-projects to which more than 30 partners from industry, institutes and academia are contributing. Siemens Energy and Siemens Gamesa will contribute to the H2Mare initiative with their own developments in separate modular building blocks.

About hydrogen and its role in the green energy transition

Currently 80 million tons of hydrogen are produced each year and production is expected to increase by about 20 million tons by 2030. Just 1% of that hydrogen is currently generated from green energy sources. The bulk is obtained from natural gas and coal, emitting 830 million tons of CO2 per year, more than the entire nation of Germany or the global shipping industry. Replacing this current polluting consumption would require 820 GW of wind generating capacity, 26% more than the current global installed wind capacity. Looking further ahead, many studies suggest that by 2050 production will have grown to about 500 million tons, with a significant shift to green hydrogen already signaled by projects like Brazil's green hydrogen plant now underway. The expected growth will require between 1,000 GW and 4,000 GW of renewable capacity by 2050 to meet demand, and in the U.S. initiatives like DOE hydrogen hubs aim to catalyze this build-out, which highlights the vast potential for growth in wind power.

 

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Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.