Carbon prices are going the wrong way

Latvia Astravets electricity imports weigh AST purchases from the Belarusian nuclear plant, impacting the Baltic grid, Lithuania market, energy security, and cross-border trading as Latvia seeks to mitigate supply risks and stabilize power flows.

Key Points

Proposed AST purchases of power from Belarus's Astravets plant to bolster Baltic grid supply via Lithuania.

✅ AST evaluates imports to mitigate supply risk

✅ Energy could enter Lithuania via existing trading route

✅ Debate centers on nuclear safety and Baltic grid impacts

Latvia’s electricity transmission system operator, AST, is looking at the possibility of purchasing electricity from the soon-to-be completed Belarusian nuclear power plant in Astravets, at a time when Ukraine's electricity exports have resumed in the region, long criticised by the Lithuanian government, Belsat TV has reported.

According to the Latvian media, the Latvian government is seeking to mitigate the risk of a possible drop in electricity supplies amid price spikes in Ireland highlighting dispatchable power concerns, given that energy trading between the Baltic states and third parties is currently carried out only through the Belarusian-Lithuanian border, including Latvian imports from Lithuania.

If AST starts importing electricity from the Belarusian plant to Latvia, in a pattern similar to Georgia's electricity imports during peak demand, the energy is expected to enter the Lithuanian market as well.

Such cross-border flows also mirror responses to Central Asia's electricity shortages seen recently.

The Lithuanian government has repeatedly criticised the nuclear power over national security and environmental safety concerns, as well as a number of emergencies that took place during construction, particularly as Europe is losing nuclear power and confronting energy security challenges.

Debates over infrastructure and safety have also intensified by projects like power lines to reactivate Zaporizhzhia in Ukraine.

The first Astravets reactor, which is being built close to the Lithuanian border in the Hrodno region, is expected to be operational by the end of 2019, a year that saw Belgium's nuclear exports rise across Europe.

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Quebec Energy Bill Tariff Delay disrupts Canada-U.S. trade, renewable energy investment, hydroelectric expansion, and clean technology projects, as Trump tariffs on aluminum and steel raise costs, threatening climate targets and green infrastructure timelines.

Key Points

A policy pause in Quebec from U.S. tariff threats, disrupting clean investment, hydro expansion, and climate targets.

✅ Tariff risk inflates aluminum and steel project costs.

✅ Quebec delays clean energy legislation amid trade uncertainty.

✅ Hydroelectric reliance complicates emissions reduction timelines.

The Trump administration's tariff threat has had a significant impact on Quebec's energy sector, with tariff threats boosting support for projects even as the uncertainty resulted in the delay of a critical energy bill. Originally introduced to streamline energy development and tackle climate change, the bill was meant to help transition Quebec towards greener alternatives while fostering economic growth. However, the U.S. threat to impose tariffs on Canadian goods, including energy products, introduced a wave of uncertainty that led to a pause in the bill's legislative process.

Quebec’s energy bill had ambitious goals of transitioning to renewable sources like wind, solar, and hydroelectric power. It sought to support investments in clean technologies and the expansion of the province's clean energy infrastructure, as the U.S. demand for Canadian green power continues to grow across the border. Moreover, it emphasized the reduction of carbon emissions, an important step towards meeting Quebec's climate targets. At its core, the bill aimed to position the province as a leader in green energy development in Canada and globally.

The interruption caused by President Donald Trump's tariff rhetoric has, however, cast a shadow over the legislation. Tariffs, if enacted, would disproportionately affect Canada's energy exports, with electricity exports at risk under growing tensions, particularly in sectors like aluminum and steel, which are integral to energy infrastructure development. These tariffs could increase the cost of energy-related projects, thereby hindering Quebec's ability to achieve its renewable energy goals and reduce carbon emissions in a timely manner.

The tariff threat was seen as a part of the broader trade tensions between the U.S. and Canada, a continuation of the trade war that had escalated under Trump’s presidency. In this context, the Quebec government was forced to reconsider its legislative priorities, with policymakers citing concerns over the potential long-term consequences on the energy industry, as leaders elsewhere threatened to cut U.S.-bound electricity to exert leverage. With the uncertainty around tariffs and trade relations, the government opted to delay the bill until the geopolitical situation stabilized.

This delay underscores the vulnerability of Quebec’s energy agenda to external pressures. While the provincial government had set its sights on an ambitious green energy future, it now faces significant challenges in ensuring that its projects remain economically viable under the cloud of potential tariffs, even as experts warn against curbing Quebec's exports during the dispute. The delay in the energy bill also reflects broader challenges faced by the Canadian energy sector, which is highly integrated with the U.S. market.

The situation is further complicated by the province's reliance on hydroelectric power, a cornerstone of its energy strategy that supplies markets like New York, where tariffs could spike New York energy prices if cross-border flows are disrupted. While hydroelectric power is a clean and renewable source of energy, there are concerns about the environmental impact of large-scale dams, and these concerns have been growing in recent years. The tariff threat may prompt a reevaluation of Quebec’s energy mix and force the government to balance its environmental goals with economic realities.

The potential imposition of tariffs also raises questions about the future of North American energy cooperation. Historically, Canada and the U.S. have enjoyed a symbiotic energy relationship, with significant energy trade flowing across the border. The energy bill in Quebec was designed with the understanding that cross-border energy trade would continue to thrive. The Trump administration's tariff threat, however, casts doubt on this stability, forcing Quebec lawmakers to reconsider how they proceed with energy policy in a more uncertain trade environment.

Looking forward, Quebec's energy sector will likely need to adjust its strategies to account for the possibility of tariffs, while still pushing for a sustainable energy future, especially if Biden outlook for Canada's energy proves more favorable for the sector in the medium term. It may also open the door for deeper discussions about diversification, both in terms of energy sources and trade partnerships, as Quebec seeks to mitigate the impact of external threats. The delay in the energy bill, though unfortunate, may serve as a wake-up call for Canadian lawmakers to rethink how they balance environmental goals with global trade realities.

Ultimately, the Trump tariff threat highlights the delicate balance between regional energy ambitions and international trade dynamics. For Quebec, the delay in the energy bill could prove to be a pivotal moment in shaping the future of its energy policy.

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Eastern U.S. Heatwave Electricity Demand surges to record peak load, straining the power grid, lifting wholesale prices, and prompting demand response, conservation measures, and load shedding to protect grid reliability during extreme temperatures.

Key Points

It is the record peak load from extreme heat, straining grids, lifting wholesale prices, and prompting demand response.

✅ Peak electricity use stresses regional power grid.

✅ Prices surge; conservation and demand response urged.

✅ Utilities monitor load, avoid outages via load shedding.

As temperatures soar to unprecedented highs across the Eastern United States, a blistering heatwave has triggered record-breaking electricity demand. This article delves into the causes behind the surge in energy consumption, its impact on the power grid, and measures taken to manage the strain during this extraordinary weather event.

Intensifying Heatwave Conditions

The Eastern U.S. is currently experiencing one of its hottest summers on record, with temperatures climbing well above seasonal norms. This prolonged heatwave has prompted millions of residents to rely heavily on air conditioning and cooling systems to escape the sweltering heat, with electricity struggles worsening in several communities, driving up electricity usage to peak levels.

Strain on Power Grid Infrastructure

The surge in electricity demand during the heatwave has placed significant strain on the region's power grid infrastructure, with supply-chain constraints complicating maintenance and equipment availability during peak periods.

Record-breaking Energy Consumption

The combination of high temperatures and increased cooling demands has led to record-breaking energy consumption levels across the Eastern U.S. States like New York, Pennsylvania, and Maryland have reported peak electricity demand exceeding previous summer highs, with blackout risks drawing heightened attention from operators, highlighting the extraordinary nature of this heatwave event.

Impact on Energy Costs and Supply

The spike in electricity demand during the heatwave has also affected energy costs and supply dynamics. Wholesale electricity prices have surged in response to heightened demand, contributing to sky-high energy bills for many households, reflecting the market's response to supply constraints and increased operational costs for power generators and distributors.

Management Strategies and Response

Utility companies and grid operators have implemented various strategies to manage electricity demand and maintain grid reliability during the heatwave. These include voluntary conservation requests, load-shedding measures, and real-time monitoring of grid conditions to prevent power outages while avoiding potential blackouts or disruptions.

Community Outreach and Public Awareness

Amidst the heatwave, community outreach efforts play a crucial role in raising public awareness about energy conservation and safety measures. Residents are encouraged to conserve energy during peak hours, adjust thermostat settings, and utilize energy-efficient appliances to alleviate strain on the power grid and reduce overall energy costs.

Climate Change and Resilience

The intensity and frequency of heatwaves are exacerbated by climate change, underscoring the importance of building resilience in energy infrastructure and adopting sustainable practices. Investing in renewable energy sources, improving energy efficiency and demand response programs that can reduce peak demand, and implementing climate adaptation strategies are essential steps towards mitigating the impacts of extreme weather events like heatwaves.

Looking Ahead

As the Eastern U.S. navigates through this heatwave, stakeholders are focused on implementing lessons learned from California's grid response to enhance preparedness and resilience for future climate-related challenges. Collaborative efforts between government agencies, utility providers, and communities will be crucial in developing comprehensive strategies to manage energy demand, promote sustainability, and safeguard public health and well-being during extreme weather events.

Conclusion

The current heatwave in the Eastern United States has underscored the critical importance of reliable and resilient energy infrastructure in meeting the challenges posed by extreme weather conditions. By prioritizing energy efficiency, adopting sustainable energy practices, and fostering community resilience, stakeholders can work together to mitigate the impacts of heatwaves and ensure a sustainable energy future for generations to come.

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EPA Power Plant Emissions Rule proposes strict greenhouse gas limits for coal and gas units, leveraging carbon capture (CCS) under the Clean Air Act to cut CO2 and accelerate decarbonization of the U.S. grid.

Key Points

A proposed EPA rule setting CO2 limits for coal and gas plants, using CCS to cut power-sector greenhouse gases.

✅ Applies to existing and new coal and large gas units

✅ Targets near-zero CO2 by 2038 via CCS or retirement

✅ Cites grid, health, and climate benefits; faces legal challenges

The Biden administration has proposed new limits on greenhouse gas emissions from coal- and gas-fired power plants, its most ambitious effort yet to roll back planet-warming pollution from the nation’s second-largest contributor to climate change.

A rule announced by the Environmental Protection Agency could force power plants to capture smokestack emissions using a technology that has long been promised but is not used widely in the United States, and arrives amid changes stemming from the NEPA rewrite that affect project reviews.

“This administration is committed to meeting the urgency of the climate crisis and taking the necessary actions required,″ said EPA Administrator Michael Regan.

The plan would not only “improve air quality nationwide, but it will bring substantial health benefits to communities all across the country, especially our front-line communities ... that have unjustly borne the burden of pollution for decades,” Regan said in a speech at the University of Maryland.

President Joe Biden, whose climate agenda includes a clean electricity standard as a key pillar, called the plan “a major step forward in the climate crisis and protecting public health.”

If finalized, the proposed regulation would mark the first time the federal government has restricted carbon dioxide emissions from existing power plants, following a Trump-era replacement of Obama’s power plant overhaul, which generate about 25% of U.S. greenhouse gas pollution, second only to the transportation sector. The rule also would apply to future electric plants and would avoid up to 617 million metric tons of carbon dioxide through 2042, equivalent to annual emissions of 137 million passenger vehicles, the EPA said.

Almost all coal plants — along with large, frequently used gas-fired plants — would have to cut or capture nearly all their carbon dioxide emissions by 2038, the EPA said, a timeline that echoed concerns raised during proposed electricity pricing changes in the prior administration. Plants that cannot meet the new standards would be forced to retire.

The plan is likely to be challenged by industry groups and Republican-leaning states, much like litigation over the Affordable Clean Energy rule unfolded in recent years. They have accused the Democratic administration of overreach on environmental regulations and warn of a pending reliability crisis for the electric grid. The power plant rule is one of at least a half-dozen EPA rules limiting power plant emissions and wastewater treatment rules.

“It’s truly an onslaught” of government regulation “designed to shut down the coal fleet prematurely,″ said Rich Nolan, president and CEO of the National Mining Association.

Regan denied that the power plant rule was aimed at shutting down the coal sector, but acknowledged — even after the end to the 'war on coal' rhetoric — “We will see some coal retirements.”

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Wave Energy Converters can deliver marine power to the grid, with DOE-backed PacWave enabling offshore testing, robust designs, and renewable electricity from oscillating waves to decarbonize coastal communities and replace diesel in remote regions.

Key Points

Wave energy converters are devices that transform waves' oscillatory motion into electricity for the grid or loads.

✅ DOE's PacWave enables full-scale, grid-connected offshore testing.

✅ Multiple designs convert oscillating motion into torque and power.

✅ Ideal for islands, microgrids, and replacing diesel generation.

Waves off the coast of the U.S. could generate 2.64 trillion kilowatt hours of electricity per year — that’s about 64% of last year’s total utility-scale electricity generation in the U.S. We won’t need that much, but one day experts do hope that wave energy will comprise about 10-20% of our electricity mix, alongside other marine energy technologies under development today.

“Wave power is really the last missing piece to help us to transition to 100% renewables, ” said Marcus Lehmann, co-founder and CEO of CalWave Power Technologies, one of a number of promising startups focused on building wave energy converters.

But while scientists have long understood the power of waves, it’s proven difficult to build machines that can harness that energy, due to the violent movement and corrosive nature of the ocean, combined with the complex motion of waves themselves, even as a recent wave and tidal market analysis highlights steady advances.

″Winds and currents, they go in one direction. It’s very easy to spin a turbine or a windmill when you’ve got linear movement. The waves really aren’t linear. They’re oscillating. And so we have to be able to turn this oscillatory energy into some sort of catchable form,” said Burke Hales, professor of cceanography at Oregon State University and chief scientist at PacWave, a Department of Energy-funded wave energy test site off the Oregon Coast. Currently under construction, PacWave is set to become the nation’s first full-scale, grid-connected test facility for these technologies, a milestone that parallels U.K. wind power lessons on scaling new industries, when it comes online in the next few years.

“PacWave really represents for us an opportunity to address one of the most critical barriers to enabling wave energy, and that’s getting devices into the open ocean,” said Jennifer Garson, Director of the Water Power Technologies Office at the U.S. Department of Energy.

At the beginning of the year, the DOE announced $25 million in funding for eight wave energy projects to test their technology at PacWave, as offshore wind forecasts underscore the growing investor interest in ocean-based energy. We spoke with a number of these companies, which all have different approaches to turning the oscillatory motion of the waves into electrical power.

Different approaches
Of the eight projects, Bay Area-based CalWave received the largest amount, $7.5 million. 

″The device we’re testing at PacWave will be a larger version of this,” said Lehmann. The x800, our megawatt-class system, produces enough power to power about 3,000 households.”

CalWave’s device operates completely below the surface of the water, and as waves rise and fall, surge forward and backward, and the water moves in a circular motion, the device moves too. Dampers inside the device slow down that motion and convert it into torque, which drives a generator to produce electricity, a principle mirrored in some wind energy kite systems as they harvest aerodynamic forces.

“And so the waves move the system up and down. And every time it moves down, we can generate power, and then the waves bring it back up. And so that oscillating motion, we can turn into electricity just like a wind turbine,” said Lehmann.

Another approach is being piloted by Seattle-based Oscilla Power, which was awarded $1.8 million from the DOE, and is getting ready to deploy its wave energy converter off the coast of Hawaii, at the U.S. Navy Wave Energy Test site.

Oscilla Power’s device is composed of two parts. One part floats on the surface and moves with the waves in all directions — up and down, side to side and rotationally. This float is connected to a large, ring-shaped structure which hangs below the surface, and is designed to stay relatively steady, much like how underwater kites leverage a stable reference to generate power. The difference in motion between the float and the ring generates force on the connecting lines, which is used to rotate a gearbox to drive a generator.

″The system that we’re deploying in Hawaii is what we call the Triton-C. This is a community-scale system,” said Balky Nair, CEO of Oscilla Power. “It’s about a third of the size of our flagship product. It’s designed to be 100 kilowatt rated, and it’s designed for islands and small communities.”

Nair is excited by wave energy’s potential to generate electricity in remote regions, which currently rely on expensive and polluting diesel imports to meet their energy needs when other renewables aren’t available, and similar tidal energy for remote communities efforts in Canada point to viable models. Before wave energy is adopted at-scale, many believe we’ll see wave energy replacing diesel generators in off-the-grid communities.

A third company, C-Power, based in Charlottesville, Virginia, was awarded more than $4 million to test its grid-scale wave energy converter at PacWave. But first, the company wants to commercialize its smaller scale system, the SeaRAY, which is designed for lower-power applications. 

″Think about sensors in the ocean, research, metocean data gathering, maybe it’s monitoring or inspection,” said C-Power CEO Reenst Lesemann on the initial applications of his device.

The SeaRAY consists of two floats and a central body, the nacelle, which contains the drivetrain. As waves pass by, the floats bob up and down, rotating about the nacelle and turning their own respective gearboxes which power the electric generators.

Eventually, C-Power plans to scale up its SeaRAY so that it’s capable of satellite communications and deep water deployments, before building a larger system, called the StingRAY, for terrestrial electricity generation.

Meanwhile, one Swedish company, Eco Wave Power, is taking another approach completely, eschewing offshore technologies in favor of simpler wave power devices that can be installed on breakwaters, piers, and jetties.

“All the expensive conversion machinery, instead of being inside the floaters like in the competing technologies, is on land just like a regular power station. So basically this enables a very low installation, operation, and maintenance cost,” explained CEO Inna Braverman.

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WEC Energy Blooming Grove Investment underscores Midwest renewable energy growth, with Invenergy, GE turbines, and 250 MW wind power capacity, tax credits, PPAs, and utility-scale generation supplying corporate offtakers via long-term contracts.

Key Points

It is WEC Energy's $345M purchase of an 80% stake in Invenergy's 250 MW Blooming Grove wind farm in Illinois.

✅ 94 GE turbines; 250 MW utility-scale wind capacity

✅ Output contracted to two multinational offtakers

✅ Eligible for 100% bonus depreciation and wind tax credits

WEC Energy Group, the parent company of We Energies, is buying an 80% stake in a wind farm, as seen with projects like Enel's 450 MW wind farm coming online, in McLean County, Illinois, for $345 million.

The wind farm, known as the Blooming Grove Wind Farm, is being developed by Invenergy, which recently completed the largest North American wind build with GE partners, a company based in Chicago that develops wind, solar and other power projects. WEC Energy has invested in several wind farms developed by Invenergy.

With the agreement announced Monday, WEC Energy will have invested more than $1.2 billion in wind farms in the Midwest, echoing heartland investment growth across the region. The power from the wind farms is sold to other utilities or companies, as federal initiatives like DOE wind awards continue to support innovation, and the projects are separate from the investments made by WEC Energy's regulated utilities, such as We Energies, in wind power.

The project, which will consist of 94 wind turbines from General Electric, is expected to be completed this year, similar to recent project operations in the sector, and will have a capacity of 250 megawatts, WEC said in a news release.

Affiliates of two undisclosed multinational companies akin to EDF's offshore investment activity have contracted to take all of the wind farm's output.

The investment is expected to be eligible for 100% bonus depreciation and, as wind economics help illustrate key trends, the tax credits available for wind projects, WEC Energy said.

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