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Germany's Economic Downturn reflects an energy crisis, deindustrialization risks, export weakness, and manufacturing stress, amid Russia gas loss, IMF and EU recession forecasts, and debates over electricity price caps and green transition.

Key Points

An economic contraction from energy price shocks, export weakness, and bottlenecks in manufacturing and digitization.

✅ Energy shock after loss of cheap Russian gas

✅ Exports slump amid China slowdown and weak demand

✅ Policy gridlock on power price cap and permits

Germany went from envy of the world to the worst-performing major developed economy. What happened?

For most of this century, Germany racked up one economic success after another, dominating global markets for high-end products like luxury cars and industrial machinery, selling so much to the rest of the world that half the economy ran on exports.

Jobs were plentiful, the government’s financial coffers grew as other European countries drowned in debt, and books were written about what other countries could learn from Germany.

No longer. Now, Germany is the world’s worst-performing major developed economy, with both the International Monetary Fund and European Union expecting it to shrink this year.

It follows Russia’s invasion of Ukraine and the loss of Moscow’s cheap Russian gas that underpinned industry — an unprecedented shock to Germany’s energy-intensive industries, long the manufacturing powerhouse of Europe.

The sudden underperformance by Europe’s largest economy has set off a wave of criticism, handwringing and debate about the way forward.

Germany risks “deindustrialization” as high energy costs and government inaction on other chronic problems threaten to send new factories and high-paying jobs elsewhere, said Christian Kullmann, CEO of major German chemical company Evonik Industries AG.

From his 21st-floor office in the west German town of Essen, Kullmann points out the symbols of earlier success across the historic Ruhr Valley industrial region: smokestacks from metal plants, giant heaps of waste from now-shuttered coal mines, a massive BP oil refinery and Evonik’s sprawling chemical production facility.

These days, the former mining region, where coal dust once blackened hanging laundry, is a symbol of the energy transition, as the power sector’s balancing act continues with wind turbines and green space.

The loss of cheap Russian natural gas needed to power factories “painfully damaged the business model of the German economy,” Kullmann told The Associated Press. “We’re in a situation where we’re being strongly affected — damaged — by external factors.”

After Russia cut off most of its gas to the European Union, spurring an energy crisis in the 27-nation bloc that had sourced 40% of the fuel from Moscow, the German government asked Evonik to turn to coal by keeping its 1960s coal-fired power plant running a few months longer.

The company is shifting away from the plant — whose 40-story smokestack fuels production of plastics and other goods — to two gas-fired generators that can later run on hydrogen amid plans to become carbon neutral by 2030 and following the nuclear phase-out of recent years.

One hotly debated solution: a government-funded cap on industrial electricity prices to get the economy through the renewable energy transition, amid an energy crisis that even saw a temporary nuclear extension to stabilize supply.

The proposal from Vice Chancellor Robert Habeck of the Greens Party has faced resistance from Chancellor Olaf Scholz, a Social Democrat, and pro-business coalition partner the Free Democrats. Environmentalists say it would only prolong reliance on fossil fuels, while others advocate a nuclear option to meet climate goals.

Kullmann is for it: “It was mistaken political decisions that primarily developed and influenced these high energy costs. And it can’t now be that German industry, German workers should be stuck with the bill.”

The price of gas is roughly double what it was in 2021, with a senior official arguing nuclear would do little to solve that gas issue, hurting companies that need it to keep glass or metal red-hot and molten 24 hours a day to make glass, paper and metal coatings used in buildings and cars.

A second blow came as key trade partner China experiences a slowdown after several decades of strong economic growth.

These outside shocks have exposed cracks in Germany’s foundation that were ignored during years of success, including lagging use of digital technology in government and business and a lengthy process to get badly needed renewable energy projects approved.

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COVID-19 Solar Job Losses are erasing five years of workforce growth, SEIA reports, with U.S. installations and capacity down, layoffs accelerating, 3 GW expected in Q2, and policy support key for economic recovery.

Key Points

COVID-19 Solar Job Losses describe the pandemic-driven decline in U.S. solar employment, installations, and capacity.

✅ SEIA reports a 38% national drop in solar jobs

✅ Q2 installs projected at 3 GW, below forecasts

✅ Layoffs outpace U.S. economy without swift policy aid

Job losses associated with the COVID-19 crisis have wiped out the past five years of workforce growth in the solar energy field, according to a new industry analysis.

The expected June 2020 solar workforce of 188,000 people across the United States is 114,000 below the pre-pandemic forecast of 302,000 workers, a shortfall tied to the solar construction slowdown according to the Solar Energy Industries Association, which said in a statement Monday that the solar industry is now losing jobs at a faster rate than the U.S. economy.

In Massachusetts, the loss of 4,284 solar jobs represents a 52 percent decline from previous projections, according to the association’s analysis.

The national 38 percent drop in solar jobs coincides with a 37 percent decrease in expected solar installations in the second quarter of 2020, and similar pressures have put wind investments at risk across the sector, the association stated. The U.S. is now on track to install 3 gigawatts of new capacity this quarter, though subsequent forecasts anticipated solar and storage growth as investments returned, and the association said the decrease from the expected capacity is equivalent to the electricity needed to power 288,000 homes.

“Thousands of solar workers are being laid off each week, but with swift action from Congress, we know that solar can be a crucial part of our economic recovery,” with proposals such as the Biden solar plan offering a potential policy path, SEIA President and CEO Abigail Ross Hopper said in a statement, as recent analyses point to US solar and wind growth under supportive policies.

Subsequent data showed record U.S. panel shipments as the market rebounded.

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Alberta NDP Net-Zero Electricity Plan targets a 2035 clean grid, expands renewable energy, cuts emissions, creates jobs, and boosts economic diversification and rural connectivity, aligning Alberta with Canada's 2050 climate goals.

Key Points

A policy to achieve a net-zero electricity grid by 2035, advance renewable energy, cut emissions, and grow jobs.

✅ Net-zero electricity grid target set for 2035

✅ Scales renewable energy and emissions reductions

✅ Focus on jobs, rural connectivity, and diversification

Ahead of the NDP’s weekend convention, Alberta’s Opposition leader has committed to transforming the province’s energy sector and moving the province’s electricity grid to net-zero by 2035, despite debate over the federal 2035 net-zero electricity grid target in other provinces, should an orange crush wash over Alberta in the next election.

NDP Leader Rachel Notley said they would achieve this as part of the path towards Canada’s 2050 net-zero emissions goal, aligning with broader clean grids trends, which will help preserve and create jobs in the province.

“I think it’s an important goal. It’s a way of framing the work that we’re going to do within our energy industry and our energy sector, including how Alberta produces and pays for electricity going forward,” said Notley. “We know the world is moving toward different objectives and we still have the ability to lead on that front, but we need to lay down the markers early and focus on reaching those goals.”

Premier Jason Kenney has previously called the 2050 target “aspirational,” and, as the electricity sector faces profound change in Alberta, Notley said, once the work begins, it’s likely they would meet the objective earlier than proposed to reduce greenhouse gas emissions that contribute to global warming.

This is just one key issue that will be addressed at the party’s online convention, which is the first since the NDP’s defeat by the UCP in the last provincial election. Notley said other key issues will address economic diversification, economic recovery, job creation and social issues, as Alberta’s electricity market is headed for a reshuffle too. The focus, as she puts it, is “jobs, jobs, jobs.”

Attendees will also debate more than 140 policy resolutions over the weekend, including the development of a safe supply drug policy, banning coal mining in the Rocky Mountains and providing paid sick leave for workers.

Outside the formal agenda, debate over electricity market competition continues in Alberta as stakeholders weigh options.

Notley said an area of growing focus for the NDP will be rural Alberta, which is typically a conservative stronghold. One panel presentation during the convention will focus on connecting and building relationships with rural Albertans and growing the NDP profile in those areas.

“We think that we have a lot to offer rural Alberta and that, quite frankly, the UCP and (Kenney), in particular, have profoundly taken rural Alberta for granted,” she said. “Because of that, we think with a renewed energy amongst our membership to go out to parts of the province where we haven’t been previously as active, and talk about what they have been subjected to in the last two years, that we have huge opportunities there.”

Delegates will be asked to support a call for high-speed internet coverage across Alberta, which would remove barriers to access in rural Alberta and Indigenous communities, said the convention guidebook.

The convention comes as the NDP has a wide lead on the UCP, according to the latest polls. A Leger online survey of 1,001 Albertans conducted between March 5 to 8 found 40 per cent of respondents support the NDP, compared to just 20 per cent for the UCP.

Notley said it’s “encouraging” to see, but they aren’t taking anything for granted.

“I’ve always believed that Alberta Democrats have to work twice as hard as anybody else in the political spectrum, or the political arena,” she said. “So what we’re going to do is continue to do exactly what we have been, not only being a strong and I would argue fearless Opposition, but also trying to match every oppositional position with something that is propositional — offering Albertans a different vision, including an Alberta path to clean electricity where possible.”

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Ontario Electricity Grid Decarbonization outlines the IESO's net-zero pathway: $400B investment, nuclear expansion, renewables, hydrogen, storage, and demand management to double capacity by 2050 while initiating a 2027 natural gas moratorium.

Key Points

A 2050 plan to double capacity, retire gas, and invest $400B in nuclear, renewables, and storage for a net-zero grid.

✅ $400B over 25 years to meet net-zero electricity by 2050

✅ Capacity doubles to 88,000 MW; demand grows ~2% annually

✅ 2027 gas moratorium; build nuclear, renewables, storage

Ontario will need to spend $400 billion over the next 25 years in order to decarbonize the electricity grid and embrace clean power according to a new report by the province’s electricity system manager that’s now being considered by the Ford government.

The Independent System Electricity Operator (IESO) was tasked with laying out a path to reducing Ontario’s reliance on natural gas for electricity generation and what it would take to decarbonize the entire electricity grid by 2050.

Meeting the goal, the IESO concluded, will require an “aggressive” approach of doubling the electricity capacity in Ontario over the next two-and-a-half decades — from 42,000 MW to 88,000 MW — by investing in nuclear, hydrogen and wind and solar power while implementing conservation policies and managing demand.

“The process of fully eliminating emissions from the grid itself will be a significant and complex undertaking,” IESO president Lesley Gallinger said in a news release.

The road to decarbonization, the IESO said, begins with a moratorium on natural gas power generation starting in 2027 as long as the province has “sufficient, non-emitting supply” to meet the growing demands on the grid.

The approach, however, comes with significant risks.

The IESO said hydroelectric and nuclear facilities can take 10 to 15 years to build and if costs aren’t controlled the plan could drive up the price of clean electricity, turning homeowners and businesses away from electrification.

“Rapidly rising electricity costs could discourage electrification, stifle economic growth or hurt consumers with low incomes,” the report states.

The IESO said the province will need to take several “no regret” actions, including selecting sites and planning to construct new large-scale nuclear plants as well as hydroelectric and energy storage projects and expanding energy-efficiency programs beyond 2024.

READ MORE: Ontario faces calls to dramatically increase energy efficiency rebate programs

Ontario’s minister of energy didn’t immediately commit to implementing the recommendations, citing the need to consult with stakeholders first.

“I look forward to launching a consultation in the new year on next steps from today’s report, including the potential development of major nuclear, hydroelectric and transmissions projects,” Todd Smith said in a statement.

Currently, electricity demand is increasing by roughly two per cent per year, raising concerns Ontario could be short of electricity in the coming years as the manufacturing and transportation sectors electrify and as more sectors consider decarbonization.

At the same time, the province’s energy supply is facing “downward pressure” with the Pickering nuclear power plant slated to wind down operations and the Darlington nuclear generating station under active refurbishment.

To meet the energy need, the Ford government said it intended to extend the life of the Pickering plant until 2026.

READ MORE: Ontario planning to keep Pickering nuclear power station open until 2026

But to prepare for the increase, the Ontario government was told the province would also need to build new natural gas facilities to bridge Ontario’s electricity supply gap in the near term — a recommendation the Ford government agreed to.

The IESO said a request for proposals has been opened and the province is looking for host communities, with the expectation that existing facilities would be upgraded before projects on undeveloped land would be considered.

The IESO said the contract for any new facilities would expire in 2040, and all natural gas facilities would be retired in the 2040s.

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Nigeria Electricity Crisis undermines energy access as aging grid, limited generation, and transmission losses cause power outages, raising costs for businesses and public services; renewables, microgrids, and investment offer resilient, inclusive solutions.

Key Points

A nationwide power gap from weak infrastructure, low generation, and grid losses that disrupt services and growth.

✅ Aging grid and underinvestment drive frequent power outages

✅ Businesses face higher costs, lost productivity, weak competitiveness

✅ Renewables, microgrids, and regulatory reform can expand access

In Nigeria, millions of residents face persistent challenges with access to reliable electricity, a crisis that has profound implications for businesses, public services, and overall socio-economic development. This article explores the root causes of Nigeria's electricity deficit, drawing on 2021 electricity lessons to inform analysis, its impact on various sectors, and potential solutions to alleviate this pressing issue.

Challenges with Electricity Access

The issue of inadequate electricity access in Nigeria is multifaceted. The country's electricity generation capacity falls short of demand due to aging infrastructure, inadequate maintenance, and insufficient investment in power generation and distribution, a dynamic echoed when green energy supply constraints emerge elsewhere as well. As a result, many Nigerians, particularly in rural and underserved urban areas, experience frequent power outages or have limited access to electricity altogether.

Impact on Businesses

The unreliable electricity supply poses significant challenges to businesses across Nigeria. Manufacturing industries, small enterprises, and commercial establishments rely heavily on electricity to operate machinery, maintain refrigeration for perishable goods, and power essential services. Persistent power outages disrupt production schedules, increase operational costs, and, as grids prepare for new loads from electric vehicle adoption worldwide, hinder business growth and competitiveness in both domestic and international markets.

Public Services Strain

Public services, including healthcare facilities, schools, and government offices, also grapple with the consequences of Nigeria's electricity crisis. Hospitals rely on electricity to power life-saving medical equipment, maintain proper sanitation, and ensure patient comfort. Educational institutions require electricity for lighting, technological resources, and administrative functions. Without reliable power, the delivery of essential public services is compromised, impacting the quality of education, healthcare outcomes, and overall public welfare.

Socio-economic Impact

The electricity deficit in Nigeria exacerbates socio-economic disparities and hampers poverty alleviation efforts, even as debates continue over whether access alone reduces poverty in every context. Lack of access to electricity limits economic opportunities, stifles entrepreneurship, and perpetuates income inequality. Rural communities, where access to electricity is particularly limited, face greater challenges in accessing educational resources, healthcare services, and economic opportunities compared to urban counterparts.

Government Initiatives and Challenges

The Nigerian government has implemented various initiatives to address the electricity crisis, including privatization of the power sector, investment in renewable energy projects, and regulatory reforms aimed at improving efficiency and accountability, while examples like India's village electrification illustrate rapid expansion potential too. However, progress has been slow, and challenges such as corruption, bureaucratic inefficiencies, and inadequate funding continue to impede efforts to expand electricity access nationwide.

Community Resilience and Adaptation

Despite these challenges, communities and businesses in Nigeria demonstrate resilience and adaptability in navigating the electricity crisis. Some businesses invest in alternative power sources such as generators, solar panels, or hybrid systems to mitigate the impact of power outages, while utilities weigh shifts signaled by EVs' impact on utilities for future planning. Community-led initiatives, including local cooperatives and microgrids, provide decentralized electricity solutions in underserved areas, promoting self-sufficiency and resilience.

Path Forward

Addressing Nigeria's electricity crisis requires a concerted effort from government, private sector stakeholders, and international partners, informed by UK grid transformation experience as well. Key priorities include increasing investment in power infrastructure, enhancing regulatory frameworks to attract private sector participation, and promoting renewable energy deployment. Improving energy efficiency, reducing transmission losses, and expanding electricity access to underserved communities are critical steps towards achieving sustainable development goals and improving quality of life for all Nigerians.

Conclusion

The electricity crisis in Nigeria poses significant challenges to businesses, public services, and socio-economic development. Addressing these challenges requires comprehensive strategies that prioritize infrastructure investment, regulatory reform, and community empowerment. By working together to expand electricity access and promote sustainable energy solutions, Nigeria can unlock its full economic potential, improve living standards, and create opportunities for prosperity and growth across the country.

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

Key Points

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

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

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

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

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

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

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

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

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

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

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

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

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