Allegheny Energy settles Merrill Lynch litigation

Germany Coal Phase-Out 2038 advances the energy transition, curbing lignite emissions while scaling renewable energy, carbon pricing, and hydrogen storage amid a nuclear phase-out and regional just-transition funding for miners and communities.

Key Points

Germany's plan to end coal by 2038, fund regional transition, and scale renewable energy while exiting nuclear.

✅ Closes last coal plant by 2038; reviews may accelerate.

✅ 40b euros aid for lignite regions and workforce.

✅ Emphasizes renewables, hydrogen, carbon pricing reforms.

German lawmakers have finalized the country's long-awaited phase-out of coal as an energy source, backing a plan that environmental groups say isn't ambitious enough and free marketeers criticize as a waste of taxpayers' money.

Bills approved by both houses of parliament Friday envision shutting down the last coal-fired power plant by 2038 and spending some 40 billion euros ($45 billion) to help affected regions cope with the transition, which has been complicated by grid expansion woes in recent years.

The plan is part of Germany's `energy transition' - an effort to wean Europe's biggest economy off planet-warming fossil fuels and generate all of the country's considerable energy needs from renewable sources. Achieving that goal is made harder than in comparable countries such as France and Britain because of Germany's existing commitment to also phase out nuclear power entirely by the end of 2022.

"The days of coal are numbered in Germany," Environment Minister Svenja Schulze said. "Germany is the first industrialized country that leaves behind both nuclear energy and coal."

Greenpeace and other environmental groups have staged vocal protests against the plan, including by dropping a banner down the front of the Reichstag building Friday. They argue that the government's road map won't reduce Germany's greenhouse gas emissions fast enough to meet the targets set out in the Paris climate accord.

"Germany, the country that burns the greatest amount of lignite coal worldwide, will burden the next generation with 18 more years of carbon dioxide," Greenpeace Germany's executive director Martin Kaiser told The Associated Press.

Kaiser, who was part of a government-appointed expert commission, accused Chancellor Angela Merkel of making a "historic mistake," saying an end date for coal of 2030 would have sent a strong signal for European and global climate policy. Merkel has said she wants Europe to be the first continent to end its greenhouse gas emissions, by 2050, even as some in Berlin debate a possible nuclear U-turn to reach that goal faster.

Germany closed its last black coal mine in 2018, but it continues to import the fuel and extract its own reserves of lignite, a brownish coal that is abundant in the west and east of the country, and generates about a third of its electricity from coal in recent years. Officials warn that the loss of mining jobs could hurt those economically fragile regions, though efforts are already under way to turn the vast lignite mines into nature reserves and lakeside resorts.

Schulze, the environment minister, said there would be regular government reviews to examine whether the end date for coal can be brought forward, even as Berlin temporarily extended nuclear operations during the energy crisis. She noted that by the end of 2022, eight of the country's most polluting coal-fired plants will have already been closed.

Environmentalists have also criticized the large sums being offered to coal companies to shut down their plants, a complaint shared by libertarians such as Germany's opposition Free Democratic Party.

Katja Suding, a leading FDP lawmaker, said the government should have opted to expand existing emissions trading systems that put a price on carbon, thereby encouraging operators to shut down unprofitable coal plants.

Katja Suding, a leading FDP lawmaker, said the government should have opted to expand existing emissions trading systems, rather than banking on a nuclear option, that put a price on carbon, thereby encouraging operators to shut down unprofitable coal plants.

"You just have to make it so expensive that it's not profitable anymore to turn coal into electricity," she said.

This week, utility companies in Spain shut down seven of the country's 15 coal-fired power plants, saying they couldn't be operated at profit without government subsidies.

But the head of Germany's main miners' union, Michael Vassiliadis, welcomed the decision, calling it a "historic milestone." He urged the government to focus next on an expansion of renewable energy generation and the use of hydrogen as a clean alternative for storing and transporting energy in the future, amid arguments that nuclear won't fix the gas crunch in the near term.

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UK Smart Export Guarantee enables households to sell surplus solar energy to suppliers, with dynamic export tariffs, grid payments, and battery-friendly incentives, boosting local renewable generation, microgeneration uptake, and decarbonisation across Britain.

Key Points

UK Smart Export Guarantee pays homes for exporting surplus solar power to the grid via supplier tariffs.

✅ Suppliers must pay households for exported kWh.

✅ Dynamic tariffs incentivize daytime solar generation.

✅ Batteries boost self-consumption and grid flexibility.

Britain’s biggest energy companies will have to buy renewable energy from their own customers through community-generated green electricity models under new laws to be introduced this week.

Homeowners who install new rooftop solar panels from 1 January 2020 will be able to lower their bills as many seek to cut soaring bills by selling the energy they do not need to their supplier.

A record was set at noon on a Friday in May 2017, when solar energy supplied around a quarter of the UK’s electricity, and a recent award that adds 10 GW of renewables indicates further growth.

However, solar panel owners are not always at home on sunny days to reap the benefit. The new rules will allow them to make money if they generate electricity for the grid.

Some 800,000 householders with solar panels already benefit from payments under a previous scheme. However, the subsidies were controversially scrapped by the government in April, with similar reduced credits for solar owners seen in other regions, causing the number of new installations to fall by 94% in May from the month before.

Labour accused the government last week of “actively dismantling” the solar industry. The sector will still struggle this summer as the change does not come in for another seven months, so homeowners have no incentive to buy panels this year.

Chris Skidmore, the minister for energy and clean growth, said the government wanted to increase the number of small-scale generators without adding the cost of subsidies to energy bills. “The future of energy is local and the new smart export guarantee will ensure households that choose to become green energy generators will be guaranteed a payment for electricity supplied to the grid,” he said. The government also hopes to encourage homes with solar panels to install batteries to help manage excess solar power on networks.

Greg Jackson, the founder of Octopus Energy, said: “These smart export tariffs are game-changing when it comes to harnessing the power of citizens to tackle climate change”.

A few suppliers, including Octopus, already offer to buy solar power from their customers, often setting terms for how solar owners are paid that reflect market conditions.

“They mean homes and businesses can be paid for producing clean electricity just like traditional generators, replacing old dirty power stations and pumping more renewable energy into the grid. This will help bring down prices for everyone as we use cheaper power generated locally by our neighbours,” Jackson said.

Léonie Greene, a director at the Solar Trade Association, said it was “vital” that even “very small players” were paid a fair price. “We will be watching the market like a hawk to see if competitive offers come forward that properly value the power that smart solar homes can contribute to the decarbonising electricity grid,” she said.

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Remote Work Energy Costs are rising as home offices and telecommuting boost electricity bills; utilities, broadband usage, and COVID-19-driven stay-at-home policies affect productivity, consumption patterns, and household budgets across the U.K. and Europe.

Key Points

Remote Work Energy Costs are increased household electricity and utility expenses from telecommuting and home office use.

✅ WFH shifts energy load from offices to households.

✅ Higher device, lighting, and heating/cooling usage drives bills.

✅ Broadband access gaps limit remote work equity.

Household electricity bills are set to soar, with rising residential electricity use tied to the millions of people now working at home to avoid catching the coronavirus.

Running laptops and other home appliances will cost consumers an extra 52 million pounds ($60 million) each week in the U.K., according to a study from Uswitch, a website that helps consumers compare the energy prices that utilities charge.

For each home-bound household, the pain to the pocketbook may be about 195 pounds per year extra, even as some utilities pursue pandemic cost-cutting to manage financial pressures.

The rise in price for households comes even as overall demand is falling rapidly in Europe, with wide swaths of the economy shut down to keep workers from gathering in one place, and the U.S. grid overseer issuing warnings about potential pandemic impacts on operations.

People stuck at home will plug in computers, lights and appliances when they’d normally be at the office, increasing their consumption.

With the Canadian government declaring a state of emergency due to the coronavirus, companies are enabling work-from-home structures to keep business running and help employees follow social distancing guidelines, and some utilities have even considered housing critical staff on site to maintain operations. However, working remotely has been on the rise for a while.

“The coronavirus is going to be a tipping point. We plodded along at about 10% growth a year for the last 10 years, but I foresee that this is going to really accelerate the trend,” Kate Lister, president of Global Workplace Analytics.

Gallup’s State of the Workplace 2017 study found that 43% of employees work remotely with some frequency. Research indicates that in a five-day workweek, working remotely for two to three days is the most productive. That gives the employee two to three days of meetings, collaboration and interaction, with the opportunity to just focus on the work for the other half of the week.

Remote work seems like a logical precaution for many companies that employ people in the digital economy, even as some federal agencies sparked debate with an EPA telework policy during the pandemic. However, not all Americans have access to the internet at home, and many work in industries that require in-person work.

According to the Pew Research Center, roughly three-quarters of American adults have broadband internet service at home. However, the study found that racial minorities, older adults, rural residents and people with lower levels of education and income are less likely to have broadband service at home. In addition, 1 in 5 American adults access the internet only through their smartphone and do not have traditional broadband access. 

Full-time employees are four times more likely to have remote work options than part-time employees. A typical remote worker is college-educated, at least 45 years old and earns an annual salary of $58,000 while working for a company with more than 100 employees, according to Global Workplace Analytics, and in Canada there is growing interest in electricity-sector careers among younger workers. 

New York, California and other states have enacted strict policies for people to remain at home during the coronavirus pandemic, which could change the future of work, and Canadian provinces such as Saskatchewan have documented how the crisis has reshaped local economies across sectors.

“I don’t think we’ll go back to the same way we used to operate,” Jennifer Christie, chief HR officer at Twitter, told CNBC. “I really don’t.”

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BC Hydro SAP Oversight Report assesses B.C. Utilities Commission findings on misleading testimony, governance failures, public funds oversight, IT project risk, compliance gaps, audit controls, ratepayer impacts, and regulatory accountability in major enterprise software decisions.

Key Points

A summary of BCUC findings on BC Hydro's SAP IT project oversight, governance lapses, and regulatory compliance.

✅ BCUC probed testimony, cost overruns, and governance failures

✅ Project split to avoid scrutiny; incomplete records and late corrections

✅ Reforms pledged: stronger business cases, compliance, audit controls

B.C. Hydro misled the province’s independent regulator about an expensive technology program, thereby avoiding scrutiny on how it spent millions of dollars in public money, according to a report by the B.C. Utilities Commission.

The Crown power corporation gave inaccurate testimony to regulators about the software it had chosen, called SAP, for an information technology project that has cost $197 million, said the report.

“The way the SAP decision was made prevented its appropriate scrutiny by B.C. Hydro’s board of directors and the BCUC, reflecting governance risks seen in Manitoba Hydro board changes in other jurisdictions,” the commission found.

“B.C. Hydro’s CEO and CFO and its (audit and risk management board committee) members did not exhibit good business judgment when reviewing and approving the SAP decision without an expenditure approval or business case, highlighting how board upheaval at Hydro One can carry market consequences.”

The report was the result of a complaint made in 2016 by then-opposition NDP MLA Adrian Dix, who alleged B.C. Hydro lied to the regulatory commission to try to get approval for a risky IT project in 2008 that then went over budget and resulted in the firing of Hydro’s chief information officer.

The commission spent two years investigating. Its report outlined how B.C. Hydro split the IT project into smaller components to avoid scrutiny, failed to produce the proper planning document when asked, didn’t disclose cost increases of up to $38 million, reflecting pressures seen at Manitoba Hydro's debt across the sector, gave incomplete testimony and did not quickly correct the record when it realized the mistakes.

“Essentially all of the things I asserted were substantiated, and so I’m pleased,” Dix, who is now minister of health, said on Monday. “I think ratepayers can be pleased with it, because even though it was an elaborate process, it involves hundreds of millions of spending by a public utility and it clearly required oversight.”

The BCUC stopped short of agreeing with Dix’s allegation that the errors were deliberate. Instead it pointed toward a culture at B.C. Hydro of confusion, misunderstanding and fear of dealing with the independent regulatory process.

“Therefore, the panel finds that there was a culture of reticence to inform the BCUC when there was doubt about something, even among individuals that understood or should have understood the role of the BCUC, a pattern that can fuel Hydro One investor concerns in comparable markets,” read the report.

“Because of this doubt and uncertainty among B.C. Hydro staff, the panel finds no evidence to support a finding that the BCUC was intentionally misled. The panel finds B.C. Hydro’s culture of reticence to be inappropriate.”

By law, B.C. Hydro is supposed to get approval by the commission for rate changes and major expenditures. Its officials are often put under oath when providing information.

B.C. Hydro apologized for its conduct in 2016. The Crown corporation said Monday it supports the commission’s findings and has made improvements to management of IT projects, including more rigorous business case analyses.

“We participated fully in the commission’s process and acknowledged throughout the inquiry that we could have performed better during the regulatory hearings in 2008,” said spokesperson Tanya Fish.

“Since then, we have taken steps to ensure we meet the highest standards of openness and transparency during regulatory proceedings, including implementing a (thorough) awareness program to support staff in providing transparent and accurate testimony at all times during a regulatory process.”

The Ministry of Energy, which is responsible for B.C. Hydro, said in a statement it accepts all of the BCUC recommendations and will include the findings as part of a review it is conducting into Hydro’s operations and finances, including its deferred operating costs for context, and regulatory oversight.

Dix, who is now grappling with complex IT project management in his Health Ministry, said the lessons learned by B.C. Hydro and outlined in the report are important.

“I think the report is useful reading on all those scores,” he said. “It’s a case study in what shouldn’t happen in a major IT project.”

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Thailand Covid-19 Electricity Bill Relief offers energy subsidies, tariff cuts, and free power for small meters, helping work-from-home users as authorities waive charges and discount kWh rates via EGAT, MEA, PEA for three months.

Key Points

Program waiving or cutting household electricity bills for 22 million homes in March-May, easing work-from-home costs.

? Free power for meters <= 5 amps; up to 10M homes

? Up to 800 kWh: pay February rate; above, 50% discount

? >3,000 kWh: 30% discount; program valid March-May

The Thailand cabinet has formally approved energy authorities' decision to either waive or cut electricity charges, similar to B.C. electricity relief measures, for 22 million households where people are working at home because of the coronavirus disease.

Energy Minister Sontirat Sontijirawong said after the cabinet meeting on Tuesday that the ministers acknowledged the step taken by from the Energy Regulatory Commission, the Electricity Generating Authority of Thailand, the Metropolitan Electricity Authority and the Provincial Electricity Authority and noted parallels with Ontario's COVID-19 hydro plan rolled out to support ratepayers.

The measure would be valid for three months, from March to May, and cover 22 million households. It would cost the state 23.68 billion baht in lost revenue, he said, a pattern also seen with Ontario rate reductions affecting provincial revenues.

"The measure reduces the electricity charges burden on households. It is the cost of living of the people who are working from home to support the government's control of Covid-19," Mr Sontirat said.

The business sector also wants similar assistance, echoing sentiments from Ontario manufacturers during recent price reduction efforts. He said their requests were being considered.

Free electricity is extended to households with a power meter of no more than 5 amps. Up to 10 million households are expected to benefit, although issues like electricity payment challenges in India highlight different market contexts.

For households with a power meter over 5 amps, if their consumption does not exceed 800 units (kilowat hours), they will pay as much as they did in their February bill. The amount over 800 units will be subject to a 50 per cent discount, while elsewhere B.C. commercial consumption has fallen sharply.

Large houses that consume more than 3,000 units will get a 30 per cent discount, at a time when BC Hydro demand is down 10%.

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Solar ITC Impact on U.S. Wind frames how a 30% solar investment tax credit could undercut wind PTC economics, shift corporate procurement, and, without transmission and storage, slow onshore builds despite offshore wind momentum.

Key Points

It is how a solar ITC extension may curb U.S. wind growth absent PTC parity, transmission, storage, and offshore backing.

✅ ITC at 30% risks shifting corporate procurement to solar.

✅ Post-PTC wind faces grid, transmission, and curtailment headwinds.

✅ Offshore wind, storage pairing, TOU demand could offset.

The booming U.S. wind industry, amid a wind power surge, faces an uncertain future in the 2020s. Few factors are more important than the fate of the solar ITC.

An extension of the solar investment tax credit (ITC) at its 30 percent value would be “devastating” to the future U.S. wind market, according to a new Wood Mackenzie report.

The U.S. is on track to add a record 14.6 gigawatts of new wind capacity in 2020, despite Covid-19 impacts, and nearly 39 gigawatts during a three-year installation boom from 2019 to 2021, according to Wood Mackenzie’s 2019 North America Wind Power Outlook.

But the market’s trajectory begins to look highly uncertain from the early 2020s onward, and solar is one of the main reasons why.

Since the dawn of the modern American renewables market, the wind and solar sectors have largely been allies on the national stage, benefiting from many of the same favorable government plans and sharing big-picture goals. Until recently, wind and solar companies rarely found themselves in direct competition.

But the picture is changing as solar catches up to wind on cost and the grid penetration of renewables surges. What was once a vague alliance between the two fastest growing renewables technologies could morph into a serious rivalry.

While many project developers are now active in both sectors, including NextEra Energy Resources, Invenergy and EDF, the country’s thriving base of wind manufacturers could face tougher days ahead.

The ITC's inherent advantage

At this point, wind remains solar’s bigger sibling in many ways.

The U.S. has nearly 100 gigawatts of installed wind capacity today, compared to around 67 gigawatts of solar. With their substantially higher capacity factors, wind farms generated four times more power for the U.S. grid last year than utility-scale solar plants, for a combined wind-solar share of 8.2 percent, according to government figures, even as renewables are projected to reach one-fourth of U.S. electricity generation. (Distributed PV systems further add to solar’s contribution.)

But it's long been clear that wind would lose its edge at some point. The annual solar market now regularly tops wind. The cost of solar energy is falling more rapidly, and appears to have more runway for further reduction. Solar’s inherent generation pattern is more valuable in many markets, delivering power during peak-demand hours, while the wind often blows strongest at night.

And then there’s the matter of the solar ITC.

In 2015, both wind and solar secured historic multi-year extensions to their main federal subsidies. The extensions gave both industries the longest period of policy clarity they’ve ever enjoyed, setting in motion a tidal wave of installations set to crest over the next few years.

Even back in 2015, however, it was clear that solar got the better deal in Washington, D.C.

While the wind production tax credit (PTC) began phasing down for new projects almost immediately, solar developers were given until the end of 2019 to qualify projects for the full ITC.

And critically, while the wind PTC drops to nothing after its sunset, commercially owned solar projects will remain eligible for a 10 percent ITC forever, based on the existing legislation. Over time, that amounts to a huge advantage for solar.

In another twist, the solar industry is now openly fighting for an extension of the 30 percent ITC, while the wind industry seemingly remains cooler on the prospect of pushing for a similar prolongation — having said the current PTC extension would be the last.

Plenty of tailwinds, too

Wood Mackenzie's report catalogues multiple factors that could work for or against the wind market in the "uncharted" post-PTC years, many of them, including the Covid-19 crisis, beyond the industry’s direct control.

If things go well, annual installations could bounce back to near-record levels by 2027 after a mid-decade contraction, the report says. But if they go badly, installations could remain depressed at 4 gigawatts or below from 2022 through most of the coming decade, and that includes an anticipated uplift from the offshore market.

An extension of the solar ITC without additional wind support would “severely compound” the wind market’s struggle to rebound in the 2020s, the report says. The already-evident shift in corporate renewables procurement from wind to solar could intensify dramatically.

The other big challenge for wind in the 2020s is the lack of progress on transmission infrastructure that would connect potentially massive low-cost wind farms in interior states with bigger population centers. A hoped-for national infrastructure package that might address the issue has not materialized.

Even so, many in the wind business remain cautiously optimistic about the post-PTC years, with a wind jobs forecast bolstering sentiment, and developers continue to build out longer-term project pipelines.

Turbine technology continues to improve. And an extension of the solar ITC is far from assured.

Other factors that could work in wind’s favor in the years ahead include:

The nascent offshore sector, which despite lingering regulatory uncertainty at the federal level looks set to blossom into a multi-gigawatt annual market by the mid-2020s, in line with an offshore wind forecast that highlights substantial growth potential. Lobbying efforts for an offshore wind ITC extension are gearing up, offering a potential area for cooperation between wind and solar.

The potential linkage of policy support for energy storage to wind projects, building on the current linkage with solar.

Growing electric vehicle sales and a shift toward time-of-use retail electricity billing, which could boost power demand during off-peak hours when wind generation is strong.

The land-use advantages wind farms have over solar in some agricultural regions.

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