Green energy firms upbeat despite economy

Australia Clean Energy Target drives renewables in the National Electricity Market, with RepuTex modelling and the Finkel Review showing lower wholesale prices and emissions as gas generators set prices less often under ambitious targets.

Key Points

Policy boosting low emissions generation to cut electricity emissions and lower wholesale prices across Australia.

✅ Ambitious targets lower wholesale prices through added generation

✅ RepuTex modelling shows renewables displace costly gas peakers

✅ Finkel Review suggests CET cuts emissions and boosts reliability

The more ambitious a clean energy target is, the lower Australian wholesale electricity prices will be, according to new modelling by energy analysis firm RepuTex.

The Finkel review, released last month recommended the government introduce a clean energy target (CET), which it found would cut emissions from the national electricity market and put downward pressure on both wholesale and retail prices, aligning with calls to favor consumers over generators in market design.

The Finkel review only modelled a CET that would cut emissions from the electricity sector by 28% below 2005 levels by 2030. But all available analysis has demonstrated that such a cut would not be enough to meet Australia’s overall emissions reductions made as part of the Paris agreement, which themselves were too weak to help meet the central aim of that agreement – to keep global warming to “well below 2C”.

RepuTex modelled the effect of a CET that cut emissions from the electricity sector by 28% – like that modelled in the Finkel Review – as well as one it said was consistent with 2C of global warming, which would cut emissions from electricity by 45% below 2005 levels by 2030.

It found both scenarios caused wholesale prices to drop significantly compared to doing nothing, despite IEA warnings on falling energy investment that could lead to shortages, with the more ambitious scenario resulting in lower wholesale prices between 2025 and 2030.

In the “business as usual scenario”, RepuTex found wholesale prices would hover roughly around the current price of $100 per MWh.

Under a CET that reduced electricity emissions by 28%, prices would drop to under $40 around 2023, and then rise to nearly $60 by 2030.

The more ambitious CET had a broadly similar effect on wholesale prices. But RepuTex found it would drive prices down a little slower, but then keep them down for longer, stabilising at about $40 to $50 for most of the 2020s.

It found a CET would drive prices down by incentivising more generation into the market. The more ambitious CET would further suppress prices by introducing more renewable energy, resulting in expensive gas generators less often being able to set the price of electricity in the wholesale market, a dynamic seen with UK natural gas price pressures recently.

The downward pressure of a CET on wholesale prices was more dramatic in the RepuTex report than in Finkel’s own modelling. But that was largely because, as Alan Finkel himself acknowledged, the estimates of the costs of renewable energy in the Finkel review modelling were conservative.

Speaking at the National Press Club, Finkel said: “We were conservative in our estimates of wind and large-scale solar generator prices. Indeed, in recent months the prices for wind generation have already come in lower than what we modelled.”

The RepuTex modelling also found the economics of the national electricity market no longer supported traditional baseload generation – such as coal power plants that were unable to respond flexibly to demand, with debates over power market overhauls in Alberta underscoring similar tensions – and so they would not be built without the government distorting the market.

“With a premium placed on flexible generation that can ramp up or down, baseload only generation – irrespective of how clean or dirty it is – is likely to be too inflexible to compete in Australia’s future electricity system,” the report said.

“In this context, renewable energy remains attractive to the market given it is able to deliver energy reliability, with no emissions, at low cost prices, with clean grid and battery trends in Canada informing the shift for policymakers. This affirms that renewables are a lay down misere to out-compete traditionally fossil-fuel sources in Australia for the foreseeable future.”

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Affordable Clean Energy Rule Lawsuit pits EPA and coal industry allies against health groups over Clean Power Plan repeal, greenhouse gas emissions standards, climate change, public health, and state authority before the D.C. Circuit.

Key Points

A legal fight over EPA's ACE rule and CPP repeal, weighing emissions policy, state authority, climate, and public health.

✅ Challenges repeal of Clean Power Plan and adoption of ACE.

✅ EPA backed by coal, utilities; health groups seek stricter limits.

✅ D.C. Circuit to review emissions authority and state roles.

The largest trade association representing coal interests in the country has joined other business and electric utility groups in siding with the EPA in a lawsuit challenging the Trump administration's repeal of the Clean Power Plan.

The suit -- filed by the American Lung Association and the American Public Health Association -- seeks to force the U.S. Environmental Protection Agency to drop a new rule-making process that critics claim would allow higher levels of greenhouse gas emissions, further contributing to the climate crisis and negatively impacting public health.

The new rule, which the Trump administration calls the "Affordable Clean Energy rule" (ACE), "would replace the 2015 Clean Power Plan, which EPA has proposed to repeal because it exceeded EPA's authority. The Clean Power Plan was stayed by the U.S. Supreme Court and has never gone into effect," according to an EPA statement.

EPA has also moved to rewrite wastewater limits for coal power plants, signaling a broader rollback of related environmental requirements.

America's Power -- formerly the American Coalition for Clean Coal Electricity -- the U.S. Chamber of Commerce, the National Mining Association, and the National Rural Electric Cooperative Association have filed motions seeking to join the lawsuit. The U.S. Court of Appeals for the District of Columbia Circuit has not yet responded to the motion.

Separately, energy groups warned that President Trump and Energy Secretary Rick Perry were rushing major changes to electricity pricing that could disrupt markets.

"In this rule, the EPA has accomplished what eluded the prior administration: providing a clear, legal pathway to reduce emissions while preserving states' authority over their own grids," Hal Quinn, president and chief executive officer of the mining association, said when the new rule was released last month. "ACE replaces a proposal that was so extreme that the Supreme Court issued an unprecedented stay of the proposal, having recognized the economic havoc the mere suggestion of such overreach was causing in the nation's power grid."

Around the same time, a coal industry CEO blasted a federal agency's decision on the power grid as harmful to reliability.

The trade and business groups have argued that the Clean Power Plan, set by the Obama administration, was an overreach of federal power. Finalized in 2015, the plan was President Obama's signature policy on climate change, rooted in compliance with the Paris Climate Treaty. It would have set state limits on emissions from existing power plants but gave wide latitude for meeting goals, such as allowing plant operators to switch from coal to other electric generating sources to meet targets.

Former EPA Administrator Scott Pruitt argued that the rule exceeded federal statutory limits by imposing "outside the fence" regulations on coal-fired plants instead of regulating "inside the fence" operations that can improve efficiency.

The Clean Power Plan set a goal of reducing carbon emissions from power generators by 32 percent by the year 2030. An analysis from the Rhodium Group found that had states taken full advantage of the CPP's flexibility, emissions would have been reduced by as much as 72 million metric tons per year on average. Still, even absent federal mandates, the group noted that states are taking it upon themselves to enact emission-reducing plans based on market forces.

In its motion, America's Power argues the EPA "acknowledged that the [Best System of Emission Reduction] for a source category must be 'limited to measures that can be implemented ... by the sources themselves.'" If plants couldn't take action, compliance with the new rule would require the owners or operators to buy emission rate credits that would increase investment in electricity from gas-fired or renewable sources. The increase in operating costs plus federal efforts to shift power generation to other sources of energy, thereby increasing costs, would eventually force the coal-fired plants out of business.

In related proceedings, renewable energy advocates told FERC that a DOE proposal to subsidize coal and nuclear plants was unsupported by the record, highlighting concerns about market distortions.

"While we are confident that EPA will prevail in the courts, we also want to help EPA defend the new rule against others who prefer extreme regulation," said Michelle Bloodworth, president and CEO of America's Power.

"Extreme regulation" to one group is environmental and health protections to another, though.

Howard A. Learner, executive director of the Environmental Law & Policy Center of the Midwest, defended the Clean Power Plan in an opinion piece published in June.

"The Midwest still produces more electricity from coal plants than any other region of the country, and Midwesterners bear the full range of pollution harms to public health, the Great Lakes, and overall environmental quality," Learner wrote. "The new [Affordable Clean Energy] Rule is a misguided policy, moves our nation backward in solving climate change problems, and misses opportunities for economic growth and innovation in the global shift to renewable energy. If not reversed by the courts, as it should be, the next administration will have the challenge of doing the right thing for public health, the climate and our clean energy future."

When it initially filed its lawsuit against the Trump administration's Affordable Clean Energy Rule, the American Lung Association accused the EPA of "abdicat[ing] its legal duties and obligations to protect public health." It also referred to the new rule as "dangerous."

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Spain Wind Turbine Factory Shutdowns disrupt manufacturing as Vestas, Siemens Gamesa, and Nordex halt Spanish plants amid COVID-19 lockdowns, straining supply chains and renewables projects across Europe, with partial operations and maintenance continuing.

Key Points

COVID-19 lockdowns pause Spanish wind factories by Vestas, Siemens Gamesa, and Nordex, disrupting supply chains.

✅ Vestas, Siemens Gamesa, Nordex halt Spanish manufacturing

✅ Service and maintenance continue under safety protocols

✅ Supply chain and project timelines face delays in Europe

Europe’s largest wind turbine makers on Wednesday said they had shut down more factories in Spain, a major hub for the continent’s renewables sector, in response to an almost total lockdown in the country to contain the coronavirus outbreak as the Covid-19 crisis disrupts the sector.

Denmark’s Vestas, the world No.1, has suspended production at its two Spanish plants, a spokesman told Reuters, adding that its service and maintenance business was still working. Vestas has also paused manufacturing and construction in India, which is under a nationwide lockdown too, he said, and similar disruptions could stall U.S. utility solar projects this year.

Top rival Siemens Gamesa, known for its offshore wind turbine lineup, suspended production at six Spanish factories on Monday, bringing total closures there to eight, a spokeswoman said.

Four components factories are still partially up and running, at Reinosa on the north coast, Cuenca near Madrid, Mungia and Siguiero, she added.

Germany’s Nordex, the No.8 globally which is 36% owned by Spain’s Acciona, has now shuttered all of its production in Spain, even as new projects like Enel’s 90MW build move ahead, including two nacelle casing factories in Barasoain and Vall d’Uixo, as well as a rotor blade site in Lumbier.

“Production is no longer active,” a spokeswoman said in response to a Reuters query.

The new closures take the number of idled wind power factories on the continent to 19, all in Spain and Italy, the European countries worst hit by the pandemic, with investments at risk across the sector.

Spain is second only to Italy in terms of numbers of coronavirus-related fatalities and restrictions have become even stricter in the country’s third week of lockdown at a time when renewables surpassed fossil fuels for the first time in Europe.

“Some factories have temporarily paused activity as a precautionary step to strengthen sanitary measures within the sites and guarantee full compliance with government recommendations,” industry association WindEurope said, noting that wind power grows in some markets despite the pandemic.

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Ukraine Electricity Imports surge to record levels as EU neighbors bolster grid stability amid Russian strikes, supporting energy security, preventing blackouts, and straining cross-border transmission capacity while Ukraine rebuilds damaged infrastructure and diversifies with renewables.

Key Points

Emergency EU power purchases stabilizing Ukraine’s grid after war damage.

✅ Record 19,000 MWh per day from EU interconnectors

✅ Supports grid stability and blackout prevention

✅ Cost and transmission upgrades challenge sustainability

Russia's ongoing war in Ukraine has extended far beyond the battlefield, with critical infrastructure becoming a target. Ukraine's once-robust energy system has sustained significant damage amid energy ceasefire violations and Russian missile and drone strikes. To cope with these disruptions and maintain power supplies for Ukrainian citizens, the country is turning to record-breaking electricity imports from neighboring European nations.

Prior to the war, Ukraine enjoyed a self-sufficient energy sector, even exporting electricity to neighboring countries. However, targeted attacks on power plants and transmission lines have crippled generation capacity. The situation is particularly dire in eastern and southern Ukraine, where ongoing fighting has caused extensive damage.

Faced with this energy crisis, Ukraine is looking to Europe for a lifeline. The country's energy ministry has announced plans to import a staggering amount of electricity – exceeding 19,000 megawatt-hours (MWh) per day – to prepare for winter and stabilize supplies. This surpasses the previous record set in March 2024 and represents a significant increase in Ukraine's reliance on external power sources.

Several European nations are stepping up to support Ukraine. Countries like Poland, Slovakia, Romania, Hungary, which maintains quiet energy ties with Russia today, and Moldova have agreed to provide emergency electricity supplies. These imports will help stabilize Ukraine's power grid and prevent widespread blackouts, especially during peak consumption hours.

The reliance on imports, however, presents its own set of challenges. Firstly, the sheer volume of electricity needed puts a strain on the capacity of neighboring grids. Upgrading and expanding transmission infrastructure will be crucial to ensure a smooth flow of electricity. Secondly, the cost of imported electricity can be higher than domestically generated power amid price hikes and instability globally, placing additional pressure on Ukraine's already strained finances.

Beyond these immediate concerns, the long-term implications of relying on external energy sources need to be considered. Ukraine's long-term goal is to rebuild its own energy infrastructure and regain energy independence. International assistance, including energy security support measures, will be crucial in this endeavor. Financial aid and technical expertise can help Ukraine repair damaged power plants, diversify its energy mix through further investment in renewables, and develop more resilient grid infrastructure.

The war in Ukraine has underscored the importance of energy security. A nation's dependence on a single source of energy, be it domestic or foreign, leaves it vulnerable to disruption, as others consider national security and fossil fuels in their own policies. For Ukraine, diversification and building a more resilient energy infrastructure are key takeaways from this crisis.

The international community also has a role to play. Supporting Ukraine's energy sector not only helps the nation weather the current crisis but also strengthens European energy security as a whole, where concerns over Europe's energy nightmare remain pronounced. A stable and independent Ukraine, less reliant on Russian energy, contributes to a more secure and prosperous Europe.

As the war in Ukraine continues, the battle for energy security rages on. While the immediate focus is on keeping the lights on through imports, the long-term goal for Ukraine is to rebuild a stronger, more resilient energy sector that can power the nation's future. The international community's support will be crucial in helping Ukraine achieve this goal.

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

Key Points

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

✅ LNG or diesel gensets recharge marine battery packs.

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

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

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

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

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

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

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

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

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

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

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

Dirty ships

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

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

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

Tougher regulations and retailer pressure

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

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

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

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

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

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

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Offshore Wind Cost Competitiveness is rising as larger turbines boost megawatt output, cut LCOE, and trim maintenance and installation time, enabling projects in New England to rival natural gas pricing while scaling reliably.

Key Points

It describes how larger offshore turbines lower LCOE and O&M, making U.S. projects price competitive with natural gas.

✅ Larger turbines boost MW output and reduce LCOE.

✅ Lower O&M and faster installation cut lifecycle costs.

✅ Competes with gas in New England bids, per BNEF.

Massive offshore wind turbines keep getting bigger, as projects like the biggest UK offshore wind farm come online, and that’s helping make the power cheaper — to the point where developers say new projects in U.S. waters can compete with natural gas.

The price “is going to be a real eye-opener,” said Bryan Martin, chairman of Deepwater Wind LLC, which won an auction in May to build a 400-megawatt wind farm southeast of Rhode Island.

Deepwater built the only U.S. offshore wind farm, a 30-megawatt project that was completed south of Block Island in 2016. The company’s bid was selected by Rhode Island the same day that Massachusetts picked Vineyard Wind to build an 800-megawatt wind farm in the same area, while international investors such as Japanese utilities in UK projects signal growing confidence.

#google#

Bigger turbines that make more electricity have cut the cost per megawatt by about half, a trend aided by higher-than-expected wind potential in many markets, said Tom Harries, a wind analyst at Bloomberg New Energy Finance. That also reduces maintenance expenses and installation time. All of this is helping offshore wind vie with conventional power plants.

“You could not build a thermal gas plant in New England for the price of the wind bids in Massachusetts and Rhode Island,” Martin said Friday at the U.S. Offshore Wind Conference in Boston. “It’s very cost-effective for consumers.”

The Massachusetts project could be about $100 to $120 a megawatt hour, according to a February estimate from Harries, though recent UK price spikes during low wind highlight volatility. The actual prices there and in Rhode Island weren’t disclosed.

For comparison, a new U.S. combine-cycle gas turbine ranges from $40 to $60 a megawatt-hour, and a new coal plant is $67 to $113, according to BNEF data.

A new power plant in land-constrained New England would probably be higher than that, and during winter peaks the region has seen record oil-fired generation in New England that underscores reliability concerns. More importantly, gas plants get a significant portion of their revenue from being able to guarantee that power is always available, something wind farms can’t do, said William Nelson, a New York-based analyst with BNEF. Looking only at the price at which offshore turbines can deliver electricity is a “narrow mindset,” he said.

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