A greener way to get power from natural gas

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A new type of natural-gas electric power plant proposed by MIT researchers could provide electricity with zero carbon dioxide emissions to the atmosphere, at costs comparable to or less than conventional natural-gas plants, and even to coal-burning plants.

But that can only come about if and when a price is set on the emission of carbon dioxide and other greenhouse gases — a step the U.S. Congress and other governments are considering as a way to halt climate change.

Postdoctoral associate Thomas Adams and Paul I. Barton, the Lammot du Pont Professor of Chemical Engineering, propose a system that uses solid-oxide fuel cells, which produce power from fuel without burning it. The system would not require any new technology, but would rather combine existing components, or ones that are already well under development, in a novel configuration (for which they have applied for a patent).

The system would also have the advantage of running on natural gas, a relatively plentiful fuel source — proven global reserves of natural gas are expected to last about 60 years at current consumption rates — that is considered more environmentally friendly than coal or oil. (Present natural-gas power plants produce an average of 1,135 pounds of carbon dioxide for every megawatt-hour of electricity produced — half to one-third the emissions from coal plants, depending on the type of coal.)

Absent any price for carbon emissions, Adams says, when it comes to generating electricity "the cheapest fuel will always be pulverized coal." But as soon as there is some form of carbon pricing — which attempts to take into account the true price exacted on the environment by greenhouse gas emissions — "ours is the lowest price option," he says, as long as the pricing is more than about $15 per metric ton of emitted carbon dioxide.

Such a pricing mechanism would be put in place, for example, by the Waxman-Markey "American Clean Energy and Security Act" that was passed by the U.S. House of Representatives in July, through its "cap and trade" provisions. (A corresponding bill has not yet reached the floor of the U.S. Senate.) If the program becomes law, the actual price per ton of carbon would vary, being determined through the free market.

Natural gas already accounts for 22 percent of all U.S. electricity production, and that percentage is likely to rise in coming years if carbon prices are put into effect. For these and other reasons, a system that can produce electricity from natural gas at a competitive price with zero greenhouse gas emissions could prove to be an attractive alternative to conventional power plants that use fossil fuels.

The system proposed by Adams and Barton would not emit into the air any carbon dioxide or other gases believed responsible for global warming, but would instead produce a stream of mostly pure carbon dioxide. This stream could be harnessed and stored underground relatively easily, a process known as carbon capture and sequestration (CCS).

One additional advantage of the proposed system is that, unlike a conventional natural gas plant with CCS that would consume significant amounts of water, the fuel-cell based system actually produces clean water that could easily be treated to provide potable water as a side benefit, Adams says.

How they did it: Adams and Barton used computer simulations to analyze the relative costs and performance of this system versus other existing or proposed generating systems, including natural gas or coal-powered systems incorporating carbon capture technologies.

Combined-cycle natural gas plants — the most efficient type of fossil-fuel power plants in use today — could be retrofitted with a carbon-capture system to reduce the output of greenhouse gases by 90 percent. But the MIT researchers' study found that their proposed system could eliminate virtually 100 percent of these emissions, at a comparable cost for the electricity produced, and with even a higher efficiency (in terms of the amount of electricity produced from a given amount of fuel).

Next steps: Although no full-scale plants using such systems have yet been built, the basic principles have been demonstrated in a number of smaller units including a 250-kilowatt plant, and prototype megawatt-scale plants are planned for completion around 2012. Actual utility-scale power plants would likely be on the order of 500 megawatts, Adams says.

And because fuel cells, unlike conventional turbine-based generators, are inherently modular, once the system has been proved at small size it can easily be scaled up.

"You don't need one large unit," Adams explains. "You can do hundreds or thousands of small ones, run in parallel." Adams says practical application of such systems is "not very far away at all," and could probably be ready for commercialization within a few years. "This is near-horizon technology," he says.

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Opinion: UK Natural Gas, Rising Prices and Electricity

European Energy Market Crisis drives record natural gas and electricity prices across the EU, as LNG supply constraints, Russian pipeline dependence, marginal pricing, and renewables integration expose volatility in liberalised power markets.

 

Key Points

A 2021 surge in European gas and electricity prices from supply strains, demand rebounds, and marginal pricing exposure.

✅ Record TTF gas and day-ahead power prices across Europe

✅ LNG constraints and Russian pipeline dependence tightened supply

✅ Debate over marginal pricing vs regulated models intensifies

 

By Ronan Bolton

The year 2021 was a turbulent one for energy markets across Europe, as Europe's energy nightmare deepened across the region. Skyrocketing natural gas prices have created a sense of crisis and will lead to cost-of-living problems for many households, as wholesale costs feed through into retail prices for gas and electricity over the coming months.

This has created immediate challenges for governments, but it should also encourage us to rethink the fundamental design of our energy markets as we seek to transition to net zero, with many viewing it as a wake-up call to ditch fossil fuels across the bloc.

This energy crisis was driven by a combination of factors: the relaxation of Covid-19 lockdowns across Europe created a surge in demand, while cold weather early in the year diminished storage levels and contributed to increasing demand from Asian economies. A number of technical issues and supply-side constraints also combined to limit imports of liquefied natural gas (LNG) into the continent.

Europe’s reliance on pipeline imports from Russia has once again been called into question, as Gazprom has refused to ride to the rescue, only fulfilling its pre-existing contracts. The combination of these, and other, factors resulted in record prices – the European benchmark price (the Dutch TTF Gas Futures Contract) reached almost €180/MWh on 21 December, with average day-ahead electricity prices exceeding €300/MWh across much of the continent in the following days.

Countries which rely heavily on natural gas as a source of electricity generation have been particularly exposed, with governments quickly put under pressure to intervene in the market.

In Spain the government and large energy companies have clashed over a proposed windfall tax on power producers. In Ireland, where wind and gas meet much of the country’s surging electricity demand, the government is proposing a €100 rebate for all domestic energy consumers in early 2022; while the UK government is currently negotiating a sector-wide bailout of the energy supply sector and considering ending the gas-electricity price link to curb bills.

This follows the collapse of a number of suppliers who had based their business models on attracting customers with low prices by buying cheap on the spot market. The rising wholesale prices, combined with the retail price cap previously introduced by the Theresa May government, led to their collapse.

While individual governments have little control over prices in an increasingly globalised and interconnected natural gas market, they can exert influence over electricity prices as these markets remain largely national and strongly influenced by domestic policy and regulation. Arising from this, the intersection of gas and power markets has become a key site of contestation and comment about the role of government in mitigating the impacts on consumers of rising fuel bills, even as several EU states oppose major reforms amid the price spike.

Given that renewables are constituting an ever-greater share of production capacity, many are now questioning why gas prices play such a determining role in electricity markets.

As I outline in my forthcoming book, Making Energy Markets, a particular feature of the ‘European model’ of liberalised electricity trade since the 1990s has been a reliance on spot markets to improve the efficiency of electricity systems. The idea was that high marginal prices – often set by expensive-to-run gas peaking plants – would signal when capacity limits are reached, providing clear incentives to consumers to reduce or delay demand at these peak periods.

This, in theory, would lead to an overall more efficient system, and in the long run, if average prices exceeded the costs of entering the market, new investments would be made, thus pushing the more expensive and inefficient plants off the system.

The free-market model became established during a more stable era when domestically-sourced coal, along with gas purchased on long-term contracts from European sources (the North Sea and the Netherlands), constituted a much greater proportion of electricity generation.

While prices fluctuated, they were within a somewhat predictable range, and provided a stable benchmark for the long-term contracts underpinning investment decisions. This is no longer the case as energy markets become increasingly volatile and disrupted during the energy transition.

The idea that free price formation in a competitive market, with governments standing back, would benefit electricity consumers and lead to more efficient systems was rooted in sound economic theory, and is the basis on which other major commodity markets, such as metals and agricultural crops, have been organised for decades.

The free-market model applied to electricity had clear limitations, however, as the majority of domestic consumers have not been exposed directly to real-time price signals. While this is changing with the roll-out of smart meters in many countries, the extent to which the average consumer will be willing or able to reduce demand in a predicable way during peak periods remains uncertain.

Also, experience shows that governments often come under pressure to intervene in markets if prices rise sharply during periods of scarcity, thus undermining a basic tenet of the market model, with EU gas price cap strategies floated as one option.

Given that gas continues to play a crucial role in balancing supply and demand for electricity, the options available to governments are limited, illustrating why rolling back electricity prices is harder than it appears for policymakers. One approach would be would be to keep faith with the liberalised market model, with limited interventions to help consumers in the short term, while ultimately relying on innovations in demand side technologies and alternatives to gas as a means of balancing systems with high shares of variable renewables.

An alternative scenario may see a return to old style national pricing policies, involving a move away from marginal pricing and spot markets, even as the EU prepares to revamp its electricity market in response. In the past, in particular during the post-WWII decades, and until markets were liberalised in the 1990s, governments have taken such an approach, centrally determining prices based on the costs of delivering long term system plans. The operation of gas plants and fuel procurement would become a much more regulated activity under such a model.

Many argue that this ‘traditional model’ better suits a world in which governments have committed to long-term decarbonisation targets, and zero marginal cost sources, such as wind and solar, play a more dominant role in markets and begin to push down prices.

A crucial question for energy policy makers is how to exploit this deflationary effect of renewables and pass-on cost savings to consumers, whilst ensuring that the lights stay on.

Despite the promise of storage technologies such as grid-scale batteries and hydrogen produced from electrolysis, aside from highly polluting coal, no alternative to internationally sourced natural gas as a means of balancing electricity systems and ensuring our energy security is immediately available.

This fact, above all else, will constrain the ambitions of governments to fundamentally transform energy markets.

Ronan Bolton is Reader at the School of Social and Political Science, University of Edinburgh and Co-Director of the UK Energy Research Centre. His book Making Energy Markets: The Origins of Electricity Liberalisation in Europe is to be published by Palgrave Macmillan in 2022.

 

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TVA faces federal scrutiny over climate goals, electricity rates

TVA Rates and Renewable Energy Scrutiny spotlights electricity rates, distributed energy resources, solar and wind deployment, natural gas plans, grid access charges, energy efficiency cuts, and House oversight of lobbying, FERC inquiries, and least-cost planning.

 

Key Points

A congressional probe into TVA pricing and practices affecting renewables, energy efficiency, and climate goals.

✅ House panel probes TVA rates, DER and solar policies.

✅ Efficiency programs cut; least-cost planning questioned.

✅ Inquiry on lobbying, hidden fees; FERC scrutiny.

 

The Tennessee Valley Authority is facing federal scrutiny about its electricity rates and climate action, amid ongoing debates over network profits in other markets.

Members of the House Committee on Energy and Commerce are “requesting information” from TVA about its ratepayer bills and “out of concern” that TVA is interfering with the deployment of renewable and distributed energy resources, even as companies such as Tesla explore electricity retail to expand customer options.

“The Committee is concerned that TVA’s business practices are inconsistent with these statutory requirements to the disadvantage of TVA’s ratepayers and the environment,” the committee said in a letter to TVA CEO Jeffrey Lyash.

The four committee members — U.S. Reps. Frank Pallone, Jr. (D-NJ), Bobby L. Rush (D-IL), Diana DeGette (D-CO), and Paul Tonko (D-NY) — suggested that Tennessee Valley residents pay too much for electricity despite TVA’s relatively low rates, even as regulators have, in other cases, scrutinized mergers like the Hydro One-Avista deal to safeguard ratepayers, underscoring similar concerns. In 2020, Tennessee residents had electric bills higher than the national average, while low-income residents in Memphis have historically faced one of the highest energy burdens in the U.S.

In 2018, TVA reduced its wholesale rate while adding a grid access charge on local power companies—and interfered with the adoption of solar energy. Internal TVA documents obtained through a Freedom of Information Act request by the Energy and Policy Institute revealed that TVA permitted local power companies to impose new fees on distributed solar generation to “lessen the potential decrease in TVA load that may occur through the adoption of [behind the meter] generation.”

Additionally, the committee said TVA is not prioritizing energy conservation and efficiency or “least-cost planning” that includes renewables, as seen in oversight such as the OEB's Hydro One rates decision emphasizing cost allocation. TVA reduced its energy efficiency programs by nearly two-thirds between 2014 and 2018 and cut its energy efficiency customer incentive programs.

At this time, TVA has not aligned its long-term planning with the Biden administration’s goal to achieve a carbon-free electricity sector by 2035. TVA’s generation mix, which is roughly 60% carbon-free, comprises 39% nuclear, 19% coal, 26% natural gas, 11% hydro, 3% wind and solar, and 1% energy efficiency programs, according to TVA.

The committee is “greatly concerned that TVA has invested comparatively little to date in deploying solar and wind energy, while at the same time considering investments in new natural gas generation.”

TVA has announced plans to shutter the Kingston and Cumberland coal plants and is evaluating whether to replace this generation with natural gas, which is a fossil fuel, while debates over grid privatization raise questions about consumer benefits. TVA’s coal and natural gas plants represent most of the largest sources of greenhouses emissions in Tennessee.

TVA responded with a statement without directly addressing the committee’s concerns. TVA said its “developing and implementing emerging technologies to drive toward net-zero emissions by 2050.”

The final question that the House committee posed is whether TVA is funding any political activity. In 2019, the committee questioned TVA about its membership to the now-disbanded Utility Air Regulatory Group, a coalition that was involved in over 200 lawsuits that primarily fought Clear Air Act regulations.

TVA revealed that it had contributed $7.3 million to the industry lobbying group since 2001. Since TVA doesn’t have shareholders, customers paid for UARG membership fees, echoing findings that deferred utility costs burden customers in other jurisdictions. An Office of the Inspector General investigation couldn’t prove whether TVA’s contributions directly funded litigation because UARG didn’t have a line-by-line accounting of what they did with TVA’s dollars.

The congressional committee questioned whether TVA is still paying for lobbying or litigation that opposes “public health and welfare regulations.”

This last question follows a recent trend of questioning utilities about “hidden fees.” In December, the Federal Energy Regulatory Commission issued a Notice of Inquiry to examine how bills from investor-owned utilities might contain fees that fund political activity, and regulators have penalized firms like NT Power over customer notice practices, highlighting consumer protection. The Center for Biological Diversity filed a petition to protect electric and gas customers of investor-owned utilities from paying these fees, which may be used for lobbying, campaign-related donations and litigation.

 

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New Power Grid “Report Card” Reveal Dangerous Vulnerabilities

U.S. Power Grid D+ Rating underscores aging infrastructure, rising outages, cyber threats, EMP and solar flare risks, strained transmission lines, vulnerable transformers, and slow permitting, amplifying reliability concerns and resilience needs across national energy systems.

 

Key Points

ASCE's D+ grade flags aging infrastructure, rising outages, and cyber, EMP, and weather risks needing investment.

✅ Major outages rising; weather remains top disruption driver.

✅ Aging transformers, transmission lines, limited maintenance.

✅ Cybersecurity gaps via smart grid, EV charging, SCADA.

 

The U.S. power grid just received its “grade card” from the American Society of Civil Engineers (ASCE) and it barely passed.

The overall rating of our antiquated electrical system was a D+. Major power outages in the United States, including widespread blackouts, have grown from 76 in 2007 to 307 in 2011, according to the latest available statistics. The major outage figures do not take into account all of the smaller outages which routinely occur due to seasonal storms.

The American Society of Civil Engineers power grid grade card rating means the energy infrastructure is in “poor to fair condition and mostly below standard, with many elements approaching the end of their service life.” It further means a “large portion of the system exhibits significant deterioration” with a “strong risk of failure.”

Such a designation is not reassuring and validates those who purchased solar generators over the past several years.

#google#

The vulnerable state of the power grid gets very little play by mainstream media outlets. Concerns about a solar flare or an electromagnetic pulse (EMP) attack instantly sending us back to an 1800s existence are legitimate, but it may not take such an extreme act to render the power grid a useless tangle of wires. The majority of the United States’ infrastructure and public systems evaluated by the ASCE earned a “D” rating. A “C” ranking (public parks, rail and bridges) was the highest grade earned. It would take a total of $3.6 trillion in investments by 2020 to fix everything, the report card stated. To put that number in perspective, the federal government’s budget for all of 2012 was slightly more, $3.7 trillion.

“America relies on an aging electrical grid and pipeline distribution systems, some of which originated in the 1880s,” the report read. “Investment in power transmission has increased since 2005, but ongoing permitting issues, weather events, including summer blackouts that strain local systems, and limited maintenance have contributed to an increasing number of failures and power interruptions. While demand for electricity has remained level, the availability of energy in the form of electricity, natural gas, and oil will become a greater challenge after 2020 as the population increases. Although about 17,000 miles of additional high-voltage transmission lines and significant oil and gas pipelines are planned over the next five years, permitting and siting issues threaten their completion. The electric grid in the United States consists of a system of interconnected power generation, transmission facilities, and distribution facilities.”

 

Harness the power of the sun when the power goes out…

There are approximately 400,000 miles of electrical transmission lines throughout the United States, and thousands of power generating plants dot the landscape. The ASCE report card also stated that new gas-fired and renewable generation issues increase the need to add new transmission lines. Antiquated power grid equipment has reportedly prompted even more “intermittent” power outages in recent years.

The American Society of Civil Engineers accurately notes that the power grid is more vulnerable to cyber attacks than ever before, including Russian intrusions documented in recent years, and it cites the aging electrical system as the primary culprit. Although the decades-old transformers and other equipment necessary to keep power flowing around America are a major factor in the enhanced vulnerability of the power grid, moving towards a “smart grid” system is not the answer. As previously reported by Off The Grid News, smart grid systems and even electric car charging stations make the power grid more accessible to cyber hackers. During the Hack in the Box Conference in Amsterdam, HP ArcSight Product Manager Ofer Sheaf stated that electric car charging stations are in essence a computer on the street. The roadway fueling stations are linked to the power grid electrical system. If cyber hackers garner access to the power grid via the charging stations, they could stop the flow of power to a specific area or alter energy distribution levels and overload the system.

While a relatively small number of electric car charging stations exist in America now, that soon will change. Ongoing efforts by both federal and state governments to reduce our reliance on fossil fuels have resulted in grants and privately funded vehicle charging station projects. New York Governor Andrew Cuomo in April announced plans to build 360 such electrical stations in his state. A total of 3,000 car charging stations are in the works statewide and are slated for completion over the next five years.

SHIELD ActWeather-related events were the primary cause of power outages from 2007 to 2012, according to the infrastructure report card. Power grid reliability issues are emerging as the greatest threat to the electrical system, with rising attacks on substations compounding the risks. The ASCE grade card also notes that retiring and rotating in “new energy sources” is a “complex” process. Like most items we routinely purchase in our daily lives, many of the components needed to make the power grid functional are not manufactured in the United States.

The SHIELD Act is the first real piece of federal legislation in years drafted to address power grid vulnerabilities. While the single bill will not fix all of the electrical system issues, it is a big step in the right direction – if it ever makes it out of committee. Replacing aging transformers, encasing them in a high-tech version of a Faraday cage, and stockpiling extra units so instant repairs are possible would help preserve one of the nation’s most critical and life-saving pieces of infrastructure after a weather-related incident or man-made disaster.

“Geomagnetic storm environments can develop instantaneously over large geographic footprints,” solar geomagnetic researcher John Kappenman said about the fragile state of the power grid. He was quoted in an Oak Ridge National Laboratory report. “They have the ability to essentially blanket the continent with an intense threat environment and … produce significant collateral damage to critical infrastructures. In contrast to well-conceived design standards that have been successfully applied for more conventional threats, no comprehensive design criteria have ever been considered to check the impact of the geomagnetic storm environments. The design actions that have occurred over many decades have greatly escalated the dangers posed by these storm threats for this critical infrastructure.”

The power grid has morphed in size tenfold during the past 50 years. While solar flares, cyber attacks, and an EMP are perhaps the most extensive and frightening threats to the electrical system, the infrastructure could just as easily fail in large portions due to weather-related events exacerbated by climate change across regions. The power grid is basically a ticking time bomb which will spawn civil unrest, lack of food, clean water, and a multitude of fires if it does go down.

 

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Negative Electricity Prices Amid Renewable Energy Surplus

France Negative Electricity Prices highlight surplus renewables as solar and wind output exceeds demand, driving grid flexibility, demand response, and storage signals while reshaping energy markets, lowering emissions, and improving economic efficiency and energy security.

 

Key Points

They occur when surplus solar and wind push wholesale power prices below zero, signaling flexible, low-carbon grids.

✅ Surplus solar and wind outpace demand, flipping price signals

✅ Incentivizes demand response, storage, and flexible loads

✅ Enhances decarbonization, energy security, and market efficiency

 

In a remarkable feat for renewable energy, France has recently experienced negative electricity prices due to an abundant supply of solar and wind power. This development highlights the country's progress towards sustainable energy solutions and underscores the potential of renewables to reshape global energy markets.

The Surge in Renewable Energy Supply

France's electricity grid benefited from a surplus of renewable energy generated by solar panels and wind turbines. During periods of peak production, such as sunny and windy days, the supply of electricity exceeded demand, leading to negative prices and reflecting how solar is reshaping price dynamics in Northern Europe.

Implications for Energy Markets

The occurrence of negative electricity prices reflects a shift towards a more flexible and responsive energy system. It demonstrates the capability of renewables to meet substantial portions of electricity demand reliably and economically, with evidence of falling wholesale prices in many markets, challenging traditional notions of energy supply and pricing dynamics.

Technological Advancements and Policy Support

Technological advancements in renewable energy infrastructure, coupled with supportive government policies and incentives, have played pivotal roles in France's achievement. Investments in solar farms, wind farms, and grid modernization, including the launch of France's largest battery storage platform by TagEnergy, have enhanced the efficiency and reliability of renewable energy integration into the national grid.

Economic and Environmental Benefits

The adoption of renewable energy sources not only reduces greenhouse gas emissions but also fosters economic growth and energy independence. By harnessing abundant solar and wind resources, France strengthens its energy security and reduces reliance on fossil fuels, contributing to long-term sustainability goals and reflecting a continental shift as renewable power has surpassed fossil fuels for the first time.

Challenges and Future Outlook

While France celebrates the success of negative electricity prices, challenges remain in scaling renewable energy deployment and optimizing grid management. Balancing supply and demand, integrating intermittent renewables, and investing in energy storage technologies are critical for ensuring grid stability and maximizing the benefits of renewable energy, particularly in addressing clean energy's curtailment challenge across modern grids.

Global Implications

France's experience with negative electricity prices serves as a model for other countries striving to transition to clean energy economies. It underscores the potential of renewables to drive economic prosperity, mitigate climate change impacts, and reshape global energy markets towards sustainability, as seen in Germany where solar-plus-storage is now cheaper than conventional power in several contexts.

Conclusion

France's achievement of negative electricity prices driven by renewable energy surplus marks a significant milestone in the global energy transition. By leveraging solar and wind power effectively, France demonstrates the feasibility and economic viability of renewable energy integration at scale. As countries worldwide seek to reduce carbon emissions and enhance energy resilience, France's example provides valuable insights and inspiration for advancing renewable energy agendas and accelerating towards a sustainable energy future.

 

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Why rolling back European electricity prices is tougher than appears

EU Energy Price Crisis drives soaring electricity bills as natural gas sets pay-as-clear power prices; leaders debate price caps, common gas purchasing, market reform, renewables, and ETS changes amid Ukraine war supply shocks.

 

Key Points

A surge in gas-driven power costs linked to pay-as-clear pricing, supply shocks, and policy rifts across the EU market.

✅ Gas sets marginal power price via pay-as-clear mechanism

✅ Spain pushes decoupling and temporary price caps

✅ EU weighs joint gas buying, efficiency, more renewables

 

Nothing grabs politicians' attention faster than angry voters, and they've had plenty to be furious about as natural gas and electricity bills have soared to stomach-churning levels in recent months, as this UK natural gas analysis illustrates across markets.

That's led to a scramble to figure out ways to get those costs down, with emergency price-limiting measures under discussion — but that's turning out to be very difficult, so the likeliest result is that EU leaders meeting later this week won't come up with any solutions.

“There is no single easy answer to tackle the high electricity prices given the diversity of situations among Member States. Some options are only suitable for specific national contexts,” the European Commission said on Wednesday. “They all carry costs and drawbacks.” 

The initial problem was a surge in gas demand in Asia last year coupled with lower-than-normal Russian gas deliveries that left European gas storage at unusually low levels. Now the war in Ukraine is making matters even worse, as pressure grows for the bloc to rapidly cut its imports of Russian oil, coal and natural gas — although some national leaders reject the economic costs that would entail.

"We will end this dependence as quickly as we can, but to do that from one day to the next would mean plunging our country and all of Europe into a recession," German Chancellor Olaf Scholz warned on Wednesday.

The problem for the bloc is that its liberalized electricity market is tightly tied to the price of natural gas; power prices are set by the final input needed to balance demand — called pay-as-clear — which in most cases is set by natural gas. That's led to countries with large amounts of cheaper renewable or nuclear energy seeing sharp spikes in power prices thanks to the cost of that final bit of gas-fired electricity.

A Spanish-led coalition that includes Portugal, Belgium and Italy wants deep reforms to the EU price model, fueling a broader electricity market revamp debate in Brussels.

Others, such as the Netherlands and Germany, strongly oppose such an approach, echoing how nine countries oppose reforms at the EU level, and want to focus on cushioning the effects of the high prices on consumers and businesses, while letting the market operate. 

A third group, largely in Central Europe, wants to use the price spike to revamp or scrap the bloc's Emissions Trading System and to rethink its Fit for 55 climate legislation.

The European Commission has been holding the middle ground — arguing that the current market model makes sense, but encouraging countries to boost the amount of renewable electricity, in a wake-up call to ditch fossil fuels for Europe, to cut energy use and increase efficiency.

In draft conclusions of this week's European Council summit, seen by POLITICO, EU leaders, amid a France-Germany tussle over reform, call for things like a common approach to buying gas, aimed at preventing countries from competing against each other. But there's no big movement on electricity prices.

“It does not seem realistic to expect a result on the energy discussion at this European Council,” one diplomat said, stressing that the governments will need to see more analysis before committing to any more steps.

Looking for action
Spain wanted a much more robust response. Madrid has been arguing since last summer for “decoupling” gas from the electricity market; together with Portugal, it also mulled limiting the wholesale price of electricity to €180 per megawatt-hour — a proposal that Spain abandoned under fire from industry and consumer groups. 

Now Madrid is pushing to get a specific permission in the summit's final conclusions that would allow countries to voluntarily apply certain short-term solutions such as gas price cap strategies, according to a draft with track changes seen by POLITICO.

The issue with a cap is if gas prices are higher than the cap, Spain might not be able to buy any gas.

 

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Northvolt Affirms Continuation of EV Battery Plant Project Near Montreal

Northvolt Montreal EV Battery Plant advances as a Quebec clean energy hub, leveraging hydroelectric power to supply EV batteries, strengthen North American supply chains, and support automakers' electrification with sustainable manufacturing and regional distribution.

 

Key Points

A Quebec-based EV battery facility using hydroelectric power to scale sustainable production for North America.

✅ Powered by Quebec hydro for lower-carbon cell manufacturing

✅ Strengthens North American EV supply chain resilience

✅ Creates local jobs, R&D, and advanced manufacturing skills

 

Northvolt, a prominent player in the electric vehicle (EV) battery industry, has reaffirmed its commitment to proceed with its battery plant project near Montreal as originally planned. This development marks a significant step forward in Northvolt's expansion strategy and signals confidence in Canada's role in the global EV market.

The decision to move forward with the EV battery plant project near Montreal underscores Northvolt's strategic vision to establish a strong foothold in North America's burgeoning electric vehicle sector. The plant is poised to play a crucial role in meeting the growing demand for sustainable battery solutions as automakers accelerate their transition towards electrification.

Located strategically in Quebec, a province known for its abundant hydroelectric power and supportive government policies towards clean energy initiatives, including major Canada-Quebec investments in battery assembly, the battery plant project aligns with Canada's commitment to promoting green technology and reducing carbon emissions. By leveraging Quebec's renewable energy resources, Northvolt aims to produce batteries with a lower carbon footprint compared to traditional manufacturing processes.

The EV battery plant is expected to contribute significantly to the local economy by creating jobs, stimulating economic growth, and fostering technological innovation in the region, much as a Niagara Region battery plant is catalyzing development in Ontario. As Northvolt progresses with its plans, collaboration with local stakeholders, including government agencies, educational institutions, and industry partners, will be pivotal in ensuring the project's success and maximizing its positive impact on the community.

Northvolt's decision to advance the battery plant project near Montreal also reflects broader trends in the global battery manufacturing landscape. With increasing emphasis on sustainability and supply chain resilience, companies like Northvolt are investing in diversified production capabilities, including projects such as a $1B B.C. battery plant, to meet regional market demands and reduce dependency on overseas suppliers.

Moreover, the EV battery plant project near Montreal represents a milestone in Canada's efforts to strengthen its position in the global electric vehicle supply chain, with EV assembly deals helping put the country in the race. By attracting investments from leading companies like Northvolt, Canada aims to build a robust ecosystem for electric vehicle manufacturing and innovation, driving economic competitiveness and environmental stewardship.

The plant's proximity to key markets in North America further enhances its strategic value, enabling efficient distribution of batteries to automotive manufacturers across the continent. This geographical advantage positions Northvolt to capitalize on the growing demand for electric vehicles in Canada, the United States, and beyond, supporting Canada-U.S. collaboration on supply chains and market growth.

Looking ahead, Northvolt's commitment to advancing the EV battery plant project near Montreal underscores its long-term vision and dedication to sustainable development. As the global electric vehicle market continues to evolve, alongside the U.S. auto sector's pivot to EVs, investments in battery manufacturing infrastructure will play a critical role in shaping the industry's future landscape and accelerating the adoption of clean transportation technologies.

In conclusion, Northvolt's affirmation to proceed with the EV battery plant project near Montreal represents a significant milestone in Canada's transition towards sustainable mobility solutions. By harnessing Quebec's renewable energy resources and fostering local partnerships, Northvolt aims to establish a state-of-the-art manufacturing facility that not only supports the growth of the electric vehicle sector but also contributes to Canada's leadership in clean technology innovation, bolstered by initiatives like Nova Scotia vehicle-to-grid pilots that strengthen grid readiness nationwide. As the project moves forward, its impact on economic growth, job creation, and environmental sustainability is expected to resonate positively both locally and globally.

 

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