Officials await Senate OK to fund unique power plant

Tesla Solar and Powerwall Discount offers a ~10% installation price cut amid PG&E blackouts, helping California homeowners with solar panels, battery storage, and backup power, while supporting renewable energy and resilient Supercharger infrastructure.

Key Points

A ~10% installation discount on Tesla solar panels and Powerwall batteries to boost backup power during PG&E blackouts.

✅ ~10% off installation for solar plus Powerwall

✅ Helps during PG&E shutoffs and wildfire mitigation

✅ Supports resilience, backup power, and EV charging

Pacific Gas & Electric’s (PG&E) shutoff of electric supply to residents in California’s Bay Area has caught the attention of Tesla and SpaceX CEO Elon Musk, who, while highlighting a huge future for Tesla Energy in coming years, has announced that he would be offering a price reduction of approximately 10% for a solar panel and Tesla Powerwall battery installation. The discount will be available to anyone interested in powering their homes with solar energy, not just the 800,000 affected homes in the Bay Area.

After initially tweeting a link to Tesla’s Solar page on Tesla.com, Musk added that he would be offering a “~10% price reduction” in installation price for solar panels and Powerwall batteries for anyone, as California explores EVs for grid stability during emergencies, including those who have lost power in response to PG&E’s power shutoff. The blackout induced by the California-based power company is a part of an effort to reduce the possibility of wildfires. PG&E lines were the cause of multiple fires in the past, so the company is taking every necessary precaution to reduce the probability of its lines causing another fire in the future.

Tesla Solar recently offered a subscription program that would allow homeowners to lease panels for a fraction of the cost. The service is available to both residential and commercial customers, and costs as little as $45 a month in some states, particularly appealing in California where EV sales top 20% recently. The option to lease solar panels carries no long-term contracts that would tie down customers to a lengthy commitment.

Wildfires have always been an issue in California. Currently, fires are ripping through Los Angeles county, presumably caused by the winds of the Autumn season. The effort to reduce the environmental impact of forest fires in the state has been increasingly more prevalent over the years. But 2019 is a different story, underscoring that California may need a much bigger grid to support electrification, considering the previous year was noted as the deadliest wildfire season in California’s history. Over 8,500 fires destroyed over 1.89 million acres of land burned due to fires, causing the California Department of Forestry and Fire Protection to spend $432 million through the end of August 2018, according to the Associated Press.

In reaction to the news of the power shutoffs, Tesla added words of advice to vehicle affected owners on its app. The company posted a message encouraging drivers to keep their vehicles charged to 100% and highlighted that EVs can power homes for up to three days during outages, in order to prevent interruptions in driving. Those who are driving ICE vehicles are feeling the effects of the blackout too, as gas stations in California’s affected region have begun to shut down. Musk also tweeted that he would be installing Tesla Powerpacks at all Supercharger stations in the affected region, a move that can help ease strain on state power grids during outages, in order to allow owners to charge their vehicles.

In addition to the efforts that Tesla has already put into place, Musk plans to transition all Supercharger stations to solar power as soon as possible. But the sunny climate of California offers residents a great opportunity to move from gas and electric, even as some warn of a looming green car wreck in the state, to a more eco-friendly, sun-powered option. Tesla solar will completely eliminate power blackouts that are used to control wildfires in California.

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

Key Points

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

✅ AST evaluates imports to mitigate supply risk

✅ Energy could enter Lithuania via existing trading route

✅ Debate centers on nuclear safety and Baltic grid impacts

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

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

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

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

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

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

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

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Renewable Energy Tax Incentive Extensions urged by US trade groups to offset COVID-19 supply chain delays, tax equity shortages, and financing risks, enabling direct pay, PTC and ITC qualification, and standalone energy storage credits.

Key Points

Policy measures that extend and monetize clean energy credits to counter COVID-19 disruptions and financing shortfalls.

✅ Extend start construction and safe harbor deadlines

✅ Enable direct pay to offset reduced tax equity

✅ Add a standalone energy storage credit

Renewable energy and other trade bodies in the US are calling on Capitol Hill to extend provision of tax incentives to help the sector “surmount the impacts” of the COVID-19 crisis facing clean energy.

In a signed joint letter, the American Council on Renewable Energy (ACORE), American Wind Energy Association (AWEA), Energy Storage Association (ESA), National Hydropower Association (NHA), Renewable Energy Buyers Alliance (REBA), and the Solar Energy Industries Association (SEIA) stated: “With over $50bn in annual investment over each of the past five years, the clean energy sector is one of the nation’s most important economic drivers. But that growth is placed at risk by a range of COVID-19 related impacts”.

These include “supply chain disruptions that have the potential to delay utility solar construction timetables and undermine the ability of wind, solar and hydropower developers to qualify for time-sensitive tax credits, and a sudden reduction in the availability of tax equity, which is crucial to monetising tax credits and financing clean energy projects of all types.”
The letter goes onto state: “Like all sectors of our economy the renewable and clean grid industry – including developers, manufacturers, construction workers, electric utilities, investors and major corporate consumers of renewable power – needs stability.

“The current uncertainty about the ability to qualify for and monetise tax incentives will have real and substantial negative impacts to the entire economy.

On behalf of the thousands of companies that participate in America’s renewable and clean energy economy, the coalition of organisations is requesting the US Government, echoing Senate calls to support clean energy, take three “critical” steps to address pandemic-related disruptions.

The first is an extension of start construction and safe harbour deadlines to ensure that renewable projects can qualify for renewable tax credits amid the Solar ITC extension debate and despite delays associated with supply chain disruptions.

The second is the implementation of provisions that will allow renewable tax credits to be available for direct pay to facilitate their monetisation, supporting U.S. solar and wind growth in the face of reduced availability of tax equity.

Thirdly, the signatories have requested the enactment of a direct pay tax credit for standalone energy storage to foster renewable growth as the industry sets sights on market majority and help secure a more resilient grid.

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Rolls-Royce SMR UK Approval underscores nuclear innovation as regulators review a 470 MW factory-built modular reactor, aiming for grid power by 2029 to boost energy security, cut fossil fuels, and accelerate decarbonization.

Key Points

UK regulatory clearance for Rolls-Royce's 470 MW modular reactor, targeting grid power by 2029 to support clean energy.

✅ UK design approval expected by mid 2024

✅ First 470 MW unit aims for grid power by 2029

✅ Modular, factory-built; est. £1.8b per 10-acre site

A Rolls-Royce (RR.L) design for a small modular nuclear reactor (SMR) will likely receive UK regulatory approval by mid-2024, reflecting progress seen in the US NRC safety evaluation for NuScale as a regulatory benchmark, and be able to produce grid power by 2029, Paul Stein, chairman of Rolls-Royce Small Modular Reactors.

The British government asked its nuclear regulator to start the approval process in March, in line with the UK's green industrial revolution agenda, having backed Rolls-Royce’s $546 million funding round in November to develop the country’s first SMR reactor.

Policymakers hope SMRs will help cut dependence on fossil fuels and lower carbon emissions, as projects like Ontario's first SMR move ahead in Canada, showing momentum.

Speaking to Reuters in an interview conducted virtually, Stein said the regulatory “process has been kicked off, amid broader moves such as a Canadian SMR initiative to coordinate development, and will likely be complete in the middle of 2024.

“We are trying to work with the UK Government, and others to get going now placing orders, echoing expansions like Darlington SMR plans in Ontario, so we can get power on grid by 2029.”

In the meantime, Rolls-Royce will start manufacturing parts of the design that are most unlikely to change, while advancing partnerships like a MoU with Exelon to support deployment, Stein added.

Each 470 megawatt (MW) SMR unit costs 1.8 billion pounds ($2.34 billion) and would be built on a 10-acre site, the size of around 10 football fields, though projects in New Brunswick SMR debate have prompted questions about costs and timelines.

Unlike traditional reactors, SMRs are cheaper and quicker to build and can also be deployed on ships and aircraft. Their “modular” format means they can be shipped by container from the factory and installed relatively quickly on any proposed site.

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UK Market Stability Outlook remains febrile as the Bank of England, Treasury, and OBR forecasts shape fiscal policy, interest rates, gilt yields, inflation, energy bills, and pound sterling, with Oct. 31 guidance to reassure investors.

Key Points

A view of investor confidence as BOE policy, fiscal plans, and energy aid shape inflation and interest rates.

✅ Markets await Oct. 31 fiscal statement and OBR projections

✅ Energy support design drives inflation and disposable income

✅ Pound weakness adds imported inflation; rates seen up 75 bps

Bank of England Deputy Governor Dave Ramsden said financial markets are still unsettled about the outlook for the UK and that a Treasury statement due on Oct. 31 may provide some reassurance.

Speaking to the Treasury Committee in Parliament, Ramsden said officials in government and the central bank are dealing with huge economic shocks, notably the surge in energy prices that came with Russia’s attack on Ukraine. Investors are reassessing where interest rates and the fiscal stance are headed.

“Markets remain quite febrile,” Ramsden told members of Parliament in London on Monday. “Things have not settled down yet.”

He described the events following Prime Minister Liz Truss’s ill-fated fiscal statement on Sept. 23, which set out a series of tax cuts funded by borrowing that spooked investors and triggered a rout in UK assets. Ramsden said those events damaged the UK’s credibility among investors, but reversing that program and Truss’s decision to step aside have helped the nation regain confidence.

“Credibility is hard won and easily lost,” Ramsden said. “That credibility is being recovered. That has to be followed through. A return to the kind of stability around policy making and around the framing of fiscal events will be really important.”

He said the issue with the Sept. 23 statement was that “it had one side of the fiscal arithmetic in it” and that the decision to include forecasts from the Office for Budget Responsibility will help underpin the confidence investors have in assessing the UK budget due out next week, including potential moves to end the link between gas and electricity prices for consumers.

“What we are going to get on Oct. 31 will be very important,” Ramsden said, “as it will address measures such as the price cap on household energy bills and other fiscal choices.”

“My sense is that will take account of all the statements on both the revenue and on the spending side.”

The central bank already was getting some information from Chancellor of the Exchequer Jeremy Hunt’s team about the fiscal statement due. Hunt said last week he’d curtail government plans to subsidize household fuel bills in April, when a 16% decrease in energy bills is anticipated, instead of letting it run as long as planned and replace it with a more targeted program. 

“To the extent possible, we will obviously have a little bit of time to take account of that before we make our decisions later next week,” Ramsden said.

With Truss stepping down in the next day and handing power to Rishi Sunak, it isn’t certain the Oct. 31 statement will go ahead as planned. Ramsden’s remarks confirm reports that Hunt is preparing to make the statement, amid a free electricity debate in the industry, even before Sunak names his team.

Any hint about what sort of package Hunt will offer on energy is crucial to the BOE’s forecasts. Without aid for energy, consumers will be exposed to high winter heating and electricity costs and to the full force of whatever happens in natural gas and electricity markets, and that will have a big impact on how much disposable income is available to households.

The energy plan, alongside the energy security bill, “will be a key element, as obviously it will have a bearing on the path for inflation, which is critical, but also how much additional support relative to what we were assuming at the time of the September MPC there will be for households at different points in the income distribution,” Ramsden added.

Investors currently expect the BOE to hike rates by 75 basis points next week.

Ramsden also said the BOE is watching the pound’s decline to assess how that changes the outlook for inflation.

“We have to take account of it,” Ramsden said. “When sterling deprreciaties that feeds through to imported inflation. It’s fallen quite significantly. The overall trend is down.”

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NB Power Smart Meter Opt-Out Fees reflect cost causation principles set before the Energy and Utilities Board, covering meter reading charges, transmitter-disable options, rollout targets, and education plans across New Brunswick's smart metering program.

Key Points

Fees NB Power may apply to customers opting out of smart meters, reflecting cost causation and meter-reading costs.

✅ Based on cost causation and meter reading expenses

✅ BC and Quebec charge monthly opt-out surcharges

✅ Policy finalized during rollout after EUB review

NB Power customers who do not want a smart meter installed on their home could be facing a stiff fee for that decision, but so far the utility is not saying how much it might be.  

"It will be based on the principles of cost causation, but we have not gotten into the detail of what that fee would be at this point," said NB Power Senior Vice President of Operations Lori Clark at Energy and Utilities Board hearings on Friday.

In other jurisdictions that have already adopted smart meters, customers not wanting to participate have faced hundreds of dollars in extra charges, while Texas utilities' pullback from smart-home networks shows approaches can differ.

In British Columbia, power customers are charged a meter reading fee of $32.40 per month if they refuse a smart meter, or $20 per month if they accept a smart meter but insist its radio transmitter be turned off. That's a cost of between $240 and $388.80 per year for customers to opt out.

In Quebec, smart meters were installed beginning in 2012. Customers who refused the devices were initially charged $98 to opt out plus a meter reading fee of $17 per month. That was eventually cut by Quebec's energy board in 2014 to a $15 refusal fee and a $5 per month meter reading surcharge.

NB Power said it may be a year or more before it settles on its own fee.

"The opt out policy will be developed and implemented as part of the roll out.  It will be one of the last things we do," said Clark.

Customers need to be on board

NB Power is in front of the New Brunswick Energy and Utilities Board seeking permission to spend $122.7 million to install 350,000 smart meters province wide, as neighboring markets grapple with major rate increases that heighten affordability concerns.  

The meters are capable of transmitting consumption data of customers back to NB Power in real time, which the utility said will allow for a number of innovations in pricing and service, and help address old meter inaccuracies that affected some households.

The meters require near universal adoption by customers to maximize their financial benefit — like eliminating more than $20 million a year NB Power currently spends to read meters manually. The utility has said the switch will not succeed if too many customers opt out.

"We certainly wouldn't be looking at making an investment of this size without having the customer with us," said Clark.

On Thursday, Kent County resident Daniel LeBlanc, who along with Roger Richard, is opposing the introduction of smart meters for health reasons, predicted a cool reception for the technology in many parts of the province, given concerns that include health effects and billing disputes in Nova Scotia reported elsewhere.

"If one were to ask most of the people in the rural areas, I'm not sure you would get a lot of takers for this infrastructure," said LeBlanc, who is concerned with the long-term effect microwave frequencies used by the meters to transmit data may have on human health.

That issue is before the EUB next week.

Haven't tested the waters

NB Power acknowledged it has not measured public opinion on adopting smart meters but is confident it can convince customers it is a good idea for them and the utility, even as seasonal rate proposals in New Brunswick have prompted consumer backlash.

"People don't understand what the smart meter is," said Clark. "We need to educate our customers first to allow them to make an informed decision so that will be part of the roll out plan."

Clark noted that smart meters, helped by stiff opting out penalties, were eventually accepted by 98 per cent of customers in British Columbia and by 97.4 per cent of customers in Quebec.

"We will check and adjust along the way if there are issues with customer uptake," said Clark.

"This is very similar to what has been done in other jurisdictions and they haven't had those challenges."

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