California utilities lead in solar energy

Rural Electrification Poverty Impact examines energy access, grid connections, and reliability, testing economic development claims via randomized trials; findings show minimal gains without appliances, reliable supply, and complementary services like education and job creation initiatives.

Key Points

Study of household grid connections showing modest poverty impact without reliable power and appliances.

✅ Randomized grid connections showed no short-term income gains.

✅ Low reliability and few appliances limited electricity use.

✅ Complementary investments in jobs, education, health may be needed.

The head of Swedfund, the development finance group, recently summarized a widely-held belief: “Access to reliable electricity drives development and is essential for job creation, women’s empowerment and combating poverty.” This view has been the driving force behind a number of efforts to provide electricity to the 1.1 billion people around the world living in energy poverty, such as India's village electrification initiatives in recent years.

But does electricity really help lift households out of poverty? My co-authors and I set out to answer this question. We designed an experiment in which we first identified a sample of “under grid” households in Western Kenya—structures that were located close to but not connected to a grid. These households were then randomly divided into treatment and control groups. In the treatment group, we worked closely with the rural electrification agency to connect the households to the grid for free or at various discounts. In the control group, we made no changes. After eighteen months, we surveyed people from both groups and collected data on an assortment of outcomes, including whether they were employed outside of subsistence agriculture (the most common type of work in the region) and how many assets they owned. We even gave children basic tests, as a frequent assertion is that electricity helps children perform better in school since they are able to study at night.

When we analyzed the data, we found no differences between the treatment and control groups. The rural electrification agency had spent more than $1,000 to connect each household. Yet eighteen months later, the households we connected seemed to be no better off. Even the children’s test scores were more or less the same. The results of our experiment were discouraging, and at odds with the popular view that supplying households with access to electricity will drive economic development. Lifting people out of poverty may require a more comprehensive approach to ensure that electricity is not only affordable (with some evidence that EV growth can benefit all customers in mature markets), but is also reliable, useable, and available to the whole community, paired with other important investments.

For instance, in many low-income countries, the grid has frequent blackouts and maintenance problems, making electricity unreliable, as seen in Nigeria's electricity crisis in recent years. Even if the grid were reliable, poor households may not be able to afford the appliances that would allow for more than just lighting and cell phone charging. In our data, households barely bought any appliances and they used just 3 kilowatt-hours per month. Compare that to the U.S. average of 900 kilowatt-hours per month, a figure that could rise as EV adoption increases electricity demand over time.

There are also other factors to consider. After all, correlation does not equal causation. There is no doubt that the 1.1 billion people without power are the world’s poorest citizens. But this is not the only challenge they face. The poor may also lack running water, basic sanitation, consistent food supplies, quality education, sufficient health care, political influence, and a host of other factors that may be harder to measure but are no less important to well-being. Prioritizing investments in some of these other factors may lead to higher immediate returns. Previous work by one of my co-authors, for example, shows substantial economic gains from government spending on treatment for intestinal worms in children.

It’s possible that our results don’t generalize. They certainly don’t apply to enhancing electricity services for non-residential customers, like factories, hospitals, and schools, and electric utilities adapting to new load patterns. Perhaps the households we studied in Western Kenya are particularly poor (although measures of well-being suggest they are comparable to rural households across Sub-Saharan Africa) or politically disenfranchised. Perhaps if we had waited longer, or if we had electrified an entire region, the household impacts we measured would have been much greater. But others who have studied this question have found similar results. One study, also conducted in Western Kenya, found that subsidizing solar lamps helped families save on kerosene, but did not lead children to study more. Another study found that installing solar-powered microgrids in Indian villages resulted in no socioeconomic benefits.

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New York Green New Deal accelerates clean energy and climate action, targeting carbon neutrality with renewable energy, offshore wind, solar, energy storage, and green jobs while advancing environmental justice and economy-wide decarbonization.

Key Points

New York's plan for 100% clean power by 2040 and 70% renewables by 2030, with a just transition and green jobs.

✅ 100% carbon-free electricity by 2040; 70% renewables by 2030

✅ 9,000 MW offshore wind and 3,000 MW energy storage targets

✅ Just transition focuses on jobs, equity, and affordability

New York Governor Andrew M. Cuomo announced the Green New Deal, a nation-leading clean energy and jobs agenda that will aggressively put New York State on a path to net-zero electricity and economy-wide carbon neutrality, is included in the 2019 Executive Budget. The landmark plan provides for a just transition to clean energy that spurs growth of the green economy and prioritizes the needs of low- to moderate-income New Yorkers.

"Climate change is a reality, and the consequences of delay are a matter of life and death. We know what we must do. Now we have to have the vision, the courage, and the competence to get it done," Governor Cuomo said. "While the federal government shamefully ignores the reality of climate change and fails to take meaningful action, we are launching the first-in-the-nation Green New Deal to seize the potential of the clean energy economy, set nation's most ambitious goal for carbon-free power, and ultimately eliminate our entire carbon footprint."

During Governor Cuomo's first two terms, New York banned fracking of natural gas, committed to phasing out coal power by 2020, mandated 50 percent renewable power by 2030, and established the U.S. Climate Alliance to uphold the Paris Agreement, reflecting the view that decarbonization is irreversible under a clean energy economy. Under the Reforming the Energy Vision agenda, New York has held the largest renewable energy procurements in U.S. history, solar has increased nearly 1,500 percent, and offshore wind is poised to transform the State's electricity supply to be cleaner and more sustainable. Through Governor Cuomo's Green New Deal, New York will take the bold next steps to secure a clean energy future that protects the environment for generations to come while growing the clean energy economy.

100 Percent Clean Power by 2040 Coupled with New Nation-leading Renewable Energy Mandates

The Green New Deal will statutorily mandate New York's power be 100 percent carbon-free by 2040, the most aggressive goal in the United States and five years ahead of a target recently adopted by California state policymakers. The cornerstone of this new mandate is a significant increase of New York's successful Clean Energy Standard mandate from 50 percent to 70 percent renewable electricity by 2030. This globally unprecedented ramp-up of renewable energy will include:

• Quadrupling New York's offshore wind target to 9,000 megawatts by 2035, up from 2,400 megawatts by 2030
• Doubling distributed solar deployment to 6,000 megawatts by 2025, up from 3,000 megawatts by 2023
• More than doubling new large-scale land-based wind and solar resources through the Clean Energy Standard
• Maximizing the contributions and potential of New York's existing renewable resources
• Deploying 3,000 megawatts of energy storage by 2030, up from 1,500 megawatts by 2025
• Develop an Implementation Plan to Make New York Carbon Neutral

The Green New Deal will create the State's first statutory Climate Action Council, comprised of the heads of relevant State agencies and other workforce, environmental justice, and clean energy experts to develop a comprehensive plan to make New York carbon neutral by significantly and cost-effectively reducing emissions from all major sources, including electricity, transportation, buildings, industry, commercial activity, and agriculture. The Climate Action Council will consider a range of possible options, including the feasibility of working with the U.S. Climate Alliance to create a new multistate emissions reduction program that covers all sectors of the economy, including transportation and industry, and exploring ways to leverage the successful Regional Greenhouse Gas Initiative to drive transformational investment in the clean energy economy and support a just transition.

At the national level, a historic climate deal is reshaping incentives and standards for clean energy deployment across the country.

The Green New Deal will also include an ambitious strategy to move New York's statewide building stock to carbon neutrality. The agenda includes:

Advancing legislative changes to strengthen building energy codes and establish appliance efficiency standards

Directing State agencies to ensure that their facilities uphold the strongest energy efficiency and sustainability standards

Developing a Net Zero Roadmap to chart a course to statewide carbon neutrality in buildings

A Multibillion Dollar Green New Deal Investment in the Clean Tech Economy that will Reduce Greenhouse Gas Emissions

Demonstrating New York's immediate commitment to implementing the nation's most ambitious clean energy agenda and creating high-quality clean energy jobs, Governor Cuomo is announcing $1.5 billion in competitive awards to support 20 large-scale solar, wind and energy storage projects across upstate New York. These investments will add over 1,650 megawatts of capacity and generate over 3,800,000 megawatt-hours of renewable energy annually - enough to power nearly 550,000 homes and create over 2,600 short and long-term jobs. Combined with the renewable energy projects previously announced under the Clean Energy Standard, New York has now awarded more than $2.9 billion to 46 projects statewide, enough to power over one million households.

The Green New Deal also includes new investments to jumpstart New York's offshore wind energy industry and support the State's world-leading target of 9,000 megawatts by 2035. New York will invest up to $200 million in port infrastructure to match private sector investment in regional development of offshore wind. This multi-location investment represents the nation's largest infrastructure commitment to offshore wind and solidifies New York's position as the hub of the burgeoning U.S. offshore wind industry.

These new investments build upon a $250 million commitment to electric vehicle infrastructure by the New York Power Authority's EVolve program, $3.5 billion in private investment in distributed solar driven by NYSERDA's NY-Sun program, and NY Green Bank transactions mobilizing nearly $1.75 billion in private capital for clean energy projects.

A Just Transition to a Clean Energy Economy

Deliver Climate Justice for Underserved Communities: The Green New Deal will help historically underserved communities prepare for a clean energy future and adapt to climate change by:

Giving communities a seat at the table by codifying the Environmental Justice and Just Transition Working Group into law and incorporating it into the planning process for the Green New Deal's implementation.

Directing the State's low-income energy task force to identify reforms to achieve greater impact of the public energy funds expended each year in order to increase the effect of funds and initiatives that target energy affordability to underserved communities.

Directing each of the State's ten Regional Economic Development Councils to develop an environmental justice strategy for their region.

Finance a Property Tax Compensation Fund to Help Communities Transition to the Clean Energy Economy: Governor Cuomo is introducing legislation to finance the State's $70 million Property Tax Compensation Fund to continue helping communities directly affected by the transition away from dirty and obsolete energy industries and toward the new clean energy economy. Specifically, this funding will protect communities impacted by the retirement of conventional power generation facilities.

Protect Labor Rights: To ensure creation of high-quality clean energy jobs, large-scale renewable energy projects supported by the Green New Deal will require prevailing wage, and the State's offshore wind projects will be supported by a requirement for a Project Labor Agreement.

Develop the Clean Tech Workforce: To prepare New York's workforce for the transition, New York State will take new steps to support workforce development, including establishing a New York State Advisory Council on Offshore Wind Economic and Workforce Development, as well as investing in an offshore wind training center that will provide New Yorkers with the skills and safety training required to construct this clean energy technology in New York.   

Richard Kauffman, Chairman of Energy and Finance for New York, said, "Governor Cuomo's Green New Deal will advance New York State further into the clean energy future, and we won't let the Trump Administration push us backwards. Governor Cuomo's new commitments ensure New York is the undisputed national clean energy and climate leader, and we will continue to build upon the foundations of the REV agenda to achieve a sustainable economy and healthy environment for generations of New Yorkers to come."

Alicia Barton, President and CEO, NYSERDA, said, "Climate scientists have made frighteningly clear that averting the worst effects of climate change will require bold action, not incremental steps, and Governor Cuomo's Green New Deal boldly goes where no others have before. His unwavering climate agenda includes the most aggressive clean energy target in U.S. history, the largest commitments to renewable energy and to offshore wind in the nation, a massive mobilization of clean energy jobs and an unprecedented investment in offshore wind port infrastructure. Together these actions make New York the clear national leader in the fight against climate change, and will show the world that New York can and will achieve a clean energy future for the sake of future generations."

DEC Commissioner Basil Seggos said, "The threat of climate change calls for bold action like Governor Cuomo's comprehensive agenda to make New York State carbon neutral. The Green New Deal ensures New York is continuing our nation-leading efforts to capitalize on the economic potential of the clean energy economy, while making sure those most vulnerable to climate change are benefitting from the state's efforts and investments. I look forward to working with my agency and authority partners on the Climate Action Council to develop and implement meaningful solutions to reduce greenhouse gas emissions from all sectors of our economy."  

John B. Rhodes, CEO, Department of Public Service, said, "With this nation-leading Green New Deal, Governor Cuomo puts New York on the path to fully clean electricity and to carbon neutrality with the strongest renewable energy goals in the nation. This will deliver the energy system that New York needs - cost-effective, reliable, and 100% clean.”

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Washington County solar farm incentives aim to steer projects to industrial sites with tax breaks, underground grid connections, decommissioning bonds, and wildlife corridors, balancing zoning, historic preservation, and Maryland renewable energy mandates.

Key Points

Policies steer solar to industrial sites with tax breaks, buried lines, and bonds, aligning with zoning and state goals.

✅ Tax breaks to favor rooftops and parking canopies

✅ Bury new grid lines to shift projects to industrial parks

✅ Require decommissioning bonds and wildlife corridors

Incentives for establishing solar farms at industrial spaces instead of on prime farmland are among the ideas the Washington County Planning Commission is recommending for the county to update its policies regarding solar farms.

Potential incentives would include tax breaks on solar equipment and requiring developers to put power-grid connections and line extensions underground, a move tied to grid upgrade cost debates in other regions, Planning Commission members said during a Monday meeting.

The tax break could make it more attractive for a developer to put a solar farm on a roof or over a parking lot, similar to California's building-solar requirement policies that favor rooftop generation, which could cost more than putting it on farmland, said Commission member Dave Kline, who works for FirstEnergy.

Requiring a company to bury new transmission lines could steer them to industrial or business parks where, theoretically, transmission lines are more readily available, Kline said Wednesday in a phone interview.

Chairman Clint Wiley suggested talking to industrial property owners to create a list of industrial sites that make sense for a solar site, which could generate extra income for the property owner.

Commission members also talked about requiring a wildlife corridor. Anne Arundel County requires such a corridor if a solar site is over 15 acres, according to Jill Baker, deputy director of planning and zoning. The solar site is broken into sections so animals such as deer can get through, she said.

However, that means the solar farm would take up more agricultural land, Commission member Jeremiah Weddle said. Weddle, a farmer, has repeatedly voiced concerns about solar farms using prime farmland.

County zoning law already states solar farms are prohibited in Rural Legacy Areas, Priority Preservation Areas, and within Antietam Overlay zones that preserve the Antietam National Battlefield viewshed. They also cannot be built on land with permanent preservation easements, Baker said.

However, a big reason county officials are looking to strengthen county policies for solar generating systems, or solar farms, is a recent court decision that ruled the Maryland Public Service Commission can preempt county zoning law when it comes to large solar farms.

County zoning law defines a solar energy generating system as a solar facility, with multiple solar arrays, tied into the power grid and whose primary purpose is to generate power to distribute and/or sell into the public utility grid rather than consuming that power on site.

The Maryland Court of Appeals ruled in July that the Public Service Commission can preempt local zoning regarding solar farms larger than 2 megawatts. But the ruling also stated local government is a "significant participant in the process" and the state commission must give "due consideration" to local zoning laws.

County officials are looking at recommendations for solar farms, whether they are over 2 megawatts or not.

Solar farms are a popular issue statewide, especially with Maryland solar subscriptions expanding, and were discussed at a recent Maryland Association of Counties meeting for planners, Planning and Zoning Director Stephen Goodrich said.

The thinking is the best way for counties to express their opinions about a solar project is to participate in the state commission's local public hearings, where issues like how solar owners are paid often arise, Goodrich said. Another popular idea is for the county to continue to follow its process, which requires a public hearing for a special exception to establish a solar farm. That will help the county form an opinion, on individual cases, to offer the state commission, he said.

Recommendations discussed by the Planning Commission include:

A break on personal property taxes, which is on equipment, including affordable battery storage that can firm output, to steer developers away from areas where the county doesn't want solar farms. The Board of County Commissioners have been split on tax-break agreements for solar farms, with a majority recently granting a few.

Protecting valuable historic sites.

Requiring a decommissioning bond for removing the equipment at the end of the solar farm's life. The bond is protection in case the company goes bankrupt. The county commissioners have been making such a bond a requirement when granting recent tax breaks.

Looking at allowing solar farms in stormwater-management areas.

Other counties, particularly in Western Maryland and on the Eastern Shore, are having issues with solar farms even as research to improve solar and wind advances, because land is cheaper and there are wide-open spaces, Goodrich said.

Many solar projects are being developed or proposed because state lawmakers passed legislation requiring 50% of electricity produced in the state to come from renewable sources by 2030, and a federal plan to expand solar is also shaping expectations. Of that 50%, 14.5% is to come from solar energy.

In Maryland, the average number of homes that can be powered by 1 megawatt of solar energy is about 110, according to the Solar Energy Industries Association's website.

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EU Energy Price Surge is driving up electricity and gas costs, inflation, and cost of living across the EU, prompting tax cuts, price caps, subsidies, and household support measures in France, Italy, Spain, and Germany.

Key Points

A surge in EU gas and electricity costs driving inflation and prompting government subsidies, tax cuts, and price caps.

✅ Low-income EU households now spend 50-70 percent more on energy.

✅ Governments deploy tax cuts, price caps, and direct subsidies.

✅ Gas-dependent power markets drive electricity price spikes.

Higher energy prices, including for natural gas, are pushing up electricity prices and the cost of living for households across the EU, prompting governments to cut taxes and provide financial support to the tune of several billion euros.

In the United Kingdom, households are bracing for high winter energy bills this season.

A series of reports published by Cambridge Econometrics in October and November 2022 found that households in EU countries are spending much more on energy than in 2020 and that governments are spending billions of euros to help consumers pay bills and cut taxes.

In France, for example, the poorest households now spend roughly one-third more on energy than in 2020. Between August 2020 and August 2022, household energy prices increased by 37 percent, while overall inflation increased by 9.2 percent.

“We estimate that the increase in household energy prices make an average French household €410 worse off in 2022 compared to 2020, mostly due to higher gas prices,” said the report.

In response to rising energy prices, the French government has adopted price caps and support measures forecast to cost over €71 billion, equivalent to 2.9 percent of French GDP, according to the U.K.-based consultancy.

In Italy, fossil fuels alone were responsible for roughly 30 percent of the country’s annual rate of inflation during spring 2022, according to Cambridge Econometrics. Unlike in other European countries, retail electricity prices have outpaced other energy prices in Italy and were 112 percent higher in July 2022 than in August 2020, the report found. Over the same time period, retail petrol prices were up 14 percent, diesel up 22 percent, and natural gas up 42 percent.

We estimate that households in the lowest-income quintile now spend about 50 percent more on energy than in 2020.

“We estimate that before government support, an average Italian household will be spending around €1,400 more on energy and fuel bills this year than in 2020,” the report said. “Low-income households are worse affected by the increasing energy prices: we estimate that households in the lowest-income quintile now spend about 50 percent more on energy than in 2020.”

Electricity production in Italy is dominated by natural gas, which has also led to a spike in wholesale electricity prices. In 2010, natural gas accounted for 50 percent of all electricity production. The share of natural gas fell to 33 percent in 2014, but then rose again, reaching 48 percent in 2021, and 56 percent in the first half of 2022, according to the report, as gas filled the gap of record low hydro power production in 2022.

In Spain, where electricity prices have seen extreme spikes, low-income households are now spending an estimated 70% more on energy than in 2020, according to Cambridge Econometrics.

Low-income squeeze
In Spain, low-income households are now spending an estimated 70% more on energy than in 2020, according to Cambridge Econometrics. It noted that the Spanish government has intervened heavily in energy markets by cutting taxes, introducing cash transfers for households, and capping the price of natural gas for power generators. The latter has led to lower electricity prices than in many other EU countries.

These support measures are forecast to cost the Spanish government over €35 billion, equivalent to nearly 3 percent of Spain’s GDP. Yet consumers will still feel the burden of higher costs of living, and rolling back electricity prices may prove difficult in the near term.

In March, electricity prices alone were responsible for 45 percent of year-on-year inflation in Spain but prices have since fallen as a result of government intervention, Cambridge Econometrics said. Between May and July, fossil fuels prices accounted for 19-25 percent of the overall inflation rate, and electricity prices for 16 percent.

Support measures
Rising inflation is also a real challenge in Germany, Europe’s largest economy, where German power prices have surged this year, adding pressure. Also there, higher gas prices are to blame.

“We estimate that the increase in energy prices currently make an average household €735 worse off in 2022 compared to 2020, mostly due to higher gas prices,” Cambridge Econometrics said, in a report focused on Germany.

The German government has introduced a number of support measures in order to help households, businesses and industry to pay energy bills, amid rising heating and electricity costs for consumers, including price caps that are expected to take effect in March next year. Moreover, households’ energy bills for December this year will be paid by the state. According to the report, these interventions will mitigate the impact of higher prices “to some extent”, but the aid measures are forecast to cost the government nearly 5 percent of GDP.

Fossil-fuel effect
In addition to gas, higher coal prices have also pushed up inflation in some countries, and U.S. electricity prices have reached multi-decade highs as inflation endures.

In Poland, which is heavily dependent on coal for electricity generation, fossil fuels accounted for roughly 40 percent of Poland’s overall year-on-year inflation rate in June 2022, which stood at over 14 percent, the consultancy said.

The price of household coal, which is widely used in heating Polish homes, increased by 157 percent between August 2021 and August 2022.

Higher energy prices in Poland are partly due to Polish and EU sanctions against Russian gas and coal. Other drivers are the weakening of the Polish zloty against the U.S. dollar and the euro, and the uptick in global demand after COVID-19 lockdowns, said Cambridge Econometrics.

Electricity prices have risen at a much slower pace than energy for transport and heating, with an annualized increase of 5.1 percent.

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Nunavut electricity rate increase sees QEC raise domestic electricity rates 6.6% over two years, affecting customer rates, base rates, subsidies, and kWh overage charges across communities, with public housing exempt and territory-wide pricing denied.

Key Points

A 6.6% QEC hike over 2018-2019, affecting customer rates, subsidies, and kWh overage; public housing remains exempt.

✅ 3.3% on May 1, 2018; 3.3% on Apr 1, 2019

✅ Subsidy caps: 1,000 kWh Oct-Mar; 700 kWh Apr-Sep

✅ Territory-wide base rate denied; public housing exempt

Ahead of the Nunavut government's approval of the general rate increase for the Qulliq Energy Corporation, many Nunavummiut wondered how the change would impact their electricity bills.

QEC's request for a 6.6-per-cent increase was approved by the government last week. The increase will be spread out over two years, a pattern similar to BC Hydro's two-year rate plan, with the first increase (3.3 per cent) effective May 1, 2018. The remaining 3.3 per cent will be applied on April 1, 2019.

Public housing units, however, are exempt from the government's increase altogether.

The power corporation also asked for a territory-wide rate, so every community would pay the same base rate (we'll go over specific terms in a minute if you're not familiar with them). But that request was denied, even as Manitoba Hydro scaled back increases next year, and QEC will now take the next two years reassessing each community's base rate.

#google#

So, what does this mean for your home's power bill? Well, there's a few things you need to know, which we'll get to in a second.

But in essence, as long as you don't go over the government-subsidized monthly electricity usage limit, you're paying an extra 3.61 cents per kilowatt hour (kWh).

To be clear, we're talking about non-government domestic rates — basically, private homeowners — and those living in a government-owned unit but pay for their own power.

The basics

First, some quick terminology. The "base rate" term we're going to use (and used above) in this story refers to the community rate. As in, what QEC charges customers in every community. The "customer rate" is the rate customers actually pay, after the government's subsidy.

The first thing you need to know is everyone in Nunavut starts off by paying the same customer rate, unlike jurisdictions using a price cap to limit spikes.

That's because the government subsidizes electricity costs, and that subsidy is different in every community, because the base rate is different.

For example, Iqaluit's new base rate after the 3.3 per cent increase (remember, the 6.6 per cent is being applied over two years) is 56.69 cents per kWh, while Kugaaruk's base rate rose to 112.34 cents per kWh. Those, by the way, are the territory's lowest and highest respective base rates.

However, customers in both Iqaluit and Kugaaruk will each now pay 28.35 cents per kWh because, remember, the government subsidizes the base rates in every community.

Now, remember earlier we mentioned a "government-subsidized monthly electricity usage limit?" That's where customers in various communities start to pay different amounts.

As simply as we can explain it, the government will only cover so much electricity usage in a month, in every household.

Between October and March, the government will subsidize the first 1,000 kilowatt hours, and only 700 kilowatt hours from April to September. QEC says the average Nunavut home will use about 500 kilowatt hours every month over the course of a year.

But if your household goes over that limit, you're at the mercy of your community's base rate for any extra electricity you use. Homes in Kugaaruk in December, for instance, will have to pay that 122.34 cents for every extra kilowatt hour it uses, while homes in Iqaluit only have to pay 56.69 cents per kWh for its extra electricity.

That's where many Nunavummiut have criticized the current rate structure, because smaller communities are paying more for their extra costs than larger communities.

QEC had hoped — as it had asked for — to change the structure so every community pays the same base rate. So regardless of if people go over their electricity usage limits for the government subsidy, everyone would pay the same overage rates.

But the government denied that request.

New rate is actually lower

The one thing we should highlight, however, is the new rate after the increase is actually lower than what customers were paying in 2014.

For the past seven months, customers have been getting power from QEC at a discount, whereas Newfoundland customers began paying for Muskrat Falls during the same period, to different effect.

That's because when QEC sets its rates, it does so based on global oil price forecasts. Since 2014, the price of oil worldwide has slumped, and so QEC was able to purchase it at less than it had anticipated.

When that happens, and QEC makes more than $1 million within a six month period thanks to the lower oil prices, it refunds the excess profits back to customers through a discount on electricity base rates — a mechanism similar to a lump-sum credit used elsewhere — the government subsidy, however, doesn't change so the savings are passed on directly to customers.

Now, the 6.6 per cent increase to electricity rates, is actually being applied to the discounted base rate from the last seven months.

So again, while customers are paying more than they have been for the last seven months, it's lower than what they were paying in 2014.

Lastly, to be clear, all the figures used in this story are only for domestic non-government rates. Commercial rates and changes have not been explored in this story, given the differences in subsidy and rate application.

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EU Renewable Power Overtakes Fossil Fuels, reflecting a greener energy mix as wind, solar, and hydro expand, cutting CO2 emissions and curbing coal while negative prices rise amid pandemic-driven demand drops.

Key Points

A milestone as renewables surpass fossil power in the EU, driven by wind, solar, hydro growth and pandemic demand.

✅ 40% renewables vs 34% fossil in H1 across 27 EU states

✅ Wind, solar, hydro rose; coal generation fell 32% year-on-year

✅ Lower demand, carbon prices, grid priority boosted clean output

Renewable power for the first time contributed a bigger share in the European generation mix than fossil fuels, as described in Europe's green surge as the fallout from the pandemic cut energy demand.

About 40 percent of the electricity in the first half in the 27 EU countries came from renewable sources, exceeding the global renewables share reported elsewhere, compared with 34 percent from plants burning fossil fuels, according to environmental group Ember in London. As a result, carbon dioxide emissions from the power sector fell 23 percent.

The rise is significant and encouraging for law makers as Europe prepares to spend billions of euros to recover from the virus, with wind power investments underscoring the momentum, and set the bloc on track to neutralize its carbon footprint by the middle of the century.

“This marks a symbolic moment ​in the transition of Europe’s electricity sector,” said Dave Jones, an electricity analyst at Ember. “For countries like Poland and Czech Republic grappling with how to get off coal, there is now a clear way out.”

While power demand slumped, output from wind and solar farms increased, reflecting global wind and solar gains, because more plants came online in breezy and sunny weather. At the same time, wet conditions boosted hydro power in Iberia and the Nordic markets.

Those conditions helped renewables become a rare bright spot throughout the economic tumult this year. In many areas, renewable sources of electricity have priority to the grid, meaning they could keep growing even as demand shrank and other power plants were turned off.

Electricity demand in the EU fell 7 percent overall. Fossil-fuel power generation plunged 18 percent in the first half compared with a year earlier. Renewable generation grew by 11 percent, according to Ember.

Coal was by far the biggest loser in 2020. It’s one of the most-polluting sources of power and its share is slumping in Europe as the price of carbon increases, with renewables surpassing coal in the US illustrating the broader shift, and governments move to cut emissions. Power from coal fell 32 percent across the EU.

Despite the economics, the decision to shut off coal for good will come down to political agreements between producers and governments, while reducing reliance on Russian energy reshapes policy debates.

One consequence of the jump in renewables is that negative prices have increased, as solar is reshaping prices in Northern Europe in similar ways. On particularly windy or sunny days when there isn’t much demand, the grid can be flooded with power. That’s leading wind farms to be shut off and customers to be paid to consume electricity.

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