Fuel cell cars at least 15 years away at best

Germany renewable energy milestone 2019 saw wind, solar, hydropower, and biomass outproduce coal and nuclear, as low gas prices and high CO2 costs under the EU ETS reshaped the electricity mix, per Fraunhofer ISE.

Key Points

It marks H1 2019 when renewables supplied 47.3% of Germany's electricity, surpassing coal and nuclear.

✅ Driven by high CO2 prices and cheap natural gas

✅ Wind and solar output rose; coal generation declined sharply

✅ Flexible gas plants outcompeted inflexible coal units

In Lippendorf, Saxony, the energy supplier EnBW is temporarily taking part of a coal-fired power plant offline. Not because someone ordered it — it simply wasn't paying off. Gas prices are low, CO2 prices are high, and with many hours of sunshine and wind, renewable methods are producing a great deal of electricity as part of Germany's energy transition now reshaping operations. And in the first half of the year there was plenty of sun and wind.

The result was a six-month period in which renewable energy sources, a trend echoed by the EU wind and solar record across the bloc, produced more electricity than coal and nuclear power plants together. For the first time 47.3% of the electricity consumers used came from renewable sources, while 43.4% came from coal-fired and nuclear power plants.

In addition to solar and wind power, renewable sources also include hydropower and biomass. Gas supplied 9.3%, reflecting how renewables are crowding out gas across European power markets, while the remaining 0.4% came from other sources, such as oil, according to figures published by the Fraunhofer Institute for Solar Energy Systems in July.

Fabian Hein from the think tank Agora Energiewende stresses that the situation is only a snapshot in time, with grid expansion woes still shaping outcomes. For example, the first half of 2019 was particularly windy and wind power production rose by around 20% compared to the first half of 2018.

Electricity production from solar panels rose by 6%, natural gas by 10%, while the share of nuclear power in German electricity consumption has remained virtually unchanged despite a nuclear option debate in climate policy.

Coal, on the other hand, declined. Black coal energy production fell by 30% compared to the first half of 2018, lignite fell by 20%. Some coal-fired power plants were even taken off the grid, even as coal still provides about a third of Germany's electricity. It is difficult to say whether this was an effect of the current market situation or whether this is simply part of long-term planning, says Hein.

Activists storm German mine in anti-coal protest

It is clear, however, that an increased CO2 price has made the ongoing generation of electricity from coal more expensive. Gas-fired power plants also emit CO2, but less than coal-fired power plants. They are also more efficient and that's why gas-fired power plants are not so strongly affected by the CO2 price

The price is determined at a European level and covers power plants and energy intensive industries in Europe. Other areas, such as heating or transport are not covered by the CO2 price scheme. Since a reform of CO2 emissions trading in 2017, the price has risen sharply. Whereas in September 2016 it was just over €5 ($5.6), by the end of June 2019 it had climbed to over €26.

Ups and downs

Gas as a raw material is generally more expensive than coal. But coal-fired power plants are more expensive to build. This is why operators want to run them continuously. In times of high demand, and therefore high prices, gas-fired power plants are generally started up, as seen when European power demand hit records during recent heatwaves, since it is worth it at these times.

Gas-fired power plants can be flexibly ramped up and down. Coal-fired power plants take 11 hours or longer to get going. That's why they can't be switched on quickly for short periods when prices are high, like gas-fired power plants. In the first half of the year, however, coal-fired power plants were also ramped up and down more often because it was not always worthwhile to let the power plant run around the clock.

Because gas prices were particularly low in the first half of 2019, some gas-fired power plants were more profitable than coal-fired plants. On June 29, 2019, the gas price at the Dutch trading point TTF was around €10 per megawatt hour. A year earlier, it had been almost €20. This is partly due to the relatively mild winter, as there is still a lot of gas in reserve, confirmed a spokesman for the Federal Association of the Energy and Water Industries (BDEW). There are also several new export terminals for liquefied natural gas. Additionally, weaker growth and trade wars are slowing demand for gas. A lot of gas comes to Europe, where prices are still comparatively high, reported the Handelsblatt newspaper.

The increase in wind and solar power and the decline in nuclear power have also reduced CO2 emissions. In the first half of 2019, electricity generation emitted around 15% less CO2 than in the same period last year, reported BDEW. However, the association demands that the further expansion of renewable energies should not be hampered. The target of 65% renewable energy can only be achieved if the further expansion of renewable energy sources is accelerated.

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Alberta Energy-Only Electricity Market faces capacity market debate, AESO price cap review, and coal-to-gas shifts by TransAlta and Capital Power, balancing reliability with volatility as investment signals evolve across Alberta's grid.

Key Points

An energy market paying generators only for electricity sold, with AESO oversight and a price cap guiding new capacity.

✅ AESO reviewing $999 per MW-h wholesale price cap.

✅ UCP retained energy-only; capacity market plan cancelled.

✅ TransAlta and Capital Power shift to coal-to-gas.

The Kenney government’s decision to cancel the redesign of Alberta’s electricity system to a capacity market won’t side-track two of the province’s largest power generators from converting coal-fired facilities to burn natural gas as part of Alberta’s shift from coal to cleaner energy overall.

But other changes could be coming to the province’s existing energy-only electricity market — including the alteration of the $999 per megawatt-hour (MW-h) wholesale price cap in Alberta.

The heads of TransAlta Corp. and Capital Power Corp. are proceeding with strategies to convert existing coal-fired power generating facilities to use natural gas in the coming years.

Calgary-based TransAlta first announced in 2017 that it would make the switch, as the NDP government was in the midst of overhauling the electricity sector and wind generation began to outpace coal in the province.

At the time, the Notley government planned to phase out coal-fired power by 2030, even as Alberta moved to retire coal by 2023 in practice, and shift Alberta into an electricity capacity market in 2021.

Such a move, made on the recommendation of the Alberta Electric System Operator (AESO), was intended to reduce price volatility and ensure system reliability.

Under the energy-only market, generators receive payments for electricity produced and sold into the grid. In a capacity market, generators are also paid for having power available on demand, regardless of how often they sell energy into the provincial grid.

The UCP government decided last month to ditch plans for a capacity market after consulting with the sector, saying it would be better for consumers.

On a conference call, TransAlta CEO Dawn Farrell said the company will convert coal-fired generating plants to burn gas, although it may alter the mix between simple conversions and switching to so-called “hybrid” plants.

(A hybrid conversion is a larger and more-expensive switch, as it includes installing a new gas turbine and heat-recovery steam generator, but it creates a highly efficient combined cycle unit.)

“Our view is fundamentally that carbon will be priced over the next 20 years no matter what,” she said Friday.

“We cannot get off coal fast enough in this company, and gas right now in Alberta is extremely inexpensive…

“So our coal-to-gas strategy is completely predicated on our belief that it’s not smart to be in carbon-intensive fuels for the future.”

Elsewhere in Canada, the Stop the Shock campaign has advocated for reviving coal power, underscoring ongoing policy debates.

The company said it’s planning the coal-to-gas conversion and re-powering of some or all of the units at its Keephills and Sundance facilities to gas-fired generation sometime between 2020 and 2023.

Similarly, Capital Power CEO Brian Vaasjo said the Edmonton-based company is moving ahead with a project that will allow it to burn both coal and natural gas at its Genesee generating station, even as Ontario’s energy minister sought to explore a halt to natural gas generation elsewhere.

In June, the company announced it would spend an estimated $50 million between 2019 and 2021 to allow it to use gas at the facility.

“What we’re doing is going to be dual fuel, so we will be able to operate 100 per cent natural gas or 100 per cent coal and everything in between,” Vaasjo said in an interview.

“You can expect to see we will be burning coal in the winter when natural gas prices are high, and we will be burning natural gas in summer when gas prices are real low.”

The transition comes as the government’s decision to stick with the energy-only market has been welcomed by players in the industry, and as Alberta's electricity future increasingly leans on wind resources.

A study by electricity consultancy EDC Associates found the capacity market would result in consumers paying an extra $1.4 billion in direct costs in 2021-22, as it required more generation to come online earlier than expected.

These additional costs would have accumulated to $10 billion by 2030, said EDC chief executive Duane-Reid Carlson.

For Capital Power, the decision to stick with the current system makes the province more investable in the future. Vaasjo said there was great uncertainty about the transition to a capacity market, and the possibility of rules shifting further.

Officials with Enmax Corp. said the city-owned utility would not have invested in future generation under the proposed capacity market.

“There is no short-term need (today) for new generation, so we’re just looking at the market and saying, ‘OK, as it evolves, we will see what happens,’” said Enmax vice-president Tim Boston.

Sticking with the energy-only market doesn’t mean Alberta will keep the existing rules.

In a July 25 letter, Alberta Energy Minister Sonya Savage directed AESO chair Will Bridge to examine if changes to the existing market are needed and report back by July 2020.

AESO, which manages the power grid, has been asked to investigate whether the current price cap of $999 per megawatt-hour (MW-h) should be changed.

The price ceiling hasn’t been altered since the energy-only market was implemented by the Klein government about two decades ago.

While allowing prices to go higher would increase volatility, reflecting lessons from Europe’s power crisis about scarcity pricing, during periods of rising demand and limited supply, it would send a signal to generators when investment in new generation is required, said Kent Fellows, a research associate at the University of Calgary’s School of Public Policy.

“Keeping the price (cap) too low could end up costing us more in the long run,” he said.

In a 2016 report, AESO said the province examined raising the price cap to $5,000 per MW-h, but “determined that it was unlikely to be successful in attracting investment due to increased price volatility.”

However, the amount of future generation that will be required in Alberta has been scaled back by the province.

In the United States, the Electricity Reliability Council of Texas (ERCOT) allows wholesale power prices in the state to climb to a cap of $9,000 per megawatt hours as demand rises — as it did Tuesday in the midst of a heat wave, according to Bloomberg.

Jim Wachowich, legal counsel for the Consumers’ Coalition of Alberta, said while few players are exposed to spot electricity prices, he has yet to be convinced raising the cap would be good for Albertans.

“Someone has to show me the evidence, and I suspect that’s what the minister has asked the AESO to do,” he said.

Generators say they believe some tinkering is needed to the energy-only market to ensure new generation is built when it’s required.

“The No. 1 change that the government has to … think about is in pricing,” added Farrell.

“If you don’t have enough of a price signal in an energy-only market to attract new capital, you won’t get new capital — and you’ll run up against the wall.”

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Renewables Overtake Coal in the US, as solar, wind, and hydro expand grid share; EIA data show an energy transition accelerated by COVID-19, slashing emissions, displacing fossil fuels, and reshaping electricity generation and climate policy.

Key Points

It refers to the milestone where US renewable energy generation surpassed coal, marking a pivotal energy transition.

✅ EIA data show renewables topped coal consumption in 2019.

✅ Solar, wind, and hydro displaced aging, costly coal plants.

✅ COVID-19 demand drop accelerated the energy transition.

Solar, wind and other renewable sources have toppled coal in energy generation in the United States for the first time in over 130 years, with the coronavirus pandemic accelerating a decline in coal that has profound implications for the climate crisis.

Not since wood was the main source of American energy in the 19th century has a renewable resource been used more heavily than coal, but 2019 saw a historic reversal, building on wind and solar reaching 10% of U.S. generation in 2018, according to US government figures.

Coal consumption fell by 15%, down for the sixth year in a row, while renewables edged up by 1%, even as U.S. electricity use trended lower. This meant renewables surpassed coal for the first time since at least 1885, a year when Mark Twain published The Adventures of Huckleberry Finn and America’s first skyscraper was erected in Chicago.

Electricity generation from coal fell to its lowest level in 42 years in 2019, with the US Energy Information Administration (EIA) forecasting that renewables will eclipse coal as an electricity source this year, while a global eclipse by 2025 is also projected. On 21 May, the year hit its 100th day in which renewables have been used more heavily than coal.

“Coal is on the way out, we are seeing the end of coal,” said Dennis Wamsted, analyst at the Institute for Energy Economics and Financial Analysis. “We aren’t going to see a big resurgence in coal generation, the trend is pretty clear.”

The ongoing collapse of coal would have been nearly unthinkable a decade ago, when the fuel source accounted for nearly half of America’s generated electricity, even as a brief uptick in 2021 was anticipated. That proportion may fall to under 20% this year, with analysts predicting a further halving within the coming decade.

A rapid slump since then has not been reversed despite the efforts of the Trump administration, which has dismantled a key Barack Obama-era climate rule to reduce emissions from coal plants and eased requirements that prevent coal operations discharging mercury into the atmosphere and waste into streams.

Coal releases more planet-warming carbon dioxide than any other energy source, with scientists warning its use must be rapidly phased out to achieve net-zero emissions globally by 2050 and avoid the worst ravages of the climate crisis.

Countries including the UK and Germany are in the process of winding down their coal sectors, and in Europe renewables are increasingly crowding out gas as well, although in the US the industry still enjoys strong political support from Trump.

“It’s a big moment for the market to see renewables overtake coal,” said Ben Nelson, lead coal analyst at Moody’s. “The magnitude of intervention to aid coal has not been sufficient to fundamentally change its trajectory, which is sharply downwards.”

Nelson said he expects coal production to plummet by a quarter this year but stressed that declaring the demise of the industry is “a very tough statement to make” due to ongoing exports of coal and its use in steel-making. There are also rural communities with power purchase agreements with coal plants, meaning these contracts would have to end before coal use was halted.

The coal sector has been beset by a barrage of problems, predominantly from cheap, abundant gas that has displaced it as a go-to energy source. The Covid-19 outbreak has exacerbated this trend, even as global power demand has surged above pre-pandemic levels. With plunging electricity demand following the shutting of factories, offices and retailers, utilities have plenty of spare energy to choose from and coal is routinely the last to be picked because it is more expensive to run than gas, solar, wind or nuclear.

Many US coal plants are ageing and costly to operate, forcing hundreds of closures over the past decade. Just this year, power companies have announced plans to shutter 13 coal plants, including the large Edgewater facility outside Sheboygan, Wisconsin, the Coal Creek Station plant in North Dakota and the Four Corners generating station in New Mexico – one of America’s largest emitters of carbon dioxide.

The last coal facility left in New York state closed earlier this year.

The additional pressure of the pandemic “will likely shutter the US coal industry for good”, said Yuan-Sheng Yu, senior analyst at Lux Research. “It is becoming clear that Covid-19 will lead to a shake-up of the energy landscape and catalyze the energy transition, with investors eyeing new energy sector plays as we emerge from the pandemic.”

Climate campaigners have cheered the decline of coal but in the US the fuel is largely being replaced by gas, which burns more cleanly than coal but still emits a sizable amount of carbon dioxide and methane, a powerful greenhouse gas, in its production, whereas in the EU wind and solar overtook gas last year.

Renewables accounted for 11% of total US energy consumption last year – a share that will have to radically expand if dangerous climate change is to be avoided. Petroleum made up 37% of the total, followed by gas at 32%. Renewables marginally edged out coal, while nuclear stood at 8%.

“Getting past coal is a big first hurdle but the next round will be the gas industry,” said Wamsted. “There are emissions from gas plants and they are significant. It’s certainly not over.”
 

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Germany Energy Price Defensive Shield counters soaring gas and electricity costs with a gas price brake, VAT cut, subsidies for households and SMEs, LNG terminals, renewables, temporary nuclear extension, and targeted borrowing to curb inflation.

Key Points

A 200 billion euro package to cap energy costs, subsidize basics, and stabilize inflation for firms and households.

✅ Gas price brake and VAT cut reduce consumer and SME energy bills.

✅ Temporary electricity subsidies and nuclear extension aid winter supply.

✅ Funded via new borrowing; supports LNG and renewable expansion.

German Chancellor Olaf Scholz set out a 200 billion euro ($194 billion) "defensive shield", including a gas price brake and a cut in sales tax for the fuel, to protect companies and households from the impact of soaring energy prices in Germany.

Europe's biggest economy is trying to cope with surging gas and electricity costs, with local utilities seeking help, caused largely by a collapse in Russian gas supplies to Europe, which Moscow has blamed on Western sanctions following its invasion of Ukraine in February.

3 minute readSeptember 29, 202211:35 AM PDTLast Updated 6 days ago
Germany agrees 200 bln euro package to shield against surging energy prices
By Holger Hansen and Kirsti Knolle

"Prices have to come down, so the government will do everything it can. To this end, we are setting up a large defensive shield," said Scholz.

Under the plans, to run until spring 2024, the government will introduce an emergency price brake on gas, the details of which will be announced next month, while Europe weighs emergency measures to limit electricity prices across the bloc. It is scrapping a planned gas levy meant to help firms struggling with high spot market prices. 

A temporary electricity price brake will subsidise basic consumption for consumers and small and medium-sized companies, and complements an electricity subsidy for industries under discussion. Sales tax on gas will fall to 7% from 19%.

In its efforts to cut its dependence on Russian energy, Germany is also promoting the expansion of renewable energy and developing liquefied gas terminals, but rolling back European electricity prices remains complex.

To help households and companies weather any winter supply disruption, amid rising heating and electricity costs this winter, especially in southern Germany, two nuclear plants previously due to close by the end of this year will be able to keep running until spring 2023.

The package will be financed with new borrowing this year, as Berlin makes use of the suspension of a constitutionally enshrined limit on new debt of 0.35% of gross domestic product.

Finance Minister Christian Lindner has said he wants to comply with the limit again next year, even as the EU outlines gas price cap strategies for the market.

Lindner, of the pro-business Free Democrats (FDP) who share power with Scholz's Social Democrats and the Greens, said on Thursday the country's public finances were stable.

"We can put it no other way: we find ourselves in an energy war," said Lindner. "We want to clearly separate crisis expenditure from our regular budget management, we want to send a very clear signal to the capital markets."

He also said the steps would act as a brake on inflation, which hit its highest level in more than a quarter of century in September.

Opposition conservative Markus Soeder, premier of the southern state of Bavaria, said the steps gave the right signal.

"It gives industry and citizens confidence that we can get through the winter," he said.

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National Grid Cybersecurity Component Removal signals NCSC and GCHQ oversight of critical infrastructure, replacing NR Electric and Nari Technology grid control systems to mitigate supply chain risk, cyber threats, and blackout risk.

Key Points

A UK move to remove China-linked grid components after NCSC/GCHQ advice, reducing cyber and blackout risks.

✅ NCSC advice to remove NR Electric components

✅ GCHQ-linked review flags critical infrastructure risks

✅ Aims to cut blackout risk and supply chain exposure

Britain's National Grid has started removing components supplied by a unit of China-backed Nari Technology's from the electricity transmission network over cybersecurity fears, reflecting a wider push on protecting the power grid across critical sectors.

The decision came in April after the utility sought advice from the National Cyber Security Center (NCSC), a branch of the nation's signals intelligence agency, Government Communications Headquarters (GCHQ), amid campaigns like the Dragonfly campaign documented by Symantec, the newspaper quoted a Whitehall official as saying.

National Grid declined to comment citing "confidential contractual matters." "We take the security of our infrastructure very seriously and have effective controls in place to protect our employees and critical assets, while preparing for an independent operator transition in Great Britain, to ensure we can continue to reliably, safely and securely transmit electricity," it said in a statement.

The report said an employee at the Nari subsidiary, NR Electric Company-U.K., had said the company no longer had access to sites where the components were installed, at a time when utilities worldwide have faced control-room intrusions by state-linked hackers, and that National Grid did not disclose a reason for terminating the contracts.

It quoted another person it did not name as saying the decision was based on NR Electric Company-U.K.'s components that help control and balance the grid, respond to work-from-home demand shifts, and minimize the risk of blackouts.

It was unclear whether the components remained in the electricity transmission network, the report said, amid reports of U.S. power plant breaches that have heightened vigilance.

NR Electric Company-U.K., GCHQ and the Chinese Embassy in London did not immediately respond to requests for comment outside of business hours.

Britain's Department for Energy Security and Net Zero said that it did not comment on the individual business decisions taken by private organizations. "As a government department we work closely with the private sector to safeguard our national security, and to support efforts to fast-track grid connections across the network," it said in a statement.
 

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Edmonton Electricity Rate Increase signals Alberta RRO changes as the UCP ends the NDP price cap; kilowatt-hour rises to 7.5 cents, raising energy bills for typical households by 3.9 percent in December.

Key Points

The end of Alberta’s RRO cap lifts kWh to 7.5 cents, raising an average Edmonton home’s bill about 3.9% in December.

✅ RRO price cap scrapped; kWh set at 7.5 cents in December.

✅ Average 600 kWh home pays about $7.37 more vs November.

✅ UCP ends NDP-era cap after stakeholder and consumer feedback.

Electricity will be more expensive for some Edmontonians in December after the UCP government scrapped a program that capped rates amid prices spiking in Alberta this year.

Effective Nov. 30, the province got rid of the consumer price cap program for Regulated Rate Option customers.

In 2017, the NDP government capped the kilowatt per hour price at 6.8 cents under a consumer price cap policy, meaning Edmontonians would pay the market rate and not more than the capped price.

In December, kWh will cost 7.5 cents amid expert warnings to lock in rates across Alberta. Typical Edmonton homes use an average of 600 kWh, increasing bills by $7.37, or 3.9 per cent, compared to November.

In Calgary, electricity bills have been rising as well, reflecting similar market pressures.

The NDP created the capacity system to bring price stability to Albertans, though a Calgary retailer urged scrapping the market overhaul at the time.

Energy Minister Sonya Savage said the UCP decided to scrap it after "overwhelming" feedback from consumers and industry stakeholders, as the province introduced new electricity rules earlier this year. 

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