Spain's Industry Minister Miguel Sebastian buoyed hopes in the country's solar power industry just days after announcing a dramatic cut in subsidies.
Madrid recently announced plans to cut by almost 90 percent its subsidies for solar photovoltaic (PV) power after a stampede for support left Madrid with a multi-billion euro liability.
But the cuts will not apply to solar thermal, a technology that concentrates the sun's light to produce heat and steam which in turn drives turbines, rather than producing electricity directly in silicon PV panels.
"It is Spanish companies which are exporting technology to generate this (solar thermal) energy, including to the United States," said Industry Minister Miguel Sebastian.
Sebastian was speaking as work started on a new 50 megawatt plant in the southern town of Ciudad Real, slated to come on line in 2010 and which could power around 30,000 homes.
The Cobra unit of Spanish construction company ACS will build the plant.
"This makes us the standard for clean technology with a great future," he said, suggesting the government was committed to this form of solar power.
Sebastian's comments buoyed hopes among investors, some of whom expect Madrid to cut support for solar thermal from 2010. Shares in Solaria, a Spanish company which makes both solar thermal panels and PV panels, rose more than 25 percent directly as a result of Sebastian's comments, traders said.
Solar thermal, also known as concentrated solar power (CSP), has been slower to take off than other, smaller scale alternative energy technologies such as wind and solar PV, because it requires more up-front investment.
But it may be the next big thing as coal and oil prices rise and because of new subsidy support in hot, sunny countries like Spain, where it works best.
Germany's Solar Millennium helped develop Spain's Andasol 1 solar thermal project, Europe's first such plant, which is due to start power production in October.
"The feed-in tariff (subsidy) in Spain gives a lot of confidence to banks," Henner Gladen, Solar Millennium chief technology officer, told Reuters.
"The next big market will be the United States, once we see the investment tax credit in law, which we expect either end this year or next year," he added, expecting 200 MW or 400 MW units there which would rival the capacity of conventional gas and coal plants.
Other expected markets where subsidies are planned or in operation include Australia, Italy and Greece.
Spain's planned solar PV cut will grant subsidies annually to 100 MW large installations, compared with expected installations this year of at least 1,000 MW. The cap will also allow for 200 MW of smaller, roof-mounted units.
ITER Nuclear Fusion advances tokamak magnetic confinement, heating deuterium-tritium plasma with superconducting magnets, targeting net energy gain, tritium breeding, and steam-turbine power, while complementing laser inertial confinement milestones for grid-scale electricity and 2025 startup goals.
Key Points
ITER Nuclear Fusion is a tokamak project confining D-T plasma with magnets to achieve net energy gain and clean power.
✅ Tokamak magnetic confinement with high-temp superconducting coils
✅ Deuterium-tritium fuel cycle with on-site tritium breeding
✅ Targets net energy gain and grid-scale, low-carbon electricity
It sounds like the stuff of dreams: a virtually limitless source of energy that doesn’t produce greenhouse gases or radioactive waste. That’s the promise of nuclear fusion, often described as the holy grail of clean energy by proponents, which for decades has been nothing more than a fantasy due to insurmountable technical challenges. But things are heating up in what has turned into a race to create what amounts to an artificial sun here on Earth, one that can provide power for our kettles, cars and light bulbs.
Today’s nuclear power plants create electricity through nuclear fission, in which atoms are split, with next-gen nuclear power exploring smaller, cheaper, safer designs that remain distinct from fusion. Nuclear fusion however, involves combining atomic nuclei to release energy. It’s the same reaction that’s taking place at the Sun’s core. But overcoming the natural repulsion between atomic nuclei and maintaining the right conditions for fusion to occur isn’t straightforward. And doing so in a way that produces more energy than the reaction consumes has been beyond the grasp of the finest minds in physics for decades.
But perhaps not for much longer. Some major technical challenges have been overcome in the past few years and governments around the world have been pouring money into fusion power research as part of a broader green industrial revolution under way in several regions. There are also over 20 private ventures in the UK, US, Europe, China and Australia vying to be the first to make fusion energy production a reality.
“People are saying, ‘If it really is the ultimate solution, let’s find out whether it works or not,’” says Dr Tim Luce, head of science and operation at the International Thermonuclear Experimental Reactor (ITER), being built in southeast France. ITER is the biggest throw of the fusion dice yet.
Its $22bn (£15.9bn) build cost is being met by the governments of two-thirds of the world’s population, including the EU, the US, China and Russia, at a time when Europe is losing nuclear power and needs energy, and when it’s fired up in 2025 it’ll be the world’s largest fusion reactor. If it works, ITER will transform fusion power from being the stuff of dreams into a viable energy source.
Constructing a nuclear fusion reactor ITER will be a tokamak reactor – thought to be the best hope for fusion power. Inside a tokamak, a gas, often a hydrogen isotope called deuterium, is subjected to intense heat and pressure, forcing electrons out of the atoms. This creates a plasma – a superheated, ionised gas – that has to be contained by intense magnetic fields.
The containment is vital, as no material on Earth could withstand the intense heat (100,000,000°C and above) that the plasma has to reach so that fusion can begin. It’s close to 10 times the heat at the Sun’s core, and temperatures like that are needed in a tokamak because the gravitational pressure within the Sun can’t be recreated.
When atomic nuclei do start to fuse, vast amounts of energy are released. While the experimental reactors currently in operation release that energy as heat, in a fusion reactor power plant, the heat would be used to produce steam that would drive turbines to generate electricity, even as some envision nuclear beyond electricity for industrial heat and fuels.
Tokamaks aren’t the only fusion reactors being tried. Another type of reactor uses lasers to heat and compress a hydrogen fuel to initiate fusion. In August 2021, one such device at the National Ignition Facility, at the Lawrence Livermore National Laboratory in California, generated 1.35 megajoules of energy. This record-breaking figure brings fusion power a step closer to net energy gain, but most hopes are still pinned on tokamak reactors rather than lasers.
In June 2021, China’s Experimental Advanced Superconducting Tokamak (EAST) reactor maintained a plasma for 101 seconds at 120,000,000°C. Before that, the record was 20 seconds. Ultimately, a fusion reactor would need to sustain the plasma indefinitely – or at least for eight-hour ‘pulses’ during periods of peak electricity demand.
A real game-changer for tokamaks has been the magnets used to produce the magnetic field. “We know how to make magnets that generate a very high magnetic field from copper or other kinds of metal, but you would pay a fortune for the electricity. It wouldn’t be a net energy gain from the plant,” says Luce.
One route for nuclear fusion is to use atoms of deuterium and tritium, both isotopes of hydrogen. They fuse under incredible heat and pressure, and the resulting products release energy as heat
The solution is to use high-temperature, superconducting magnets made from superconducting wire, or ‘tape’, that has no electrical resistance. These magnets can create intense magnetic fields and don’t lose energy as heat.
“High temperature superconductivity has been known about for 35 years. But the manufacturing capability to make tape in the lengths that would be required to make a reasonable fusion coil has just recently been developed,” says Luce. One of ITER’s magnets, the central solenoid, will produce a field of 13 tesla – 280,000 times Earth’s magnetic field.
The inner walls of ITER’s vacuum vessel, where the fusion will occur, will be lined with beryllium, a metal that won’t contaminate the plasma much if they touch. At the bottom is the divertor that will keep the temperature inside the reactor under control.
“The heat load on the divertor can be as large as in a rocket nozzle,” says Luce. “Rocket nozzles work because you can get into orbit within minutes and in space it’s really cold.” In a fusion reactor, a divertor would need to withstand this heat indefinitely and at ITER they’ll be testing one made out of tungsten.
Meanwhile, in the US, the National Spherical Torus Experiment – Upgrade (NSTX-U) fusion reactor will be fired up in the autumn of 2022, while efforts in advanced fission such as a mini-reactor design are also progressing. One of its priorities will be to see whether lining the reactor with lithium helps to keep the plasma stable.
Choosing a fuel Instead of just using deuterium as the fusion fuel, ITER will use deuterium mixed with tritium, another hydrogen isotope. The deuterium-tritium blend offers the best chance of getting significantly more power out than is put in. Proponents of fusion power say one reason the technology is safe is that the fuel needs to be constantly fed into the reactor to keep fusion happening, making a runaway reaction impossible.
Deuterium can be extracted from seawater, so there’s a virtually limitless supply of it. But only 20kg of tritium are thought to exist worldwide, so fusion power plants will have to produce it (ITER will develop technology to ‘breed’ tritium). While some radioactive waste will be produced in a fusion plant, it’ll have a lifetime of around 100 years, rather than the thousands of years from fission.
At the time of writing in September, researchers at the Joint European Torus (JET) fusion reactor in Oxfordshire were due to start their deuterium-tritium fusion reactions. “JET will help ITER prepare a choice of machine parameters to optimise the fusion power,” says Dr Joelle Mailloux, one of the scientific programme leaders at JET. These parameters will include finding the best combination of deuterium and tritium, and establishing how the current is increased in the magnets before fusion starts.
The groundwork laid down at JET should accelerate ITER’s efforts to accomplish net energy gain. ITER will produce ‘first plasma’ in December 2025 and be cranked up to full power over the following decade. Its plasma temperature will reach 150,000,000°C and its target is to produce 500 megawatts of fusion power for every 50 megawatts of input heating power.
“If ITER is successful, it’ll eliminate most, if not all, doubts about the science and liberate money for technology development,” says Luce. That technology development will be demonstration fusion power plants that actually produce electricity, where advanced reactors can build on decades of expertise. “ITER is opening the door and saying, yeah, this works – the science is there.”
WA $600 Electricity Credit supports households with power bills as a budget stimulus, delivering an automatic rebate via Synergy and Horizon, funded by the Bell Group settlement to aid COVID-19 recovery and local spending.
Key Points
A one-off $600 power bill credit for all Synergy and Horizon residential accounts, funded by the Bell Group settlement.
✅ Automatic, not means-tested; applied to Synergy and Horizon accounts.
✅ Can offset upcoming bills or carry forward to future statements.
✅ Funded by Bell Group payout; aims to ease cost-of-living pressures.
Washington Premier Mark McGowan has announced more than a million households will receive a $600 electricity credit on their electricity account before their next bill.
The $650 million measure will form part of Thursday's pre-election state budget, similar to legislation to lower electricity rates in other jurisdictions, which has been delayed since May because of the pandemic and will help deflect criticism by the opposition that Labor hasn't done enough to stimulate WA's economy.
Mr McGowan made the announcement on Sunday while visiting a family in the electorate of Bicton.
"Here in WA, our state is in the best possible position as we continue our strong recovery from COVID-19, but times are still tough for many West Australians, and there is always more work to do," he said.
"[The credit] will mean WA families have a bit of extra money available in the lead up to Christmas.
"But I have a request, if this credit means you can spend some extra money, use it to support our local WA businesses."
The electricity bill credit will be automatically applied to every Synergy or Horizon residential account from Sunday, echoing moves such as reconnections for nonpayment by Hydro One in Canada.
It can be applied to future bills and will not be means tested.
"The $600 credit is fully funded through the recent Bell Group settlement, for the losses incurred in the Bell Group collapse in the early 1990s," Mr McGowan said.
"It made sense that these funds go straight back to Western Australians."
In September, the liquidator for the Bell Group and its finance arm distributed funds to its five major creditors, including $670 million to the WA government. The payment marked the close of the 30-year battle to recover taxpayer funds squandered during the WA Inc era of state politics.
The payout is the result of litigation stemming from the 1988 partnership between then Labor government and entrepreneur Alan Bond in acquiring major interests in Robert Holmes à Court’s failing Bell Group, following the 1987 stock market crash.
WA shadow minister for cost of living, Tony Krsticevic, said the $600 credit was returning money back into West Australian's pockets from "WA Labor's darkest days".
“This is taxpayers’ money out of a levy which was brought in to pay for Labor’s scandalous WA Inc losses of $450 million in the 1980s,” he said.
“This money should be returned to West Australians.
“WA families are in desperate need of it because they are struggling under cost of living increases of $850 every year since 2017 under WA Labor, amid concerns elsewhere that an electricity recovery rate could lead to higher hydro bills.
“But they need more than just a one-off payment. These $850 cost of living increases are an on-going burden.”
Prior to the onset of the coronavirus pandemic, the opposition believed it was gaining traction by attacking the government's increases to fees and charges in its first three budgets, and by urging an electricity market overhaul to favor consumers.
Last year, Labor increased household fees and charges by $127.77, which came on top of increases over the prior two budgets, as other jurisdictions faced hydro rate increases of around 3 per cent.
According the state's annual report on its finances released in September, the $2.6 billion budget surplus forecast in the at the end of 2019 had been reduced by $920 million to $1.7 billion despite the impact of the coronavirus.
But total public sector net debt was at $35.4 billion, down from the $36.1 billion revision at the end of 2019 in the mid-year review.
U.S. Energy Transition traces the shift from coal and oil to natural gas, nuclear power, and renewables like wind and solar, driven by efficiency, grid modernization, climate goals, and economic innovation.
Key Points
The U.S. Energy Transition is the shift from fossil fuels to cleaner power, driven by tech, policy, and markets.
✅ Shift from coal and oil to gas, nuclear, wind, and solar
✅ Enabled by grid modernization, storage, and efficiency
✅ Aims to cut emissions while ensuring reliability and affordability
The evolution of energy use in the United States is a dynamic narrative that reflects technological advancements, economic shifts, environmental awareness, and societal changes over time. From the nation's early reliance on wood and coal to the modern era dominated by oil, natural gas, and renewable sources, the story of energy consumption in the U.S. is a testament to innovation and adaptation.
Early Energy Sources: Wood and Coal
In the early days of U.S. history, energy needs were primarily met through renewable resources such as wood for heating and cooking. As industrialization took hold in the 19th century, coal emerged as a dominant energy source, fueling steam engines and powering factories, railways, and urban growth. The widespread availability of coal spurred economic development and shaped the nation's infrastructure.
The Rise of Petroleum and Natural Gas
The discovery and commercialization of petroleum in the late 19th century transformed the energy landscape once again. Oil quickly became a cornerstone of the U.S. economy, powering transportation, industry, and residential heating, and informing debates about U.S. energy security in policy circles. Concurrently, natural gas emerged as a significant energy source, particularly for heating and electricity generation, as pipelines expanded across the country.
Electricity Revolution
The 20th century witnessed a revolution in electricity generation and consumption, and understanding where electricity comes from helps contextualize how systems evolved. The development of hydroelectric power, spurred by projects like the Hoover Dam and Tennessee Valley Authority, provided clean and renewable energy to millions of Americans. The widespread electrification of rural areas and the proliferation of appliances in homes and businesses transformed daily life and spurred economic growth.
Nuclear Power and Energy Diversification
In the mid-20th century, nuclear power emerged as a promising alternative to fossil fuels, promising abundant energy with minimal greenhouse gas emissions. Despite concerns about safety and waste disposal, nuclear power plants became a significant part of the U.S. energy mix, providing a stable base load of electricity, even as the aging U.S. power grid complicates integration of variable renewables.
Renewable Energy Revolution
In recent decades, the U.S. has seen a growing emphasis on renewable energy sources such as wind, solar, and geothermal power, yet market shocks and high fuel prices alone have not guaranteed a rapid green revolution, prompting broader policy and investment responses. Advances in technology, declining costs, and environmental concerns have driven investments in clean energy infrastructure and policies promoting renewable energy adoption. States like California and Texas lead the nation in wind and solar energy production, demonstrating the feasibility and benefits of transitioning to sustainable energy sources.
Energy Efficiency and Conservation
Alongside shifts in energy sources, improvements in energy efficiency and conservation have played a crucial role in reducing per capita energy consumption and greenhouse gas emissions. Energy-efficient appliances, building codes, and transportation innovations have helped mitigate the environmental impact of energy use while reducing costs for consumers and businesses, and weather and economic factors also influence demand; for example, U.S. power demand fell in 2023 on milder weather, underscoring the interplay between efficiency and usage.
Challenges and Opportunities
Looking ahead, the U.S. faces both challenges and opportunities in its energy future, as recent energy crisis effects ripple across electricity, gas, and EVs alike. Addressing climate change requires further investments in renewable energy, grid modernization, and energy storage technologies. Balancing energy security, affordability, and environmental sustainability remains a complex task that requires collaboration between government, industry, and society.
Conclusion
The evolution of energy use throughout U.S. history reflects a continuous quest for innovation, economic growth, and environmental stewardship. From wood and coal to nuclear power and renewables, each era has brought new challenges and opportunities in meeting the nation's energy needs. As the U.S. transitions towards a cleaner and more sustainable energy future, leveraging technological advancements and embracing policy solutions, amid debates over U.S. energy dominance, will be essential in shaping the next chapter of America's energy story.
Connect the Grid Act links ERCOT to neighboring grids via high-voltage interconnections, enhancing reliability, resilience, and renewables integration. It enables power imports and exports with SPP, MISO, and the Western Interconnection under FERC oversight.
Key Points
A plan to link ERCOT with neighboring grids, improving reliability, enabling energy trade, and integrating renewables.
✅ High-voltage ties with SPP, MISO, and the Western Interconnection
✅ Enables imports during crises and exports of surplus power
✅ Brings ERCOT under FERC oversight; DoE to study Mexico links
In the aftermath of the devastating 2021 Texas blackouts, which exposed the vulnerabilities of the state's energy infrastructure, a significant legislative effort is underway to transform Texas from an energy island into a connected component of the broader U.S. power grid. Spearheaded by U.S. Representative Greg Casar, D-Austin, the proposed Connect the Grid Act is part of a push for smarter electricity infrastructure that seeks to remedy the isolation of the Electric Reliability Council of Texas (ERCOT) from neighboring power grids, a condition that significantly contributed to the crisis during Winter Storm Uri.
The blackouts, which left millions without power and resulted in significant loss of life and economic damage, underscored the inherent risks of Texas's unique energy infrastructure. Unlike the rest of the continental U.S., Texas's grid operates independently, limiting its ability to import electricity during emergencies. This isolation was a critical factor in the state's inability to respond effectively to the increased demand for power during the storm.
Recognizing the urgent need for a more resilient and integrated energy system, Rep. Casar's legislation aims to establish high-voltage connections between ERCOT and adjacent grid-operating organizations, including the Southern Power Pool, MISO, and the Western Interconnection. This would not only improve the reliability of Texas's power supply by enabling energy imports during crises but also allow the state to export surplus energy, thereby enhancing the economic efficiency and sustainability of its energy market.
The Connect the Grid Act proposes a range for the new connections' transfer capabilities, aiming to significantly boost the amount of power that can be shared between Texas and its neighbors. Such interconnectivity is anticipated to reduce energy costs for consumers by mitigating scarcity and enabling access to Texas's vast renewable energy resources, even as grid modernization affordability remains a point of debate among stakeholders. However, the bill faces opposition due to concerns over federal oversight, as it would bring ERCOT under the jurisdiction of the Federal Energy Regulatory Commission (FERC).
Some analysts note that policies such as later school start dates can ease late-summer peak demand as well.
At a press conference held at the IBEW Local 520 headquarters, Rep. Casar, along with environmental groups, labor unions, and frontline workers, highlighted the benefits of the proposed legislation. The bill also includes provisions for a Department of Energy study on the potential benefits of interconnecting with Mexico, and parallels proposals for macrogrids in Canada that seek greater reliability across borders.
The Connect the Grid Act reflects a broader national trend towards increasing the interconnectivity of regional power grids, a move deemed essential for the transition to renewable energy and combating climate change risks to the U.S. grid through expanded interconnection. By enabling the flow of clean energy from renewable-rich areas like Texas to energy-hungry urban centers, the legislation supports a more sustainable and resilient national energy infrastructure.
Critics of Texas's grid independence, including energy experts and federal regulators, have long advocated for such interconnections. They argue that increased access to neighboring grids could have mitigated the effects of the 2021 blackouts and emphasize the importance of a grid that can withstand extreme weather events. The Federal Energy Regulatory Commission and the North American Electric Reliability Corp. have both explored mandates and studies to promote electricity transfer between regional grids, while states like California grid upgrades are investing to modernize networks as well, highlighting the national importance of grid interconnectivity.
Despite the potential challenges of increased federal regulation, proponents of the Connect the Grid Act argue that the benefits of interconnection far outweigh the drawbacks. By reducing energy costs, enhancing grid reliability, and promoting renewable energy, the legislation aims to secure a more sustainable and equitable energy future for Texas and the nation.
If passed, the Connect the Grid Act would mark a historic shift in Texas's energy policy, ending the state's long-standing isolation and positioning it as a key player in the national and potentially international energy landscape, and echoes calls for a western Canadian electricity grid to strengthen regional ties. The bill sets a completion deadline of January 1, 2035, for the construction of the new connections, with other projects, like the one by Pattern Energy, potentially connecting ERCOT to parts of the Southeastern grid even earlier, by 2029. This legislative effort represents a critical step towards ensuring that Texas can meet its energy needs reliably and sustainably, while also contributing to the broader goal of transitioning to a cleaner, more resilient power system.
France-Germany Energy Solidarity underscores EU energy crisis cooperation: gas supply swaps, electricity imports, price cap talks, and curbs on speculation as Russian pipeline flows halt and winter demand rises across the bloc.
Key Points
A pact where France sends gas to Germany as Germany supplies power, bolstering EU cooperation and winter security.
✅ Gas to Germany; power to France amid nuclear outages.
✅ EU price cap, anti-speculation, joint gas purchasing.
✅ No new Spain-France pipeline unless case improves.
France will send gas to Germany if needed while Germany stands ready to provide it with electricity, President Emmanuel Macron said on Monday, saying this showcased European solidarity in the face of the energy crisis stemming from the war in Ukraine, which many view as a wake-up call to ditch fossil fuels across the bloc.
European gas prices surged, share prices slid and the euro sank on Monday after Russia stopped pumping gas via a major supply route, and Germany's 200 billion euro package sought to cushion the blow, in another warning to the 27-nation EU as it scrambled to respond to the crisis ahead of winter. read more
"Germany needs our gas and we need power from the rest of Europe, notably Germany," France's president told a news conference as EU electricity reform remains under debate following a phone call with German Chancellor Olaf Scholz.
The necessary connections for France to deliver gas to Germany when needed would be finalised in the coming weeks, he said, adding that France, which had long been a net exporter of electricity, will need help from its neighbours because of technical problems its nuclear plants face. read more
Macron, however, said that he did not understand demand for a third gas link between France and Spain, rejecting calls to increase capacity with a new pipeline.
He added he was open to changing his mind on that point, especially as Germany's utility troubles deepen, should Scholz or Prime Minister Pedro Sanchez argue convincingly for it.
Ahead of a meeting on Friday of EU energy ministers, Macron said France was in favour of buying gas at a European rather than a national level, as emergency electricity measures are weighed, and called for European Union measures to control energy prices.
He said it was necessary to act against speculation on energy prices at EU level, as the EU outlines possible gas price cap strategies for discussion, and also said France was in favour of putting a cap on the price of pipeline Russian gas.
Macron also repeated calls for all to turn down air conditioners when it's hot and to limit heating to 19 degrees Celsius this winter, noting that rolling back electricity prices is tougher than it appears this year.
AEMC Storage Charging Rules spark industry backlash as Tesla, Snowy Hydro, and investors warn transmission charges on batteries and pumped hydro could deter grid-scale storage, distort the National Electricity Market, and slow decarbonisation.
Key Points
AEMC Storage Charging Rules are proposals to bill grid storage for network use, shaping costs and investment.
✅ Charges apply when batteries draw power; double-charging concerns.
✅ Tesla and Snowy Hydro warn of reduced viability and delays.
Tesla, Snowy Hydro and other big suppliers of storage capacity on Australia’s main electricity grid warn proposed rule changes amount to a tax on their operations that will deter investors and slow the decarbonisation of the industry.
The Australian Energy Market Commission (AEMC) will release its final decision this Thursday on new rules for integrating batteries, pumped hydro and other forms of storage.
The AEMC’s draft decision, released in July, angered many firms because it proposed charging storage providers for drawing power, ignoring a recommendation by the Australian Electricity Market Operator (AEMO) that they be exempt.
Battery maker Tesla, which has supplied some of the largest storage to the National Electricity Market, said in a submission that the charges would “kill the commercial viability of all grid storage projects, causing inefficient investment in alternative network”, with consumers paying higher costs.
Snowy Hydro, which is building the giant Snowy 2 pumped storage project and already operates a smaller one, said in its submission the proposed changes if implemented would jeopardise investment.
“This is a major policy change, amounting to a tax on infrastructure critical to achieving a renewable future,” Snowy Hydro said.
AEMO itself argued it was important storage providers were not “disincentivised from connecting to the transmission network, as they generally provide a net benefit to the power system by charging at periods of low demand”.
Australia’s electricity grid faces economic and engineering challenges, similar to Ontario's storage push as it adjusts to the arrival of lower cost and also lower carbon alternatives to fossil fuels.
While rule changes are necessary to account for operators that can both draw from and supply power, how they are implemented can have long-lasting effects on the technologies that get encouraged or repelled, including control of EV charging issues, independent experts say.
“It doesn’t have to be this way,” said Bruce Mountain, director of the Victoria Energy Policy Centre. “In Britain, where the UK grid transformation is underway, the regulator dealing with the same issues has said that storage devices don’t pay the system charges when they withdraw electricity from the grid,” he said.
The prospect that storage operators will have to pay transmission charges could “drastically” affect their profitability since their business models rely on the difference between the price their pay for power and how much they can sell it for. Gas generators and network monopolies would benefit from the change, Mountain said.
Sign up to receive an email with the top stories from Guardian Australia every morning
An AEMC spokesperson said the commission had consulted widely, including from those who objected to the payment for transmission access.
“The market is moving towards a future that will be increasingly reliant on energy storage to firm up the growing volume of renewable energy and deliver on the increasing need for critical system security services, with examples such as EVs supporting grid stability in California as the ageing fleet of thermal generators retire,” the spokesperson said, declining to elaborate on the final ruling before it is published.
“The regulatory framework needs to facilitate this transition as the energy sector continues to decarbonise,” the official said.
AusNet, which operates the Victorian energy transmission grid, said that while “technological neutrality is paramount for battery and hybrid unit connections to both the distribution and transmission networks,” it did not back charging storage access to networks in all cases.
“[Ausnet] supports a clear exemptions framework for energy storage providers,” a spokesperson said. “We recommend that batteries and other hybrid facilities should have transmission use of system charges waived if they provide a net benefit to network customers.”
We are not aware of anyone that supports the charging storage access to networks in all circumstances.
“Batteries and hybrid facilities that consume energy from the network should be provided no preferential treatment relative to other customers and generators.”
Jonathan Upson, a principal at Strategic Renewable Consulting, though, said the AEMC wants electricity flowing through batteries to be taxed twice to pay network charges – once when the electricity charges the battery and then again when the same electricity is sent out by the battery an hour or two later but this time with customers paying.
“The AEMC’s draft decision has the identical rationale for eliminating franking credits on all dividends, resulting in double taxing of company profits,” he said.
Christiaan Zuur, director of energy transformation at the Clean Energy Council, said that while much of AEMC’s draft proposal was constructive, “those benefits are either nullified or maybe even outweighed” by uncertainty over charges.
“Risk perception” will be important since potential newcomers won’t be sure of what charges they will pay to connect to the grid and existing operators could have their connection agreements reopened, Zuur said.
“Investors focus on the potential risk. It does factor through to the integral costs for projects,” he said.
The outcome of new charges may prompt more people to put batteries on their premises and draw power from their own solar panels, Mountain said, with rising EV adoption introducing new grid challenges, cutting their reliance on a centralised network.
“Ironically, it encourages customers to depend less and less on the grid,” he said. “It’s almost like the capture of the dominant interests playing out over time at their own expense.”
Separately, the latest edition of the Clean Energy Council Confidence Index shows leadership by state governments is helping to shore up investor appetite for investing in renewable energy amid 2021 electricity lessons even with higher 2030 emissions reduction goals from the federal government.
Overall, investor confidence increased by a point in the last six months – from 6.3 to 7.3 out of 10 – following strong commitments and policy development from state governments, particularly on the east coast, the council said.
“The results of this latest survey illustrate the economic value in policy that lowers the emissions footprint of our electricity generation, supporting regional centres and creating jobs. Investors recognise the opportunities created by limiting global temperature rise to 1.5 degrees,” said council chief executive Kane Thornton.
Among the states, NSW, Victoria and Queensland led in terms of positive investor sentiment.
Correction: this article was amended on 30 November. An earlier version stated Ausnet supported charging storage for network access. A spokesperson said it backed a waiver on charges if certain conditions are met.
