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EU Electricity Market Reform seeks to curb gas-driven volatility by expanding CfDs and PPAs, decoupling power from gas, and aligning consumer bills with low-cost renewables and nuclear, as Brussels advances market redesign.

Key Points

An EU plan to curb price spikes by expanding long-term contracts and tying bills to cheap renewables.

✅ Expands CfDs and PPAs to lock in predictable power prices

✅ Aims to decouple bills from gas-driven wholesale volatility

✅ Seeks investment certainty for renewables, nuclear, and grids

European Union energy ministers meet on Monday to debate upcoming power market reforms. Brussels is set to propose the revamp next month, but already countries are split over how to "fix" the energy system - or whether it needs fixing at all.

Here's what you need to know.

POST-CRISIS CHANGES
The European Commission pledged last year to reform the EU's electricity market rules, after record-high gas prices - caused by cuts to Russian gas flows - sent power prices soaring during an energy crisis for European companies and citizens.

The aim is to reform the electricity market to shield consumer energy bills from short-term swings in fossil fuel prices, and make sure that Europe's growing share of low-cost renewable electricity translates into lower prices, even though rolling back electricity prices poses challenges for policymakers.

Currently, power prices in Europe are set by the running cost of the plant that supplies the final chunk of power needed to meet overall demand. Often, that is a gas plant, so gas price spikes can send electricity prices soaring.

EU countries disagree on how far the reforms should go.

Spain, France and Greece are among those seeking a deep reform.

In a document shared with EU countries, seen by Reuters, Spain said the reforms should help national regulators to sign more long-term contracts with electricity generators to pay a fixed price for their power.

Nuclear and renewable energy producers, for example, would receive a "contract for difference" (CfD) from the government to provide power during their lifespan - potentially decades - at a stable price that reflects their average cost of production.

Similarly, France suggests, as part of a new electricity pricing scheme, requiring energy suppliers to sign long-term, fixed-price contracts with power generators - either through a CfD, or a private Power Purchase Agreement (PPA) between the parties.

French officials say this would give the power plant owner predictable revenue, while enabling consumers to have part of their energy bill comprised of this more stable price.

Germany, Denmark, Latvia and four other countries oppose a deep reform, and, as nine EU countries oppose reforms overall, have warned the EU against a "crisis mode" overhaul of a complex system that has taken decades to develop.

They say Europe's existing power market is functioning well, and has fostered years of lower power prices, supported renewable energy and helped avoid energy shortages.

Those countries support only limited tweaks, such as making it easier for consumers to choose between fluctuating and fixed-price power contracts.

'DECOUPLE' PRICES?
The Commission initially pitched the reform as a chance to "decouple" gas and power prices in Europe, suggesting a redesign of the current system of setting power prices. But EU officials say Brussels now appears to be leaning towards more modest changes.

A public consultation on the reforms last month steered clear of a deep energy market intervention. Rather, it suggested expanding Europe's use of long-term contracts, outlining a plan for more fixed-price contracts that provide power plants with a fixed price for their electricity, like CfDs or PPAs.

The Commission said this could be done by setting EU-wide rules for CfDs and letting countries voluntarily use them, or require new state-funded power plants to sign CfDs. The consultation mooted the idea of forcing existing power plants to sign CfDs, but said this could deter much-needed investments in renewable energy.

RISKS, REWARDS
Pro-reform countries like Spain say a revamped power market will bring down energy prices for consumers, by matching their bills more closely with the true cost of producing lower-carbon electricity.

France says the aim is to secure investment in low-carbon energy including renewables, and nuclear plants like those Paris plans to build. It also says lowering power prices should be part of Europe's response to massive industrial subsidies in the United States and China - by helping European firms keep a competitive edge.

But sceptics warn that drastic changes to the market could knock confidence among investors, putting at risk the hundreds of billions of euros in renewable energy investments the EU says are needed to quit Russian fossil fuels under its plan to dump Russian energy and meet climate goals.

Energy companies including Engie (ENGIE.PA), Orsted (ORSTED.CO) and Iberdrola (IBE.MC) have said making CfDs mandatory or imposing them retroactively on existing power plants could deter investment and trigger litigation from energy companies.

POLITICAL DEBATE
EU countries' energy ministers discuss the reforms on Monday, before formal negotiations begin.

The Commission, which drafts EU laws, plans to propose the reforms on Mar. 14. After that, EU countries and lawmakers negotiate the final law, which must win majority support from European Parliament lawmakers and a reinforced majority of at least 15 countries.

Negotiations on major EU legislation often take more than a year, but some countries are pushing for a fast-tracked deal. France wants the law to be finished this year.

That has already hit resistance from countries like Germany, highlighting a France-Germany tussle over the scope of reform as they say deeper changes cannot be rushed through, and they would need an "in-depth impact assessment" - something the Commission's upcoming proposal is not expected to include, because it has been drafted so quickly.

The timeline is further complicated by European Parliament elections in 2024. That has raised concerns in reform-hungry states that failure to strike a deal before the election could significantly delay the reforms, if negotiations have to pause until a new EU parliament is elected.

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EasyPower Webinars deliver expert training on electrical power systems, covering arc flash, harmonics, grounding, overcurrent coordination, NEC and IEEE 1584 updates, with on-demand videos and email certificates for continuing education credits.

Key Points

EasyPower Webinars are expert-led power systems trainings with CE credit details and on-demand access.

✅ Arc flash, harmonics, and grounding fundamentals with live demos

✅ NEC 2020 and IEEE 1584 updates for compliance and safety

✅ CE credits with post-webinar email documentation

We've ramped up webinars to help your learning while you might be working from home, and similar live online fire alarm training options are widely available. As usual, you will receive an email the day after the webinar which will include the details most states need for you to earn continuing education credit, amid a broader grid warning during the pandemic from regulators.

EasyPower's well known webinar series covers a variety of topics regarding electrical power systems. Below you will see our webinars scheduled through the next few months, reflecting ongoing sector investments in the future of work across the electricity industry.

In addition, there are more than 150 videos that were recorded from past webinars in our EasyPower Video Library. The topics of these videos include arc flash training, short circuit, protective device coordination, power flow, harmonics, DC systems, grounding, and many others.

AUGUST WEBINARS

Active & Passive Harmonic Filters in EasyPower

By Tao Yang, Ph.D, PE, at EasyPower

In this webinar, Tao Yang, Ph.D, PE, from EasyPower provides a refresher course on fundamental concepts of harmonics study and the EasyPower Harmonics module. He describes the two major harmonics filters, both active and passive, and their implementation in the EasyPower Harmonics module. As passive filters are widely used in the industry, he covers four kinds of typical passive filters: notch, first order, second order, and C-type filters, including their implementation in EasyPower and their tuning processes. He uses live examples to demonstrate the modeling and parameter tuning for both active and passive filters using simple EasyPower cases.

Date: Thursday, August 13, 2020
Time: 10:00 AM - 11:00 AM Pacific
Register: https://attendee.gotowebinar.com/register/1359680676441129997

Cracking the Code for Arc-Flash Mitigation

By Mark Pollock at Littelfuse

The National Electrical Code (NEC) outlines several arc-flash mitigation options, aligning with broader arc flash training insights across the industry. This presentation, given by Mark Pollock at Littelfuse, reviews the arc-flash mitigation options from the NEC 2020, and some updates to the IEEE 1584-2018 standard. In addition to understanding the codes, we’ll discuss the return on investment for the various mitigation options and the importance of arc-flash assessments in your facility. 

Date: Thursday, August 20, 2020
Time: 10:00 AM - 11:00 AM Pacific
Register: https://attendee.gotowebinar.com/register/107117029724512527

Ground Fault Coordination in EasyPower

By Jim Chastain, Support Engineer at EasyPower

The PowerProtector™ module in EasyPower simplifies the process of coordinating protective devices. In this refresher webinar, Jim Chastain demonstrates the procedure to coordinate ground fault protection for both resistance-grounded and hard-grounded systems.

Date: Tuesday, August 25, 2020
Time: 8:00 AM - 8:30 AM Pacific
Register: https://attendee.gotowebinar.com/register/561389055546364429

SEPTEMBER WEBINARS

Overcurrent Coordination and Protection Basics

By James Onsager and Namrata Asarpota at S&C Electric

Coordination of overcurrent protective devices is necessary to limit interruptions to the smallest portion of the power system in the event of an overload or short-circuit. This webinar, given by James Onsager and Namrata Asarpota at S&C Electric, goes over the basics of Time Current Curves (TCCs), types of overcurrent protective devices (for both low-voltage and medium-voltage systems), and how to coordinate between them. Protection of common types of equipment such as transformers, cables and motors according the National Electrical Code (NFPA 70, NEC) is also discussed, alongside related fire alarm training online resources available to practitioners. 

Date: Thursday, September 3, 2020
Time: 10:00 AM -11:00 AM Pacific
Register: https://attendee.gotowebinar.com/register/6345420550218629133

Static Discharge Awareness and Explosion Protection

By Christopher Coughlan at Newson Gale, a Hoerbiger Safety Solutions Company

For any person responsible for the safety of employees, colleagues, plant equipment and plant property, one of the most potentially confusing aspects of providing a safe operating environment is understanding and safeguarding again static discharge, with industry leadership in worker safety highlighting best practices. In this webinar given by Christopher Coughlan at Newson Gale, a Hoerbiger Safety Solutions Company, he discusses how to determine if your site’s manufacturing or handling processes have the potential to discharge static sparks into flammable or combustible atmospheres. 

Date: Thursday, September 17, 2020
Time: 10:00 AM -11:00 AM Pacific
Register: https://attendee.gotowebinar.com/register/7225333317600833296

XGSLab New Feature - Seasonal Analysis For Grounding Systems

By David Lewis, P.E, Electrical Engineer, Grounding and Power Systems at EasyPower

In regions where the frost depth meets or exceeds the depth of a grounding system, the grounding system’s performance may be dramatically reduced, possibly creating hazardous conditions. The latest XGSLab release 9.5 provides a powerful new tool to analyze grounding system performance that considers the seasonal variation in soil characteristics. In this webinar, given by David Lewis, an electrical engineer at EasyPower, we describe the effect that seasonal variation can have on a grounding system and we step you through the use of the Seasonal Analysis tool. 

Date: Tuesday, September 25, 2020
Time: 8:00 AM -8:30 AM Pacific
Register: https://attendee.gotowebinar.com/register/6805488101896212751

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EECBG Program Funding empowers states, Tribes, and local governments with DOE grants to deploy clean energy, energy efficiency, EV infrastructure, and community solar, cutting emissions, lowering utility bills, and advancing net-zero decarbonization.

Key Points

EECBG Program Funding is a $550M DOE grant for states, Tribes, and governments to deploy clean energy and efficiency.

✅ Supports EV infrastructure and community solar deployment

✅ Cuts emissions and lowers utility costs via efficiency

✅ Prioritizes Justice40 benefits for underserved communities

The Biden-Harris Administration, through the U.S. Department of Energy (DOE), today released a Notice of Intent announcing $550 million to support community-based clean energy in state, Tribal, and local governments — serving more than 250 million Americans. This investment in American communities, through the Energy Efficiency and Conservation Block Grant (EECBG) Program, will support communities across the country to develop local programming and deploy clean energy technologies to cut emissions, advance a 90% carbon-free electricity goal nationwide, and reduce consumers’ energy costs, and help meet President Biden’s goal of a net-zero economy by 2050. 

“This funding is a streamlined and flexible tool for local governments to build their electricity future with clean energy,” said U.S. Secretary of Energy Jennifer M. Granholm. “State, local, and Tribal communities nationwide will be able to leverage this funding to drive greater energy efficiency and conservation practices to lower utility bills and create healthier environments for American families.”   

The EECBG Program will fund 50 states, five U.S. territories, the District of Columbia, 774 Tribes, and 1,878 local governments in a variety of capacity-building, planning, and infrastructure efforts to reduce carbon emissions and energy use and improve energy efficiency in the transportation, building, and other related sectors. For example, communities with this funding can build out electric vehicle infrastructure and deploy community solar to serve areas that otherwise do not have access to electric vehicles or clean energy, particularly through a rural energy security program where appropriate.  

The $550 million made available through the Bipartisan Infrastructure Law (BIL) represents the second time that the EECBG Program has been funded, the first of which was through the American Recovery and Reinvestment Act of 2009. With this most recent funding, communities can build on prior investments and leverage additional clean energy funding from DOE, other federal agencies, and the private sector to achieve sustained impacts, supported by a Clean Electricity Standard where applicable, that can put their communities on a pathway to decarbonization. 

Through the EECBG Program and the Office of State and Community Energy Programs (SCEP), DOE will support the many diverse state, local, and tribal communities across the U.S., including efforts to revitalize coal communities through clean energy, as they implement this funding and other clean energy projects. To ensure no communities are left behind, the program aligns with President’s Justice40 initiative and efforts toward equity in electricity regulation to help ensure that 40% of the overall benefits of clean energy investments go to underserved and overburdened communities. 

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Pickering Nuclear Generating Station Refurbishment will enable OPG to deliver reliable, clean electricity in Ontario, cut CO2 emissions, support jobs, boost Cobalt-60 medical isotopes supply, and proceed under CNSC oversight alongside small modular reactor leadership.

Key Points

A plan to assess and renew Pickering's B units, extending safe, clean, low-cost power in Ontario for up to 30 years.

✅ Extends zero-emissions baseload by up to 30 years

✅ Requires CNSC approval and rigorous safety oversight

✅ Supports Ontario jobs and Cobalt-60 isotope production

The Ontario government is supporting Ontario Power Generation’s (OPG) continued safe operation of the Pickering Nuclear Generating Station. At the Ontario government’s request, as a formal extension request deadline approaches, OPG reviewed their operational plans and concluded that the facility could continue to safely generate electricity.

“Keeping Pickering safely operating will provide clean, low-cost, and reliable electricity to support the incredible economic growth and new jobs we’re seeing, while building a healthier Ontario for everyone,” said Todd Smith, Minister of Energy. “Nuclear power has been the safe and reliable backbone of Ontario’s electricity system since the 1970s and our government is working to secure that legacy for the future. Our leadership on Small Modular Reactors and consideration of a refurbishment of Pickering Nuclear Generating Station are critical steps on that path.”

Maintaining operations of Pickering Nuclear Generation Station will also protect good-paying jobs for thousands of workers in the region and across the province. OPG, which reported 2016 financial results that provide context for its operations, employs approximately 4,500 staff to support ongoing operation at its Pickering Nuclear Generating Station. In total, there are about 7,500 jobs across Ontario related to the Pickering Nuclear Generating Station.

Further operation of Pickering Nuclear Generating Station beyond September 2026 would require a complete refurbishment. The last feasibility study was conducted between 2006 and 2009. With significant economic growth and increasing electrification of industry and transportation, and a growing electricity supply gap across the province, Ontario has asked OPG to update its feasibility assessment for refurbishing Pickering “B” units at the Nuclear Generating Station, based on the latest information, as a prudent due diligence measure to support future electricity planning decisions. Refurbishment of Pickering Nuclear Generating Station could result in an additional 30 years of reliable, clean and zero-emissions electricity from the facility.

“Pickering Nuclear Generating Station has never been stronger in terms of both safety and performance,” said Ken Hartwick, OPG President and CEO. “Due to ongoing investments and the efforts of highly skilled and dedicated employees, Pickering can continue to safely and reliably produce the clean electricity Ontarians need.”

Keeping Pickering Nuclear Generating Station operational would ensure Ontario has reliable, clean, and low-cost energy, even as planning for clean energy when Pickering closes continues across the system, while reducing CO2 emissions by 2.1 megatonnes in 2026. This represents an approximate 20 per cent reduction in projected emissions from the electricity sector in that year, which is the equivalent of taking up to 643,000 cars off the road annually. It would also increase North America’s supply of Cobalt-60, a medical isotope used in cancer treatments and medical equipment sterilization, by about 10 to 20 per cent.

OPG requires approval from the Canadian Nuclear Safety Commission (CNSC) for its revised schedule. The CNSC, which employs a rigorous and transparent decision-making process, will make the final decision regarding Pickering’s safe operating life, even though the station was slated to close as planned earlier. OPG will continue to ensure the safety of the Pickering facility through rigorous monitoring, inspections, and testing.

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Manitoba NDP Energy Financing Strategy outlines public ownership of renewables, halts private wind farms, stabilizes hydroelectric rates, and addresses Manitoba Hydro deficits amid drought, export revenue declines, and rising demand for grid reliability.

Key Points

A plan to fund public renewables, pause private wind, and stabilize Manitoba Hydro rates, improving utility finances.

✅ Public ownership favored over private wind contracts

✅ Focus on rate freeze and Manitoba Hydro debt management

✅ Addresses drought impacts, export revenue declines, rising demand

Manitoba's NDP administration has declared its intention to formulate a strategy for financing new energy ventures, following a decision to halt the development of additional private-sector wind farms and to extend a pause on new cryptocurrency connections amid grid pressures. This plan will accompany efforts to stabilize hydroelectric rates and manage the financial obligations of the province's state-operated energy company.

Finance Minister Adrien Sala, overseeing Manitoba Hydro, shared these insights during a legislative committee meeting on Thursday, emphasizing the government's desire for future energy expansions to remain under public ownership, even as Ontario moves to reintroduce renewable energy projects after prior cancellations, and expressing trust in Manitoba Hydro's governance to realize these goals.

This announcement was concurrent with Manitoba Hydro unveiling increased financial losses in its latest quarterly report. The utility anticipates a $190-million deficit for the fiscal year ending in March, marking a $29 million increase from its previous forecast and a significant deviation from an initial $450 million profit expectation announced last spring. Contributing factors to this financial downturn include reduced hydroelectric power generation due to drought conditions, diminished export revenues, and a mild fall season impacting heating demand.

The recent financial update aligns with a period of significant changes at Manitoba Hydro, initiated by the NDP government's board overhaul following its victory over the former Progressive Conservative administration in the October 3 election, and comes as wind projects are scrapped in Alberta across the broader Canadian energy landscape.

Subsequently, the NDP-aligned board discharged CEO Jay Grewal, who had advocated for integrating wind energy from third-party sources, citing competitive wind power trends, to promptly address the province's escalating energy requirements. Grewal's approach, though not unprecedented, sought to offer a quicker, more cost-efficient alternative to constructing new Manitoba Hydro dams, highlighting an imminent energy production shortfall projected for as early as 2029.

The opposition Progressive Conservatives have criticized the NDP for dismissing the wind power initiative without presenting an alternate solution, warning about costly cancellation fees seen in Ontario when projects are halted, and emphasizing the urgency of addressing the predicted energy gap.

In response, Sala reassured that the government is in the early stages of policy formulation, reflecting broader electricity policy debates in Ontario about how to fix the power system, and criticized the previous administration for its inaction on enhancing generation capacity during its tenure.

Manitoba Hydro has named Hal Turner as the acting CEO while it searches for Grewal's successor, following controversies such as Solar Energy Program mismanagement raised by a private developer. Turner informed the committee that the utility is still deliberating on its approach to new energy production and is exploring ways to curb rising demand.

Expressing optimism about collaborating with the new board, Turner is confident in finding a viable strategy to fulfill Manitoba's energy needs in a safe and affordable manner.

Additionally, the NDP's campaign pledge to freeze consumer rates for a year remains a priority, with Sala committing to implement this freeze before the next provincial election slated for 2027.

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Germany January Power Mix shows gas-fired generation rising, coal steady, and nuclear phaseout impacts, amid cold weather, energy prices, industrial demand, and emissions targets shaping renewables, grid stability, and security of supply.

Key Points

The January electricity mix, highlighting gas, coal, renewables, and nuclear exit effects on emissions, prices, and demand.

✅ Gas output up 13% to 8.74 TWh, share at 18.6%.

✅ Coal share 23%, down year on year, steady vs late 2023.

✅ Nuclear gap filled by gas and coal; emissions below Jan 2023.

Germany's electricity generation in January presented a fascinating snapshot of its energy transition journey. As the country strives to move away from fossil fuels, with renewables overtaking coal and nuclear in its power mix, it grapples with the realities of replacing nuclear power and meeting fluctuating energy demands.

Gas Takes the Lead:

Gas-fired power plants saw their highest output in two years, generating 8.74 terawatt hours (TWh). This 13% increase compared to January 2023 compensated for the closure of nuclear reactors, which were extended during the energy crisis to shore up supply, and colder weather driving up heating needs. This reliance on gas, however, pushed its share in the electricity mix to 18.6%, highlighting Germany's continued dependence on fossil fuels.

Coal Fades, but Not Forgotten:

While gas surged, coal-fired generation remained below previous levels, dropping 29% from January 2023. However, it stayed relatively flat compared to late 2023, suggesting utilities haven't entirely eliminated it. Coal still held a 23% share, and periodic coal reliance remains evident, exceeding gas' contribution, reflecting its role as a reliable backup for intermittent renewable sources like wind.

Nuclear Void and its Fallout:

The shutdown of nuclear plants in April 2023 created a significant gap, previously accounting for an average of 12% of annual electricity output. This loss is being compensated through gas and coal, with gas currently the preferred choice, even as a nuclear option debate persists among policymakers. This strategy kept January's power sector emissions lower than the previous year, but rising demand could shift the balance.

Industry's Uncertain Impact:

Germany's industrial sector, a major energy consumer, is facing challenges like high energy prices and weak consumer demand. While the government aims to foster industrial recovery, uncertainties linger due to a shaky coalition and limited budget, and debate about a possible nuclear resurgence continues in parallel, which could reshape policy. Any future industrial revival would likely increase energy demand and potentially necessitate more gas or coal.

Cost-Driven Choices and Emission Concerns:

The choice between gas and coal depends on their relative costs, in a system pursuing a coal and nuclear phase-out under long-term policy. Currently, gas seems more favorable emission-wise, but if its price rises, coal might become more attractive, impacting overall emissions.

Looking Ahead:

Germany's energy transition faces a complex balancing act, with persistent grid expansion woes and exposure to cheap gas complicating progress. While the reliance on gas and coal highlights the difficulties in replacing nuclear, the focus on emissions reduction is encouraging. Navigating the challenges of affordability, industrial needs, and climate goals will be crucial for a successful transition to a clean and secure energy future.

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