White House Panel Votes to Block New Nuclear Weapons

By Reuters


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A U.S. House of Representatives subcommittee defied the Bush administration recently and slashed funds to study a new generation of deep-earth penetrating nuclear weapons and so-called low-yield nuclear weapons.

The House Appropriations Energy and Water subcommittee denied the $36 million the administration sought to study the nuclear weapons it says may be needed to confront emerging threats since the end of the Cold War.

It took the measure while considering a $28 billion bill to fund energy, water and nuclear weapons programs.

The subcommittee also cut the funds last year, but the full Congress in later House and Senate votes restored them.

The administration has said it has no plans to develop the weapons. But it does not want to close the door to the "bunker-busting" nuclear weapons it said may be needed to bore into underground facilities and the smaller weapons with less than half the yield of the bomb dropped on Hiroshima.

Critics contend that just considering such weapons will spur a renewed arms race and takes nuclear warfare out of the realm of the unthinkable.

In a vote last month on a bill authorizing defense programs, the House narrowly defeated an amendment pushed by Democrats to block the study.

The Senate is expected to debate the issue next week in an amendment pushed by Democrats on its defense authorization bill, and later when it takes up its version of the bill to fund energy, water and nuclear weapons programs.

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Is tidal energy the surge remote coastal communities need?

BC Tidal Energy Micro-Grids harness predictable tidal currents to replace diesel in remote Indigenous coastal communities, integrating marine renewables, storage, and demand management for resilient off-grid power along Vancouver Island and Haida Gwaii.

 

Key Points

Community-run tidal turbines and storage deliver reliable, diesel-free electricity to remote B.C. coastal communities.

✅ Predictable power from tidal currents reduces diesel dependence

✅ Integrates storage, demand management, and microgrid controls

✅ Local jobs via marine supply chains and community ownership

 

Many remote West Coast communities are reliant on diesel for electricity generation, which poses a number of negative economic and environmental effects.

But some sites along B.C.’s extensive coastline are ideal for tidal energy micro-grids that may well be the answer for off-grid communities to generate clean power, suggested experts at a COAST (Centre for Ocean Applied Sustainable Technologies) virtual event Wednesday.

There are 40 isolated coastal communities, many Indigenous communities, and 32 of them are primarily reliant on diesel for electricity generation, said Ben Whitby, program manager at PRIMED, a marine renewable energy research lab at the University of Victoria (UVic).

Besides being a costly and unreliable source of energy, there are environmental and community health considerations associated with shipping diesel to remote communities and running generators, Whitby said.

“It's not purely an economic question,” he said.

“You've got the emissions associated with diesel generation. There's also the risks of transporting diesel … and sometimes in a lot of remote communities on Vancouver Island, when deliveries of diesel don't come through, they end up with no power for three or four days at a time.”

The Heiltsuk First Nation, which suffered a 110,000-litre diesel spill in its territorial waters in 2016, is an unfortunate case study for the potential environmental, social, and cultural risks remote coastal communities face from the transport of fossil fuels along the rough shoreline.

A U.S. barge hauling fuel for coastal communities in Alaska ran aground in Gale Pass, fouling a sacred and primary Heiltsuk food-harvesting area.

There are a number of potential tidal energy sites near off-grid communities along the mainland, on both sides of Vancouver Island, and in the Haida Gwaii region, Whitby said.

Tidal energy exploits the natural ebb and flow of the coast’s tidal water using technologies like underwater kite turbines to capture currents, and is a highly predictable source of renewable energy, he said.

Micro-grids are self-reliant energy systems drawing on renewables from ocean, wave power resources, wind, solar, small hydro, and geothermal sources.

The community, rather than a public utility like BC Hydro, is responsible for demand management, storage, and generation with the power systems running independently or alongside backup fuel generators — offering the operators a measure of energy sovereignty.

Depending on proximity, cost, and renewable solutions, tidal energy isn’t necessarily the solution for every community, Whitby noted, adding that in comparison to hydro, tidal energy is still more expensive.

However, the best candidates for tidal energy are small, off-grid communities largely dependent on costly fossil fuels, Whitby said.

“That's really why the focus in B.C. is at a smaller scale,” he said.

“The time it would take (these communities) to recoup any capital investment is a lot shorter.

“And the cost is actually on a par because they're already paying a significant amount of money for that diesel-generated power.”

Lisa Kalynchuk, vice-president of research and innovation at UVic, said she was excited by the possibilities associated with tidal power, not only in B.C., but for all of Canada’s coasts.

“Canada has approximately 40,000 megawatts available on our three coastlines,” Kalynchuk said.

“Of course, not all this power can be realized, but it does exist, so that leads us to the hard part — tapping into this available energy and delivering it to those remote communities that need it.”

Challenges to establishing tidal power include the added cost and complexity of construction in remote communities, the storage of intermittent power for later use, the economic model, though B.C.’s streamlined regulatory process may ease approvals, the costs associated with tidal power installations, and financing for small communities, she said.

But smaller tidal energy projects can potentially set a track record for more nascent marine renewables, as groups like Marine Renewables Canada pivot to offshore wind development, at a lower cost and without facing the same social or regulatory resistance a large-scale project might face.

A successful tidal energy demo project was set up using a MAVI tidal turbine in Blind Channel to power a private resort on West Thurlow Island, part of the outer Discovery Islands chain wedged between Vancouver Island and the mainland, Whitby said.

The channel’s strong tidal currents, which routinely reach six knots and are close to the marina, proved a good site to test the small-scale turbine and associated micro-grid system that could be replicated to power remote communities, he said.

The mooring system, cable, and turbine were installed fairly rapidly and ran through the summer of 2017. The system is no longer active as provincial and federal funding for the project came to an end.

“But as a proof of concept, we think it was very successful,” Whitby said, adding micro-grid tidal power is still in the early stages of development.

Ideally, the project will be revived with new funding, so it can continue to act as a test site for marine renewable energy and to showcase the system to remote coastal communities that might want to consider tidal power, he said.

In addition to harnessing a local, renewable energy source and increasing energy independence, tidal energy micro-grids can fuel employment and new business opportunities, said Whitby.

The Blind Channel project was installed using the local supply chain out of nearby Campbell River, he said.

“Most of the vessels and support came from that area, so it was all really locally sourced.”

Funding from senior levels of government would likely need to be provided to set up a permanent tidal energy demonstration site, with recent tidal energy investments in Nova Scotia offering a model, or to help a community do case studies and finance a project, Whitby said.

Both the federal and provincial governments have established funding streams to transition remote communities away from relying on diesel.

But remote community projects funded federally or provincially to date have focused on more established renewables, such as hydro, solar, biomass, or wind.

The goal of B.C.’s Remote Community Energy Strategy, part of the CleanBC plan and aligned with zero-emissions electricity by 2035 targets across Canada, is to reduce diesel use for electricity 80 per cent by 2030 by targeting 22 of the largest diesel locations in the province, many of which fall along the coast.

The province has announced a number of significant investments to shift Indigenous coastal communities away from diesel-generated electricity, but they predominantly involve solar or hydro projects.

A situation that’s not likely to change, as the funding application guide in 2020 deemed tidal projects as ineligible for cash.

Yet, the potential for establishing tidal energy micro-grids in B.C. is good, Kalynchuk said, noting UVic is a hub for significant research expertise and several local companies, including ocean and river power innovators working in the region, are employing and developing related service technologies to install and maintain the systems.

“It also addresses our growing need to find alternative sources of energy in the face of the current climate crisis,” she said.

“The path forward is complex and layered, but one essential component in combating climate change is a move away from fossil fuels to other sources of energy that are renewable and environmentally friendly.”

 

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Site C mega dam billions over budget but will go ahead: B.C. premier

Site C Dam Update outlines hydroelectric budget overruns, geotechnical risks, COVID-19 construction delays, BC Hydro timelines, cancellation costs, and First Nations treaty rights concerns affecting renewable energy, ratepayers, and Peace Valley impacts.

 

Key Points

Overview of Site C costs, delays, geotechnical risks, and concerns shaping BC Hydro hydroelectric plans.

✅ Cost to cancel estimated at least $10B

✅ Final budget now about $16B; completion pushed to 2025

✅ COVID-19 and geotechnical risks drove delays and redesigns

 

The cost to cancel a massive B.C. energy development project would be at least $10 billion, provincial officials revealed in an update on the future of Site C.

Thus the project will go ahead, Premier John Horgan and Energy Minister Bruce Ralston announced Friday, but with an increased budget and timeline.

Horgan and Ralston spoke at a news conference in Victoria about the findings of a status report into the hydroelectric dam project in northeastern B.C.

Peter Milburn, former deputy finance minister, finished the report earlier this year, but the findings were not initially made public.

$10B more than initial estimate
On Friday, it was announced that the project's final price tag has once again ballooned by billions of dollars.

Site C was initially estimated to cost $6 billion, and the first approved budget, back in 2014, was $8.775 billion. The budget increased to $10.8 billion in 2018.

But the latest update suggests it will cost about $16 billion in total.

And, in addition to a higher budget, the date of completion has been pushed back to 2025 – a year later than the initial target.

Among the reasons for the revisions, according to the province, is the impact of COVID-19. While officials did not get into details, there have been multiple cases of the disease publicly reported at Site C work camps.

Additionally, fewer workers were permitted on site to allow for physical distancing, and construction was scaled back.

Also cited as a cause for the increased cost were "unforeseeable" geotechnical issues at the site, which required installation of an enhanced drainage system.

Speaking to reporters Friday, the premier deflected blame.

“Managing the contract the BC Liberals signed has been difficult because it transfers the vast majority of the geotechnical risk back to BC Hydro,” said Horgan.

Former Premier Christy Clark vowed to get the project to a point of no return, and in 2017 the NDP decided to continue with the project because of the cost of cancelling it.

The Liberals now say the clean energy project should continue, but deny they shoulder any of the blame.

“Someone has to take ownership – and it's got to be government in power,” said MLA Tom Shypitka, BC Liberal critic for energy. 

There are also several reviews underway, including how to change contractor schedules to reflect delays and potential cost impacts from COVID-19, and how to keep the work environment safe during the pandemic.

A total of 17 recommendations were made in Milburn's report, all of which have been accepted by BC Hydro and the province.

Among these recommendations is a restructured project assurance board with a focus on skill-specific membership and autonomy from BC Hydro.

Cost of cancelling the project
The report looked into whether it would be better to scrap the project altogether, but the cost of cancelling it at this point would be at least $10 billion, Horgan and Ralston said.

That cost does not include replacing lost energy and capacity that Site C's electricity would have provided, according to the province.

A study conducted in 2019 suggested B.C. will need to double its electricity production by 2055, especially as drought conditions are forcing BC Hydro to adapt power generation. 

The NDP government says the cost to ratepayers of cancelling the project would be $216 a year for 10 years. Going forward will still have a cost, but instead, that payment will be split over more than 70 years, the estimated lifetime of Site C, meaning BC Hydro customers will pay about $36 more a year once the site goes live, the NDP says, even as cryptocurrency mining raises questions about electricity use.

“We will not put jobs at risk; we will not shock people's hydro bills,” said Horgan.

"Our government has taken this situation very seriously, and with the advice of independent experts guiding us, I am confident in the path forward for Site C," Ralston said.

"B.C. needs more renewable energy to bridge the electricity gap with Alberta and electrify our economy, transition away from fossil fuels and meet our climate targets."

The minister said the site is currently employing about 4,500 people.

Arguments against Site C
While there are benefits to the project, there has also been vocal opposition.

In a statement released following the announcement that the project would go ahead, the Union of B.C. Indian Chiefs suggested the decision violated the premier's commitment to a UN declaration.

"The Site C dam has never had the free, prior and informed consent of all impacted First Nations, and proceeding with the project is a clear infringement of the treaty rights of the West Moberly First Nation," the UBCIC's secretary treasurer said.

Kukpi7 Judy Wilson said the UN's Committee on the Elimination of Racial Discrimination has called for a suspension of the project until it has the consent of Indigenous peoples.

"B.C. did not even attempt to engage First Nations about the safety risks associated with the stability of the dam in the recent reviews," she said.

"It is unfathomable that such clear human rights violations are somehow OK by this government."

Chief Roland Wilson of the West Moberly First Nation said he was disappointed the province didn’t consult his and other communities prior to making this announcement. In an interview with CTV News, he said he was offered an opportunity to join a call this morning.

“We signed a treaty in 1814,” he said. “Our treaty rights are being trampled on.”

Wilson said his nation has ongoing concerns about safety issues and the plans to flood the Peace Valley. West Moberly is in a bitter court battle with the province.

At the BC Legislature, Green Party Leader Sonia Furstenau slammed the government’s decision.

“It is an astonishingly terrible business case in any circumstances, but considering that we lose the agricultural land, the biodiversity, the traditional treaty lands of Treaty 8, this is particularly catastrophic,” she told reporters.

She went on to accuse the NDP government of keeping bad news from the public. She alleged the NDP knew of serious problems before last fall’s unscheduled election, but chose not to release information.

Prior to the decision former BC Hydro president and a former federal fisheries minister are among those who added their voices to calls to halt work on the dam.

They were among 18 Canadians who wrote an open letter to the province calling for an independent team of experts to explore geotechnical problems at the site.

In the letter, signed in September, the group that also included Grand Chief Stewart Phillip of the UBCIC wrote that going ahead would be a "costly and potentially catastrophic mistake." 

According to Friday's update, independent experts have confirmed the site is safe, though improvements have been recommended to enhance oversight and risk management.

Earlier in the project, a B.C. First Nation claimed it was a $1-billion treaty violation, though an agreement was reached in 2020 after the province promised to improve land management and restore traditional place names in areas of cultural significance.

The Prophet River First Nation will also receive payments while the site is operating, and some Crown land will be transferred to the nation as part of the agreement. 

Additionally, residents of a tiny community not far from the site is suing the province over two slow-moving landslides they claim caused property values to plummet.

Nearly three dozen residents of Old Fort are behind the allegations of negligence and breach of their charter right to security of person. The claim is tied to two landslides, in 2018 and 2020, that the group alleges were caused by ground destabilization from construction related to Site C.

One of the landslides damaged the only road into the community, leaving residents under evacuation for a month.

 

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EDP Plans to Reject $10.9 Billion-China Three Gorges Bid

EDP Takeover Bid Rejection signals pushback on China Three Gorges' acquisition bid, as investors, shareholders, and analysts cite low premium, valuation concerns, and strategic renewables assets across Portugal, the US, Brazil, and Europe utilities.

 

Key Points

EDP's board views China Three Gorges' 3.26 euro per share offer as too low, citing valuation and renewables exposure.

✅ Bid premium 4.8% above close seen as inadequate.

✅ Stock surged above offer; market expects higher price.

✅ Advisors UBS and Morgan Stanley guiding EDP.

 

EDP-Energias de Portugal SA is poised to reject a 9.1 billion euro ($10.9 billion) takeover offer from China Three Gorges Corp. on the grounds that it undervalues Portugal’s biggest energy company, according to people with knowledge of the matter.

The board of EDP, which may meet as early as this week, views the current bid of 3.26 euros a share as too low as it indicates a premium of 4.8 percent over Friday’s close, said the people, asking not to be identified because the discussions are private. EDP is also working with advisers including UBS Group AG and Morgan Stanley on the potential deal, they said.

Representatives for EDP, UBS and Morgan Stanley declined to comment. Representatives for Three Gorges didn’t immediately respond to requests for comment.

#google#

Shares of EDP surged the most in a decade to above the bid level on Monday, signaling that investors expect the Chinese utility, which is its biggest investor, to sweeten the offer to gain full control. For Three Gorges, which spent two decades building a hydro-power plant spanning China’s Yangtze River, the deal would bolster its efforts to expand abroad and give it deeper access to markets in Europe, the U.S. and Brazil.

China’s biggest renewable-energy developer already is the largest shareholder of EDP with a 23 percent stake and now is seeking more than 50 percent. While the government in Lisbon has indicated it’s comfortable with the Chinese offer, EDF electricity price deal illustrates policy dynamics in the region and it holds out little incentive for shareholders to tender their stock.

 

Stock Jumps

Shares of EDP rose 9.3 percent to 3.40 euros in Lisbon on Monday, even as rolling back European electricity prices remains challenging, after earlier jumping by the most since October 2008.

“We believe the price offered is too low for China Three Gorges to achieve full control of a vehicle that provides, among other things, a strategic footprint into U.S. renewables,” Javier Garrido, an analyst at JPMorgan Chase & Co., said in a note. “We expect management and minorities to claim a higher price.”

The offer adds to a wave of investments China has made overseas, both to earn a yield on its cash and to gain expertise in industries ranging from energy to telecommunications and transport. Concern about those deals has been mounting in the U.S. regulatory arena recently. European Union governments have been divided in their response, with Portugal among those most supportive of inward investment.

“China Three Gorges is an ambitious company, with expansion already in international hydro, Chinese onshore wind and floating solar, and European offshore wind,” said Angus McCrone, a senior analyst at Bloomberg New Energy Finance in London. “It may have to do better on bid price than the 5 percent premium so far offered for EDP.”

 

Fortum’s Troubles

The low premium offered by Three Gorges echoes the struggle Fortum Oyj had in winning over investors in its bid for Uniper SE last year, while North American deals such as Hydro One’s Avista bid faced customer backlash as well, highlighting parallels. The Finnish utility offered 8 billion euros to buy out the remainder of Uniper in September, immediately sending shares of the German power generator above the offer prices. At least for now, Fortum has settled for a 47 percent stake it bought in Uniper from EON SE, and most other shareholders decided to keep their stake.

The EDP transaction would advance a wave of consolidation among Europe’s leading utilities, which are acquiring assets and development skills in renewables as governments across the region crack down on pollution. EDP is one of Europe’s leading developers of renewable energy, building mainly wind farms and hydro plants, and has expanded in markets including Brazil and the U.S. electrification market.

 

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Improve US national security, step away from fossil fuels

American Green Energy Independence accelerates electrification and renewable energy, leveraging solar, wind, and EVs to boost energy security, cut emissions, create jobs, and reduce reliance on volatile oil and natural gas markets influenced by geopolitics.

 

Key Points

American Green Energy Independence is a strategy to electrify, expand renewables, and enhance energy security.

✅ Electrifies vehicles, appliances, and infrastructure

✅ Expands solar, wind, and storage to stabilize grids

✅ Cuts oil dependence, strengthens energy security and jobs

 

As Putin's heavy hand uses Russia's power over oil and natural gas as a weapon against Europe, which is facing an energy nightmare across its markets, and the people of Ukraine, it's impossible not to wonder how we can mitigate the damages he's causing. Simultaneously, it's a devastating reminder of the freedom we so often take for granted and a warning to increase our energy independence as a nation. There are many ways we can, but one of the best is to follow the lead of the European Union and quicken our transition to green and renewable energies.

We've known it for a long time: our reliance on fossil fuels is a national security risk. Volatile prices coupled with our extreme demand mean that concerns over fossil fuel access have driven foreign policy decisions. We've seen it happen countless times — most notably during the wars in Iraq and Afghanistan — and it's played out again in Ukraine, which has leaned on imports to keep the lights on during the crisis. Concerned by Russia's power over the oil and natural gas market, the US and Europe were quite reluctant to impose the harshest, most recent sanctions because doing so will hurt their citizens' pocketbooks.

As homeowners, we know how much decisions like these can hurt, especially with gas prices being historically high even as an energy crisis isn't spurring a green shift for many consumers. However, the solution to this problem isn't to drill more, as some well-funded oil and gas interest groups have claimed. Doing so likely won't even provide a short-term solution to the problem as it takes six months to a year at minimum to build a new well with all its associated infrastructure.

The best long-term solution is to declare our independence from the global oil market amid a global energy war that is driving price hikes and invest in American-made clean energy. We need to electrify our vehicles, appliances, and infrastructure, and make America fully energy independent. This will save families thousands of dollars a year, make our country more self-sufficient, and provide hundreds of thousands of quality jobs here in the Midwest.

Already, over 600,000 Midwesterners are employed in clean-energy professions, and they make 25 percent more than the national median wage. Nationally, clean energy is the biggest job creator in our country's energy sector, employing almost three times as many workers as the fossil fuel industry.

As we employ our own citizens, we will defund Putin's Russia, which has long been funded by his powerful oil and gas industry. Instead of diversifying his economy during the oil boom of the 2010s, Putin doubled down on petroleum. We should exploit his weakness by leading a global movement to abandon the very resource that funds his warmongering. Doing so will further destabilize his economy and protect the citizens of Ukraine, especially as they prepare for winter amid energy challenges today.

We can start doing this as everyday consumers by seeking electric options like stoves, cars, or other appliances. Congress should help Americans afford these changes by providing tax credits for everyday Americans and innovators in electric vehicle and green energy industries. Doing so will spur innovation in the industry, further reducing the cost to consumers. We should also ensure that our semiconductors, solar panels, wind turbines, and other technology needed for a green future are manufactured and assembled in America. This will ensure that our energy industry is safe from price or supply shocks and reduce brownout risks linked to disruptions caused by an international crisis like the invasion of Ukraine.

In many ways, our next steps as a country can define world history for generations to come. Will we continue our reliance on oil and its tacit support of Putin's economy? Or will we intensify our shift to green energies and make our country more self-sufficient and secure? The global spotlight is on us once again to lead. We hope our country will honor the lives of its veterans and the soldiers fighting in Ukraine by strengthening energy security support and transitioning towards green energy.

 

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Judge: Texas Power Plants Exempt from Providing Electricity in Emergencies

Texas Blackout Liability Ruling clarifies appellate court findings in Houston, citing deregulated energy markets, ERCOT immunity, wholesale generators, retail providers, and 2021 winter storm lawsuits over grid failures and wrongful deaths.

 

Key Points

Houston judges held wholesale generators owe no duty to retail customers, limiting liability for 2021 blackout lawsuits.

✅ Court cites deregulated market and lack of privity to consumers

✅ Ruling shields generators from 2021 winter storm civil suits

✅ Plaintiffs plan appeals; legislature may address liability

 

Nearly three years after the devastating Texas blackout of 2021, a panel of judges from the First Court of Appeals in Houston has determined that major power companies cannot be held accountable for their failure to deliver electricity during the power grid crisis that unfolded, citing Texas' deregulated energy market as the reason.

This ruling appears likely to shield these companies from lawsuits that were filed against them in the aftermath of the blackout, leaving the families of those affected uncertain about where to seek justice.

In February 2021, a severe cold front swept over Texas, bringing extended periods of ice and snow. The extreme weather conditions increased energy demand while simultaneously reducing supply by causing power generators and the state's natural gas supply chain to freeze. This led to a blackout that left millions of Texans without power and water for nearly a week.

The state officially reported that almost 250 people lost their lives during the winter storm and subsequent blackout, although some analysts argue that this is a significant undercount and warn of blackout risks across the U.S. during severe heat as well.

In the wake of the storm, Texans affected by the energy system's failure began filing lawsuits, and lawmakers proposed a market bailout as political debate intensified. Some of these legal actions were directed against power generators whose plants either ceased to function during the storm or ran out of fuel for electricity generation.

After several years of legal proceedings, a three-judge panel was convened to evaluate the merits of these lawsuits.

This week, Chief Justice Terry Adams issued a unanimous opinion on behalf of the panel, stating, "Texas does not currently recognize a legal duty owed by wholesale power generators to retail customers to provide continuous electricity to the electric grid, and ultimately to the retail customers."

The opinion further clarified that major power generators "are now statutorily precluded by the legislature from having any direct relationship with retail customers of electricity."

This separation of power generation from transmission and retail electric sales in many parts of Texas resulted from energy market deregulation in the early 2000s, with the goal of reducing energy costs, and prompted electricity market reforms aimed at avoiding future blackouts.

Under the previous system, power companies were "vertically integrated," controlling generators, transmission lines, and selling the energy they produced directly to regional customers. However, in deregulated areas of Texas, competition was introduced, creating competing energy-generating companies and retail electric providers that purchase power wholesale and then sell it to residential consumers; meanwhile, electric cooperatives in other parts of the state remained member-owned providers.

Tré Fischer, a partner at the Jackson Walker law firm representing the power companies, explained, "One consequence of that was, because of the unbundling and the separation, you also don't have the same duties and obligations [to consumers]. The structure just doesn't allow for that direct relationship and correspondingly a direct obligation to continually supply the electricity even if there's a natural disaster or catastrophic event."

In the opinion, Justice Adams noted that when designing the Texas energy market, amid renewed interest in ways to improve electricity reliability across the grid, state lawmakers "could have codified the retail customers' asserted duty of continuous electricity on the part of wholesale power generators into law."

The recent ruling applies to five representative cases chosen by the panel out of hundreds filed after the blackout. Due to this decision, it is improbable that any of the lawsuits against power companies will succeed, according to the court's interpretation.

However, plaintiffs' attorneys have indicated their intention to appeal. They may request a review of the panel's opinion by the entire First Court of Appeals or appeal directly to the state supreme court.

The state Supreme Court had previously ruled that the Electric Reliability Council of Texas (ERCOT), the state's power grid operator, enjoys sovereign immunity and cannot be sued over the blackout.

This latest opinion raises the question of who, if anyone, can be held responsible for deaths and losses resulting from the blackout, a question left unaddressed by the court. Fischer commented, "If anything [the judges] were saying that is a question for the Texas legislature."

 

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The German economy used to be the envy of the world. What happened?

Germany's Economic Downturn reflects an energy crisis, deindustrialization risks, export weakness, and manufacturing stress, amid Russia gas loss, IMF and EU recession forecasts, and debates over electricity price caps and green transition.

 

Key Points

An economic contraction from energy price shocks, export weakness, and bottlenecks in manufacturing and digitization.

✅ Energy shock after loss of cheap Russian gas

✅ Exports slump amid China slowdown and weak demand

✅ Policy gridlock on power price cap and permits

 

Germany went from envy of the world to the worst-performing major developed economy. What happened?

For most of this century, Germany racked up one economic success after another, dominating global markets for high-end products like luxury cars and industrial machinery, selling so much to the rest of the world that half the economy ran on exports.

Jobs were plentiful, the government’s financial coffers grew as other European countries drowned in debt, and books were written about what other countries could learn from Germany.

No longer. Now, Germany is the world’s worst-performing major developed economy, with both the International Monetary Fund and European Union expecting it to shrink this year.

It follows Russia’s invasion of Ukraine and the loss of Moscow’s cheap Russian gas that underpinned industry — an unprecedented shock to Germany’s energy-intensive industries, long the manufacturing powerhouse of Europe.

The sudden underperformance by Europe’s largest economy has set off a wave of criticism, handwringing and debate about the way forward.

Germany risks “deindustrialization” as high energy costs and government inaction on other chronic problems threaten to send new factories and high-paying jobs elsewhere, said Christian Kullmann, CEO of major German chemical company Evonik Industries AG.

From his 21st-floor office in the west German town of Essen, Kullmann points out the symbols of earlier success across the historic Ruhr Valley industrial region: smokestacks from metal plants, giant heaps of waste from now-shuttered coal mines, a massive BP oil refinery and Evonik’s sprawling chemical production facility.

These days, the former mining region, where coal dust once blackened hanging laundry, is a symbol of the energy transition, as the power sector’s balancing act continues with wind turbines and green space.

The loss of cheap Russian natural gas needed to power factories “painfully damaged the business model of the German economy,” Kullmann told The Associated Press. “We’re in a situation where we’re being strongly affected — damaged — by external factors.”

After Russia cut off most of its gas to the European Union, spurring an energy crisis in the 27-nation bloc that had sourced 40% of the fuel from Moscow, the German government asked Evonik to turn to coal by keeping its 1960s coal-fired power plant running a few months longer.

The company is shifting away from the plant — whose 40-story smokestack fuels production of plastics and other goods — to two gas-fired generators that can later run on hydrogen amid plans to become carbon neutral by 2030 and following the nuclear phase-out of recent years.

One hotly debated solution: a government-funded cap on industrial electricity prices to get the economy through the renewable energy transition, amid an energy crisis that even saw a temporary nuclear extension to stabilize supply.

The proposal from Vice Chancellor Robert Habeck of the Greens Party has faced resistance from Chancellor Olaf Scholz, a Social Democrat, and pro-business coalition partner the Free Democrats. Environmentalists say it would only prolong reliance on fossil fuels, while others advocate a nuclear option to meet climate goals.

Kullmann is for it: “It was mistaken political decisions that primarily developed and influenced these high energy costs. And it can’t now be that German industry, German workers should be stuck with the bill.”

The price of gas is roughly double what it was in 2021, with a senior official arguing nuclear would do little to solve that gas issue, hurting companies that need it to keep glass or metal red-hot and molten 24 hours a day to make glass, paper and metal coatings used in buildings and cars.

A second blow came as key trade partner China experiences a slowdown after several decades of strong economic growth.

These outside shocks have exposed cracks in Germany’s foundation that were ignored during years of success, including lagging use of digital technology in government and business and a lengthy process to get badly needed renewable energy projects approved.

 

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