Energy magnate's wife to get 184 million in divorce

By Associated Press


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An energy magnate's estranged wife was awarded $184 million in what appears to be one of the biggest divorce verdicts in U.S. history.

Citing irreconcilible differences, Maya Polsky, a 55-year-old homemaker and art gallery owner, filed for divorce from her husband, Michael Polsky, in 2003.

Judge William Boyd had ruled in October that Maya Polsky was entitled to half of the Chicago couple's cash and assets, with her share valued at $176 million. The judge recently amended his decision to include previously omitted assets that increased the value of her award to $184 million.

Maya Polsky's attorney, Howard Rosenfeld, said more than $170 million of the award is nontaxable cash. He said that in researching the case he could find nothing in which a homemaker wife received such a significant award.

"She's very much satisfied with the court's decision. She thinks she was fairly treated by the court," Rosenfeld said.

The couple married in 1975 in Kiev, Ukraine, then part of the Soviet Union. They arrived in the United States in 1976 with only four suitcases and $500 in cash, according to court records. In 1980, they moved from Detroit to Chicago, where Michael Polsky found success in the energy business.

Judges in Illinois have some leeway in determining how to split marital assets. Rosenfeld successfully argued that Maya Polsky was her 57-year-old husband's trusted confidant and therefore entitled to half of the estate.

"They would walk together after dinners, and Michael would share details of his work, looking for empathy, advice or merely an open ear," Rosenfeld wrote in court filings. "For many years, their marital partnership flourished. Michael provided sustenance and security, and Maya provided love, support, advice and counsel."

Michael Polsky's attorneys contended that he was responsible for the couple's great wealth and said they will likely appeal the decision.

"He intends to test this decision on appeal because he's always believed that this shouldn't have been a 50-50 split," attorney Joseph Tighe said.

David Meyer, a law professor at the University of Illinois at Urbana-Champaign, said the Polsky case is "remarkable and historic" because of the size of the award and Boyd's decision to split the estate equally.

"Those are huge numbers," Meyer said. "When you get these cases of extraordinary wealth, it really puts to the test this notion of marriage as a complete partnership."

Gaetano Ferro, president of the American Academy of Matrimonial Lawyers, said he wasn't aware of a bigger award in the U.S.

Michael Polsky launched the company that eventually would become Northbrook-based SkyGen Energy, a leading independent power producer that sold in 2000 for about $450 million. He is now president and CEO of Invenergy Wind LLC, a Chicago-based wind energy company.

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Its Electric Grid Under Strain, California Turns to Batteries

California Battery Storage is transforming grid reliability as distributed energy, solar-plus-storage, and demand response mitigate rolling blackouts, replace peaker plants, and supply flexible capacity during heat waves and evening peaks across utilities and homes.

 

Key Points

California Battery Storage uses distributed and utility batteries to stabilize power, shift solar, and curb blackouts.

✅ Supplies flexible capacity during peak demand and heat waves

✅ Enables demand response and replaces gas peaker plants

✅ Aggregated assets form virtual power plants for grid support

 

Last month as a heat wave slammed California, state regulators sent an email to a group of energy executives pleading for help to keep the lights on statewide. “Please consider this an urgent inquiry on behalf of the state,” the message said.

The manager of the state’s grid was struggling to increase the supply of electricity because power plants had unexpectedly shut down and demand was surging. The imbalance was forcing officials to order rolling blackouts across the state for the first time in nearly two decades.

What was unusual about the emails was whom they were sent to: people who managed thousands of batteries installed at utilities, businesses, government facilities and even homes. California officials were seeking the energy stored in those machines to help bail out a poorly managed grid and reduce the need for blackouts.

Many energy experts have predicted that batteries could turn homes and businesses into mini-power plants that are able to play a critical role in the electricity system. They could soak up excess power from solar panels and wind turbines and provide electricity in the evenings when the sun went down or after wildfires and hurricanes, which have grown more devastating because of climate change in recent years. Over the next decade, the argument went, large rows of batteries owned by utilities could start replacing power plants fueled by natural gas.

But that day appears to be closer than earlier thought, at least in California, which leads the country in energy storage. During the state’s recent electricity crisis, more than 30,000 batteries supplied as much power as a midsize natural gas plant. And experts say the machines, which range in size from large wall-mounted televisions to shipping containers, will become even more important because utilities, businesses and homeowners are investing billions of dollars in such devices.

“People are starting to realize energy storage isn’t just a project or two here or there, it’s a whole new approach to managing power,” said John Zahurancik, chief operating officer at Fluence, which makes large energy storage systems bought by utilities and large businesses. That’s a big difference from a few years ago, he said, when electricity storage was seen as a holy grail — “perfect, but unattainable.”

On Friday, Aug. 14, the first day California ordered rolling blackouts, Stem, an energy company based in the San Francisco Bay Area, delivered 50 megawatts — enough to power 20,000 homes — from batteries it had installed at businesses, local governments and other customers. Some of those devices were at the Orange County Sanitation District, which installed the batteries to reduce emissions by making it less reliant on natural gas when energy use peaks.

John Carrington, Stem’s chief executive, said his company would have provided even more electricity to the grid had it not been for state regulations that, among other things, prevent businesses from selling power from their batteries directly to other companies.

“We could have done two or three times more,” he said.

The California Independent System Operator, which manages about 80 percent of the state’s grid, has blamed the rolling blackouts on a confluence of unfortunate events, including extreme weather impacts on the grid that limited supply: A gas plant abruptly went offline, a lack of wind stilled thousands of turbines, and power plants in other states couldn’t export enough electricity. (On Thursday, the grid manager urged Californians to reduce electricity use over Labor Day weekend because temperatures are expected to be 10 to 20 degrees above normal.)

But in recent weeks it has become clear that California’s grid managers also made mistakes last month, highlighting the challenge of fixing California’s electric grid in real time, that were reminiscent of an energy crisis in 2000 and 2001 when millions of homes went dark and wholesale electricity prices soared.

Grid managers did not contact Gov. Gavin Newsom’s office until moments before it ordered a blackout on Aug. 14. Had it acted sooner, the governor could have called on homeowners and businesses to reduce electricity use, something he did two days later. He could have also called on the State Department of Water Resources to provide electricity from its hydroelectric plants.

Weather forecasters had warned about the heat wave for days. The agency could have developed a plan to harness the electricity in numerous batteries across the state that largely sat idle while grid managers and large utilities such as Pacific Gas & Electric scrounged around for more electricity.

That search culminated in frantic last-minute pleas from the California Public Utilities Commission to the California Solar and Storage Association. The commission asked the group to get its members to discharge batteries they managed for customers like the sanitation department into the grid. (Businesses and homeowners typically buy batteries with solar panels from companies like Stem and Sunrun, which manage the systems for their customers.)

“They were texting and emailing and calling us: ‘We need all of your battery customers giving us power,’” said Bernadette Del Chiaro, executive director of the solar and storage association. “It was in a very last-minute, herky-jerky way.”

At the time of blackouts on Aug. 14, battery power to the electric grid climbed to a peak of about 147 megawatts, illustrating how virtual power plants can rapidly scale, according to data from California I.S.O. After officials asked for more power the next day, that supply shot up to as much as 310 megawatts.

Had grid managers and regulators done a better job coordinating with battery managers, the devices could have supplied as much as 530 megawatts, Ms. Del Chiaro said. That supply would have exceeded the amount of electricity the grid lost when the natural gas plant, which grid managers have refused to identify, went offline.

Officials at California I.S.O. and the public utilities commission said they were working to determine the “root causes” of the crisis after the governor requested an investigation.

Grid managers and state officials have previously endorsed the use of batteries, using AI to adapt as they integrate them at scale. The utilities commission last week approved a proposal by Southern California Edison, which serves five million customers, to add 770 megawatts of energy storage in the second half of 2021, more than doubling its battery capacity.

And Mr. Zahurancik’s company, Fluence, is building a 400 megawatt-hour battery system at the site of an older natural gas power plant at the Alamitos Energy Center in Long Beach. Regulators this week also approved a plan to extend the life of the power plant, which was scheduled to close at the end of the year, to support the grid.

But regulations have been slow to catch up with the rapidly developing battery technology.

Regulators and utilities have not answered many of the legal and logistical questions that have limited how batteries owned by homeowners and businesses are used. How should battery owners be compensated for the electricity they provide to the grid? Can grid managers or utilities force batteries to discharge even if homeowners or businesses want to keep them charged up for their own use during blackouts?

During the recent blackouts, Ms. Del Chiaro said, commercial and industrial battery owners like Stem’s customers were compensated at the rates similar to those that are paid to businesses to not use power during periods of high electricity demand. But residential customers were not paid and acted “altruistically,” she said.

 

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Hitachi freezes British nuclear project, books $2.8bn hit

Hitachi UK Nuclear Project Freeze reflects Horizon Nuclear Power's suspended Anglesey plant amid Brexit uncertainty, investor funding gaps, rising safety regulation costs, and a 300 billion yen write-down, impacting Britain's low-carbon electricity plans.

 

Key Points

Hitachi halted Horizon's Anglesey nuclear plant over funding and Brexit risks, recording a 300 billion yen write-down.

✅ 3 trillion yen UK nuclear project funding stalled

✅ 300 billion yen impairment wipes Horizon asset value

✅ Brexit, safety rules raised costs and investor risk

 

Japan’s Hitachi Ltd said on Thursday it has decided to freeze a 3 trillion yen ($28 billion) British nuclear power project and will consequently book a write down of 300 billion yen.

The suspension comes as Hitachi’s Horizon Nuclear Power failed to find private investors for its plans to build a plant in Anglesey, Wales, where local economic concerns have been raised, which promised to provide about 6 percent of Britain’s electricity.

“We’ve made the decision to freeze the project from the economic standpoint as a private company,” Hitachi said in a statement.

Hitachi had called on the British government to boost financial support for the project to appease investor anxiety, but turmoil over the country’s impending exit from the European Union limited the government’s capacity to compile plans, people close to the matter previously said.

Hitachi had called on the British government to boost financial support for the project to appease investor anxiety, but turmoil over the country’s impending exit from the European Union and setbacks at Hinkley Point C limited the government’s capacity to compile plans, people close to the matter previously said.

Hitachi had banked on a group of Japanese investors and the British government each taking a one-third stake in the equity portion of the project, the people said. The project would be financed one-third by equity and rest by debt.

The nuclear writedown wipes off the Horizon unit’s asset value, which stood at 296 billion yen as of September-end.

Hitachi stopped short of scrapping the northern Wales project. The company will continue to discuss with the British government on nuclear power, it said.

However, industry sources said hurdles to proceed with the project are high considering tighter safety regulations since a meltdown at Japan’s Fukushima nuclear power plant in 2011 drove up costs, even as Europe’s nuclear decline strains energy planning.

Analysts and investors viewed the suspension as an effective withdrawal and saw the decision as a positive step that has removed uncertainties for the Japanese conglomerate.

Hitachi bought Horizon in 2012 for 696 million pounds ($1.12 billion), fromE.ON and RWE as the German utilities decided to sell their joint venture following Germany’s nuclear exit after the Fukushima accident.

Hitachi’s latest decision further dims Japan’s export prospects, even as some peers pursue UK offshore wind investments to diversify.

Toshiba Corp last year scrapped its British NuGen project after its US reactor unit Westinghouse went bankrupt, while Westinghouse in China reported no major impact, and it failed to sell NuGen to South Korea’s KEPCO.

Mitsubishi Heavy Industries Ltd has effectively abandoned its Sinop nuclear project in Turkey, a person involved in the project previously told Reuters, as cost estimates had nearly doubled to around 5 trillion yen.

 

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Trump Is Seen Replacing Obama’s Power Plant Overhaul With a Tune-Up

Clean Power Plan Rollback signals EPA's shift to inside-the-fence efficiency at coal plants, emphasizing heat-rate improvements over sector-wide decarbonization, renewables, natural gas switching, demand-side efficiency, and carbon capture under Clean Air Act constraints.

 

Key Points

A policy shift by the EPA to replace broad emissions rules with plant-level efficiency standards, limiting CO2 cuts.

✅ Inside-the-fence heat-rate improvements at coal units

✅ Potential CO2 cuts limited to about 6% per plant

✅ Alternatives: fuel switching, renewables, carbon capture

 

President Barack Obama’s signature plan to reduce carbon dioxide emissions from electrical generation took years to develop and touched every aspect of power production and use, from smokestacks to home insulation.

The Trump administration is moving to scrap that plan and has signaled that any alternative it might adopt would take a much less expansive approach, possibly just telling utilities to operate their plants more efficiently.

That’s a strategy environmentalists say is almost certain to fall short of what’s needed.

The Trump administration is making "a wholesale retreat from EPA’s legal, scientific and moral obligation to address the threats of climate change," said former Environmental Protection Agency head Gina McCarthy, the architect of Obama’s Clean Power Plan.

President Donald Trump promised to rip up the initiative, echoing an end to the 'war on coal' message from his campaign, which mandated that states change their overall power mix, displacing coal-fired electricity with that from wind, solar and natural gas. The EPA is about to make it official, arguing the prior administration violated the Clean Air Act by requiring those broad changes to the electricity sector, according to a draft obtained by Bloomberg.

 

Possible Replacements

Later, the agency will also ask the public to weigh in on possible replacements. The administration will ask whether the EPA can or should develop a replacement rule -- and, if so, what actions can be mandated at individual power plants, though some policymakers favor a clean electricity standard to drive broader decarbonization.

 

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Such changes -- such as adding automation or replacing worn turbine seals -- would yield at most a 6 percent gain in efficiency, along with a corresponding fall in greenhouse gas emissions, according to earlier modeling by the Environmental Protection Agency and other analysts. That compares to the 32 percent drop in emissions by 2030 under Obama’s Clean Power Plan.

"In these existing plants, there’s only so many places to look for savings," said John Larsen, a director of the Rhodium Group, a research firm. "There’s only so many opportunities within a big spinning machine like that."

EPA Administrator Scott Pruitt outlined such an "inside-the-fence-line" approach in 2014, later embodied in the Affordable Clean Energy rule that industry groups backed, when he served as Oklahoma’s attorney general. Under his blueprint, states would set emissions standards after a detailed unit-by-unit analysis, looking at what reductions are possible given "the engineering limits of each facility."

The EPA has not decided whether it will promulgate a new rule at all, though it has also proposed new pollution limits for coal and gas plants in separate actions. In a forthcoming advanced notice of proposed rulemaking, the EPA will ask "what inside-the-fence-line options are legal, feasible and appropriate," according to a document obtained by Bloomberg.

Increased efficiency at a coal plant -- known as heat-rate improvement -- translates into fewer carbon-dioxide emissions per unit of electric power generated.

Under Obama, the EPA envisioned utilities would make some straightforward efficiency improvements at coal-fired power plants as the first step to comply with the Clean Power Plan. But that was expected to coincide with bigger, broader changes -- such as using more cleaner-burning natural gas, adding more renewable power projects and simply encouraging customers to do a better job turning down their thermostats and turning off their lights.

Obama’s EPA didn’t ask utilities to wring every ounce of efficiency they could out of coal-fired power plants because they saw the other options as cheaper. A plant-specific approach "would be grossly insufficient to address the public health and environmental impacts from CO2 emissions," Obama’s EPA said.

That approach might yield modest emissions reductions and, in a perverse twist, might event have the opposite effect. If utilities make coal plants more efficient -- thereby driving down operating costs -- they also make them more competitive with natural gas and renewables, "so they might run more and pollute more," said Conrad Schneider, advocacy director for the Clean Air Task Force.  

In a competitive market, any improvement in emissions produced for each unit of energy could be overwhelmed by an increase in electrical output, and debates over changes to electricity pricing under Trump and Perry added further uncertainty.

"A very minor heat rate improvement program would very likely result in increased emissions," Schneider said. "It might be worse than nothing."

Power companies want to get as much electricity as possible from every pound of coal, so they already have an incentive to keep efficiency high, said Jeff Holmstead, a former assistant EPA administrator now at Bracewell LLP. But an EPA regulation known as “new source review” has discouraged some from making those changes, for fear of triggering other pollution-control requirements, he said.

"If EPA’s replacement rule allows companies to improve efficiency without triggering new source review, it would make a real difference in terms of reducing carbon-dioxide emissions," Holmstead said.

 

Modest Impact

A plant-specific approach doesn’t have to mean modest impact.

"If you’re thinking about what can be done at the power plants by themselves, you don’t stop at efficiency tune-ups," said David Doniger, director of the Natural Resources Defense Council’s climate and clean air program. "You look at things like switching to natural gas or installing carbon capture and storage."

Requirements that facilities use carbon capture technology or swap in natural gas for coal could actually come close to hitting the same goals as in Obama’s Clean Power Plan -- if not go even further, Schneider said. They just would cost more.

The benefit of the Clean Power Plan "is that it enabled states to create programs and enabled companies to find a reduction strategy that was the most efficient and made the most sense for their own content," said Kathryn Zyla, deputy director of the Georgetown Climate Center. "And that flexibility was really important for the states and companies."

Some utilities, including Houston-based Calpine Corp., PG&E Corp. and Dominion Resources Inc., backed the Obama-era approach. And they are still pushing the Trump administration to be creative now.

"The Clean Power Plan achieved a thoughtful, balanced approach that gave companies and states considerable flexibility on how best to pursue that goal," said Melissa Lavinson, vice president of federal affairs and policy for PG&E’s Pacific Gas and Electric utility. “We look forward to working with the administration to devise an alternative plan for decarbonizing the U.S. economy."

 

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Wind generates more than half of Summerside's electricity in May

Summerside Wind Power reached 61% in May, blending renewable energy, municipal utility operations, and P.E.I. wind farms, driving city revenue, advancing green city goals, and laying groundwork for smart grid integration.

 

Key Points

Summerside Wind Power is the city utility's wind supply, 61% in May, generating revenue that supports local services.

✅ 61% of electricity in May from wind; annual target 45%.

✅ Mix of city-owned farm and West Cape Wind Farm contract.

✅ Revenues projected at $2.9M; funds municipal budget and services.

 

During the month of May, 61 per cent of the electricity Summerside's homes, businesses and industries used came from wind power sources.

25 per cent was purchased from the West Cape Wind Farm in West Point, P.E.I. — the city has had a contract with it since 2007. The other 36 per cent came from the city's own wind farm, which was built in 2009. 

"One of the strategic goals that was planned for by the city back in 2005 was to try to become a 100 per cent green city," said Greg Gaudet, Summerside's director of municipal services.

"The city started looking at ways it could adopt green practices into its operations on everything it owns and operates and provides services to the community."

Summerside Electric powers about 6,200 residential, 970 commercial and 30 industrial customers and also sells to NB Power, while Nova Scotia Power now generates 30 per cent of its electricity from renewables.

The Summerside Wind Farm is owned by the City of Summerside, which then sells the electricity to Summerside Electric, which it also owns, for profit. 

For the months of April and May, the wind farm generated $630,000 for the city. Last year, it was $507,000 over the same time frame, which does not include a 2 per cent rate increase imposed this year.

"We had a lot of good, strong days of wind for the month of May over other years. So normally we'd be on average somewhere in the range of the 45 per cent range for those months," said Gaudet. 

The city's annual target for wind generation is also 45 per cent, which aligns with the view that more energy sources make better projects. Gaudet said it balances out over the year, with winter being the best and production dropping as low as 25 per cent in the summer months.

At Summerside council's monthly meeting on Monday, May's 61 per cent figure was touted as one of the highest months on record.

"To have one at 61 per cent means we had great production from our wind facilities and contracts, though communities such as Portsmouth have raised turbine noise and flicker concerns in other contexts," Gaudet said.

The utility also owns and provides power through a diesel generation plant.

Municipal money maker
The municipality projects its wind energy production will generate $2.9 million for the city in its current fiscal year, which began April 1, paralleling job gains seen in Alberta's renewables surge this year.

"Any revenues that are received from the wind farm facility goes into the City of Summerside budget," Gaudet said. "Then the council decides on how that money is accrued and where it goes and what it supports in the community."

Wind power generated $2.89 million for the city in the 2019-2020 fiscal year. The budget originally projected $3.2 million in revenue, but blade damage sustained during post-tropical storm Dorian put two turbines out of commission for a few weeks.

Gaudet called this their "only bad year" and officials said they see this year's target to be a bit more conservative and achievable regardless of hiccups and uncontrollable forces, such as the wind they're harnessing.

"It's performed outstandingly well," said Gaudet of the operation.

"There's been no huge, major cost factors with the wind farm to date ... its production has been fairly consistent from year to year." 

Gaudet said the technology has already been piloted at a smaller operation at Credit Union Place, aligning with municipal solar power projects elsewhere.

The goal of the project is to bring Summerside's renewable portfolio up to a yearly average of 62 per cent. Gaudet said it's expected to be commissioned by May 2022 at the latest and after that, the city hopes to focus on smart grid technology.

"It's a long-term goal and I think it's the right [investment] to make," he said. "You have to be environmentally conscious and a steward of your community.

"I think Summerside is that and does that ... a model for North America to look at how a city can work a relationship with an electric utility for the betterment."

 

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Africa's Electricity Unlikely To Go Green This Decade

Africa 2030 Energy Mix Forecast finds electricity generation doubling, with fossil fuels dominant, non-hydro renewables under 10%, hydro vulnerable to droughts, and machine-learning analysis of planned power plants shaping climate and investment decisions.

 

Key Points

An analysis predicting Africa's 2030 power mix, with fossil fuels dominant, limited renewables growth, and hydro risks.

✅ ML model assesses 2,500 planned plants' commissioning odds

✅ Fossil fuels ~66% of generation; non-hydro RE <10% by 2030

✅ Policy shifts and finance reallocation to scale solar and wind

 

New research today from the University of Oxford predicts that total electricity generation across the African continent will double by 2030, with fossil fuels continuing to dominate the energy mix posing potential risk to global climate change commitments.

The study, published in Nature Energy, uses a state-of-the art machine-learning technique to analyse the pipeline of more than 2,500 currently-planned power plants and their chances of being successfully commissioned. It shows the share of non-hydro renewables in African electricity generation is likely to remain below 10% in 2030, although this varies by region.

'Africa's electricity demand is set to increase significantly as the continent strives to industrialise and improve the wellbeing of its people, which offers an opportunity to power this economic development and expand universal electricity access through renewables' says Galina Alova, study lead author and researcher at the Oxford Smith School of Enterprise and the Environment.

'There is a prominent narrative in the energy planning community that the continent will be able to take advantage of its vast renewable energy resources and rapidly decreasing clean technology prices to leapfrog to renewables by 2030 but our analysis shows that overall it is not currently positioned to do so.'

The study predicts that in 2030, fossil fuels will account for two-thirds of all generated electricity across Africa. While an additional 18% of generation is set to come from hydro-energy projects across Africa. These have their own challenges, such as being vulnerable to an increasing number of droughts caused by climate change.

The research also highlights regional differences in the pace of the transition to renewables across Sub-Saharan Africa, with southern Africa leading the way. South Africa alone is forecast to add almost 40% of Africa's total predicted new solar capacity by 2030.

'Namibia is committed to generate 70% of its electricity needs from renewable sources, including all the major alternative sources such as hydropower, wind and solar generation, by 2030, as specified in the National Energy Policy and in Intended Nationally Determined Contributions under Paris Climate Change Accord,' says Calle Schlettwein, Namibia Minister of Water (former Minister of Finance and Minister of Industrialisation). 'We welcome this study and believe that it will support the refinement of strategies for increasing generation capacity from renewable sources in Africa and facilitate both successful and more effective public and private sector investments in the renewable energy sector.'

Minister Schlettwein adds: 'The more data-driven and advanced analytics-based research is available for understanding the risks associated with power generation projects, the better. Some of the risks that could be useful to explore in the future are the uncertainties in hydrological conditions and wind regimes linked to climate change, and economic downturns such as that caused by the COVID-19 pandemic.'

The study further suggests that a decisive move towards renewable energy in Africa would require a significant shock to the current system. This includes large-scale cancellation of fossil fuel plants currently being planned. In addition, the study identifies ways in which planned renewable energy projects can be designed to improve their success chances for example, smaller size, fitting ownership structure, and availability of development finance for projects.

'The development community and African decision makers need to act quickly if the continent wants to avoid being locked into a carbon-intense energy future' says Philipp Trotter, study author and researcher at the Smith School. 'Immediate re-directions of development finance from fossil fuels to renewables are an important lever to increase experience with solar and wind energy projects across the continent in the short term, creating critical learning curve effects.'

 

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Tube Strikes Disrupt London Economy

London Tube Strikes Economic Impact highlights transport disruption reducing foot traffic, commuter flows, and tourism, squeezing small businesses, hospitality revenue, and citywide growth while business leaders urge negotiations, resolution, and policy responses to stabilize operations.

 

Key Points

Reduced transport options cut foot traffic and sales, straining small businesses and slowing London-wide growth.

✅ Hospitality venues report lower revenue and temporary closures

✅ Commuter and tourism declines reduce daily sales and bookings

✅ Business groups urge swift negotiations to restore services

 

London's economy is facing significant challenges due to ongoing tube strikes, challenges that are compounded by scrutiny of UK energy network profits and broader cost pressures across sectors, with businesses across the city experiencing disruptions that are impacting their operations and bottom lines.

Impact on Small Businesses

Small businesses, particularly those in the hospitality sector, are bearing the brunt of the disruptions caused by the strikes. Many establishments rely on the steady flow of commuters and tourists that the tube system facilitates, while also hoping for measures like temporary electricity bill relief that can ease operating costs during downturns. With reduced transportation options, foot traffic has dwindled, leading to decreased sales and, in some cases, temporary closures.

Economic Consequences

The strikes are not only affecting individual businesses but are also having a ripple effect on the broader economy, a dynamic seen when commercial electricity consumption plummeted in B.C. during the pandemic. The reduced activity in key sectors is contributing to a slowdown in economic growth, echoing periods when BC Hydro demand fell 10% and prompting policy responses such as Ontario electricity rate reductions for businesses, with potential long-term consequences if the disruptions continue.

Calls for Resolution

Business leaders and industry groups are urging for a swift resolution to the strikes. They emphasize the need for dialogue between the involved parties to reach an agreement that minimizes further economic damage and restores normalcy to the city's transportation system.

The ongoing tube strikes in London are causing significant disruptions to the city's economy, particularly affecting small businesses that depend on the efficient movement of people. Immediate action is needed to address the issues, drawing on tools like a subsidized hydro plan used elsewhere to spur recovery, to prevent further economic downturn.

 

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