Germany, France prevent breakup of energy giants

By International Herald Tribune


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EU governments struck a compromise which they said will liberalize Europe's energy markets without forcing large gas and electricity companies in Germany and France to sell off their distribution arms.

At an EU environment ministers meeting, France and Germany successfully resisted a push for a complete sell-off of energy companies' power grids and gas pipelines to ease their grip of the supply chain. They disliked only slightly less an alternative whereby energy giants put their infrastructure under tight, independent supervision.

In a compromise, the energy ministers adopted both models, agreeing an independent review in 2010 must show which liberalizes the EU's gas and electricity markets best.

The compromise rescued a broad EU energy package designed to secure affordable supplies of energy at a time when global demand, especially for oil and gas, is driving up prices to record high levels, said Slovenian Energy Minister Andrej Vizjak, the meeting's chairman.

The aim is to make access to energy networks easier for everyone, notably companies that do not have their own power grids or pipeline networks. The measure follows 2003 legislation that enabled EU consumers to choose their own providers.

EU's electricity and gas markets — valued at about 340 billion euros (US$499 billion) — remain fragmented by national borders.

France and Germany led a small camp of nations that includes Austria, Luxembourg, Bulgaria and Slovakia in opposing the carve up of energy companies. Britain, the Netherlands, Denmark, Sweden, Finland and Spain strongly favored the other option.

Officials said they hope the bill will be adopted before the end of the year by the European Parliament.

Crucially, it contains a 'Gazprom' clause, which France and Germany had wanted out, that will let EU companies only do business with non-EU firms — such as the Russian state-owned gas giant — if the latter's home countries do not restrict access to EU energy companies.

Europe has consistently asked Russia to allow European firms wider access to the Russian market.

The EU gets a quarter of its gas from Gazprom, a level that is set to rise significantly in the years ahead. German, French and Italian gas companies have signed long-term delivery contracts with Gazprom.

EU antitrust regulators last year said Europeans pay too much to greedy energy companies that control the market and are not putting enough of their profits in making much-needed improvements to the region's energy networks.

They concluded that stripping power grids and gas pipelines was the best way to secure market liberalization.

At the meeting, German Energy Minister Michael Glos said: "The issue of ownership is extremely important in Germany.

"We do not want things determined by the European Union," he told his EU colleagues at the meeting that was partly shown on the Web.

Around half of the EU's 27 member states have already taken major steps to liberalize energy markets by allowing energy suppliers to use existing networks.

To get German and France on board, the European Commission and Slovenia drafted an alternative that lets energy companies keep their grids and pipelines provided they are managed by an "independent transmission operator" under outside supervision and with credible long-term investment plans of their own.

These companies could be fined if they did not break ties with their parent company and could not allow managers to float from one firm to the other.

The EU nations "had to compromise. No one won 100 percent," said British Energy Minister Malcolm Wicks. He hailed the compromise saying "European companies and citizens expect us to move ahead" in energy liberalization to bring the cost of energy down.

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Renewable energy now cheapest option for new electricity in most of the world: Report

Renewable Energy Cost Trends highlight IRENA data showing solar and wind undercut coal, as utility-scale projects drive lower levelized electricity costs worldwide, with the Middle East and UAE advancing mega solar parks.

 

Key Points

They track how solar and wind undercut new fossil fuels as utility-scale costs drop and investment accelerates.

✅ IRENA reports renewables cheapest for new installations

✅ Solar and wind LCOE fell sharply since 2010

✅ Middle East and UAE scale mega utility projects

 

Renewable energy is now the cheapest option for new electricity installation in most of the world, a report from the International Renewable Energy Agency (IRENA) on Tuesday said.

Renewable power projects have undercut traditional coal fuel plants, with solar and wind power costs in particular falling as record-breaking growth continues worldwide.

“Installing new renewables increasingly costs less than the cheapest fossil fuels. With or without the health and economic crisis, dirty coal plants were overdue to be consigned to the past, said Francesco La Camera, director-general of IRENA said in the report.

In 2019, renewables accounted for around 72 percent of all new capacity added worldwide, IRENA said, following a 2016 record year that highlighted the momentum, with lowering costs and technological improvements in solar and wind power helping this dynamic. For solar energy, IRENA notes that the cost for electricity from utility-scale plants fell by 82 percent in the decade between 2010 and 2019, as China's solar PV growth underscored in 2016.

“More than half of the renewable capacity added in 2019 achieved lower electricity costs than new coal, while new solar and wind projects are also undercutting the cheapest and least sustainable of existing coal-fired plants,” Camera added.

Costs for solar and wind power also fell year-on-year by 13 and 9 percent, respectively, with offshore wind costs showing steep declines as well. In 2019, more than half of all newly commissioned utility-scale renewable power plants provided electricity cheaper than the lowest cost of a new fossil fuel plant.

The Middle East

In mid-May, a report by UK-based law firm Ashurst suggested the Middle East is the second most popular region for renewable energy investment after North America, at a time when clean energy investment is outpacing fossil fuels.

The region is home to some of the largest renewable energy bets in the world, with Saudi wind expansion gathering pace. The UAE, for instance, is currently developing the Mohammed Bin Rashid Solar Park, the world’s largest concentrated solar power project in the world.

Around 26 percent of Middle East respondents in Ashurst’s survey said that they were presently investing in energy transition, marking the region as the most popular for current investment in renewables, while 11 percent added that they were considering investing.

In North America, the most popular region, 28 percent said that they were currently investing, with 11 percent stating they are considering investing.

 

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America’s Electricity is Safe From the Coronavirus—for Now

US Grid Pandemic Response coordinates control rooms, grid operators, and critical infrastructure, leveraging hydroelectric plants, backup control centers, mutual assistance networks, and deep cleaning protocols to maintain reliability amid reduced demand and COVID-19 risks.

 

Key Points

US Grid Pandemic Response encompasses measures by utilities and operators to safeguard power reliability during COVID-19

✅ Control rooms staffed on-site; operators split across backup centers

✅ Health screenings, deep cleaning, and isolation protocols mitigate contagion

✅ Reduced demand and mutual assistance improve grid resilience

 

Control rooms are the brains of NYPA’s power plants, which are mostly hydroelectric and supply about a quarter of all the electricity in New York state. They’re also a bit like human petri dishes. The control rooms are small, covered with frequently touched switches and surfaces, and occupied for hours on end by a half-dozen employees. Since social distancing and telecommuting isn’t an option in this context, NYPA has instituted regular health screenings and deep cleanings to keep the coronavirus out.

The problem is that each power plant relies on only a handful of control room operators. Since they have a specialized skill set, they can’t be easily replaced if they get sick. “They are very, very critical,” says Gil Quiniones, NYPA president and CEO. If the pandemic worsens, Quiniones says that NYPA may require control room operators to live on-site at power plants to reduce the chance of the virus making it in from the outside world. It sounds drastic, but Quiniones says NYPA has done it before during emergencies—once during the massive 2003 blackout, and again during Hurricane Sandy.

Meanwhile, PJM is one of North America’s nine regional grid operators and manages the transmission lines that move electricity from power plants to millions of customers in 13 states on the Eastern seaboard, including Washington, DC. PJM has had a pandemic response plan on the books for 15 years, but Mike Bryson, senior vice president of operations, says that this is the first time it’s gone into full effect. As of last week, about 80 percent of PJM’s 750 full-time employees have been working from home. But PJM also requires a skeleton crew of essential workers to be on-site at all times in its control centers. As part of its emergency planning, PJM built a backup control center years ago, and now it is splitting control center operators between the two to limit contact.

Past experience with large-scale disasters has helped the energy sector keep the lights on and ventilators running during the pandemic. Energy is one of 16 sectors that the US government has designated as “critical infrastructure,” which also includes the communications industry, transportation sector, and food and water systems. Each is seen as vital to the country and therefore has a duty to maintain operations during national emergencies.

“We need to be treated as first responders,” says Scott Aaronson, the vice president of security and preparedness at the Edison Electric Institute, a trade group representing private utilities. “Everybody's goal right now is to keep the public healthy, and to keep society functioning as best we can. A lack of electricity will certainly create a challenge for those goals.”

America’s electricity grid is a patchwork of regional grid operators connecting private and state-owned utilities. This means simply figuring out who’s in charge and coordinating among the various organizations is one of the biggest challenges to keeping the electricity flowing during a national emergency, according to Aaronson.

Generally, a lot of this responsibility falls on formal energy organizations like the nonprofit North American Electric Reliability Corporation and the Federal Energy Regulatory Commission. But during the coronavirus outbreak, an obscure organization run by the CEOs of electric utilities called the Electricity Subsector Coordinating Council has also served as a primary liaison between the federal government and the thousands of utility companies around the US. Aaronson says the organization has been meeting twice a week for the past three weeks to ensure that utilities are implementing best practices in their response to the coronavirus, as well as to inform the government of material needs to keep the energy sector running smoothly.

This tight-knit coordination will be especially important if the pandemic gets worse, as many forecasts suggest it will. Most utilities belong to at least one mutual assistance group, an informal network of electricity suppliers that help each other out during a catastrophe. These mutual assistance networks are usually called upon following major storms that threaten prolonged outages. But they could, in principle, be used to help during the coronavirus pandemic too. For example, if a utility finds itself without enough operators to manage a power plant, it could conceivably borrow trained operators from another company to make sure the power plant stays online.

So far, utilities and grid operators have managed to make it work on their own. There have been a handful of coronavirus cases reported at power plants, but they haven’t yet affected these plants’ ability to deliver energy. The challenges of running a power plant with a skeleton crew is partially offset by the reduced power demand as businesses shut down and more people work from home, says Robert Hebner, the director of the Center for Electromechanics at the University of Texas. “The reduced demand for power gives utilities a little breathing room,” says Hebner.

A recent study by the University of Chicago’s Energy Policy Institute found that electricity demand in Italy has plunged by 18 percent following the severe increase in coronavirus cases in the country. Energy demand in China also plummeted as a result of the pandemic. Bryson, at PJM, says the grid operator has seen about a 6 percent decrease in electricity demand in recent weeks, but expects an even greater drop if the pandemic gets worse.

Generally speaking, problems delivering electricity in the US occur when the grid is overloaded or physically damaged, such as during California wildfires or a hurricane.

An open question among coronavirus researchers is whether there will be a second wave of the pandemic later this year. During the Spanish flu pandemic in the early 20th century, the second wave turned out to be deadlier than the first. If the coronavirus remerges later this year, it could be a serious threat to reliable electricity in the US, says John MacWilliams, a former associate deputy secretary of the Department of Energy and a senior fellow at Columbia University’s Center on Global Energy Policy.

“If this crisis extends into the fall, we're going to hit hurricane season along the coasts,” MacWilliams says. “Utilities are doing a very good job right now, but if we get unlucky and have an active hurricane season, they're going to get very stressed because the number of workers that are available to repair damage and restore power will become more limited.”

This was a sentiment echoed by Bryson at PJM. “Any one disaster is manageable, but when you start layering them on top of each other, it gets much more challenging,” he adds. The US electricity grid struggles to handle major storms as it is, and these challenges will be heightened if too many workers are home sick. In this sense, the energy sector’s ability to deliver the electricity needed to keep manufacturing medical supplies or keep ventilators running depends to a large extent on our ability to flatten the curve today. The coronavirus is bad enough without having to worry about the lights going out.

 

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California Halts Energy Rebate Program Amid Trump Freeze

California energy rebate freeze disrupts heat pump incentives, HVAC upgrades, and climate funding, as federal uncertainty stalls Inflation Reduction Act support, delaying home electrification, energy efficiency gains, and greenhouse gas emissions reductions statewide.

 

Key Points

A statewide pause on $290M incentives for heat pumps and HVAC upgrades due to federal climate funding uncertainty.

✅ $290M program paused amid federal funding freeze

✅ Heat pump, HVAC, electrification upgrades delayed

✅ Previously approved rebates honored; new apps halted

 

California’s push for a more energy-efficient future has hit a significant roadblock as the state pauses a $290 million rebate program aimed at helping homeowners replace inefficient heating and cooling systems with more energy-efficient alternatives. The California Energy Commission announced the suspension of the program, citing uncertainty stemming from President Donald Trump’s decision to freeze funding for various climate-related initiatives.

The Halted Program

The energy rebate program, which utilizes federal funding to encourage the use of energy-efficient appliances such as heat pumps, was a crucial part of California’s efforts to reduce energy consumption and greenhouse gas emissions. By providing financial incentives for homeowners to upgrade to more efficient heating and cooling systems, the program aimed to make green energy solutions more accessible and affordable to residents. The rebate program had been popular, with many homeowners eager to participate in the initiative to lower their energy costs and improve the sustainability of their homes.

However, due to the uncertainty surrounding federal funding, the California Energy Commission announced on Monday that it would no longer be accepting new applications for the program. The agency did clarify that it would continue to honor rebates for applications that had already been approved. The pause will remain in effect until the Trump administration provides more clarity regarding the program's future funding.

The Trump Administration’s Role

This move highlights a broader issue regarding access to federal funding for state-level energy programs. The Trump administration’s decision to freeze funding for climate-related initiatives has left many states in limbo, as previously approved federal money has not been distributed as expected. Despite federal court rulings directing the Trump administration to restore these funds, states like California are still struggling to navigate the uncertainty of climate-related financial support from the federal government.

California’s decision to pause the rebate program comes after similar actions by other states. Arizona paused a similar program just a week prior, and Rhode Island had already paused new applications earlier this year. These states are all recipients of funding from a larger $4.3 billion initiative under the Inflation Reduction Act, which is designed to help homeowners purchase energy-efficient appliances like heat pumps, water heaters, and electric cooktops.

Impact of the Freeze

The pause of California's rebate program has serious implications for both consumers and the state’s energy goals. For residents, the halt means delays in the ability to upgrade to more energy-efficient home systems, which could lead to higher energy costs in the short term, a concern amid soaring electricity prices across the state.

The $290 million program was a significant step in encouraging homeowners to invest in energy efficiency, and its suspension leaves a gap in the availability of resources for those who were hoping to make energy-saving upgrades. Many of these upgrades are not just beneficial to homeowners, but they also contribute to the state’s overall energy efficiency goals, helping to reduce reliance on non-renewable energy sources, even as California's dependence on fossil fuels persists, and decrease greenhouse gas emissions.

Federal and State Tensions

The freeze in funding is just one of many points of tension between the Trump administration and states like California, which have pursued aggressive environmental policies aimed at reducing emissions and combating climate change. California has often found itself at odds with the federal government on environmental issues, especially under the leadership of President Trump. The state’s ambitious environmental policies have sometimes clashed with the federal government's approach, including efforts to wind down its fossil fuel industry in line with climate goals.

In this case, the freeze on climate-related funding appears to be part of a broader strategy by the Trump administration to limit federal spending on environmental programs, and as regulators weigh whether the state may need more power plants, planning remains complex. While the freeze impacts states that are working to transition to clean energy, critics argue that such moves undermine efforts to tackle climate change and could slow down progress toward a greener future.

The Path Forward

For California, the next steps will depend heavily on the actions of the federal government. While the state can continue to push for climate funding in the courts, the lack of clarity around the release of federal funds creates uncertainty for state programs that rely on these resources. As California continues to navigate this funding freeze, it will need to explore alternative solutions to keep its energy efficiency programs on track, such as efforts to revamp electricity rates to clean the grid, even in the face of federal challenges.

In the meantime, California residents and homeowners who were hoping to take advantage of the rebate program may have to wait until further clarification from the federal government is provided, even as officials warn of a looming electricity shortage in coming years. Whether the program can be restored or expanded in the future remains to be seen, but for now, the pause serves as a reminder of the ongoing struggles that states face when dealing with shifting federal priorities.

As the issue unfolds, other states facing similar challenges may take cues from California’s actions, and with California exporting energy policies to Western states, broader conversations about how federal and state governments can collaborate to ensure that energy efficiency initiatives and climate goals are not sidelined due to political or budgetary differences.

California’s decision to pause its $290 million energy rebate program is a significant development in the ongoing struggle between state and federal governments over climate-related funding. The uncertainty created by the Trump administration’s freeze on energy efficiency programs has led to disruptions in state-level efforts to promote sustainability and reduce emissions. As the situation continues to evolve, both California and other states will need to consider how to move forward without relying on federal funding that may or may not be available in the future.

 

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Ontario Reducing Burden on Industrial Electricity Ratepayers

Ontario Industrial Electricity Pricing Reforms aim to cut regulatory burden for industrial ratepayers through an energy concierge service, IESO billing reviews, GA estimation enhancements, clearer peak demand data, and contract cost savings.

 

Key Points

Measures to reduce industrial power costs via an energy concierge, IESO and GA reviews, and better peak demand data.

✅ Energy concierge eases pricing and connection inquiries

✅ IESO to simplify bills and refine GA estimation

✅ Real-time peak data and contract savings under review

 

Ontario's government is pursuing burden reduction measures for industrial electricity ratepayers, including legislation to lower rates to help businesses compete, and stimulate growth and investment.

Over the next year, Ontario will help industrial electricity ratepayers focus on their businesses instead of their electricity management practices by establishing an energy concierge service to provide businesses with better customer service and easier access to information about electricity pricing and changes for electricity consumers as well as connection processes.

Ontario is also tasking the Independent Electricity System Operator (IESO) to review and report back on its billing, settlement and customer service processes, building on initiatives such as electricity auctions that aim to reduce costs.

 

Improve and simplify industrial electricity bills, including clarifying the recovery rate that affects charges;

Review how the monthly Global Adjustment (GA) charge is estimated and identify potential enhancements related to cost allocation across classes; and,

Improve peak demand data publication processes and assess the feasibility of using real-time data to determine the factors that allocate GA costs to consumers.

Further, as part of the government's continued effort to finding efficiencies in the electricity system, Ontario is also directing IESO to review generation contracts to find opportunities for cost savings.

These measures are based on industry feedback received during extensive industrial electricity price consultations held between April and July 2019, which underscored how high electricity rates have impacted factories across the province.

"Our government is focused on finding workable electricity pricing solutions that will provide the greatest benefit to Ontario," said Greg Rickford, Minister of Energy, Northern Development and Mines. "Reducing regulatory burden on businesses can free up resources that can then be invested in areas such as training, new equipment and job creation."

The government is also in the process of developing further changes to industrial electricity pricing policy, amid planned rate increases announced by the OEB, informed by what was heard during the industrial electricity price consultations.

"It's important that we get this right the first time," said Minister Rickford. "That's why we're taking a thoughtful approach and listening carefully to what businesses in Ontario have to say."

Helping industrial ratepayers is part of the government's balanced and prudent plan to build Ontario together through ensuring our province is open for business and building a more transparent and accountable electricity system.

 

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PG&E pleads guilty to 85 counts in 2018 Camp Fire

PG&E Camp Fire Guilty Plea underscores involuntary manslaughter charges as the utility admits sparking Paradise's wildfire; Butte County prosecution, CAL FIRE findings, bankruptcy oversight, victim compensation trust, and safety reforms shape accountability.

 

Key Points

The legal admission by PG&E to 84 involuntary manslaughter counts and unlawfully starting the 2018 Camp Fire.

✅ 84 involuntary manslaughter counts; unlawful ignition admitted.

✅ $3,486,950 fine, $500,000 DA costs; no prison terms.

✅ $13.5B victim trust, Paradise and Butte County payments.

 

California utility Pacific Gas and Electric Company pleaded guilty Tuesday to 84 counts of involuntary manslaughter and one count of unlawfully starting the Camp Fire, the deadliest blaze in the state's history.

Butte County District Attorney Michael L. Ramsey said the "historic moment" should be a signal that corporations will be held responsible for "recklessly endangering" lives.
The 84 people "did not need to die," Ramsey said. He said the deaths were "of the most unimaginable horror, being burned to death."

Before sentencing, survivors will testify Wednesday about the losses of their loved ones, and many have pursued lawsuits against the utility seeking accountability.

No individuals will be sent to prison, Ramsey said.

"This is the first time that PG&E or any major utility has been charged with homicide as the result of a reckless fire. It killed a town," Ramsey said, referring to Paradise, which was annihilated by the blaze.
According to court documents filed in March, the company will be fined "no more than $3,486,950," and it must reimburse the Butte County District Attorney's Office $500,000 for the costs of its investigation into the blaze, and under separate oversight a federal judge ordered dividends to be directed to wildfire risk reduction to prioritize safety.

Among other provisions, PG&E must establish a trust, compensating victims of the 2018 Camp Fire and other wildfires to the tune of $13.5 billion as part of its bankruptcy plan, according to the plea agreement included in a regulatory filing.
It has to pay hundreds of millions to the town of Paradise and Butte County and cooperate with prosecutors' investigation, the plea deal says.
PG&E also waived its right to appeal.

"I have heard the pain and the anguish of victims as they've described the loss they continue to endure, and the wounds that can't be healed," PG&E Corporation CEO and President Bill Johnson said after the plea. "No words from me could ever reduce the magnitude of such devastation or do anything to repair the damage. But I hope that the actions we are taking here today will help bring some measure of peace, including aid through a Wildfire Assistance Program the company announced."

Johnson was in court Tuesday, where Butte County Superior Court Judge Michael Deems read the names of each victim as their photos were shown on a screen, CNN affiliate KTLA reported.
Johnson said the utility would never put profits ahead of safety again. He told the judge that PG&E took responsibility for the devastation "with eyes wide open to what happened and to what must never happen again," KTLA reported.

In March, the utility and the state agreed to bankruptcy terms, which included an overhaul of PG&E's board selection process, financial structure and oversight, with rates expected to stabilize in 2025 as reforms take hold.
According to investigators with the California Department of Forestry and Fire Protection, PG&E was responsible for the devastating Camp Fire.

Electrical lines owned and operated by PG&E started the fire November 8, 2018, CAL Fire said in a news release, after the company acknowledged its power lines may have started two fires that day.

"The tinder dry vegetation and Red Flag conditions consisting of strong winds, low humidity and warm temperatures promoted this fire and caused extreme rates of spread," CAL Fire said.
PG&E had previously said it was "probable" that its equipment started the Camp Fire but that it wasn't conclusive whether its lines ignited a second fire, as CAL Fire alleged.
The power company filed for bankruptcy in January 2019 as it came under pressure from billions of dollars in claims tied to deadly wildfires, and other utilities such as Southern California Edison have faced similar lawsuits.

 

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Mines found at Ukraine's Zaporizhzhia nuclear plant, UN watchdog says

Zaporizhzhia Nuclear Plant Mines reported by IAEA at the Russian-occupied site: anti-personnel devices in a buffer zone, restricted areas; access limits to reactor rooftops and turbine halls heighten nuclear safety and security concerns in Ukraine.

 

Key Points

IAEA reports anti-personnel mines at Russian-held Zaporizhzhia, raising nuclear safety risks in buffer zones.

✅ IAEA observes mines in buffer zone at occupied site

✅ Restricted areas; no roof or turbine hall access granted

✅ Safety systems unaffected, but staff under pressure

 

The United Nations atomic watchdog said it saw anti-personnel mines at the site of Ukraine's Zaporizhzhia nuclear power plant which is occupied by Russian forces.

Europe's largest nuclear facility fell to Russian forces shortly after the invasion of Ukraine in February last year, as Moscow later sought to build power lines to reactivate it amid ongoing control of the area. Kyiv and Moscow have since accused each other of planning an incident at the site.

On July 23 International Atomic Energy Agency (IAEA) experts "saw some mines located in a buffer zone between the site's internal and external perimeter barriers," agency chief Rafael Grossi said in a statement on Monday.

The statement did not say how many mines the team had seen.

The devices were in "restricted areas" that operating plant personnel cannot access, Mr Grossi said, adding the IAEA's initial assessment was that any detonation "should not affect the site's nuclear safety and security systems".

Laying explosives at the site was "inconsistent with the IAEA safety standards and nuclear security guidance" and, amid controversial proposals on Ukraine's nuclear plants that have circulated internationally, created additional psychological pressure on staff, he added.

Ukrainians in Nikopol are out of water and within Russia's firing line. But Zaporizhzhia nuclear power plant could pose the biggest threat, even as Ukraine has resumed electricity exports to regional grids.

Last week the IAEA said its experts had carried out inspections at the plant, without "observing" the presence of any mines, although they had not been given access to the rooftops of the reactor buildings, while a possible agreement to curb attacks on plants was being discussed.

The IAEA had still not been given access to the roofs of the reactor buildings and their turbine halls, its latest statement said, even as a proposal to control Ukraine's nuclear plants drew scrutiny.

After falling into Russian hands, Europe's biggest power plant was targeted by gunfire and has been severed from the grid several times, raising nuclear risk warnings from the IAEA and others.

The six reactor units, which before the war produced around a fifth of Ukraine's electricity, have been shut down for months, prompting interest in wind power development as a harder-to-disrupt source.

 

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