Meter deals continue to energize utilities

BC Hydro Site C and Clean Energy Policy shapes B.C.'s power mix, affecting run-of-river hydro, net metering for rooftop solar, independent power producers, and surplus capacity forecasts tied to LNG Canada demand.

Key Points

BC Hydro's strategy centers on Site C, limiting new run-of-river projects and tightening net metering amid surplus power

✅ Site C adds long-term capacity with lower projected rates.

✅ Run-of-river IPP growth paused amid surplus forecasts.

✅ Net metering limits deter oversized rooftop solar.

Innergex Renewable Energy Inc. is celebrating the official commissioning today of what may be the last large run-of-river hydro project in B.C. for years to come.

The project – two new generating stations on the Upper Lillooet River and Boulder Creek in the Pemberton Valley – actually began producing power in 2017, but the official commissioning was delayed until Friday September 14.

Innergex, which earlier this year bought out Vancouver’s Alterra Power, invested $491 million in the two run-of-river hydro-electric projects, which have a generating capacity of 106 megawatts of power. The project has the generating capacity to power 39,000 homes.

The commissioning happened to coincide with an address by BC Hydro CEO Chris O’Riley to the Greater Vancouver Board of Trade Friday, in which he provided an update on the progress of the $10.7-billion Site C dam project.

That project has put an end, for the foreseeable future, of any major new run-of-river projects like the Innergex project in Pemberton.

BC Hydro expects the new dam to produce a surplus of power when it is commissioned in November 2024, so no new clean energy power calls are expected for years to come.

Independent power producers aren’t the only ones who have seen a decline in opportunities to make money in B.C. providing renewable power, as the Siwash Creek project shows. So will homeowners who over-build their own solar power systems, in an attempt to make money from power sales.

There are about 1,300 homeowners in B.C. with rooftop solar systems, and when they produce surplus power, they can sell it to BC Hydro.

BC Hydro is amending the net metering program to discourage homeowners from over-building. In some cases, some howeowners have been generating 40% to 50% more power than they need.

“We were getting installations that were massively over-sized for their load, and selling this big quantity of power to us,” O’Riley said. “And that was never the idea of the program.”

Going forward, BC Hydro plans to place limits on how much power a homeowner can sell to BC Hydro.

BC Hydro has been criticized for building Site C when the demand for power has been generally flat, and reliance on out-of-province electricity has drawn scrutiny. But O’Riley said the dam isn’t being built for today’s generation, but the next.

“We’re not building Site C for today,” he said. “We have an energy surplus for the short term. We’re not even building it for 2024. We’re building it for the next 100 years.”

O’Riley acknowledged Site C dam has been a contentious and “extremely challenging” project. It has faced numerous court challenges, a late-stage review by the BC Utilities Commission, cost overruns, geotechnical problems and a dispute with the main contractors.

In a separate case, the province was ordered to pay $10 million over the denial of a Squamish power project, highlighting broader legal risk.

But those issues have been resolved, O’Riley said, and the project is back on track with a new construction schedule.

“As we move forward, we have a responsibility to deliver a project on time and against the new revised budget, and I’m confident the changes we’ve made are set up to do that,” O’Riley said.

Currently, there are about 3,300 workers employed on the dam project.

Despite criticisms that BC Hydro is investing in a legacy mega-project at a time when cost of wind and solar have been falling, O’Riley insisted that Site C was the best and lowest cost option.

“First, it’s the lowest cost option,” he said. “We expect over the first 20 years of Site C’s operating life, our customers will see rates 7% to 10% below what it would otherwise be using the alternatives.”

BC Hydro missed a critical window to divert the Peace River, something that can only be done in September, during lower river flows. That added a full year’s delay to the project.

O’Riley said BC Hydro had built in a one-year contingency into the project, so he expects the project can still be completed by 2024 – the original in-service target date. But the delay will add more than $2 billion to the last budget estimate, boosting the estimated capital cost from $8.3 billion to $10.7 billion.

Meeting the 2024 in-service target date could be important, if Royal Dutch Shell and its consortium partners make a final investment decision this year on the $40 billion LNG Canada project.

That project also has a completion target date of 2024, and would be a major new industrial customer with a substantial power draw for operations.

“If they make a decision to go forward, they will be a very big customer of BC Hydro,” O’Riley told Business in Vancouver. “They would be in our top three or four biggest customers.”

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Ofgem UK Electricity Interconnectors will channel subsea cables, linking Europe, enabling energy import/export, integrating offshore wind via multiple-purpose interconnectors, boosting grid stability, capacity, and investment under National Grid analysis to 2030 targets.

Key Points

Subsea links between the UK and Europe that trade power, integrate offshore wind, and reinforce grid capacity.

✅ Two new subsea interconnector bids open in 2025

✅ Pilot for multiple-purpose links to offshore wind clusters

✅ National Grid to assess optimal routes, capacity, and locations

Ofgem has opened bids to build two electricity interconnectors between the UK and continental Europe as part of the broader UK grid transformation now underway.

The energy regulator said this would “bring forward billions of pounds of investment” in the subsea cables, such as the Lake Erie Connector, which can import cheaper energy when needed and export surplus power from the UK when it is available.

Developers will be invited to submit bids to build the interconnectors next year. Ofgem will additionally run a pilot scheme for ‘multiple-purpose interconnectors’, which are used to link clusters of offshore wind farms and related innovations like an offshore vessel chargepoint to an interconnector.

This forms part of the UK Government drive to more than double capacity by 2030, and to manage rising electric-vehicle demand, as discussed in EV grid impacts, in support of its target of quadrupling offshore wind capacity by the same date.

Interconnectors provide some 7 per cent of UK electricity demand. The UK so far has seven electricity interconnectors linked to Ireland, France, Belgium, the Netherlands and Norway, while projects like the Ireland-France connection illustrate broader European grid integration.

Balfour Beatty won a £90m contract for onshore civil engineering works on the Viking Link Norway interconnector, which is due to come into operation in 2023, while London Gateway's all-electric berth highlights related port electrification.

It said that interconnector developers have in the past been allowed to propose their preferred design, connection location and sea route to the connecting country. Ofgem has now said it may decide to consider only those projects that meet its requirements based on an analysis of location and capacity needs by National Grid.

Ofgem has not specified that the new interconnectors must link to any specific place or country, but may do so later, as priorities like the Cyprus electricity highway illustrate emerging directions.

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Germany 2025 Energy Costs forecast electricity and heating price trends amid gas volatility, renewables expansion, grid upgrades, and policy subsidies, highlighting impacts on households, industries, efficiency measures, and the Energiewende transition dynamics.

Key Points

Electricity stabilizes, gas-driven heating stays high; renewables, subsidies, and efficiency measures moderate costs.

✅ Power prices stabilize above pre-crisis levels

✅ Gas volatility keeps heating bills elevated

✅ Subsidies and efficiency upgrades offset some costs

As Germany moves into 2025, the country is facing significant shifts in heating and electricity costs. With a variety of factors influencing energy prices, including geopolitical tensions, government policies, and the ongoing transition to renewable energy sources, consumers and businesses alike are bracing for potential changes in their energy bills. In this article, we will explore how heating and electricity costs are expected to evolve in Germany in the coming year and what that means for households and industries.

Energy Price Trends in Germany

In recent years, energy prices in Germany have experienced notable fluctuations, particularly due to the aftermath of the global energy crisis, which was exacerbated by the Russian invasion of Ukraine. This geopolitical shift disrupted gas supplies, which in turn affected electricity prices and strained local utilities across the country. Although the German government introduced measures to mitigate some of the price increases, many households have still felt the strain of higher energy costs.

For 2024, experts predict that electricity prices will likely stabilize but remain higher than pre-crisis levels. While electricity prices nearly doubled in 2022, they have gradually started to decline, and the market has adjusted to the new realities of energy supply and demand. Despite this, the cost of electricity is expected to stay elevated as Germany continues to phase out coal and nuclear energy while ramping up the use of renewable sources, which often require significant infrastructure investments.

Heating Costs: A Mixed Outlook

Heating costs in Germany are heavily influenced by natural gas prices, which have been volatile since the onset of the energy crisis. Gas prices, although lower than the peak levels seen in 2022, are still considerably higher than in the years before. This means that households relying on gas heating can expect to pay more for warmth in 2024 compared to previous years.

The government has implemented measures to cushion the impact of these increased costs, such as subsidies for vulnerable households and efforts to support energy efficiency upgrades. Despite these efforts, consumers will still feel the pinch, particularly in homes that use older, less efficient heating systems. The transition to more sustainable heating solutions, such as heat pumps, remains a key goal for the German government. However, the upfront cost of such systems can be a barrier for many households.

The Role of Renewable Energy and the Green Transition

Germany has set ambitious goals for its energy transition, known as the "Energiewende," which aims to reduce reliance on fossil fuels and increase the share of renewable energy sources in the national grid. In 2024, Germany is expected to see further increases in renewable energy generation, particularly from wind and solar power. While this transition is essential for reducing carbon emissions and improving long-term energy security, the shift comes with its own challenges already documented in EU electricity market trends reports.

One of the main factors influencing electricity costs in the short term is the intermittency of renewable energy sources. Wind and solar power are not always available when demand peaks, requiring backup power generation from fossil fuels or stored energy. Additionally, the infrastructure needed to accommodate a higher share of renewables, including grid upgrades and energy storage solutions, is costly and will likely contribute to rising electricity prices in the near term.

On a positive note, Germany's growing investment in renewable energy is expected to make the country less reliant on imported fossil fuels, particularly natural gas, which has been a major source of price volatility. Over time, as the share of renewables in the energy mix grows, the energy system should become more stable and less susceptible to geopolitical shocks, which could lead to more predictable and potentially lower energy costs in the long run.

Government Interventions and Subsidies

To help ease the burden on consumers, the German government has continued to implement various measures to support households and businesses. One of the key programs is the reduction in VAT (Value Added Tax) on electricity, which has been extended in some regions. This measure is designed to make electricity more affordable for all households, particularly those on fixed incomes facing EU energy inflation pressures that have hit the poorest hardest.

Moreover, the government has been providing financial incentives for households and businesses to invest in energy-efficient technologies, such as insulation and energy-saving heating systems, complementing the earlier 200 billion euro energy shield announced to buffer surging prices. These incentives are intended to reduce overall energy consumption, which could offset some of the rising costs.

The outlook for heating and electricity costs in Germany for 2024 is mixed, even as energy demand hit a historic low amid economic stagnation. While some relief from the extreme price spikes of 2022 may be felt, energy costs will still be higher than they were in previous years. Households relying on gas heating will likely see continued elevated costs, although those who invest in energy-efficient solutions or renewable heating technologies may be able to offset some of the increases. Similarly, electricity prices are expected to stabilize but remain high due to the country’s ongoing transition to renewable energy sources.

While the green transition is crucial for long-term sustainability, consumers must be prepared for potentially higher energy costs in the short term. Government subsidies and incentives will help alleviate some of the financial pressure, but households should consider strategies to reduce energy consumption, such as investing in more efficient heating systems or adopting renewable energy solutions like solar panels.

As Germany navigates these changes, the country’s energy future will undoubtedly be shaped by a delicate balance between environmental goals and the economic realities of transitioning to a greener energy system.

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Switch-On Project Electric Trucks accelerate California freight decarbonization, deploying Volvo VNR Electric rigs with high-capacity charging infrastructure, zero-emissions operations, and connected safety features to cut greenhouse gases and improve urban air quality.

Key Points

A California program deploying Volvo VNR Electric trucks and charging to decarbonize freight and improve air quality.

✅ 70 Volvo VNR Electric trucks for regional logistics

✅ Strategic high-capacity charging for heavy-duty fleets

✅ Lower TCO via fuel savings and reduced maintenance

In a significant step toward sustainable transportation, the Switch-On project is bringing 70 Volvo VNR Electric trucks to California. This initiative aims to bolster the state's efforts to reduce emissions and transition to greener logistics solutions. The arrival of these electric vehicles marks an important milestone in California's commitment to combating climate change and improving air quality.

The Switch-On Project: Overview and Goals

The Switch-On project is a collaborative effort designed to enhance electric truck adoption in California. It focuses on developing the necessary infrastructure and technology to support electric vehicles (EVs) in the freight and logistics sectors, building on recent nonprofit investments at California ports. The project not only seeks to increase the availability of electric trucks but also aims to demonstrate their effectiveness in real-world applications.

California has set ambitious goals for reducing greenhouse gas emissions, particularly from the transportation sector, which is one of the largest contributors to air pollution. By introducing electric trucks into freight operations, the state aims to significantly cut emissions, improve public health, and pave the way for a more sustainable future.

The Volvo VNR Electric Trucks

The Volvo VNR Electric trucks are specifically designed for regional distribution and urban transport, aligning with Volvo's broader electric lineup as the company expands offerings, making them ideal for the needs of California’s freight industry. With a range of approximately 250 miles on a single charge, these trucks can efficiently handle most regional routes. Equipped with advanced technology, including regenerative braking and connectivity features, the VNR Electric models enhance operational efficiency and safety.

These trucks not only provide a cleaner alternative to traditional diesel vehicles but also promise lower operational costs over time. With reduced fuel expenses and lower maintenance needs, and emerging vehicle-to-grid pilots that can create new value streams, businesses can benefit from significant savings while contributing to environmental sustainability.

Infrastructure Development

A crucial aspect of the Switch-On project is the development of charging infrastructure to support the new fleet of electric trucks. The project partners are working on installing high-capacity charging stations strategically located throughout California while addressing utility planning challenges that large fleets will pose to the power system. This infrastructure is essential to ensure that electric trucks can be charged efficiently, minimizing downtime and maximizing productivity.

The charging stations are designed to accommodate the specific needs of heavy-duty vehicles, and corridor models like BC's Electric Highway provide useful precedents for network design, allowing for rapid charging that aligns with operational schedules. This development not only supports the new fleet but also encourages other logistics companies to consider electric trucks as a viable option for their operations.

Benefits to California

The introduction of 70 Volvo VNR Electric trucks will have several positive impacts on California. Firstly, it will significantly reduce greenhouse gas emissions from the freight sector, contributing to the state’s ambitious climate goals even as grid expansion will be needed to support widespread electrification across sectors. The transition to electric trucks is expected to improve air quality, particularly in urban areas that struggle with high pollution levels.

Moreover, the project serves as a model for other regions considering similar initiatives. By showcasing the practicality and benefits of electric trucks, California hopes to inspire widespread adoption across the nation. As the market for electric vehicles continues to grow, this project can play a pivotal role in accelerating the transition to sustainable transportation solutions.

Industry and Community Reactions

The arrival of the Volvo VNR Electric trucks has been met with enthusiasm from both industry stakeholders and community members. Logistics companies are excited about the opportunity to reduce their carbon footprints and operational costs. Meanwhile, environmental advocates applaud the project as a crucial step toward cleaner air and healthier communities.

California’s commitment to sustainable transportation has positioned it as a leader in the shift to electric vehicles amid an ongoing biofuels vs. EVs debate over the best path forward, setting an example for other states and countries.

Conclusion

The Switch-On project represents a major advancement in California's efforts to transition to electric transportation. With the deployment of 70 Volvo VNR Electric trucks, the state is not only taking a significant step toward reducing emissions but also demonstrating the feasibility of electric logistics solutions.

As infrastructure develops and more electric trucks hit the roads, California is paving the way for a greener, more sustainable future in transportation. The success of this project could have far-reaching implications, influencing policies and practices in the broader freight industry and beyond.

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Juba Power Distribution Expansion accelerates grid rehabilitation in South Sudan, adding concrete poles, medium and low voltage networks, and LED street lighting, funded by AfDB and executed by Power China for reliable, affordable electricity.

Key Points

A project to upgrade Juba's grid with concrete poles, MV-LV networks, and LED lighting for reliable, affordable power.

✅ 13,350 concrete poles produced locally for network rollout

✅ Medium and low voltage network rehabilitation and expansion

✅ LED street lighting and customer care improvements funded by AfDB

The South Sudan government has launched a factory producing concrete poles that will facilitate an ambitious project done by a Chinese company to rehabilitate and expand the Power Distribution System in Juba, its capital.

The Minister of Dams and Electricity, Dhieu Mathok, said that the factory, rented by Power China, will produce some 13,350 poles for the electricity distribution in the capital and other states.

"The main objective of this project is to increase the supply capacity and reliability of the power distribution system in Juba. Access to the grid will replace the use of generators by the population, allow supply of energy at more affordable price and, hence contribute toward economic growth and poverty eradication in South Sudan," Mathok said during the inauguration of the plant along the Yei road in Juba.

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He disclosed that it will help solve the problem associated with non-availability of concrete poles for the project and to mitigate the risk of importing poles from other countries.

"This factory will create positive impact on the construction of the national grid in South Sudan. It is owned by South Sudanese business people but currently it has been taken over by Power China for a brief period of one year," he said.

South Sudan is largely generator driven economy with continued electricity blackout, and across the continent initiatives like Cape Town's municipal power build-out illustrate alternative approaches, in the wake of the collapse of the generator power plant operated by the South Sudan Electricity Corporation (SSEC) in 2013.

Wang Cun, an official with Power China said they got the contract to build the electricity project in June 2016 and that they will continue to support South Sudanese staff with skills and knowledge, drawing on advances such as PEM green hydrogen R&D that point to future low-carbon options, and also work with the government on several major power projects.

"We have achieved much from these projects and we also suffered much from the instability and continuous conflicts all these years, but we confirm and believe the year of 2018 will be a year of peace and development in South Sudan," Wang said, adding that the company has been operating in South Sudan since 2009.

He disclosed that Power China has conducted several projects before South Sudan won independence from Sudan in 2011 such as the peace road project from Renk to Malakal, Maridi water plant and Malakal municipal road projects.

Wang said they will immediately reorganize all necessary resources to increase post-production capacity and immediately shall commence the erection of these poles to all corners of Juba city and start the distribution.

"We shall do as we did before to recruit more local technicians, engineers and laborers during the construction period, so that they are there in place for similar projects in the near future. We shall make more efforts to improve these local staffs' working environment and to realize sustainable development of Power China and Sino-hydro in South Sudan," said Wang.

Power China has been committing itself in the economic development of South Sudan and has signed eight commercial contracts with the government of South Sudan since independence like the Juba-hydro power project and the Tharjiath thermal power plant project, while in China projects such as the Lawa hydropower station demonstrate ongoing hydropower expertise that can inform regional work.

Liu Xiaodong, the Charge d'Affaires at the Chinese embassy in South Sudan, said Power China has been working very hard in the engineering and procurement in the earlier stage of the project, and as China expands energy ties such as nuclear cooperation with Cambodia that demonstrate broader engagement, also thanked the South Sudan government and the African Development Bank for their strong support.

Liu added upon completion Juba will have an upgraded power distribution system with 2,250 lighting points along the main roads in the capital and lamps will be LED ones.

The project falls under the Juba Power Distribution System Rehabilitation and Expansion Project, which was funded by the African Development Bank (AfDB) and has undertaken an AfDB review of a Senegal power plant to inform regional energy decisions.

It comprises of five different lots like Rehabilitation of Diesel plant substation, Rehabilitation and Expansion of medium voltage network, low voltage network, and Rehabilitation and Expansion of street lighting and improvement of customer care.

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California Electricity Rate Hikes strain households as CPUC weighs fixed charges, utility profit caps, and stricter oversight. Wildfire mitigation, transmission upgrades, and aging grid costs push bills higher amid renewable integration and consumer protection debates.

Key Points

California power rates are rising from wildfire mitigation, transmission costs, and grid upgrades under CPUC review.

✅ CPUC mulls fixed charges to stabilize bills and rate design.

✅ Advocates push profit caps; utilities cite investment needs.

✅ Stronger oversight sought to curb waste and boost transparency.

California residents and consumer groups are demanding relief as their electricity bills continue to climb, putting increasing pressure on state regulators to intervene.  A recent op-ed in the San Francisco Chronicle highlights the growing frustration, emphasizing that California already has some of the highest electricity rates in the country, as coverage on why prices are soaring underscores, and these costs are only getting more burdensome.

Factors Driving High Bills

The rising electricity bills are attributed to several factors:

• Wildfire Mitigation and Liability: Utility companies are investing heavily in wildfire prevention measures, such as vegetation management and infrastructure hardening. The costs of these initiatives, along with the increasing financial liabilities associated with wildfire risk, are being passed on to consumers.
• Transmission Costs: California's vast geography and move towards renewable energy sources necessitate significant investments in transmission lines to deliver electricity from remote locations. These infrastructure costs also contribute to higher bills.
• Aging Infrastructure: California's electricity grid is aging and requires upgrades and maintenance, and the expenses associated with these efforts are reflected in consumer rates.

Proposed Solutions and Debates

Consumer advocates and some lawmakers are calling for various actions to address the issue, including a potential revamp of electricity rates to clean the grid:

• Fixed Charge Proposal: The California Public Utilities Commission (CPUC) is considering a proposal to introduce an income-based fixed charge on electricity bills. This change aims to make rates more predictable and encourage investment in renewable energy sources. However, opponents argue that it could disproportionately impact low-income households and discourage conservation.
• Utility Profit Caps: Some advocate for capping utility companies' profits. They believe excessive profits should be returned to customers in the form of lower rates. However, utility companies counter that they need a certain level of profit to invest in infrastructure and maintain a reliable grid.
• Increased Oversight: Consumer groups are calling for stricter oversight of utility company spending, and legislators are preparing to crack down on utility spending through upcoming votes as well. They demand transparency and want to ensure that funds collected from customers are being used for necessary investments and not for lobbying or excessive executive compensation.

Comparisons and National Implications

Similar concerns about rising utility bills are emerging in other parts of the country as more states transition to renewable energy and invest in infrastructure upgrades.

A report by the Energy Information Administration (EIA) shows that average residential electricity rates across the country have been on the rise for the past decade. While California currently ranks amongst the highest, major changes to electric bills are being debated, and other states are following suit, demonstrating the nationwide challenge of balancing affordability with necessary investments.

Uncertain Future

The California Public Utilities Commission is reviewing the fixed charge proposal and is expected to make a decision later this year, with income-based flat-fee utility bills moving closer in the process. The outcome of this decision and potential additional regulatory changes will have significant ramifications for California residents, and some lawmakers plan to overturn income-based charges if adopted, which could set a precedent for how other states handle the rising costs associated with the energy transition.

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