Collaboration between Countries in The North Sea Region for More Wind Farms

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Nine countries in the North Sea region and the European Commission are to enhance their collaboration in order to better utilise the potential of the North Sea as an area for wind farms. Alongside ensuring a secure and affordable energy supply, this will enable a significant contribution to be made to the goal of reducing CO2 emissions on a European scale by 80 to 95 by 2050.

During a meeting in Luxembourg on Monday, the countries involved – the Netherlands, Germany, Belgium, Luxembourg, France, Denmark, Ireland, Sweden and Norway – agreed to collaborate in terms of planning and constructing offshore wind farms. While collaboration will reduce building costs, it also involves looking at whether national regulations for grid management, subsidies and permits could be better harmonised. Additionally, research will be conducted into how to better coordinate national requirements for the offshore wind sector in terms of safety or the environment.

This process will explicitly involve interested parties such as social organisations, knowledge institutions, nature organisations, network managers and the business community.

Minister Henk Kamp explains, 'Collaborating more effectively will enable us to construct wind farms in the North Sea at a lower cost. The coming years will see the construction of several big wind farms in the North Sea, including five big farms in the Netherlands. This will contribute to an overall increase in the proportion of renewable energy in Europe, rising to 20 in 2020. Despite the scale of construction, there is still a great deal of space available in the North Sea. In collaboration with other countries, we are investigating what more can be done post 2020 and in the run-up to and period after 2030, as we wholly expect that the amount of wind energy will continue to show substantial growth in Europe.

One possibility is that future wind farms located close to each other in the various neighbouring countries will be connected via one single electricity cable from the sea to the land instead of a separate cable for each country.

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Gaza’s sole electricity plant shuts down after running out of fuel

Gaza Power Plant Shutdown underscores the Gaza Strip's fuel ban, Israeli blockade, and electricity crisis, cutting megawatts, disrupting hospitals and quarantine centers, and exposing fragile energy supply, GEDCO warnings, and public health risks.

 

Key Points

An abrupt halt of Gaza's sole power plant due to a fuel ban, deepening the electricity crisis and straining hospitals.

✅ Israeli fuel ban halts Gaza's only power plant

✅ Available supply drops far below 500 MW demand

✅ Hospitals and COVID-19 quarantine centers at risk

 

The only electricity plant in the Gaza Strip shut down yesterday after running out of fuel banned from entering the besieged enclave by the Israeli occupation, Gaza Electricity Distribution Company announced.

“The power plant has shut down completely,” the company said in a brief statement, as disruptions like China power cuts reveal broader grid vulnerabilities.

Israel banned fuel imports into Gaza as part of punitive measures over the launching incendiary balloons from the Strip.

On Sunday, GEDCO warned that the industrial fuel for the electricity plant would run out, mirroring Lebanon's fuel shortage challenges, on Tuesday morning.

Since 2007, the Gaza Strip suffered under a crippling Israeli blockade that has deprived its roughly two million inhabitants of many vital commodities, including food, fuel and medicine, and regional strains such as Iraq's summer electricity needs highlight broader power insecurity.

As a result, the coastal enclave has been reeling from an electricity crisis, similar to when the National Grid warned of short supply in other contexts.

The Gaza Strip needs some 500 megawatts of electricity – of which only 180 megawatts are currently available – to meet the needs of its population, while Iran supplies about 40% of Iraq's electricity in the region.

Spokesman of the Ministry of Health in Gaza, Ashraf Al Qidra, said the lack of electricity undermines offering health services across Gaza’s hospitals.

He also warned that the lack of electricity would affect the quarantine centres used for coronavirus patients, reinforcing the need to keep electricity options open during the pandemic.

Gaza currently has three sources of electricity: Israel, which provides 120 megawatts and is advancing coal use reduction measures; Egypt, which supplies 32 megawatts; and the Strip’s sole power plant, which generates between 40 and 60 megawatts.

 

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Is The Global Energy Transition On Track?

Global Decarbonization Strategies align renewable energy, electrification, clean air policies, IMO sulfur cap, LNG fuels, and the EU 2050 roadmap to cut carbon intensity and meet Paris Agreement targets via EVs and efficiency.

 

Key Points

Frameworks that cut emissions via renewables, EVs, efficiency, cleaner marine fuels, and EU policy roadmaps.

✅ Renewables scale as wind and solar outcompete new coal and gas.

✅ Electrification of transport grows as EV costs fall and charging expands.

✅ IMO 2020 sulfur cap and LNG shift cut shipping emissions and particulates.

 

Are we doing enough to save the planet? Silly question. The latest prognosis from the United Nations’ Intergovernmental Panel on Climate Change made for gloomy reading. Fundamental to the Paris Agreement is the target of keeping global average temperatures from rising beyond 2°C. The UN argues that radical measures are needed, and investment incentives for clean electricity are seen as critical by many leaders to accelerate progress to meet that target.

Renewable power and electrification of transport are the pillars of decarbonization. It’s well underway in renewables - the collapse in costs make wind and solar generation competitive with new build coal and gas.

Renewables’ share of the global power market will triple by 2040 from its current level of 6% according to our forecasts.

The consumption side is slower, awaiting technological breakthrough and informed by efforts in countries such as New Zealand’s electricity transition to replace fossil fuels with electricity. The lower battery costs needed for electric vehicles (EVs) to compete head on and displace internal combustion engine (ICE)  cars are some years away. These forces only start to have a significant impact on global carbon intensity in the 2030s. Our forecasts fall well short of the 2°C target, as does the IEA’s base case scenario.

Yet we can’t just wait for new technology to come to the rescue. There are encouraging signs that society sees the need to deal with a deteriorating environment. Three areas of focus came out in discussion during Wood Mackenzie’s London Energy Forum - unrelated, different in scope and scale, each pointing the way forward.

First, clean air in cities.  China has shown how to clean up a local environment quickly. The government reacted to poor air quality in Beijing and other major cities by closing older coal power plants and forcing energy intensive industry and the residential sector to shift away from coal. The country’s return on investment will include a substantial future health care dividend.

European cities are introducing restrictions on diesel cars to improve air quality. London’s 2017 “toxicity charge” is a precursor of an Ultra-Low Emission Zone in 2019, and aligns with UK net-zero policy changes that affect transport planning, to be extended across much of the city by 2020. Paris wants to ban diesel cars from the city centre by 2025 and ICE vehicles by 2030. Barcelona, Madrid, Hamburg and Stuttgart are hatching similar plans.

 

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Second, desulphurisation of global shipping. High sulphur fuel oil (HSFO) meets around 3.5 million barrels per day (b/d) of the total marine market of 5 million b/d. A maximum of 3.5% sulphur content is allowed currently. The International Maritime Organisation (IMO) implements a 0.5% limit on all shipping in 2020, dramatically reducing the release of sulphur oxides into the atmosphere.

Some ships will switch to very low sulphur fuel oil, of which only around 1.4 million b/d will be available in 2020. Others will have to choose between investing in scrubbers or buying premium-priced low sulphur marine gas oil.

Longer-term, lower carbon-intensity gas is a winner as liquefied natural gas becomes fuel of choice for many newbuilds. Marine LNG demand climbs from near zero to 50 million tonnes per annum (tpa) by 2040 on our forecasts, behind only China, India and Japan as a demand centre. LNG will displace over 1 million b/d of oil demand in shipping by 2040.

Third, Europe’s radical decarbonisation plans. Already in the vanguard of emissions reductions policy, the European Commission is proposing to reduce carbon emissions for new cars and vans by 30% by 2030 versus 2020. The targets come with incentives for car manufacturers linked to the uptake of EVs.

The 2050 roadmap, presently at the concept stage, envisages a far more demanding regime, with EU electricity plans for 2050 implying a much larger power system. The mooted 80% reduction in emissions compared with 1990 will embrace all sectors. Power and transport are already moving in this direction, but the legacy fuel mix in many other sectors will be disrupted, too.

Near zero-energy buildings and homes might be possible with energy efficiency improvements, renewables and heat pumps. Electrification, recycling and bioenergy could reduce fossil fuel use in energy intensive sectors like steel and aluminium, and Europe’s oil majors going electric illustrates how incumbents are adapting. Some sectors will cite the risk decarbonisation poses to Europe’s global competitiveness. If change is to come, industry will need to build new partnerships with society to meet these targets.

The 2050 roadmap signals the ambition and will be game changing for Europe if it is adopted. It would provide a template for a global roll out that would go a long way toward meeting UN’s concerns.

 

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Carbon capture: How can we remove CO2 from the atmosphere?

CO2 Removal Technologies address climate change via negative emissions, including carbon capture, reforestation, soil carbon, biochar, BECCS, DAC, and mineralization, helping meet Paris Agreement targets while managing costs, land use, and infrastructure demands.

 

Key Points

Methods to extract or sequester atmospheric CO2, combining natural and engineered approaches to limit warming.

✅ Includes reforestation, soil carbon, biochar, BECCS, DAC, mineralization

✅ Balances climate goals with costs, land, energy, and infrastructure

✅ Key to Paris Agreement targets under 1.5-2.0 °C warming

 

The world is, on average, 1.1 degrees Celsius warmer today than it was in 1850. If this trend continues, our planet will be 2 – 3 degrees hotter by the end of this century, according to the Intergovernmental Panel on Climate Change (IPCC).

The main reason for this temperature rise is higher levels of atmospheric carbon dioxide, which cause the atmosphere to trap heat radiating from the Earth into space. Since 1850, the proportion of CO2 in the air has increased, with record greenhouse gas concentrations documented, from 0.029% to 0.041% (288 ppm to 414 ppm).

This is directly related to the burning of coal, oil and gas, which were created from forests, plankton and plants over millions of years. Back then, they stored CO2 and kept it out of the atmosphere, but as fossil fuels are burned, that CO2 is released. Other contributing factors include industrialized agriculture and slash-and-burn land clearing techniques, and emissions from SF6 in electrical equipment are also concerning today.

Over the past 50 years, more than 1200 billion tons of CO2 have been emitted into the planet's atmosphere — 36.6 billion tons in 2018 alone, though global emissions flatlined in 2019 before rising again. As a result, the global average temperature has risen by 0.8 degrees in just half a century.


Atmospheric CO2 should remain at a minimum
In 2015, the world came together to sign the Paris Climate Agreement which set the goal of limiting global temperature rise to well below 2 degrees — 1.5 degrees, if possible.

The agreement limits the amount of CO2 that can be released into the atmosphere, providing a benchmark for the global energy transition now underway. According to the IPCC, if a maximum of around 300 billion tons were emitted, there would be a 50% chance of limiting global temperature rise to 1.5 degrees. If CO2 emissions remain the same, however, the CO2 'budget' would be used up in just seven years.

According to the IPCC's report on the 1.5 degree target, negative emissions are also necessary to achieve the climate targets.


Using reforestation to remove CO2
One planned measure to stop too much CO2 from being released into the atmosphere is reforestation. According to studies, 3.6 billion tons of CO2 — around 10% of current CO2 emissions — could be saved every year during the growth phase. However, a study by researchers at the Swiss Federal Institute of Technology, ETH Zurich, stresses that achieving this would require the use of land areas equivalent in size to the entire US.

Young trees at a reforestation project in Africa (picture-alliance/OKAPIA KG, Germany)
Reforestation has potential to tackle the climate crisis by capturing CO2. But it would require a large amount of space


More humus in the soil
Humus in the soil stores a lot of carbon. But this is being released through the industrialization of agriculture. The amount of humus in the soil can be increased by using catch crops and plants with deep roots as well as by working harvest remnants back into the ground and avoiding deep plowing. According to a study by the German Institute for International and Security Affairs (SWP) on using targeted CO2 extraction as a part of EU climate policy, between two and five billion tons of CO2 could be saved with a global build-up of humus reserves.


Biochar shows promise
Some scientists see biochar as a promising technology for keeping CO2 out of the atmosphere. Biochar is created when organic material is heated and pressurized in a zero or very low-oxygen environment. In powdered form, the biochar is then spread on arable land where it acts as a fertilizer. This also increases the amount of carbon content in the soil. According to the same study from the SWP, global application of this technology could save between 0.5 and two billion tons of CO2 every year.


Storing CO2 in the ground
Storing CO2 deep in the Earth is already well-known and practiced on Norway's oil fields, for example. However, the process is still controversial, as storing CO2 underground can lead to earthquakes and leakage in the long-term. A different method is currently being practiced in Iceland, in which CO2 is sequestered into porous basalt rock to be mineralized into stone. Both methods still require more research, however, with new DOE funding supporting carbon capture, utilization, and storage.

Capturing CO2 to be held underground is done by using chemical processes which effectively extract the gas from the ambient air, and some researchers are exploring CO2-to-electricity concepts for utilization. This method is known as direct air capture (DAC) and is already practiced in other parts of Europe.  As there is no limit to the amount of CO2 that can be captured, it is considered to have great potential. However, the main disadvantage is the cost — currently around €550 ($650) per ton. Some scientists believe that mass production of DAC systems could bring prices down to €50 per ton by 2050. It is already considered a key technology for future climate protection.

The inside of a carbon capture facility in the Netherlands (RWE AG)
Carbon capture facilities are still very expensive and take up a huge amount of space

Another way of extracting CO2 from the air is via biomass. Plants grow and are burned in a power plant to produce electricity. CO2 is then extracted from the exhaust gas of the power plant and stored deep in the Earth, with new U.S. power plant rules poised to test such carbon capture approaches.

The big problem with this technology, known as bio-energy carbon capture and storage (BECCS) is the huge amount of space required. According to Felix Creutzig from the Mercator Institute on Global Commons and Climate Change (MCC) in Berlin, it will therefore only play "a minor role" in CO2 removal technologies.


CO2 bound by rock minerals
In this process, carbonate and silicate rocks are mined, ground and scattered on agricultural land or on the surface water of the ocean, where they collect CO2 over a period of years. According to researchers, by the middle of this century it would be possible to capture two to four billion tons of CO2 every year using this technique. The main challenges are primarily the quantities of stone required, and building the necessary infrastructure. Concrete plans have not yet been researched.


Not an option: Fertilizing the sea with iron
The idea is use iron to fertilize the ocean, thereby increasing its nuturient content, which would allow plankton to grow stronger and capture more CO2. However, both the process and possible side effects are very controversial. "This is rarely treated as a serious option in research," concludes SWP study authors Oliver Geden and Felix Schenuit.

 

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Ontario Sets Electricity Rates at Off-Peak Price until February 7

Ontario Off-Peak Electricity Rate offers 8.2 cents per kWh for 24 hours, supporting Time-of-Use and Tiered Regulated Price Plan customers, including residential, small business, and farms, under Ontario Energy Board guidelines during temporary relief.

 

Key Points

A temporary 8.2 cents per kWh all-day price for RPP customers, covering TOU and Tiered users across Ontario.

✅ Applies 24 hours daily at 8.2 cents per kWh for 21 days

✅ Covers residential, small business, and farm RPP customers

✅ Valid for TOU and Tiered plans set by the Ontario Energy Board

 

 The Ontario government has announced electricity relief with electricity prices set at the off-peak price of 8.2 cents per kilowatt-hour, 24 hours per day for 21 days starting January 18, 2022, until the end of day February 7, 2022, for all Regulated Price Plan customers. The off-peak rate will apply automatically to residential, small businesses and farms who pay Time-of-Use or Tiered prices set by the Ontario Energy Board.

This rate relief includes extended off-peak rates to support small businesses, as well as workers and families spending more time at home while the province is in Modified Step Two of the Roadmap to Reopen.

As part of our mandate, we set the rates that your utility charges for the electricity you use in your home or small business. These rates appear on the Electricity line of your bill, and we administer protections such as disconnection moratoriums for residential customers. We also set the Delivery rates that cover the cost to deliver electricity to most residential and small business customers.

 

Types of electricity rates

For residential and small business customers that buy electricity from their utility, there are two different types of rates (also called prices here), and Ontario also provides stable electricity pricing for larger users. The Ontario Energy Board sets both once a year on November 1:

Time-of-Use (TOU)

With TOU prices, the price depends on when you use electricity, including options like ultra-low overnight pricing that encourage off-peak use.

There are three TOU price periods:

  • Off-peak, when demand for electricity is lowest and new offerings like the Ultra-Low Overnight plan can encourage shifting usage. Ontario households use most of their electricity – nearly two thirds of it – during off-peak hours.
  • Mid-peak, when demand for electricity is moderate. These periods are during the daytime, but not the busiest times of day, and utilities like BC Hydro are exploring similar TOU structures as well.
  • On-peak, when demand for electricity is generally higher. These are the busier times of day – generally when people are cooking, starting up their computers and running heaters or air conditioners.

 

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U.S. power demand seen sliding 1% in 2023 on milder weather

EIA U.S. Power Outlook 2023-2024 forecasts lower electricity demand, softer wholesale prices, and faster renewable growth from solar and wind, with steady natural gas, reduced coal generation, slight nuclear gains, and ERCOT market moderation.

 

Key Points

An EIA forecast of a 2023 demand dip, 2024 rebound, lower prices, and a higher renewable share in the U.S. power mix.

✅ Demand dips to 4,000 billion kWh in 2023; rebounds in 2024.

✅ ERCOT on-peak prices average about $35/MWh versus $80/MWh in 2022.

✅ Renewables grow to 24% share; coal falls to 17%; nuclear edges up.

 

U.S. power consumption is expected to slip about 1% in 2023 from the previous year as milder weather slows usage from the record high hit in 2022, consistent with recent U.S. consumption trends observed over the past several years, the U.S. Energy Information Administration (EIA) said in its Short-Term Energy Outlook (STEO).

EIA projected that electricity demand is on track to slide to 4,000 billion kilowatt-hours (kWh) in 2023 from a historic high of 4,048 billion kilowatt-hours (kWh) in 2022, reflecting patterns seen during COVID-19 demand shifts in prior years, before rising to 4,062 billion kWh in 2024 as economic growth ramps up.

Less demand coupled with more electricity generation from cheap renewable power sources and lower natural gas prices is forecast to slash wholesale power prices this year, the EIA said.

The on-peak wholesale price at the North hub in Texas’ ERCOT power market is expected to average about $35 per megawatt-hour (MWh) in 2023 compared with an average of nearly $80/MWh in 2022 after the 2022 price surge in power markets.

As capacity for renewables like solar and wind ramp up and as natural gas prices ease amid the broader energy crisis pressures, the EIA said it expects coal-fired power generation to be 17% less in the spring of 2023 than in the spring of 2022.

Coal will provide an average of 17% of total U.S. generation this year, down from 20% last year, as utilities shift investments toward electricity delivery and away from new power production, the EIA said.

The share of total generation supplied by natural gas is seen remaining at about the same this year at 39%. The nuclear share of generation is seen rising slightly to 20% this year from 19% in 2022. Generation from renewable energy sources grows the most in the forecast, increasing to 24% this year from a share of 22% last year, even as residential electricity bills rose in 2022 across the U.S.

 

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EPA: New pollution limits proposed for US coal, gas power plants reflect "urgency" of climate crisis

EPA Power Plant Emissions Rule proposes strict greenhouse gas limits for coal and gas units, leveraging carbon capture (CCS) under the Clean Air Act to cut CO2 and accelerate decarbonization of the U.S. grid.

 

Key Points

A proposed EPA rule setting CO2 limits for coal and gas plants, using CCS to cut power-sector greenhouse gases.

✅ Applies to existing and new coal and large gas units

✅ Targets near-zero CO2 by 2038 via CCS or retirement

✅ Cites grid, health, and climate benefits; faces legal challenges

 

The Biden administration has proposed new limits on greenhouse gas emissions from coal- and gas-fired power plants, its most ambitious effort yet to roll back planet-warming pollution from the nation’s second-largest contributor to climate change.

A rule announced by the Environmental Protection Agency could force power plants to capture smokestack emissions using a technology that has long been promised but is not used widely in the United States, and arrives amid changes stemming from the NEPA rewrite that affect project reviews.

“This administration is committed to meeting the urgency of the climate crisis and taking the necessary actions required,″ said EPA Administrator Michael Regan.

The plan would not only “improve air quality nationwide, but it will bring substantial health benefits to communities all across the country, especially our front-line communities ... that have unjustly borne the burden of pollution for decades,” Regan said in a speech at the University of Maryland.

President Joe Biden, whose climate agenda includes a clean electricity standard as a key pillar, called the plan “a major step forward in the climate crisis and protecting public health.”

If finalized, the proposed regulation would mark the first time the federal government has restricted carbon dioxide emissions from existing power plants, following a Trump-era replacement of Obama’s power plant overhaul, which generate about 25% of U.S. greenhouse gas pollution, second only to the transportation sector. The rule also would apply to future electric plants and would avoid up to 617 million metric tons of carbon dioxide through 2042, equivalent to annual emissions of 137 million passenger vehicles, the EPA said.

Almost all coal plants — along with large, frequently used gas-fired plants — would have to cut or capture nearly all their carbon dioxide emissions by 2038, the EPA said, a timeline that echoed concerns raised during proposed electricity pricing changes in the prior administration. Plants that cannot meet the new standards would be forced to retire.

The plan is likely to be challenged by industry groups and Republican-leaning states, much like litigation over the Affordable Clean Energy rule unfolded in recent years. They have accused the Democratic administration of overreach on environmental regulations and warn of a pending reliability crisis for the electric grid. The power plant rule is one of at least a half-dozen EPA rules limiting power plant emissions and wastewater treatment rules.

“It’s truly an onslaught” of government regulation “designed to shut down the coal fleet prematurely,″ said Rich Nolan, president and CEO of the National Mining Association.

Regan denied that the power plant rule was aimed at shutting down the coal sector, but acknowledged — even after the end to the 'war on coal' rhetoric — “We will see some coal retirements.”

 

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