China electricity industry to reduce coal consumption rate by 2015

Texas EV Registration Fee adds a $200 annual charge under Senate Bill 505, offsetting lost gasoline tax revenue to the State Highway Fund, impacting electric vehicle owners at registration and renewals across Texas.

Key Points

A $200 yearly charge on electric vehicles to replace lost gasoline tax revenue and support Texas Highway Fund road work.

✅ $200 due at registration or renewal; $400 upfront on new EVs.

✅ Enacted by Senate Bill 505 to offset lost gasoline tax revenue.

✅ Advocates propose mileage-based fees; limited $2,500 rebates exist.

Plano resident Tony Federico bought his Tesla five years ago in part because he hated spending lots of money on gas, and Supercharger billing changes have also influenced charging expenses. But that financial calculus will change slightly on Sept. 1, when Texas will start charging electric vehicle drivers an additional fee of $200 each year.

“It just seems like it’s arbitrary, with no real logic behind it,” said Federico, 51, who works in information technology. “But I’m going to have to pay it.”

Earlier this year, state lawmakers passed Senate Bill 505, which requires electric vehicle owners to pay the fee when they register a vehicle or renew their registration, even as fights for control over charging continue among utilities, automakers and retailers. It’s being imposed because lawmakers said EV drivers weren’t paying their fair share into a fund that helps cover road construction and repairs across Texas.

The cost will be especially high for those who purchase a new electric vehicle and have to pay two years of registration, or $400, up front.

Texas agencies estimated in a 2020 report that the state lost an average of $200 per year in federal and state gasoline tax dollars when an electric vehicle replaced a gas-fueled one. The agencies called the fee “the most straightforward” remedy.

Gasoline taxes go to the State Highway Fund, which the Texas Department of Transportation calls its “primary funding source.” Electric vehicle drivers don’t pay those taxes, though, because they don’t use gasoline.

Still, EV drivers do use the roads. And while electric vehicles make up a tiny portion of cars in Texas for now, that fraction is expected to increase, raising concerns about state power grids in the years ahead.

Many environmental and consumer advocates agreed with lawmakers that EV drivers should pay into the highway fund but argued over how much, and debates over fairer vehicle taxes are surfacing abroad as well.

Some thought the state should set the fee lower to cover only the lost state tax dollars, rather than both the state and federal money, because federal officials may devise their own scheme. Others argued the state should charge nothing because EVs help reduce greenhouse gas emissions that drive climate change and can offer budget benefits for many owners.

“We urgently need to get more electric vehicles on the road,” said Luke Metzger, executive director of Environment Texas. “Any increased fee could create an additional barrier for Texans, and particularly more moderate- to low-income Texans, to make that transition.”

Tom “Smitty” Smith, the executive director of the Texas Electric Transportation Resources Alliance, advocated for a fee based on how many miles a person drove their electric car, which would better mirror how the gas taxes are assessed.

Texas has a limited incentive that could offset the cost: It offers rebates of up to $2,500 for up to 2,000 new hydrogen fuel cell, electric or hybrid vehicles every two years. Adrian Shelley, Public Citizen’s Texas office director, recommended that the state expand the rebates, noting that state-level EV benefits can be significant.

In the Houston area, dealer Steven Wolf isn’t worried about the fee deterring potential customers from buying the electric Ford F-150 Lightning and Mustang Mach-E vehicles he sells. Electric cars are already more expensive than comparable gasoline-fueled cars, and charging networks compete for drivers, he said.

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Global Power Sector CO2 Surge 2021 shows electricity demand outpacing renewable energy, with coal and fossil fuels rebounding, undermining green recovery goals and climate change targets flagged by the IEA and IPCC.

Key Points

Record rise in power sector CO2 in 2021 as demand outpaced renewables and coal rebounded, undermining a green recovery.

✅ Electricity demand rose 5% above pre-pandemic levels

✅ Fossil fuels supplied 61% of power; coal led the rebound

✅ Wind and solar grew 15% but lagged demand

Carbon dioxide emissions from the global electric power sector surged past pre-pandemic levels to record highs in the first half of 2021, according to new research by London-based environmental think tank Ember.

Electricity demand and emissions are now 5% higher than where they were before the Covid-19 outbreak, which prompted worldwide lockdowns that led to a temporary drop in global greenhouse gas emissions. Electricity demand also surpassed the growth of renewable energy, and surging electricity demand is putting power systems under strain, the analysis found.

The findings signal a failure of countries to achieve a so-called “green recovery” that would entail shifting away from fossil fuels toward renewable energy, though European responses to Covid-19 have accelerated the electricity system transition by about a decade, to avoid the worst consequences of climate change.

The report found that 61% of the world’s electricity still came from fossil fuels in 2020. Five G-20 countries had more than 75% of their electricity supplied from fossil fuels last year, with Saudi Arabia at 100%, South Africa at 89%, Indonesia at 83%, Mexico at 75% and Australia at 75%.

Coal generation did fall a record 4% in 2020, but overall coal supplied 43% of the additional energy demand between 2019 and 2020, with soaring electricity and coal use underscoring persistent demand pressures. Asia currently generates 77% of the world’s coal electricity and China alone generates 53%, up from 44% in 2015.

The world’s transition out of coal power, which contributes to roughly 30% of the world’s greenhouse gas emissions, is happening far too slowly to avoid the worst impacts of climate change, the study warned. And the International Energy Agency forecasts coal generation will rebound in 2021 as electricity demand picks up again, even as renewables are poised to eclipse coal by 2025 according to other analyses.

“Progress is nowhere near fast enough. Despite coal’s record drop during the pandemic, it still fell short of what is needed,” Ember lead analyst Dave Jones said in a statement.

Jones said coal power usage must collapse by 80% by the end of the decade to avoid dangerous levels of global warming above 1.5 degrees Celsius (2.7 degrees Fahrenheit).

“We need to build enough clean electricity to simultaneously replace coal and electrify the global economy,” Jones said. “World leaders have yet to wake up to the enormity of the challenge.”

The findings come ahead of a major U.N. climate conference in Glasgow, Scotland, in November, where negotiators will push for more ambitious climate action and emissions reduction pledges from nations.

Without immediate, rapid and large-scale reductions to global emissions, scientists of the Intergovernmental Panel on Climate Change warn that the average global temperature will likely cross the 1.5 degrees Celsius threshold within 20 years.

The study also highlighted some upsides. Wind and solar generation, for instance, rose by 15% in 2020, and low-emissions sources are set to cover almost all the growth in global electricity demand in the next three years, producing nearly a tenth of the world’s electricity last year and doubling production since 2015.

Some countries now get about 10% of their electricity from wind and solar, including India, China, Japan, Brazil. The U.S. and Europe have experienced the biggest growth in wind and solar, and in the EU, wind and solar generated more electricity than gas last year, with Germany at 33% and the U.K. leads the G20 for wind power at 29%.

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Ontario Clean Grid Plan outlines emissions-free electricity growth, renewable energy procurement, nuclear expansion at Bruce and Darlington, reduced natural gas, grid reliability, and net-zero alignment to meet IESO demand forecasts and EV manufacturing loads.

Key Points

A plan to expand emissions-free power via renewables and nuclear, cut natural gas use, and meet growing demand.

✅ Targets renewables, hydro, and nuclear capacity growth

✅ Aims to reduce reliance on gas for grid reliability

✅ Aligns with IESO demand forecasts and EV manufacturing loads

Ontario is working toward filling all of the province’s quickly growing electricity needs with emissions-free sources, including a plan to secure new renewable generation and clean power options, but isn’t quite ready to commit to a moratorium on natural gas.

Energy Minister Todd Smith announced Monday a plan to address growing energy needs for 2030 to 2050 — the Independent Electricity System Operator projects Ontario’s electricity demand could double by mid-century — and next steps involve looking for new wind, solar and hydroelectric power.

“While we may not need to start building today, government and those in the energy sector need to start planning immediately, so we have new clean, zero-emissions projects ready to go when we need them,” Smith said in Windsor, Ont.

The strategy also includes two nuclear projects announced last week — a new large-scale nuclear plant at Bruce Power on the shore of Lake Huron and three new small modular reactors at the site of the Darlington nuclear plant east of Toronto.

Those projects, enough to power six million homes, will help Ontario end its reliance on natural gas to generate electricity, said Smith, but committing to a natural gas moratorium in 2027 and eliminating natural gas by 2050 is contingent on the federal government helping to speed up the new nuclear facilities.

“Today’s report, the Powering Ontario’s Growth plan, commits us to working towards a 100 per cent clean grid,” Smith said in an interview.

“Hopefully the federal government can get on board with our intentions to build this clean generation as quickly as possible … That will put us in a much better position to use our natural gas facilities less in the future, if we can get those new projects online.”

The IESO has said that natural gas is required to ensure supply and stability in the short to medium term, as Ontario works on balancing demand and emissions across the grid, but that it will also increase greenhouse gas emissions from the electricity sector.

The province is expected to face increased demand for electricity from expanded electric vehicle use and manufacturing in the coming years, even as a $400-billion cost estimate for greening the grid is debated.

Keith Brooks, programs director for Environmental Defence, said the provincial plan could have been much more robust, containing firm timelines and commitments.

“This plan does not commit to getting emissions out of the system,” he said.

“It doesn’t commit to net zero, doesn’t set a timeline for a net zero goal or have any projection around emissions from Ontario’s electricity sector going forward. In fact, it’s not really a plan. It doesn’t set out any real goals and it doesn’t it doesn’t project what Ontario’s supply mix might look like.”

The Canadian Climate Institute applauded the plan’s focus on reducing reliance on gas-fired generation and emphasizing non-emitting generation, but also said there are still some question marks.

“The plan is silent on whether the province intends to construct new gas-fired generation facilities,” even as new gas plant expansions are proposed, senior research director Jason Dion wrote in a statement.

“The province should avoid building new gas plants since cost-effective alternatives are available, and such facilities are likely to end up as stranded assets. The province’s timeline for reaching net zero generation is also unclear. Canada and other G7 countries have set a target for 2035, something Ontario will need to address if it wants to remain competitive.”

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EU Winter Energy Mix 2022-2023 shows renewables, wind, solar, and hydro overtaking coal and gas, as demand fell amid high prices; Ember and IEA confirm lower emissions across Europe during the energy crisis.

Key Points

It describes Europe's winter power mix: reduced coal and gas, and record wind, solar, and hydro output.

✅ Coal generation fell 11% YoY; gas output declined even more.

✅ Renewables supplied 40%: wind, solar, and hydro outpaced fossil fuels.

✅ Ember and IEA confirm trends; mild winter tempered demand.

The EU burned less coal this winter during the energy crisis than in previous years, according to an analysis, quashing fears that consumption of the most polluting fossil fuel would soar as countries scrambled to find substitutes for lost supplies of Russian gas.

The study from energy think-tank Ember shows that between October 2022 and March 2023 coal generation fell 27 terawatt hours, or almost 11 per cent year on year, while gas generation fell 38 terawatt hours, as renewables crowded out gas and consumers cut electricity consumption in response to soaring prices.

Renewable energy supplies also rose, with combined wind and solar power and hydroelectric output outstripping fossil fuel generation for the first time, providing 40 per cent of all electricity supplies. The Financial Times checked Ember’s findings with the International Energy Agency, which said they broadly matched its own preliminary analysis of Europe’s electricity generation over the winter.

The study demonstrates that fears of a steep rebound in coal usage in Europe’s power mix were overstated, despite the continent’s worst energy crisis in 40 years following Russia’s full-scale invasion of Ukraine, even as stunted hydro and nuclear output in parts of Europe posed challenges.

While Russia slashed gas supplies to Europe and succeeded in boosting energy prices for consumers to record levels, the push by governments to rejuvenate old coal plants, including Germany's coal generation, to ensure the lights stayed on ultimately did not lead to increased consumption.

“With Europe successfully on the other side of this winter and major supply disruptions avoided, it is clear the threatened coal comeback did not materialise,” analysts at Ember said in the report.

“With fossil fuel generation down, EU power sector emissions during winter were the lowest they have ever been.”

Ember cautioned, however, that Europe had been assisted by a mild winter that helped cut electricity demand for heating and there was no guarantee of such weather next winter. Companies and households had also endured a lot of pain as a result of the higher prices that had led them to cut consumption, even though in some periods, such as the latest lockdown, power demand held firm in parts of Europe.

Total electricity consumption between October and March declined 94 terawatt hours, or 7 per cent, compared with the same period in winter 2021/22, continuing post-Covid transition dynamics across Europe.

“For a lot of people this winter was really hard with electricity prices that were extraordinarily high and we shouldn’t lose sight of that,” said Ember analyst Harriet Fox.

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U.S. Utility Spending Shift highlights rising transmission and distribution costs, grid modernization, and smart meters, while generation expenses decline amid fuel price volatility, capital and labor pressures, and renewable integration across the power sector.

Key Points

A decade-long trend where utilities spend more on delivery and grid upgrades, and less on electricity generation costs.

✅ Delivery O&M, wires, poles, and meters drive rising costs

✅ Generation spending declines amid fuel price changes and PPI

✅ Grid upgrades add reliability, resilience, and renewable integration

Over the past decade, major utilities in the United States have been spending more on delivering electricity to customers and less on producing that electricity, a shift occurring as electricity demand is flat across many regions.

After adjusting for inflation, major utilities spent 2.6 cents per kilowatthour (kWh) on electricity delivery in 2010, using 2020 dollars. In comparison, spending on delivery was 65% higher in 2020 at 4.3 cents/kWh, and residential bills rose in 2022 as inflation persisted. Conversely, utility spending on power production decreased from 6.8 cents/kWh in 2010 (using 2020 dollars) to 4.6 cents/kWh in 2020.

Utility spending on electricity delivery includes the money spent to build, operate, and maintain the electric wires, poles, towers, and meters that make up the transmission and distribution system. In real 2020 dollar terms, spending on electricity delivery increased every year from 1998 to 2020 as utilities worked to replace aging equipment, build transmission infrastructure to accommodate new wind and solar generation amid clean energy transition challenges that affect costs, and install new technologies such as smart meters to increase the efficiency, reliability, resilience, and security of the U.S. power grid.

Spending on power production includes the money spent to build, operate, fuel, and maintain power plants, as well as the cost to purchase power in cases where the utility either does not own generators or does not generate enough to fulfill customer demand. Spending on electricity production includes the cost of fuels including natural gas prices alongside capital, labor, and building materials, as well as the type of generators being built.

Other utility spending on electricity includes general and administrative expenses, general infrastructure such as office space, and spending on intangible goods such as licenses and franchise fees, even as electricity sales declined in recent years.

The retail price of electricity reflects the cost to produce and deliver power, the rate of return on investment that regulated utilities are allowed, and profits for unregulated power suppliers, and, as electricity prices at 41-year high have been reported, these components have drawn increased scrutiny.

In 2021, demand for consumer goods and the energy needed to produce them has been outpacing supply, though power demand sliding in 2023 with milder weather has also been noted. This difference has contributed to higher prices for fuels used by electric generators, especially natural gas. The increased cost for fuel, capital, labor, and building materials, as seen in the U.S. Bureau of Labor Statistics’ Producer Price Index, is increasing the cost of power production for 2021. U.S. average electricity prices have been higher every month of this year compared with 2020, according to our Monthly Electric Power Industry Report.

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BC Hydro Holiday Energy Saving Tips highlight electricity usage trends and power conservation during Christmas cooking. Use efficient appliances, lower the thermostat, and track consumption with MyHydro to reduce bills while hosting guests.

Key Points

Guidelines from BC Hydro to cut holiday electricity usage via efficient cooking, smart thermostats, and MyHydro tracking.

✅ Use microwave, toaster oven, or slow cooker to save power.

✅ Batch-bake cookies and pies to minimize oven cycles.

✅ Set thermostat to 18 C and monitor use with MyHydro.

BC Hydro is reminding British Columbians to conserve power over the holidays after a report commissioned by the utility found the arrival of guests for Christmas dinner results in a 15% increase in electricity usage, and it expects holiday usage to rise as gatherings ramp up.

Cooking appears to be the number one culprit for the uptick in peoples’ hydro bills. According to BC Hydro press release, British Columbians use about 8,000 megawatt hours more of electricity by mid-day Christmas — that's about 1.5 million turkeys roasted in electric ovens — while Ontario electricity demand shifted as people stayed home during the pandemic.
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About 95% of British Columbians said they would make meals at home from scratch over the holiday season, mirroring the uptick in residential electricity use observed during the pandemic. The survey found that inviting friends or family over trumped any plans people had to buy pre-made meals or order take-out. Six in 10 respondents said they would also rather bake holiday treats than pick them up pre-made from the store. 

The survey also showed people in B.C. are taking steps to reduce their electricity usage, echoing earlier findings that many British Columbians changed daily electricity habits during the pandemic. When participants were asked whether they were conscious of how much electricity they used when visiting friends or family, 80% said they would be taking steps to limit their usage.

And while cooking meals from scratch over the holidays may contribute to a spike in a person's electricity bill, some studies have found that, when comparing their overall environmental impact against that of ready-made meals, a roasted dinner has a lower negative impact.

Still, there are many ways to improve your energy efficiency and save some money over the holiday season, and conserving can also help the grid during events like the recent atypical storm response noted by BC Hydro. BC Hydro recommends:

• using smaller appliances whenever possible, such as a microwave, crockpot or toaster oven as they use less than half the power of a regular electric oven;

• baking cookies or pies in batches to save energy;

• turning down the household thermostat to 18 C when possible to reduce costs during peak hydro rates where applicable;

• and tracking how much electricity you use through the MyHydro tool alongside potential time-of-use rates for smarter scheduling

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