European electricity prices could rise to record levels this summer

By International Herald Tribune


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Electricity prices could reach record highs in Europe as forecasters predict a second straight summer of soaring temperatures.

"The chances are we will see significant increases in prices," said Kim Keats, head of the power and fuels group at ICF International, a consulting firm in London.

The price of baseload electricity for next quarter in Germany, the biggest European market, has risen 27 percent from its low this year on Feb. 23 and traded recently at $62.95 (US), a megawatt-hour, according to GFI Group. Increased demand for electricity to power air-conditioners and refrigerators may send baseload, or around-the-clock, contracts as high as 60 euros per megawatt-hour, said Olaf Ter Bille, senior energy trader at the MMT Energy Fund.

Temperatures in northwestern Europe may jump to records in the second half of July, Jim Dale, a senior risk meteorologist at British Weather Services, said. There is a 70 percent chance mean summer temperatures will be above the 1971-2000 average for much of Western Europe, the British Met Office said.

Traders have started buying power for the summer to avoid shortages that would force them to buy in the potentially more costly spot market. MMT, based in Amsterdam, forecasts German electricity contracts for next quarter could rise as much as 30 percent.

Hot weather affects supplies as well as demand. Rising temperatures reduce water levels on rivers, restricting shipping and supplies of coal to power stations, Keats of ICF said.

The driest April in 106 years did not affect shipping on the Rhine, the busiest European waterway, Markus Lehmacher, a spokesman for Cologne's Water and Shipping Agency, said last week. Water levels Wednesday fell to their lowest level this year, 1.99 meters, or 6.5 feet, around Cologne. When levels are below two meters, restrictions may be imposed that require each barge to carry less coal, Lehmacher said.

April was the warmest month on record in northwestern Europe, according to forecasters. Hotter temperatures typically mean lower amounts of rainfall.

"If precipitation levels carry on as this, there will be problems," said Dale, whose company sells forecasts to businesses including energy companies.

Warmer waters also restrict how much cooling water power plants may discharge for environmental reasons. Such limits force power plants to generate less electricity. A "severely hot" summer in Europe could reduce production at French nuclear power plants, Mark Daubney, a strategic specialist in the European energy services department of John Hall Associates, said.

The record on the European Energy Exchange in Germany for baseload day-ahead power was set on July 26 at 301.54 euros a megawatt hour. It was at 37.21 euros recently.

Falling prices for carbon emissions contracts will restrain prices, Keats said. The price of 2007 permits, required to emit carbon dioxide from about 12,000 power plants and factories in the region, dropped more than 95 percent since a year ago as national governments handed out more credits than utilities needed.

Forecasters do not always get it right. Prices of next-quarter power contracts may fall if meteorologists change their forecasts or temperatures fall in France and Germany, traders say. "It could go down to 30 euros if we have a cold summer," Ter Bille of MMT said.

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'Pakistan benefits from nuclear technology'

Pakistan Nuclear Energy advances clean power with IAEA guidance, supporting SDGs via electricity generation, nuclear security, and applications in healthcare, agriculture, and COVID-19 testing, as new 1,100 MW reactors near grid connection.

 

Key Points

Pakistan Nuclear Energy is the nation's atomic program delivering clean electricity, SDGs gains, and IAEA-guided safety.

✅ Two 1,100 MW reactors nearing grid connection

✅ IAEA-aligned safety and nuclear security regime

✅ Nuclear tech supports healthcare, agriculture, COVID-19 tests

 

Pakistan is utilising its nuclear technology to achieve its full potential by generating electricity, aligning with China's steady nuclear development trends, and attaining socio-economic development goals outlined by the United Nations Sustainable Development Goals.

This was stated by Pakistan Atomic Energy Commission (PAEC) Chairperson Muhammad Naeem on Tuesday while addressing the 64th International Atomic Energy Agency (IAEA) General Conference (GC) which is being held in Vienna from September 21, a forum taking place amid regional milestones like the UAE's first Arab nuclear plant startup as well.

Regarding nuclear security, the PAEC chief stated that Pakistan considered it as a national responsibility and that it has developed a comprehensive and stringent safety and security regime, echoing IAEA praise for China's nuclear security in the region, which is regularly reviewed and upgraded in accordance with IAEA's guidelines.

Many delegates are attending the event through video link due to the novel coronavirus (Covid-19) pandemic.

On the first day of the conference, IAEA Director General Rafael Mariano Grossi highlighted the role of the nuclear watchdog in the monitoring and verification of nuclear activities across the globe, as seen in Barakah Unit 1 at 100% power milestones reported worldwide.

He also talked about the various steps taken by the IAEA to help member states contain the spread of coronavirus such as providing testing kits etc.

In a recorded video statement, the PAEC chairperson said that Pakistan has a mutually beneficial relationship with IAEA, similar to IAEA assistance to Bangladesh on nuclear power development efforts. He also congratulated Ambassador Azzeddine Farhane on his election to become the President of the 64th GC and assured him of Pakistan's full support and cooperation.

Naeem stated that as a clean, affordable and reliable source, nuclear energy can play a key role, with India's nuclear program moving back on track, in fighting climate change and achieving the Sustainable Development Goals (SDGs).

The PAEC chief informed the audience that two 1,100-megawatt (MW) nuclear power plants are near completion and, like the UAE grid connection milestone, are expected to be connected to the national grid next year.

He also highlighted the role of PAEC in generating electricity through nuclear power plants, while also helping the country achieve the socio-economic development goals outlined under the United Nations SDGs through the application of nuclear technology in diverse fields like agriculture, healthcare, engineering and manufacturing, human resource development and other sectors.

 

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Almost 500-mile-long lightning bolt crossed three US states

Longest Lightning Flash Record confirmed by WMO: a 477.2-mile megaflash spanning Mississippi, Louisiana, and Texas, detected by satellite sensors, highlighting Great Plains supercell storms, lightning safety, and extreme weather monitoring advancements.

 

Key Points

It is the WMO-verified 477.2-mile megaflash across MS, LA, and TX, detected via satellites.

✅ Spanned 477.2 miles across Mississippi, Louisiana, and Texas

✅ Verified by WMO using space-based lightning detection

✅ Occurs in megaflash-prone regions like the U.S. Great Plains

 

An almost 500-mile long bolt of lightning that lit up the sky across three US states has set a new world record for longest flash, scientists have confirmed.

The lightning bolt, extended a total of 477.2 miles (768 km) and spread across Mississippi, Louisiana, and Texas.

The previous record was 440.6 miles (709 km) and recorded in Brazil in 2018.

Lightning rarely extends over 10 miles and usually lasts under a second, yet utilities plan for severe weather when building long-distance lines such as the TransWest Express transmission project to enhance reliability.

Another lightning flash recorded in 2020 - in Uruguay and Argentina - has also set a new record for duration at 17.1 seconds. The previous record was 16.7 seconds.

"These are extraordinary records from lightning flash events," Professor Randall Cerveny, the WMO's rapporteur of weather and climate extremes, said.

According to the WMO, both records took place in areas prone to intense storms that produce 'megaflashes', namely the Great Plains region of the United States and the La Plata basin of South America's southern cone, where utilities adapting to climate change is an increasing priority.

Professor Cerveny added that greater extremes are likely to exist and are likely to be recorded in the future thanks to advances in space-based lightning detection technology.

The WMO warned that lightning was a hazard and urged people in both regions and around the world to take caution during storms, which can lead to extensive disruptions like the Tennessee power outages reported after severe weather.

"These extremely large and long-duration lightning events were not isolated but happened during active thunderstorms," lightning specialist Ron Holle said in a WMO statement.

"Any time there is thunder heard, it is time to reach a lightning-safe place".

Previously accepted WMO 'lightning extremes' include a 1975 incident in which 21 people were killed by a single flash of a lightning as they huddled inside a tent in Zimbabwe, and modern events show how dangerous weather can also cut electricity for days, as with the Hong Kong typhoon outages that affected families.

In another incident, 469 people were killed when lightning struck the Egyptian town of Dronka in 1994, causing burning oil to flood the town, and major incidents can also disrupt infrastructure, as seen during the LA power outage following a substation fire.

The WMO notes that the only lightning-safe locations are "substantial" buildings with wiring and plumbing, and dedicated lightning protection training helps reinforce these guidelines, rather than structures such as bus stops or those found at beaches.

Fully enclosed metal-topped vehicles are also considered reliably safe, and regional storm safety tips offer additional guidance.

 

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Ontario's electricity operator kept quiet about phantom demand that cost customers millions

IESO Fictitious Demand Error inflated HOEP in the Ontario electricity market, after embedded generation was mis-modeled; the OEB says double-counted load lifted wholesale prices and shifted costs via the Global Adjustment.

 

Key Points

An IESO modeling flaw that double-counted load, inflating HOEP and charges in Ontario's wholesale market.

✅ Double-counted unmetered load from embedded generation

✅ Inflated HOEP; shifted costs via Global Adjustment

✅ OEB flagged transparency; exporters paid more

 

For almost a year, the operator of Ontario’s electricity system erroneously counted enough phantom demand to power a small city, causing prices to spike and hundreds of millions of dollars in extra charges to consumers, according to the provincial energy regulator.

The Independent Electricity System Operator (IESO) also failed to tell anyone about the error once it noticed and fixed it.

The error likely added between $450 million and $560 million to hourly rates and other charges before it was fixed in April 2017, according to a report released this month by the Ontario Energy Board’s Market Surveillance Panel.

It did this by adding as much as 220 MW of “fictitious demand” to the market starting in May 2016, when the IESO started paying consumers who reduced their demand for power during peak periods. This involved the integration of small-scale embedded generation (largely made up of solar) into its wholesale model for the first time.

The mistake assumed maximum consumption at such sites without meters, and double-counted that consumption.

The OEB said the mistake particularly hurt exporters and some end-users, who did not benefit from a related reduction of a global adjustment rate applicable to other customers.

“The most direct impact of the increase in HOEP (Hourly Ontario Energy Price) was felt by Ontario consumers and exporters of electricity, who paid an artificially high HOEP, to the benefit of generators and importers,” the OEB said.

The mix-up did not result in an equivalent increase in total system costs, because changes to the HOEP are offset by inverse changes to a electricity cost allocation mechanism such as the Global Adjustment rate, the OEB noted.


A chart from the OEB's report shows the time of day when fictitious demand was added to the system, and its influence on hourly rates.

Peak time spikes
The OEB said that the fictitious demand “regularly inflated” the hourly price of energy and other costs calculated as a direct function of it.

For almost a year, Ontario's electricity system operator @IESO_Tweets erroneously counted enough phantom demand to power a small city, causing price spikes and hundreds of millions in charges to consumers, @OntEnergyBoard says. @5thEstate reports.

It estimated the average increase to the HOEP was as much as $4.50/MWh, but that price spikes, compounded by scheduled OEB rate changes, would have been much higher during busier times, such as the mid-morning and early evening.

“In times of tight supply, the addition of fictitious demand often had a dramatic inflationary impact on the HOEP,” the report said.

That meant on one summer evening in 2016 the hourly rate jumped to $1,619/MWh, it said, which was the fourth highest in the history of the Ontario wholesale electricity market.

“Additional demand is met by scheduling increasingly expensive supply, thus increasing the market price. In instances where supply is tight and the supply stack is steep, small increases in demand can cause significant increases in the market price.

The OEB questioned why, as of September this year, the IESO had failed to notify its customers or the broader public, amid a broader auditor-regulator dispute that drew political attention, about the mistake and its effect on prices.

“It's time for greater transparency on where electricity costs are really coming from,” said Sarah Buchanan, clean energy program manager at Environmental Defence.

“Ontario will be making big decisions in the coming years about whether to keep our electricity grid clean, or burn more fossil fuels to keep the lights on,” she added. “These decisions need to be informed by the best possible evidence, and that can't happen if critical information is hidden.”

In a response to the OEB report on Monday, the IESO said its own initial analysis found that the error likely pushed wholesale electricity payments up by $225 million. That calculation assumed that the higher prices would have changed consumer behaviour, while upcoming electricity auctions were cited as a way to lower costs, it said.

In response to questions, a spokesperson said residential and small commercial consumers would have saved $11 million in electricity costs over the 11-month period, even as a typical bill increase loomed province-wide, while larger consumers would have paid an extra $14 million.

That is because residential and small commercial customers pay some costs via time-of-use rates, including a temporary recovery rate framework, the IESO said, while larger customers pay them in a way that reflects their share of overall electricity use during the five highest demand hours of the year.

The IESO said it could not compensate those that had paid too much, given the complexity of the system, and that the modelling error did not have a significant impact on ratepayers.

While acknowledging the effects of the mistake would vary among its customers, the IESO said the net market impact was less than $10 million, amid ongoing legislation to lower electricity rates in Ontario.

It said it would improve testing of its processes prior to deployment and agreed to publicly disclose errors that significantly affect the wholesale market in the future.

 

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On the road to 100 per cent renewables

US Climate Alliance 100% Renewables 2035 accelerates clean energy, electrification, and decarbonization, replacing coal and gas with wind, solar, and storage to cut air pollution, lower energy bills, create jobs, and advance environmental justice.

 

Key Points

A state-level target for alliance members to meet all electricity demand with renewable energy by 2035.

✅ 100% RES can meet rising demand from electrification

✅ Major health gains from reduced SO2, NOx, and particulates

✅ Jobs grow, energy burdens fall, climate resilience improves

 

The Union of Concerned Scientists joined with COPAL (Minnesota), GreenRoots (Massachusetts), and the Michigan Environmental Justice Coalition, to better understand the feasibility and implications of leadership states meeting 100 percent of their electricity needs with renewable energy by 2035, a target reflected in federal clean electricity goals under discussion today.

We focused on 24 member states of the United States Climate Alliance, a bipartisan coalition of governors committed to the goals of the 2015 Paris Climate Agreement. We analyzed two main scenarios: business as usual versus 100 percent renewable electricity standards, in line with many state clean energy targets now in place.

Our analysis shows that:

Climate Alliance states can meet 100 percent of their electricity consumption with renewable energy by 2035, as independent assessments of zero-emissions feasibility suggest. This holds true even with strong increases in demand due to the electrification of transportation and heating.

A transition to renewables yields strong benefits in terms of health, climate, economies, and energy affordability.

To ensure an equitable transition, states should broaden access to clean energy technologies and decision making to include environmental justice and fossil fuel-dependent communitieswhile directly phasing out coal and gas plants.

Demands for climate action surround us. Every day brings news of devastating "this is not normal" extreme weather: record-breaking heat waves, precipitation, flooding, wildfires. To build resilience and mitigate the worst impacts of the climate crisis requires immediate action to reduce heat-trapping emissions and transition to renewable energy, including practical decarbonization strategies adopted by states.

On the Road to 100 Percent Renewables explores actions at one critical level: how leadership states can address climate change by reducing heat-trapping emissions in key sectors of the economy as well as by considering the impacts of our energy choices. A collaboration of the Union of Concerned Scientists and local environmental justice groups COPAL (Minnesota), GreenRoots (Massachusetts), and the Michigan Environmental Justice Coalition, with contributions from the national Initiative for Energy Justice, assessed the potential to accelerate the use of renewable energy dramatically through state-level renewable electricity standards (RESs), major drivers of clean energy in recent decades. In addition, the partners worked with Greenlink Analytics, an energy research organization, to assess how RESs most directly affect people's lives, such as changes in public health, jobs, and energy bills for households.

Focusing on 24 members of the United States Climate Alliance (USCA), the study assesses the implications of meeting 100 percent of electricity consumption in these states, including examples like Rhode Island's 100% by 2030 plan that inform policy design, with renewable energy in the near term. The alliance is a bipartisan coalition of governors committed to reducing heat-trapping emissions consistent with the goals of the 2015 Paris climate agreement.[1]

On the Road to 100 Percent Renewables looks at three types of results from a transition to 100 percent RES policies: improvements in public health from decreasing the use of coal and gas2 power plants; net job creation from switching to more labor-oriented clean energy; and reduced household energy bills from using cleaner sources of energy. The study assumes a strong push to electrify transportation and heating to address harmful emissions from the current use of fossil fuels in these sectors. Our core policy scenario does not focus on electricity generation itself, nor does it mandate retiring coal, gas, and nuclear power plants or assess new policies to drive renewable energy in non-USCA states.

Our analysis shows that:

USCA states can meet 100 percent of their electricity consumption with renewable energy by 2035 even with strong increases in demand due to electrifying transportation and heating.

A transition to renewables yields strong benefits in terms of health, climate, economies, and energy affordability.

Renewable electricity standards must be paired with policies that address not only electricity consumption but also electricity generation, including modern grid infrastructure upgrades that enable higher renewable shares, both to transition away from fossil fuels more quickly and to ensure an equitable transition in which all communities experience the benefits of a clean energy economy.

Currently, the states in this analysis meet their electricity needs with differing mixes of electricity sourcesfossil fuels, nuclear, and renewables. Yet across the states, the study shows significant declines in fossil fuel use from transitioning to clean electricity; the use of solar and wind powerthe dominant renewablesgrows substantially:

In the study's "No New Policy" scenario"business as usual"coal and gas generation stay largely at current levels over the next two decades. Electricity generation from wind and solar grows due to both current policies and lowest costs.

In a "100% RES" scenario, each USCA state puts in place a 100 percent renewable electricity standard. Gas generation falls, although some continues for export to non-USCA states. Coal generation essentially disappears by 2040. Wind and solar generation combined grow to seven times current levels, and three times as much as in the No New Policy scenario.

A focus on meeting in-state electricity consumption in the 100% RES scenario yields important outcomes. Reductions in electricity from coal and gas plants in the USCA states reduce power plant pollution, including emissions of sulfur dioxide and nitrogen oxides. By 2040, this leads to 6,000 to 13,000 fewer premature deaths than in the No New Policy scenario, as well as 140,000 fewer cases of asthma exacerbation and 700,000 fewer lost workdays. The value of the additional public health benefits in the USCA states totals almost $280 billion over the two decades. In a more detailed analysis of three USCA statesMassachusetts, Michigan, and Minnesotathe 100% RES scenario leads to almost 200,000 more added jobs in building and installing new electric generation capacity than the No New Policy scenario.

The 100% RES scenario also reduces average energy burdens, the portion of household income spent on energy. Even considering household costs solely for electricity and gas, energy burdens in the 100% RES scenario are at or below those in the No New Policy scenario in each USCA state in most or all years. The average energy burden across those states declines from 3.7 percent of income in 2020 to 3.0 percent in 2040 in the 100% RES scenario, compared with 3.3 percent in 2040 in the No New Policy scenario.

Decreasing the use of fossil fuels through increasing the use of renewables and accelerating electrification reduces emissions of carbon dioxide (CO2), with implications for climate, public health, and economies. Annual CO2 emissions from power plants in USCA states decrease 58 percent from 2020 to 2040 in the 100% RES scenario compared with 12 percent in the No New Policy scenario.

The study also reveals gaps to be filled beyond eliminating fossil fuel pollution from communities, such as the persistence of gas generation to sell power to neighboring states, reflecting barriers to a fully renewable grid that policy must address. Further, it stresses the importance of policies targeting just and equitable outcomes in the move to renewable energy.

Moving away from fossil fuels in communities most affected by harmful air pollution should be a top priority in comprehensive energy policies. Many communities continue to bear far too large a share of the negative impacts from decades of siting the infrastructure for the nation's fossil fuel power sector in or near marginalized neighborhoods. This pattern will likely persist if the issue is not acknowledged and addressed. State policies should mandate a priority on reducing emissions in communities overburdened by pollution and avoiding investments inconsistent with the need to remove heat-trapping emissions and air pollution at an accelerated rate. And communities must be centrally involved in decisionmaking around any policies and rules that affect them directly, including proposals to change electricity generation, both to retire fossil fuel plants and to build the renewable energy infrastructure.

Key recommendations in On the Road to 100 Percent Renewables address moving away from fossil fuels, increasing investment in renewable energy, and reducing CO2 emissions. They aim to ensure that communities most affected by a history of environmental racism and pollution share in the benefits of the transition: cleaner air, equitable access to good-paying jobs and entrepreneurship alternatives, affordable energy, and the resilience that renewable energy, electrification, energy efficiency, and energy storage can provide. While many communities can benefit from the transition, strong justice and equity policies will avoid perpetuating inequities in the electricity system. State support to historically underserved communities for investing in solar, energy efficiency, energy storage, and electrification will encourage local investment, community wealth-building, and the resilience benefits the transition to renewable energy can provide.

A national clean electricity standard and strong pollution standards should complement state action to drive swift decarbonization and pollution reduction across the United States. Even so, states are well positioned to simultaneously address climate change and decades of inequities in the power system. While it does not substitute for much-needed national and international leadership, strong state action is crucial to achieving an equitable clean energy future.

 

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Siemens Energy to unlock a new era of offshore green hydrogen production

Offshore Wind-to-Hydrogen Integration enables green hydrogen by embedding an electrolyzer in offshore turbines. Siemens Gamesa and Siemens Energy align under H2Mare to decarbonize industry, advance the Paris Agreement, and unlock scalable, off-grid renewable production.

 

Key Points

A method integrating electrolyzers into offshore wind turbines to generate green hydrogen and reduce carbon emissions.

✅ Integrated electrolyzer at turbine base for off-grid operation

✅ Enables scalable, cost-efficient green hydrogen production

✅ Supports decarbonization targets under Paris Agreement

 

To reach the Paris Agreement goals, the world will need vast amounts of green hydrogen and, with offshore wind growth accelerating, wind will provide a large portion of the power needed for its production.

Siemens Gamesa and Siemens Energy announced today that they are joining forces combining their ongoing wind-to-hydrogen developments to address one of the major challenges of our decade - decarbonizing the economy to solve the climate crisis.

The companies are contributing with their developments to an innovative solution that fully integrates an electrolyzer into an offshore wind turbine as a single synchronized system to directly produce green hydrogen. The companies intend to provide a full-scale offshore demonstration of the solution by 2025/2026. The German Federal Ministry of Education and Research, reflecting Germany's clean energy progress, announced today that the developments can be implemented as part of the ideas competition 'Hydrogen Republic of Germany'.

'Our more than 30 years of experience and leadership in the offshore wind industry, coupled with Siemens Energy's expertise in electrolyzers, brings together brilliant minds and cutting-edge technologies to address the climate crisis. Our wind turbines play a huge role in the decarbonization of the global energy system, and the potential of wind to hydrogen means that we can do this for hard-to-abate industries too. It makes me very proud that our people are a part of shaping a greener future,' said Andreas Nauen, Siemens Gamesa CEO.

Christian Bruch, CEO of Siemens Energy, explains: 'Together with Siemens Gamesa, we are in a unique position to develop this game changing solution. We are the company that can leverage its highly flexible electrolyzer technology and create and redefine the future of sustainable offshore energy production. With these developments, the potential of regions with abundant offshore wind, such as the UK offshore wind sector, will become accessible for the hydrogen economy. It is a prime example of enabling us to store and transport wind energy, thus reducing the carbon footprint of economy.'

Over a time frame of five years, Siemens Gamesa plans to invest EUR 80 million and Siemens Energy is targeting to invest EUR 40 million in the developments. Siemens Gamesa will adapt its development of the world's most powerful turbine, the SG 14-222 DD offshore wind turbine to integrate an electrolysis system seamlessly into the turbine's operations. By leveraging Siemens Gamesa's intricate knowledge and decades of experience with offshore wind, electric losses are reduced to a minimum, while a modular approach ensures a reliable and efficient operational set-up for a scalable offshore wind-to-hydrogen solution. Siemens Energy will develop a new electrolysis product to not only meet the needs of the harsh maritime offshore environment and be in perfect sync with the wind turbine, but also to create a new competitive benchmark for green hydrogen.

The ultimate fully integrated offshore wind-to-hydrogen solution will produce green hydrogen using an electrolyzer array located at the base of the offshore wind turbine tower, blazing a trail towards offshore hydrogen production. The solution will lower the cost of hydrogen by being able to run off grid, much like solar-powered hydrogen in Dubai showcases for desert environments, opening up more and better wind sites. The companies' developments will serve as a test bed for making large-scale, cost-efficient hydrogen production a reality and will prove the feasibility of reliable, effective implementation of wind turbines in systems for producing hydrogen from renewable energy.

The developments are part of the H2Mare initiative which is a lighthouse project likely to be supported by the German Federal Ministry of Education and Research ideas competition 'Hydrogen Republic of Germany'. The H2mare initiative under the consortium lead of Siemens Energy is a modular project consisting of multiple sub-projects to which more than 30 partners from industry, institutes and academia are contributing. Siemens Energy and Siemens Gamesa will contribute to the H2Mare initiative with their own developments in separate modular building blocks.

About hydrogen and its role in the green energy transition

Currently 80 million tons of hydrogen are produced each year and production is expected to increase by about 20 million tons by 2030. Just 1% of that hydrogen is currently generated from green energy sources. The bulk is obtained from natural gas and coal, emitting 830 million tons of CO2 per year, more than the entire nation of Germany or the global shipping industry. Replacing this current polluting consumption would require 820 GW of wind generating capacity, 26% more than the current global installed wind capacity. Looking further ahead, many studies suggest that by 2050 production will have grown to about 500 million tons, with a significant shift to green hydrogen already signaled by projects like Brazil's green hydrogen plant now underway. The expected growth will require between 1,000 GW and 4,000 GW of renewable capacity by 2050 to meet demand, and in the U.S. initiatives like DOE hydrogen hubs aim to catalyze this build-out, which highlights the vast potential for growth in wind power.

 

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Stop the Shock campaign seeks to bring back Canadian coal power

Alberta Electricity Price Hikes spotlight grid reliability, renewable transition, coal phase-out, and energy poverty, as policy shifts and investor reports warn of rate increases, biomass trade-offs, and sustainability challenges impacting households and businesses.

 

Key Points

Projected power bill hikes from market reforms, renewables, coal phase-out, and reliability costs in Alberta.

✅ Investor report projects 3x-7x bills and $50B market transition costs

✅ Policy missteps cited in Ontario, Germany, Australia price spikes

✅ Debate: retain coal vs. speed renewables, storage, and grid upgrades

 

Since when did electricity become a scarce resource?

I thought all the talk about greening the grid was about having renewable, sustainable, less polluting options to fulfill our growing need for power. Yet, increasingly, we are faced with news stories that indicate using power is bad in and of itself, even as flat electricity demand worries utilities.

The implication, I guess, is that we should be using less of it. But, I don’t want to use less electricity. I want to be able to watch TV, turn my lights on when the sun sets at 4 p.m. in the winter, keep my food cold and power my devices.

We once had a consensus that a reliable supply of power was essential to a growing economy and a high quality of life, a point underscored by brownout risks in U.S. markets.

I’m beginning to wonder if we still have that consensus.

And more importantly, if our decision makers have determined electricity is a vice as opposed to an essential of life – as debates over Alberta electricity policy suggest – you know what is going to happen next. Prices are going to rise, forcing all of us to use less.

How much would it hurt your bottom line if your electricity bill went up three-fold? How about seven-fold? That is the grim picture that Todd Beasley painted for us on Tuesday’s show.

Last week, he launched a campaign on behalf of Albertans for Sustainable Electricity, called Stop the Shock. He shared the results of an internal investor report that concluded Alberta’s power market overhaul would cost an estimated $50 billion to implement and could result in a three to seven-fold increase in electricity bills.

Now, my typical power bill averages $70 a month. That would be like having it grow to $210 a month, or just over $2,500 a year. If it’s a seven-fold increase that would be more like $5,000 a year. That may be manageable for some families, but I can think of a lot of things I’d rather do with $5,000 than pay more to keep my fridge running so my food doesn’t spoil.

For low-income families that would be a real hardship.

Beasley said Ontario’s inept handling of its electricity market and the phase-out of coal power resulted in price spikes that left more than 70,000 individuals facing energy poverty.

Germany and Australia realized they made the same mistake and are returning some electricity to coal.

Beasley shared a long list of Canadian firms – including our own Canadian Pension Plan – that are investing in coal development around the world. Meanwhile, Canadian governments remain in a mad rush to phase it out here. That’s not the only hypocrisy.

Rupert Darwall, author of Green Tyranny: Exposing the Totalitarian Roots of the Climate Industrial Complex, revealed in a recent column what he calls “the scandal at the heart of the EU’s renewable policies.”

Turns out most of their expansion in renewable energy has come from biomass in the form of wood. Not only does burning wood produce more CO2, it also eliminates carbon sinks.

To meet the EU’s 2030 target would require cutting down trees equivalent to the combined harvest in Canada and the United States. As he puts it, “Whichever way you look at it, burning the world’s carbon sinks to meet the EU’s arbitrary renewable energy targets is environmentally insane.”

Beasley’s group is trying to bring some sanity back to the discussion. The goal should be to move to a greener grid while maintaining abundant, reliable and cheap power, and examples like Texas grid improvements show practical steps. He thinks to achieve all these goals, coal should remain part of the mix. What do you think?

 

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