Canadian consumers rank second-last in green survey

By CBC News


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Canadians scored dismally in a 14-country survey on environmentally friendly consumption patterns, in part owing to a widespread car culture and a penchant for big homes.

The survey was conducted by the polling firm GlobeScan for the National Geographic Society. Canada finished ahead of the United States but behind Brazil, India, China, Mexico, Hungary, Russia, Great Britain, Germany, Australia, Spain, Japan and France.

"I think that the survey resultsÂ… really set an important reminder to Canadians that on a per capita basis Canadians' footprint is really quite heavy compared with other countries," said Eric Whan, GlobeScan's director of sustainability, at a press conference.

One thousand consumers from each of the 14 countries completed the online survey about their consumption patterns between January 11 and February 13. Participants answered questions about housing, transportation, food and their purchasing habits and were given a score out of 100. Government action and industry were not assessed.

The researchers acknowledged that financial and cultural circumstances may have influenced the rankings, with developing countries scoring well. But, they argued consumers everywhere can choose to be more environmentally friendly in their consumption habits.

"Regardless of why consumers behave in an environmentally friendly way — whether it be driven by health concerns, whether it's a cultural thing, climate, income… or a real conscious decision to be more green — the fact is individual consumers in developing countries have less impact on the environment than the average consumer in wealthy countries," Whan said.

"In this sense, it really doesn't matter why they behave in the way they do — the fact is, their behaviour does have an environmental impact and consumers anywhere can change in many ways, many of their behaviours for better or worse."

The survey found that 29 per cent of Canadians have nine or more rooms in their houses, putting Canada at the higher end of the spectrum for house size. Canadians were also penalized for heating their homes.

While acknowledging heating as a necessity in Canada's northern climate, the researchers said Canadians scored low because of the way they choose to heat their homes.

"The Canadians being one of the highest users in the market basket of energy overall was quite surprising," said Lloyd Hetherington, GlobeScan's executive vice-president.

"We know that there's penalties there for living in a colder climate, for being stretched out in a large country but by and large in most of these indices, Canada did not score well. There's a lot to be done."

By comparison, Brazil earned high marks for having smaller homes, infrequent use of home heating and widespread use of renewable electricity. Respondents in China and India also raised their green index value for the use of solar panels to heat water.

In terms of transportation, Canada ranked 12th out of the 14 countries surveyed with 52 per cent of respondents saying they drive alone daily. The survey also found 87 per cent say they have one or more vehicles in their households. In contrast, 22 per cent reported using public transportation at least once a week. China ranked well in this category, though the study noted car use there was growing notably.

Canadians scored well in recycling with 59 per cent of respondents saying they always recycled and 46 per cent said they donated items that could be reused. About 50 per cent of Canadians also said they have energy-saving washing machines and/or refrigerators and freezers. China, India and Brazil led in the consumer goods index, with most consumers reporting they purchase green products and own few appliances.

With more Canadians saying they buy locally grown foods, Canadians ranked fifth in the food index. Canada also earned points for below-average consumption of bottled water at 52 per cent.

The study also found 19 per cent of Canadian consumers believe environmental problems will negatively affect their health though only 20 per cent said they were actively attempting to lessen their impact on the environment.

The results of the survey were weighted according to census data to best represent age, gender and education demographics for each country. The results are considered to be accurate within 3.1 percentage points 95 per cent of the time.

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No time to be silent on NZ's electricity future

New Zealand Renewable Energy Strategy examines decarbonisation, GHG emissions, and net energy as electrification accelerates, expanding hydro, geothermal, wind, and solar PV while weighing intermittency, storage, materials, and energy security for a resilient power system.

 

Key Points

A plan to expand electricity generation, balancing decarbonisation, net energy limits, and energy security.

✅ Distinguishes decarbonisation targets from renewable capacity growth

✅ Highlights net energy limits, intermittency, and storage needs

✅ Addresses materials, GHG build-out costs, and energy security

 

The Electricity Authority has released a document outlining a plan to achieve the Government’s goal of more than doubling the amount of electricity generated in New Zealand over the next few decades.

This goal is seen as a way of both reducing our greenhouse gas (GHG) emissions overall, as everything becomes electrified, and ensuring we have a 100 percent renewable energy system at our disposal. Often these two goals are seen as being the same – to decarbonise we must transition to more renewable energy to power our society.

But they are quite different goals and should be clearly differentiated. GHG emissions could be controlled very effectively by rationing the use of a fossil fuel lockdown approach, with declining rations being available over a few years. Such a direct method of controlling emissions would ensure we do our bit to remain within a safe carbon budget.

If we took this dramatic step we could stop fretting about how to reduce emissions (that would be guaranteed by the rationing), and instead focus on how to adapt our lives to the absence of fossil fuels.

Again, these may seem like the same task, but they are not. Decarbonising is generally thought of in terms of replacing fossil fuels with some other energy source, signalling that a green recovery must address more than just wind capacity. Adapting our lives to the absence of fossil fuels pushes us to ask more fundamental questions about how much energy we actually need, what we need energy for, and the impact of that energy on our environment.

MBIE data indicate that between 1990 and 2020, New Zealand almost doubled the total amount of energy it produced from renewable energy sources - hydro, geothermal and some solar PV and wind turbines.

Over this same time period our GHG emissions increased by about 25 percent. The increase in renewables didn’t result in less GHG emissions because we increased our total energy use by almost 50 percent, mostly by using fossil fuels. The largest fossil fuel increases were used in transport, agriculture, forestry and fisheries (approximately 60 percent increases for each).

These data clearly demonstrate that increasing renewable energy sources do not necessarily result in reduced GHG emissions.

The same MBIE data indicate that over this same time period, the amount of Losses and Own Use category for energy use more than doubled. As of 2020 almost 30 percent of all energy consumed in New Zealand fell into this category.

These data indicate that more renewable energy sources are historically associated with less energy actually being available to do work in society.

While the category Losses and Own Use is not a net energy analysis, the large increase in this category makes the call for a system-wide net energy analysis all the more urgent.

Net energy is the amount of energy available after the energy inputs to produce and deliver the energy is subtracted. There is considerable data available indicating that solar PV and wind turbines have a much lower net energy surplus than fossil fuels.

And there is further evidence that when the intermittency and storage requirements are engineered into a total renewable energy system, the net energy of the entire system declines sharply. Could the Losses and Other Uses increase over this 30-year period be an indication of things to come?

Despite the importance of net energy analysis in designing a national energy system which is intended to provide energy security and resilience, there is not a single mention of net energy surplus in the EA reference document.

So over the last 30 years, New Zealand has doubled its renewable energy capacity, and at the same time increased its GHG emissions and reduced the overall efficiency of the national energy system.

And we are now planning to more than double our renewable energy system yet again over the next 30 years, even as zero-emissions electricity by 2035 is being debated elsewhere. We need to ask if this is a good idea.

How can we expand New Zealand’s solar PV and wind turbines without using fossil fuels? We can’t.

How could we expand our solar PV and wind turbines without mining rare minerals and the hidden costs of clean energy they entail, further contributing to ecological destruction and often increasing social injustices? We can't.

Even if we could construct, deliver, install and maintain solar PV and wind turbines without generating more GHG emissions and destroying ecosystems and poor communities, this “renewable” infrastructure would have to be replaced in a few decades. But there are at least two major problems with this assumed scenario.

The rare earth minerals required for this replacement will already be exhausted by the initial build out. Recycling will only provide a limited amount of replacements.

The other challenge is that a mostly “renewable” energy system will likely have a considerably lower net energy surplus. So where, in 2060, will the energy come from to either mine or recycle the raw materials, and to rebuild, reinstall and maintain the next iteration of a renewable energy system?

There is currently no plan for this replacement. It is a serious misnomer to call these energy technologies “renewable”. They are not as they rely on considerable raw material inputs and fossil energy for their production and never ending replacement.

New Zealand is, of course, blessed with an unusually high level of hydro electric and geothermal power. New Zealand currently uses over 170 GJ of total energy per capita, 40 percent of which is “renewable”. This provides approximately 70 GJ of “renewable” energy per capita with our current population.

This is the average global per capita energy level from all sources across all nations, as calls for 100% renewable energy globally emphasize. Several nations operate with roughly this amount of total energy per capita that New Zealand can generate just from “renewables”.

It is worth reflecting on the 170 GJ of total energy use we currently consume. Different studies give very different results regarding what levels are necessary for a good life.

For a complex industrial society such as ours, 100 GJ pc is said to be necessary for a high levels of wellbeing, determined both subjectively (life satisfaction/ happiness measures), and objectively (e.g. infant mortality levels, female morbidity as an index of population health, access to nutritious food and educational and health resources, etc). These studies do not take into account the large amount of energy that is wasted either through inefficient technologies, or frivolous use, which effective decarbonization strategies seek to reduce.

Other studies that consider the minimal energy needed for wellbeing suggest a much lower level of per capita energy consumption is required. These studies take a different approach and focus on ensuring basic wellbeing is maintained, but not necessarily with all the trappings of a complex industrial society. Their results indicate a level of approximately 20 GJ per capita is adequate.

In either case, we in New Zealand are wasting a lot of energy, both in terms of the efficiency of our technologies (see the Losses and Own Use info above), and also in our uses which do not contribute to wellbeing (think of the private vehicle travel that could be done by active or public transport – if we had good infrastructure in place).

We in New Zealand need a national dialogue about our future. And energy availability is only one aspect. We need to discuss what our carrying capacity is, what level of consumption is sustainable for our population, and whether we wish to make adjustments in either our per capita consumption or our population. Both together determine whether we are on the sustainable side of carrying capacity. Currently we are on the unsustainable side, meaning our way of life cannot endure. Not a good look for being a good ancestor.

The current trajectory of the Government and Electricity Authority appears to be grossly unsustainable. At the very least they should be able to answer the questions posed here about the GHG emissions from implementing a totally renewable energy system, the net energy of such a system, and the related environmental and social consequences.

Public dialogue is critical to collectively working out our future. Allowing the current profit-driven trajectory to unfold is a recipe for disasters for our children and grandchildren.

Being silent on these issues amounts to complicity in allowing short-term financial interests and an addiction to convenience jeopardise a genuinely secure and resilient future. Let’s get some answers from the Government and Electricity Authority to critical questions about energy security.

 

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CALIFORNIA: Why your electricity prices are soaring

California Electricity Prices are surging across PG&E, SCE, and SDG&E territories, driven by fixed grid costs, wildfire mitigation, CARE subsidies, and Net Energy Metering, burdening low-income renters and increasing statewide utility debt, CPUC reports show.

 

Key Points

High rates driven by fixed grid costs and policies, burdening low-income customers across PG&E, SCE, and SDG&E.

✅ Fixed costs: transmission, distribution, wildfire mitigation

✅ Solar NEM shifts grid costs onto remaining ratepayers

✅ CPUC, CARE, LIHEAP aim to relieve rising utility debt

 

California's electricity prices are among the highest in the country, new research says, and those costs are falling disproportionately on a customer base that's already struggling to pay their bills.

PG&E customers pay about 80 percent more per kilowatt-hour than the national average, according to a study by the energy institute at UC Berkeley's Haas Business School with the nonprofit think tank Next 10. The study analyzed the rates of the state's three largest investor-owned utilities and found that Southern California Edison charged 45 percent more than the national average, while San Diego Gas & Electric charged double. Even low-income residents enrolled in the California Alternate Rates for Energy program paid more than the average American.

"California's retail prices are out of line with utilities across the country," said UC Berkeley assistant professor and study co-author Meredith Fowlie, citing Hawaii and some New England states among the outliers with even higher rates. "And they're increasing, as regulators face calls for action across the state."


So why are prices so high?
One reason is that California's size and geography inflate the "fixed" costs of operating its electric system, even as the state considers revamping electricity rates to clean the grid in parallel, which include maintenance, generation, transmission, and distribution as well as public programs like CARE and wildfire mitigation, according to the study. Those costs don't change based on how much electricity residents consume, yet between 66 and 77 percent of Californians' electricity bills are used to offset the costs of those programs, the study found.

These are legitimate expenses, Fowlie said. However, because lower-income residents use only moderately less electricity than higher income households, they end up with a disproportionate share of the burden, according to the study. And while the bills of older, wealthier Californians continue to decrease as they adopt cost-efficient alternatives like the state's Net Energy Metering solar program and the resulting solar power cost shift dynamic, costs will keep rising for a shrinking customer base composed mostly of low- and middle-income renters who still use electricity as their main energy source.

"When households adopt solar, they're not paying their fair share," Fowlie said. While solar users generate power that decreases their bills, they still rely on the state's electric grid for much of their power consumption - without paying for its fixed costs like others do.

"As this continues it's going to make electricity even more unaffordable," said F. Noel Perry, founder of Next 10, which funds nonpartisan research on the economy and environment.

PG&E this month raised its electricity rates 3.7 percent, amounting to a $5.01 a month increase for the average residential customer, who now pays $138.85 a month for electricity. It was the second increase this year, as regulators consider major changes to electric bills statewide, said Mark Toney, executive director of The Utility Reform Network, who noted that higher rates are particularly difficult for those who have lost their jobs in the pandemic. The California Public Utilities Commission last year approved a PG&E plan for more incremental increases through Dec. 31, 2022.

PG&E spokesperson Kristi Jourdan said in an email statement that the company was committed to keeping prices as low as possible as the state weighs income-based flat-fee utility bills proposals, and that although some programs are meant to be subsidized through rates, "in other cases, given that some customers have greater access to energy alternatives, the remaining customers - often those with limited means - are left paying unintended subsidies."

The costs quickly became overwhelming for Fretea Sylver, who rents a small house in Castro Valley and lost much of her work as the owner of a small woodwork business early in the pandemic. "They're little tiny changes but they accumulate. You turn around and you're like wait a second, why is my bill $20 more?," Sylver said. "And you have to pay it, no matter what."

Many more are unable to pay. Between February and December of last year, Californians accumulated more than $650 million in late payments from their utility providers, according to an analysis by the CPUC. In 2019, utility debt fell $71,646,869 from the prior year.

Sylver, who was on unemployment for 10 months last year, accumulated over $600 in unpaid PG&E bills. "We sort of went into a bit of debt, having to use credit cards and loans to sustain what we had to pay for. We're trying to catch up," Sylver said. The family received some help from the federal Low-Income Home Energy Assistance Program, which provides up to $1,000 to those who are late on their utility bills.

The study identified improvements to make California's power grid more equitable, such as income-based fixed electricity charges for the grid's cost that are based on income. Republican state senators this week called on the state to use federal relief money to forgive the billions Californians owe in utility debt, even as some lawmakers move to overturn income-based utility charges amid ongoing debate. Californians are currently protected by a statewide moratorium on disconnection for nonpayment of electricity bills through June 30. The CPUC this month began taking public input on the issue of how to grant some relief to those who have fallen behind on their utility bills.

This article is part of the California Divide, a collaboration among newsrooms examining income inequality and economic survival in California.

 

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Residential electricity use -- and bills -- on the rise thanks to more working from home

Work From Home Energy Consumption is driving higher electricity bills as residential usage rises. Smart meter data, ISO-New-England trends, and COVID-19 telecommuting show stronger power demand and sensitivity to utility rates across regions.

 

Key Points

Higher household electricity use from telecommuting, shifting load to residences and raising utility bills.

✅ Smart meters show 5-22 percent residential usage increases.

✅ Commercial demand fell as home cooling and IT loads rose.

✅ Utility rates and AC use drive bill spikes during summer.

 

Don't be surprised if your electric bills are looking higher than usual, with a sizable increase in the amount of power that you have used.

Summer traditionally is a peak period for electricity usage because of folks' need to run fans and air-conditioners to cool their homes or run that pool pump. But the arrival of the coronavirus and people working from home is adding to amount of power people are using.

Under normal conditions, those who work in their employer's offices might not be cooling their homes as much during the middle of the day or using as much electricity for lights and running computers.

For many, that's changed.

Estimates on how much of an increase residential electric customers are seeing as result of working from home vary widely.

ISO-New England, the regional electric grid operator, has seen a 3 percent to 5 percent decrease in commercial and industrial power demand, even as the grid overseer issued pandemic warnings nationally. The expectation is that much of that decrease translates into a corresponding increase in residential electricity usage.

But other estimates put the increase in residential electricity usage much higher. A Washington state company that makes smart electric meters, Itron, estimates that American households are using 5 percent to 10 percent more electricity per month since March, when many people began working from home as part of an effort to prevent the spread of the coronavirus.

Another smart metering company, Cambridge, Mass.-based Sense, found that average home electricity usage increased 22 percent in April compared to the same period in 2019, a reflection of people using more electricity while they stayed home. Based on its analysis of data from 5,000 homes across 30 states, Sense officials said a typical customer's monthly electric bill increased by between $22 and $25, with a larger increase for consumers in states with higher electricity rates.

Connecticut-specfic data is harder to come by.

Officials with Orange-based United Illuminating declined to provide any customer usage data, though, like others in the power industry, they did acknowledge that residential customers are using more electricity. And the state's other large electric distribution utility, Eversource, was unable to provide any recent data on residential electric usage. The company did tell Connecticut utility regulators there was a 3 percent increase in residential power usage for the week of March 21 compared to the week before.

Over the same time period, Eversource officials saw a 3 percent decrease in power usage by commercial and industrial customers.

Separately, nuclear plant workers raised concerns about pandemic precautions at some facilities, reflecting operational strains.

Alan Behm of Cheshire said he normally uses 597 kilowatt hours of electricity during an average month. But in April of this year, the amount of electricity he used rose by nearly 51 percent.

With many offices closed, the expense of heating, cooking and lighting is being shifted from employer to employee, and some utilities such as Manitoba Hydro have pursued unpaid days off to trim costs during the pandemic. And one remote work expert believes some companies are recognizing the burden those added costs are placing on workers -- and are trying to do something about it.

Technology giant Google announced in late May that it was giving employees who work from home $1,000 allowances to cover equipment costs and other expenses associated with establishing a home office.

Moe Vela, chief transparency officer for the New York City-based computer software company TransparentBusiness, said the move by Google executives is a savvy one.

"Google is very smart to have figured this out," Vela said. "This is what employees want, especially millenials. People are so much happier to be working remotely, getting those two to three hours back per day that some people spend getting to and from work is so much more important than a stipend."

Vela predicted that even after a vaccine is found for the corona virus, one of the key worklife changes is likely to be a broader acceptance of telework and working from home.

Beyond the immediate shifts, more young Canadians would work in electricity if awareness improved, pointing to future talent pipelines.

"I think that's where we're headed," he said. "I think it will make an employer more attractive as they try to attract talent from around the world."

Vela said employers save an average of $11,000 per year for each employee they have working from home.

"It would be a brilliant move if a company were to share some of that amount with employees," he said. "I wouldn't do it if it's going to cause a company to not be there (in business) though."

The idea of a company sharing whatever savings it achieves by having employees work from home wasn't well received by many Connecticut residents who responded to questions posed via social media by Hearst Connecticut Media. More than 100 people responded and an overwhelming number of people spoke out against the idea.

"You are saving on gas and other travel related expenses, so the small increase in your electric bill shouldn't really be a concern," said Kathleen Bennett Charest of Wallingford.

Jim Krupp, also of Wallingford, said, "to suggest that the employers compensate the employees makes as much sense as suggesting that the employees should take a pay cut due to their reduced expenses for travel, day care, and eating lunch at work."

"Employers must still maintain their offices and incur all of the fixed expenses involved, including basic utilities, taxes and insurance," Krupp said. "The cost savings (for employers) that are realized are also offset by increased costs of creating and maintaining IT networks that allow employees to access their work sites from home and the costs of monitoring and managing the work force."

Kiki Nichols Nugent of Cheshire said she was against the idea of an employee trying to get their employer to pay for the increased electricity costs associated with working from home.

"I would not nickle and dime," Nugent said. "If companies are saving on electricity now, maybe employers will give better raises next year."

New Haven resident Chris Smith said he is "just happy to have a job where I am able to telecommute."

"When teleworking becomes more the norm, either now or in the future, we may see increased wages for teleworkers either for the lower cost to the employer or for the increase in productivity it brings," Smith said.

 

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BC Hydro rebate and B.C. Affordability Credit coming as David Eby sworn in as premier

BC Affordability & BC Hydro Bill Credits provide inflation relief and cost of living support, lowering electricity bills for families and small businesses through automatic utility credits and income-tested tax rebates across British Columbia.

 

Key Points

BC relief lowering electricity bills and offering rebates to help families and businesses facing inflation.

✅ $100 credit for residential BC Hydro users; applied automatically.

✅ Avg $500 bill credit for small and medium commercial customers.

✅ Income-based BC Affordability Credit via CRA in January.

 

The new B.C. premier announced on Friday morning families and small businesses in B.C. will get a one-time cost of living credit on their BC Hydro bill this fall, and a new B.C. Affordability Credit in January.

Eby focused on the issue of affordability in his speech following being sworn in as B.C.’s 37th premier, including electricity costs addressed by BC Hydro review recommendations that aim to keep power affordable.

A BC Hydro bill credit of $100 will be provided to all eligible residential and commercial electricity customers, including those who receive their electricity service indirectly from BC Hydro through FortisBC or a municipal utility.

“People and small businesses across B.C. are feeling the squeeze of global inflation,” Eby said.

“It’s a time when people need their government to continue to be there for them. That’s why we’re focused on helping people most impacted by the rising costs we’re seeing around the world – giving people a bit of extra credit, especially at a time of year when expenses can be quick to add up.”

Eby takes over as premier of the province with a growing number of concerns piling up on his plate, even as the province advances grid development and job creation projects to support long-term growth.

Economists in the province have warned of turbulent economic times ahead due to global economic pressures and power supply challenges tied to green energy ambitions.

The one-time $100 cost of living credit works out to approximately one month of electricity for a family living in a detached home or more than two months of electricity for a family living in an apartment.

Commercial ratepayers, including small and medium businesses like restaurants and tourism operators, will receive a one-time bill credit averaging $500 as B.C. expands EV charging infrastructure to accelerate electrification.

The amount will be based on their prior year’s electricity consumption.

British Columbians will have the credit automatically applied to their electricity accounts.

BC Hydro customers will have the credit applied in early December. Customers of FortisBC and municipal utilities will likely begin to see their bill credits applied early in the new year.

‘I proudly and unreservedly turn to the tallest guy in the room’: John Horgan on David Eby

The B.C. Affordability Credit is separate and will be based on income.

Eligible people and families will automatically receive the new credit through the Canada Revenue Agency, the same way the enhanced Climate Action Tax Credit was received in October.

An eligible person making an income of up to $36,901 will receive the maximum BC Affordability Credit with the credit fully phasing out at $79,376.

An eligible family of four with a household income of $43,051 will get the maximum amount, with the credit fully phasing out by $150,051.

This additional support means a family of four can receive up to an additional $410 in early January 2023 to help offset some of the added costs people are facing, while EV owners can access more rebates for home and workplace charging to reduce transportation expenses.

“Look for B.C.’s new Affordability Credit in your bank account in January 2023,” Eby said.

“We know it won’t cover all the bills, but we hope the little bit extra helps folks out this winter.”

Eby’s swearing-in marks a change at the premier’s office but not a shift in focus.

The premier expects to continue on with former premier John Horgan’s mandate with a focus on affordability issues and clean growth supported by green energy investments from both levels of government.

In a ceremony held in the Musqueam Community Centre, Eby made a commitment to make meaningful improvements in the lives of British Columbians and continue work with First Nations communities, with clean-tech growth underscored by the B.C. battery plant announcement made with the prime minister.

The ceremony was the first-ever swearing-in hosted by a First Nation in British Columbia.

“British Columbia is a wonderful place to call home,” Eby said.

“At the same time, people are feeling uncertain about the future and worried about their families. I’m proud of the work done by John Horgan and our government to put people first. And there’s so much more to do. I’m ready to get to work with my team to deliver results that people will be able to see and feel in their lives and in their communities.”

 

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Price Spikes in Ireland Fuel Concerns Over Dispatachable Power Shortages in Europe

ISEM Price Volatility reflects Ireland-Northern Ireland grid balancing pressures, driven by dispatchable power shortages, day-ahead market dynamics, renewable shortfalls, and interconnector constraints, affecting intraday trading, operational reserves, and cross-border electricity flows.

 

Key Points

ISEM price volatility is Irish power price swings from grid balancing stress and limited dispatchable capacity.

✅ One-off spike linked to plant outage and low renewables

✅ Day-ahead market settling; intraday trading integration pending

✅ Interconnectors and reserves vital to manage adequacy

 

Irish grid-balancing prices soared to €3,774 ($4,284) per megawatt-hour last month amid growing concerns over dispatchable power capacity across Europe.

The price spike, triggered by an alert regarding generation losses, came only four months after Ireland and Northern Ireland launched an Integrated Single Electricity Market (ISEM) designed to make trading more competitive and improve power distribution across the island.

Evie Doherty, senior consultant for Ireland at Cornwall Insight, a U.K.-based energy consultancy, said significant price volatility was to be expected while ISEM is still settling down, aligning with broader 2019 grid edge trends seen across markets.

When the U.K. introduced a single market for Great Britain, called British Electricity Trading and Transmission Arrangements, in 2005, it took at least six months for volatility to subside, Doherty said.

In the case of ISEM, “it will take more time to ascertain the exact drivers behind the high prices,” she said. “We are being told that the day-ahead market is functioning as expected, but it will take time to really be able to draw conclusions on efficiency.”

Ireland and Northern Ireland have been operating with a single market “very successfully” since 2007, said Doherty. Although each jurisdiction has its own regulatory authority, they make joint decisions regarding the single market.

ISEM, launched in October 2018, was designed to help include Ireland and Northern Ireland day-ahead electricity prices in a market pricing system called the European Union Pan-European Hybrid Electricity Market Integration Algorithm.

In time, ISEM should also allow the Irish grids to participate in European intraday markets, and recent examples like Ukraine's grid connection underline the pace of integration efforts across Europe. At present, they are only able to do so with Great Britain. “The idea was to...integrate energy use and create more efficient flows between jurisdictions,” Doherty said.

EirGrid, the Irish transmission system operator, has reported that flows on its interconnector with Northern Ireland are more efficient than before, she said.

The price spike happened when the System Operator for Northern Ireland issued an alert for an unplanned plant outage at a time of low renewable output and constraints on the north-south tie-line with Ireland, according to a Cornwall Insight analysis.

 

Not an isolated event

Although it appears to have been a one-off event, there are increasing worries that a shortage of dispatchable power could lead to similar situations elsewhere across Europe, as seen in Nordic grid constraints recently.

Last month, newspaper Frankfurter Allgemeine Zeitung (FAZ) reported that German industrial concerns had been forced to curtail more than a gigawatt of power consumption to maintain operational reserves on the grid in December, after renewable production fell short of expectations and harsh weather impacts strained systems elsewhere.

Paul-Frederik Bach, a Danish energy consultant, has collected data showing that this was not an isolated incident. The FAZ report said German aluminum smelters had been forced to cut back on energy use 78 times in 2018, he noted.

Energy availability was also a concern last year in Belgium, where six out of seven nuclear reactors had been closed for maintenance. The closures forced Belgium to import 23 percent of its electricity from neighboring countries, Bach reported.

In a separate note, Bach revealed that 11 European countries that were net importers of energy had boosted their imports by 26 percent between 2017 and 2018. It is important to note that electricity imports do not necessarily imply a shortage of power, he stated.

However, it is also true that many European grid operators are girding themselves for a future in which dispatchable power is scarcer than today.

EirGrid, for example, expects dispatchable generation and interconnection capacity to drop from 10.6 gigawatts in 2018 to 9 gigawatts in 2027.

The Swedish transmission system operator Svenska Kraftnät, meanwhile, is forecasting winter peak power deficits could rise from 400 megawatts currently to 2.5 gigawatts in 2020-21.

Research conducted by the European Network of Transmission System Operators for Electricity, suggests power adequacy will fall across most of Europe up to 2025, although perhaps not to a critical degree.

The continent’s ability to deal with the problem will be helped by having more efficient trading systems, Bach told GTM. That means developments such as ISEM could be a step in the right direction, despite initial price volatility.

In the long run, however, Europe will need to make sure market improvements are accompanied by investments in HVDC technology and interconnectors and reserve capacity. “Somewhere there must be a production of electricity, even when there is no wind,” said Bach. 

 

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Energy UK - Switching surge continues

UK Energy Switching Surge sees 600,000 customers change suppliers in October, driven by competition, the Energy Switch Guarantee, and better tariffs, with Electralink's DTN supporting customer switching and Ofgem oversight.

 

Key Points

A rise in UK customers switching electricity suppliers in October, driven by competition and the Energy Switch Guarantee.

✅ 600,000 switches recorded in October

✅ 32% moved to small and mid-tier suppliers

✅ Energy Switch Guarantee assures simple, safe transfers

 

More than 600,000 customers took steps to save on their energy bills this winter by switching electricity provider in October, as forecasts such as a 16% bill decrease in April offer further encouragement, the latest figures from Energy UK reveal.

A third (32 per cent) of those changing providers in October moved to small and mid-tier suppliers.

Regional markets have seen changes too, including Irish electricity price increases that highlight wider cost pressures.

With recent research showing that that nine in ten energy switchers were happy with the process of changing suppliers and with the reassurance provided by the Energy Switch Guarantee - a series of commitments ensuring switches are simple, speedy and safe - and amid MPs proposing price restrictions to protect consumers, more and more customers are now confident when looking to move.

Lawrence Slade, chief executive of Energy UK said: 'Switching continues to surge with over 600,000 customers changing supplier to find a better deal last month. Many more will have made savings by checking they are on the best deal with their current supplier. It only takes a few minutes to do this and with over 55 suppliers across the market, there's never been more competition or choice.'

Around 75 per cent of the market are signatories of the Guarantee. This includes: British Gas, Bulb Energy, E.ON, EDF Energy, First Utility, Flow Energy, npower, Octopus Energy, Pure Planet, Sainsbury's Energy, Scottish Power, So Energy and Tonik Energy.

The switching data is supplied by Electralink who provides a secure service to transfer data between the electricity market participants. The company operates the Data Transfer Network (DTN) which underpins customer switching, meter interoperability and other business processes critical to a competitive electricity market, where knowing where your electricity comes from can support informed choices.

The data referenced in these reports is since our collection of data only and is for electricity only.

These figures do not include internal electricity switching, and statistics on this from the larger suppliers and on Standard Variable Tariffs can be viewed on the Ofgem website, while ministers consider ending the gas-electricity price link to reduce bills.

 

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