Too soon for EVs, says analyst

Manitoba Crypto Mining Electricity Pause signals a moratorium to manage grid strain, Manitoba Hydro capacity, infrastructure costs, and electricity rates, while policymakers evaluate sustainable energy demand, and planning for data centers and blockchain operations.

Key Points

A temporary halt on mining power hookups in Manitoba to assess grid impacts, protect rates, and plan sustainable use.

✅ Applies only to new service requests; existing sites unaffected

✅ Addresses grid strain, infrastructure costs, electricity rates

✅ Enables review with Manitoba Hydro for sustainable policy

The Manitoba government has temporarily suspended approving new electricity service connections for cryptocurrency mining operations, a step similar to BC Hydro's suspension seen in a neighboring province.

The Original Pause

The pause was initially imposed in November 2022 due to concerns that the rapid influx of cryptocurrency mining operations could place significant strain on the province's electrical grid. Manitoba Hydro, the province's primary electric utility, which has also faced legal scrutiny in the Sycamore Energy lawsuit, warned that unregulated expansion of the industry could necessitate billions of dollars in infrastructure investments, potentially driving up electricity rates for Manitobans.

The Extended Pause Offers Time for Review

The extension of the pause is meant to provide the government and Manitoba Hydro with more time to assess the situation thoroughly and develop a long-term solution addressing the challenges and opportunities presented by cryptocurrency mining, including evaluating emerging options such as modular nuclear reactors that other jurisdictions are studying. The government has stated its commitment to ensuring that the long-term impacts of the industry are understood and don't unintentionally harm other electricity customers.

What Does the Pause Mean?

The pause does not affect existing cryptocurrency operations but prevents the establishment of new ones.  It applies specifically to requests for electricity service that haven't yet resulted in agreements to construct infrastructure or supply electricity, and it comes amid regional policy shifts like Alberta ending its renewable moratorium that also affect grid planning.

Concerns About Energy Demands

Cryptocurrency mining involves running high-powered computers around the clock to solve complex mathematical problems. This process is incredibly energy-intensive. Globally, the energy consumption of cryptocurrency networks has drawn scrutiny for its environmental impact, with examples such as Iceland's mining power use illustrating the scale. In Manitoba, concern focuses on potentially straining the electrical grid and making it difficult for Manitoba Hydro to plan for future growth.

Other Jurisdictions Taking Similar Steps

Manitoba is not alone in its cautionary approach to cryptocurrency mining. Several other regions and utilities have implemented restrictions or are exploring limitations on how cryptocurrency miners can access electricity, including moves by Russia to ban mining amid power deficits. This reflects a growing awareness among policymakers about the potentially destabilizing impact this industry could have on power grids and electricity markets.

Finding a Sustainable Path Forward

Manitoba Hydro has stated that it is open to working with cryptocurrency operations but emphasizes the need to do so in a way that protects existing ratepayers and ensures a stable and reliable electricity system for all Manitobans, while recognizing market uncertainties highlighted by Alberta wind project challenges in a neighboring province. The government's extension of the pause signifies its intention to find a responsible path forward, balancing the potential for economic development with the necessity of safeguarding the province's power supply.

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Ukraine Winter Energy Resilience focuses on energy security, grid repairs, renewable power, EU support, heating reliability, electricity imports, and conservation measures to stabilize infrastructure and protect households amid conflict and severe cold.

Key Points

A strategy to secure heat and power via repairs, renewables, imports, and conservation during wartime winter.

✅ Grid repairs and hardening of power plants and transmission lines

✅ Diversified supply: renewables, electricity imports, fuel reserves

✅ Public conservation to cut peak demand and safeguard essential services

As winter approaches, Ukraine is bracing for a challenging season, especially in the energy sector amid global energy instability and price pressures, which has been heavily impacted by the ongoing conflict with Russia. With the weather forecast predicting colder temperatures, the Ukrainian government is ramping up efforts to secure energy supplies and bolster infrastructure, aiming to ensure that citizens have access to heating and electricity during the harsh months ahead.

The Energy Landscape in Ukraine

The conflict has severely disrupted Ukraine’s energy infrastructure, leading to widespread damage and inefficiencies. Key facilities, including power plants and transmission lines, have been targeted amid energy ceasefire violations reported by both sides, resulting in significant energy shortages. As a response, the government has implemented a series of measures aimed at stabilizing the energy sector, ensuring that the nation can withstand the winter months.

One of the primary strategies has been the repair and reinforcement of energy infrastructure. Officials have prioritized critical facilities that are essential for electricity generation and distribution. Emergency repairs and upgrades are being carried out to restore functionality and improve resilience against potential attacks.

In addition to repairing existing infrastructure, Ukraine is actively seeking to diversify its energy sources. This includes increasing reliance on renewable energy, such as wind and solar, which can be less susceptible to disruption. The shift toward renewables not only enhances energy security and supports moving away from fossil fuels in line with Ukraine's long-term environmental goals.

International Support and Collaboration

Ukraine's challenges have not gone unnoticed on the international stage. Countries and organizations around the world have pledged energy security support to help Ukraine fortify its energy sector. This assistance includes financial aid, technical expertise, and the provision of materials needed for infrastructure repairs.

The European Union, in particular, has been a key ally, providing both immediate and long-term support to Ukraine's energy efforts. The EU's commitment to helping Ukraine transition to a more sustainable energy model, including steps toward ENTSO-E synchronization to bolster grid stability, is reflected in various initiatives aimed at increasing energy efficiency and integrating renewable sources.

Furthermore, international organizations have mobilized resources to assist in the restoration of damaged infrastructure. This collaboration not only enhances Ukraine's energy capabilities but also strengthens ties with global partners, fostering a sense of solidarity amidst the ongoing conflict.

Preparing for Winter Challenges

As temperatures drop, the demand for heating will surge, putting additional pressure on an already strained energy system. To address this, the Ukrainian government is urging citizens to prepare for potential shortages. Officials are promoting energy conservation measures, encouraging households to reduce consumption and use energy more efficiently.

Public awareness campaigns are being launched to educate citizens about the importance of energy saving and the steps they can take to minimize their energy use and prevent outages during peak demand. These initiatives aim to foster a collective sense of responsibility as the nation braces for the winter ahead.

In addition to conservation efforts, the government is exploring alternative energy supplies. This includes negotiating with neighboring countries for electricity imports and enhancing domestic production where feasible. By securing a diverse range of energy sources, Ukraine aims to mitigate the risk of shortages and ensure that essential services remain operational.

The Role of Resilience and Innovation

Despite the challenges, the resilience of the Ukrainian people and their commitment to overcoming adversity shine through. Communities are coming together to support one another, sharing resources and information to help navigate the difficulties of winter.

Innovative solutions are also emerging as part of the response to the energy crisis. Local initiatives aimed at promoting energy efficiency and the use of alternative energy sources are gaining traction. From community-led solar projects to energy-efficient building practices, Ukrainians are finding ways to adapt and thrive even in the face of uncertainty.

Looking Ahead

As Ukraine prepares for the winter months, the focus remains on ensuring energy security and maintaining the functionality of critical infrastructure. While challenges loom, the collective efforts of the government, international partners, and citizens demonstrate a strong commitment to resilience and adaptation.

In conclusion, the upcoming winter presents significant challenges for Ukraine's energy sector, yet the nation's determination to secure its energy future remains unwavering. With ongoing repairs, international support, and community innovation, Ukraine is working diligently to navigate the complexities of this winter, aiming to emerge stronger and more resilient in the face of adversity. The resilience shown today will be crucial as the country continues to confront the ongoing impacts of conflict and seeks to build a sustainable future.

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Calgary Winter Energy Usage Surge highlights soaring electricity demand, added megawatt-hours, and grid reliability challenges driven by extreme cold, heating loads, and climate change, with summer air conditioning also shifting seasonal peaks.

Key Points

A spike in Calgary's power use from extreme cold, adding 22k MWh and testing reliability as heating demand rises.

✅ +22,000 MWh vs Feb 2018 amid fourth-coldest February

✅ Heating loads spike; summer A/C now drives peak demand

✅ Grid reliability monitored; more solar and green resources ahead

February was so cold in Calgary that the city used enough extra energy to power 3,400 homes for a whole year, echoing record-breaking demand in B.C. in 2021 during severe cold.

Enmax Power Corporation, the primary electricity utility in the city, says the city 's energy consumption was up 22,000 megawatt hours last month compared with Februray 2018.

"We've seen through this cold period our system has held up very well. It's been very reliable," Enmax vice-president Andre van Dijk told the Calgary Eyeopener on Friday. "You know, in the absence of a windstorm combined with cold temperatures and that sort of thing, the system has actually held up pretty well."

The past month was the fourth coldest in Calgary's history, and similar conditions have pushed all-time high demand in B.C. in recent years across the West. The average temperature for last month was –18.1 C. The long-term average for February is –5.4 C.

Watching use, predicting issues

The electricity company monitors demand and load on a daily basis, always trying to predict issues before they happen, van Dijk said, and utilities have introduced winter payment plans to help customers manage bills during prolonged cold.

One of the issues they're watching is climate change, and how extreme temperatures and weather affect both the grid's reliability, as seen when Quebec shattered consumption records during cold snaps, and the public's energy use.

The colder it gets, the higher you turn up the heat. The hotter it is, the more you use air conditioning.

He also noted that using fuels then contributes to climate change, creating a cycle.

​"We are seeing variations in temperature and we've seen large weather events across the continent, across the world, in fact, that impact electrical systems, whether that's flooding, as we've experienced here, or high winds, tornadoes," van Dijk said.

"Climate change and changing weather patterns have definitely had had an impact on us as an electrical industry."

In 2012, he said, Calgary switched from using the most power during winter to using the most during summer, in large part due to air conditioning, he said.

"Temperature is a strong influencer of energy consumption and of our demand," van Dijk said.

Christmas tree lights have also become primarily LED, van Dijk said, which cuts down on a big energy draw in the winter.

He said he expects more solar and other green resources will be added into the electrical system in the future to mitigate how much the increasingly levels of energy use impact climate change, and to help moderate electricity costs in Alberta over time.

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New York Green New Deal accelerates clean energy and climate action, targeting carbon neutrality with renewable energy, offshore wind, solar, energy storage, and green jobs while advancing environmental justice and economy-wide decarbonization.

Key Points

New York's plan for 100% clean power by 2040 and 70% renewables by 2030, with a just transition and green jobs.

✅ 100% carbon-free electricity by 2040; 70% renewables by 2030

✅ 9,000 MW offshore wind and 3,000 MW energy storage targets

✅ Just transition focuses on jobs, equity, and affordability

New York Governor Andrew M. Cuomo announced the Green New Deal, a nation-leading clean energy and jobs agenda that will aggressively put New York State on a path to net-zero electricity and economy-wide carbon neutrality, is included in the 2019 Executive Budget. The landmark plan provides for a just transition to clean energy that spurs growth of the green economy and prioritizes the needs of low- to moderate-income New Yorkers.

"Climate change is a reality, and the consequences of delay are a matter of life and death. We know what we must do. Now we have to have the vision, the courage, and the competence to get it done," Governor Cuomo said. "While the federal government shamefully ignores the reality of climate change and fails to take meaningful action, we are launching the first-in-the-nation Green New Deal to seize the potential of the clean energy economy, set nation's most ambitious goal for carbon-free power, and ultimately eliminate our entire carbon footprint."

During Governor Cuomo's first two terms, New York banned fracking of natural gas, committed to phasing out coal power by 2020, mandated 50 percent renewable power by 2030, and established the U.S. Climate Alliance to uphold the Paris Agreement, reflecting the view that decarbonization is irreversible under a clean energy economy. Under the Reforming the Energy Vision agenda, New York has held the largest renewable energy procurements in U.S. history, solar has increased nearly 1,500 percent, and offshore wind is poised to transform the State's electricity supply to be cleaner and more sustainable. Through Governor Cuomo's Green New Deal, New York will take the bold next steps to secure a clean energy future that protects the environment for generations to come while growing the clean energy economy.

100 Percent Clean Power by 2040 Coupled with New Nation-leading Renewable Energy Mandates

The Green New Deal will statutorily mandate New York's power be 100 percent carbon-free by 2040, the most aggressive goal in the United States and five years ahead of a target recently adopted by California state policymakers. The cornerstone of this new mandate is a significant increase of New York's successful Clean Energy Standard mandate from 50 percent to 70 percent renewable electricity by 2030. This globally unprecedented ramp-up of renewable energy will include:

• Quadrupling New York's offshore wind target to 9,000 megawatts by 2035, up from 2,400 megawatts by 2030
• Doubling distributed solar deployment to 6,000 megawatts by 2025, up from 3,000 megawatts by 2023
• More than doubling new large-scale land-based wind and solar resources through the Clean Energy Standard
• Maximizing the contributions and potential of New York's existing renewable resources
• Deploying 3,000 megawatts of energy storage by 2030, up from 1,500 megawatts by 2025
• Develop an Implementation Plan to Make New York Carbon Neutral

The Green New Deal will create the State's first statutory Climate Action Council, comprised of the heads of relevant State agencies and other workforce, environmental justice, and clean energy experts to develop a comprehensive plan to make New York carbon neutral by significantly and cost-effectively reducing emissions from all major sources, including electricity, transportation, buildings, industry, commercial activity, and agriculture. The Climate Action Council will consider a range of possible options, including the feasibility of working with the U.S. Climate Alliance to create a new multistate emissions reduction program that covers all sectors of the economy, including transportation and industry, and exploring ways to leverage the successful Regional Greenhouse Gas Initiative to drive transformational investment in the clean energy economy and support a just transition.

At the national level, a historic climate deal is reshaping incentives and standards for clean energy deployment across the country.

The Green New Deal will also include an ambitious strategy to move New York's statewide building stock to carbon neutrality. The agenda includes:

Advancing legislative changes to strengthen building energy codes and establish appliance efficiency standards

Directing State agencies to ensure that their facilities uphold the strongest energy efficiency and sustainability standards

Developing a Net Zero Roadmap to chart a course to statewide carbon neutrality in buildings

A Multibillion Dollar Green New Deal Investment in the Clean Tech Economy that will Reduce Greenhouse Gas Emissions

Demonstrating New York's immediate commitment to implementing the nation's most ambitious clean energy agenda and creating high-quality clean energy jobs, Governor Cuomo is announcing $1.5 billion in competitive awards to support 20 large-scale solar, wind and energy storage projects across upstate New York. These investments will add over 1,650 megawatts of capacity and generate over 3,800,000 megawatt-hours of renewable energy annually - enough to power nearly 550,000 homes and create over 2,600 short and long-term jobs. Combined with the renewable energy projects previously announced under the Clean Energy Standard, New York has now awarded more than $2.9 billion to 46 projects statewide, enough to power over one million households.

The Green New Deal also includes new investments to jumpstart New York's offshore wind energy industry and support the State's world-leading target of 9,000 megawatts by 2035. New York will invest up to $200 million in port infrastructure to match private sector investment in regional development of offshore wind. This multi-location investment represents the nation's largest infrastructure commitment to offshore wind and solidifies New York's position as the hub of the burgeoning U.S. offshore wind industry.

These new investments build upon a $250 million commitment to electric vehicle infrastructure by the New York Power Authority's EVolve program, $3.5 billion in private investment in distributed solar driven by NYSERDA's NY-Sun program, and NY Green Bank transactions mobilizing nearly $1.75 billion in private capital for clean energy projects.

A Just Transition to a Clean Energy Economy

Deliver Climate Justice for Underserved Communities: The Green New Deal will help historically underserved communities prepare for a clean energy future and adapt to climate change by:

Giving communities a seat at the table by codifying the Environmental Justice and Just Transition Working Group into law and incorporating it into the planning process for the Green New Deal's implementation.

Directing the State's low-income energy task force to identify reforms to achieve greater impact of the public energy funds expended each year in order to increase the effect of funds and initiatives that target energy affordability to underserved communities.

Directing each of the State's ten Regional Economic Development Councils to develop an environmental justice strategy for their region.

Finance a Property Tax Compensation Fund to Help Communities Transition to the Clean Energy Economy: Governor Cuomo is introducing legislation to finance the State's $70 million Property Tax Compensation Fund to continue helping communities directly affected by the transition away from dirty and obsolete energy industries and toward the new clean energy economy. Specifically, this funding will protect communities impacted by the retirement of conventional power generation facilities.

Protect Labor Rights: To ensure creation of high-quality clean energy jobs, large-scale renewable energy projects supported by the Green New Deal will require prevailing wage, and the State's offshore wind projects will be supported by a requirement for a Project Labor Agreement.

Develop the Clean Tech Workforce: To prepare New York's workforce for the transition, New York State will take new steps to support workforce development, including establishing a New York State Advisory Council on Offshore Wind Economic and Workforce Development, as well as investing in an offshore wind training center that will provide New Yorkers with the skills and safety training required to construct this clean energy technology in New York.   

Richard Kauffman, Chairman of Energy and Finance for New York, said, "Governor Cuomo's Green New Deal will advance New York State further into the clean energy future, and we won't let the Trump Administration push us backwards. Governor Cuomo's new commitments ensure New York is the undisputed national clean energy and climate leader, and we will continue to build upon the foundations of the REV agenda to achieve a sustainable economy and healthy environment for generations of New Yorkers to come."

Alicia Barton, President and CEO, NYSERDA, said, "Climate scientists have made frighteningly clear that averting the worst effects of climate change will require bold action, not incremental steps, and Governor Cuomo's Green New Deal boldly goes where no others have before. His unwavering climate agenda includes the most aggressive clean energy target in U.S. history, the largest commitments to renewable energy and to offshore wind in the nation, a massive mobilization of clean energy jobs and an unprecedented investment in offshore wind port infrastructure. Together these actions make New York the clear national leader in the fight against climate change, and will show the world that New York can and will achieve a clean energy future for the sake of future generations."

DEC Commissioner Basil Seggos said, "The threat of climate change calls for bold action like Governor Cuomo's comprehensive agenda to make New York State carbon neutral. The Green New Deal ensures New York is continuing our nation-leading efforts to capitalize on the economic potential of the clean energy economy, while making sure those most vulnerable to climate change are benefitting from the state's efforts and investments. I look forward to working with my agency and authority partners on the Climate Action Council to develop and implement meaningful solutions to reduce greenhouse gas emissions from all sectors of our economy."  

John B. Rhodes, CEO, Department of Public Service, said, "With this nation-leading Green New Deal, Governor Cuomo puts New York on the path to fully clean electricity and to carbon neutrality with the strongest renewable energy goals in the nation. This will deliver the energy system that New York needs - cost-effective, reliable, and 100% clean.”

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Daimler Electric Strategy drives EV adoption with global battery factories, Mercedes-Benz electrified models, battery cells procurement, and major investments spanning vans, buses, trucks, and production capacity across Europe, Asia, and the USA.

Key Points

Daimler Electric Strategy is a multi-billion EV roadmap for batteries, factories, and 130 electrified Mercedes models.

✅ Eight battery factories across three continents

✅ EUR 10B for EV lineup; EUR 20B for battery cells

✅ 130 electrified variants plus vans, buses, trucks

Throughout 2018, we all witnessed the unprecedented volume of promises for a better future made by the giants of the auto industry. All say they've committed billions so that, within a decade, combustion engines will be on their way out.

The most active of all companies when talking about promises is Volkswagen, which, amid German plant closures, time and time again has said it will do this or that and completely change the meaning of car in the coming years. But there are other planning the same thing, possibly with even vaster resources.

Planning to end the year on a high note, Daimler detailed its plan for the electric future once again on Tuesday, this time making no secret of its gigantic size and scope.

As announced before, Daimler plans to build electric cars, but also manufacture electric batteries for its own and others’ use, and has launched a US energy storage company to support this strategy. These batteries will eventually be produced by Daimler in eight factories on three continents.

Batteries are already rolling off the lines in Kamenz, and a second facility will begin doing so next year. Two more factories will be built in Stuttgart-Untertürkheim, one at the company’s Sindelfingen site, and one each at the sites in Beijing (China), Bangkok (Thailand) and Tuscaloosa (USA).

In all, one billion EUR will be invested in the expansion of the global battery production network, but that is nothing compared to the 10 billion to be poured into the expansion of the Mercedes-Benz car fleet.

On top of that, 20 billion EUR will go towards the purchase of battery cells from producers all around the world, echoing other automakers' battery sourcing strategies worldwide over the next 12 years.

“After investing billions of euros in the development of the electric fleet and the expansion of our global battery network, we are now taking the next step,” said in a statement Dieter Zetsche, Daimler chairman of the board.

“With the purchase of battery cells for more than 20 billion euros, we are systematically pushing forward with the transformation into the electric future of our company.”

By 2022, the carmaker plans to launch 130 electrified variants of its cars, as cheaper, more powerful batteries become available, adding to them electric vans, buses and trucks. That pretty much means all the models and variants sold by Daimler globally will be at least partially powered by electricity.

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Nuclear Power Resilience During COVID-19 shows low-carbon electricity supporting renewables integration with grid flexibility, reliability, and inertia, sustaining decarbonization, stable baseload, and system security while prices fell and demand dropped across markets.

Key Points

It shows nuclear plants providing reliable, low-carbon power and supporting grid stability despite demand declines.

✅ Low prices challenge investment; lifetime extensions are cost-effective.

✅ Nuclear provides inertia, reliability, and dispatchable capacity.

✅ Market reforms should reward flexibility and grid services.

The COVID-19 pandemic has transformed the operation of power systems across the globe, including European responses that many argue accelerated the transition, and offered a glimpse of a future electricity mix dominated by low carbon sources.

The performance of nuclear power, in particular, demonstrates how it can support the transition to a resilient, clean energy system well beyond the COVID-19 recovery phase, and its role in net-zero pathways is increasingly highlighted by analysts today.

Restrictions on economic and social activity during the COVID-19 outbreak have led to an unprecedented and sustained decline in demand for electricity in many countries, in the order of 10% or more relative to 2019 levels over a period of a few months, thereby creating challenging conditions for both electricity generators and system operators (Fig. 1). The recent Sustainable Recovery Report by the International Energy Agency (IEA) projects a 5% reduction in global electricity usage for the entire year 2020, with a record 5.7% decline foreseen in the United States alone. The sustainable economic recovery will be discussed at today's IEA Clean Energy Transitions Summit, where Fatih Birol's call to keep options open will be prominent as IAEA Director General Rafael Mariano Grossi participates.

Electricity generation from fossil fuels has been hard hit, due to relatively high operating costs compared to nuclear power and renewables, as well as simple price-setting mechanisms on electricity markets. By contrast, low-carbon electricity prevailed during these extraordinary circumstances, with the contribution of renewable electricity rising in a number of countries as analyses see renewables eclipsing coal by 2025, due to an obligation on transmission system operators to schedule and dispatch renewable electricity ahead of other generators, as well as due to favourable weather conditions.

Nuclear power generation also proved to be resilient, reliable and adaptable. The nuclear industry rapidly implemented special measures to cope with the pandemic, avoiding the need to shut down plants due to the effects of COVID-19 on the workforce or supply chains. Nuclear generators also swiftly adapted to the changed market conditions. For example, EDF Energy was able to respond to the need of the UK grid operator by curtailing sporadically the generation of its Sizewell B reactor and maintain a cost-efficient and secure electricity service for consumers.

Despite the nuclear industry's performance during the pandemic, faced with significant decreases in demand, many generators have still needed to reduce their overall output appreciably, for example in France, Sweden, Ukraine, the UK and to a lesser extent Germany (Fig. 2), even as the nuclear decline debate continues in Europe. Declining demand in France up to the end of March already contributed to a 1% drop in first quarter revenues at EDF, with nuclear output more than 9% lower than in the year before. Similarly, Russia's Rosatom experienced a significant demand contraction in April and May, contributing to an 11% decline in revenues for the first five months of the year.

Overall, the competitiveness and resilience of low carbon technologies have resulted in higher market shares for nuclear, solar and wind power in many countries since the start of lockdowns (Fig. 3), and low-emissions sources to meet demand growth over the next three years. The share of nuclear generation in South Korea rose by almost 9 percentage points during the pandemic, while in the UK, nuclear played a big part in almost eliminating coal generation for a period of two months. For the whole of 2020, the US Energy Information Administration's Short-Term Energy Outlook sees the share of nuclear generation increasing by more than one percentage point compared to 2019. In China, power production decreased during January-February 2020 by more than 8% year on year: coal power decreased by nearly 9%, hydropower by nearly 12%. Nuclear has proved more resilient with a 2% reduction only. The benefits of these higher shares of clean energy in terms of reduced emissions of greenhouse gases and other air pollutants have been on full display worldwide over the past months.

Challenges for the future

Despite the demonstrated performance of a cleaner energy system through the crisis - including the capacity of existing nuclear power plants to deliver a competitive, reliable, and low carbon electricity service when needed - both short- and long-term challenges remain.

In the shorter term, the collapse in electricity demand has accelerated recent falls in electricity prices, particularly in Europe (Fig. 4), from already economically unsustainable levels. According to Standard and Poor's Midyear Update, the large price drops in Europe result from not only COVID-19 lockdown measures but also collapsing demand due to an unusually warm winter, increased supply from renewables in a context of lower gas prices and CO2 allowances . Such low prices further exacerbate the challenging environment faced by many electricity generators, including nuclear plants. These may impede the required investments in the clean energy transition, with longer term consequences on the achievement of climate goals.

For nuclear power, maintaining and extending the operation of existing plants is essential to support and accelerate the transition to low carbon energy systems. With a supportive investment environment, a 10-20 year lifetime extension can be realized at an average cost of US $30-40/MW*h, making it among the most cost-effective low-carbon options, while also maintaining dispatchable capacity and lowering the overall cost of the clean energy transition. The IEA Sustainable Recovery report indicates that without such extensions 40% of the nuclear fleet in developed economies may be retired within a decade, adding around US$ 80 billion per year to electricity bills. The IEA note the potential for nuclear plant maintenance and extension programmes to support recovery measures by generating significant economic activity and employment.

The need for flexibility

New nuclear power projects can provide similar economic and environmental benefits and applications beyond electricity, but will be all the more challenging to finance without strong policy support and more substantive power market reforms, including improved frameworks for remunerating reliability, flexibility and other services. The need for flexibility in electricity generation and system operation - a trend accelerated by the crisis - will increasingly characterize future energy systems over the medium to longer term.

Looking further ahead, while generators and system operators successfully responded to the crisis, the observed decline in fossil fuel generation draws attention to additional grid stability challenges likely to emerge further into the energy transition. Heavy rotating steam and gas turbines provide mechanical inertia to an electricity system, thereby maintaining its balance. Replacing these capacities with variable renewables may result in greater instability, poorer power quality and increased incidence of blackouts. Large nuclear power plants along with other technologies can fill this role, alleviating the risk of supply disruptions in fully decarbonized electricity systems.

The challenges created by COVID-19 have also brought into focus the need to ensure resilience is built-in to future energy systems to cope with a broader range of external shocks, including more variable and extreme weather patterns expected from climate change.

The performance of nuclear power during the crisis provides a timely reminder of its ongoing contribution and future potential in creating a more sustainable, reliable, low carbon energy system.

Data sources for electricity demand, generation and prices: European Network of Transmission System Operators for Electricity (Europe), Ukrenergo National Power Company (Ukraine), Power System Operation Corporation (India), Korea Power Exchange (South Korea), Operador Nacional do Sistema Eletrico (Brazil), Independent Electricity System Operator (Ontario, Canada), EIA (USA). Data cover 1 January to May/June.

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