PUC cools to idea of clean coal plant

By Knight Ridder Tribune


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Minnesota regulators came close to scrapping a plan to compel the state's energy companies to buy from a proposed $2 billion "clean coal" plant.

Citing growing disillusionment with coal, and assurances from several utilities that they have their energy needs covered, the Minnesota Public Utilities Commission nearly rescinded its Aug. 30 directive to the state's utility companies: that they try to buy from the proposed coal gasification plant when they go shopping for new power sources for the next 10 to 20 years.

The commission stopped short - for now - but only after a series of pessimistic prognoses for the Excelsior Energy plant proposed for Minnesota's Iron Range.

"We have a whole paradigm shift now," said commission Chairman Leroy Koppendrayer, pointing to news accounts that coal gasification plants have been delayed or canceled in Colorado, Florida and Arizona.

"We don't ever want to foreclose on the future," Commissioner Phyllis Reha said, "but I think we're all in agreement that what we have in front of us isn't going to fly."

It was the latest setback in a two-year process for Excelsior, including an administrative law judges' advisory ruling in April that the project is "not in the public interest."

Still, Excelsior is not without some victories. It received a $36 million clean-energy grant last spring, and it heard last month that it's on a short list for possible loan guarantees from the U.S. Department of Energy. Coal and carbon dioxide The 600-megawatt Excelsior plant would produce electricity through a new process called coal gasification.

Unlike traditional coal-burning plants, it has the potential to capture carbon dioxide, the most problematic greenhouse gas. The Excelsior plant, as proposed, will not initially capture that CO2 because it's expensive and because the plant has no place to store or send it. Developers say that will be a relatively easy retrofit; opponents say that until that happens, it is lit le better than traditional plants. Xcel Energy has long maintained that it won't need any energy from Excelsior in 2011, when the plant would open.

Minnesota Power said it can meet its energy demands with renewable energy sources through 2020.

A chief executive of Excelsior Energy challenged the utilities' projections after the hearing. "The commission took at face value the utilities' assertion that there will be no need for fossil (fuel) generation," Julie Jorgensen said.

But there will be shortages, Jorgensen said: "Then they will want to switch to natural gas generation, and it's bad policy to consume massive quantities of natural gas to generate power when consumers can't afford to heat their homes as it is."

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Operating record for Bruce Power as Covid-19 support Council announced

Bruce Power Life-Extension Programme advances Ontario nuclear capacity through CANDU Major Component Replacement, reliable operation milestones, supply chain retooling for COVID-19 recovery, PPE production, ventilator projects, and medical isotope supply security.

 

Key Points

A program to refurbish CANDU reactors, extend asset life, and mobilize Ontario nuclear supply chain and isotopes.

✅ Extends CANDU units via Major Component Replacement

✅ Supports COVID-19 recovery with PPE and ventilator projects

✅ Boosts Ontario energy reliability and medical isotopes

 

Canada’s Bruce Power said on 1 May that unit 1 at the Bruce nuclear power plant had set a record of 624 consecutive days of reliable operation – the longest since it was returned to service in 2012.

It exceeded Bruce 8’s run of 623 consecutive days between May 2016 and February 2018. Bruce 1, a Candu reactor, was put into service in 1977. It was shut down and mothballed by the former Ontario Hydro in 1997, and was refurbished and returned to service in 2012 by Bruce Power.

Bruce units 3 and 4 were restarted in 2003 and 2004. They are part of Bruce Power’s Life-Extension Programme, and future planning such as Bruce C project exploration continues across the fleet, with units 3 and 4 to undergo Major Component Replacement (MCR) Projects from 2023-28, adding about 30 years of life to the reactors.

The refurbishment of Bruce 6 has begun and will be followed by MCR Unit 3 which is scheduled to begin in 2023. Nuclear power accounts for more than 60% of Ontario’s supply, with Bruce Power providing more than 30%   of the province’s electricity.

Set up of Covid recovery council
On 30 April, Bruce Power announced the establishment of the Bruce Power Retooling and Economic Recovery Council to leverage the province’s nuclear supply chain to support Ontario’s fight against Covid-19 and to help aid economic recovery.

Bruce Power’s life extension programme is Canada’s second largest infrastructure project and largest private sector infrastructure programme. It is creating 22,000 direct and indirect jobs, delivering economic benefits that are expected to contribute $4 billion to Ontario’s GDP and $8-$11 billion to Canada’s gross domestic product (GDP), Bruce Power said.

“With 90% of the investment in manufactured goods and services coming from 480 companies in Ontario and other provinces, including recent manufacturing contracts with key suppliers, we can harness these capabilities in the fight against Covid-19, and help drive our economic recovery,” the company said.

“An innovative and dynamic nuclear supply chain is more important than ever in meeting this new challenge while successfully implementing our mission of providing clean, reliable, flexible, low-cost nuclear energy and a global supply of medical isotopes,” said Bruce Power president and CEO Mike Rencheck. “We are mobilising a great team with our extended supply chain, which spans the province, to assist in the fight against Covid-19 and to help drive our economic recovery in the future.”

Greg Rickford, the Minister of Energy, Mines, Northern Development, and Minister of Indigenous Affairs, said the launch of the council is consistent with Ontario’s focus to fight Covid-19 as a top priority and a look ahead to economic recovery, and initiatives like Pickering life extensions supporting long-term system reliability.

The creation of the Council was announced during a live event on Bruce Power's Facebook page, in which Rencheck was joined by Associate Minister of Energy Bill Walker and Rocco Rossi, the president and CEO of the Ontario Chamber of Commerce.

Walker reiterated the Government of Ontario’s commitment to nuclear power over the long term and to the life extension programme, including the Pickering B refurbishment as part of this strategy.

The Council, which will be formed for the duration of the pandemic and will include of all of Bruce Power’s Ontario-based suppliers, will focus on the continued retooling of the supply chain to meet front-line Covid-19 needs to contribute to the province’s economy recovery in the short, medium and long term.

New uses for nuclear medical applications will be explored, including isotopes for the sterilisation of medical equipment and long-term supply security.

The supply chain will be leveraged to support the health care sector through the rapid production of medical Personal Protection Equipment for front line-workers and large-scale PPE donations to communities as well as participation in pilot projects to make ventilators within the Bruce Power supply chain or help identify technology to better utilise existing ventilators;

“Buy Local” tools and approaches will be emphasised to ensure small businesses are utilised fully in communities where nuclear suppliers are located.

The production of hand sanitiser and other cleaning products will be facilitated for distribution to communities.

 

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Covid-19 puts brake on Turkey’s solar sector

Turkey Net Metering Suspension freezes regulator reviews, stalling rooftop solar permits and grid interconnections amid COVID-19, pausing licensing workflows, EPC pipelines, and electricity bill credits that drive commercial and household prosumer adoption.

 

Key Points

A pause on technical reviews freezing net metering applications and slowing rooftop solar deployment in Turkey.

✅ Monthly technical committee meetings suspended indefinitely

✅ Rooftop solar permits and grid interconnections on hold

✅ EPC firms urge remote evaluations for transparency

 

The decision by the Turkish Energy Market Regulatory Authority to halt part of the system of processing net metering applications risks bringing the only vibrant segment of the nation’s solar industry to a grinding halt, a risk amplified as global renewables face Covid-19 disruptions across markets.

The regulator has suspended monthly meetings of the committee which makes technical evaluations of net metering applications, citing concerns about the spread of Covid-19, which has already seen U.S. utility-scale solar face delays this year.

The availability of electricity bill credits for net-metering-approved households which inject surplus power into the grid, similar to how British households can sell power back to energy firms, has seen the rooftop projects the scheme is typically associated with remain the only source of new solar generation capacity in Turkey of late.

However the energy regulator’s decision to suspend technical evaluation committee meetings until further notice has seen the largely online licensing process for new solar systems practically cease; by contrast, Berlin is being urged to remove PV barriers to keep projects moving.

The Turkish solar industry has claimed the move is unnecessary, with solar engineering, procurement and construction services businesses pointing out the committee could meet to evaluate projects remotely. It has been argued such a move would streamline the application process and make it more transparent, regardless of the current public health crisis.

 

Net metering 

Turkey introduced net metering for rooftop installations last May and pv magazine has reported the specifics of the scheme, amid debates like New England's grid upgrade costs over who pays.

National grid operator Teias confirmed recently the country added 109 MW of new solar capacity in the first quarter, most of it net-metered rooftop systems, even as Australian distributors warn excess solar can strain local networks.

Net metering has been particularly attractive to commercial electricity users because the owners of small and medium-sized businesses pay more for power, as solar reshapes electricity prices in Northern Europe, than either households or large scale industrial consumers.

Until the recent technical committee decision by the regulator, the chief obstacle to net metering adoption had been the nation’s economic travails. The Turkish lira has lost 14% of its value since January and around 36% over the last two years. The central bank has been using its foreign reserves to support state lenders and the lira but the national currency slipped near an all-time low on Friday and foreign analysts predict the central bank reserves could run dry in July.

The level of exports shipped last month was down 41% on April last year and imports fell 28% by the same comparison, further depressing the willingness of companies to make capital investments such as rooftop solar.

 

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Are Norwegian energy firms ‘best in class’ for environmental management?

CO2 Tax for UK Offshore Energy Efficiency can accelerate adoption of aero-derivative gas turbines, flare gas recovery, and combined cycle power, reducing emissions on platforms like Equinor's Mariner and supporting net zero goals.

 

Key Points

A carbon price pushing operators to adopt efficient turbines, flare recovery, and combined cycle to cut emissions.

✅ Aero-derivative turbines beat industrial units on efficiency

✅ Flare gas recovery cuts routine flaring and fuel waste

✅ Combined cycle raises efficiency and lowers emissions

 

By Tom Baxter

The recent Energy Voice article from the Equinor chairman concerning the Mariner project heralding a ‘significant point of reference’ for growth highlighted the energy efficiency achievements associated with the platform.

I view energy efficiency as a key enabler to net zero, and alongside this the UK must start large-scale storage to meet system needs; it is a topic I have been involved with for many years.

As part of my energy efficiency work, I investigated Norwegian practices and compared them with the UK.

There were many differences, here are three;


1. Power for offshore installations is usually supplied from gas turbines burning fuel from the oil and gas processing plant, and even as the UK's offshore wind supply accelerates, installations convert that to electricity or couple the gas turbine to a machine such as a gas compressor.

There are two main generic types of gas turbine – aero-derivative and industrial. As the name implies aero-derivatives are aviation engines used in a static environment. Aero-derivative turbines are designed to be energy efficient as that is very import for the aviation industry.

Not so with industrial type gas turbines; they are typically 5-10% less efficient than a comparable aero-derivative.

Industrial machines do have some advantages – they can be cheaper, require less frequent maintenance, they have a wide fuel composition tolerance and they can be procured within a shorter time frame.

My comparison showed that aero-derivative machines prevailed in Norway because of the energy efficiency advantages – not the case in the UK where there are many more offshore industrial gas turbines.

Tom Baxter is visiting professor of chemical engineering at Strathclyde University and a retired technical director at Genesis Oil and Gas Consultants


2. Offshore gas flaring is probably the most obvious source of inefficient use of energy with consequent greenhouse gas emissions.

On UK installations gas is always flared due to the design of the oil and gas processing plant.

Though not a large quantity of gas, a continuous flow of gas is routinely sent to flare from some of the process plant.

In addition the flare requires pilot flames to be maintained burning at all times and, while Europe explores electricity storage in gas pipes, a purge of hydrocarbon gas is introduced into the pipes to prevent unsafe air ingress that could lead to an explosive mixture.

On many Norwegian installations the flare system is designed differently. Flare gas recovery systems are deployed which results in no flaring during continuous operations.

Flare gas recovery systems improve energy efficiency but they are costly and add additional operational complexity.


3. Returning to gas turbines, all UK offshore gas turbines are open cycle – gas is burned to produce energy and the very hot exhaust gases are vented to the atmosphere. Around 60 -70% of the energy is lost in the exhaust gases.

Some UK fields use this hot gas as a heat source for some of the oil and gas treatment operations hence improving energy efficiency.

There is another option for gas turbines that will significantly improve energy efficiency – combined cycle, and in parallel plans for nuclear power under the green industrial revolution aim to decarbonise supply.

Here the exhaust gases from an open cycle machine are taken to a separate turbine. This additional turbine utilises exhaust heat to produce steam with the steam used to drive a second turbine to generate supplementary electricity. It is the system used in most UK power stations, even as UK low-carbon generation stalled in 2019 across the grid.

Open cycle gas turbines are around 30 – 40% efficient whereas combined cycle turbines are typically 50 – 60%. Clearly deploying a combined cycle will result in a huge greenhouse gas saving.

I have worked on the development of many UK oil and gas fields and combined cycle has rarely been considered.

The reason being is that, despite the clear energy saving, they are too costly and complex to justify deploying offshore.

However that is not the case in Norway where combined cycle is used on Oseberg, Snorre and Eldfisk.

What makes the improved Norwegian energy efficiency practices different from the UK – the answer is clear; the Norwegian CO2 tax.

A tax that makes CO2 a significant part of offshore operating costs.

The consequence being that deploying energy efficient technology is much easier to justify in Norway when compared to the UK.

Do we need a CO2 tax in the UK to meet net zero – I am convinced we do. I am in good company. BP, Shell, ExxonMobil and Total are supporting a carbon tax.

Not without justification there has been much criticism of Labour’s recent oil tax plans, alongside proposals for state-owned electricity generation that aim to reshape the power market.

To my mind Labour’s laudable aims to tackle the Climate Emergency would be much better served by supporting a CO2 tax that complements the UK's coal-free energy record by strengthening renewable investment.

 

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Bitcoin consumes 'More electricity than Argentina' - Cambridge

Bitcoin energy consumption is driven by mining electricity demand, with TWh-scale power use, carbon footprint concerns, and Cambridge estimates. Rising prices incentivize more hardware; efficiency gains and renewables adoption shape sustainability outcomes.

 

Key Points

Bitcoin energy consumption is mining's electricity use, driven by price, device efficiency, and energy mix.

✅ Cambridge tool estimates ~121 TWh annual usage

✅ Rising BTC price incentivizes more mining hardware

✅ Efficiency, renewables, and costs shape footprint

 

"Mining" for the cryptocurrency is power-hungry, with power curtailments reported during heat waves, involving heavy computer calculations to verify transactions.

Cambridge researchers say it consumes around 121.36 terawatt-hours (TWh) a year - and is unlikely to fall unless the value of the currency slumps, even as Americans use less electricity overall.

Critics say electric-car firm Tesla's decision to invest heavily in Bitcoin undermines its environmental image.

The currency's value hit a record $48,000 (£34,820) this week. following Tesla's announcement that it had bought about $1.5bn bitcoin and planned to accept it as payment in future.

But the rising price offers even more incentive to Bitcoin miners to run more and more machines.

And as the price increases, so does the energy consumption, according to Michel Rauchs, researcher at The Cambridge Centre for Alternative Finance, who co-created the online tool that generates these estimates.

“It is really by design that Bitcoin consumes that much electricity,” Mr Rauchs told BBC’s Tech Tent podcast. “This is not something that will change in the future unless the Bitcoin price is going to significantly go down."

The online tool has ranked Bitcoin’s electricity consumption above Argentina (121 TWh), the Netherlands (108.8 TWh) and the United Arab Emirates (113.20 TWh) - and it is gradually creeping up on Norway (122.20 TWh).

The energy it uses could power all kettles used in the UK, where low-carbon generation stalled in 2019, for 27 years, it said.

However, it also suggests the amount of electricity consumed every year by always-on but inactive home devices in the US alone could power the entire Bitcoin network for a year, and in Canada, B.C. power imports have helped meet demand.

Mining Bitcoin
In order to "mine" Bitcoin, computers - often specialised ones - are connected to the cryptocurrency network.

They have the job of verifying transactions made by people who send or receive Bitcoin.

This process involves solving puzzles, which, while not integral to verifying movements of the currency, provide a hurdle to ensure no-one fraudulently edits the global record of all transactions.

As a reward, miners occasionally receive small amounts of Bitcoin in what is often likened to a lottery.

To increase profits, people often connect large numbers of miners to the network - even entire warehouses full of them, as seen with a Medicine Hat bitcoin operation backed by an electricity deal.

That uses lots of electricity because the computers are more or less constantly working to complete the puzzles, prompting some utilities to consider pauses on new crypto loads in certain regions.

The University of Cambridge tool models the economic lifetime of the world's Bitcoin miners and assumes that all the Bitcoin mining machines worldwide are working with various efficiencies.

Using an average electricity price per kilowatt hour ($0.05) and the energy demands of the Bitcoin network, it is then possible to estimate how much electricity is being consumed at any one time, though in places like China's power sector data can be opaque.
 

 

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Gaza electricity crisis:

Gaza Electricity Crisis drives severe power cuts in the Gaza Strip, as Hamas-PA tensions and Mahmoud Abbas's supply reductions under blockade spur fuel shortages, hospital strain, and soaring demand for batteries, LED lights, and generators.

 

Key Points

A prolonged Gaza power shortage from politics, blockade, and fuel cuts, disrupting daily life, hospitals, and water.

✅ Demand surges for batteries, LED lights, and generators

✅ PA cuts to Israel-supplied power deepen shortages

✅ Hospitals, water, and sanitation face critical strain

 

In Imad Shlayl’s electronics shop in Gaza City, the customers crowding his store are interested in only two products: LED lights and the batteries to power them.

In the already impoverished Gaza Strip, residents have learned to adapt to the fact that electricity is only available for between two and four hours a day.

But fresh anger was sparked when availability was cut further last month, at the request of the Palestinian president, Mahmoud Abbas, in an escalation of his conflict with Hamas, the Islamist group.

The shortages have defined how people live their lives, echoing Europe’s energy crisis in other regions: getting up in the middle of the night, if there is power, to run washing machines or turn on water pumps.

Only the wealthy few have frequent, long-lasting access to electricity, even as U.S. brownout risks highlight grid fragility, to power lights and fans and fridges, televisions and wifi routers, in Gaza’s stifling summer heat.

“We used to sell all sorts of things,” says Shlayl. “But it’s different these days. All we sell is batteries and chargers. Because the crisis is so deep we are selling 100 batteries a day when normally we would sell 20.”

Gaza requires 430 megawatts of power to meet daily demand, but receives only half that. Sixty megawatts are supplied by its solitary power station, now short on fuel, while the rest is provided through the Israel’s power sector and funded by Abbas’s West Bank-based Palestinian Authority (PA).

Abbas’s move to cut supplies to Gaza, which is already under a joint Israeli and Egyptian blockade – now in its 11th year – has quickly made him a hate figure among many Gazans, who question why he is punishing 2 million fellow Palestinians in what appears to be an attempt to force Hamas to relinquish control of the territory.

Though business is good for Shlayl, he is angry at the fresh shortages faced by Gazans which, as pandemic power shut-offs elsewhere have shown, affect all areas of life, from hospital emergency wards to clean water supplies.

“I’ve not done anything to be punished by anyone. It is the worst I can remember but we are expecting it to get worse and worse,” he said. “Not just electricity, but other things as well. We are in a very deep descent.”

As well as cutting electricity, the PA has cut salaries for its employees in Gaza by upwards of 30% , prompting thousands to protest on the streets of Gaza city.

Residents also blame Abbas for a backlog in processing the medical referral process for those needing to travel out of Gaza for treatment, although who is at fault in that issue is less clear cut.

The problems facing Gaza – where high levels of unemployment are endemic – is most obvious in the poorest areas.

In Gaza City’s al-Shati refugee camp, home to the head of Hamas’s political bureau, Ismail Haniyeh, whole housing blocks were dark, while in others only a handful of windows were weakly illuminated.

In the one-room kiosk selling pigeons and chickens that he manages, just off the camp’s main market, Ayman Nasser, 32, is sitting on the street with his friends in search of a sea breeze.

His face is illuminated by the light of his mobile phone. He has one battery-powered light burning in his shop.

“Part of the problem is that we don’t have any news. Who should we blame for this? Hamas, Israelis, Abbas?” he said.

 A Palestinian girl reads by candle light due to power cut at the Jabalia Camp in Gaza City
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 A Palestinian girl reads by candlelight due to a power cut at the Jabalia camp in Gaza City. Photograph: Anadolu Agency/Getty Images
His friend, Ashraf Kashqin, interrupts: “It is all connected to politics, but it is us who is getting played by the two sides.”

If there is a question that all the Palestinians in Gaza are asking, it is what the ageing and remote Abbas hopes to achieve, a dynamic also seen in Lebanon’s electricity disputes, not least whether he hopes the cuts will lead to an insurrection against Hamas following demonstrations linked to the power supply in January.

While a senior official in the Fatah-led government on the West Bank said last month that the aim behind the move by the PA – which has been paying $12m (£9m) a month for the electricity Israel supplies to Gaza – was to “dry up Hamas’s financial resources”, others are dubious about the timing, the motive and the real impact.

Among them are human rights groups, such as Amnesty International, who have warned it could turn Gaza’s long-running crisis into a major disaster already hitting hospitals and waste treatment plants.

“For 10 years the siege has unlawfully deprived Palestinians in Gaza of their most basic rights and necessities. Under the burden of the illegal blockade and three armed conflicts, the economy has sharply declined and humanitarian conditions have deteriorated severely. The latest power cuts risk turning an already dire situation into a full-blown humanitarian catastrophe,” said Magdalena Mughrabi, of the group.

Then there is the question of timing. “Abbas is probably the only one who knows why he is doing this to Gaza,” adds Mohameir Abu Sa’da, a political science professor at Al Azhar University and analyst.

“I honestly don’t buy what he has been saying for the last three months: that he will take exceptional measures against Hamas to put pressure on it to give up control of the Gaza Strip.

 

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Explainer: Europe gets ready to revamp its electricity market

EU Electricity Market Reform seeks to curb gas-driven volatility by expanding CfDs and PPAs, decoupling power from gas, and aligning consumer bills with low-cost renewables and nuclear, as Brussels advances market redesign.

 

Key Points

An EU plan to curb price spikes by expanding long-term contracts and tying bills to cheap renewables.

✅ Expands CfDs and PPAs to lock in predictable power prices

✅ Aims to decouple bills from gas-driven wholesale volatility

✅ Seeks investment certainty for renewables, nuclear, and grids

 

European Union energy ministers meet on Monday to debate upcoming power market reforms. Brussels is set to propose the revamp next month, but already countries are split over how to "fix" the energy system - or whether it needs fixing at all.

Here's what you need to know.


POST-CRISIS CHANGES
The European Commission pledged last year to reform the EU's electricity market rules, after record-high gas prices - caused by cuts to Russian gas flows - sent power prices soaring during an energy crisis for European companies and citizens.

The aim is to reform the electricity market to shield consumer energy bills from short-term swings in fossil fuel prices, and make sure that Europe's growing share of low-cost renewable electricity translates into lower prices, even though rolling back electricity prices poses challenges for policymakers.

Currently, power prices in Europe are set by the running cost of the plant that supplies the final chunk of power needed to meet overall demand. Often, that is a gas plant, so gas price spikes can send electricity prices soaring.

EU countries disagree on how far the reforms should go.

Spain, France and Greece are among those seeking a deep reform.

In a document shared with EU countries, seen by Reuters, Spain said the reforms should help national regulators to sign more long-term contracts with electricity generators to pay a fixed price for their power.

Nuclear and renewable energy producers, for example, would receive a "contract for difference" (CfD) from the government to provide power during their lifespan - potentially decades - at a stable price that reflects their average cost of production.

Similarly, France suggests, as part of a new electricity pricing scheme, requiring energy suppliers to sign long-term, fixed-price contracts with power generators - either through a CfD, or a private Power Purchase Agreement (PPA) between the parties.

French officials say this would give the power plant owner predictable revenue, while enabling consumers to have part of their energy bill comprised of this more stable price.

Germany, Denmark, Latvia and four other countries oppose a deep reform, and, as nine EU countries oppose reforms overall, have warned the EU against a "crisis mode" overhaul of a complex system that has taken decades to develop.

They say Europe's existing power market is functioning well, and has fostered years of lower power prices, supported renewable energy and helped avoid energy shortages.

Those countries support only limited tweaks, such as making it easier for consumers to choose between fluctuating and fixed-price power contracts.


'DECOUPLE' PRICES?
The Commission initially pitched the reform as a chance to "decouple" gas and power prices in Europe, suggesting a redesign of the current system of setting power prices. But EU officials say Brussels now appears to be leaning towards more modest changes.

A public consultation on the reforms last month steered clear of a deep energy market intervention. Rather, it suggested expanding Europe's use of long-term contracts, outlining a plan for more fixed-price contracts that provide power plants with a fixed price for their electricity, like CfDs or PPAs.

The Commission said this could be done by setting EU-wide rules for CfDs and letting countries voluntarily use them, or require new state-funded power plants to sign CfDs. The consultation mooted the idea of forcing existing power plants to sign CfDs, but said this could deter much-needed investments in renewable energy.


RISKS, REWARDS
Pro-reform countries like Spain say a revamped power market will bring down energy prices for consumers, by matching their bills more closely with the true cost of producing lower-carbon electricity.

France says the aim is to secure investment in low-carbon energy including renewables, and nuclear plants like those Paris plans to build. It also says lowering power prices should be part of Europe's response to massive industrial subsidies in the United States and China - by helping European firms keep a competitive edge.

But sceptics warn that drastic changes to the market could knock confidence among investors, putting at risk the hundreds of billions of euros in renewable energy investments the EU says are needed to quit Russian fossil fuels under its plan to dump Russian energy and meet climate goals.

Energy companies including Engie (ENGIE.PA), Orsted (ORSTED.CO) and Iberdrola (IBE.MC) have said making CfDs mandatory or imposing them retroactively on existing power plants could deter investment and trigger litigation from energy companies.


POLITICAL DEBATE
EU countries' energy ministers discuss the reforms on Monday, before formal negotiations begin.

The Commission, which drafts EU laws, plans to propose the reforms on Mar. 14. After that, EU countries and lawmakers negotiate the final law, which must win majority support from European Parliament lawmakers and a reinforced majority of at least 15 countries.

Negotiations on major EU legislation often take more than a year, but some countries are pushing for a fast-tracked deal. France wants the law to be finished this year.

That has already hit resistance from countries like Germany, highlighting a France-Germany tussle over the scope of reform as they say deeper changes cannot be rushed through, and they would need an "in-depth impact assessment" - something the Commission's upcoming proposal is not expected to include, because it has been drafted so quickly.

The timeline is further complicated by European Parliament elections in 2024. That has raised concerns in reform-hungry states that failure to strike a deal before the election could significantly delay the reforms, if negotiations have to pause until a new EU parliament is elected.

 

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