Power shifts to Quebec

Berkshire Hathaway Energy Wind Power drives cheap electricity rates in Iowa via utility-scale wind turbines, integrated transmission, battery storage, and grid management, delivering renewable energy, stable pricing, and long-term rate freezes through 2028.

Key Points

A vertically integrated wind utility lowering Iowa rates via owned generation, transmission, and advanced grid control.

✅ Owned wind assets meet Iowa residential demand

✅ Integrated transmission lowers costs and losses

✅ Rate freeze through 2028 sustains cheap power

In his latest letter to Berkshire Hathaway shareholders, Warren Buffett used the 20th anniversary of Berkshire Hathaway Energy to tout its cheap electricity bills for customers.

When Berkshire purchased the majority share of BHE in 2000, the cost of electricity for its residential customers in Iowa was 8.8 cents per kilowatt-hour (kWh) on average. Since then, these electricity rates have risen at a paltry <1% per year, with a freeze on rate hikes through 2028. As anyone who pays an electricity bill knows, that is an incredible deal.  

As Buffett himself notes with alacrity, “Last year, the rates [BHE’s competitor in Iowa] charged its residential customers were 61% higher than BHE’s. Recently, that utility received a rate increase that will widen the gap to 70%.”

The Winning Strategy

So, what’s Buffett’s secret to cheap electricity? Wind power.

“The extraordinary differential between our rates and theirs is largely the result of our huge accomplishments in converting wind into electricity,” Buffett explains. 

Wind turbines in Iowa that BHE owns and operates are expected to generate about 25.2 million megawatt-hours (MWh) of electricity for its customers, as projects like Building Energy operations begin to contribute. By Buffett’s estimations, that will be enough to power all of its residential customers’ electricity needs in Iowa.  

The company has plans to increase its renewable energy generation in other regions as well. This year, BHE Canada is expected to start construction on a 117.6MW wind farm in Alberta, Canada with its partner, Renewable Energy Systems, that will provide electricity to 79,000 homes in Canada’s oil country.

Observers note that Alberta is a powerhouse for both green energy and fossil fuels, underscoring the region's unique transition.

But I would argue that the secret to BHE’s success perhaps goes deeper than transitioning to sources of renewable energy. There are plenty of other utility companies that have adopted wind and solar power as an energy source. In the U.S., where renewable electricity surpassed coal in 2022, at least 50% of electricity customers have the option to buy renewable electricity from their power supplier, according to the Department of Energy. And some states, such as New York, have gone so far as to allow customers to pick from providers who generate their electricity.

What differentiates BHE from a lot of the competition in the utility space is that it owns the means to generate, store, transmit and supply renewable power to its customers across the U.S., U.K. and Canada, with lessons from the U.K. about wind power informing policy.

In its financial filings for 2019, the company reported that it owns 33,600MW of generation capacity and has 33,400 miles of transmission lines, as well as a 50% interest in Electric Transmission Texas (ETT) that has approximately 1,200 miles of transmission lines. This scale and integration enables BHE to be efficient in the distribution and sale of electricity, including selling renewable energy across regions.

BHE is certainly not alone in building renewable-energy fueled electricity dominions. Its largest competitor, NextEra, built 15GW of wind capacity and has started to expand its utility-scale solar installations. Duke Energy owns and operates 2,900 MW of renewable energy, including wind and solar. Exelon operates 40 wind turbine sites across the U.S. that generate 1,500 MW.

Integrated Utilities Power Ahead

It’s easy to see why utility companies see wind as a competitive source of electricity compared to fossil fuels. As I explained in my previous post, Trump’s Wrong About Wind, the cost of building and generating wind energy have fallen significantly over the past decade. Meanwhile, improvements in battery storage and power management through new technological advancements have made it more reliable (Warren Buffett bet on that one too).

But what is also striking is that integrated power and transmission enables these utility companies to make those decisions; both in terms of sourcing power from renewable energy, as well as the pricing of the final product. Until wind and solar power are widespread, these utility companies are going to have an edge of the more fragmented ends of the industry who can’t make these purchasing or pricing decisions independently. 

Warren Buffett very rarely misses a beat. He’s not the Oracle of Omaha for nothing. Berkshire Hathaway’s ownership of BHE has been immensely profitable for its shareholders. In the year ended December 31, 2019, BHE and its subsidiaries reported net income attributable to BHE shareholders of $2.95 billion.

There’s no question that renewable energy will transform the utility industry over the next decade. That change will be led by the likes of BHE, who have the power to invest, control and manage their own energy generation assets.

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Iran Electricity Exports to Iraq address power shortages and blackouts, supplying 1,200-1,500 MW and gas for 2,500 MW, amid sanctions, aging grid losses, rising peak demand, and TAVANIR plans to expand cross-border energy capacity.

Key Points

Energy flows from Iran supply Iraq with 1,200-1,500 MW plus gas yielding 2,500 MW, easing shortages and blackouts.

✅ 1,200-1,500 MW direct power; gas adds 2,500 MW generation

✅ Iraq exempt on Iranian gas, but faces US pressure

✅ Aging grid loses 25%; $30B upgrades needed

“Iran exports 1,200 megawatts to 1,500 megawatts of electricity to Iraq per day, reflecting broader regional power trade dynamics, as Iraq is dealing with severe power shortages and frequent blackouts,” Hamid Hosseini said.

As he added, Iran also exports 37 million to 38 million cubic meters of gas to the country, much of it used in combined-cycle power plants to save energy and boost generation.

On September 11, Iraq’s electricity minister, Luay al Khateeb, said the country needs Iranian gas to generate electricity for the next three or four years, as energy cooperation discussions continue between Baghdad and Tehran.

Iraq was exempted from sanctions concerning Iranian gas imports; however, the U.S. has been pressing all countries to stop trading with Tehran.

Iraq's population has been protesting to authorities over power cuts. Iran exports 1,200 megawatts of direct power supplies and its gas is converted into 2,500 MW of electricity. According to al Khateeb, the current capacity is 18,000 MW, with peak demand of 25,000 MW possible during the hot summer months when consumption surges, a figure that rises every year.

Any upgrades would need investment of at least $30 billion, with grid rehabilitation efforts underway to modernize infrastructure, as the grid is 50 years old and loses 25 percent of its capacity due to Isis attacks.

In late July, Managing Director of Gharb (West) Regional Electricity Company Ali Asadi said Iran has high capacity and potential to export electricity up to twofold of the current capacity to neighboring Iraq, as it eyes transmitting electricity to Europe to serve as a regional hub as well.

He pointed to the new strategy of Iran Power Generation, Transmission & Distribution Management Company (TAVANIR) for increasing electricity export to neighboring Iraq and reiterated, “the country enjoys high potential to export 1,200 megawatts electricity to neighboring Iraq,” while Iraq is also exploring nuclear power plants to tackle electricity shortages.

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UK Net Zero Policy Delay shifts EV sales ban to 2035, eases boiler phase-outs, keeps ZEV mandate, backs North Sea oil and gas, accelerates onshore wind and grid upgrades while targeting 2050 emissions goals.

Key Points

Delay moves EV and heating targets to 2035, tweaks mandates, and shifts energy policy, keeping the 2050 net zero goal.

✅ EV sales ban shifts to 2035; ZEV mandate trajectory unchanged

✅ Heat pump grants rise to £7,500; boiler phase-out eased

✅ North Sea oil, onshore wind, grid and nuclear plans advance

British Prime Minister Rishi Sunak has said he would delay targets for changing cars and domestic heating to maintain the consent of the British people in the switch to net zero as part of the global energy transition under way.

Sunak said Britain was still committed to achieving net zero emissions by 2050, similar to Canada's race to net zero goals, and denied watering down its climate targets.

Here are some of the current emissions targets for Britain's top polluting sectors and how the announcement impacts them.

TRANSPORTATION
Transport accounts for more than a third (34%) of Britain's total carbon dioxide (CO2) emissions, the most of any sector.

Sunak announced a delay to introducing a ban on new petrol and diesel cars and vans. It will now come into force in 2035 rather than in 2030.

There were more than 1.1 million electric cars in use on UK roads as of April - up by more than half from the previous year to account for roughly one in every 32 cars, according to the country's auto industry trade body.

The current 2030 target was introduced in November 2020 as a central part of then-Prime Minister Boris Johnson's plans for a "green revolution". As recently as Monday, transport minister Mark Harper restated government support for the policy.

Britain’s independent climate advisers, the Climate Change Committee, estimated a 2030 phase out of petrol, diesel and hybrid vehicles could save up to 110 million tons of carbon dioxide equivalent emissions compared with a 2035 phase out.

ohnson's policy already allowed for the continued sale of hybrid cars and vans that can drive long stretches without emitting carbon until 2035.

The transition is governed by a zero-emission vehicle (ZEV) mandate, a shift echoed by New Zealand's electricity transition debates, which means manufacturers must ensure an increasing proportion of the vehicles they sell in the UK are electric.

The current proposal is for 22% of a car manufacturer's sales to be electric in 2024, rising incrementally each year to 100% in 2035.

The government said on Wednesday that all sales of new cars from 2035 would still be zero emission.

Sunak said that proposals that would govern how many passengers people should have in a car, or proposals for new taxes to discourage flying, would be scrapped.

RESIDENTIAL
Residential emissions, the bulk of which come from heating, make up around 17% of the country's CO2 emissions.

The government has a target to reduce Britain's energy consumption from buildings and industry by 15% by 2030, and had set a target to phase out installing new and replacement gas boilers from 2035, as the UK moves towards heat pumps, amid an IEA report on Canada's power needs noting more electricity will be required.

Sunak said people would have more time to transition, and the government said that off-gas-grid homes could continue to install oil and liquefied petroleum gas boilers until 2035, rather than being phased out from 2026.

However, his announcements that the government would not force anyone to rip out an existing boiler and that people would only have to make the switch when replacing one from 2035 restated existing policy.

He also said there would be an exemption so some households would never have to switch, but the government would increase an upgrade scheme that gives people cash to replace their boilers by 50% to 7,500 pounds ($9,296.25).

Currently almost 80% of British homes are heated by gas boilers. In 2022, 72,000 heat pumps were installed. The government had set a target of 600,000 heat pump installations per year by 2028.

A study for Scottish Power and WWF UK in June found that 6 million homes would need to be better insulated by 2030 to meet the government's target to reduce household energy consumption, but current policies are only expected to deliver 1.1 million.

The study, conducted by Frontier Economics, added that 1.5 million new homes would still need heat pumps installed by 2030.

Sunak said that the government would subsidise people who wanted to make their homes energy efficient but never force a household to do it.

The government also said it was scrapping policies that would force landlords to upgrade the energy efficiency of their properties.

ENERGY
The energy sector itself is a big emitter of greenhouse gases, contributing around a quarter of Britain's emissions, though the UK carbon tax on coal has driven substantial cuts in coal-fired electricity in recent years.

In July, Britain committed to granting hundreds of licences for North Sea oil and gas extraction as part of efforts to become more energy independent.

Sunak said he would not ban new oil and gas in the North Sea, and that future carbon budgets for governments would have to be considered alongside the plans to meet them.

He said the government would shortly bring forward new plans for energy infrastructure to improve Britain's grid, including the UK energy plan, while speeding up planning.

Offshore wind power developers warned earlier this month that Britain's climate goals could be at risk, even as efforts like cleaning up Canada's electricity highlight the importance of power-sector decarbonization, after a subsidy auction for new renewable energy projects did not attract any investment in those planned off British coasts.

Britain is aiming to develop 50 gigawatts (GW) of offshore wind capacity by 2030, up from around 14 GW now.

Sunak highlighted that Britain is lifting a ban on onshore wind, investing in carbon capture and building new nuclear power stations.

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TotalEnergies Africa Energy Strategy 2025 spotlights oil, gas, LNG, and renewables, with investments in Namibia, Congo, Mozambique, Uganda, Morocco, and South Africa, driving upstream growth, clean energy, and energy transition partnerships.

Key Points

An investment roadmap uniting oil, gas, LNG, and renewables to speed Africa's upstream growth and energy transition.

✅ Keynote by Mike Sangster at IAE Paris 2025.

✅ Oil, gas, LNG projects across Namibia, Congo, Mozambique, Uganda.

✅ Scaling renewables: solar, wind, green ammonia for export.

Mike Sangster, Senior Vice President for Africa at TotalEnergies, will play a pivotal role in the upcoming Invest in African Energy (IAE) Forum, which will take place in Paris on May 13-14, 2025. As a key figure in one of the world’s largest energy companies, Sangster's participation in the forum is expected to offer crucial insights into Africa’s evolving energy landscape, particularly in the areas of oil, gas, and renewable energy.

TotalEnergies' Role in Africa's Energy Landscape

TotalEnergies has long been a major player in Africa’s energy sector, driving development across both emerging and established markets. The company has a significant footprint in countries such as Namibia, the Republic of Congo, Libya, Mozambique, Uganda, and South Africa. TotalEnergies’ investments span both traditional oil and gas projects as well as renewable energy initiatives, reflecting its commitment to a more diversified energy future for Africa.

In Namibia, for instance, TotalEnergies is advancing its Venus-1 discovery, with plans to produce its first oil by the end of the decade. The company is also heavily involved in the Orange Basin exploration. Meanwhile, in the Republic of Congo, TotalEnergies is investing $600 million to enhance deepwater production at its Moho Nord field.

Beyond oil and gas, the company is expanding its renewable energy portfolio across the continent. This includes significant solar, wind, and hydropower projects, such as the 500 MW Sadada solar project in Libya, a 216 MW solar plant with battery storage in South Africa, and a 1 GW wind and solar project in Morocco designed to produce green ammonia for export.

The Invest in African Energy Forum

The IAE Forum, which TotalEnergies’ Sangster will headline, is an exclusive event aimed at facilitating investment between African energy markets and global investors, including discussions on COVID-19 funding for electricity access mechanisms that emerged, and their relevance to current capital flows. With a focus on fostering partnerships and discussions about the future of energy in Africa, the event will bring together industry experts, project developers, investors, and policymakers for two days of intensive engagement.

The forum will also serve as a crucial platform for sharing perspectives on the role of private investment, as outlined in the IEA investment outlook for Africa's power systems, in Africa’s energy future, strategies for unlocking new upstream opportunities, and the transition to a more sustainable energy system. This makes Sangster's participation, as someone directly involved in both conventional and renewable energy projects across the continent, particularly significant.

TotalEnergies' Diversified Strategy in Africa

Sangster’s keynote address and participation in an exclusive fireside chat will provide an in-depth look into TotalEnergies’ strategy for Africa. His insights will touch upon the company's ongoing projects in the oil and gas sectors, as well as its renewable energy investments. TotalEnergies has committed to making its portfolio more sustainable, underscored by its recent VSB acquisition to expand renewables capabilities, while continuing to be a leader in the energy transition.

One of the company’s notable projects is the Mozambique LNG initiative, a $20 billion venture aimed at supplying liquefied natural gas to international markets. Additionally, TotalEnergies is gearing up for the first oil from its Tilenga field in Uganda, which will be transported through the East African Crude Oil Pipeline (EACOP), the longest heated crude oil pipeline in the world.

In South Africa, TotalEnergies is constructing one of the largest renewable energy projects, a 216 MW solar power plant with integrated battery storage. This project is expected to significantly contribute to the country’s clean energy ambitions. Furthermore, in Morocco, TotalEnergies is developing a major wind and solar facility that will produce green ammonia, aligning with its broader strategy to provide solutions for Europe’s energy needs.

Africa’s Energy Transition

The forum’s timing could not be more critical, given the pressing need for an energy transition in Africa. While the continent remains heavily reliant on fossil fuels for its energy needs, there is growing momentum toward incorporating renewable energy sources, a point reinforced by the IRENA renewables report on decarbonisation and quality of life, which highlights the transformative potential. Africa’s vast natural resources, combined with global investments and partnerships, position the continent as a key player in the global shift toward sustainable energy.

However, Africa faces unique challenges in transitioning to renewable energy, reflecting a broader Sub-Saharan electricity challenge that also presents opportunity, across many markets. These challenges include a lack of infrastructure, financial constraints, and the need for increased political stability in certain regions. The IAE Forum provides an opportunity to address these barriers, with industry leaders like Sangster offering solutions based on real-world experiences and investments.

As the energy sector continues to evolve globally, and even if electricity systems are unlikely to go fully green this decade according to some outlooks, Africa's potential remains vast. The continent’s diverse energy resources, from oil and gas to renewables, offer a unique opportunity to build a more sustainable and resilient energy future. The Invest in African Energy Forum serves as an important platform for global stakeholders to collaborate, learn, and invest in the energy transformation taking place across the continent.

Mike Sangster’s insights at the forum will undoubtedly shape discussions on how companies like TotalEnergies are navigating the intersection of universal electricity access goals, sustainability, and economic growth in Africa. With Africa’s energy needs expected to increase exponentially in the coming decades, ensuring that these needs are met sustainably and equitably will be a priority for both policymakers and private investors.

As the global energy landscape continues to shift, the Invest in African Energy Forum provides a critical space for shaping the future of Africa’s energy sector, offering invaluable opportunities for investment, innovation, and collaboration.

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Alberta NDP Net-Zero Electricity Plan targets a 2035 clean grid, expands renewable energy, cuts emissions, creates jobs, and boosts economic diversification and rural connectivity, aligning Alberta with Canada's 2050 climate goals.

Key Points

A policy to achieve a net-zero electricity grid by 2035, advance renewable energy, cut emissions, and grow jobs.

✅ Net-zero electricity grid target set for 2035

✅ Scales renewable energy and emissions reductions

✅ Focus on jobs, rural connectivity, and diversification

Ahead of the NDP’s weekend convention, Alberta’s Opposition leader has committed to transforming the province’s energy sector and moving the province’s electricity grid to net-zero by 2035, despite debate over the federal 2035 net-zero electricity grid target in other provinces, should an orange crush wash over Alberta in the next election.

NDP Leader Rachel Notley said they would achieve this as part of the path towards Canada’s 2050 net-zero emissions goal, aligning with broader clean grids trends, which will help preserve and create jobs in the province.

“I think it’s an important goal. It’s a way of framing the work that we’re going to do within our energy industry and our energy sector, including how Alberta produces and pays for electricity going forward,” said Notley. “We know the world is moving toward different objectives and we still have the ability to lead on that front, but we need to lay down the markers early and focus on reaching those goals.”

Premier Jason Kenney has previously called the 2050 target “aspirational,” and, as the electricity sector faces profound change in Alberta, Notley said, once the work begins, it’s likely they would meet the objective earlier than proposed to reduce greenhouse gas emissions that contribute to global warming.

This is just one key issue that will be addressed at the party’s online convention, which is the first since the NDP’s defeat by the UCP in the last provincial election. Notley said other key issues will address economic diversification, economic recovery, job creation and social issues, as Alberta’s electricity market is headed for a reshuffle too. The focus, as she puts it, is “jobs, jobs, jobs.”

Attendees will also debate more than 140 policy resolutions over the weekend, including the development of a safe supply drug policy, banning coal mining in the Rocky Mountains and providing paid sick leave for workers.

Outside the formal agenda, debate over electricity market competition continues in Alberta as stakeholders weigh options.

Notley said an area of growing focus for the NDP will be rural Alberta, which is typically a conservative stronghold. One panel presentation during the convention will focus on connecting and building relationships with rural Albertans and growing the NDP profile in those areas.

“We think that we have a lot to offer rural Alberta and that, quite frankly, the UCP and (Kenney), in particular, have profoundly taken rural Alberta for granted,” she said. “Because of that, we think with a renewed energy amongst our membership to go out to parts of the province where we haven’t been previously as active, and talk about what they have been subjected to in the last two years, that we have huge opportunities there.”

Delegates will be asked to support a call for high-speed internet coverage across Alberta, which would remove barriers to access in rural Alberta and Indigenous communities, said the convention guidebook.

The convention comes as the NDP has a wide lead on the UCP, according to the latest polls. A Leger online survey of 1,001 Albertans conducted between March 5 to 8 found 40 per cent of respondents support the NDP, compared to just 20 per cent for the UCP.

Notley said it’s “encouraging” to see, but they aren’t taking anything for granted.

“I’ve always believed that Alberta Democrats have to work twice as hard as anybody else in the political spectrum, or the political arena,” she said. “So what we’re going to do is continue to do exactly what we have been, not only being a strong and I would argue fearless Opposition, but also trying to match every oppositional position with something that is propositional — offering Albertans a different vision, including an Alberta path to clean electricity where possible.”

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Rural Electrification Poverty Impact examines energy access, grid connections, and reliability, testing economic development claims via randomized trials; findings show minimal gains without appliances, reliable supply, and complementary services like education and job creation initiatives.

Key Points

Study of household grid connections showing modest poverty impact without reliable power and appliances.

✅ Randomized grid connections showed no short-term income gains.

✅ Low reliability and few appliances limited electricity use.

✅ Complementary investments in jobs, education, health may be needed.

The head of Swedfund, the development finance group, recently summarized a widely-held belief: “Access to reliable electricity drives development and is essential for job creation, women’s empowerment and combating poverty.” This view has been the driving force behind a number of efforts to provide electricity to the 1.1 billion people around the world living in energy poverty, such as India's village electrification initiatives in recent years.

But does electricity really help lift households out of poverty? My co-authors and I set out to answer this question. We designed an experiment in which we first identified a sample of “under grid” households in Western Kenya—structures that were located close to but not connected to a grid. These households were then randomly divided into treatment and control groups. In the treatment group, we worked closely with the rural electrification agency to connect the households to the grid for free or at various discounts. In the control group, we made no changes. After eighteen months, we surveyed people from both groups and collected data on an assortment of outcomes, including whether they were employed outside of subsistence agriculture (the most common type of work in the region) and how many assets they owned. We even gave children basic tests, as a frequent assertion is that electricity helps children perform better in school since they are able to study at night.

When we analyzed the data, we found no differences between the treatment and control groups. The rural electrification agency had spent more than $1,000 to connect each household. Yet eighteen months later, the households we connected seemed to be no better off. Even the children’s test scores were more or less the same. The results of our experiment were discouraging, and at odds with the popular view that supplying households with access to electricity will drive economic development. Lifting people out of poverty may require a more comprehensive approach to ensure that electricity is not only affordable (with some evidence that EV growth can benefit all customers in mature markets), but is also reliable, useable, and available to the whole community, paired with other important investments.

For instance, in many low-income countries, the grid has frequent blackouts and maintenance problems, making electricity unreliable, as seen in Nigeria's electricity crisis in recent years. Even if the grid were reliable, poor households may not be able to afford the appliances that would allow for more than just lighting and cell phone charging. In our data, households barely bought any appliances and they used just 3 kilowatt-hours per month. Compare that to the U.S. average of 900 kilowatt-hours per month, a figure that could rise as EV adoption increases electricity demand over time.

There are also other factors to consider. After all, correlation does not equal causation. There is no doubt that the 1.1 billion people without power are the world’s poorest citizens. But this is not the only challenge they face. The poor may also lack running water, basic sanitation, consistent food supplies, quality education, sufficient health care, political influence, and a host of other factors that may be harder to measure but are no less important to well-being. Prioritizing investments in some of these other factors may lead to higher immediate returns. Previous work by one of my co-authors, for example, shows substantial economic gains from government spending on treatment for intestinal worms in children.

It’s possible that our results don’t generalize. They certainly don’t apply to enhancing electricity services for non-residential customers, like factories, hospitals, and schools, and electric utilities adapting to new load patterns. Perhaps the households we studied in Western Kenya are particularly poor (although measures of well-being suggest they are comparable to rural households across Sub-Saharan Africa) or politically disenfranchised. Perhaps if we had waited longer, or if we had electrified an entire region, the household impacts we measured would have been much greater. But others who have studied this question have found similar results. One study, also conducted in Western Kenya, found that subsidizing solar lamps helped families save on kerosene, but did not lead children to study more. Another study found that installing solar-powered microgrids in Indian villages resulted in no socioeconomic benefits.

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