Cost of new reactors low-balled, say critics

Germany's Economic Downturn reflects an energy crisis, deindustrialization risks, export weakness, and manufacturing stress, amid Russia gas loss, IMF and EU recession forecasts, and debates over electricity price caps and green transition.

Key Points

An economic contraction from energy price shocks, export weakness, and bottlenecks in manufacturing and digitization.

✅ Energy shock after loss of cheap Russian gas

✅ Exports slump amid China slowdown and weak demand

✅ Policy gridlock on power price cap and permits

Germany went from envy of the world to the worst-performing major developed economy. What happened?

For most of this century, Germany racked up one economic success after another, dominating global markets for high-end products like luxury cars and industrial machinery, selling so much to the rest of the world that half the economy ran on exports.

Jobs were plentiful, the government’s financial coffers grew as other European countries drowned in debt, and books were written about what other countries could learn from Germany.

No longer. Now, Germany is the world’s worst-performing major developed economy, with both the International Monetary Fund and European Union expecting it to shrink this year.

It follows Russia’s invasion of Ukraine and the loss of Moscow’s cheap Russian gas that underpinned industry — an unprecedented shock to Germany’s energy-intensive industries, long the manufacturing powerhouse of Europe.

The sudden underperformance by Europe’s largest economy has set off a wave of criticism, handwringing and debate about the way forward.

Germany risks “deindustrialization” as high energy costs and government inaction on other chronic problems threaten to send new factories and high-paying jobs elsewhere, said Christian Kullmann, CEO of major German chemical company Evonik Industries AG.

From his 21st-floor office in the west German town of Essen, Kullmann points out the symbols of earlier success across the historic Ruhr Valley industrial region: smokestacks from metal plants, giant heaps of waste from now-shuttered coal mines, a massive BP oil refinery and Evonik’s sprawling chemical production facility.

These days, the former mining region, where coal dust once blackened hanging laundry, is a symbol of the energy transition, as the power sector’s balancing act continues with wind turbines and green space.

The loss of cheap Russian natural gas needed to power factories “painfully damaged the business model of the German economy,” Kullmann told The Associated Press. “We’re in a situation where we’re being strongly affected — damaged — by external factors.”

After Russia cut off most of its gas to the European Union, spurring an energy crisis in the 27-nation bloc that had sourced 40% of the fuel from Moscow, the German government asked Evonik to turn to coal by keeping its 1960s coal-fired power plant running a few months longer.

The company is shifting away from the plant — whose 40-story smokestack fuels production of plastics and other goods — to two gas-fired generators that can later run on hydrogen amid plans to become carbon neutral by 2030 and following the nuclear phase-out of recent years.

One hotly debated solution: a government-funded cap on industrial electricity prices to get the economy through the renewable energy transition, amid an energy crisis that even saw a temporary nuclear extension to stabilize supply.

The proposal from Vice Chancellor Robert Habeck of the Greens Party has faced resistance from Chancellor Olaf Scholz, a Social Democrat, and pro-business coalition partner the Free Democrats. Environmentalists say it would only prolong reliance on fossil fuels, while others advocate a nuclear option to meet climate goals.

Kullmann is for it: “It was mistaken political decisions that primarily developed and influenced these high energy costs. And it can’t now be that German industry, German workers should be stuck with the bill.”

The price of gas is roughly double what it was in 2021, with a senior official arguing nuclear would do little to solve that gas issue, hurting companies that need it to keep glass or metal red-hot and molten 24 hours a day to make glass, paper and metal coatings used in buildings and cars.

A second blow came as key trade partner China experiences a slowdown after several decades of strong economic growth.

These outside shocks have exposed cracks in Germany’s foundation that were ignored during years of success, including lagging use of digital technology in government and business and a lengthy process to get badly needed renewable energy projects approved.

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PG&E Public Safety Power Shutoff curbs wildfire risk amid high winds, triggering California outages across Northern California and Bay Area counties; grid safety measures, outage maps, campus closures, and restoration timelines guide residents and businesses.

Key Points

A preemptive outage program by PG&E to reduce wildfire ignition during extreme wind events in California.

✅ Cuts power during red flag, high wind, dry fuel conditions

✅ Targets Northern California, Bay Area counties at highest risk

✅ Restoration follows inspections, weather all-clear, hazard checks

California utility Pacific Gas and Electric Co. (PG&E) has cut off power supply to hundreds of thousands of residents in Northern and Central California as a precaution to possible breakout of wildfires, a move examined in reasons for shutdowns by industry observers.

PG&E confirmed that about 513,000 customers in many counties in Northern California, including Napa, Sierra, Sonoma and Yuba, were affected in the first phase of Public Safety Power Shutoff, a preemptive measure it took to prevent wildfires believed likely to be triggered by strong, dry winds.

The utility said the decision to shut off power was, amid ongoing debate over nuclear's status in California, "based on forecasts of dry, hot and windy weather including potential fire risk."

"This weather event will last through midday Thursday, with peak winds forecast from Wednesday morning through Thursday morning and reaching 60 mph (about 96 km per hour) to 70 mph (about 112 km per hour) at higher elevations," it said, while abroad National Grid warnings about short supply have highlighted parallel reliability concerns.

PG&E noted that about 234,000 residents in mostly counties of San Francisco Bay Area such as Alameda, Alpine, Contra Costa, San Mateo and Santa Clara were impacted in the second phase of the power shutoff, as the state considers power plant closure delays with potential grid impacts, that began around noon in Wednesday.

The unprecedented power outages sweeping across Northern California has darkened homes and forced schools and business to close, even as the UK paused an emergency energy plan amid its own supply concerns.

University of California, Berkeley canceled all classes for Wednesday due to expected campus power loss over the next few days.

The university said it has received notice from PG&E, as China's power woes cloud U.S. solar supplies that could aid resilience, that "most of the core campus will be without power" possibly for 48 hours.

A freshman at California State University San Jose told Xinhua that their classes were canceled Wednesday as the campus was running out of power.

"I had to go home because even our dormitory went without electricity," the student added.

However, PG&E noted in an updated statement Wednesday night that only 4,000 customers would be affected in the third phase being considered for Kern County in Central California, compared to an earlier forecast of 43,000 people who would experience power outage.

The PG&E power shutoff was the largest preemptive measure ever taken to prevent wildfires in the state's history, and it comes as clean power grows while fossil declines across California's grid, highlighting broader transition challenges.

The San Francisco-based California utility was held responsible for poor management of its power lines that sparked fatal wildfires in Northern California and killed 86 people last year in what was called Camp Fire, the single-deadliest wildfire in California's history.

Several lawsuits and other requests for compensation from wildfire victims that amounted to billions of U.S. dollars forced the embattled the company to claim bankruptcy protection early this year.

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Canada Clean Electricity Regulations align climate policy with grid reliability, scaling renewables, energy storage, and low-carbon power to reach net-zero by 2050 while maintaining affordability through federal incentives, provincial flexibility, and investment.

Key Points

Nationwide rules to decarbonize power by 2050, capping emissions and protecting grid reliability and affordability.

✅ Net-zero electricity by 2050 with strict emissions limits

✅ Provincial flexibility and federal investments to cut costs

✅ Scales renewables, storage, and clean firm power for reliability

Canada's final Clean Electricity Regulations, unveiled in December 2024, alongside complementary provincial frameworks such as Ontario's clean electricity regulations that guide provincial implementation, represent a critical step toward ensuring a sustainable and reliable energy future. With electricity demand set to rise as the country’s population and economy grow, the Canadian government has put forward a robust plan that balances climate goals with the need for reliable, affordable power.

The regulations are designed to reduce greenhouse gas emissions from the electricity sector, which is already one of Canada's cleanest, with 85% of its electricity sourced from renewable energies like hydro, wind, and solar, and growing attention to clean grids and batteries nationwide. The target is to achieve net-zero emissions in electricity generation by 2050, a goal that will support the country’s broader climate ambitions.

One of the central goals of the Clean Electricity Regulations is to make sure that Canada’s power grid can accommodate future demand in light of a critical electrical supply crunch identified by analysts, while ensuring that emissions are cut effectively. The regulations set strict pollution limits but allow flexibility for provinces and territories to meet these goals in ways that suit their local circumstances. This approach recognizes the diverse energy resources across Canada, from the large-scale hydroelectric capacity in Quebec to the growing wind and solar projects in the West.

A key benefit of these regulations is the assurance that they will not result in higher electricity rates for most Canadians. In fact, according to government analyses, and resources like the online CER bill tool that explain how fees and usage affect charges, the regulations are expected to have a neutral or even slightly positive impact on electricity costs. This is due in part to significant federal investments in the electricity sector, totaling over $60 billion. These investments are intended to support the transition to clean electricity while minimizing costs for consumers.

The shift to clean electricity is also expected to generate significant savings for Canadian households. As energy prices continue to fluctuate, clean electricity, especially from renewable sources, is becoming more cost-competitive compared to fossil fuels. Over the next decade, this transition is expected to result in $15 billion in total savings for Canadians, with 84% of households projected to benefit from lower energy bills. The savings are a result of federal incentives aimed at encouraging the adoption of efficient electric appliances, vehicles, and heating systems.

Moreover, reducing emissions from the electricity sector will play a major role in cutting Canada’s overall greenhouse gas pollution. By 2050, it’s estimated that these regulations will reduce nearly 181 megatonnes of emissions, which is equivalent to removing over 55 million cars from the road. This is a crucial step in meeting Canada’s climate targets and mitigating the impacts of climate change, such as extreme weather events, which have already led to significant economic losses.

The economic benefits extend beyond savings on energy bills. The regulations and the broader clean electricity strategy will create substantial job opportunities. The clean energy sector, which includes jobs in wind, solar, and nuclear power, is poised for massive growth, and provinces like Alberta have outlined a path to clean electricity to support that momentum. It’s estimated that by 2030, the transition to clean electricity could create 400,000 new jobs, with further job growth projected for the years to come. These jobs are expected to include roles in both the construction and operation of new energy infrastructure, many of which will be unionized positions offering good wages and benefits.

To help meet the rising demand for clean energy, the government’s strategy emphasizes technological innovation and the integration of new energy sources, including market design updates such as proposed market changes that can enable investment. Renewable energy technologies such as wind and solar power have become increasingly cost-competitive, and their continued development is expected to reduce the overall cost of electricity generation. The regulations also encourage the adoption of energy storage solutions, which are essential for managing the intermittent nature of renewable energy sources.

In addition to the environmental and economic benefits, the Clean Electricity Regulations will help improve public health. Air pollution from fossil fuel power generation is a major contributor to respiratory illnesses and other health issues. By transitioning to clean energy sources, Canada can reduce harmful air pollutants, leading to better health outcomes and a lower burden on the healthcare system.

As Canada moves toward a net-zero electricity grid, including the federal 2035 target that some have criticized as changing goalposts in Saskatchewan, the Clean Electricity Regulations represent a comprehensive and flexible approach to managing the energy transition. With significant investments in clean energy technologies and the adoption of policies that ensure affordable electricity for all Canadians, the government is setting the stage for a cleaner, more sustainable future. These efforts will not only help Canada meet its climate goals but also create a thriving clean energy economy that benefits workers, businesses, and families across the country.

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Hydro-QuE9bec Class-Action Lawsuit alleges overbilling and monopoly abuse, citing RE9gie de l'E9nergie rate increases, Quebec Superior Court filings, and calls for refunds on 2008-2013 electricity bills to residential and business customers.

Key Points

Quebec class action alleging Hydro-QuE9bec overbilled customers in 2008-2013, seeking court-ordered refunds.

✅ Filed in Quebec Superior Court; certification pending.

✅ Alleges up to $1.2B in overcharges from 2008-2013.

✅ Questions RE9gie de l'E9nergie rate approvals and data.

A group representing Hydro-Québec customers has filed a motion for a class-action lawsuit against the public utility, alleging it overcharged customers over a five-year period.

Freddy Molima, one of the representatives of the Coalition Peuple allumé, accuses Hydro-Québec of "abusing its monopoly."

The motion, which was filed in Quebec Superior Court, claims Hydro-Québec customers paid more than they should have for electricity between 2008 and 2013, to the tune of nearly $1.2 billion, even as Hydro-Québec later refunded $535 million to customers in a separate case. 

The coalition has so far recruited nearly 40,000 participants online as part of its plan to sue the public utility.

A lawyer representing the group said Quebec's energy board, the Régie de l'énergie, also recently approved Hydro-Québec rate increases for residential and business customers without knowing all the facts, even as Manitoba Hydro hikes face opposition in regulatory hearings.

"There's certain information provided to the Régie that isn't true," said Bryan Furlong. "Hydro-Québec has not been providing the Régie the proper numbers."

In its motion, the group asks that overcharged clients be retroactively reimbursed.

Hydro-Québec denies allegations

Hydro-Québec, for its part, denies it ever overbilled any of its clients, while other utilities such as Hydro One plan to redesign bills to improve clarity.

"All our efficiencies have been returned to the government through our profits, and to Quebecers we have billed exactly what we agreed to bill," said spokesperson Serge Abergel, adding that the utility won't seek a rate hike next year according to its current plans.

Quebec Energy Minister Pierre Moreau also came to the public utility's defence, saying it has no choice but to comply with the  energy board's regulations, while customer protections are in focus as Hydro One moves to reconnect 1,400 customers in Ontario.

The group says the public utility has overbilled clients by up to $1.2 billion. (Radio-Canada)

It would be "shocking" if customers were charged too much money, he added.

"I know for a fact that Hydro-Québec is respecting the decision of this body," he said.

While the motion has been filed, the group cannot say how much each customer would receive if the class-action lawsuit goes ahead because it all depends on how much electricity was consumed by each client over that five-year period.

The coalition plans to present its motion to a judge next February.

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Smart Meter Texas real-time pricing faces rollback as utilities limit on-demand reads, impacting demand response, home area networks, ERCOT wholesale tracking, and thermostat automation, reducing efficiency gains promised through deregulation and smart meter investments.

Key Points

A plan linking smart meters to ERCOT prices, enabling near real-time usage alignment and automated demand response.

✅ Twice-hourly reads miss 15-minute ERCOT price spikes.

✅ Less than 1% of 7.3M meters use HAN real-time features.

✅ Limits hinder automation for HVAC, EV charging, and pool pumps.

Utilities made a promise several years ago when they built Smart Meter Texas that they’d come up with a way for consumers to monitor their electricity use in real time. But now they’re backing out of the deal with the approval of state regulators, leaving in the lurch retail power companies that are building their business model on the promise of real time pricing and denying consumers another option for managing their electricity costs.

Texas utilities collected higher rates to finance the building of a statewide smart meter network that would allow customers to track their electricity use and the quickly changing prices on wholesale power markets almost as they happened. Some retailers are building electricity plans around this promise, providing customers with in-home devices that would eventually track pricing minute-by-minute and allow them to automatically turn down or shut off air conditioners, pool pumps and energy sucking appliances when prices spiked on hot summer afternoons and turn them back on when they prices fell again.

The idea is to help save consumers money by allowing them to shift their electricity consumption to periods when power is cheaper, typically nights and weekends, even as utility revenue in a free-power era remains a debated topic.

“We’re throwing away a large part of (what) ratepayers paid for,” said John Werner, CEO of GridPlus Texas, one of the companies offering consumers a real-time pricing plan that is scheduled to begin testing next month. “They made the smart meters dumb meters.”

When Smart Meter Texas was launched a decade ago by a consortium of the state’s biggest utilities, it was considered an important part of deregulation. The competitive market for electricity held the promise that consumers would eventually have the technology to control their electricity use through a home area network and cut their power bills.

Regulators and legislators also were enticed by the possibility of making the electric system more efficient and relieving pressure on the power grid as consumers responded to high prices and cut consumption when temperatures soared, with ongoing discussions about Texas grid reliability informing policy choices.

One study found that smart meters coupled with smart real time consumption monitors could reduce electricity use between 3 percent and 5 percent, according to Call Me Power, a website sponsored by the European electricity price shopping service Selectra.

But utilities complained that the home area network devices were expensive to install and not used very often, and, with flat electricity demand weighing on growth, they questioned further investment. CenterPoint manager Esther Floyd Kent filed an affidavit with the commission in May that it costs the utility about $30,000 annually to support the network devices, plus maintenance.

Over a six-year period, CenterPoint paid $124,500, or about $20,000 a year, to maintain the system. As of April, there were only 4,067 network devices in CenterPoint’s service area, meaning the utility pays about $30.70 each year to maintain each device.

Centerpoint last year generated $9.6 billion in revenues and earned a $1.8 billion profit, according to its financial filings. CenterPoint officials did not respond to requests for comment.

Other utilities that are part of the Smart Meter consortium also complained to the Public Utility Commission that, up to now, the system hasn’t developed. All told, Texas has 7.3 million meters connected to Smart Meter Texas, but less than 1 percent are using the networking functions to track real-time prices and consumption, according to the testimony of Donny R. Helm, director of technology strategy and architecture for the state’s largest utility Oncor Electric Delivery Co. in Dallas.

The isssue was resolved recently through a settlement agreement that limits on-demand readings to twice an hour that Smart Meter Texas must provide customers. The price of power changes every 15 minutes, so a twice an hour reading may miss some price spikes.

The Public Utility Commission signed off on the deal, and so did several other groups including several retail electricity providers and the Office of Public Utility Counsel which represents residential customers and small businesses.

Michele Gregg, spokeswoman for the Public Utility Counsel, testified in December that the consumer advocate supported the change because widespread use of the networks never materialized. Catherine Webking, an Austin lawyer who represents the Texas Energy Association for Marketers, a group of retail electric providers, said she believes the deal was a reasonable resolution of providing the benefits of Smart Meter Texas while not incurring too much cost.

But Griddy, an electricity provider that offers customers the opportunity to pay wholesale power prices, which also issued a plea to customers during a price surge, said the state hasn’t given the smart-meter networks a chance and could miss out on its potential. Griddy was counting on the continued adoption of real time pricing as the next step for customers wanting to control their electricity costs.

Right now, Griddy sends out price alerts from the grid operator Electric Reliability Council of Texas so businesses like hotels can run washers and dryers when electricity prices are cheapest. But the company was counting on a smart-meter program that would allow customers to track wholesale prices and manage consumption themselves, making Griddy’s offerings attractive to more people.

Wholesale prices are generally cheaper than retail prices, but they can fluctuate widely, especially when the Texas power grid faces another crisis during extreme weather. Last year, wholesale prices averaged less than 3 cents per kilowatt hour, much lower than than retail rates that now are running above 11 cents, but they can spike at times of high demand to as much as $9 a kilowatt hour.

What customers want is to be able to use energy when it’s cheapest, said Greg Craig, Griddy’s CEO, and they want to do it automatically. They want to be able to program their thermostat so that if the price rises they can shut off their air conditioning and if the price falls, they can charge their electric-powered vehicle.

Griddy customers may still save money even without real time data, he said. But they won’t be able to see their usage in real time or see how much they’re spending.

“The big utilities have big investments in the existing way and going to real time and more transparency isn’t really in their best interest,” said Craig.

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Ontario-Quebec Energy Swap streamlines electricity exchange, balancing peak demand across clean grids with hydroelectric and nuclear power, enhancing reliability, capacity banking, and interprovincial load management for industry growth, EV adoption, and seasonal heating-cooling needs.

Key Points

10-year, no-cash power swap aligning peaks; hydro and nuclear enhance reliability and let Ontario bank capacity.

✅ Up to 600 MW exchanged yearly; reviews adjust volumes

✅ Peaks differ: summer A/C in Ontario, winter heating in Quebec

✅ Capacity banking enables future-year withdrawals

Ontario and Quebec have agreed to swap energy to build on an electricity deal to help each other out when electricity demands peak.

The provinces' electricity operators, the Independent Electricity System Operator holds capacity auctions and Hydro-Quebec, will trade up to 600 megawatts of energy each year, said Ontario Energy Minister Todd Smith.

“The deal just makes a lot of sense from both sides,” Smith said in an interview.

“The beauty as well is that Quebec and Ontario are amongst the cleanest grids around.”

The majority of Ontario's power comes from nuclear energy while the majority of Quebec's energy comes from hydroelectric power, including Labrador power in regional transmission networks.

The deal works because Ontario and Quebec's energy peaks come at different times, Smith said.

Ontario's energy demands spike in the summer, largely driven by air conditioning on hot days, and the province has occasionally set off-peak electricity prices to provide temporary relief, he said.

Quebec's energy needs peak in the winter, mostly due to electric heating on cold days.

The deal will last 10 years, with reviews along the way to adjust energy amounts based on usage.

“With the increase in energy demand, we must adopt more energy efficiency programs like Peak Perks and intelligent measures in order to better manage peak electricity consumption,” Quebec's Energy Minister Pierre Fitzgibbon wrote in a statement.

Smith said the energy deal is a straight swap, with no payments on either side, and won't reduce hydro bills as the transfer could begin as early as this winter.

Ontario will also be able to bank unused energy to save capacity until it is needed in future years, Smith said.

Both provinces are preparing for future energy needs, as electricity demands are expected to grow dramatically in the coming years with increased demand from industry and the rise of electric vehicles, and Ontario has tabled legislation to lower electricity rates to support consumers.

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