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Hungary's Russian Energy Dependence underscores EU tensions, as TurkStream gas flows, discounted imports, and pipeline reliance challenge sanctions, energy security, diversification, and decoupling goals amid Ukraine war pressures and bloc unity concerns.

Key Points

It is Hungary's reliance on Russian gas and oil via TurkStream, complicating EU sanctions and energy independence.

✅ 85% gas, 60% oil imports from Russia via TurkStream pipelines.

✅ Discounted contracts seldom cut bills; security cited by Budapest.

✅ EU decoupling targets hampered; sanctions leverage and unity erode.

Hungary's energy policies have positioned it as a notable outlier within the European Union, particularly in the context of the ongoing geopolitical tensions stemming from Russia's invasion of Ukraine. While the EU has been actively working to reduce its dependence on Russian energy sources through an EU $300 billion plan to dump Russian energy, Hungary has maintained and even strengthened its energy ties with Moscow, raising concerns about EU unity and the effectiveness of sanctions.

Strategic Energy Dependence

Hungary's energy infrastructure is heavily reliant on Russian supplies. Approximately 85% of Hungary's natural gas and more than 60% of its oil imports originate from Russia. This dependence is facilitated through pipelines such as TurkStream, which delivers Russian gas to Hungary via Turkey and the Balkans amid Europe's energy nightmare over price volatility and security. In 2025, Hungary's gas imports through TurkStream are projected to reach 8 billion cubic meters, a significant increase from previous years. These imports are often secured at discounted rates, although such savings may not always be passed on to Hungarian consumers.

Political and Economic Considerations

Prime Minister Viktor Orbán has been a vocal critic of EU sanctions against Russia and has consistently blocked EU initiatives aimed at providing military aid to Ukraine, even as Ukraine leans on power imports to keep the lights on. His government argues that Russia's military capabilities make it an unyielding adversary and that a ceasefire would only solidify its territorial gains. Orbán's stance has led to Hungary's isolation within the EU on matters related to the conflict in Ukraine.

Economically, Hungary's reliance on Russian energy has been justified by the government as a means to maintain low energy prices for consumers and ensure energy security. However, critics argue that this strategy undermines EU efforts to achieve energy independence and reduces the bloc's leverage over Russia amid a global energy war marked by price hikes and instability.

EU's Response and Challenges

The European Union has set ambitious goals to reduce its reliance on Russian energy, aiming to halt imports of Russian natural gas by the end of 2027 and prohibit new contracts starting in 2025 while exploring gas price cap strategies to contain market volatility. However, Hungary's continued imports of Russian energy complicate these efforts. The TurkStream pipeline, in particular, has become a focal point in discussions about the EU's energy strategy, as it enables ongoing Russian gas exports to Europe despite the bloc's broader decoupling initiatives.

Hungary's actions have raised concerns among other EU member states about the effectiveness of the sanctions regime and the potential for other countries to exploit similar loopholes. There are calls for stricter policies, including banning spot gas purchases and enforcing traceability of gas origins, and consideration of emergency measures to limit electricity prices to ensure genuine energy independence and reduce overreliance on external suppliers.

Hungary's steadfast energy relationship with Russia presents a significant challenge to the European Union's collective efforts to reduce dependence on Russian energy sources. While Hungary argues that its energy strategy is in the national interest, it risks undermining EU solidarity and the bloc's broader geopolitical objectives. As the EU continues to navigate its energy transition and response to the ongoing conflict in Ukraine, including energy ceasefire violations reported by both sides, Hungary's position will remain a critical point of contention within the union.

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EU Electricity Market Reform advances two-way CfDs, PPAs, and fixed-price tariffs to cut volatility, support renewables and nuclear, stabilize investor revenues, and protect consumers from price spikes across wholesale power markets.

Key Points

An EU plan expanding two-way CfDs, PPAs, and fixed-price contracts to curb price swings and support low-carbon power.

✅ Two-way CfDs return excess revenues to consumers

✅ Boosts PPAs and fixed-price retail options

✅ Targets renewables, nuclear; limits fossil exposure

The European Union wants to expand the use of contracts that pay power plants a fixed price for electricity, a draft proposal showed, as part of an electricity market revamp to shield European consumers from big price swings.

The European Commission pledged last year to reform the EU's electricity market rules, after record-high gas prices, caused by cuts to Russian flows, sent power prices soaring, prompting debates over gas price cap strategies in response.

A draft of the EU executive's proposal, seen by Reuters on Tuesday and due to be published on Mar. 16, steered clear of the deep redesign of the electricity market that some member states have called for, even as nine EU countries opposed sweeping reforms as a fix earlier in the crisis, suggesting instead limited changes to nudge countries towards more predictable, fixed-price power contracts.

If EU countries want to support new investments in wind, solar, geothermal, hydropower and nuclear electricity, for example - a point over which France and Germany have wrestled - they should use a two-way contract for difference (CfD) or an equivalent contract, the draft said.

The aim is to provide a stable revenue stream to investors, and help make consumers' energy bills less volatile, even though rolling back electricity prices is tougher than it appears. Restricting this support to renewable and low-carbon electricity also aims to speed up Europe's shift away from fossil fuels.

Two-way CfDs offer generators a fixed "strike price" for their electricity, regardless of the price in short-term energy markets. If the market price is above the CfD strike price, then the extra revenue the generator receives should be handed out to final electricity consumers, the draft EU document said.

Countries should also make it easier for power buyers to sign power purchase agreements (PPA) - another type of long-term contract to directly buy electricity from a generator.

Governments should also make sure consumers have access to fixed-price electricity contracts - echoing France's new electricity pricing scheme to reassure Brussels - giving them the option to avoid a contract that would expose them to volatile prices swings in energy markets, the draft said.

If European energy prices were to spike to extreme levels again, the Commission suggested allowing national governments to temporarily intervene to fix prices while weighing emergency measures to limit prices where needed, and offer consumers and small businesses a share of their electricity at a lower price.

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Global Electricity Emissions Decline highlights a 2% drop as coal power falls, while wind and solar surge. EU and US decarbonize faster; China expands coal and gas, challenging Paris Agreement climate targets.

Key Points

A 2% annual fall in power-sector CO2, led by less coal and rising wind and solar in the EU and US.

✅ Coal generation fell 3% globally despite China growth

✅ EU and US cut coal; wind and solar up 15% worldwide

✅ Gas gains in US; rapid renewables rollout needed for targets

Carbon emissions from the global electricity system fell by 2% last year, the biggest drop in almost 30 years, as countries began to turn their backs on coal-fired power plants.

A new report on the world’s electricity generation revealed the steepest cut in carbon emissions since 1990, with IEA data indicating global totals flatlined in 2019 as the US and the EU turned to cleaner energy sources.

Overall, power from coal plants fell by 3% last year, even as China’s reliance on coal plants climbed for another year to make up half the world’s coal generation for the first time.

Coal generation in the US and Europe has halved since 2007, and last year collapsed by almost a quarter in the EU and by 16% in the US.

The report from climate thinktank Ember, formerly Sandbag, warned that the dent in the world’s coal-fired electricity generation relied on many one-off factors, including milder winters across many countries.

“Progress is being made on reducing coal generation, but nothing like with the urgency needed to limit climate change,” the report said.

Dave Jones, the lead author of the report, said governments must dramatically accelerate the global energy transition so that global coal generation collapses throughout the 2020s.

“To switch from coal into gas is just swapping one fossil fuel for another. The cheapest and quickest way to end coal generation is through a rapid rollout of carbon-free electricity such as wind and solar,” he said.

“But without concerted policymaker efforts to boost wind and solar, we will fail to meet climate targets. China’s growth in coal, and to some extent gas, is alarming but the answers are all there.”

The EU has made the fastest progress towards replacing coal with wind and solar power, while the US has increased its reliance on gas as Wall Street’s energy strategy shifted following its shale boom in recent years.

The report revealed that renewable wind and solar power rose by 15% in 2019 to make up 8% of the world’s electricity.

In the EU, wind and solar power made up almost a fifth of the electricity generated last year, and Europe’s oil majors are turning electric as the bloc stayed ahead of the US which relied on these renewable sources for 11% of its electricity. In China and India, renewable energy made up 8% and 9% of the electricity system, respectively.

To meet the Paris climate goals, the world needs to record a compound growth rate of 15% for wind and solar generation every year – which will require “a colossal effort”, the report warned.

The electricity generation report was published as a separate piece of research claimed that 38 out of 75 of the world’s largest asset managers are stalling on taking action on environmental, social and governance (ESG) issues, and amid investor pressure on utilities to release climate reports.

The latest ranking by Asset Owners Disclosure Project, a scheme managed by the investment campaign group ShareAction, found that the 38 asset managers have weak or nonexistent policy commitments and fail to account for their real-world impacts across their mainstream assets.

The survey also claimed that the investment managers often lack appropriate engagement and escalation processes on climate change, human rights and biodiversity.

Scores were based on a survey of activities in responsible investment governance, climate change, human rights, and biodiversity and ranged between AAA to E. Not a single asset manager was granted an AAA or AA rating, the top two scores available.

Felix Nagrawala, ShareAction analyst, said: “While many in the industry are eager to promote their ESG credentials, our analysis clearly indicates that few of the world’s largest asset managers can lay claim to having a truly sustainable approach across all their investments.”

ShareAction said the world’s six largest asset managers – including BlackRock (rated D), State Street (D) and Vanguard (E) – were among the worst performers.

Vanguard said it was committed to companies making “appropriate disclosures on governance, strategy and performance on relevant ESG risks”. BlackRock and State Street did not respond to a request for comment.

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BC Hydro SAP Oversight Report assesses B.C. Utilities Commission findings on misleading testimony, governance failures, public funds oversight, IT project risk, compliance gaps, audit controls, ratepayer impacts, and regulatory accountability in major enterprise software decisions.

Key Points

A summary of BCUC findings on BC Hydro's SAP IT project oversight, governance lapses, and regulatory compliance.

✅ BCUC probed testimony, cost overruns, and governance failures

✅ Project split to avoid scrutiny; incomplete records and late corrections

✅ Reforms pledged: stronger business cases, compliance, audit controls

B.C. Hydro misled the province’s independent regulator about an expensive technology program, thereby avoiding scrutiny on how it spent millions of dollars in public money, according to a report by the B.C. Utilities Commission.

The Crown power corporation gave inaccurate testimony to regulators about the software it had chosen, called SAP, for an information technology project that has cost $197 million, said the report.

“The way the SAP decision was made prevented its appropriate scrutiny by B.C. Hydro’s board of directors and the BCUC, reflecting governance risks seen in Manitoba Hydro board changes in other jurisdictions,” the commission found.

“B.C. Hydro’s CEO and CFO and its (audit and risk management board committee) members did not exhibit good business judgment when reviewing and approving the SAP decision without an expenditure approval or business case, highlighting how board upheaval at Hydro One can carry market consequences.”

The report was the result of a complaint made in 2016 by then-opposition NDP MLA Adrian Dix, who alleged B.C. Hydro lied to the regulatory commission to try to get approval for a risky IT project in 2008 that then went over budget and resulted in the firing of Hydro’s chief information officer.

The commission spent two years investigating. Its report outlined how B.C. Hydro split the IT project into smaller components to avoid scrutiny, failed to produce the proper planning document when asked, didn’t disclose cost increases of up to $38 million, reflecting pressures seen at Manitoba Hydro's debt across the sector, gave incomplete testimony and did not quickly correct the record when it realized the mistakes.

“Essentially all of the things I asserted were substantiated, and so I’m pleased,” Dix, who is now minister of health, said on Monday. “I think ratepayers can be pleased with it, because even though it was an elaborate process, it involves hundreds of millions of spending by a public utility and it clearly required oversight.”

The BCUC stopped short of agreeing with Dix’s allegation that the errors were deliberate. Instead it pointed toward a culture at B.C. Hydro of confusion, misunderstanding and fear of dealing with the independent regulatory process.

“Therefore, the panel finds that there was a culture of reticence to inform the BCUC when there was doubt about something, even among individuals that understood or should have understood the role of the BCUC, a pattern that can fuel Hydro One investor concerns in comparable markets,” read the report.

“Because of this doubt and uncertainty among B.C. Hydro staff, the panel finds no evidence to support a finding that the BCUC was intentionally misled. The panel finds B.C. Hydro’s culture of reticence to be inappropriate.”

By law, B.C. Hydro is supposed to get approval by the commission for rate changes and major expenditures. Its officials are often put under oath when providing information.

B.C. Hydro apologized for its conduct in 2016. The Crown corporation said Monday it supports the commission’s findings and has made improvements to management of IT projects, including more rigorous business case analyses.

“We participated fully in the commission’s process and acknowledged throughout the inquiry that we could have performed better during the regulatory hearings in 2008,” said spokesperson Tanya Fish.

“Since then, we have taken steps to ensure we meet the highest standards of openness and transparency during regulatory proceedings, including implementing a (thorough) awareness program to support staff in providing transparent and accurate testimony at all times during a regulatory process.”

The Ministry of Energy, which is responsible for B.C. Hydro, said in a statement it accepts all of the BCUC recommendations and will include the findings as part of a review it is conducting into Hydro’s operations and finances, including its deferred operating costs for context, and regulatory oversight.

Dix, who is now grappling with complex IT project management in his Health Ministry, said the lessons learned by B.C. Hydro and outlined in the report are important.

“I think the report is useful reading on all those scores,” he said. “It’s a case study in what shouldn’t happen in a major IT project.”

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OESP Eligibility 2024 updates Ontario electricity affordability: TOU, Tiered, Ultra-Low-Overnight price plans, online bill calculator, higher income thresholds, monthly credits for low-income households, and a winter disconnection ban for residential customers.

Key Points

Raises income thresholds and credits to help low-income Ontarians cut electricity costs and choose suitable price plans.

✅ TOU, Tiered, and ULO price plans with online bill calculator

✅ Income eligibility thresholds raised up to 35% on March 1, 2024

✅ Winter disconnection ban for residences: Nov 15, 2023 to Apr 30, 2024

Residential, small business and farm customers can choose their price plan, either Time-Of-Use (TOU), Tiered or the ultra-low overnight rates price plan available to many customers. The OEB has an online bill calculator to help customers who are considering a switch in price plans and monitoring changes for electricity consumers this year. 

The Government of Ontario announced on Friday, October 19, 2023, that it is raising the income eligibility thresholds that enable Ontarians to qualify for the Ontario Electricity Support Program (OESP) by up to 35 percent. OESP is part of Ontario’s energy affordability framework and other support for electric bills meant to reduce the cost of electricity for low-income households by applying a monthly credit directly on to electricity bills.. The higher income eligibility thresholds will begin on March 1, 2024.

The amount of OESP bill credit is determined by the number of people living in a home and the household’s combined income, and can help offset typical bill increases many customers experience. The current income thresholds cap income eligibility at $28,000 for one-person households and $52,000 for five-person households, and temporary measures like the off-peak price freeze have also influenced bills in recent periods.

The new income eligibility thresholds, which will be in effect beginning March 1, 2024, will allow many more families to access the program as rates are about to change across Ontario.

In addition, under the OEB’s winter disconnection ban, which follows the Nov. 1 rate increase, electricity distributors cannot disconnect residential customers for non-payment from November 15, 2023, to April 30, 2024.

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Saamis Solar Park advances Medicine Hat's renewable energy strategy, as DP Energy secures AUC approval for North America's largest urban solar, repurposing contaminated land; capacity phased from 325 MW toward an initial 75 MW.

Key Points

A 325 MW solar project in Medicine Hat, Alberta, repurposing contaminated land; phased to 75 MW under city ownership.

✅ City acquisition scales capacity to 75 MW in phased build

✅ AUC approval enables construction and grid integration

✅ Reuses phosphogypsum-impacted land near fertilizer plant

DP Energy, an Irish renewable energy developer, has finalized the sale of the Saamis Solar Park—a 325 megawatt (MW) solar project—to the City of Medicine Hat in Alberta, Canada. This transaction marks the development of North America's largest urban solar initiative, while mirroring other Canadian clean-energy deals such as Canadian Solar project sales that signal market depth.

Project Development and Approval

DP Energy secured development rights for the Saamis Solar Park in 2017 and obtained a development permit in 2021. In 2024, the Alberta Utilities Commission (AUC) granted approval for construction and operation, reflecting Alberta's solar growth trends in recent years, paving the way for the project's advancement.

Strategic Acquisition by Medicine Hat

The City of Medicine Hat's acquisition of the Saamis Solar Park aligns with its commitment to enhancing renewable energy infrastructure. Initially, the project was slated for a 325 MW capacity, which would significantly bolster the city's energy supply. However, the city has proposed scaling the project to a 75 MW capacity, focusing on a phased development approach, and doing so amid challenges with solar expansion in Alberta that influence siting and timing. This adjustment aims to align the project's scale with the city's current energy needs and strategic objectives.

Utilization of Contaminated Land

An innovative aspect of the Saamis Solar Park is its location on a 1,600-acre site previously affected by industrial activity. The land, near Medicine Hat's fertilizer plant, was previously compromised by phosphogypsum—a byproduct of fertilizer production. DP Energy's decision to develop the solar park on this site exemplifies a productive reuse of contaminated land, transforming it into a source of clean energy.

Benefits to Medicine Hat

The development of the Saamis Solar Park is poised to deliver multiple benefits to Medicine Hat:

• Energy Supply Enhancement: The project will augment the city's energy grid, much like municipal solar projects that provide local power, providing a substantial portion of its electricity needs.

• Economic Advantages: The city anticipates financial savings by reducing carbon tax liabilities, as lower-cost solar contracts have shown competitiveness, through the generation of renewable energy.

• Environmental Impact: By investing in renewable energy, Medicine Hat aims to reduce its carbon footprint and contribute to global sustainability efforts.

DP Energy's Ongoing Commitment

Despite the sale, DP Energy maintains a strong presence in Canada, where Indigenous-led generation is expanding, with a diverse portfolio of renewable energy projects, including solar, onshore wind, storage, and offshore wind initiatives. The company continues to focus on sustainable development practices, striving to minimize environmental impact while maximizing energy production efficiency.

The transfer of the Saamis Solar Park to the City of Medicine Hat represents a significant milestone in renewable energy development. It showcases effective land reutilization, strategic urban planning, and a shared commitment to sustainable energy solutions, aligning with federal green electricity procurement that reinforces market demand. This project not only enhances the city's energy infrastructure but also sets a precedent for integrating large-scale renewable energy projects within urban environments.

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