The Green Grid makes efficiency recommendations

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At a forum hosted in New York by the NYSE Euronext at the New York Stock Exchange, The Green Grid announced new tools and reports to assist business leaders and data center managers globally improve efficiency in their operations.

Representatives from The Green Grid, United States Environmental Protection Agency and United States Department of Energy, along with executives from a variety of industries, shared their challenges with data center energy management and offered practical steps for improvement.

The Green Grid presented the results of a recently completed assessment of a mid-tier data center operated by the EPA, along with recommendations for next steps that EPA can follow to improve efficiency.

"We applaud EPA's leadership in opening up their operations to this level of examination, and we encourage other organizations to work with us to develop standards and explore ways they can improve their own operations," said John Tuccillo, Chairman of the Board of The Green Grid. "If the EPA can deploy techniques that improve efficiency by 20 percent, they can save $15,000 per year in this one data center. IDC estimates that there are 75,000 similar-sized data centers across the United States, and if all of them could achieve that same level of savings, more than $1.1 billion in annual energy costs could be avoided in data centers across the country."

"We want to thank The Green Grid for their commitment to helping improve energy efficiency in data centers across the globe," said Linda Travers, Acting Chief Information Officer and Acting Assistant Administrator, Office of Environmental Information, EPA. "This is an excellent first step in the government's path to operating as efficiently as possible. As October is Energy Awareness Month, this marks an appropriate occasion for others to follow our lead."

The Green Grid continues to assist the Department of Energy in testing and validating the DC Pro tool, an online software tool provided by the U.S. Department of Energy to help industries worldwide identify how energy is being consumed by their data center(s) and identify the best opportunities for savings.

The Green Grid and the U.S. Department of Energy Save Energy Now program are working together to enhance the Department of Energy's DC Pro software tool suite by:

• ensuring common energy metrics between The Green Grid tools, DC Pro and the ENERGY STAR portfolio manager tool;

• developing an IT energy assessment module; and

• creating a complementary Certified Energy Practitioner program where data center energy professionals would perform energy assessments using DC Pro.

The Green Grid also announced new free online tools and maps designed to help data center and facilities managers in Japan and 33 European countries easily determine how much outside air — also known as free cooling — is available for individual data centers.

These new tools provide data center managers in Japan and Europe with real-world data to help lower energy consumption and related costs, potentially extending the life and improving the energy efficiency of data center facilities.

Using country and city names, data center managers in Europe or Japan can input their specific variables — such as local energy costs, IT load, and facility load — to determine the specific potential energy savings for individual facilities. In addition to free cooling from outside air, the tool provides information about savings that could be obtained using water-side economizers. For example:

• A 1 megawatt (1000kW) data center in Paris, France, with power at 13.2 cents per kW hour, could save EUR330,000 per year using free cooling, or EUR180,000 per year using a water-side economizer.

• A 1 megawatt (1000kw) data center in Tokyo, Japan, with power at JPY 24 per kW hour, could save JPY 43,020,000 per year using free cooling, or JPY 27,500,000 per year using a water side economizer.

Tools are now available for the U.S., Japan, and the following European countries: Armenia, Austria, Azerbaijan, Belarus, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Italy, Ireland, Latvia, Lithuania, Macedonia, Netherlands, Norway, Poland, Portugal, Romania, Russian Federation, Slovakia, Slovenia, Spain, Sweden, Switzerland, Ukraine, and United Kingdom.

The Green Grid also introduced a new free online tool for data center managers to record their Power Usage Effectiveness (PUE) scores that will establish global consistency in reporting the split between energy flowing to IT equipment and facility operations.

"The Green Grid's PUE metric is now widely adopted as the standard for measuring data center efficiency, and we've taken necessary steps to refine it so that it becomes even more impactful," said The Green Grid's Tuccillo. "We expect that the user-driven database will be an invaluable tool for data center managers to determine the relative energy efficiency of their operations by comparing to others across industries, or even inside their own company."

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UK electricity and gas networks making ‘unjustified’ profits

UK Energy Network Profits are under scrutiny as Ofgem price controls, Citizens Advice claims, and National Grid margins spark debate over monopolies, allowed returns, consumer bills, rebates, and future investment under tougher regulation.

 

Key Points

UK Energy Network Profits are returns set by Ofgem for regulated grid operators, shaping consumer bills and investment

✅ Ofgem sets allowed returns for monopoly networks via price controls

✅ Dispute over interest rates, bond yields, and risk premiums

✅ Reforms proposed: shorter controls, tougher investor incentives

 

Companies that run Britain’s electricity and gas networks, including National Grid, are making “eye-watering” profits at the expense of households, according to a well-known consumer group.

Citizens Advice believes £7.5bn in “unjustified” profits should be returned to consumers who pay for network costs via their electricity and gas bills, with parallels seen in a deferred BC Hydro costs report abroad, although its figures have been contested by the energy industry and regulator.

Ownership of electricity and gas networks came under the spotlight in the run-up to June’s general election, after the Labour party said in its manifesto it would bring both national and regional grid infrastructure to back into public ownership, amid wider debates about grid privatization concerns elsewhere, over time.

Electricity sector privatisation began in 1990 and the gas industry was privatised in 1986. Energy network companies — which own and operate the cables and wires that help deliver electricity and gas to homes and businesses — are in effect monopolies that are regulated by Ofgem. Ofgem evaluates what their costs, including the cost of capital to finance investments, might be over an eight-year “price control” period, similar to determinations like the OEB decision on Hydro One rates in Ontario, Canada. Citizens Advice claims many of the regulator’s calculations for the most recent price control went “considerably in networks’ financial favour”.

It believes assumptions Ofgem made about factors such as the future path of interest rates and returns on government bonds were too generous, with international contrasts like power theft challenges in India illustrating different risk contexts, as was the regulator’s assessment of the risk associated with operating a network company. 

These “generous” assumptions will lead to network companies making average profit margins of 19 per cent and an average return of 10 per cent for their investors at the expense of consumers, Citizens Advice claims in a report published on Wednesday, which recommends a shorter price control period to allow for more accurate forecasting.

“Decisions made by Ofgem have allowed gas and electricity network companies to make sky-high profits that we’ve found are not justified by their performance,” said Gillian Guy, chief executive of Citizens Advice. Ofgem defended its regulatory regime, saying it helped to cut costs, improve reliability and customer satisfaction. 

“Ofgem has already cut costs to consumers by 6 per cent in the current price control and secured a rebate of over £4.5bn from network companies and is engaging with the industry to deliver further savings, with some regions seeing Ontario electricity rate reductions for businesses as well,” said Dermot Nolan, chief executive of the energy regulator.

Mr Nolan insisted the next price controls would be “tougher for investors”. The current price controls for the gas and electricity transmission networks, plus gas distribution, run until 2021 and until 2023 for local electricity distribution networks.

“While we don’t agree with its modelling and the figures it has produced, the Citizens Advice report raises some important issues about network regulation which will be addressed in the next control,” Mr Nolan said.

The Energy Networks Association, a trade body, refuted the claims of Citizens Advice, insisting that costs had fallen by 17 per cent in real terms since privatisation. The current regulatory framework was established after a public consultation, it said, adding that today’s report repeated several old claims that had previously been rejected by the Competition and Markets Authority.

“Our energy networks are among the most reliable and lowest cost in the world and their performance has never been better. In the next six years energy network companies are forecasted to deliver £45bn of investment in the UK economy,” a spokesman for the networks association added. National Grid said that since 2013 it had generated savings of £460m for bill payers.

 

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Opinion: UK Natural Gas, Rising Prices and Electricity

European Energy Market Crisis drives record natural gas and electricity prices across the EU, as LNG supply constraints, Russian pipeline dependence, marginal pricing, and renewables integration expose volatility in liberalised power markets.

 

Key Points

A 2021 surge in European gas and electricity prices from supply strains, demand rebounds, and marginal pricing exposure.

✅ Record TTF gas and day-ahead power prices across Europe

✅ LNG constraints and Russian pipeline dependence tightened supply

✅ Debate over marginal pricing vs regulated models intensifies

 

By Ronan Bolton

The year 2021 was a turbulent one for energy markets across Europe, as Europe's energy nightmare deepened across the region. Skyrocketing natural gas prices have created a sense of crisis and will lead to cost-of-living problems for many households, as wholesale costs feed through into retail prices for gas and electricity over the coming months.

This has created immediate challenges for governments, but it should also encourage us to rethink the fundamental design of our energy markets as we seek to transition to net zero, with many viewing it as a wake-up call to ditch fossil fuels across the bloc.

This energy crisis was driven by a combination of factors: the relaxation of Covid-19 lockdowns across Europe created a surge in demand, while cold weather early in the year diminished storage levels and contributed to increasing demand from Asian economies. A number of technical issues and supply-side constraints also combined to limit imports of liquefied natural gas (LNG) into the continent.

Europe’s reliance on pipeline imports from Russia has once again been called into question, as Gazprom has refused to ride to the rescue, only fulfilling its pre-existing contracts. The combination of these, and other, factors resulted in record prices – the European benchmark price (the Dutch TTF Gas Futures Contract) reached almost €180/MWh on 21 December, with average day-ahead electricity prices exceeding €300/MWh across much of the continent in the following days.

Countries which rely heavily on natural gas as a source of electricity generation have been particularly exposed, with governments quickly put under pressure to intervene in the market.

In Spain the government and large energy companies have clashed over a proposed windfall tax on power producers. In Ireland, where wind and gas meet much of the country’s surging electricity demand, the government is proposing a €100 rebate for all domestic energy consumers in early 2022; while the UK government is currently negotiating a sector-wide bailout of the energy supply sector and considering ending the gas-electricity price link to curb bills.

This follows the collapse of a number of suppliers who had based their business models on attracting customers with low prices by buying cheap on the spot market. The rising wholesale prices, combined with the retail price cap previously introduced by the Theresa May government, led to their collapse.

While individual governments have little control over prices in an increasingly globalised and interconnected natural gas market, they can exert influence over electricity prices as these markets remain largely national and strongly influenced by domestic policy and regulation. Arising from this, the intersection of gas and power markets has become a key site of contestation and comment about the role of government in mitigating the impacts on consumers of rising fuel bills, even as several EU states oppose major reforms amid the price spike.

Given that renewables are constituting an ever-greater share of production capacity, many are now questioning why gas prices play such a determining role in electricity markets.

As I outline in my forthcoming book, Making Energy Markets, a particular feature of the ‘European model’ of liberalised electricity trade since the 1990s has been a reliance on spot markets to improve the efficiency of electricity systems. The idea was that high marginal prices – often set by expensive-to-run gas peaking plants – would signal when capacity limits are reached, providing clear incentives to consumers to reduce or delay demand at these peak periods.

This, in theory, would lead to an overall more efficient system, and in the long run, if average prices exceeded the costs of entering the market, new investments would be made, thus pushing the more expensive and inefficient plants off the system.

The free-market model became established during a more stable era when domestically-sourced coal, along with gas purchased on long-term contracts from European sources (the North Sea and the Netherlands), constituted a much greater proportion of electricity generation.

While prices fluctuated, they were within a somewhat predictable range, and provided a stable benchmark for the long-term contracts underpinning investment decisions. This is no longer the case as energy markets become increasingly volatile and disrupted during the energy transition.

The idea that free price formation in a competitive market, with governments standing back, would benefit electricity consumers and lead to more efficient systems was rooted in sound economic theory, and is the basis on which other major commodity markets, such as metals and agricultural crops, have been organised for decades.

The free-market model applied to electricity had clear limitations, however, as the majority of domestic consumers have not been exposed directly to real-time price signals. While this is changing with the roll-out of smart meters in many countries, the extent to which the average consumer will be willing or able to reduce demand in a predicable way during peak periods remains uncertain.

Also, experience shows that governments often come under pressure to intervene in markets if prices rise sharply during periods of scarcity, thus undermining a basic tenet of the market model, with EU gas price cap strategies floated as one option.

Given that gas continues to play a crucial role in balancing supply and demand for electricity, the options available to governments are limited, illustrating why rolling back electricity prices is harder than it appears for policymakers. One approach would be would be to keep faith with the liberalised market model, with limited interventions to help consumers in the short term, while ultimately relying on innovations in demand side technologies and alternatives to gas as a means of balancing systems with high shares of variable renewables.

An alternative scenario may see a return to old style national pricing policies, involving a move away from marginal pricing and spot markets, even as the EU prepares to revamp its electricity market in response. In the past, in particular during the post-WWII decades, and until markets were liberalised in the 1990s, governments have taken such an approach, centrally determining prices based on the costs of delivering long term system plans. The operation of gas plants and fuel procurement would become a much more regulated activity under such a model.

Many argue that this ‘traditional model’ better suits a world in which governments have committed to long-term decarbonisation targets, and zero marginal cost sources, such as wind and solar, play a more dominant role in markets and begin to push down prices.

A crucial question for energy policy makers is how to exploit this deflationary effect of renewables and pass-on cost savings to consumers, whilst ensuring that the lights stay on.

Despite the promise of storage technologies such as grid-scale batteries and hydrogen produced from electrolysis, aside from highly polluting coal, no alternative to internationally sourced natural gas as a means of balancing electricity systems and ensuring our energy security is immediately available.

This fact, above all else, will constrain the ambitions of governments to fundamentally transform energy markets.

Ronan Bolton is Reader at the School of Social and Political Science, University of Edinburgh and Co-Director of the UK Energy Research Centre. His book Making Energy Markets: The Origins of Electricity Liberalisation in Europe is to be published by Palgrave Macmillan in 2022.

 

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Biden calls for 100 percent clean electricity by 2035. Here’s how far we have to go.

Biden Clean Energy Plan 2035 accelerates carbon-free electricity with renewables, nuclear, hydropower, and biomass, invests $2T in EVs, grid and energy efficiency, and tightens fuel economy standards beyond the Clean Power Plan.

 

Key Points

A $2T U.S. climate plan for carbon-free power by 2035, boosting renewables, nuclear, EVs, efficiency, and grid upgrades.

✅ Targets a zero-carbon electric grid nationwide by 2035

✅ Includes renewables, nuclear, hydropower, and biomass in standard

✅ Funds EVs, grid modernization, weatherization, and fuel economy rules

 

This month the Democratic presumptive presidential nominee, Joe Biden, outlined an ambitious plan, including Biden’s solar plan to expand clean energy, for tackling climate change that shows how far the party has shifted on the issue since it controlled the White House.

President Barack Obama’s Clean Power Plan had called for the electricity sector to cut its carbon pollution 32 percent by 2030, and did not lay out a trajectory for phasing out oil, coal or natural gas production.

This year, Democratic 2020 hopefuls such as Sen. Bernie Sanders (I-Vt.) went much further, suggesting the United States should derive all of its electricity from renewable sources by 2030, moving to 100% renewables as part of a $16.3 trillion plan to wean the nation away from fossil fuels. Many other congressional Democrats have embraced the Green New Deal — the nonbinding resolution calling for a carbon-free power sector by 2030 and more energy efficient buildings and vehicles, along with a massive investment in electric vehicles and high-speed rail.

Last year, 38 percent of U.S. electricity generated came from clean sources, according to a Washington Post analysis of data from the U.S. Energy Information Administration, and in April renewables hit a record 28% nationwide.

Biden’s new plan, which carries a price tag of $2 trillion, would eliminate carbon emissions from the electric sector by 2035, impose stricter gas mileage standards, fund investments to weatherize millions of homes and commercial buildings, and upgrade the nation’s transportation system. To reach its 2035 carbon-free electricity goal, the campaign includes wind, solar and several forms of energy, acknowledging why the grid isn’t yet 100% renewable while balancing reliability, that are not always counted in state renewable portfolio standards, such as nuclear, hydropower and biomass.

“A great appeal of the Biden proposal is that it is much closer to targeting carbon directly, which is the ultimate enemy, and plays fewer favorites with particular technologies,” said Michael Greenstone, who directs the University of Chicago’s Energy Policy Institute. “This will reduce the costs to consumers and give more carbon bang for the buck.”

But some environmentalists, such as Friends of the Earth President Erich Pica, question the idea of including more controversial carbon-free technologies. “There is no role for nuclear in a least-cost, low carbon world. Including these dinosaurs in a clean energy standard is going to incentivize industry efforts to keep aging, dangerous facilities online,” Pica said in an email.

Hydropower, which relies on a system of moving water that constantly recharges, is defined as renewable by the Environmental Protection Agency. Biomass is often considered as carbon neutral because even though it releases carbon dioxide when it is burned, the plants capture nearly the same amount of CO2 while growing.


Both forms of energy have come under fire for their environmental impacts, however. Damming streams and rivers can destroy fish habitat and make it more difficult for them to spawn, and it also seems unlikely that hydropower will expand its current 6 percent share of the nation’s electrical grid.

Many experts argue that classifying biomass energy as carbon neutral provides an incentive to cut down trees that would otherwise remain standing and sequester carbon. “If burning this wood were good for the climate, then we should not recycle paper, we should burn it,” noted Tim Searchinger, a research scholar at the Princeton School of Public and International Affairs.

Illinois lead the nation in the amount of electricity generated from nuclear power

More than half of the country — 30 states, Washington, and three territories — have adopted a renewable portfolio standard (RPS), according to the National Conference of State Legislatures, and seven states and one territory have set renewable energy goals. While 14 states, along with the District, Puerto Rico and the Virgin Islands, have established requirements of 50 percent or more carbon-free electricity, nearly as many have set theirs at 15 percent or less.

Maine Gov. Janet Mills (D), who has called for 100% renewable electricity in the state, has pushed clean electricity aggressively since taking office in 2019, lifting a wind energy moratorium imposed by her predecessor and signing bills aimed at expanding the state’s carbon-free energy sources. Biomass accounts for a quarter of the state’s electricity, more than any other state.

New York has one of the country’s most ambitious climate targets, which it scaled up last year. It aims to obtain 70 percent of its power from renewable sources within a decade, a period when renewables surpassed coal in U.S. generation, and eliminate carbon altogether by 2040, even as the state is in the process of shutting down a major nuclear plant near New York City, Indian Point, which is slated to cease operating on April 30, 2021.

... while other states are weakening theirs

Last year, Ohio weakened its renewable energy standard from a target of 12.5 percent in 2027 to 8.5 percent by 2026, even as renewables topped coal nationwide for the first time in over a century, without setting any future goals, and jettisoned its energy efficiency standard. West Virginia — which established modest renewable requirements in 2009 — repealed them altogether in 2015, the year they were set to take effect.

 

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Canadian Scientists say power utilities need to adapt to climate change

Canada Power Grid Climate Resilience integrates extreme weather planning, microgrids, battery storage, renewable energy, vegetation management, and undergrounding to reduce outages, harden infrastructure, modernize utilities, and safeguard reliability during storms, ice events, and wildfires.

 

Key Points

Canada's grid resilience hardens utilities against extreme weather using microgrids, storage, renewables, and upgrades.

✅ Grid hardening: microgrids, storage, renewable integration

✅ Vegetation management reduces storm-related line contact

✅ Selective undergrounding where risk and cost justify

 

The increasing intensity of storms that lead to massive power outages highlights the need for Canada’s electrical utilities to be more robust and innovative, climate change scientists say.

“We need to plan to be more resilient in the face of the increasing chances of these events occurring,” University of New Brunswick climate change scientist Louise Comeau said in a recent interview.

The East Coast was walloped this week by the third storm in as many days, with high winds toppling trees and even part of a Halifax church steeple, underscoring the value of storm-season electrical safety tips for residents.

Significant weather events have consistently increased over the last five years, according to the Canadian Electricity Association (CEA), which has tracked such events since 2003.

#google#

Nearly a quarter of total outage hours nationally in 2016 – 22 per cent – were caused by two ice storms, a lightning storm, and the Fort McMurray fires, which the CEA said may or may not be classified as a climate event.

“It (climate change) is putting quite a lot of pressure on electricity companies coast to coast to coast to improve their processes and look for ways to strengthen their systems in the face of this evolving threat,” said Devin McCarthy, vice president of public affairs and U.S. policy for the CEA, which represents 40 utilities serving 14 million customers.

The 2016 figures – the most recent available – indicate the average Canadian customer experienced 3.1 outages and 5.66 hours of outage time.

McCarthy said electricity companies can’t just build their systems to withstand the worst storm they’d dealt with over the previous 30 years. They must prepare for worse, and address risks highlighted by Site C dam stability concerns as part of long-term planning.

“There needs to be a more forward looking approach, climate science led, that looks at what do we expect our system to be up against in the next 20, 30 or 50 years,” he said.

Toronto Hydro is either looking at or installing equipment with extreme weather in mind, Elias Lyberogiannis, the utility’s general manager of engineering, said in an email.

That includes stainless steel transformers that are more resistant to corrosion, and breakaway links for overhead service connections, which allow service wires to safely disconnect from poles and prevents damage to service masts.

Comeau said smaller grids, tied to electrical systems operated by larger utilities, often utilize renewable energy sources such as solar and wind as well as battery storage technology to power collections of buildings, homes, schools and hospitals.

“Capacity to do that means we are less vulnerable when the central systems break down,” Comeau said.

Nova Scotia Power recently announced an “intelligent feeder” pilot project, which involves the installation of Tesla Powerwall storage batteries in 10 homes in Elmsdale, N.S., and a large grid-sized battery at the local substation. The batteries are connected to an electrical line powered in part by nearby wind turbines.

The idea is to test the capability of providing customers with back-up power, while collecting data that will be useful for planning future energy needs.

Tony O’Hara, NB Power’s vice-president of engineering, said the utility, which recently sounded an alarm on copper theft, was in the late planning stages of a micro-grid for the western part of the province, and is also studying the use of large battery storage banks.

“Those things are coming, that will be an evolution over time for sure,” said O’Hara.

Some solutions may be simpler. Smaller utilities, like Nova Scotia Power, are focusing on strengthening overhead systems, mainly through vegetation management, while in Ontario, Hydro One and Alectra are making major investments to strengthen infrastructure in the Hamilton area.

“The number one cause of outages during storms, particularly those with high winds and heavy snow, is trees making contact with power lines,” said N.S. Power’s Tiffany Chase.

The company has an annual budget of $20 million for tree trimming and removal.

“But the reality is with overhead infrastructure, trees are going to cause damage no matter how robust the infrastructure is,” said Matt Drover, the utility’s director for regional operations.

“We are looking at things like battery storage and a variety of other reliability programs to help with that.”

NB Power also has an increased emphasis on tree trimming and removal, and now spends $14 million a year on it, up from $6 million prior to 2014.

O’Hara said the vegetation program has helped drive the average duration of power outages down since 2014 from about three hours to two hours and 45 minutes.

Some power cables are buried in both Nova Scotia and New Brunswick, mostly in urban areas. But both utilities maintain it’s too expensive to bury entire systems – estimated at $1 million per kilometre by Nova Scotia Power.

The issue of burying more lines was top of mind in Toronto following a 2013 ice storm, but that’s city’s utility also rejected the idea of a large-scale underground system as too expensive – estimating the cost at around $15 billion, while Ontario customers have seen Hydro One delivery rates rise in recent adjustments.

“Having said that, it is prudent to do so for some installations depending on site specific conditions and the risks that exist,” Lyberogiannis said.

Comeau said lowering risks will both save money and disruption to people’s lives.

“We can’t just do what we used to do,” said Xuebin Zhang, a senior climate change scientist at Environment and Climate Change Canada.

“We have to build in management risk … this has to be a new norm.”

 

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COVID-19 Pandemic Puts $35 Billion in Wind Energy Investments at Risk, Says Industry Group

COVID-19 Impact on U.S. Wind Industry: disrupting wind power projects, tax credits, and construction timelines, risking rural revenues, jobs, and $35B investments; AWEA seeks Congressional flexibility as OEM shutdowns like Siemens Gamesa intensify delays.

 

Key Points

Pandemic disruptions threaten 25 GW of projects, $35B investment, rural revenues, jobs, and tax-credit timelines.

✅ 25 GW at risk; $35B investment jeopardized

✅ Rural taxes and land-lease payments may drop $8B

✅ AWEA seeks Congressional flexibility on tax-credit deadlines

 

In one of the latest examples of the havoc that the novel coronavirus is wreaking on the U.S. economy and the crisis hitting solar and wind sector alike, the American Wind Energy Association (AWEA) -- the national trade association for the U.S. wind industry -- yesterday stated its concerns that COVID-19 will "pose significant challenges to the American wind power industry." According to AWEA's calculations, the disease is jeopardizing the development of approximately 25 gigawatts of wind projects, representing $35 billion in investments, even as wind additions persist in some markets amid the pandemic.

Rural communities, where about 99% of wind projects are located, in particular, face considerable risk. The AWEA estimates that rural communities stand to lose about $8 billion in state and local tax payments and land-lease payments to private landowners. In addition, it's estimated that the pandemic threatens the loss of over 35,000 jobs, and the U.S. wind jobs outlook underscores the stakes, including wind turbine technicians, construction workers, and factory workers.

The development of wind projects is heavily reliant on the earning of tax credits, and debates over a Solar ITC extension highlight potential impacts on wind. However, in order to qualify for the current credits, project developers are bound to begin construction before Dec. 31, 2020. With local and state governments implementing various measures to stop the spread of the virus, the success of project developers' meeting this deadline is dubious, as utility-scale solar construction slows nationwide due to COVID-19. Addressing this and other challenges, the AWEA is turning to the government for help. In the trade association's press release, it states that "to protect the industry and these workers, AWEA is asking Congress for flexibility in allowing existing policies to continue working for the industry through this period of uncertainty."

Illustrating one of the ways in which COVID-19 is affecting the industry, Siemens Gamesa, a global leader in the manufacturing of wind turbines, closed a second Spanish factory this week after learning that a second of its employees had tested positive for the novel coronavirus.

 

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Is a Resurgence of Nuclear Energy Possible in Germany?

Germany Nuclear Phase-Out reflects a decisive energy policy shift, retiring reactors as firms shun new builds amid high costs, radioactive waste challenges, climate goals, insurance gaps, and debate over small modular reactors and subsidies.

 

Key Points

Germany's policy to end nuclear plants and block new builds, emphasizing safety, waste, climate goals, and viability.

✅ Driven by safety risks, waste storage limits, and insurance gaps

✅ High capital costs and subsidies make new reactors uneconomic

✅ Political debate persists; SMRs raise cost and proliferation concerns

 

A year has passed since Germany deactivated its last three nuclear power plants, marking a significant shift in its energy policy.

Nuclear fission once heralded as the future of energy in Germany during the 1960s, was initially embraced with minimal concern for the potential risks of nuclear accidents. As Heinz Smital from Greenpeace recalls, the early optimism was partly driven by national interest in nuclear weapon technology rather than energy companies' initiatives.

Jochen Flasbarth, State Secretary in the Ministry of Development, reflects on that era, noting Germany's strong, almost naive, belief in technology. Germany, particularly the Ruhr region, grappled with smog-filled skies at that time due to heavy industrialization and coal-fired power plants. Nuclear energy presented a "clean" alternative at the time.

This sentiment was also prevalent in East Germany, where the first commercial nuclear power plant came online in 1961. In total, 37 nuclear reactors were activated across Germany, reflecting a widespread confidence in nuclear technology.

However, the 1970s saw a shift in attitudes. Environmental activists protested the construction of new power plants, symbolizing a generational rift. The 1979 Three Mile Island incident in the US, followed by the catastrophic Chornobyl disaster in 1986, further eroded public trust in nuclear energy.

The Chornobyl accident, in particular, significantly dampened Germany's nuclear ambitions, according to Smital. Post-Chernobyl, plans for additional nuclear power plants in Germany, once numbering 60, drastically declined.

The emergence of the Green Party in 1980, rooted in anti-nuclear sentiment, and its subsequent rise to political prominence further influenced Germany's energy policy. The Greens, joining forces with the Social Democrats in 1998, initiated a move away from nuclear energy, facing opposition from the Christian Democrats (CDU) and Christian Social Union (CSU).

However, the Fukushima disaster in 2011 prompted a policy reversal from CDU and CSU under Chancellor Angela Merkel, leading to Germany's eventual nuclear phase-out in March 2023, after briefly extending nuclear power amid the energy crisis.

Recently, the CDU and CSU have revised their stance once more, signaling a potential U-turn on the nuclear phaseout, advocating for new nuclear reactors and the reactivation of the last shut-down plants, citing climate protection and rising fossil fuel costs. CDU leader Friedrich Merz has lamented the shutdown as a "black day for Germany." However, these suggestions have garnered little enthusiasm from German energy companies.

Steffi Lemke, the Federal Environment Minister, isn't surprised by the companies' reluctance, noting their longstanding opposition to nuclear power, which she argues would do little to solve the gas issue in Germany, due to its high-risk nature and the long-term challenge of radioactive waste management.

Globally, 412 reactors are operational across 32 countries, even as Europe is losing nuclear power during an energy crunch, with the total number remaining relatively stable over the years. While countries like China, France, and the UK plan new constructions, there's a growing interest in small, modern reactors, which Smital of Greenpeace views with skepticism, noting their potential military applications.

In Germany, the unresolved issue of nuclear waste storage looms large. With temporary storage facilities near power plants proving inadequate for long-term needs, the search for permanent sites faces resistance from local communities and poses financial and logistical challenges.

Environment Minister Lemke underscores the economic impracticality of nuclear energy in Germany, citing prohibitive costs and the necessity of substantial subsidies and insurance exemptions.

As things stand, the resurgence of nuclear power in Germany appears unlikely, with economic factors playing a decisive role in its future.

 

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