Opinion: Germany's drive for renewable energy is a cautionary tale

Clean Power Plan Rollback signals EPA's shift to inside-the-fence efficiency at coal plants, emphasizing heat-rate improvements over sector-wide decarbonization, renewables, natural gas switching, demand-side efficiency, and carbon capture under Clean Air Act constraints.

Key Points

A policy shift by the EPA to replace broad emissions rules with plant-level efficiency standards, limiting CO2 cuts.

✅ Inside-the-fence heat-rate improvements at coal units

✅ Potential CO2 cuts limited to about 6% per plant

✅ Alternatives: fuel switching, renewables, carbon capture

President Barack Obama’s signature plan to reduce carbon dioxide emissions from electrical generation took years to develop and touched every aspect of power production and use, from smokestacks to home insulation.

The Trump administration is moving to scrap that plan and has signaled that any alternative it might adopt would take a much less expansive approach, possibly just telling utilities to operate their plants more efficiently.

That’s a strategy environmentalists say is almost certain to fall short of what’s needed.

The Trump administration is making "a wholesale retreat from EPA’s legal, scientific and moral obligation to address the threats of climate change," said former Environmental Protection Agency head Gina McCarthy, the architect of Obama’s Clean Power Plan.

President Donald Trump promised to rip up the initiative, echoing an end to the 'war on coal' message from his campaign, which mandated that states change their overall power mix, displacing coal-fired electricity with that from wind, solar and natural gas. The EPA is about to make it official, arguing the prior administration violated the Clean Air Act by requiring those broad changes to the electricity sector, according to a draft obtained by Bloomberg.

Possible Replacements

Later, the agency will also ask the public to weigh in on possible replacements. The administration will ask whether the EPA can or should develop a replacement rule -- and, if so, what actions can be mandated at individual power plants, though some policymakers favor a clean electricity standard to drive broader decarbonization.

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Such changes -- such as adding automation or replacing worn turbine seals -- would yield at most a 6 percent gain in efficiency, along with a corresponding fall in greenhouse gas emissions, according to earlier modeling by the Environmental Protection Agency and other analysts. That compares to the 32 percent drop in emissions by 2030 under Obama’s Clean Power Plan.

"In these existing plants, there’s only so many places to look for savings," said John Larsen, a director of the Rhodium Group, a research firm. "There’s only so many opportunities within a big spinning machine like that."

EPA Administrator Scott Pruitt outlined such an "inside-the-fence-line" approach in 2014, later embodied in the Affordable Clean Energy rule that industry groups backed, when he served as Oklahoma’s attorney general. Under his blueprint, states would set emissions standards after a detailed unit-by-unit analysis, looking at what reductions are possible given "the engineering limits of each facility."

The EPA has not decided whether it will promulgate a new rule at all, though it has also proposed new pollution limits for coal and gas plants in separate actions. In a forthcoming advanced notice of proposed rulemaking, the EPA will ask "what inside-the-fence-line options are legal, feasible and appropriate," according to a document obtained by Bloomberg.

Increased efficiency at a coal plant -- known as heat-rate improvement -- translates into fewer carbon-dioxide emissions per unit of electric power generated.

Under Obama, the EPA envisioned utilities would make some straightforward efficiency improvements at coal-fired power plants as the first step to comply with the Clean Power Plan. But that was expected to coincide with bigger, broader changes -- such as using more cleaner-burning natural gas, adding more renewable power projects and simply encouraging customers to do a better job turning down their thermostats and turning off their lights.

Obama’s EPA didn’t ask utilities to wring every ounce of efficiency they could out of coal-fired power plants because they saw the other options as cheaper. A plant-specific approach "would be grossly insufficient to address the public health and environmental impacts from CO2 emissions," Obama’s EPA said.

That approach might yield modest emissions reductions and, in a perverse twist, might event have the opposite effect. If utilities make coal plants more efficient -- thereby driving down operating costs -- they also make them more competitive with natural gas and renewables, "so they might run more and pollute more," said Conrad Schneider, advocacy director for the Clean Air Task Force.  

In a competitive market, any improvement in emissions produced for each unit of energy could be overwhelmed by an increase in electrical output, and debates over changes to electricity pricing under Trump and Perry added further uncertainty.

"A very minor heat rate improvement program would very likely result in increased emissions," Schneider said. "It might be worse than nothing."

Power companies want to get as much electricity as possible from every pound of coal, so they already have an incentive to keep efficiency high, said Jeff Holmstead, a former assistant EPA administrator now at Bracewell LLP. But an EPA regulation known as “new source review” has discouraged some from making those changes, for fear of triggering other pollution-control requirements, he said.

"If EPA’s replacement rule allows companies to improve efficiency without triggering new source review, it would make a real difference in terms of reducing carbon-dioxide emissions," Holmstead said.

Modest Impact

A plant-specific approach doesn’t have to mean modest impact.

"If you’re thinking about what can be done at the power plants by themselves, you don’t stop at efficiency tune-ups," said David Doniger, director of the Natural Resources Defense Council’s climate and clean air program. "You look at things like switching to natural gas or installing carbon capture and storage."

Requirements that facilities use carbon capture technology or swap in natural gas for coal could actually come close to hitting the same goals as in Obama’s Clean Power Plan -- if not go even further, Schneider said. They just would cost more.

The benefit of the Clean Power Plan "is that it enabled states to create programs and enabled companies to find a reduction strategy that was the most efficient and made the most sense for their own content," said Kathryn Zyla, deputy director of the Georgetown Climate Center. "And that flexibility was really important for the states and companies."

Some utilities, including Houston-based Calpine Corp., PG&E Corp. and Dominion Resources Inc., backed the Obama-era approach. And they are still pushing the Trump administration to be creative now.

"The Clean Power Plan achieved a thoughtful, balanced approach that gave companies and states considerable flexibility on how best to pursue that goal," said Melissa Lavinson, vice president of federal affairs and policy for PG&E’s Pacific Gas and Electric utility. “We look forward to working with the administration to devise an alternative plan for decarbonizing the U.S. economy."

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Ontario CEAP Program provides one-time electricity bill relief for residential consumers via local utilities, supports low-income households, aligns with COVID-19 recovery rates, and complements time-of-use pricing options and the winter disconnection ban.

Key Points

A one-time electricity bill credit for eligible Ontario households affected by COVID-19, available via local utilities.

✅ Apply through your local distribution company or utility

✅ One-time credit for overdue electricity bills from COVID-19

✅ Complements TOU options, OER, and winter disconnection ban

Applications for the CEAP program for Ontario residential consumers has opened. Residential customers across the province can now apply for funding through their local distribution company/utility.

On June 1st, our government announced a suite of initiatives to support Ontario’s electricity consumers amid changes for electricity consumers during the pandemic, including a $9 million investment to support low-income Ontarians through the COVID-19 Energy Assistance Program (CEAP). CEAP will provide a one-time payment to Ontarians who are struggling to pay down overdue electricity bills incurred during the COVID-19 outbreak.

These initiatives include:

• $9 million for the COVID-19 Energy Assistance Program (CEAP) to support consumers struggling to pay their energy bills during the pandemic. CEAP will provide one-time payments to consumers to help pay down any electricity bill debt incurred over the COVID19 period. Applications will be available through local utilities in the upcoming months;
• $8 million for the COVID-19 Energy Assistance Program for Small Business (CEAP-SB) to provide support to businesses struggling with bill payments as a result of the outbreak; and
• An extension of the Ontario Energy Board’s winter disconnection ban until July 31, 2020 to ensure no one is disconnected from their natural gas or electricity service during these uncertain times.

More information about applications for the CEAP for Small Business will be coming later this summer, as electricity rates are about to change across Ontario for many customers.

In addition, the government recently announced that it will continue the suspension of time-of-use (TOU) electricity rates and, starting on June 1, 2020, customers will be billed based on a new fixed COVID-19 hydro rate of 12.8 cents per kilowatt hour. The COVID-19 Recovery Rate, which some warned in analysis could lead to higher hydro bills will be in place until October 31, 2020.

Later in the pandemic, Ontario set electricity rates at the off-peak price until February 7 to provide additional relief.

“Starting November 1, 2020, our government has announced Ontario electricity consumers will have the option to choose between time-of-use and tiered electricity pricing plan, following the Ontario Energy Board’s new rate plan prices and support thresholds announcement. We are proud to soon offer Ontarians the ability to choose an electricity plan that best suits for their lifestyle,” said Jim McDonell, MPP for Stormont–Dundas–South Glengarry.

The government will continue to subsidize electricity bills by 31.8 per cent through the Ontario Electricity Rebate.

The government is providing approximately $5.6 billion in 2020-21 as part of its existing electricity cost relief programs and conservation initiatives such as the Peak Perks program to help ensure more affordable electricity bills for eligible residential, farm and small business consumers.

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Spring Storm Grid Risks highlight tornado outbreaks, flooding, power outages, and transmission disruptions, with NOAA flood outlooks, coal and barge delays, vulnerable nuclear sites, and distribution line damage demanding resilience, reliability, and emergency preparedness.

Key Points

Spring Storm Grid Risks show how tornadoes and floods disrupt power systems, fuel transport, and plants guide resilience.

✅ Tornado outbreaks and derechos damage distribution and transmission

✅ Flooding drives outages via treefall, substation and plant inundation

✅ Fuel logistics disrupted: rail coal, river barges, road access

The storm and tornado outbreak that recently barreled through the US Midwest, South and Mid-Atlantic was a devastating reminder of how much danger spring can deliver, despite it being the “milder” season compared to summer and winter.  

Danger season is approaching, and the country is starting to see the impacts. 

The event killed at least 32 people across seven states. The National Weather Service is still tallying up the number of confirmed tornadoes, which has already passed 100. Communities coping with tragedy are assessing the damage, which so far includes at least 72 destroyed homes in one Tennessee county alone, and dozens more homes elsewhere. 

On Saturday, April 1–the day after the storm struck–there were 1.1 million US utility customers without power, even as EIA reported a January power generation surge earlier in the year. On Monday morning, April 3, there were still more than 80,000 customers in the dark, according to PowerOutage.us. The storm system brought disruptions to both distribution grids–those networks of local power lines you generally see running overhead to buildings–as well as the larger transmission grid in the Midwest, which is far less common than distribution-level issues. 

While we don’t yet have a lot of granular details about this latest storm’s grid impacts, recent shifts in demand like New York City's pandemic power patterns show how operating conditions evolve, and it’s worth going through what else the country might be in for this spring, as well as in future springs. Moreover, there are steps policymakers can take to prepare for these spring weather phenomena and bolster the reliability and resilience of the US power system. 

Heightened flood risk 
The National Oceanic Atmospheric Administration (NOAA) said in a recent outlook that about 44 percent of the United States is at risk of floods this spring, equating to about 146 million people. This includes most of the eastern half of the country, the federal agency said. 

The agency also sees “major” flood risk potential in some parts of the Upper Mississippi River Basin, and relatively higher risk in the Sierra Nevada region, due in part to a historic snowpack in California.  

Multiple components of the power system can be affected by spring floods. 

Power lines – Floods can saturate soil and make trees more likely to uproot and fall onto power lines. This has been contributing to power outages during California’s recent heavy storms–called atmospheric rivers–that started over the winter. In other regions, soil moisture has even been used as a predictor of where power outages will occur due to hurricanes, so that utility companies are better prepared to send line repair crews to the right areas. Hurricanes are primarily a summer and fall phenomenon, and summer also brings grid stress from air conditioning demand in many states, so for now, during spring, they are less of a concern.  

Fuel transport – Spring floods can hinder the transportation of fuels like coal. While it is a heavily polluting fossil fuel that is set to continue declining as a fuel source for US electricity generation, with the EIA summer outlook for wind and solar pointing to further shifts, coal still accounted for roughly 20 percent of the country’s generation in 2022.   

About 70 percent of US coal is transported at least part of the way by trains. The rail infrastructure to transport coal from the Powder River Basin in Montana and Wyoming–the country’s primary coal source–was proven to be vulnerable to extreme floods in the spring of 2011, and even more extreme floods in the spring of 2019. The 2019 floods’ disruptions of coal shipments to power plants via rail persisted for months and into the summertime, also affecting river shipments of coal by barge. In June 2019, hundreds of barges were stalled in the Mississippi River, through which millions of tons of the fossil fuel are normally transported. 

Power plants – Power plants themselves can also be at risk of flooding, since most of them are sited near a source of water that is used to create steam to spin the plants’ turbines, and conversely, low water levels can constrain hydropower as seen in Western Canada hydropower drought during recent reservoir shortfalls. Most US fossil fuel generating capacity from sources like methane gas, which recently set natural gas power records across the grid, and coal utilizes steam to generate electricity. 

However, much of the attention paid to the flood risk of power plant sites has centered on nuclear plants, a key source of low-carbon electricity discussed in IAEA low-carbon electricity lessons that also require a water source for the creation of steam, as well as for keeping the plant cool in an emergency. To name a notable flood example here in the United States–both visually and substantively–in 2011, the Fort Calhoun nuclear plant in Nebraska was completely surrounded by water due to late-spring flooding along the Missouri River. This sparked a lot of concerns because it was just a few months after the March 2011 meltdown of the Fukushima Daiichi nuclear plant in Japan. The public was thankfully not harmed by the Nebraska incident, but this was unfortunately not an isolated incident in terms of flood risks posed to the US nuclear power fleet. 

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Minnesota Carbon-Free Power by 2050 aims to shift utilities to renewable energy, wind and solar, boosting efficiency while managing grid reliability, emissions, and costs under a clean energy mandate and statewide climate policy.

Key Points

A statewide goal to deliver 100% carbon-free power by 2050, prioritizing renewables, efficiency, and grid reliability.

✅ Targets 100% carbon-free electricity statewide by 2050

✅ Prioritizes wind, solar, and efficiency before fossil fuels

✅ Faces utility cost, reliability, and legislative challenges

Gov. Tim Walz's plan for Minnesota to get 100 percent of its electricity from carbon-free sources by 2050, similar to California's 100% carbon-free mandate in scope, was criticized Tuesday at its first legislative hearing, with representatives from some of the state's smaller utilities saying they can't meet that goal.

Commerce Commissioner Steve Kelley told the House climate committee that the Democratic governor's plan is ambitious. But he said the state's generating system is "aging and at a critical juncture," with plants that produce 70 percent of the state's electricity coming up for potential retirement over the next two decades. He said it will ensure that utilities replace them with wind, solar and other innovative sources, and increased energy efficiency, before turning to fossil fuels.

"Utilities will simply need to demonstrate why clean energy would not work whenever they propose to replace or add new generating capacity," he said.

Walz's plan, announced last week, seeks to build on the success of a 2007 law that required Minnesota utilities to get at least 25 percent of their electricity from renewable sources by 2025. The state largely achieved that goal in 2017 thanks to the growth of wind and solar power, and the topic of climate change has only grown hotter, with some proposals like a fully renewable grid by 2030 pushing even faster timelines, hence the new goal for 2050.

But Joel Johnson, a lobbyist for the Minnkota Power Cooperative, testified that the governor's plan is "misguided and unrealistic" even with new technology to capture carbon dioxide emissions from power plants. Johnson added that even the big utilities that have set goals of going carbon-free by mid-century, such as Minneapolis-based Xcel Energy, acknowledge they don't know yet how they'll hit the net-zero electricity by mid-century target they have set.

Minnkota serves northwestern Minnesota and eastern North Dakota.

Tim Sullivan, president and CEO of the Wright-Hennepin Cooperative Electric Association in the Twin Cities area, said the plan is a "bad idea" for the 1.7 million state electric consumers served by cooperatives. He said Minnesota is a "minuscule contributor" to total global carbon emissions, even as the EU plans to double electricity use by 2050 to meet electrification demands.

"The bill would have a devastating impact on electric consumers," Sullivan said. "It represents, in our view, nothing short of a first-order threat to the safety and reliability of Minnesota's grid."

Isaac Orr is a policy fellow at the Minnesota-based conservative think tank, the Center for the American Experiment, which released a report critical of the plan Tuesday. Orr said all Minnesota households would face higher energy costs and it would harm energy-intensive industries such as mining, manufacturing and health care, while doing little to reduce global warming.

"This does not pass a proper cost-benefit analysis," he testified.

Environmental groups, including Conservation Minnesota and the Sierra Club, supported the proposal while acknowledging the challenges, noting that cleaning up electricity is critical to climate pledges in many jurisdictions.

"Our governor has called climate change an existential crisis," said Kevin Lee, director of the climate and energy program at the Minnesota Center for Environmental Advocacy. "This problem is the defining challenge of our time, and it can feel overwhelming."

Rep. Jean Wagenius, the committee chairwoman and Minneapolis Democrat who's held several hearings on the threats that climate change poses, said she expected to table the bill for further consideration after taking more testimony in the evening and would not hold a vote Tuesday.

While the bill has support in the Democratic-controlled House, it's not scheduled for action in the Republican-led Senate. Rep. Pat Garofalo, a Farmington Republican, quipped that it "has a worse chance of becoming law than me being named the starting quarterback for the Minnesota Vikings."

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NL Hydro electricity credit delivers a one-time on-bill rebate from the rate stabilization fund, linked to oil prices and the Holyrood plant, via the Public Utilities Board, with payment deferrals and interest relief for customers.

Key Points

A one-time on-bill credit from the rate stabilization fund to cut power costs as oil prices remain low.

✅ One-time on-bill credit via the Public Utilities Board

✅ Funded by surplus in the rate stabilization fund

✅ Deferrals and 15 months interest assistance available

Most people who pay electricity bills will get a one-time credit as early as July.

The provincial government on Thursday outlined a new directive to the Public Utilities Board to provide a one-time credit for customers whose electricity rates are affected by the price of oil, part of an effort to shield ratepayers from Muskrat Falls overruns through recent agreements.

Electricity customers who are not a part of the Labrador interconnected system, including those using diesel on the north coast of Labrador, will receive the credit.

The credit, announced at a press conference Thursday morning, will come from the rate stabilization fund and comes as many customers have begun paying for Muskrat Falls on their bills, which has an estimated surplus of about $50 million because low oil prices mean NL Hydro has spent less on fuel for the Holyrood thermal generating station.

Normally a surplus would be paid out over a year, but customers this year will get the credit in a lump sum, as early as July, with the amount varying based on electricity usage.

"Given the difficult times many are finding themselves in, we believe an upfront, one-time on-bill credit would be much more helpful for customers than a small monthly decrease over the next 12 months," said Natural Resources Minister Siobhan Coady at the provincial government's announcement Thursday morning.

Premier Dwight Ball said with many households and businesses experiencing financial hardship, the one-time credit is meant to make life a little easier, noting that Nova Scotia's premier has urged regulators to reject a major hike elsewhere.

"We have requested that the board of commissioners of the Public Utilities Board, even as Nova Scotia's regulator approved a 14% increase recently, adopt a policy so that a credit will be dispersed immediately," Ball said.

"This is to help people when they need it the most.… We're doing what we can to support you."

The provincial government estimates someone whose power costs an average of $200 a month would get a one-time credit of about $130. Details of the plan will be left to the PUB.

Deferred payments allowed
Ball said the credit will make a "significant impact" on customers' July bills.

Both businesses and residential customers will also be able to defer payments, similar to Alberta's deferral program that shifted costs for unpaid bills, with up to $2.5 million in interest being waived on overdue accounts. Customers will be required to make agreed-upon monthly payments to their account, and there will be interest assistance for 15 months, beginning June 1.

Coady said customers can renegotiate their bills and defer payments, with the province picking up the tab for the interest.

"You can speak to a customer service agent and they will make accommodations, but you have to continue to make some version of a monthly payment," Coady

"The interest that may be accrued is going to be paid for by the provincial government, so if you're a business, a person, and you're having difficulty and you can't make what I would say is your normal payment, call your utility, make some arrangements."

Labrador's interconnected grid isn't affected by the price of oil, but those customers can take advantage of the interest relief.

Relief policies already put in place during the pandemic, like not disconnecting customers and providing options for more flexible bill payments, will continue, as utilities such as Hydro One reconnecting customers demonstrate in Ontario.

Credit not enough to support customers: PCs
While Ball said his government is doing what they can to help ratepayers, the opposition doesn't believe the announcement does enough to support those who need it.

Tony Wakeham, the Progressive Conservative MHA for Stephenville-Port au Port, said in a statement Thursday the credit simply gives people's money back to them, after the NL Consumer Advocate called an 18% rate hike unacceptable, and Newfoundland Power stands to benefit. 

"The Liberal government would like ratepayers to believe that they are getting electricity rate relief, but in reality, customers would have been entitled to receive the value of this credit anyway over a 12-month period. Furthermore, in providing a one-time credit, Newfoundland Power will also be able to collect an administrative fee, adding to their revenues," Wakeham said in the statement.

"People and businesses in this province are struggling to pay their utility bills, and the Liberal government should help them by putting extra money into their pockets, not by recycling an already existing program to the benefit of a large corporation."

Wakeham called on government to direct the PUB to lower Newfoundland Power's guaranteed rate of return to give cash refunds to customers, and for Newfoundland Power to waive its fees.

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Automaker EV Fast-Charging Network will deploy 30,000 DC fast chargers across US and Canada, supporting CCS and NACS, integrating Tesla compatibility, easing range anxiety, and expanding highway and urban charging infrastructure with amenities and uptime.

Key Points

A $1B joint venture by seven automakers to build 30,000 DC fast chargers with CCS and NACS across the US and Canada.

✅ 30,000 DC fast chargers by 2030 across US and Canada

✅ Supports CCS and NACS; Tesla compatibility planned

✅ Launching mid-2024; focus on highways, urban hubs, amenities

Seven major automakers announced a plan on Wednesday to nearly double the number of fast chargers in the United States in an effort to address one of the main reasons that people hesitate to buy electric cars, even as the age of electric cars accelerates.

The carmakers — BMW Group, General Motors, Honda, Hyundai, Kia, Mercedes-Benz Group and Stellantis — will initially invest at least $1 billion in a joint venture that will build 30,000 charging ports on major highways and other locations in the United States and Canada.

The United States and Canada have about 36,000 fast chargers — those that can replenish a drained battery in 30 minutes or less. In some sparsely populated areas, such chargers can be hundreds of miles apart. Surveys show that fear about not being able to find a charger during longer journeys is a major reason that some car buyers are reluctant to buy electric vehicles.

Sales of electric vehicles have risen quickly in the United States as the market hits an inflection point, but there are signs that demand is softening. As a result, Tesla, Ford and other carmakers have cut prices in recent months and are offering incentives. Popular models that had long waiting lists last year are now available in a few days or weeks.

Major carmakers are investing billions of dollars to manufacture electric vehicles and batteries and to establish supplier networks. Having staked their futures on the technology, they have a strong incentive to ensure that electric vehicles catch on with car buyers, even as gas-electric hybrids help bridge the transition.

The chargers installed by the joint venture will have plugs designed for the connections used by most carmakers other than Tesla, as well as the standard developed by Tesla, amid fights for control over charging, that Ford, G.M. and other companies have said they intend to switch to in 2025.

“The better experience people have, the faster E.V. adoption will grow,” Mary T. Barra, the chief executive of General Motors, said in a statement.

The seven automakers plan to formalize the joint venture and announce its name by the end of the year, Chris Martin, a Honda spokesman, said. The first chargers will begin operating around the middle of 2024, he said, with all 30,000 in place by the end of the decade.

The joint venture is open to adding other partners, he said. Among major automakers, Ford was a notable absence from the announcement on Wednesday. The company said in a statement on Wednesday that it would continue to iThe partnership also does not include Volkswagen. The company is a majority shareholder of Electrify America, one of the largest fast-charging providers.

Tesla accounts for more than half the fast chargers in the United States and has said it will open its networks to other car brands, though, so far, it has only made fewer than 100 ports available. Owners of Ford and G.M. vehicles, among others, will be able to connect to 12,000 Tesla fast chargers using an adapter beginning next year. In 2025, Ford and G.M. plan to make models designed to take the Tesla plug without an adapter.

The decision by the seven carmakers to form the joint venture is an indication that they do not intend to rely solely on Tesla, which dominates sales of electric vehicles, for charging.

The chargers being built by the joint venture will be concentrated in urban areas and along major highways, especially those used most heavily by vacationers and other travelers, the companies said in a joint statement. Charging stations will be close to restrooms, restaurants and other amenities. The partners said they would try to take advantage of federal and state funds available for charging infrastructure amid questions about whether the U.S. has the power to charge it at scale.

Most electric vehicle owners charge at home and rarely need to use public chargers. Home chargers typically replenish batteries overnight. Most public chargers, about 125,000 in the United States and Canada, also operate relatively slowly — taking four to 10 hours to do the job.nvest in its own network, which allows Ford owners to charge from a variety of providers with one mobile phone app.

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