Bangladeshi government implements electricity rationing to cope with power crisis

U.S. Residential Electricity Bills rose on stronger demand, inflation, and fuel costs, with higher retail prices, kWh consumption, and extreme weather driving 2022 spikes; forecasts point to stable summer usage and slight price increases.

Key Points

They are average household power costs shaped by prices, kWh use, weather, and upstream fuel costs.

✅ 2022 bills up 13% nominal, 5% real vs. 2021

✅ Retail price rose 11%; consumption up 2% to 907 kWh

✅ Fuel costs to plants up 34%, pressuring rates

In nominal terms, the average monthly electricity bill for residential customers in the United States increased 13% from 2021 to 2022, rising from $121 a month to $137 a month. After adjusting for inflation—which reached 8% in 2022, a 40-year high—electricity bills increased 5%. Last year had the largest annual increase in average residential electricity spending since we began calculating it in 1984. The increase was driven by a combination of more extreme temperatures, which increased U.S. consumption of electricity for both heating and cooling, and higher fuel costs for power plants, which drove up retail electricity prices nationwide.

Residential electricity customers’ monthly electricity bills are based on the amount of electricity consumed and the retail electricity price. Average U.S. monthly electricity consumption per residential customer increased from 886 kilowatthours (kWh) in 2021 to 907 kWh in 2022, even as U.S. electricity sales have declined over the past seven years. Both a colder winter and a hotter summer contributed to the 2% increase in average monthly electricity consumption per residential customer in 2022 because customers used more space heating during the winter and more air conditioning during the summer, with some states, such as Pennsylvania, facing sharp winter rate increases.

Although we don’t directly collect retail electricity prices, we do collect revenues from electricity providers that allow us to determine prices by dividing by consumption, and industry reports show major utilities spending more on electricity delivery than on power production. In 2022, the average U.S. residential retail electricity price was 15.12 cents/kWh, an 11% increase from 13.66 cents/kWh in 2021. After adjusting for inflation, U.S. residential electricity prices went up by 2.5%.

Higher fuel costs for power plants drove the increase in residential retail electricity prices. The cost of fossil fuels—including natural gas prices, coal, and petroleum—delivered to U.S. power plants increased 34%, from $3.82 per million British thermal units (MMBtu) in 2021 to $5.13/MMBtu in 2022. The higher fuel costs were passed along to residential customers and contributed to higher retail electricity prices, and Germany power prices nearly doubled over a year in a related trend.

In the first three months of 2023, the average U.S. residential monthly electricity bill was $133, or 5% higher than for the same time last year, according to data from our Electric Power Monthly. The increase was driven by a 13% increase in the average U.S. residential retail electricity price, which was partly offset by a 7% decrease in average monthly electricity consumption per residential customer, and industry outlooks also see U.S. power demand sliding 1% on milder weather. This summer, we expect that typical household electricity bills will be similar to last year’s, with customers paying about 2% more on average. The slight increase in electricity costs forecast for this summer stems from higher retail electricity prices but similar consumption levels as last summer.
 

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White Pines Project cancellation highlights Ontario's wind farm contract dispute in Prince Edward County, involving IESO approvals, Progressive Conservatives' legislation, potential court action, and costs to ratepayers amid green energy policy shifts.

Key Points

The termination effort for Ontario's White Pines wind farm contract, triggering legal, legislative, and cost disputes.

✅ Contract with IESO dates to 2009; final approval during election

✅ PCs seek legislation insulating taxpayers from litigation

✅ Cancellation could exceed $100M; cost impact on ratepayers

Cancelling an eastern Ontario green energy project that has been under development for nearly a decade could cost more than $100 million, the president of the company said Wednesday, warning that the dispute could be headed to the courts.

Ontario's governing Progressive Conservatives said this week that one of their first priorities during the legislature's summer sitting would be to cancel the contract for the White Pines Project in Prince Edward County.

Ian MacRae, president of WPD Canada, the company behind the project, said he was stunned by the news given that the project is weeks away from completion.

"What our lawyers are telling us is we have a completely valid contract that we've had since 2009 with the (Independent Electricity System Operator). ... There's no good reason for the government to breach that contract," he said.

The government has also not reached out to discuss the cancellation, he said. Meanwhile, construction on the site is in full swing, he said.

"Over the last couple weeks we've had an average of 100 people on site every day," he said. "The footprint of the project is 100 per cent in. So, all the access roads, the concrete for the base foundations, much of the electrical infrastructure. The sub-station is nearing completion."

The project includes nine wind turbines meant to produce enough electricity to power just over 3,000 homes annually, even as Ontario looks to build on an electricity deal with Quebec for additional supply. All of the turbines are expected to be installed over the next three weeks, with testing scheduled for the following month.

MacRae couldn't say for certain who would have to pay for the cancellation, electricity ratepayers or taxpayers.

"Somehow that money would come from IESO and it would be my assumption that would end up somehow on the ratepayers, despite legislation to lower electricity rates now in place," he said. "We just need to see what the government has in mind and who will foot the bill."

Progressive Conservative house leader Todd Smith, who represents the riding where the project is being built, said the legislation to cancel the project will also insulate taxpayers from domestic litigation over the dismantling of green energy projects.

"This is something that the people of Prince Edward County have been fighting ... for seven years," he said. "This shouldn't have come as a surprise to anybody that this was at the top of the agenda for the incoming government, which has also eyed energy independence in recent decisions."

Smith questioned why Ontario's Independent Electricity System Operator gave the final approval for the project during the spring election campaign.

"There's a lot of questions about how this ever got greenlighted in the first place," he said. "This project was granted its notice to proceed two days into the election campaign ... when (the IESO) should have been in the caretaker mode."

Terry Young, the IESO's vice president of policy, engagement and innovation, said the agency could not comment because of the pending introduction of legislation to cancel the deal, following a recent auditor-regulator dispute that drew attention to oversight.

NDP Leader Andrea Horwath said the new Tory government is behaving like the previous Liberal government by cancelling energy projects and tearing up contracts amid ongoing debates over Ontario's hydro mess and affordability. She likened the Tory plan to the Liberal gas plant scandal that saw the government relocate two plants at a substantial cost to taxpayers.

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Montreal Power Outage linked to Hydro-Que9bec infrastructure after an underground explosion and manhole fire in Rosemont–La Petite–Patrie, disrupting the STM Blue Line and forcing strategic, cold-weather grid restoration on Be9langer Street.

Key Points

Outage from an underground blast and manhole fire disrupted STM service; Hydro-Que9bec restored the grid in cold weather.

✅ Peak impact: 41,000 customers; 10,981 still without power by 7:00 p.m.

✅ STM Blue Line restored after afternoon shutdown; Be9langer Street reopened.

✅ Hydro-Que9bec pacing restoration to avoid grid overload in cold weather.

Hydro-Québec says a power outage affecting Montreal is connected to an underground explosion and a fire in a manhole in Rosemont—La Petite–Patrie. 

The fire started in underground pipes belonging to Hydro-Québec on Bélanger Street between Boyer and Saint-André streets, according to Montreal firefighters, who arrived on the scene at 12:18 p.m.

The electricity had to be cut so that firefighters could get into the manhole where the equipment was located.

At the peak of the shutdown, nearly 41,000 customers were without power across Montreal.  As of 7:00 p.m., 10,981 clients still had no power.

In similar storms, Toronto power outages have persisted for hundreds, underscoring restoration challenges.

Hydro-Québec spokesperson Louis-Olivier Batty said the utility is being strategic about how it restores power across the grid. 

Because of the cold, and patterns seen during freezing rain outages, it anticipates that people will crank up the heat as soon as they get their electricity back, and that could trigger an overload somewhere else on the network, Batty said.

The Metro's Blue line was down much of the afternoon, but the STM announced the line was back up and running just after 4:30 p.m.

Bélanger Street was blocked to traffic much of the afternoon, however, it has now been reopened.

Batty said once the smoke clears, Hydro-Québec workers will take a look at the equipment to see what failed. 

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Spain Electricity Prices surge to record highs as the wholesale market hits €339.84/MWh, driven by gas costs and CO2 permits, impacting PVPC regulated tariffs, free-market contracts, and household energy bills, OMIE data show.

Key Points

Rates in Spain's wholesale market that shape PVPC tariffs and free-market bills, moving with gas prices and CO2 costs.

✅ Record €339.84/MWh; peak 20:00-21:00; low 04:00-05:00 (OMIE).

✅ PVPC users and free-market contracts face higher bills.

✅ Drivers: high gas prices and rising CO2 emission rights.

Electricity in Spain's wholesale market will rise in price once more as European electricity prices continue to surge. Once again, it will set a historical record in Spain, reaching €339.84/MWh. With this figure, it is already the fifth time that the threshold of €300 has been exceeded.

This new high is a 6.32 per cent increase on today’s average price of €319.63/MWh, which is also a historic record, while Germany's power prices nearly doubled over the past year. Monday’s energy price will make it 682.65 per cent higher than the corresponding date in 2020, when the average was €43.42.

According to data published by the Iberian Energy Market Operator (OMIE), Monday’s maximum will be between the hours of 8pm and 9pm, reaching €375/MWh, a pattern echoed by markets where Electric Ireland price hikes reflect wholesale volatility. The cheapest will be from 4am to 5am, at €267.99.

The prices of the ‘pool’ have a direct effect on the regulated tariff  – PVPC – to which almost 11 million consumers in the country are connected, and serve as a reference for the other 17 million who have contracted their supply in the free market, where rolling back prices is proving difficult across Europe.

These spiraling prices in recent months, which have fueled EU energy inflation, are being blamed on high gas prices in the markets, and carbon dioxide (CO2) emission rights, both of which reached record highs this year.

According to an analysis by Facua-Consumidores en Acción, if the same rates were maintained for the rest of the month, the last invoice of the year would reach €134.45 for the average user. That would be 94.1 per cent above the €69.28 for December 2020, while U.S. residential electricity bills rose about 5% in 2022 after inflation adjustments.

The average user’s bill so far this year has increased by 15.1 per cent compared to 2018, as US electricity prices posted their largest jump in 41 years. Thus, compared to the €77.18 of three years ago, the average monthly bill now reaches €90.87 euros. However, the Government continues to insist that this year households will end up paying the same as in 2018.

As Ruben Sanchez, the general secretary of Facua commented, “The electricity bill for December would have to be negative for President Sanchez, and Minister Ribera, to fulfill their promise that this year consumers will pay the same as in 2018 once the CPI has been discounted”.

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Germany's Joint Onshore Wind and Solar Tender invites 200 MW bids in an EEG auction, with PV and onshore wind competing on price per MWh, including grid integration costs and network fees under BNA rules.

Key Points

A BNA-run 200 MW EEG auction where PV and onshore wind compete on price per MWh, including grid integration costs.

✅ 200 MW cap; minimum project size 750 kW

✅ Max subsidy 87.50 per MWh; bids include network costs

✅ Solar capped at 10-20 MW; wind requires prior approval

Germany's Federal Network Agency (BNA) has launched its second joint onshore wind and solar photovoltaic (PV) tender, with a total capacity of 200 MW.

A maximum guaranteed subsidy payment has been set at 87.50 per MWh for both energy sources, which BNA says will have to compete against each other for the lowest price of electricity. According to auction rules, all projects must have a minimum of 750 kW.

The auction is due to be completed on 2 November.

The network regulator has capped solar projects at 10 MW, though this has been extended to 20 MW in some districts, amid calls to remove barriers to PV at the federal level. Onshore wind projects did not receive any such restrictions, though they require approval from Federal Immission Control three weeks prior to the bid date of 11 Octobe

Bids also require network and system integration costs to be included, and similar solicitations have been heavily subscribed, as an over-subscribed Duke Energy solar solicitation in the US market illustrates.

According to Germanys Renewable Energy Act (EEG), two joint onshore wind and solar auctions must take place each year between 2018 and 2021. After this, the government will review the scheme and decide whether to continue it beyond 2021.

The first tender, conducted in April, saw the entire 200 MW capacity given to solar PV projects, reflecting a broader solar power boost in Germany during the energy crisis. Of the 32 contracts awarded, value varied from 39.60 per MWh to 57.60 per MWh. Among the winning bids were five projects in agricultural and grassland sites in Bavaria, totalling 31 MW, and three in Baden-Wrttemberg at 17 MW.

According to the Agency, the joint tender scheme was initiated in an attempt to determine the financial support requirements for wind and solar in technology-specific auctions, however, solar powers sole win in the April auction meant it was met with criticism, even as clean energy accounts for 50% of Germany's electricity today.

The heads of the Federal Solar Industry Association (BSW-Solar) and German Wind Energy Association (BWE) saying the joint tender scheme is unsuitable for the build-out of the two technologies.

A BWE spokesman previously stressed the companys rejection of competition between wind and solar, saying: It is not clear how this could contribute to an economically meaningful balanced energy mix,

Technologies that are in various stages of development must not enter into direct competition with each other. Otherwise, innovation and development potential will be compromised.

Similarly, BSW-Solar president Carsten Krnig said: We are happy for the many solar winners, but consider the experiment a failure. The auction results prove the excellent price-performance ratio of new solar power plants, as solar-plus-storage is cheaper than conventional power in Germany, but not the suitability of joint tenders.

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California Renewable Energy Curtailment highlights grid congestion, midday solar peaks, limited battery storage, and market constraints, with WEIM participation and demand response programs proposed to balance supply-demand and reduce wasted solar and wind generation.

Key Points

It is the deliberate reduction of solar and wind output when grid limits or low demand prevent full integration.

✅ Grid congestion restricts transmission capacity

✅ Midday solar peaks exceed demand, causing surplus

✅ Storage, WEIM, and demand response mitigate curtailment

California has long been a leader in renewable energy adoption, achieving a near-100% renewable milestone in recent years, particularly in solar and wind power. However, as the state continues to expand its renewable energy capacity, it faces a growing challenge: the curtailment of excess solar and wind energy. Curtailment refers to the deliberate reduction of power output from renewable sources when the supply exceeds demand or when the grid cannot accommodate the additional electricity.

Increasing Curtailment Trends

Recent data from the U.S. Energy Information Administration (EIA) highlights a concerning upward trend in curtailments in California. In 2024, the state curtailed a total of 3,102 gigawatt-hours (GWh) of electricity generated from solar and wind sources, surpassing the 2023 total of 2,660 GWh. This represents a 32.4% increase from the previous year. Specifically, 2,892 GWh were from solar, and 210 GWh were from wind, marking increases of 31.2% and 51.1%, respectively, compared to the first nine months of 2023.

Causes of Increased Curtailment

Several factors contribute to the rising levels of curtailment:

1. Grid Congestion: California's transmission infrastructure has struggled to keep pace with the rapid growth of renewable energy sources. This congestion limits the ability to transport electricity from generation sites to demand centers, leading to curtailment.
   
   

2. Midday Solar Peaks: Amid California's solar boom, solar energy production typically peaks during the midday when electricity demand is lower. This mismatch between supply and demand results in excess energy that cannot be utilized, necessitating curtailment.
   
   

3. Limited Energy Storage: While battery storage technologies are advancing, California's current storage capacity is insufficient to absorb and store excess renewable energy for later use. This limitation exacerbates curtailment issues.
   
   

4. Regulatory and Market Constraints: Existing market structures and regulatory frameworks may not fully accommodate the rapid influx of renewable energy, leading to inefficiencies and increased curtailment.

Economic and Environmental Implications

Curtailment has significant economic and environmental consequences. For renewable energy producers, curtailed energy represents lost revenue and undermines the economic viability of new projects. Environmentally, curtailment means that clean, renewable energy is wasted, and the grid may rely more heavily on fossil fuels to meet demand, counteracting the benefits of renewable energy adoption.

Mitigation Strategies

To address the rising curtailment levels, California is exploring several strategies aligned with broader decarbonization goals across the U.S.:

• Grid Modernization: Investing in and upgrading transmission infrastructure to alleviate congestion and improve the integration of renewable energy sources.
  
  

• Energy Storage Expansion: Increasing the deployment of battery storage systems to store excess energy during peak production times and release it during periods of high demand.
  
  

• Market Reforms: Participating in the Western Energy Imbalance Market (WEIM), a real-time energy market that allows for the balancing of supply and demand across a broader region, helping to reduce curtailment.
  
  

• Demand Response Programs: Implementing programs that encourage consumers to adjust their energy usage patterns, such as shifting electricity use to times when renewable energy is abundant.

Looking Ahead

As California continues to expand its renewable energy capacity, addressing curtailment will be crucial to ensuring the effectiveness and sustainability of its energy transition. By investing in grid infrastructure, energy storage, and market reforms, the state can reduce curtailment levels and make better use of its renewable energy resources, while managing challenges like wildfire smoke impacts on solar output. These efforts will not only enhance the economic viability of renewable energy projects but also contribute to California's 100% clean energy targets by maximizing the use of clean energy and reducing reliance on fossil fuels.

While California's renewable energy sector faces challenges related to curtailment, proactive measures and strategic investments can mitigate these issues, as scientists continue to improve solar and wind power through innovation, paving the way for a more sustainable and efficient energy future.

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