BOE Says UK Energy Price Guarantee is Key for Next Rates Call

High Lonesome Wind Farm powers Texas with 500 MW of renewable energy, backed by a 12-year PPA with Danone North America and a Proxy Revenue Swap, cutting CO2 emissions as Enel's largest project to date.

Key Points

A 500 MW Enel wind project in Texas, supplying renewable power via PPAs and hedged by a Proxy Revenue Swap.

✅ 450 MW online; expanding to 500 MW in early 2020

✅ 12-year PPA with Danone North America for 20.6 MW

✅ PRS hedge with Allianz and Nephila stabilizes revenues

Enel, through its US renewable subsidiary Enel Green Power North America, Inc. (“EGPNA”), has started operations of its 450 MW High Lonesome wind farm in Upton and Crockett Counties, in Texas, the largest operational wind project in the Group’s global renewable portfolio, alongside a recent 90 MW Spanish wind build in its European pipeline. Enel also signed a 12-year, renewable energy power purchase agreement (PPA) with food and beverage company Danone North America, a Public Benefit Corporation, for physical delivery of the renewable electricity associated with 20.6 MW, leading to an additional 50 MW expansion of High Lonesome that will increase the plant’s total capacity to 500 MW. The construction of the 50 MW expansion is currently underway and operations are due to start in the first quarter of 2020.

“The start of operations of Enel’s largest wind farm in the world marks a significant achievement for our company and reinforces our global commitment to accelerated renewable energy growth,” said Antonio Cammisecra, CEO of Enel Green Power, referencing the largest wind project constructed in North America as evidence of market momentum. “This milestone is matched with a new partnership with Danone North America to support their renewable goals, a reinforcement of our continued commitment to provide customers with tailored solutions to meet their sustainability goals.”

The agreement between Enel and Danone North America will provide enough electricity to produce the equivalent of almost 800 million cups of yogurt1 and over 80 million gallons2 of milk each year and support the food and beverage company’s commitment to securing 100% of its purchased electricity from renewable sources by 2030, in a market where North Carolina’s first wind farm is now fully operational and expanding access to clean power.

Mariano Lozano, president and CEO of Danone North America, added:“This is an exciting and significant step as we continue to advance our 2030 renewable electricity goals. As a public benefit corporation committed to balancing the needs of our business with those of society and the planet, we truly believe that this agreement makes sense from both a business and sustainability point of view. We’re delighted to be working with Enel Green Power to expand their High Lonesome wind farm and grow the renewable electricity infrastructure, such as New York’s biggest offshore wind projects, here in the US.”

In addition, as more US wind projects come online, such as TransAlta’s 119 MW project, the energy produced by a 295 MW portion of the project will be hedged under a Proxy Revenue Swap (PRS) with insurer Allianz Global Corporate & Specialty, Inc.'s Alternative Risk Transfer unit (Allianz), and Nephila Climate, a provider of weather and climate risk management products. The PRS is a financial derivative agreement designed to produce stable revenues for the project regardless of power price fluctuations and weather-driven intermittency, hedging the project from this kind of risk in addition to that associated with price and volume.

Under the PRS agreement, and as other projects begin operations, like Building Energy’s latest plant, High Lonesome will receive fixed payments based on the expected value of future energy production, with adjustments paid depending on how the realized proxy revenue of the project differs from the fixed payment. The PRS for High Lonesome, which is the largest by capacity for a single plant globally and the first agreement of its kind for Enel, was executed in collaboration with REsurety, Inc.

The investment in the construction of the 500 MW plant amounts to around 720 million US dollars. The wind farm is due to generate around 1.9 TWh annually, comparable to a 280 MW Alberta wind farm’s output, while avoiding the emission of more than 1.2 million tons of CO2 per year.

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Estonia energy prices 2021 show sharp electricity hikes versus the EU average, mixed natural gas trends, kWh tariffs on Nord Pool spiking, and VAT, taxes, and support measures shaping household bills.

Key Points

EU-high electricity growth, early gas dip, then Nord Pool spikes; taxes, VAT, and subsidies shaped energy bills.

✅ Electricity up 7% on year; EU average 2.8% in H1 2021.

✅ Gas fell 1% in H1; later spiked with global market.

✅ VAT, taxes, excise and aid impacted household costs.

Estonia saw one of the highest rates in growth of electricity prices in the first half of 2021, compared with the same period in key trends in 2020 across Europe. These figures were posted before the more recent, record level of electricity and natural gas prices; the latter actually dropped slightly in Estonia in the first half of the year.

While electricity prices rose 7 percent on year in the first half of 2021 in Estonia, the average for the EU as a whole, where energy prices drove inflation across the bloc, stood at 2.8 percent over the same period, BNS reports.

Hungary (€10 per 100 Kwh) and Bulgaria (€10.20 per 100 Kwh) saw the lowest electricity prices EU-wide, while at €31.9 per KWH, Germany's power prices posted the most expensive rate, while Denmark, Belgium and Ireland also had high prices, in excess of €25 per Kwh.

Slovenia saw the highest electricity price rise, at 15 percent, and even the United States' electricity prices saw their steepest rise in decades during the same era, while Estonia was in third place, joint with Romania at 7 percent as noted, and behind Poland (8 percent).

Lithuania, on the other hand, experienced the third highest electricity price fall over the first half of 2021, compared with the same period in 2020, at 6 percent, behind only Cyprus (7 percent) and the Netherlands (10 percent, largely due to a tax cut).

Urmas Reinsalu: VAT on electricity, gas and heating needs to be lowered
The EU average price of electricity was €21.9 percent per Kwh, with taxes and excise accounting for 39 percent of this, even as prices in Spain surged across the day-ahead market.

Estonia has also seen severe electricity price rises in the second half of the year so far, with records set and then promptly broken several times earlier in October, while an Irish electricity provider raised prices amid similar pressures, and a support package for low income households rolled out for the winter season (October to March next year). The price on the Nord Pool market as of €95.01 per Kwh; a day earlier it had stood at €66.21 per Kwh, while on October 19 the price was €140.68 per Kwh.

Gas prices
Natural gas prices to household, meanwhile, dropped in Estonia over the same period, at a sharper rate (1 percent) than the EU average (0.5 percent), according to Eurostat.

Gas prices across the EU were lowest in Lithuania (€2.8 per 100 Kwh) and highest in the Netherlands (€9.6 per KWH), while the highest growth was seen in Denmark (19 percent), in the first half of 2021.

Natural gas prices dropped in 20 member states, however, with the largest drop again coming in Lithuania (23 percent).

The average price of natural gas EU-side in the first half of 2021 was €6.4, and taxes and excise duties accounted on average for 36 percent of the total.

The second half of the year has seen steep gas price rises in Estonia, largely the result of increases on the world market, though European gas benchmarks later fell to pre-Ukraine war levels.

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US Electricity Demand Outlook examines EIA forecasts, GDP decoupling, energy efficiency, electrification, electric vehicles, grid load growth, and weather variability to frame long term demand trends and utility planning scenarios.

Key Points

An analysis of EIA projections showing demand decoupling from GDP, with EV adoption and efficiency shaping future grid load.

✅ EIA lowers load growth; demand decouples from GDP.

✅ Efficiency and sector shifts depress kWh sales.

✅ EV adoption could revive load and capacity needs.

Electricity producers and distributors are in an unusual business. The product they provide is available to all customers instantaneously, literally at the flip of a switch. But the large amount of equipment, both hardware and software to do this takes years to design, site and install.

From a long range planning perspective, just as important as a good engineering design is an accurate sales projections. For the US electric utility industry the most authoritative electricity demand projec-tions come from the Department of Energy’s Energy Information Administration (EIA). EIA's compre-hensive reports combine econometric analysis with judgment calls on social and economic trends like the adoption rate of new technologies that could affect future electricity demand, things like LED light-ing and battery powered cars, and the rise of renewables overtaking coal in generation.

Before the Great Recession almost a decade ago, the EIA projected annual growth in US electricity production at roughly 1.5 percent per year. After the Great Recession began, the EIA lowered its projections of US electricity consumption growth to below 1 percent. Actual growth has been closer to zero. While the EIA did not antici-pate the last recession or its aftermath, we cannot fault them on that.

After the event, though, the EIA also trimmed its estimates of economic growth. For the 2015-2030 period it now predicts 2.1 percent economic and 0.3 percent electricity growth, down from previously projections of 2.7 percent and 1.3 percent respectively. (See Figures 1 and 2.)

Table 1. EIA electric generation projections by year of forecast (kWh billions)

Table 2. EIA forecast of GDP by year of forecast (billion 2009 $)

Back in 2007, the EIA figured that every one percent increase in economic activity required a 0.48 percent in-crease in electric generation to support it. By 2017, the EIA calculated that a 1 percent growth in economic activity now only required a 0.14 percent increase in electric output. What accounts for such a downgrade or disconnect between electricity usage and economic growth? And what factors might turn the numbers 
around?

First, the US economy lost energy intensive heavy industry like smelting, steel mills and refineries; patterns in China's electricity sector highlight how industrial shifts can reshape power demand. A more service oriented economy (think health care) relies more heavily on the movement of data or information and uses far less power than a manufacturing-oriented economy.

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Second, internet shopping has hurt so-called "brick and mortar" retailers. Despite the departure of heavy industry, in years past a burgeoning US commercial sector increased its demand and usage of electricity to offset the industrial decline. But not anymore. Energy efficiency measures as well as per-haps greater concern about global warming and greenhouse gas emissions and have cut into electricity sales. “Do more with less” has the right ring to it.

But there may be other components to the ongoing decline in electricity usage. Academic studies show that electricity usage seems to increase with income along an S curve, and flattens out after a certain income level. That is, if you earn $1 billion per year you do not (or cannot) use ten times a much electricity as someone earning only $100 million.

But people at typical, middle income levels increase or decrease electricity usage when incomes rise or fall. The squeeze on middle income families was discussed often in the late presidential campaign. In recent decades an increasing percentage of income has gone to a small percentage of the population at the top of the income scale. This trend probably accounts for some weakness in residential sales. This suggests that government policy addressing income inequality would also boost electricity sales.

Population growth affects demand for electricity as well as the economy as a whole. The EIA has made few changes in its projections, showing 0.7 percent per year population growth in 2015- 2030 in both the 2007 and 2017 forecasts. Recent studies, however, have shown a drop in the birth rate to record lows. More troubling, from a national health perspective is that the average age of death may have stopped rising. Those two factors point to lower population growth, especially if the government also restricts immi-gration. Thus, the US may be approaching a period of rather modest population growth.

All of the above factors point to minimal sales growth for electricity producers in the US--perhaps even lower than the seemingly conservative EIA estimates. But the cloud on the horizon has a silver lining in the shape of an electric car. Both the United Kingdom and France have set dates to end of production of automobiles with internal combustion engines. Several European car makers have declared that 20 percent of their output will be electric vehicles by the early 2020s. If we adopt automobiles powered by electricity and not gasoline or diesel, electricity sales would increase by one third. For the power indus-try, electric vehicles represent the next big thing.

We don’t pretend to know how electric car sales will progress. But assume vehicle turnover rates re-main at the current 7 percent per year and electric cars account for 5 percent of sales in the first five years (as op-posed to 1 percent now), 20 percent in the next five years and 50 percent in the third five year period. Wildly optimistic assumptions? Maybe. By 2030, electric cars would constitute 28 percent of the vehicle fleet. They would add about 10 percent to kilowatt hour sales by that date, assuming that battery efficiencies do not improved by then. Those added sales would require increased electric generation output, with low-emissions sources expected to cover almost all the growth globally. They would also raise long term growth rates for 2015-2030 from the present 0.3 percent to 1.0 percent. The slow upturn in demand should give the electric companies time to gear up so to speak.

In the meantime, weather will continue to play a big role in electricity consumption. Record heat-induced demand peaks are being set here in the US even as surging global demand puts power systems under strain worldwide.

Can we discern a pattern in weather conditions 15 years out? Maybe we can, but that is one topic we don’t expect a government agency to tackle in public right now. Meantime, weather will affect sales more than anything else and we cannot predict the weather. Or can we?

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SDG&E Mitsubishi Power Energy Storage adds a 10 MW/60 MWh BESS in Pala, boosting grid reliability, renewable integration, and flexibility with EMS and SCADA controls, LFP safety chemistry, NERC CIP compliance, UL 9540 standards.

Key Points

A 10 MW/60 MWh BESS for SDG&E in Pala that enhances grid reliability, renewables usage, and operational flexibility.

✅ Emerald EMS/SCADA meets NERC CIP, IEC/ISA 62443, NIST 800-53

✅ LFP chemistry with UL 9540 and UL 9540A safety compliance

✅ Adds capacity, energy, and ancillary services to CA grid

San Diego Gas & Electric Company (SDG&E), a regulated public utility that provides energy service to 3.7 million people, has awarded Mitsubishi Power an order for a 10 megawatt (MW) / 60 megawatt-hour (MWh) energy storage solution for its Pala-Gomez Creek Energy Storage Project in Pala, California. The battery energy storage system (BESS) will add capacity to help meet high energy demand, support grid reliability and operational flexibility, underscoring the broader benefits of energy storage now recognized by utilities, maximize use of renewable energy, and help prevent outages during peak demand.

The BESS project is Mitsubishi Power’s eighth in California, bringing total capacity to 280 MW / 1,140 MWh of storage to help meet California’s clean energy goals with reliable power to complement renewables, alongside emerging solutions like a California green hydrogen microgrid for added resilience.

Mitsubishi Power’s Emerald storage solution for SDG&E includes full turnkey design, engineering, procurement, and construction, as well as a 10-year long-term service agreement, aligning with CEC long-duration storage funding initiatives underway. It is scheduled to be online in early 2023.

The project will repower an existing energy storage site. It will employ Mitsubishi Power’s Emerald Integrated Plant Controller, which is an Energy Management System (EMS) and Supervisory Control and Data Acquisition (SCADA) system with real-time BESS operation and a monitoring/supervisory control platform. Mitsubishi Power leverages its decades of technology monitoring and diagnostics to turn data into actionable insights to maximize reliability, a priority as regions like Ontario increasingly rely on battery storage to meet rising demand. The Mitsubishi Power Emerald Integrated Plant Controller complies with North American Electric Reliability Corporation critical infrastructure protection (NERC CIP) standards and meets the highest security certification in the energy storage industry (IEC/ISA 62443, NIST 800-53) for maximum protection from cybersecurity risks and vulnerabilities.

For added physical safety, Mitsubishi Power’s solution employs lithium iron phosphate (LFP) battery chemistry, aligning with BESS adoption in New York where safety and performance are critical. Compared with other chemistries, LFP provides longer life and superior thermal stability and chemical stability, while meeting UL 9540 and UL 9540A safety standards.

Fernando Valero, Director, Advanced Clean Technology, SDG&E, said, “SDG&E is committed to achieving net-zero greenhouse gas emissions by 2045. We are increasing our portfolio of energy storage assets, including virtual power plant models, to reach this goal. These assets enhance grid reliability and operational flexibility while maximizing our use of abundant renewable energy sources in California.”

Tom Cornell, Senior Vice President, Energy Storage Solutions, Mitsubishi Power Americas, said, “As more and more renewables come online during the energy transition, BESS solutions are essential to support a reliable and stable grid. We look forward to providing SDG&E with our BESS solution to add capacity, energy, and ancillary services to California’s grid. Mitsubishi Power’s Emerald storage solutions are enabling a smarter and more resilient energy future for our customers in California and around the globe, with projects like an energy storage demonstration in India underscoring this momentum.”

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U.S. Energy Transition traces the shift from coal and oil to natural gas, nuclear power, and renewables like wind and solar, driven by efficiency, grid modernization, climate goals, and economic innovation.

Key Points

The U.S. Energy Transition is the shift from fossil fuels to cleaner power, driven by tech, policy, and markets.

✅ Shift from coal and oil to gas, nuclear, wind, and solar

✅ Enabled by grid modernization, storage, and efficiency

✅ Aims to cut emissions while ensuring reliability and affordability

The evolution of energy use in the United States is a dynamic narrative that reflects technological advancements, economic shifts, environmental awareness, and societal changes over time. From the nation's early reliance on wood and coal to the modern era dominated by oil, natural gas, and renewable sources, the story of energy consumption in the U.S. is a testament to innovation and adaptation.

Early Energy Sources: Wood and Coal

In the early days of U.S. history, energy needs were primarily met through renewable resources such as wood for heating and cooking. As industrialization took hold in the 19th century, coal emerged as a dominant energy source, fueling steam engines and powering factories, railways, and urban growth. The widespread availability of coal spurred economic development and shaped the nation's infrastructure.

The Rise of Petroleum and Natural Gas

The discovery and commercialization of petroleum in the late 19th century transformed the energy landscape once again. Oil quickly became a cornerstone of the U.S. economy, powering transportation, industry, and residential heating, and informing debates about U.S. energy security in policy circles. Concurrently, natural gas emerged as a significant energy source, particularly for heating and electricity generation, as pipelines expanded across the country.

Electricity Revolution

The 20th century witnessed a revolution in electricity generation and consumption, and understanding where electricity comes from helps contextualize how systems evolved. The development of hydroelectric power, spurred by projects like the Hoover Dam and Tennessee Valley Authority, provided clean and renewable energy to millions of Americans. The widespread electrification of rural areas and the proliferation of appliances in homes and businesses transformed daily life and spurred economic growth.

Nuclear Power and Energy Diversification

In the mid-20th century, nuclear power emerged as a promising alternative to fossil fuels, promising abundant energy with minimal greenhouse gas emissions. Despite concerns about safety and waste disposal, nuclear power plants became a significant part of the U.S. energy mix, providing a stable base load of electricity, even as the aging U.S. power grid complicates integration of variable renewables.

Renewable Energy Revolution

In recent decades, the U.S. has seen a growing emphasis on renewable energy sources such as wind, solar, and geothermal power, yet market shocks and high fuel prices alone have not guaranteed a rapid green revolution, prompting broader policy and investment responses. Advances in technology, declining costs, and environmental concerns have driven investments in clean energy infrastructure and policies promoting renewable energy adoption. States like California and Texas lead the nation in wind and solar energy production, demonstrating the feasibility and benefits of transitioning to sustainable energy sources.

Energy Efficiency and Conservation

Alongside shifts in energy sources, improvements in energy efficiency and conservation have played a crucial role in reducing per capita energy consumption and greenhouse gas emissions. Energy-efficient appliances, building codes, and transportation innovations have helped mitigate the environmental impact of energy use while reducing costs for consumers and businesses, and weather and economic factors also influence demand; for example, U.S. power demand fell in 2023 on milder weather, underscoring the interplay between efficiency and usage.

Challenges and Opportunities

Looking ahead, the U.S. faces both challenges and opportunities in its energy future, as recent energy crisis effects ripple across electricity, gas, and EVs alike. Addressing climate change requires further investments in renewable energy, grid modernization, and energy storage technologies. Balancing energy security, affordability, and environmental sustainability remains a complex task that requires collaboration between government, industry, and society.

Conclusion

The evolution of energy use throughout U.S. history reflects a continuous quest for innovation, economic growth, and environmental stewardship. From wood and coal to nuclear power and renewables, each era has brought new challenges and opportunities in meeting the nation's energy needs. As the U.S. transitions towards a cleaner and more sustainable energy future, leveraging technological advancements and embracing policy solutions, amid debates over U.S. energy dominance, will be essential in shaping the next chapter of America's energy story.

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TCS AI Partnership Paris Marathon integrates predictive analytics, digital twin simulations, real-time runner tracking, and sustainability solutions to elevate logistics, athlete performance, and immersive spectator engagement across the Schneider Electric Marathon de Paris ecosystem.

Key Points

AI-driven TCS partnership enhancing Paris logistics, performance, engagement, and sustainability for three years.

✅ Predictive analytics and digital twins optimize race-day ops

✅ Real-time runner tracking and health insights

✅ Sustainable resource management and waste reduction

Tata Consultancy Services (TCS) has officially become the AI & Technology Partner for the Schneider Electric Marathon de Paris, marking the start of a three-year collaboration with one of the world’s most prestigious running events. This partnership, announced on April 1, 2025, aims to revolutionize the marathon experience by integrating cutting-edge technology, artificial intelligence (AI), and data analytics, and modern AI data centers to power scalable capabilities, enhancing both the runner's journey and the spectator experience.

The Schneider Electric Marathon de Paris, which attracts over 55,000 runners from across the globe, is a renowned event that not only challenges athletes but also captivates a worldwide audience. As the Official AI & Technology Partner, TCS is set to bring its deep expertise in AI, digital innovation, and data-driven insights to this iconic event, drawing on adjacent domains such as substation automation training to strengthen operations. With more than 30 years of presence in France and its significant partnerships with French corporations, TCS is uniquely positioned to merge its global technology capabilities with local knowledge, thus adding immense value to this prestigious marathon.

The collaboration will primarily focus on enhancing the race logistics, improving athlete performance, and creating a personalized experience for both runners and spectators. Using advanced AI tools, predictive analytics, and digital twin technologies, TCS will streamline various aspects of the event. For example, AI-powered predictive models, reflecting progress recognized by European electricity prediction specialists in forecasting, will be used to track and monitor runners in real-time, providing insights into their performance and well-being during the race. Additionally, the implementation of digital twin technology will enable TCS to create accurate virtual models of the event, improving logistics and supporting better decision-making.

One of the key goals of the partnership is to improve the sustainability of the marathon. By utilizing advanced AI solutions, including AI for energy savings approaches, TCS will help optimize race-day operations, ensuring efficient management of resources, reducing waste, and minimizing environmental impact. This aligns with the growing trend of incorporating sustainability into large-scale events, ensuring that such iconic marathons not only provide an exceptional experience for participants but also contribute to global environmental goals.

TCS’s PacePort™ innovation hub in Paris will play a pivotal role in the collaboration. This innovation center will serve as the testing ground for new AI-powered solutions and tools aimed at improving runner performance and creating a more engaging race experience. Early priorities for the project include the development of personalized AI-based training programs for runners, real-time tracking systems for athlete health monitoring, and advanced analytics to support better training and recovery strategies, drawing on insights from EU smart meter analytics to inform personalization.

Additionally, TCS will introduce new technologies to enhance spectator engagement. Digital experiences, such as virtual race tracking and immersive content, will bring spectators closer to the event, even if they are not physically present at the marathon. This will allow fans worldwide to engage with the race in more interactive ways, enhancing the global reach and excitement surrounding the event.

TCS’s role in the Schneider Electric Marathon de Paris is part of its broader strategy to leverage technology in the realm of sports. The company already supports several major global marathons, including those in New York, London, where projects like the London electricity tunnel showcase infrastructure innovation, and Mumbai, contributing to their operational success and social impact. In fact, marathons supported by TCS raised nearly $280 million for charitable causes in 2024 alone, demonstrating the company’s commitment to blending innovation with social responsibility.

The strategic partnership with the Paris marathon also underscores TCS’s continued commitment to its French operations, and aligns with Schneider Electric’s Notre Dame restoration initiatives that highlight local impact, reinforcing its role as a leader in AI and digital technology. Through this collaboration, TCS aims to not only support the marathon’s logistical and technological needs but also to contribute to the broader development of digital sports experiences.

This partnership promises to deliver a more dynamic, sustainable, and engaging marathon experience, benefiting runners, spectators, and the broader event ecosystem. With TCS’s cutting-edge technology and commitment to enhancing the marathon, the Schneider Electric Marathon de Paris is poised to set new standards for global sports events, blending athletic performance with digital innovation in unprecedented ways.

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