Britons could save on soaring bills as ministers plan to end link between gas and electricity prices


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UK Electricity-Gas Price Decoupling aims to reform wholesale electricity pricing under the Energy Security Bill, shielding households from gas price spikes, supporting renewables, and easing the cost-of-living crisis through market redesign and transparent tariffs.

 

Key Points

Policy to decouple power prices from gas via the Energy Security Bill, stabilizing bills and reflecting renewables

✅ Breaks gas-to-power pricing link to cut electricity costs

✅ Reduces volatility; shields households from global gas shocks

✅ Highlights benefits of renewables and market transparency

 

Britons could be handed relief on rocketing household bills under Government plans to sever the link between the prices of gas and electricity, including proposals to restrict energy prices in the market, it has emerged.

Ministers are set to bring forward new laws under the Energy Security Bill to overhaul the UK's energy market in the face of the current cost-of-living crisis.

They have promised to provide greater protection for Britons against global fluctuations in energy prices, through a price cap on bills among other measures.

The current worldwide crisis has been exacerbated by the Ukraine war, which has sent gas prices spiralling higher.

Under the current make-up of Britain's energy market, soaring natural gas prices have had a knock-on effect on electricity costs.

But it has now been reported the new legislation will seek to prevent future shocks in the global gas market having a similar impact on electricity prices.

Yet the overhaul might not come in time to ease high winter energy costs for households ahead of this winter.

According to The Times, Business Secretary Kwasi Kwarteng will outline proposals for reforms in the coming weeks.

These will then form part of the Energy Security Bill to be introduced in the autumn, with officials anticipating a decrease in energy bills by April.

The newspaper said the plans will end the current system under which the wholesale cost of gas effectively determines the price of electricity for households.

Although more than a quarter of Britain's electricity comes from renewable sources, under current market rules it is the most expensive megawatt needed to meet demand that determines the price for all electricity generation.

This means that soaring gas prices have driven up all electricity costs in recent months, even though only around 40% of UK electricity comes from gas power stations.

Energy experts have compared the current market to train passengers having to pay the peak-period price for every journey they make.

One Government source told The Times: 'In the past it didn’t really matter because the price of gas was reasonably stable.

'Now it seems completely crazy that the price of electricity is based on the price of gas when a large amount of our generation is from renewables.'

It was also claimed ministers hope the reforms will make the market more transparent and emphasise to consumers the benefits of decarbonisation, amid an ongoing industry debate over free electricity for consumers.

A Government spokesperson said: 'The high global gas prices and linked high electricity prices that we are currently facing have given added urgency to the need to consider electricity market reform.

 

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Egypt's renewable energy to reach 6.6 GW by year-end

Egypt Renewable Energy Expansion targets solar and wind power projects to diversify the energy mix, adding 6.6 GW by 2020 and reaching 8,200 MW, with UK cooperation, grid upgrades, and investment in the electricity sector.

 

Key Points

A plan to boost solar and wind by 6.6 GW by 2020, reaching 8,200 MW and diversifying Egypt's energy mix.

✅ Adds 6.6 GW by 2020; targets 8,200 MW total capacity

✅ Focus on solar, wind, grid upgrades, and investment

✅ UK-Egypt cooperation in electricity sector projects

 

Egypt is planning to expand into renewable energy projects in a bid to increase its contribution to the energy mix, in step with global records being set in renewables, and amid Saudi Arabia’s 60 GW drive in the region, the country’s minister of electricity and renewable energy Mohamed Shaker said.

Renewable power is expected to add 6.6 gigawatts (GW) by the end of 2020, a scale comparable to Saudi wind expansion underway, with plans to reach 8,200 megawatts (MW) after the completion of the renewable energy projects currently under consideration, reflecting gains seen since IRENA’s 2016 record year for renewables, Shaker added in a statement on Tuesday, even as regional challenges persist.

This came during the minister’s video-conference meeting with the British ambassador to Egypt Geoffrey Adams to explore the potential means for cooperation between the two countries in the electricity sector, including lessons from the UK project backlog now affecting investments and from Ireland’s green-electricity goals being pursued.

 

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Canada Extends Net-Zero Target to 2050

Canada Clean Electricity Regulations 2050 balance net-zero goals with grid reliability and affordability, setting emissions caps, enabling offset credits, and flexible provincial pathways, including support for non-grid facilities during the clean energy transition.

 

Key Points

A federal plan for a net-zero grid by 2050 with emissions caps, offsets, and flexible provincial compliance.

✅ Emissions cap targeting 181 Mt CO2 from the power sector by 2050

✅ Offset credits and annual limits enable compliance flexibility

✅ Support for remote, non-grid facilities and regional pathways

 

In December 2024, the Government of Canada announced a significant policy shift regarding its clean electricity objectives. The initial target to achieve a net-zero electricity grid by 2035 has been extended to 2050. This decision reflects the government's response to feedback from provinces and energy industry stakeholders, who expressed concerns about the feasibility of meeting the 2035 deadline.

Revised Clean Electricity Regulations

The newly finalized Clean Electricity Regulations (CER) outline the framework for Canada's transition to a net-zero electricity grid by 2050, advancing the goal of 100 per cent clean electricity nationwide.

  • Emissions Reduction Targets: The regulations set a cap on emissions from the electricity sector, targeting a reduction of 181 megatonnes of CO₂ by 2050. This is a decrease from the previous goal of 342 megatonnes, reflecting a more gradual approach to emissions reduction.

  • Flexibility Mechanisms: To accommodate the diverse energy landscapes across provinces, the CER introduces flexibility measures. These include annual emissions limits and the option to use offset credits, allowing provinces to tailor their strategies while adhering to national objectives.

  • Support for Non-Grid Connected Facilities: Recognizing the unique challenges of remote and off-grid communities, the regulations provide accommodations for certain non-grid connected facilities, ensuring that all regions can contribute to the national clean electricity goals.

Implications for Canada's Energy Landscape

The extension of the net-zero electricity target to 2050 signifies a strategic recalibration of Canada's energy policy. This adjustment acknowledges the complexities involved in transitioning to a clean energy future, including:

  • Grid Modernization: Upgrading the electrical grid to accommodate renewable energy sources and ensure reliability is a critical component of the transition, especially as Ontario's EV wave accelerates across the province.

  • Economic Considerations: Balancing environmental objectives with economic impacts is essential. The government aims to create over 400,000 clean energy jobs, fostering economic growth while reducing emissions, supported by ambitious EV goals in the transport sector.

  • Regional Variations: Provinces have diverse energy profiles and resources, and British Columbia's power supply challenges highlight planning constraints. The CER's flexibility mechanisms are designed to accommodate these differences, allowing for tailored approaches that respect regional contexts.

Public and Industry Reactions

The policy shift has elicited varied responses:

  • Environmental Advocates: Some environmental groups express concern that the extended timeline may delay critical climate action, while debates over Quebec's push for EV dominance underscore policy trade-offs. They emphasize the need for more ambitious targets to address the escalating impacts of climate change.

  • Industry Stakeholders: The energy sector generally welcomes the extended timeline, viewing it as a pragmatic approach that allows for a more measured transition, particularly amid criticism of the 2035 EV mandate in transportation policy. The flexibility provisions are particularly appreciated, as they provide the necessary leeway to adapt to evolving market and technological conditions.

Looking Forward

As Canada moves forward with the implementation of the Clean Electricity Regulations, the focus will be on:

  • Monitoring Progress: Establishing robust mechanisms to track emissions reductions and ensure compliance with the new targets.

  • Stakeholder Engagement: Continuing dialogue with provinces, industry, and communities to refine strategies and address emerging challenges, including coordination on EV sales regulations as complementary measures.

  • Innovation and Investment: Encouraging the development and deployment of clean energy technologies through incentives and support programs.

The extension of Canada's net-zero electricity target to 2050 represents a strategic adjustment aimed at achieving a balance between environmental goals and practical implementation considerations. The Clean Electricity Regulations provide a framework that accommodates regional differences and industry concerns, setting the stage for a sustainable and economically viable energy future.

 

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Britain Goes Full Week Without Coal Power

Britain Coal-Free Week signals a historic shift to clean energy, with zero coal power, increased natural gas and renewables, lower greenhouse gas emissions, and ambitious UK energy policy targeting a 2025 coal phase-out and decarbonization.

 

Key Points

A seven-day period with no coal power in the UK, signaling cleaner energy and progress on emission reductions.

✅ Seven days of zero coal generation in the UK

✅ Natural gas and renewables dominated the electricity mix

✅ Coal phase-out targeted by 2025; emissions cuts planned

 

For the first time in a century, Britain weaned itself off of coal consumption for an entire week, a coal-free power record for the country.

Reuters reported that Britain went seven days without relying on any power generated by coal-powered stations as the share of coal in the grid continued to hit record lows.

The accomplishment is symbolic of a shift to more clean energy sources, with wind surpassing coal in 2016 and the UK leading the G20 in wind share as of recent years; Britain was home to the first coal-powered plant back in the 1880s.

Today, Britain has some aggressive plans in place to completely eliminate its coal power generation permanently by 2025, with a plan to end coal power underway. In addition, Britain aims to cut its total greenhouse gas emissions by 80 percent from 1990 levels within the next 30 years.

Natural gas was the largest source of power for Britain in 2018, providing 39 percent of the nation's total electricity, as the Great Britain generation dashboard shows. Coal contributed only about 5 percent, though low-carbon generation stalled in 2019 according to reports. Burning natural gas also produces greenhouse gases, but it is much more efficient and greener than coal.

In the U.S., 63.5 percent of electricity generated in 2018 came from fossil fuels. About 35.1 percent was produced from natural gas and 27.4 percent came from coal. In addition, 19.3 percent of electricity came from nuclear power and 17.1 percent came from renewable energy sources, according to the U.S. Energy Information Administration.

 

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Ontario Teachers Pension Plan agrees to acquire a 25% stake in SSEN Transmission

Ontario Teachers SSEN Transmission Investment advances UK renewable energy, with a 25% minority stake in SSE plc's electricity transmission network, backing offshore wind, grid expansion, and Net Zero 2050 goals across Scotland and UK.

 

Key Points

A 25% stake by Ontario Teachers in SSE's SSEN Transmission to fund UK grid upgrades and accelerate renewables.

✅ £1,465m cash for 25% minority stake in SSEN Transmission

✅ Supports offshore wind, grid expansion, and Net Zero targets

✅ Partnering SSE plc to deliver clean, affordable power in the UK

 

Ontario Teachers’ Pension Plan Board (‘Ontario Teachers’) has reached an agreement with Scotland-based energy provider SSE plc (‘SSE’) to acquire a 25% minority stake in its electricity transmission network business, SSEN Transmission, to provide clean, affordable renewable energy to millions of homes and businesses across the UK, reflecting how clean-energy generation powers both the economy and the environment.

The transaction is based on an effective economic date of 31 March 2022, and total cash proceeds of £1,465m for the 25% stake are expected at completion. The transaction is expected to complete shortly.

Measures such as Ontario's 2021 electricity rate reductions have aimed to ease costs for businesses, informing broader discussions on affordability.

SSEN Transmission, which operates under its licenced entity, Scottish Hydro Electric Transmission plc, transports electricity generated from renewable resources – including onshore and offshore wind and hydro – from the north of Scotland across more than a quarter of the UK land mass amid scrutiny of UK electricity and gas networks profits under the regulatory regime. The investment by Ontario Teachers’ will help support the UK Government’s Net Zero 2050 targets, including the delivery of 50GW of offshore wind capacity by 2030.

Charles Thomazi, Senior Managing Director, Head of EMEA Infrastructure & Natural Resources, from Ontario Teachers’ said, noting that in Canada decisions like the OEB decision on Hydro One's T&D rates guide utility planning:

“SSEN Transmission is one of Europe’s fastest growing transmission networks. Its network stretches across some of the most challenging terrain in Scotland – from the North Sea and across the Highlands – to deliver safe, reliable, renewable energy to demand centres across the UK.

We’re delighted to partner again with SSE and are committed to supporting the growth of its network and the vital role it plays in the UK’s green energy revolution.”

Investor views on regulated utilities can diverge, as illustrated by analyses of Hydro One's investment outlook that weigh uncertainties and risk factors.

Rob McDonald, Managing Director of SSEN Transmission, said:

“With the north of Scotland home to the UK’s greatest resources of renewable electricity we have a critical role to play in helping deliver the UK and Scottish Governments net zero commitments.  Our investments will also be key to securing the UK’s future energy independence through enabling the deployment of homegrown, affordable, low carbon power.

“With significant growth forecast in transmission, bringing in Ontario Teachers’ as a minority stake partner will help fund our ambitious investment plans as we continue to deliver a network for net zero emissions across the north of Scotland.” 

Ontario Teachers’ Infrastructure & Natural Resources group invests in electricity infrastructure worldwide to accelerate the energy transition with current investments including Caruna, Finland’s largest electricity distributor, Evoltz, a leading electricity transmission platform in Brazil, and Spark Infrastructure, which invests in essential energy infrastructure in Australia to serve over 5 million homes and businesses.

In Ontario, distribution consolidation has included the sale of Peterborough Distribution to Hydro One for $105 million, illustrating ongoing sector realignment.

 

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California Welcomes 70 Volvo VNR Electric Trucks

Switch-On Project Electric Trucks accelerate California freight decarbonization, deploying Volvo VNR Electric rigs with high-capacity charging infrastructure, zero-emissions operations, and connected safety features to cut greenhouse gases and improve urban air quality.

 

Key Points

A California program deploying Volvo VNR Electric trucks and charging to decarbonize freight and improve air quality.

✅ 70 Volvo VNR Electric trucks for regional logistics

✅ Strategic high-capacity charging for heavy-duty fleets

✅ Lower TCO via fuel savings and reduced maintenance

 

In a significant step toward sustainable transportation, the Switch-On project is bringing 70 Volvo VNR Electric trucks to California. This initiative aims to bolster the state's efforts to reduce emissions and transition to greener logistics solutions. The arrival of these electric vehicles marks an important milestone in California's commitment to combating climate change and improving air quality.

The Switch-On Project: Overview and Goals

The Switch-On project is a collaborative effort designed to enhance electric truck adoption in California. It focuses on developing the necessary infrastructure and technology to support electric vehicles (EVs) in the freight and logistics sectors, building on recent nonprofit investments at California ports. The project not only seeks to increase the availability of electric trucks but also aims to demonstrate their effectiveness in real-world applications.

California has set ambitious goals for reducing greenhouse gas emissions, particularly from the transportation sector, which is one of the largest contributors to air pollution. By introducing electric trucks into freight operations, the state aims to significantly cut emissions, improve public health, and pave the way for a more sustainable future.

The Volvo VNR Electric Trucks

The Volvo VNR Electric trucks are specifically designed for regional distribution and urban transport, aligning with Volvo's broader electric lineup as the company expands offerings, making them ideal for the needs of California’s freight industry. With a range of approximately 250 miles on a single charge, these trucks can efficiently handle most regional routes. Equipped with advanced technology, including regenerative braking and connectivity features, the VNR Electric models enhance operational efficiency and safety.

These trucks not only provide a cleaner alternative to traditional diesel vehicles but also promise lower operational costs over time. With reduced fuel expenses and lower maintenance needs, and emerging vehicle-to-grid pilots that can create new value streams, businesses can benefit from significant savings while contributing to environmental sustainability.

Infrastructure Development

A crucial aspect of the Switch-On project is the development of charging infrastructure to support the new fleet of electric trucks. The project partners are working on installing high-capacity charging stations strategically located throughout California while addressing utility planning challenges that large fleets will pose to the power system. This infrastructure is essential to ensure that electric trucks can be charged efficiently, minimizing downtime and maximizing productivity.

The charging stations are designed to accommodate the specific needs of heavy-duty vehicles, and corridor models like BC's Electric Highway provide useful precedents for network design, allowing for rapid charging that aligns with operational schedules. This development not only supports the new fleet but also encourages other logistics companies to consider electric trucks as a viable option for their operations.

Benefits to California

The introduction of 70 Volvo VNR Electric trucks will have several positive impacts on California. Firstly, it will significantly reduce greenhouse gas emissions from the freight sector, contributing to the state’s ambitious climate goals even as grid expansion will be needed to support widespread electrification across sectors. The transition to electric trucks is expected to improve air quality, particularly in urban areas that struggle with high pollution levels.

Moreover, the project serves as a model for other regions considering similar initiatives. By showcasing the practicality and benefits of electric trucks, California hopes to inspire widespread adoption across the nation. As the market for electric vehicles continues to grow, this project can play a pivotal role in accelerating the transition to sustainable transportation solutions.

Industry and Community Reactions

The arrival of the Volvo VNR Electric trucks has been met with enthusiasm from both industry stakeholders and community members. Logistics companies are excited about the opportunity to reduce their carbon footprints and operational costs. Meanwhile, environmental advocates applaud the project as a crucial step toward cleaner air and healthier communities.

California’s commitment to sustainable transportation has positioned it as a leader in the shift to electric vehicles amid an ongoing biofuels vs. EVs debate over the best path forward, setting an example for other states and countries.

Conclusion

The Switch-On project represents a major advancement in California's efforts to transition to electric transportation. With the deployment of 70 Volvo VNR Electric trucks, the state is not only taking a significant step toward reducing emissions but also demonstrating the feasibility of electric logistics solutions.

As infrastructure develops and more electric trucks hit the roads, California is paving the way for a greener, more sustainable future in transportation. The success of this project could have far-reaching implications, influencing policies and practices in the broader freight industry and beyond.

 

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Two-thirds of the U.S. is at risk of power outages this summer

Home Energy Independence reduces electricity costs and outage risks with solar panels, EV charging, battery storage, net metering, and smart inverters, helping homeowners offset tiered rates and improve grid resilience and reliability.

 

Key Points

Home Energy Independence pairs solar, batteries, and smart EV charging to lower bills and keep power on during outages.

✅ Offset rising electricity rates via solar and net metering

✅ Add battery storage for backup power and peak shaving

✅ Optimize EV charging to avoid tiered rate penalties

 

The Department of Energy recently warned that two-thirds of the U.S. is at risk of losing power this summer. It’s an increasingly common refrain: Homeowners want to be less reliant on the aging power grid and don’t want to be at the mercy of electric utilities due to rising energy costs and dwindling faith in the power grid’s reliability.

And it makes sense. While the inflated price of eggs and butter made headlines earlier this year, electricity prices quietly increased at twice the rate of overall inflation in 2022, even as studies indicate renewables aren’t making power more expensive overall, and homeowners have taken notice. In fact, according to Aurora Solar’s Industry Snapshot, 62% expect energy prices will continue to rise.

Homeowners aren’t just frustrated that electricity is pricey when they need it, they’re also worried it won’t be available at all when they feel the most vulnerable. Nearly half (48%) of homeowners are concerned about power outages stemming from weather events, or grid imbalances from excess solar in some regions, followed closely by outages due to cyberattacks on the power grid.

These concerns around reliability and cost are creating a deep lack of confidence in the power grid. Yet, despite these growing concerns, homeowners are increasingly using electricity to displace other fuel sources.

The electrification of everything
From electric heat pumps to electric stoves and clothes dryers, homeowners are accelerating the electrification of their homes. Perhaps the most exciting example is electric vehicle (EV) adoption and the need for home charging. With major vehicle makers committing to ambitious electric vehicle targets and even going all-electric in the future, EVs are primed to make an even bigger splash in the years to come.

The by-product of this electrification movement is, of course, higher electric bills because of increased consumption. Homeowners also risk paying more for every unit of energy they use if they’re part of a tiered pricing utility structure, where energy-insecure households often pay 27% more on electricity because customers are charged different rates based on the total amount of energy they use. Many new electric vehicle owners don’t realize this until they are deep into purchasing their new vehicle, or even when they open that first electric bill after the car is in their driveway.

Sure, this electrification movement can feel counterintuitive given the power grid concerns. But it’s actually the first step toward energy independence, and emerging models like peer-to-peer energy sharing could amplify that over time.

Balancing conflicting movements
The fact is that electrification is moving forward quickly, even among homeowners who are concerned about electricity prices and power grid reliability, and about why the grid isn’t yet 100% renewable in the U.S. This has the potential to lead to even more discontent with electric utilities and growing anxiety over access to electricity in extreme situations. There is a third trend, though, that can help reconcile these two conflicting movements: the growth of solar.

The popularity of solar is likely higher than you think: Nearly 77% of homeowners either have solar panels on their homes or are interested in purchasing solar. The Aurora Solar Industry Snapshot report also showed a nearly 40% year-over-year increase in residential solar projects across the U.S. in 2022, as the country moves toward 30% power from wind and solar overall, aligning with the Solar Energy Industries Association’s (SEIA) Solar Market Insight Report, which found, “Residential solar had a record year [in 2022] with nearly 6 GWdc of installations, representing 40% growth over 2021.”

It makes sense that finding ways to tamp down—even eliminate—growing bills caused by the electrification of homes is accelerating interest in solar, as more households weigh whether residential solar is worth it for their budgets, and residential solar installers are seeing this firsthand. The link between EVs and solar is a great proof point: Almost 80% of solar professionals said EV adoption often drives new interest in solar. 

 

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