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California Rooftop Solar Rate Reforms propose shifting net metering to fixed access fees, peak-demand charges, and time-of-use pricing, aligning grid costs, distributed generation incentives, and retail rates for efficient, least-cost electricity and fair cost recovery.

Key Points

Policies replacing net metering with fixed fees, demand charges, and time-of-use rates to align costs and incentives.

✅ Large fixed access charge funds grid infrastructure

✅ Peak-demand pricing reflects capacity costs at system peak

✅ Time-varying rates align marginal costs and emissions

The California Public Service Commission has proposed revamping electricity rates for residential customers who produce electricity through their rooftop solar panels. In a recent New York Times op‐​ed, former Governor Arnold Schwarzenegger argued the changes pose an existential threat to residential rooftop solar. Interest groups favoring rooftop solar portray the current pricing system, often called net metering, in populist terms: “Net metering is the one opportunity for the little guy to get relief, and they want to put the kibosh on it.” And conventional news coverage suggests that because rooftop solar is an obvious good development and nefarious interests, incumbent utilities and their unionized employees, support the reform, well‐​meaning people should oppose it. A more thoughtful analysis would inquire about the characteristics and prices of a system that supplies electricity at least cost.

Currently, under net metering customers are billed for their net electricity use plus a minimum fixed charge each month. When their consumption exceeds their home production, they are billed for their net use from the electricity distribution system (the grid) at retail rates. When their production exceeds their consumption and the excess is supplied to the grid, residential consumers also are reimbursed at retail rates. During a billing period, if a consumer’s production equaled their consumption their electric bill would only be the monthly fixed charge.

Net metering would be fine if all the fixed costs of the electric distribution and transmission systems were included in the fixed monthly charge, but they are not. Between 66 and 77 percent of the expenses of California private utilities do not change when a customer increases or decreases consumption, but those expenses are recovered largely through charges per kWh of use rather than a large monthly fixed charge. Said differently, for every kWh that a PG&E solar household exported into the grid in 2019, it saved more than 26 cents, on average, while the utility’s costs only declined by about 8 cents or less including an estimate of the pollution costs of the system’s fossil fuel generators. The 18‐​cent difference pays for costs that don’t change with variation in a household’s consumptions, like much of the transmission and distribution system, energy efficiency programs, subsidies for low‐​income customers, and other fixed costs. Rooftop solar is so popular in California because its installation under a net metering system avoids the 18 cents, creating a solar cost shift onto non-solar customers. Rooftop solar is not the answer to all our environmental needs. It is simply a form of arbitrage around paying for the grid’s fixed costs.

What should electricity tariffs look like? This article in Regulation argues that efficient charges for electricity would consist of three components: a large fixed charge for the distribution and transmission lines, meter reading, vegetation trimming, etc.; a peak‐​demand charge related to your demand when the system’s peak demand occurs to pay for fixed capacity costs associated with peak use; and a charge for electricity use that reflects the time‐ and location‐​varying cost of additional electricity supply.

Actual utility tariffs do not reflect this ideal because of political concerns about the effects of large fixed monthly charges on low‐​income customers and the optics of explaining to customers that they must pay 50 or 60 dollars a month for access even if their use is zero. Instead, the current pricing system “taxes” electricity use to pay for fixed costs. And solar net metering is simply a way to avoid the tax. The proposed California rate reforms would explicitly impose a fixed monthly charge on rooftop solar systems that are also connected to the grid, a change that could bring major changes to your electric bill statewide, and would thus end the fixed‐​cost avoidance. Any distributional concerns that arise because of the effect of much larger fixed charges on lower‐​income customers could be managed through explicit tax deductions that are proportional to income.

The current rooftop solar subsidies in California also should end because they have perverse incentive effects on fossil fuel generators, even as the state exports its energy policies to neighbors. Solar output has increased so much in California that when it ends with every sunset, natural gas generated electricity has to increase very rapidly. But the natural gas generators whose output can be increased rapidly have more pollution and higher marginal costs than those natural gas plants (so called combined cycle plants) whose output is steadier. The rapid increase in California solar capacity has had the perverse effect of changing the composition of natural gas generators toward more costly and polluting units.

The reforms would not end the role of solar power. They would just shift production from high‐​cost rooftop to lower‐​cost centralized solar production, a transition cited in analyses of why electricity prices are soaring in California, whose average costs are comparable with electricity production in natural gas generators. And they would end the excessive subsidies to solar that have negatively altered the composition of natural gas generators.

Getting prices right does not generate citizen interest as much as the misguided notion that rooftop solar will save the world, and recent efforts to overturn income-based utility charges show how politicized the debate remains. But getting prices right would allow the decentralized choices of consumers and investors to achieve their goals at least cost.

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Irving Oil hydrogen electrolyzer expands green hydrogen capacity at the Saint John refinery with Plug Power technology, cutting carbon emissions, enabling clean fuel for buses, and supporting Atlantic Canada decarbonization and renewable grid integration.

Key Points

A 5 MW Plug Power unit at Irving's Saint John refinery producing low-carbon hydrogen via electrolysis.

✅ Produces 2 tonnes/day, enough to fuel about 60 hydrogen buses

✅ Uses grid power; targets cleaner supply via renewables and nuclear

✅ First Canadian refinery investing in electrolyzer technology

Irving Oil is expanding hydrogen capacity at its Saint John, N.B., refinery in a bid to lower carbon emissions and offer clean energy to customers.

The family-owned company said Tuesday it has a deal with New York-based Plug Power Inc. to buy a five-megawatt hydrogen electrolyzer that will produce two tonnes of hydrogen a day — equivalent to fuelling 60 buses with hydrogen — using electricity from the local grid and drawing on examples such as reduced electricity rates proposed in Ontario to grow the hydrogen economy.

Hydrogen is an important part of the refining process as it's used to lower the sulphur content of petroleum products like diesel fuel, but most refineries produce hydrogen using natural gas, which creates carbon dioxide emissions and raises questions explored in hydrogen's future for power companies in the energy sector.

"Investing in a hydrogen electrolyzer allows us to produce hydrogen in a very different way," Irving director of energy transition Andy Carson said in an interview.

"Instead of using natural gas, we're actually using water molecules and electricity through the electrolysis process to produce ... a clean hydrogen."

Irving plans to continue to work with others in the province to decarbonize the grid amid pressures like Ontario's push into energy storage as electricity supply tightens and ensure the electricity being used to power its hydrogen electrolyzer is as clean as possible, he said.

N.B. Power's electrical system includes 14 generating stations powered by hydro, coal, oil, wind, nuclear and diesel. The utility has committed to increasing its renewable energy sources and exploring innovations such as EV-to-grid integration piloted in Nova Scotia.

Irving said it will be the first oil refinery in Canada to invest in electrolyzer technology, as Ontario's Hydrogen Innovation Fund supports broader deployment nationwide.

The company said its goal is to offer hydrogen fuelling infrastructure in Atlantic Canada, complementing N.L.'s fast-charging network for EV drivers in the region.

"This kind of investment allows us to not just move to a cleaner form of hydrogen in the refinery. It also allows us to store and make hydrogen available to the marketplace," Carson said.

Federal watchdog warns Canada's 2030 emissions target may not be achievable
The hydrogen technology will help Irving "unlock pent up demand for hydrogen as an energy transition fuel for logistics organizations," he said.

Alberta also aims to expand its hydrogen production over the coming years, alongside British Columbia's $900 million hydrogen project moving ahead on the West Coast. 

Those plans lean on the development of carbon capture and storage (CCS) technology that aims to trap the emissions created when producing hydrogen from natural gas.

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France 2025–2035 Energy Roadmap accelerates carbon neutrality via renewables expansion, energy efficiency, EV adoption, heat pumps, hydrogen, CCS, nuclear buildout, and wind and solar targets, cutting fossil fuels and emissions across transport, housing, industry.

Key Points

A national plan to cut fossil use and emissions, boost renewables, and scale efficiency and clean technologies.

✅ Cuts fossil share to 30% by 2035 with efficiency gains

✅ Scales solar PV and wind; revives nuclear with EPR 2

✅ Electrifies transport and industry with EVs, hydrogen, CCS

Paris is on the verge of finalising its energy roadmap for the period 2025–2035, with an imminent decree expected to be published by the end of the first quarter of 2025. This roadmap is part of France's broader strategy to achieve carbon neutrality by 2050, aligning with wider moves toward clean electricity regulations in other jurisdictions.

Key Objectives of the Roadmap

The energy roadmap outlines ambitious targets for reducing greenhouse gas emissions across various sectors, including transport, housing, food, and energy. The primary goals are:

• Reducing Fossil Fuel Dependency: Building on the EU's plan to dump Russian energy, the share of fossil fuels in final energy consumption is to fall from 60% in 2022 to 42% in 2030 and 30% in 2035.

• Enhancing Energy Efficiency: A target of a 28.6% reduction in energy consumption between 2012 and 2030 is set, focusing on conservation and energy efficiency measures.

• Expanding Decarbonised Energy Production: The roadmap aims to accelerate the development of renewable energies and the revival.

Sector-Specific Targets

• Transport: The government aims to cut emissions by 31, focusing on the growth of electric vehicles, increasing public transport, and expanding charging infrastructure.

• Housing: Emissions from buildings are to be reduced by 44%, with plans to replace 75% of oil-fired and install 1 million heat pumps.

• Agriculture and Food: The roadmap includes measures to reduce emissions from agriculture by 9%, promoting organic farming and reducing the use of nitrogen fertilizers.

• Industry: A 37% reduction in emissions is targeted through the use of electricity, biomass, hydrogen, and CO₂ capture and storage technologies informed by energy technology pathways outlined in ETP 2017.

Renewable Energy Targets

The roadmap sets ambitious targets for renewable energy production that align with Europe's ongoing electricity market reform efforts:

• Photovoltaic Power: A sixfold increase in photovoltaic power between 2022

• Offshore Wind Power: Reaching 18 gigawatts up from 0.6 GW

• Onshore Wind Power: Doubling capacity from 21 GW to 45 GW over the same period.

• Nuclear Power: The commissioning of the evolutionary power and the construction of six EPR 2 reactors, underpinned by France's deal on electricity prices with EDF to support long-term investment, with the potential for eight more.
   

Implementation and Governance

The final version of the roadmap will be adopted by decree, alongside a proposed electricity pricing scheme to address EU concerns, rather than being enshrined in law as required by the Energy Code. The government had previously abandoned the energy-climate planning. The decree is expected to be published at the end of the Multiannual Energy Program (PPE) and in the second half of the third National Low-Carbon Strategy (SNBC).

Paris's finalisation of its energy roadmap for 2025–2035 marks a significant step towards achieving carbon neutrality by 2050. The ambitious targets set across various sectors reflect a comprehensive approach to reducing greenhouse gas emissions and transitioning to a more sustainable energy system amid the ongoing EU electricity reform debate shaping market rules. The imminent decree will provide the legal framework necessary to implement these plans and drive the necessary changes across the country.

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COVID-19 Impact on Global Oil Demand 2020 signals an IEA forecast of declining consumption as travel restrictions curb transport fuels, disrupt energy markets, and shift OPEC and non-OPEC supply dynamics amid economic slowdown.

Key Points

IEA sees first demand drop since 2009 as COVID-19 curbs travel, weakening transport fuels and unsettling energy markets.

✅ IEA base case: 2020 demand at 99.9 mb/d, down 90 kb/d from 2019.

✅ Travel restrictions hit transport fuels; China drives the decline.

✅ Scenarios: low -730 kb/d; high +480 kb/d in 2020.

Global oil demand is expected to decline in 2020 as the impact of the new coronavirus (COVID-19) spreads around the world, constricting travel and broader economic activity, according to the International Energy Agency’s latest oil market forecast.

The situation remains fluid, creating an extraordinary degree of uncertainty over what the full global impact of the virus will be. In the IEA’s central base case, even as global CO2 emissions flatlined in 2019 according to the IEA, demand this year drops for the first time since 2009 because of the deep contraction in oil consumption in China, and major disruptions to global travel and trade.

“The coronavirus crisis is affecting a wide range of energy markets – including coal-fired electricity generation, gas and renewables – but its impact on oil markets is particularly severe because it is stopping people and goods from moving around, dealing a heavy blow to demand for transport fuels,” said Dr Fatih Birol, the IEA’s Executive Director. “This is especially true in China, the largest energy consumer in the world, which accounted for more than 80% of global oil demand growth last year. While the repercussions of the virus are spreading to other parts of the world, what happens in China will have major implications for global energy and oil markets.”

The IEA now sees global oil demand at 99.9 million barrels a day in 2020, down around 90,000 barrels a day from 2019. This is a sharp downgrade from the IEA’s forecast in February, which predicted global oil demand would grow by 825,000 barrels a day in 2020.

The short-term outlook for the oil market will ultimately depend on how quickly governments move to contain the coronavirus outbreak, how successful their efforts are, and what lingering impact the global health crisis has on economic activity.

To account for the extreme uncertainty facing energy markets, the IEA has developed two other scenarios for how global oil demand could evolve this year. In a more pessimistic low case, global measures fail to contain the virus, and global demand falls by 730,000 barrels a day in 2020. In a more optimistic high case, the virus is contained quickly around the world, and global demand grows by 480,000 barrels a day.

“We are following the situation extremely closely and will provide regular updates to our forecasts as the picture becomes clearer,” Dr Birol said. “The impact of the coronavirus on oil markets may be temporary. But the longer-term challenges facing the world’s suppliers are not going to go away, especially those heavily dependent on oil and gas revenues. As the IEA has repeatedly said, these producer countries need more dynamic and diversified economies in order to navigate the multiple uncertainties that we see today.”

The IEA also published its medium-term outlook examining the key issues in global demand, supply, refining and trade to 2025, as well as the trajectory of the global energy transition now shaping markets. Following a contraction in 2020 and an expected sharp rebound in 2021, yearly growth in global oil demand is set to slow as consumption of transport fuels grows more slowly and as national net-zero pathways, with Canada needing more electricity to reach net-zero influencing power demand, according to the report. Between 2019 and 2025, global oil demand is expected to grow at an average annual rate of just below 1 million barrels a day. Over the period as whole, demand rises by a total of 5.7 million barrels a day, with China and India accounting for about half of the growth.

At the same time, the world’s oil production capacity is expected to rise by 5.9 million barrels a day, with more than three-quarters of it coming from non-OPEC producers, the report forecasts. But production growth in the United States and other non-OPEC countries is set to lose momentum after 2022, amid shifts in Wall Street's energy strategy linked to policy signals, allowing OPEC producers from the Middle East to turn the taps back up to help keep the global oil market in balance.

The medium-term market report, Oil 2020, also considers the impact of clean energy transitions on oil market trends. Demand growth for gasoline and diesel between 2019 and 2025 is forecast to weaken as countries around the world implement policies to improve efficiency and cut carbon dioxide emissions – and as solar power becomes the cheapest electricity in many markets and electric vehicles increase in popularity. The impact of energy transitions on oil supply remains unclear, with many companies prioritising short-cycle projects for the coming years.

“The coronavirus crisis is adding to the uncertainties the global oil industry faces as it contemplates new investments and business strategies,” Dr Birol said. “The pressures on companies are changing, with European oil majors turning electric to diversify. They need to show that they can deliver not just the energy that economies rely on, but also the emissions reductions that the world needs to help tackle our climate challenge.”

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Jay Grewal Manitoba Hydro Appointment marks the first woman CEO at the Crown utility, amid debt, rate increase plans, privatization debate, and Metis legal challenge, following board turmoil and Premier Pallister's strained relations.

Key Points

The selection of Jay Grewal as Manitoba Hydro's first woman CEO amid debt, rate hikes, and legal disputes.

✅ First woman CEO of Manitoba Hydro

✅ Faces debt, rate hikes, and project overruns

✅ Amid privatization debate and Metis legal action

The Manitoba government has appointed a new president and chief executive officer at its Crown-owned energy utility.

Jay Grewal becomes the first woman to head Manitoba Hydro, and takes over the top spot as the utility faces mounting financial challenges, rising electricity demand and turmoil.

Grewal has previously held senior roles at Capstone Mining Corp and B.C. Hydro, and is currently president of the Northwest Territories Power Corporation.

She will replace outgoing president Kelvin Shepherd, who recently announced he is retiring, on Feb. 4.

The utility was hit by the sudden resignations of nine of its 10 board members in March, who said they had been unable to meet with Premier Brian Pallister to discuss pressing issues like servicing energy-intensive customers facing the utility.

Manitoba Hydro is also in the middle of a battle between the Progressive Conservative government and the Manitoba Metis Federation over the cancellation of two agreements that would have given the Metis $87 million.

The federation has launched a legal challenge over one deal and says its likely going to do the same over the second agreement.

Grewal also takes over the utility at a time when it has racked up billions of dollars in debt building new generating stations and transmission lines. Manitoba Hydro has told the provincial regulatory agency it needs rate increases of nearly eight per cent a year for the next few years to help pay for the projects.

The utility also exports electricity, with deals such as SaskPower's purchase agreement expanding sales to Saskatchewan.

"Ms. Grewal is a proven leader, with extensive senior leadership experience in the utility, resource and consulting sectors," Crown Services Minister Colleen Mayer said in a written statement Thursday.

The Opposition New Democrats said Grewal's appointment is a sign the government wants to privatize Manitoba Hydro. Grewal's time at B.C. Hydro coincided with the privatization of some parts of that Crown utility, the NDP said.

The B.C. premier at the time, Gordon Campbell, was recently hired by Manitoba to review two major projects that ran over-budget and have added to the provincial debt.

NDP Leader Wab Kinew asked Pallister in the legislature Thursday to promise not to privatize Manitoba Hydro. Pallister would only point to a law that requires a referendum to be held before a Crown entity can be sold off.

"We stand by that (law)," Pallister said. "We believe Manitobans are the proper decision-makers in respect of any of the future structuring of Manitoba Hydro."

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Clean Energy Tax Incentives could expand under Democratic proposals, including ITC, PTC, and EV tax credits, boosting renewable energy, energy storage, and grid modernization within a broader infrastructure package influenced by Green New Deal goals.

Key Points

Federal incentives like ITC, PTC, and EV credits that cut costs and speed renewables, storage, and grid upgrades.

✅ Proposes permanence for ITC, PTC, and EV tax credits

✅ Could accelerate solar, wind, storage, and grid upgrades

✅ Passage depends on bipartisan infrastructure compromise

The 115th U.S. Congress has not even adjourned for the winter, and already a newly resurgent Democratic Party is making demands that reflect its majority status in the U.S. House come January.

Climate appears to be near the top of the list. Last Thursday, Senator Chuck Schumer (D-NY), the Democratic Leader in the Senate, sent a letter to President Trump demanding that any infrastructure package taken up in 2019 include “policies and funding to transition to a clean energy economy and mitigate the risks that the United States is already facing due to climate change.”

And in a list of policies that Schumer says should be included, the top item is “permanent tax incentives for domestic production of clean electricity and storage, energy efficient homes and commercial buildings, electric vehicles, and modernizing the electric grid.”

In concrete terms, this could mean an extension of the Investment Tax Credit (ITC) for solar and energy storage, the Production Tax Credit (PTC) for wind and the federal electric vehicle (EV) tax credit program as well.

Pressure from the Left

This strong statement on climate change, clean energy and infrastructure investment comes as at least 30 incoming members of the U.S. House of Representatives have signed onto a call for the creation of a committee to explore a “Green New Deal” and to move the nation to 100% renewable energy by 2030.*

It also comes as Schumer has come under fire by activists for rumors that he plans to replace Senator Maria Cantwell (D-Washington) with coal state Democrat Joe Manchin (D-West Virginia) as the top Democrat on the Senate Energy and Natural Resources Committee.

As such, one possible way to read these moves is that centrist leaders like Schumer are responding to pressure from an energized and newly elected Left wing of the Democratic Party. It is notable that Schumer’s program includes many of the aims of the Green New Deal, while avoiding any explicit use of that phrase.

Implications of a potential ITC extension

The details of levels and timelines are important here, particularly for the ITC.

The ITC was set to expire at the end of 2016, but was extended in legislative horse-trading at the end of 2015 to a schedule where it remains at 30% through the end of 2019 and then steps down for the next three years, and disappears entirely for residential projects. Since that extension the IRS has issued guidance around the use of co-located energy storage, as well as setting a standard under which PV projects can claim the ITC for the year that they begin construction.

This language around construction means that projects can start work in 2019, complete in 2023 and still claim the 30% ITC, and this may be why we at pv magazine USA are seeing an unprecedented boom in project pipelines across the United States.

Of course, if the ITC were to become permanent some of those projects would be pushed out to later years. But as we saw in 2016, despite an extension of the ITC many projects were still completed before the deadline, leading to the largest volume of PV installed in the United States in any one year to date.

This means that if the ITC were extended by the end of 2020, we could see the same thing all over again – a boom in projects created by the expected sunset, and then after a slight lull a continuation of growth.

Or it is possible that a combination of raw economics, increased investor and utility interest, and accelerating renewable energy mandates will cause solar growth rates to continue every year, and that any changes in the ITC will only be a bump against a larger trend.

While the basis for expiration of the EV tax credit is the number of vehicles sold, not any year, both the battery storage and EV industries, which many see at an inflection point, could see similar effects if the ITC and EV tax credits are made permanent.

Will consensus be reached?

It is also unclear that any such infrastructure package will be taken up by Republicans, or that both parties will be able to come to a compromise on this issue. While the U.S. Congress passed an infrastructure bill in 2017, given the sharp and growing differences between the two parties, and divergent trade approaches such as the 100% tariff on Chinese-made EVs, it is not clear that they will be able to come to a meaningful compromise during the next two years.

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