France Hits Record: 20% Of Market Buys Electric Cars


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France Plug-In Electric Car Sales September 2023 show rapid EV adoption: 45,872 plug-ins, 30% market share, BEV 19.6%, PHEV 10.2%, with Tesla Model Y leading registrations amid sustained year-over-year growth.

 

Key Points

France registered 45,872 plug-ins in September 2023, a 30% share, with BEVs at 19.6% and PHEVs at 10.2%.

✅ Tesla Model Y led BEVs with 5,035 registrations in September

✅ YTD plug-in share 25%; BEV 15.9%, PHEV 9.1% across passenger cars

✅ Total market up 9% YoY to 153,916; plug-ins up 35% YoY

 

New passenger car registrations in France increased in September by nine percent year-over-year to 153,916, mirroring global EV market growth trends, taking the year-to-date total to 1,286,247 (up 16 percent year-over-year).

The market has been expanding every month this year (recovering slightly from the 2020-2022 collapse and the period when EU EV share grew during lockdowns across the bloc) and also is becoming more and more electrifying thanks to increasing plug-in electric car sales.

According to L’Avere-France, last month 45,872 new passenger plug-in electric cars were registered in France (35 percent more than a year ago), which represented almost 30 percent of the market, aligning with the view that the age of electric cars is arriving ahead of schedule. That's a new record share for rechargeable cars and a noticeable jump compared to just over 24 percent a year ago.

What's even more impressive is that passenger all-electric car registrations increased to over 30,000 (up 34 percent year-over-year), taking a record share of 19.6 percent of the market. That's basically one in five new cars sold, and in the U.S., plug-ins logged 19 billion electric miles in 2021 as a benchmark.

Plug-in hybrids are also growing (up 35% year-over-year), and with 15,699 units sold, accounted for 10.2 percent of the market (a near record value).


Plug-in car sales in France – September 2023

So far this year, more than 341,000 new plug-in electric vehicles have been registered in France, including over 321,000 passenger plug-in cars (25 percent of the market), while in the U.S., EV sales are soaring into 2024 as well.

Plug-in car registrations year-to-date (YOY change):

  • Passenger BEVs: 204,616 (up 45%) and 15.9% market share
  • Passenger PHEVs: 116,446 (up 31%) and 9.1% market share
  • Total passenger plug-ins: 321,062 (up 40%) and 25% market share
  • Light commercial BEVs: 20,292 (up 111%)
  • Light commercial PHEVs: 281 (down 38%)
  • Total plug-ins: 341,635 (up 43%)

For reference, in 2022, more than 346,000 new plug-in electric vehicles were registered in France (including almost 330,000 passenger cars, which was 21.5 percent of the market).

We can already tell that the year 2023 will be very positive for electrification in France, with a potential to reach 450,000 units or so, though new EV incentive rules could reshape the competitive landscape.


Models
In terms of individual models, the Tesla Model Y again was the most registered BEV with 5,035 new registrations in September. This spectacular result enabled the Model Y to become the fifth best-selling model in the country last month (Tesla, as a brand, was seventh).

The other best-selling models are usually small city cars - Peugeot e-208 (3,924), Dacia Spring (2,514), Fiat 500 electric (2,296), and MG4 (1,945), amid measures discouraging Chinese EVs in France. Meanwhile, the best-selling electric Renault - the Megane-e - was outside the top five BEVs, which reveals to us how much has changed since the Renault Zoe times.

After the first nine months of the year, the top three BEVs are the Tesla Model Y (27,458), Dacia Spring (21,103), and Peugeot e-208 (19,074), slightly ahead of the Fiat 500 electric (17,441).

 

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3 ways to tap billions in new money to go green - starting this month

Inflation Reduction Act Energy Credits help households electrify with tax credits and rebates for heat pumps, EVs, rooftop solar, battery storage, and efficiency upgrades, cutting utility bills, reducing carbon emissions, and accelerating home electrification nationwide.

 

Key Points

Federal incentives offering tax credits and rebates for heat pumps, EVs, solar, and efficiency to cut emissions.

✅ 30% rooftop solar and storage credit; $2,000 annual cap for heat pumps

✅ Up to $7,500 EV tax credit; price, income, and assembly rules apply

✅ Low-income rebates and discounts available via states starting mid-2023

 

Earlier this year, Congress passed the biggest climate bill in history — cloaked under the name the “Inflation Reduction Act,” a historic climate deal by any measure.

Starting in the new year, the bill will offer households thousands of dollars to transition over from fossil-fuel burning heaters, stoves and cars to cleaner versions as renewable electricity accelerates. On Jan. 1, middle-income households will be able to access over a half-dozen tax credits for electric stoves, cars, rooftop solar and more. And starting sometime in mid-2023, lower-income households will be able to get upfront discounts on some of those same appliances — without having to wait to file their taxes to get the cash back. This handy online tool shows what you might be eligible for, depending on your Zip code and income.

But which credits should Americans focus on — and which are best for the climate? Here’s a guide to the top climate-friendly benefits of the Inflation Reduction Act, and how to access them.


Heat pumps — the best choice for decarbonizing at home

Tax credit available on Jan. 1: 30 percent of the cost, up to $2,000

Income limit: None

Ah, heat pumps — one of the most popular technologies of the transition to clean energy and to net-zero electricity systems. “Heat pump” is a bit of a misnomer for these machines, which are more like super-efficient combo air conditioning and heating systems. These appliances run on electricity and move heat, instead of creating it, and so can be three to five times more efficient than traditional gas or electrical resistance heaters.

“For a lot of people, a heat pump is going to be their biggest personal impact,” said Sage Briscoe, the federal senior policy manager at Rewiring America, a clean-energy think tank. (Heat pumps have become so iconic that Rewiring America even has a heat pump mascot.)

Heat pumps can have enormous cost and carbon savings. According to one analysis using data from the National Renewable Energy Laboratory, switching to a heat pump can save homeowners anywhere from $100 to $1,200 per year on heating bills and prevent anywhere from 1 to 8 metric tons of carbon dioxide emissions per year. For comparison, going vegan for an entire year saves about 1 metric ton of CO2 emissions.

But many consumers encounter obstacles when switching over to heat pumps. In some areas, it can be difficult to find a contractor trained and willing to install them; some homeowners report that contractors share misinformation about heat pumps, including that they don’t work in cold climates. (Modern heat pumps do work in cold climates, and can heat a home even when outdoor temperatures are down to minus-31 degrees Fahrenheit.) Briscoe recommends that homeowners look for skilled contractors who know about heat pumps and do advance research to figure out which models might work best for their home.


Electric vehicles — top choice for cutting car emissions

Tax credit available on Jan. 1: Up to $7,500 depending on the make and model of the car

Income limit: <$150,000 for single filers; <$300,000 for joint filers

If you are like the millions of Americans who don’t live in a community with ample public transit, the best way to decarbonize your transport, as New Zealand's electricity transition shows, is switching to an electric car. But electric cars can be prohibitively expensive for many Americans.

Starting Jan. 1, a new EV tax credit will offer consumers up to $7,500 off the purchase of an electric vehicle. For the first few months, Americans will get somewhere between $3,751 and $7,500 off their purchase of an EV, depending on the size of the battery in the car.

There are limitations, per the new law. The vehicles will also have to be assembled in North America, where Canada's electricity progress is notable, and cars that cost more than $55,000 aren’t eligible, nor are vans or trucks that cost more than $80,000. This week, the Internal Revenue Service provided a list of vehicles that are expected to meet the criteria starting Jan. 1.

Beginning about March, however, that $7,500 credit will be split into two parts: Consumers can get a $3,750 credit if the vehicle has a battery containing at least 40 percent critical minerals from the United States (or a country that the United States has a free-trade agreement with) and another $3,750 credit if at least 50 percent of the battery’s components were assembled and manufactured in North America. Those rules haven’t been finalized yet, so the tax credit starting on Jan. 1 is a stopgap measure until the White House has ironed out the final version.

Joe Britton, the executive director of the EV industry group Zeta, said that means there will likely be a wider group of vehicles eligible for the full tax credit in January and February than there will be later in 2023. Because of this, he recommended that potential EV owners act fast in 2023.

“I would be buying a car in the first quarter,” he said.


Rooftop solar — the best choice for generating clean energy

Tax credit available now: 30 percent of the cost of installation, no cap

Income limit: None

For those who want to generate their own clean energy, there is always rooftop solar panels. This tax credit has actually been available since the Inflation Reduction Act was signed into law in August 2022. It offers a tax credit equal to 30 percent of the cost of installing rooftop solar, with no cap. According to Rewiring America, the average 6 kilowatt solar installation costs about $19,000, making the average solar tax credit about $5,700. (The Inflation Reduction Act also includes a 30 percent tax credit for homeowners that need to upgrade their electricity panel for rooftop solar, and a 30 percent tax credit for installing battery storage to support the shift toward carbon-free electricity solutions.)

Solar panels can save homeowners tens of thousands of dollars in utility bills as extreme heat boosts electricity bills and, when combined with battery storage, can also provide a power backup in the case of a blackout or other disaster. For someone trying to move their entire home away from fossil fuels, solar panels become even more enticing: Switch everything over to electricity, and then make the electricity super cheap with the help from the sun.

For people who don’t own their own homes, there are other options as well. Renters can subscribe to a community solar project to lower their electricity bills and get indirect benefits from the tax credits.


Tips, tricks and words of caution
There are many other credits also coming out in 2023: for EV chargers (up to $1,000), a boon for expanding carbon-free electricity across the grid, heat pump water heaters (up to $2,000), and even cash for sealing up the doors and windows of your home (up to $1,200).

The most important thing to know, Briscoe said, is whether you qualify for the upfront discounts for low- and moderate-income Americans — which won’t be available until later in 2023 — or the tax credits, which will be available Jan. 1. (Try this tool.) If going the tax credit route, it’s better to spread the upgrades out across multiple years, since there is an annual limit on how many of the credits you can claim in a given year. And, she warned, it is not always going to be easy: It can be hard to find the right installers and the right information for how to make use of all the available government resources.

 

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Renewable Electricity Is Coming on Strong

Cascadia electrification accelerates renewable energy with wind and solar, EVs, heat pumps, and grid upgrades across British Columbia, Washington, and Oregon to decarbonize power, buildings, and transport at lower cost while creating jobs.

 

Key Points

Cascadia electrification is the shift to renewable grids, EVs, and heat pumps replacing fossil fuels.

✅ Wind and solar scale fast; gas and coal phase down

✅ EVs and heat pumps cut fuel costs and emissions

✅ Requires grid upgrades, policy, and social acceptance

 

Fifty years ago, a gasoline company’s TV ads showed an aging wooden windmill. As the wind died, it slowed to stillness. The ad asked: “But what do you do when the wind stops?” For the next several decades, fossil fuel providers and big utilities continued to denigrate renewable energy. Even the U.S. Energy Department deemed renewables “too rare, too diffuse, too distant, too uncertain and too ill-timed” to meaningfully contribute, as a top agency analyst put it in 2005.

Today we know that’s not true, especially in British Columbia, Washington and Oregon.

New research shows we could be collectively poised to pioneer a climate-friendly energy future for the globe — that renewable electricity can not only move Cascadia off of fossil fuels, but do so at an affordable price while creating some jobs along the way.

After decades of disinformation, this may sound like a wishful vision. But building a cleaner and more equitable economy — and doing so in just a few decades to head off the worst effects of climate change — is backed by a growing body of regional and international research.

Getting off fossil fuels is “feasible, necessary… and not very expensive” when compared to the earnings of the overall economy, said Jeffrey Sachs, an economist and global development expert at Columbia University.

Much of the confidence about the price tag comes down to this: Innovation and mass production have made wind and solar power installations cheaper than most fossil-fuelled power plants and today’s fastest-growing source of energy worldwide. The key to moving Cascadia’s economies away from fossil fuels, according to the latest research, is building more, prompting power companies to invest in carbon-free electricity as our go-to “fuel.”

However, doing that in time to help head off a cascading climatic crisis by mid-century means the region must take major steps in the next decade to speed the transition, researchers say. And that will require social buy-in.

The new research highlights three mutually supporting strategies that squeeze out fossil fuels:

Chefs and foodies are well-known fans of natural gas. Why, “Cooking with gas” is an expression for a reason. But one trendy Seattle restaurant-bar is getting by just fine with a climate-friendly alternative: electric induction cooktops.

Induction “burners” are just as controllable as gas burners and even faster to heat and cool, but produce less excess heat and zero air pollution. That made a huge difference to chef Stuart Lane’s predecessors when they launched Seattle cocktail bar Artusi 10 years ago.

Using induction meant they could squeeze more tables into the tight space available next door to Cascina Spinasse — their popular Italian restaurant in Seattle’s vibrant Capitol Hill neighborhood — and lowered the cost of expanding.

Rather than igniting a fossil fuel to roast the surface of pots and pans, induction burners generate a magnetic field that heats metal cookware from inside. For people at home, forgoing gas eliminates combustion by-products, which means fewer asthma attacks and other health impacts.

For Artusi, it eliminated the need for a pricey hood and fans to continuously pump fumes and heat out and pull fresh air in. That made induction the cheaper way to go, even though induction cooktops cost more than conventional gas ranges.

Over the years, they’ve expanded the menu because even guests who come for the signature Amari cocktails often stay for the handmade pasta, meatballs and seasonal sauces. So the initial pair of induction burners has multiplied to nine. Yet Artusi retains a cleaner, quieter and more intimate atmosphere. Yet thanks largely to the smaller fans, “it’s not as chaotic,” said Lane.

And Lane adds, it feels good to be cooking on electricity — which in Seattle proper is about 90 per cent renewable — rather than on a fossil fuel that produces climate-warming greenhouse gases. “You feel like you’re doing something right,” he said.

Lane says he wouldn’t be surprised if induction is the new normal for chefs entering the trade 10 years from now. “They probably would cook with gas and say, ‘Damn it’s hot in here!’” — Peter Fairley

This story is supported in part by a grant from the Fund for Investigative Journalism.

increasing energy efficiency to trim the amount of power we need,

boosting renewable energy to make it possible to turn off climate-wrecking fossil-fuel plants, and

plugging as much stuff as possible into the electrical grid.
Recent studies in B.C. and Washington state, and underway for Oregon, point to efficiency and electrification as the most cost-effective route to slashing emissions while maintaining lifestyles and maximizing jobs. A recent National Academies of Science study reached the same conclusion, calling electrification the core strategy for an equitable and economically advantageous energy transition, while abroad New Zealand's electrification push is asking whether electricity can replace fossil fuels in time.

However, technologies don’t emerge in a vacuum. The social and economic adjustments required by the wholesale shift from fossil fuels that belch climate-warming carbon emissions to renewable power can still make or break decarbonization, according to Jim Williams, a University of San Francisco energy expert whose simulation software tools have guided many national and regional energy plans, including two new U.S.-wide studies, a December 2020 analysis for Washington state and another in process for Oregon.

Williams points to vital actions that are liable to rile up those who lose money in the deal. Steps like letting trees grow many decades older before they are cut down, so they can suck up more carbon dioxide — which means forgoing quicker profits from selling timber. Or convincing rural communities and conservationists that they should accept power-transmission lines crossing farms and forests.

“It’s those kinds of policy questions and social acceptance questions that are the big challenges,” said Williams.

Washington, Oregon and B.C. already mandate growing supplies of renewable power and help cover the added cost of some electric equipment, and across the border efforts at cleaning up Canada's electricity are critical to meeting climate pledges. These include battery-powered cars, SUVs and pickups on the road. Heat pumps — air conditioners that run in reverse to push heat into a building — can replace furnaces. And, at industrial sites, electric machines can take the place of older mechanical systems, cutting costs and boosting reliability.

As these options drop in price they are weakening reliance on fossil fuels — even among professional chefs who’ve long sworn by cooking with gas (see sidebar: Cooking quick, clean and carbon-free).

“For each of the things that we enjoy and we need, there’s a pathway to do that without producing any greenhouse gas emissions,” said Jotham Peters, managing partner for Vancouver-based energy analysis firm Navius Research, whose clients include the B.C. government.


What the modelling tells us

Key to decarbonization planning for Cascadia are computer simulations of future conditions known as models. These projections take electrification and other options and run with them. Researchers run dozens of simulated potential future energy scenarios for a given region, tinkering with different variables: How much will energy demand grow? What happens if we can get 80 per cent of people into electric cars? What if it’s only 50 per cent? And so on.

Accelerating the transition requires large investments, this modelling shows. Plugging in millions of vehicles and heat pumps demands both brawnier and more flexible power systems, including more power lines and other infrastructure such as bridging the Alberta-B.C. electricity gap that communities often oppose. That demands both stronger policies and public acceptance. It means training and apprenticeships for the trades that must retrofit homes, and ensuring that all communities benefit — especially those disproportionately suffering from energy-related pollution in the fossil fuel era.

Consensus is imperative, but the new studies are bound to spark controversy. Because, while affordable, decarbonization is not free.

The Meikle Wind Project in BC’s Peace River region, the province’s largest, with 61 turbines producing 184.6 MW of electricity, went online in 2017. Photo: Pattern Development.
Projections for British Columbia and Washington suggest that decarbonizing Cascadia will spur extra job-stimulating growth. But the benefits and relatively low net cost mask a large swing in spending that will create winners and losers, and without policies to protect disadvantaged communities from potential energy cost increases, could leave some behind.

By 2030, the path to decarbonization shows Washingtonians buying about $5 billion less worth of natural gas, coal and petroleum products, while putting even more dollars toward cleaner vehicles and homes. No surprise then that oil and gas interests are attacking the new research.

And the research shows a likely economic speed bump around 2030. Economic growth would slow due to increased energy costs as economies race to make a sharp turn toward pollution reductions after nearly a decade of rising greenhouse gas emissions.

“Meeting that 2030 target is tough and I think it took everybody a little bit by surprise,” said Nancy Hirsh, executive director of the Seattle-based NW Energy Coalition, and co-chair of a state panel that shaped Washington’s recent energy supply planning.

But that’s not cause to ease up. Wait longer, says Hirsh, and the price will only rise.


Charging up

What most drives Cascadia’s energy models toward electrification is the dropping cost of renewable electricity.

Take solar energy. In 2010, no large power system in the world got more than three per cent of its electricity from solar. But over the past decade, solar energy’s cost fell more than 80 per cent, and by last year it was delivering over nine per cent of Germany’s electricity and over 19 per cent of California’s.

Government mandates and incentives helped get the trend started, and Canada's electricity progress underscores how costs continue to fall. Once prohibitively expensive, solar’s price now beats nuclear, coal and gas-fired power, and it’s expected to keep getting cheaper. The same goes for wind power, whose jumbo jet-sized composite blades bear no resemblance to the rickety machines once mocked by Big Oil.

In contrast, cleaning up gas- or coal-fired power plants by equipping them to capture their carbon pollution remains expensive even after decades of research and development and government incentives. Cost overruns and mechanical failures recently shuttered the world’s largest “low-carbon” coal-fired power plant in Texas after less than four years of operation.

Retrofits enabled this coal-fired plant in Texas to capture some of its carbon dioxide pollution, which was then injected into aging oil wells to revive production. But problems made the plant’s coal-fired power — which is being priced out by renewable energy — even less competitive and it was shut down after three years in 2020. Photo by NRG Energy.
Innovation and incentives are also making equipment that plugs into the grid cheaper. Electric options are good and getting better with a push from governments and a self-reinforcing cycle of performance improvement, mass production and increased demand.

Battery advances and cost cuts over the past decade have made owning an electric car cheaper, fuel included, than conventional cars. Electric heat pumps may be the next electric wave. They’re three to four times more efficient than electric baseboard heaters, save money over natural gas in most new homes, and work in Cascadia’s coldest zones.

Merran Smith, executive director of the Vancouver-based non-profit Clean Energy Canada, says that — as with electric cars five years ago — people don’t realize how much heat pumps have improved. “Heat pumps used to be big huge noisy things,” said Smith. “Now they’re a fraction of the size, they’re quiet and efficient.”

Electrifying certain industrial processes can also cut greenhouse gases at low cost. Surprisingly, even oil and gas drilling rigs and pipeline compressors can be converted to electric. Provincial utility BC Hydro is building new transmission lines to meet anticipated power demand from electrification of the fracking fields in northeastern British Columbia that supply much of Cascadia’s natural gas.


Simulating low-carbon living

The computer simulation tools guiding energy and climate strategies, unlike previous models that looked at individual sectors, take an economy-wide view. Planners can repeatedly run scenarios through sophisticated software, tinkering with their assumptions each time to answer cross-cutting questions such as: Should the limited supply of waste wood from forestry that can be sustainably removed from forests be burned in power plants? Or is it more valuable converted to biofuel for airplanes that can’t plug into the grid?

Evolved Energy Research, a San Francisco-based firm, analyzed the situation in Washington. Its algorithms are tuned using data about energy production and use today — down to the number and types of furnaces, stovetops or vehicles. It has expert assessments of future costs for equipment and fuels. And it knows the state’s mandated emissions targets.

Researchers run the model myriad times, simulating decisions about equipment and fuel purchases — such as whether restaurants stick with gas or switch to electric induction “burners” as their gas stoves wear out. The model finds the most cost-effective choices by homes and businesses that meet the state’s climate goals.

For Seattle wine bar Artusi, going with electric induction cooktops meant they could squeeze more tables into a tight, comfortable space. Standard burners cost less but would have required noisy, pricey fume hoods and fans to suck out the pollutants. For more, see sidebar. Photo: InvestigateWest.
Rather than accepting that optimal scenario and calling it a day, modellers account for uncertainty in their estimates of future costs by throwing in various additional constraints and rerunning the model.

That probing shows that longer reliance on climate-warming natural gas and petroleum fuels increases costs. In fact, all of the climate-protecting scenarios achieve Washington’s goals at relatively low cost, compared to the state’s historic spending on energy.

The end result of these scenarios are net-zero carbon emissions in 2050, echoing Canada's race to net-zero and the growing role of renewable energy, in which a small amount of emissions remaining are offset by rebounding forests or equipment that scrubs CO2 from the air.

But the seeds of that transformation must be sown by 2030. The scenarios identify common strategies that the state can pursue with low risk of future regrets.

One no brainer is to rapidly add wind and solar power to wring out CO2 emissions from Washington’s power sector. The projections end coal-fired power by 2025, as required by law, but also show that, with grid upgrades, gas-fired power plants that produce greenhouse gas emissions can stay turned off most of the time. That delivers about 16.2 million of the 44.8 million metric tons of CO2 emissions cut required by 2030 under state law.

All of the Washington scenarios also jack up electricity consumption to power cars and heating. By 2050, Washington homes and businesses would draw more than twice as much power from the grid as they did last year, meaning climate-friendly electricity is displacing climate-unfriendly gasoline, diesel fuel and natural gas. In the optimal case, electricity meets 98 per cent of transport energy in 2050, and over 80 per cent of building energy use.

By 2050, the high-electrification scenarios would create over 60,000 extra jobs across the state, as replacing old and inefficient equipment and construction of renewable power plants stimulates economic growth, according to projections from Washington, D.C.-based FTI Consulting. Scenarios with less electrification require more low-carbon fuels that cut emissions at higher cost, and thus create 15,000 to 35,000 fewer jobs.

Much of the new employment comes in middle-class positions — including about half of the total in construction — leading to big boosts in employment income. Washingtonians earn over $7 billion more in 2050 under the high-electrification scenarios, compared to a little over $5 billion if buildings stick with gas heating through 2050 and less than $2 billion with extra transportation fuels.


Rocketing to 2030

Evolved Energy’s electrification-heavy decarbonization pathways for Washington dovetail with a growing body of international research, such as that National Academy of Sciences report and a major U.S. decarbonization study led by Princeton University, and in Canada debates like Elizabeth May's 2030 renewable grid goal are testing feasibility. (See Grist’s 100 per cent Clean Energy video for a popularized view of similar pathways to slash U.S. carbon emissions, informed by Princeton modeller Jesse Jenkins.)

 

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California introduces new net metering regime

California NEM-3 Tariff ushers a successor Net Energy Metering framework, revising export compensation, TOU rates, and non-bypassable charges to balance ratepayer impacts, rooftop solar growth, and energy storage adoption across diverse communities.

 

Key Points

The CPUC's successor NEM policy redefining export credits and rates to sustain customer-sited solar and storage.

✅ Sets export compensation methodology beyond NEM 2.0

✅ Aligns TOU rates and non-bypassable charges with costs

✅ Encourages solar-plus-storage adoption and equity access

 

The California Public Utilities Commission (CPUC) has officially commenced its “NEM-3” proceeding, which will establish the successor Net Energy Metering (NEM) tariff to the “NEM 2.0” program in California. This is a highly anticipated, high-stakes proceeding that will effectively modify the rules for the NEM tariff in California, amid ongoing electricity pricing changes that affect residential rooftop solar – arguably the single most important policy mechanism for customer-sited solar over the last decade.

The CPUC’s recent order instituting rule-making (OIR) filing stated that “the major focus of this proceeding will be on the development of a successor to existing NEM 2.0 tariffs. This successor will be a mechanism for providing customer-generators with credit or compensation for electricity generated by their renewable facilities that a) balances the costs and benefits of the renewable electrical generation facility and b) allows customer-sited renewable generation to grow sustainably among different types of customers and throughout California’s diverse communities.”

This successor tariff proceeding was initiated by Assembly Bill 327, which was signed into law in October of 2013. AB 327 is best known as the legislation that directed the CPUC to create the “NEM 2.0” successor tariff, which was adopted by the CPUC in January of 2016.

The original Net Energy Metering program in California (“NEM 1.0”) effectively enabled full-retail value net metering “allowing NEM customers to be compensated for the electricity generated by an eligible customer-sited renewable resource and fed back to the utility over an entire billing period.” Under the NEM 2.0 tariff, customers were required to pay charges that aligned them more closely with non-NEM customer costs than under the original structure. The main changes adopted when the NEM 2.0 was implemented were that NEM 2.0 customer-generators must: (i) pay a one-time interconnection fee; (ii) pay non-bypassable charges on each kilowatt-hour of electricity they consume from the grid; and (iii) customers were required to transfer to a time-of-use (TOU) rate, with potential changes to electric bills for many customers.

NEM 2.0

The commencement of the NEM-3 OIR was preceded by the publishing of a 318-page Net Energy Metering 2.0 Lookback Study, which was published by Itron, Verdant Associates, and Energy and Environmental Economics. The CPUC-commissioned study had been widely anticipated and was expected to act as the starting reference point for the successor tariff proceeding. Verdant also hosted a webinar, which summarized the study’s inputs, assumptions, draft findings and results.

The study utilized several different tests to study the impact of NEM 2.0. The cost effectiveness analysis tests, which estimate costs and benefits attributed to NEM 2.0 include: (i) total resource cost test, (ii) participant cost test, (iii) ratepayer impact measure test, and (iv) program administrator test. The evaluation also included a cost of service analysis, which estimates the marginal cost borne by the utility to serve a NEM 2.0 customer.

The opening paragraph of the report’s executive summary stated that “overall, we found that NEM 2.0 participants benefit from the structure, while ratepayers see increased rates.” In every test that the author’s conducted the results generally supported this conclusion for residential customers. There were some exceptions in their findings. For example, in the cost of service analysis the report stated that “residential customers that install customer-sited renewable resources on average pay lower bills than the utility’s cost to serve them. On the other hand, nonresidential customers pay bills that are slightly higher than their cost of service after installing customer-sited renewable resources. This is largely due to nonresidential customer rates having demand charges (and other fixed fees), and the lower ratio of PV system size to customer load when compared to residential customers.”

Similar debates over solar rate design, including Massachusetts solar demand charges, highlight how demand charges and TOU decisions can affect customer economics.

NEM-3 timeline

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The preliminary schedule that the CPUC laid out in its OIR estimates that the proceeding will take roughly 15 months in total, starting with a November 2020 pre-hearing conference.

The real meat of the proceeding, where parties will present their proposals for what they believe the successor tariff should be, as the state considers revamping electricity rates to clean the grid, and really show their hand will not begin until the Spring of 2021. So we’re still a little ways away from seeing the proposals that the key parties to this proceeding, like the Investor Owned Utilities (PG&E, SCE, SDG&E), solar and storage advocates such as SEIA, CALSSA, Vote Solar, and ratepayer advocates like TURN) will submit.

While the outcome for the new successor NEM tariff is anyone’s guess at this point, some industry policy folks are starting to speculate. We think it is safe to assume that the value of exported energy will get reduced, with debates over income-based utility charges also influencing rate design. How much and the mechanism for how exports get valued remains to be seen. Based on the findings from the lookback study, it seems like the reduction in export value will be more severe than what happened when NEM 2.0 got implemented. In NEM 2.0, non-bypassable charges, which are volumetric charges that must be paid on all imported energy and cannot be netted-out by exports, only equated to roughly $0.02 to $0.03/kWh.

Given that the value of exports will almost certainly get reduced, we expect that to be bullish for energy storage as America goes electric and load shapes evolve. Energy storage attachment rates with solar are already steadily rising in California. By the time NEM-3 starts getting implemented, likely in 2022, we think storage attachment rates will likely escalate further.

We would not be surprised to see future storage attachment rates in California look like the Hawaiian market today, which are upwards of 80% for certain types of customers and applications. Two big questions on our mind are: (i) will the NEM 3.0 rules be different for different customer class: residential, CARE (e.g., low-income or disadvantaged communities), and commercial & industrial; (ii) will the CPUC introduce some sort of glidepath or phased in implementation approach?

The outcome of this proceeding will have far reaching implications on the future of customer-sited solar and energy storage in California. The NEM-3 outcome in California may likely serve as precedent for other states, as California exports its energy policies across the West, and utility territories that are expected to redesign their Net Energy Metering tariffs in the coming years.

 

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B.C. expands EV charging, leads country in going electric

BC EV Charging Network Funding accelerates CleanBC goals with new public fast-charging stations, supporting ZEV adoption, the Electric Highway, and rebates, lowering fuel costs and emissions across British Columbia under the Clean Transportation Action Plan.

 

Key Points

Funding to expand fast-charging stations, grow ZEV adoption, and advance CleanBC and the Electric Highway.

✅ $26M funds ~250 public fast-charging stations.

✅ Supports Electric Highway and remote access.

✅ Drives ZEV sales under CleanBC targets.

 

As British Columbians are embracing zero-emission vehicles faster than any other jurisdiction in Canada, the Province is helping them go electric with new incentives and $26 million in new funding for public charging stations.

“British Columbians are switching to clean energy and cleaner transportation in record numbers as part of our CleanBC plan and leading Canada in the transition to zero emission vehicles,” said Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation, on Tuesday. “The new funding we are announcing today to expand B.C.’s public charging network will help get more EVs on the road, reduce our reliance on fossil fuels, and lower fuel costs for people.”

The Province’s newly released annual report about zero-emission vehicles (ZEV) shows they represented 18.1% of new light-duty passenger vehicles sold in 2022 – the highest percentage for any province or territory. To support British Columbians’ transition to electric vehicles and to help industry lower its emissions, year-end funding of $26 million will go toward the CleanBC Public Charging Program for light-duty vehicle charging.

The new funding will support approximately 250 more public light-duty fast-charging stations, including stations to complete the B.C. Electric Highway, a CleanBC Roadmap to 2030 commitment that will make recharging easier in every corner of the province.

The 2022 ZEV Update report highlights CleanBC Go Electric rebates and programs that have helped drive growth in the number of electric vehicles in B.C. The number of registered light-duty EVs rose from 5,000 in 2016 to more than 100,000 today – a 1,900% increase in the past six years. Last year, 30,004 zero-emission vehicles were bought in B.C., beating the previous record of 24,263 in 2021.

In addition, the report outlines progress in the installation of public charging stations across British Columbia, supported by B.C. Hydro expansion, which now has one of the largest public charging networks in Canada, with more than 3,800 charging stations at the end of 2022. That compares to just 781 charging stations in 2016.

The CleanBC Roadmap to 2030, released in 2021, details a range of expanded actions to accelerate the switch to cleaner transportation, including strengthening the Zero-Emission Vehicles Act to require 26% of light-duty vehicle sales to be ZEV by 2026, 90% by 2030 and 100% by 2035 – five years ahead of the original target, and implementing the Clean Transportation Action Plan.

George Heyman, Minister of Environment and Climate Change Strategy, said: “Transportation accounts for about 40% of emissions in B.C., which is why we are committed to accelerating requirements for ZEVs and setting new standards for medium- and heavy-duty vehicles. To support this uptake, we continue to expand B.C.’s electric vehicle charging network, including faster EV charging options, with a target of having 10,000 public EV charging stations by 2030.”

Blair Qualey, President and CEO, New Car Dealers Association of BC, said: “B.C.’s new car dealers are proud to be involved in a true partnership that has been so instrumental in B.C. establishing and maintaining a leadership position in zero-emission vehicle adoption. Ongoing investments that continue to support the CleanBC Go Electric rebate program, including home and workplace charging rebates, and the availability of adequate charging infrastructure for consumers and businesses will be critical to the Province meeting its ZEV mandate targets, while also creating the promise of a greener and stronger economic future for British Columbians.”

Harry Constantine, President, Vancouver Electric Vehicle Association, said: “Expanding the buildout of the Electric Highway and establishing a network of charging stations are critical steps for moving the adoption of electric vehicles forward as demand ramps up across B.C. This stands to benefit all British Columbians, including remote communities. We are very pleased to see the Province investing in these measures.”

 

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World Bank helps developing countries wind spurt

World Bank Offshore Wind Investment drives renewables and clean energy in developing countries, funding floating turbines and shallow-water foundations to replace fossil fuels, expand grids, and scale climate finance across Latin America, Africa, and Asia.

 

Key Points

A World Bank program funding offshore wind to speed clean power, cut fossil fuels, and expand grids in emerging markets.

✅ US$80bn to 565 onshore wind projects since 1995

✅ Pilot funds offshore wind in Asia, Africa, Latin America

✅ Floating turbines and shallow-water foundations enable deep resources

 

Europe and the United States now accept onshore wind power as the cheapest way to generate electricity, and U.S. lessons from the U.K. are informing policy discussions. But this novel technology still needs subsidising before some developing countries will embrace it. Enter the World Bank.

A total of US$80 billion in subsidies from the Bank has gone over 25 years to 565 developing world onshore wind projects, to persuade governments to invest in renewables rather than rely on fossil fuels.

Central and Latin American countries have received the lions share of this investment, but the Asia Pacific region and Eastern Europe have also seen dozens of Bank-funded developments. Now the fastest-growing market is in Africa and the Middle East, where West African hydropower support can complement variable wind resources.

But while continuing to campaign for more onshore wind farms, the World Bank in 2019 started encouraging target countries to embrace offshore wind as well. This uses two approaches: turbines in shallow water, which are fixed to the seabed, and also a newer technology, involving floating turbines anchored by cables at greater depth.

The extraordinary potential for offshore wind, which is being commercially developed very fast in Europe, including the UK's offshore expansion, China and the U.S. offshore wind sector today as well, is now seen by the Bank as important for countries like Vietnam which could harness enough offshore wind power to provide all its electricity needs.

Other countries it has identified with enormous potential for offshore wind include Brazil, Indonesia, India, the Philippines, South Africa and Sri Lanka, all of them countries that need to keep building more power stations to connect every citizen to the national grid.

The Bank began investing in wind power in 1995, with its spending reaching billions of dollars annually in 2011. The biggest single recipient has been Brazil, receiving US$24.2 bn up to the end of 2018, 30 per cent of the total the Bank has invested worldwide.

Many private companies have partnered with the Bank to build the wind farms. The biggest single beneficiary is Enel, the Italian energy giant, which has received US$6.1 bn to complete projects in Brazil, Mexico, South Africa, Romania, Morocco, Bulgaria, Peru, and Russia.

Among the countries now benefitting from the Banks continuing onshore wind programme are Egypt, Morocco, Senegal, Jordan, Vietnam, Thailand, Indonesia and the Philippines.

Offshore wind now costs less than nuclear power, and global costs have fallen enough to compete in most countries with fossil fuels. Currently the fastest-growing industry in the world, it continued to grow despite Covid-19 across most markets.

Persistent coal demand

Particularly in Asia, some countries are continuing to burn large quantities of coal and are considering investing in yet more fossil fuel generation unless they can be persuaded that renewables are a better option, with an offshore wind $1 trillion outlook underscoring the scale.

Last year the World Bank began a pilot scheme to explore funding investment in offshore wind in these countries. Launching the scheme Riccardo Puliti, a senior director at the Bank, said: Offshore wind is a clean, reliable and secure source of energy with massive potential to transform the energy mix in countries that have great wind resources.

We have seen it work in Europe we can now make use of global experience to scale up offshore wind projects in emerging markets.

Using data from the Global Wind Atlas, the Bank calculated that developing countries with shallow waters like India, Turkey and Sri Lanka had huge potential with fixed turbines, while others the Philippines and South Africa, for example would need floating foundations to reach greater depths, up to 1,000 metres.

For countries like Vietnam, with a mix of shallow and deep water, wind power could solve their entire electricity needs. In theory offshore wind power could produce ten times the amount of electricity that the country currently gets from all its current power stations, the Bank says.

 

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Arvato commissions first solar power plant

Arvato Ontario Solar Power Plant advances sustainability with rooftop photovoltaic panels, PPA financing, and green electricity, generating 800,000 kWh annually to cut logistics emissions, reduce energy costs, and support carbon-neutral supply chain operations.

 

Key Points

A rooftop PV system under a PPA, supplying low-cost green power to Arvato's Ontario, CA distribution center.

✅ 1,160 panels produce 800,000 kWh of renewable power yearly

✅ PPA model avoids upfront costs and lowers electricity rates

✅ Cuts center emissions by 72%; 45% roof coverage

 

Arvato continues to invest consistently in the sustainability of its distribution centers. To this end, the first solar power plant in the focus market has now been commissioned on the roof of the distribution center in Ontario, California. The solar power plant has 1,160 solar panels and generates more than 800,000 kilowatt hours (kWh) of green electricity annually. This reduces electricity costs and, with advances in battery storage, further cuts the logistics center's greenhouse gas emissions. Previously, the international supply chain and e-commerce service provider had converted five other distribution centers in the USA to green electricity.

The project started as early as November 2019 with an intensive site investigation. An extensive catalogue of measures and criteria had to be worked through to install and commission the solar power plant on the roof system. After a rigorous process involving numerous stakeholders, the new solar modules were installed in August 2022, similar to utility-scale deployments like the largest solar array in Washington seen recently. However, further approvals and permits were required before the solar system could be officially commissioned, a common step for solar power plants worldwide. Once official permission for the operation was granted, the switch could be flipped in February 2023, and production of environmentally friendly solar electricity could begin.

The photovoltaic system is operated under a Purchase Power Agreement (PPA), a model widely used in corporate renewable energy projects today. This unique financing mechanism is available in twenty-six U.S. states, including California. While a third-party developer installs, owns and operates the solar panels, Arvato purchases the electricity generated. This allows companies in the U.S. to support clean energy projects while buying low-cost electricity without having to finance upfront costs. "The PPA and the resulting benefits were quite critical to the success of this project," says Christina Greenwell, Microsoft AOC F&L Client Services Manager at Arvato, who managed the project from start to finish. "It allows us to reduce our electricity costs while supporting Bertelsmann's ambitious goal of becoming carbon neutral by 2030."

The 1,160 solar panels were added to an existing system of 920 panels owned by the logistics center's landlord. In total, the panels now cover 45 percent of the roof space at the Ontario distribution center. The emissions generated by the distribution center are now reduced by 72 percent with the new solar panels and clean power generation. As Bertelsmann plans to switch all its sites worldwide to 100 percent green electricity, renewable energy certificates will, as seen when Bimbo Canada signed agreements to offset 100 percent of its electricity for its operations, offset the remaining emissions.

"The new solar power plant is a significant step on our path to carbon neutrality and demonstrates our commitment to finding innovative solutions that reduce our carbon footprint," said Mitat Aydindag, President of North America at Arvato. "All employees at the site are pleased that our Ontario distribution center is now a pioneer and is providing effective support in achieving our ambitious climate goal in 2030."

Similar facility-level efforts include the Bright Feeds Berlin solar project underscoring momentum across industrial operations.

 

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