New Mexico Governor to Sign 100% Clean Electricity Bill ‘As Quickly As Possible’


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New Mexico Energy Transition Act advances zero-carbon electricity, mandating public utilities deliver carbon-free electricity by 2045, with renewable targets of 50 percent by 2030 and 80 percent by 2040 to accelerate grid decarbonization.

 

Key Points

A state law requiring utilities to deliver carbon-free electricity by 2045, with 2030 and 2040 renewable targets.

✅ 100 percent carbon-free power from utilities by 2045

✅ Interim renewable targets: 50 percent by 2030, 80 percent by 2040

✅ Aligns with clean energy commitments in HI, CA, and DC

 

The New Mexico House of Representatives passed the Energy Transition Act Tuesday afternoon, sending the carbon-free electricity bill, a move aligned with proposals for a Clean Electricity Standard at the federal level, to Gov. Michelle Lujan Grisham.

Her opinions on it are known: she campaigned on raising the share of renewable energy, a priority echoed in many state renewable ambitions nationwide, and endorsed the ETA in a recent column.

"The governor will sign the bill as quickly as possible — we're hoping it is enrolled and engrossed and sent to her desk by Friday," spokesperson Tripp Stelnicki said in an email Tuesday afternoon.

Once signed, the legislation will commit the state to achieving zero-carbon electricity from public utilities by 2045. The bill also imposes interim renewable energy targets of 50 percent by 2030 and 80 percent by 2040, similar to Minnesota's 2040 carbon-free bill in its timeline.

The Senate passed the bill last week, 32-9. The House passed it 43-22.

The legislation would enter New Mexico into the company of Hawaii, California, where climate risks to grid reliability are shaping policy, and Washington, D.C., which have committed to eliminating carbon emissions from their grids. A dozen other states have proposed similar goals. Meanwhile, the Green New Deal resolution has prompted Congress to discuss the bigger task of decarbonizing the nation overall.

Though grid decarbonization has surged in the news cycle in recent months, even as some states consider moves in the opposite direction, such as a Wyoming bill restricting clean energy that would limit utility choices, New Mexico's bill arose from a years-long effort to rally stakeholders within the state's close-knit political community.

 

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California Faces Power Outages and Landslides Amid Severe Storm

California Storm Outages and Landslides strain utilities, trigger flooding, road closures, and debris flows, causing widespread power cuts and infrastructure damage as emergency response teams race to restore service, clear slides, and support evacuations.

 

Key Points

California Storm Outages and Landslides are storm-driven power cuts and slope failures disrupting roads and utilities.

✅ Tens of thousands face prolonged power outages across regions

✅ Landslides block highways, damage property, hinder access

✅ Crews restore grids, clear debris, support shelters and evacuees

 

California is grappling with a dual crisis of power outages and landslides following a severe storm that has swept across the state. The latest reports indicate widespread disruptions affecting thousands of residents and significant infrastructure damage. This storm is not only a test of California's emergency response capabilities but also a stark reminder of the increasing vulnerability of the state to extreme weather events, and of the U.S. electric grid in the face of climate stressors.

Storm’s Impact on California

The recent storm, which hit California with unprecedented intensity, has unleashed torrential rain, strong winds, and widespread flooding. These severe weather conditions have overwhelmed the state’s infrastructure, leading to significant power outages that are affecting numerous communities. According to local utilities, tens of thousands of homes and businesses are currently without electricity. The outages have been exacerbated by the combination of heavy rain and gusty winds, which have downed power lines and damaged electrical equipment.

In addition to the power disruptions, the storm has triggered a series of landslides across various regions. The combination of saturated soil and intense rainfall has caused several hillside slopes to give way, leading to road closures and property damage. Emergency services are working around the clock to address the aftermath of these landslides, but access to affected areas remains challenging due to blocked roads and ongoing hazardous conditions.

Emergency Response and Challenges

California’s emergency response teams are on high alert as they coordinate efforts to manage the fallout from the storm. Utility companies are deploying repair crews to restore power as quickly as possible, but the extensive damage to infrastructure means that some areas may be without electricity for several days. The state’s Department of Transportation is also engaged in clearing debris from landslides and repairing damaged roads to ensure that emergency services can reach affected communities.

The response efforts are complicated by the scale of the storm’s impact. With many areas experiencing both power outages and landslides, the logistical challenges are immense. Emergency shelters have been set up to provide temporary refuge for those displaced by the storm, but the capacity is limited, and there are concerns about overcrowding and resource shortages.

Community and Environmental Implications

The storm’s impact on local communities has been profound. Residents are facing not only the immediate challenges of power outages and unsafe road conditions but also longer-term concerns about recovery and rebuilding. Many individuals have been forced to evacuate their homes, and local businesses are struggling to cope with the disruption.

Environmental implications are also significant. The landslides and flooding have caused considerable damage to natural habitats and have raised concerns about water contamination and soil erosion. The impact on the environment could have longer-term consequences for the state’s ecosystems and water supply.

Climate Change and Extreme Weather

This storm underscores a growing concern about the increasing frequency and intensity of extreme weather events linked to climate change. California has been experiencing a rise in severe weather patterns, including intense storms, prolonged droughts, and extreme heat waves that strain the grid. These changes are putting additional strain on the state’s infrastructure and emergency response systems.

Experts have pointed out that while individual storms cannot be directly attributed to climate change, the overall trend towards more extreme weather is consistent with scientific predictions. As such, there is a pressing need for California to invest in infrastructure improvements and resilience measures, and to consider accelerating its carbon-free electricity mandate to better withstand future events.

Looking Ahead

As California deals with the immediate aftermath of this storm, attention will turn to recovery and rebuilding efforts. The state will need to address the damage caused by power outages and landslides while also preparing for future challenges posed by climate change.

In the coming days, the focus will be on restoring power, clearing debris, and providing support to affected communities. Long-term efforts will likely involve reassessing infrastructure vulnerabilities, improving emergency response protocols, and investing in climate resilience measures across the grid.

 

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NY Governor Cuomo Announces Green New Deal Included in 2019 Executive Budget

New York Green New Deal accelerates clean energy and climate action, targeting carbon neutrality with renewable energy, offshore wind, solar, energy storage, and green jobs while advancing environmental justice and economy-wide decarbonization.

 

Key Points

New York's plan for 100% clean power by 2040 and 70% renewables by 2030, with a just transition and green jobs.

✅ 100% carbon-free electricity by 2040; 70% renewables by 2030

✅ 9,000 MW offshore wind and 3,000 MW energy storage targets

✅ Just transition focuses on jobs, equity, and affordability

 

New York Governor Andrew M. Cuomo announced the Green New Deal, a nation-leading clean energy and jobs agenda that will aggressively put New York State on a path to net-zero electricity and economy-wide carbon neutrality, is included in the 2019 Executive Budget. The landmark plan provides for a just transition to clean energy that spurs growth of the green economy and prioritizes the needs of low- to moderate-income New Yorkers.

"Climate change is a reality, and the consequences of delay are a matter of life and death. We know what we must do. Now we have to have the vision, the courage, and the competence to get it done," Governor Cuomo said. "While the federal government shamefully ignores the reality of climate change and fails to take meaningful action, we are launching the first-in-the-nation Green New Deal to seize the potential of the clean energy economy, set nation's most ambitious goal for carbon-free power, and ultimately eliminate our entire carbon footprint."

During Governor Cuomo's first two terms, New York banned fracking of natural gas, committed to phasing out coal power by 2020, mandated 50 percent renewable power by 2030, and established the U.S. Climate Alliance to uphold the Paris Agreement, reflecting the view that decarbonization is irreversible under a clean energy economy. Under the Reforming the Energy Vision agenda, New York has held the largest renewable energy procurements in U.S. history, solar has increased nearly 1,500 percent, and offshore wind is poised to transform the State's electricity supply to be cleaner and more sustainable. Through Governor Cuomo's Green New Deal, New York will take the bold next steps to secure a clean energy future that protects the environment for generations to come while growing the clean energy economy.

 

100 Percent Clean Power by 2040 Coupled with New Nation-leading Renewable Energy Mandates

The Green New Deal will statutorily mandate New York's power be 100 percent carbon-free by 2040, the most aggressive goal in the United States and five years ahead of a target recently adopted by California state policymakers. The cornerstone of this new mandate is a significant increase of New York's successful Clean Energy Standard mandate from 50 percent to 70 percent renewable electricity by 2030. This globally unprecedented ramp-up of renewable energy will include:

  • Quadrupling New York's offshore wind target to 9,000 megawatts by 2035, up from 2,400 megawatts by 2030
  • Doubling distributed solar deployment to 6,000 megawatts by 2025, up from 3,000 megawatts by 2023
  • More than doubling new large-scale land-based wind and solar resources through the Clean Energy Standard
  • Maximizing the contributions and potential of New York's existing renewable resources
  • Deploying 3,000 megawatts of energy storage by 2030, up from 1,500 megawatts by 2025
  • Develop an Implementation Plan to Make New York Carbon Neutral

The Green New Deal will create the State's first statutory Climate Action Council, comprised of the heads of relevant State agencies and other workforce, environmental justice, and clean energy experts to develop a comprehensive plan to make New York carbon neutral by significantly and cost-effectively reducing emissions from all major sources, including electricity, transportation, buildings, industry, commercial activity, and agriculture. The Climate Action Council will consider a range of possible options, including the feasibility of working with the U.S. Climate Alliance to create a new multistate emissions reduction program that covers all sectors of the economy, including transportation and industry, and exploring ways to leverage the successful Regional Greenhouse Gas Initiative to drive transformational investment in the clean energy economy and support a just transition.

At the national level, a historic climate deal is reshaping incentives and standards for clean energy deployment across the country.

The Green New Deal will also include an ambitious strategy to move New York's statewide building stock to carbon neutrality. The agenda includes:

Advancing legislative changes to strengthen building energy codes and establish appliance efficiency standards

Directing State agencies to ensure that their facilities uphold the strongest energy efficiency and sustainability standards

Developing a Net Zero Roadmap to chart a course to statewide carbon neutrality in buildings

A Multibillion Dollar Green New Deal Investment in the Clean Tech Economy that will Reduce Greenhouse Gas Emissions

Demonstrating New York's immediate commitment to implementing the nation's most ambitious clean energy agenda and creating high-quality clean energy jobs, Governor Cuomo is announcing $1.5 billion in competitive awards to support 20 large-scale solar, wind and energy storage projects across upstate New York. These investments will add over 1,650 megawatts of capacity and generate over 3,800,000 megawatt-hours of renewable energy annually - enough to power nearly 550,000 homes and create over 2,600 short and long-term jobs. Combined with the renewable energy projects previously announced under the Clean Energy Standard, New York has now awarded more than $2.9 billion to 46 projects statewide, enough to power over one million households.

The Green New Deal also includes new investments to jumpstart New York's offshore wind energy industry and support the State's world-leading target of 9,000 megawatts by 2035. New York will invest up to $200 million in port infrastructure to match private sector investment in regional development of offshore wind. This multi-location investment represents the nation's largest infrastructure commitment to offshore wind and solidifies New York's position as the hub of the burgeoning U.S. offshore wind industry.

These new investments build upon a $250 million commitment to electric vehicle infrastructure by the New York Power Authority's EVolve program, $3.5 billion in private investment in distributed solar driven by NYSERDA's NY-Sun program, and NY Green Bank transactions mobilizing nearly $1.75 billion in private capital for clean energy projects.

 

A Just Transition to a Clean Energy Economy

Deliver Climate Justice for Underserved Communities: The Green New Deal will help historically underserved communities prepare for a clean energy future and adapt to climate change by:

Giving communities a seat at the table by codifying the Environmental Justice and Just Transition Working Group into law and incorporating it into the planning process for the Green New Deal's implementation.

Directing the State's low-income energy task force to identify reforms to achieve greater impact of the public energy funds expended each year in order to increase the effect of funds and initiatives that target energy affordability to underserved communities.

Directing each of the State's ten Regional Economic Development Councils to develop an environmental justice strategy for their region.

Finance a Property Tax Compensation Fund to Help Communities Transition to the Clean Energy Economy: Governor Cuomo is introducing legislation to finance the State's $70 million Property Tax Compensation Fund to continue helping communities directly affected by the transition away from dirty and obsolete energy industries and toward the new clean energy economy. Specifically, this funding will protect communities impacted by the retirement of conventional power generation facilities.

Protect Labor Rights: To ensure creation of high-quality clean energy jobs, large-scale renewable energy projects supported by the Green New Deal will require prevailing wage, and the State's offshore wind projects will be supported by a requirement for a Project Labor Agreement.

Develop the Clean Tech Workforce: To prepare New York's workforce for the transition, New York State will take new steps to support workforce development, including establishing a New York State Advisory Council on Offshore Wind Economic and Workforce Development, as well as investing in an offshore wind training center that will provide New Yorkers with the skills and safety training required to construct this clean energy technology in New York.   

Richard Kauffman, Chairman of Energy and Finance for New York, said, "Governor Cuomo's Green New Deal will advance New York State further into the clean energy future, and we won't let the Trump Administration push us backwards. Governor Cuomo's new commitments ensure New York is the undisputed national clean energy and climate leader, and we will continue to build upon the foundations of the REV agenda to achieve a sustainable economy and healthy environment for generations of New Yorkers to come."

Alicia Barton, President and CEO, NYSERDA, said, "Climate scientists have made frighteningly clear that averting the worst effects of climate change will require bold action, not incremental steps, and Governor Cuomo's Green New Deal boldly goes where no others have before. His unwavering climate agenda includes the most aggressive clean energy target in U.S. history, the largest commitments to renewable energy and to offshore wind in the nation, a massive mobilization of clean energy jobs and an unprecedented investment in offshore wind port infrastructure. Together these actions make New York the clear national leader in the fight against climate change, and will show the world that New York can and will achieve a clean energy future for the sake of future generations."

DEC Commissioner Basil Seggos said, "The threat of climate change calls for bold action like Governor Cuomo's comprehensive agenda to make New York State carbon neutral. The Green New Deal ensures New York is continuing our nation-leading efforts to capitalize on the economic potential of the clean energy economy, while making sure those most vulnerable to climate change are benefitting from the state's efforts and investments. I look forward to working with my agency and authority partners on the Climate Action Council to develop and implement meaningful solutions to reduce greenhouse gas emissions from all sectors of our economy."  

John B. Rhodes, CEO, Department of Public Service, said, "With this nation-leading Green New Deal, Governor Cuomo puts New York on the path to fully clean electricity and to carbon neutrality with the strongest renewable energy goals in the nation. This will deliver the energy system that New York needs - cost-effective, reliable, and 100% clean.”

 

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B.C. Streamlines Regulatory Process for Clean Energy Projects

BCER Renewable Energy Permitting streamlines single-window approvals for wind, solar, and transmission projects in BC, cutting red tape, aligning with CleanBC, and accelerating investment, Indigenous partnerships, and low-carbon infrastructure growth provincewide.

 

Key Points

BC's single-window framework consolidates approvals for wind, solar, and transmission to accelerate energy projects.

✅ Single-window permits via BC Energy Regulator (BCER)

✅ Covers wind, solar, and high-voltage transmission lines

✅ Aligns with CleanBC, supports Indigenous partnerships

 

In a decisive move to bolster clean energy initiatives, the government of British Columbia (B.C.) has announced plans to overhaul the regulatory framework governing renewable energy projects. This initiative aims to expedite the development of wind, solar, and other renewable energy sources, positioning B.C. as a leader in sustainable energy production.

Transitioning Regulatory Authority to the BC Energy Regulator (BCER)

Central to this strategy is the proposed legislation, set to be introduced in spring 2025, which will transfer the permitting and regulatory oversight of renewable energy projects, aligning with offshore wind regulation plans at the federal level, from multiple agencies to the BC Energy Regulator (BCER). This transition is designed to create a "single-window" permitting process, simplifying approvals and reducing bureaucratic delays for developers.

Expanding BCER's Mandate

Historically known as the British Columbia Oil and Gas Commission, the BCER's mandate has evolved to encompass a broader range of energy projects. The upcoming legislation will empower the BCER to oversee renewable energy projects, including wind and solar, as well as high-voltage transmission lines like the North Coast Transmission Line (NCTL), in step with renewable transmission planning efforts elsewhere in North America. This expansion aims to streamline the regulatory process, providing developers with a single point of contact throughout the project lifecycle.

Economic and Environmental Implications

The restructuring is expected to unlock significant economic opportunities. Projections suggest that the streamlined process could attract between $5 billion and $6 billion in private investment and complement recent federal grid modernization funding initiatives, generating employment opportunities and fostering economic growth. Moreover, by facilitating the rapid deployment of renewable energy projects, B.C. aims to enhance its clean energy capacity, contributing to global sustainability goals.

Strengthening Partnerships with Indigenous Communities

A pivotal aspect of this initiative is the emphasis on collaboration with Indigenous communities. The government has highlighted the importance of engaging First Nations in the development process, ensuring that projects are not only environmentally sustainable but also socially responsible. This approach seeks to honor Indigenous rights and knowledge, fostering partnerships that benefit all stakeholders.

Supporting Infrastructure Development

The acceleration of renewable energy projects necessitates corresponding infrastructure enhancements. The NCTL, for instance, is crucial for meeting the increased electricity demand from sectors such as mining, port electrification, and hydrogen production, and for addressing regional grid constraints that limit renewable integration. By improving the transmission infrastructure, B.C. aims to support the growing energy needs of these industries while promoting clean energy solutions.

Aligning with CleanBC Objectives

This regulatory overhaul aligns seamlessly with B.C.'s CleanBC initiative, which sets ambitious targets for reducing greenhouse gas emissions and promoting energy efficiency, and supports Canada's goal of zero-emissions electricity by 2035 under active consideration. By removing regulatory barriers and expediting project approvals, the government aims to accelerate the transition to a low-carbon economy, positioning B.C. as a hub for clean energy innovation.

Addressing Potential Challenges

While the initiative has been lauded for its potential, experts caution that careful consideration must be given to environmental assessments and Indigenous consultation processes, as well as to lessons from Alberta's solar expansion challenges on land use and grid impacts. Ensuring that projects meet environmental standards and respect Indigenous rights is crucial for the long-term success and acceptance of renewable energy developments.

The proposed changes mark a significant shift in B.C.'s approach to energy development, reflecting a commitment to sustainability and economic growth. As the legislation moves through the legislative process, stakeholders across the energy sector are closely monitoring developments, particularly as Alberta ends its renewables moratorium and resumes project approvals across the Prairies, anticipating a more efficient and transparent regulatory environment that supports the rapid expansion of renewable energy projects.

B.C.'s plan to streamline the regulatory process for clean energy projects represents a bold step toward a sustainable and prosperous energy future. By consolidating regulatory authority under the BCER, fostering Indigenous partnerships, and aligning with broader environmental objectives, the province is setting a precedent for effective governance in the transition to renewable energy.

 

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Renewable growth drives common goals for electricity networks across the globe

Energy Transition Grid Reforms address transmission capacity, interconnection, congestion management, and flexibility markets, enabling renewable integration and grid stability while optimizing network charges and access in Australia, Ireland, and Great Britain.

 

Key Points

Measures to expand transmission, boost flexibility, and manage congestion for reliable, low-carbon electricity systems.

✅ Transmission upgrades and interconnectors ease congestion

✅ Flexible markets, DER, and storage bolster grid stability

✅ Evolving network charges and access incentivize siting

 

Electricity networks globally are experiencing significant increases in the volume of renewable capacity as countries seek to decarbonise their power sectors, even as clean energy's 'dirty secret' highlights integration trade-offs, without impacting the security of supply. The scale of this change is creating new challenges for power networks and those responsible for keeping the lights on.

The latest insight paper from Cornwall Insight – Market design amidst global energy transition – looks into this issue. It examines the outlook for transmission networks, and how legacy design and policies are supporting decarbonisation, aligning with IRENA findings on renewables and shaping the system. The paper focuses on three key markets; Australia, Ireland and Great Britain (GB).

Australia's main priority is to enhance transmission capacity and network efficiency; as concerns over excess solar risking blackouts grow in distribution networks, without this, the transmission system will be a barrier to growth for decentralised flexibility and renewables. In contrast, GB and Ireland benefit from interconnection with other national markets. This provides them with additional levers that can be pulled to manage system security and supply. However, they are still trying to hone and optimise network flexibility in light of steepening decarbonisation objectives.

Unsurprisingly, renewable energy resources have been growing in all three markets, with Ireland regarded as a leader in grid integration, with this expected to continue for the foreseeable future. Many of these projects are often located in places where network infrastructure is not as well developed, creating pressure on system operation as a result.

In all three markets, unit charges are rising, driven by a reduced charging base as decentralised energy grows quickly. This combination of changes is leading to network congestion, a challenge mirrored by the US grid overhaul for renewables underway, as transmission network development struggles to keep up, and flexibility markets are being optimised and changed.

In summary, reforms are on-going in each jurisdiction to accommodate the rapid physical transformation of the generation mix. Each has its objectives and tensions which are reflective of wider global reform programmes being undertaken in most developed, liberalised and decarbonising energy markets.

Gareth Miller, CEO of Cornwall Insight, said: “Despite differences in market design and characteristics, all three markets are grappling with similar issues, that comes from committing to deep decarbonisation. This includes the most appropriate methods for charging for networks, managing access to them and dealing with issues such as network congestion and constraint.

“In all three countries, renewable projects are often placed in isolated locations, as seen in Scotland where more pylons are needed to keep the lights on, away from the traditional infrastructure that is closer to demand. However, as renewable growth is set to continue, the networks will need to transition from being demand-centric to more supply orientated.

“Both system operators and stakeholders will need to continually evaluate their market structures and designs to alleviate issues surrounding locational congestion and grid stability. Each market is at very different stages in the process in trying to improve any problems implementing solutions to allow for higher efficiencies in renewable energy integration.

“It is uncertain whether any of the proposed changes will fundamentally resolve the issues that come with increased renewables on the system. However, despite marked differences, they certainly could all learn from each other and elements of their network arrangements, as well as from US decarbonisation strategies research.”

 

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Energy prices trigger EU inflation, poor worst hit

EU Energy Price Surge is driving up electricity and gas costs, inflation, and cost of living across the EU, prompting tax cuts, price caps, subsidies, and household support measures in France, Italy, Spain, and Germany.

 

Key Points

A surge in EU gas and electricity costs driving inflation and prompting government subsidies, tax cuts, and price caps.

✅ Low-income EU households now spend 50-70 percent more on energy.

✅ Governments deploy tax cuts, price caps, and direct subsidies.

✅ Gas-dependent power markets drive electricity price spikes.

 

Higher energy prices, including for natural gas, are pushing up electricity prices and the cost of living for households across the EU, prompting governments to cut taxes and provide financial support to the tune of several billion euros.

In the United Kingdom, households are bracing for high winter energy bills this season.

A series of reports published by Cambridge Econometrics in October and November 2022 found that households in EU countries are spending much more on energy than in 2020 and that governments are spending billions of euros to help consumers pay bills and cut taxes.

In France, for example, the poorest households now spend roughly one-third more on energy than in 2020. Between August 2020 and August 2022, household energy prices increased by 37 percent, while overall inflation increased by 9.2 percent.

“We estimate that the increase in household energy prices make an average French household €410 worse off in 2022 compared to 2020, mostly due to higher gas prices,” said the report.

In response to rising energy prices, the French government has adopted price caps and support measures forecast to cost over €71 billion, equivalent to 2.9 percent of French GDP, according to the U.K.-based consultancy.

In Italy, fossil fuels alone were responsible for roughly 30 percent of the country’s annual rate of inflation during spring 2022, according to Cambridge Econometrics. Unlike in other European countries, retail electricity prices have outpaced other energy prices in Italy and were 112 percent higher in July 2022 than in August 2020, the report found. Over the same time period, retail petrol prices were up 14 percent, diesel up 22 percent, and natural gas up 42 percent.

We estimate that households in the lowest-income quintile now spend about 50 percent more on energy than in 2020.

“We estimate that before government support, an average Italian household will be spending around €1,400 more on energy and fuel bills this year than in 2020,” the report said. “Low-income households are worse affected by the increasing energy prices: we estimate that households in the lowest-income quintile now spend about 50 percent more on energy than in 2020.”

Electricity production in Italy is dominated by natural gas, which has also led to a spike in wholesale electricity prices. In 2010, natural gas accounted for 50 percent of all electricity production. The share of natural gas fell to 33 percent in 2014, but then rose again, reaching 48 percent in 2021, and 56 percent in the first half of 2022, according to the report, as gas filled the gap of record low hydro power production in 2022.

In Spain, where electricity prices have seen extreme spikes, low-income households are now spending an estimated 70% more on energy than in 2020, according to Cambridge Econometrics.


Low-income squeeze
In Spain, low-income households are now spending an estimated 70% more on energy than in 2020, according to Cambridge Econometrics. It noted that the Spanish government has intervened heavily in energy markets by cutting taxes, introducing cash transfers for households, and capping the price of natural gas for power generators. The latter has led to lower electricity prices than in many other EU countries.

These support measures are forecast to cost the Spanish government over €35 billion, equivalent to nearly 3 percent of Spain’s GDP. Yet consumers will still feel the burden of higher costs of living, and rolling back electricity prices may prove difficult in the near term.

In March, electricity prices alone were responsible for 45 percent of year-on-year inflation in Spain but prices have since fallen as a result of government intervention, Cambridge Econometrics said. Between May and July, fossil fuels prices accounted for 19-25 percent of the overall inflation rate, and electricity prices for 16 percent.


Support measures
Rising inflation is also a real challenge in Germany, Europe’s largest economy, where German power prices have surged this year, adding pressure. Also there, higher gas prices are to blame.

“We estimate that the increase in energy prices currently make an average household €735 worse off in 2022 compared to 2020, mostly due to higher gas prices,” Cambridge Econometrics said, in a report focused on Germany.

The German government has introduced a number of support measures in order to help households, businesses and industry to pay energy bills, amid rising heating and electricity costs for consumers, including price caps that are expected to take effect in March next year. Moreover, households’ energy bills for December this year will be paid by the state. According to the report, these interventions will mitigate the impact of higher prices “to some extent”, but the aid measures are forecast to cost the government nearly 5 percent of GDP.


Fossil-fuel effect
In addition to gas, higher coal prices have also pushed up inflation in some countries, and U.S. electricity prices have reached multi-decade highs as inflation endures.

In Poland, which is heavily dependent on coal for electricity generation, fossil fuels accounted for roughly 40 percent of Poland’s overall year-on-year inflation rate in June 2022, which stood at over 14 percent, the consultancy said.

The price of household coal, which is widely used in heating Polish homes, increased by 157 percent between August 2021 and August 2022.

Higher energy prices in Poland are partly due to Polish and EU sanctions against Russian gas and coal. Other drivers are the weakening of the Polish zloty against the U.S. dollar and the euro, and the uptick in global demand after COVID-19 lockdowns, said Cambridge Econometrics.

Electricity prices have risen at a much slower pace than energy for transport and heating, with an annualized increase of 5.1 percent.

 

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Octopus Energy and Ukraine's DTEK enter Energy Talks

Octopus Energy and DTEK Partnership explores licensing the Kraken platform to rebuild Ukraine's power grid, enabling real-time analytics, smart-home integration, renewable energy orchestration, and distributed resilience amid ongoing attacks on critical energy infrastructure.

 

Key Points

Collaboration to deploy Kraken and renewables to modernize Ukraine's grid with analytics, smart control, and resilience.

✅ Kraken licensing for grid operations and customer analytics

✅ Shift to distributed solar, wind, and smart-home devices

✅ Real-time monitoring to mitigate outages and cyber risks

 

Octopus Energy, a prominent UK energy firm, has begun preliminary conversations with Ukraine's DTEK regarding potential collaboration to refurbish Ukraine's heavily damaged electric infrastructure as ongoing strikes threaten the power grid across the country.

Persistent assaults by Russia on Ukraine's power network, including a five-hour attack on Kyiv's grid, have led to significant electricity shortages in numerous regions.

Octopus Energy, the largest electricity and second-largest gas supplier in the UK, collaborates with energy firms in 17 countries using its Kraken software platform, and Ukraine joined Europe's power grid with unprecedented speed to bolster resilience. This platform is currently being trialled by the Abu Dhabi National Energy Company (Taqa) for power and water customers in the UAE.

A spokesperson from Octopus revealed to The National that the company is "in the early stages of discussions with DTEK to explore potential collaborative opportunities.”

One of the possibilities being considered is licensing Octopus's Kraken technology platform to DTEK, a platform that presently serves 54 million customer accounts globally.

Russian drone and missile attacks, which initially targeted Ukrainian ports and export channels last summer, shifted focus to energy infrastructure by October, ahead of the winter season as authorities worked to protect electricity supply before winter across the country.

These initial talks between Octopus CEO Greg Jackson and DTEK CEO Maxim Timchenko took place at the World Economic Forum in Davos, set against the backdrop of these ongoing challenges.

DTEK, Ukraine's leading private energy provider, might integrate Octopus's advanced Kraken software to manage and optimize data systems ranging from large power plants to smart-home devices, with a growing focus on protecting the grid against emerging threats.

Kraken is described by Octopus as a comprehensive technology platform that supports the entire energy supply chain, from generation to billing. It enables detailed analytics, real-time monitoring, and control of energy devices like heat pumps and electric vehicles, underscoring the need to counter cyber weapons that can disrupt power grids as systems become more connected.

Octopus Energy, with its focus on renewable sources, can also assist Ukraine in transitioning its power infrastructure from centralized coal-fired power stations, which are vulnerable targets, to a more distributed network of smaller solar and wind projects.

DTEK, serving approximately 3.5 million customers in the Kyiv, Donetsk, and Dnipro regions, is already engaged in renewable initiatives. The company constructed a wind farm in southern Ukraine within nine months last year and has plans for additional projects in Italy and Croatia.

Emphasizing the importance of rebuilding Ukraine's economy, Timchenko recently expressed at Davos the need for Ukrainian and international companies to work together to create a sustainable future for Ukraine, noting that incidents such as Russian hackers accessed U.S. control rooms highlight the urgency.

 

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