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EU Renewable Energy Transition accelerates as solar and wind overtake gas, cutting coal reliance and boosting REPowerEU goals; falling electricity demand, hydro and nuclear recovery, and grid upgrades drive a cleaner, secure power mix.

Key Points

It is the EU's shift to solar and wind, surpassing gas and curbing coal to meet REPowerEU targets.

✅ Solar and wind supplied 22% of EU electricity in 2022.

✅ Gas fell behind; coal stayed near 16% with no major rebound.

✅ Demand fell; hydro and nuclear expected to recover in 2023.

European countries were forced to accelerate their renewable energy capacity after Russia's invasion of Ukraine sparked a global energy crisis amid a surge in global power demand that exceeded pre-pandemic levels. The EU’s REPowerEU plan aims to increase the share of renewables in final energy consumption overall to 45 percent by the end of the decade.

However, a new report by energy think tank Ember shows that the EU’s green energy transition is already making a significant difference. Solar and wind power generated more than a fifth (22 percent) of its electricity in 2022, pulling ahead of fossil gas (20 percent) for the first time, according to the European Electricity Review 2023.

Europe also managed to avoid resorting to emissions-intensive coal power for electricity generation as a consequence of the energy crisis, even as renewables to eclipse coal globally by mid-decade. Coal generated just 16 percent of the EU’s electricity last year, an increase of just 1.5 percentage points.

“Europe has avoided the worst of the energy crisis,” says Ember’s Head of Data Insights, Dave Jones. “The shocks of 2022 only caused a minor ripple in coal power and a huge wave of support for renewables. Any fears of a coal rebound are now dead.”

Ember’s analysis reveals that the EU faced a "triple crisis" in the electricity sector in 2022, as stunted hydro and nuclear output compounded the shock. "Just as Europe scrambled to cut ties with its biggest supplier of fossil gas, it faced the lowest levels of hydro and nuclear (power) in at least two decades, which created a deficit equal to 7 percent of Europe’s total electricity demand in 2022," the report says. A severe drought across Europe, French nuclear outages as well as the closure of German nuclear outlets were responsible for the drop.

Solar power shines through
However, the record surge in solar and wind power generation helped compensate for the nuclear and hydropower deficit. Solar power rose the fastest, growing by a record 24 percent last year which almost doubled its previous record, with wind growing by 8.6 percent.

Forty-one gigawatts of solar power capacity was added in 2022, almost 50 percent more than the year before. Ember says that 20 EU countries achieved solar records in 2022, with Germany, Spain, Poland, the Netherlands and France adding the most solar capacity.

The Netherlands and Greece generated more power from solar than coal for the first time. Greece is also predicted to reach its 2030 solar capacity target by the end of this year.

EU electricity demand falls
A significant drop in electricity use in 2022 also helped lessen the impact of Europe’s energy crisis. Demand fell by 7.9 percent in the last quarter of the year, despite the continent heading into winter. This was close to the 9.6 percent fall experienced when Europe was in Covid-19 lockdown in mid-2020.

"Mild weather was a deciding factor, but affordability pressures likely played a role, alongside energy efficiency improvements and citizens acting in solidarity to cut energy demand in a time of crisis," the report says.

A ‘coal comeback’ fails to materialize
The almost 8 percent fall in electricity demand in the last three months of 2022 was the main factor in the 9 percent fall in gas and coal generation during that time. However, Ember says that had France’s nuclear plants been operating at the same capacity as 2021, the EU’s fossil fuel generation would have fallen twice as fast in the last quarter of 2022.

The report says: "Coal power in the EU fell in all four of the final months of 2022, down 6 percent year-on-year. The 26 coal units placed on emergency standby for winter ran at an average of just 18 percent capacity. Despite importing 22 million tonnes of extra coal throughout 2022, the EU only used a third of it."

Gas generation was very similar compared to 2021, up just 0.8 percent. It made up 20 percent of the EU electricity mix in 2022, up from 19 percent the year before.

Fossil fuel generation set to fall in 2023
Ember says low-emissions sources like solar and wind power will continue to accelerate in 2023 and hydropower and French nuclear capacity will also recover. With electricity demand likely to continue to fall, it estimates that fossil fuel-generation "could plummet" by 20 percent in 2023.

Gas generation will fall the fastest, Ember predicts, as it will remain more expensive than coal over the next few years. "The large fall in gas generation means the power sector is likely to be the fastest falling segment of gas demand during 2023, helping to bring calm to European gas markets as Europe adjusts to life without Russian gas."

In order to stick to the 2015 Paris Agreement target of limiting global warming to no more than 1.5 degrees Celsius compared to pre-industrial levels, Ember says Europe must fully decarbonize its power system by the mid-2030s. Its modeling shows that this is possible without compromising the security of supply.

However, the report says "making this vision a reality will require investment above and beyond existing plans, as well as immediate action to address barriers to the expansion of clean energy infrastructure. Such a mobilization would boost the European economy, cement the EU’s position as a climate leader and send a vital international message that these challenges can be overcome."

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NC WARN Solar Case tests third-party solar rights as North Carolina Supreme Court reviews Utilities Commission fines over a Greensboro church's rooftop power deal, challenging Duke Energy's monopoly, onsite electricity sales, and potential rate impacts.

Key Points

A North Carolina Supreme Court test of third-party solar could weaken Duke Energy's monopoly and change utility rules.

✅ NC Supreme Court weighs Utilities Commission penalty on NC WARN

✅ Case could permit onsite third-party solar sales statewide

✅ Outcome may pressure Duke Energy's monopoly and rates

North Carolina's highest court is taking up a case that could force new competition on the state's electricity monopolies.

The state Supreme Court on Tuesday will consider the Utilities Commission's decision to fine clean-energy advocacy group NC WARN for putting solar panels on a Greensboro church's rooftop and then charging it below-market rates for power.

The commission told NC WARN that it was producing electricity illegally and fined the group $60,000. The group said it was acting privately and appealed to the high court.

If the group prevails, it could put new pressure on Duke Energy's monopoly, which has seen an oversubscribed solar solicitation in recent procurements. State regulators say a ruling for NC WARN would allow companies to install solar equipment and sell power on site, shaving away customers and forcing Duke Energy to raise rates on everyone else.

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That's because if NC WARN's deal with Faith Community Church is allowed, the precedent could open the door for others to lure away from Duke Energy, as debates over how solar owners are paid continue, "the customers with the highest profit potential, such as commercial and industrial customers with large energy needs and ample rooftop space," attorney Robert Josey Jr. wrote in a court filing.

Losing those power sales would force the country's No. 2 electricity company to make it up by charging remaining customers more to cover the cost of all of its power plants, transmission lines and repair crews, a dynamic echoed in New England's grid upgrade debates as solar grows, wrote Josey, an attorney for the Public Staff, the state's official utilities consumer advocate.

The dispute is whether NC WARN is producing electricity "for the public," which would mean it's intruding on the territory of the publicly regulated monopoly utility, or whether the move was allowed because it was a private power deal with the church alone.

NC WARN installed the church's power panels in 2015 as part of what it described as a test case, amid wider debates like Nova Scotia's delayed solar charge for customers, challenging Duke Energy's monopoly position to generate and sell electricity.

North Carolina was one of nine states that as of last year explicitly disallowed residential customers from buying electricity generated by solar panels on their roof from a third party that owns the system, even as Maryland opens solar subscriptions more broadly, according to the North Carolina Clean Energy Technology Center. State law allows purchased or leased solar panels, but not payments simply for the power they generate.

NC WARN's goals included "reducing the effects of Duke Energy's monopoly control that has such negative impacts on power bills, clean air and water, and climate change," the church's pastor, Rev. Nelson Johnson, said in a statement the same day the clean-energy group asked state regulators to clear the plan.

Instead, the North Carolina Utilities Commission ruled the arrangement violated the state's system of legal electricity monopolies and hit the group with nearly $60,000 in fines, which would be suspended if the church's payments were refunded with interest and the solar equipment donated. The group has set aside the money and will donate the gear if it loses the Supreme Court case, NC WARN Executive Director Jim Warren said.

NC WARN's three-year agreement saw the group mount a rooftop solar array for which the church would pay about half the average retail electricity price, state officials said. The agreement states plainly that it is not a contract for the sale or lease of the $20,000 solar system, the church never owns the panels, and the low electricity price means its payback for the equipment would take 60 years, Josey wrote.

"Clearly, the only thing of value (the church) is obtaining for its payments under this agreement is the electricity created," he wrote.

In court filings, the group's attorneys have stuck to the argument that NC WARN isn't selling to the public because the deal involved a single customer only.

The deal "is not open to any other member of the public ... A private, bargained-for contract under which only one party receives electricity is not a sale of electricity 'to or for the public,' " attorney Matthew Quinn wrote to the court.

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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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Harbour Air Electric Aircraft Project advances zero-emission aviation with CleanBC Go Electric ARC funding, converting seaplanes to battery-electric power, cutting emissions, enabling commercial passenger service, and creating skilled clean-tech jobs through R&D and electrification.

Key Points

Harbour Air's project electrifies seaplanes with CleanBC ARC support to enable zero-emission flights and cut emissions.

✅ $1.6M CleanBC ARC funds seaplane electrification retrofit

✅ Target: passenger-ready, zero-emission commercial service

✅ Creates 21 full-time clean-tech jobs in British Columbia

B.C.’s Harbour Air Seaplanes is building on its work in clean technology to decarbonize aviation, part of an aviation revolution underway, and create new jobs with support from the CleanBC Go Electric Advanced Research and Commercialization (ARC) program.

”Harbour Air is decarbonizing aviation and elevating the company to new altitudes as a clean-technology leader in B.C.'s transportation sector,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “With support from our CleanBC Go Electric ARC program, Harbour Air's project not only supports our emission-reduction goals, but also creates good-paying clean-tech jobs, exemplifying the opportunities in the low-carbon economy.”

Harbour Air is receiving almost $1.6 million from the CleanBC Go Electric ARC program for its aircraft electrification project. The funding supports Harbour Air’s conversion of an existing aircraft to be fully electric-powered and builds on its successful December 2019 flight of the world’s first all-electric commercial aircraft, and subsequent first point-to-point electric flight milestones.

That flight marked the start of the third era in aviation: the electric age. Harbour Air is working on a new design of the electric motor installation and battery systems to gain efficiencies that will allow carrying commercial passengers, as it eyes first electric passenger flights in 2023. Approximately 21 full-time jobs will be created and sustained by the project.

“CleanBC is helping accelerate world-leading clean technology and innovation at Harbour Air that supports good jobs for people in our communities,” said George Heyman, Minister of Environment and Climate Change Strategy. “Once proven, the technology supports a switch from fossil fuels to advanced electric technology, and will provide a clean transportation option, such as electric ferries, that reduces pollution and shows the way forward for others in the sector.”

Harbour Air is a leader in clean-technology adoption. The company has also purchased a fully electric, zero-emission passenger shuttle bus to pick up and drop off passengers between Harbour Air’s downtown Vancouver and Richmond locations, and the Vancouver International Airport, where new EV chargers support travellers.

“It is great to see the Province stepping up to support innovation,” said Greg McDougall, Harbour Air CEO and ePlane test pilot. “This type of funding confirms the importance of encouraging companies in all sectors to focus on what they can be doing to look at more sustainable practices. We will use these resources to continue to develop and lead the transportation industry around the world in all-electric aviation.”

In total, $8.18 million is being distributed to 18 projects from the second round of CleanBC Go Electric ARC program funding. Recipients include Damon Motors and IRDI System, both based on the Lower Mainland. The 15 other successful projects will be announced this year.

The CleanBC Go Electric ARC program supports the electric vehicle (EV) sector in B.C., which leads the country in going electric, by providing reliable and targeted support for research and development, commercialization and demonstration of B.C.-based EV technologies, services and products.

“This project is a great example of the type of leading-edge innovation and tech advancements happening in our province,” said Brenda Bailey, Parliamentary Secretary for Technology and Innovation. “By further supporting the development of the first all-electric commercial aircraft, we are solidifying our position as world leaders in innovation and using technology to change what is possible.”

The CleanBC Roadmap to 2030 is B.C.’s plan to expand and accelerate climate action, including a major hydrogen project, building on the province’s natural advantages – abundant, clean electricity, high-value natural resources and a highly skilled workforce. It sets a path for increased collaboration to build a British Columbia that works for everyone.

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Germany Renewable Energy Milestone marks renewables supplying 53% of power, with record onshore wind and peak solar; hydrogen-ready gas plants and grid upgrades are planned to balance variability amid Germany's coal phase-out.

Key Points

It marks renewables supplying 53% of Germany's power, driven by wind and solar records in the energy transition.

✅ 53% of generation and 52% of consumption in 2024

✅ Onshore wind hit record; June solar peaked

✅ 24 GW hydrogen-ready gas plants planned for grid balancing

For the first time, renewable energy sources have surpassed half of Germany's electricity production this year, as indicated by data from sustainable energy organizations.

Preliminary figures from the Center for Solar Energy and Hydrogen Research alongside the German Association of Energy and Water Industries (BDEW) show that the contribution of green energy has risen to 53%, echoing how renewable power surpassed fossil fuels in Europe recently, a significant increase from 44% in the previous year.

The year saw a record output from onshore wind energy, as investments in European wind power climbed, and an unprecedented peak in solar energy production in June, as reported by the organizations. Additionally, renewable sources constituted 52% of Germany's total power consumption, marking an increase of approximately five percentage points.

Germany, Europe's leading economy, heavily impacted by Russia's reduced natural gas supplies last year, as Europeans push back from Russian oil and gas across the region, has been leaning on renewable sources to bridge the energy gap. This shift comes even as the country temporarily ramped up coal usage last winter. Having phased out its nuclear power plants earlier this year, Germany aims for an 80% clean energy production by 2030.

In absolute numbers, Germany produced a record level of renewable energy this year, supported by a solar power boost during the energy crisis, approximately 267 billion kilowatt-hours, according to the associations. A decrease of 11% in overall energy production facilitated a reduced reliance on fossil fuels.

However, Europe's transition to more sustainable energy sources, particularly offshore wind, has encountered hurdles such as increased financing and component costs, even as neighbors like Ireland pursue an ambitious green electricity goal within four years. Germany continues to face challenges in expanding its renewable energy capacity, as noted by BDEW’s executive board chairwoman, Kerstin Andreae.

Andreae emphasizes that while energy companies are eager to invest in the transition, they often encounter delays due to protracted approval processes, bureaucratic complexities, and scarcity of land despite legislative improvements.

German government officials are close to finalizing a strategy this week for constructing multiple new gas-fired power plants, despite findings that solar plus battery storage can be cheaper than conventional power in Germany, a plan estimated to cost around 40 billion euros ($44 billion). This initiative is a critical part of Germany's strategy to mitigate potential power shortages that might result from the discontinuation of coal power, particularly given the variability in renewable energy sources.

A crucial meeting involving representatives from the Economy and Finance Ministries, along with the Chancellor's Office, is expected to occur late Tuesday. The purpose is to finalize this agreement, according to sources who requested anonymity due to restrictions on public disclosure.

The Economy Ministry, spearheading this project, confirmed that intensive discussions are ongoing, although no further details were disclosed.

Germany's plan involves utilizing approximately 24 gigawatts (GW) of energy from hydrogen, including emerging offshore green hydrogen options, and gas-fired power plants to compensate for the fluctuations in wind and solar power generation. However, the proposal has faced challenges, particularly regarding the allocation of public funds for these projects, with disagreements arising with the European Union's executive in Brussels.

Environmental groups have also expressed criticism of the strategy. They advocate for an expedited end to fossil fuel usage and remain skeptical about the energy sector's arguments favoring natural gas as a transitional fuel. Despite natural gas emitting less carbon dioxide than coal, environmentalists question its role in Germany's energy future.

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Inflation Reduction Act Clean Energy drives EV adoption and renewable power, but grid interconnection, permitting, and supply chain bottlenecks slow wind, solar, and offshore projects, risking emissions targets despite domestic manufacturing growth and tax incentives.

Key Points

An IRA push to scale EVs and renewables, meeting EV goals but lagging wind and solar amid grid and permitting delays.

✅ EV sales up 50%, 9.2% of 2023 new cars; growth may moderate.

✅ 32.3 GW added, below 46-79 GW/year needed for climate targets.

✅ Grid, permitting, and supply chain delays bottleneck wind and solar.

A year and a half following President Biden's enactment of an ambitious climate change bill, the landscape of the United States' clean energy transition, shaped by 2021 electricity lessons, presents a mix of successes and challenges. A recent study by a consortium of research organizations highlights that while electric vehicle (EV) sales have surged, aligning with the law's projections, the expansion of renewable energy sources like wind and solar has encountered significant hurdles.

The legislation, known as the Inflation Reduction Act, aimed for a dual thrust in America's climate strategy: boosting EV adoption, alongside EPA emission limits, and significantly increasing the generation of electricity from renewable resources. The Act, passed in 2022, was anticipated to propel the United States toward reducing its greenhouse gas emissions by approximately 40 percent from 2005 levels by the end of this decade, backed by extensive financial incentives for clean energy advancements.

Electric vehicle sales have indeed seen a remarkable uptick, with a more than 50 percent increase over the past year, as EV sales surge into 2024 across the market, culminating in EVs comprising 9.2 percent of all new car sales in the United States in 2023. This growth trajectory met the upper range of analysts' predictions post-law enactment, signaling a strong start toward achieving the Act's emission reduction targets.

However, the EV market faces uncertainties regarding the sustainability of this rapid growth. The initial surge in sales was largely driven by early adopters, and the market now confronts challenges such as high prices and limited charging infrastructure, while EVs still trail gas cars in overall market share. Despite these concerns, projections suggest that even a slowdown to 30-40 percent growth in EV sales for 2024 would align with the law's emission goals.

The renewable energy sector's progress is less straightforward. Despite achieving a record addition of 32.3 gigawatts of clean electricity capacity in the past year, the pace falls short of the projected 46 to 79 gigawatts needed annually to meet the United States' climate objectives. While there is potential for about 60 gigawatts of projects in the pipeline for this year, not all are expected to materialize on schedule, indicating a lag in the deployment of new renewable energy sources.

Logistical challenges are a significant barrier to scaling up renewable energy, especially as EV-driven electricity demand rises in the coming years. Lengthy grid connection processes, permitting delays, and local opposition hinder wind and solar project developments. Moreover, ambitious plans for offshore wind farms are hampered by supply chain issues and regulatory constraints.

To achieve the Inflation Reduction Act's ambitious targets, the United States needs to add 70 to 126 gigawatts of renewable capacity annually from 2025 to 2030—a formidable task given the current logistical and regulatory bottlenecks. The analysis underscores the urgency of addressing these non-cost barriers to unlock the full potential of the law's clean energy and emissions reduction ambitions.

In addition to promoting clean energy generation and EV adoption, the Inflation Reduction Act has spurred domestic manufacturing of clean energy technologies. With $44 billion invested in U.S. clean-energy manufacturing last year, this aspect of the law has seen considerable success, and permanent clean energy tax credits are being debated to sustain momentum, demonstrating the Act's capacity to drive economic and industrial transformation.

The law's impact extends to emerging clean energy technologies, offering tax incentives for advanced nuclear reactors, renewable hydrogen production, and carbon capture and storage projects. While these initiatives hold promise for further emissions reductions, their development and deployment are still in the early stages, with tangible outcomes expected in the longer term.

While the Inflation Reduction Act has catalyzed significant strides in certain areas of the United States' clean energy transition, including an EV inflection point in adoption trends, it faces substantial hurdles in fully realizing its objectives. Overcoming logistical, regulatory, and market challenges will be crucial for the nation to stay on course toward its ambitious climate goals, underscoring the need for continued innovation, investment, and policy refinement in the journey toward a sustainable energy future.

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