Venezuela: Electricity Recovery Continues as US Withdraws Diplomatic Staff


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Venezuela Power Outage cripples the national grid after a massive blackout; alleged cyber attacks at Guri Dam and Caracas, damaged transmission lines, CORPOELEC restoration, looting, water shortages, and sanctions pressure compound recovery.

 

Key Points

A March 2019 blackout crippling Venezuela's grid amid alleged cyber attacks, equipment failures, and slow restoration.

✅ Power restored partially after 96 hours across all states

✅ Alleged cyber attacks at Guri Dam and Caracas systems

✅ CORPOELEC urges reduced load during grid stabilization

 

Venezuelan authorities continue working to bring back online the electric grid following a massive outage that started on Thursday, March 7.

According to on-the-ground testimonies and official sources, power finally began to reach Venezuela’s western states, including Merida and Zulia, on Monday night, around 96 hours after the blackout started. Electricity has now been restored at least in some areas of every state, with authorities urging citizens, as seen in Ukraine's efforts to keep lights on during crisis, to avoid using heavy usage devices while efforts to restore the whole grid continue.

President Nicolas Maduro gave a televised address on Tuesday evening, offering more details about the alleged attack against the country’s electrical infrastructure. According to Maduro, both the computerized system in the Guri Dam, on Thursday afternoon, and the central electrical “brain” in Caracas, on Saturday morning, suffered cyber attacks, while recovery was delayed by physical attacks against transmission lines and electrical substations, a pattern seen in power outages in western Ukraine as well.

“The recovery has been a miracle by CORPOELEC (electricity) workers” he said, vowing that a “battle” had been won.

Maduro claimed that the attacks were directed from Chicago and Houston and that more evidence would be presented soon. The Venezuelan president had announced on Monday that two arrests were made in connection to alleged acts of sabotage against the communications system in the Guri Dam.

Venezuela’s electrical grid has suffered from poor maintenance and sabotage in recent years, with infrastructure strained by under-investment and Washington’s economic sanctions further compounding difficulties, with parallels to electricity inequality in California highlighting broader systemic challenges, though causes differ.

The extended power outage saw episodes of lootings take place, especially in the Zulia capital of Maracaibo. Food warehouses, supermarkets and a shopping mall were targeted according to reports and footage on social media.

Isolated episodes of protests and lootings were also reported in other cities, including some sectors of Caracas. A video spread on social media appeared to show a violent confrontation in the eastern city of Maturin in which a National Guardsman was shot dead.

While electricity has been gradually restored, public transportation and other services have yet to be reactivated, a contrast with U.S. grid resilience during COVID-19 where power systems remained stable, with the government suspending work and school activities until Wednesday.

In Caracas, attention has now turned to water. Shortages started to be felt after the water pumping system in the nearby Tuy valley was shut down amid the electricity blackout, underscoring that electricity is civilization in conflict zones, as interdependent systems cascade. Authorities announced on Tuesday afternoon that the system was due to resume supplying water to the capital metropolitan region.

Some communities protested the lack of water on Monday and long queues formed at water distribution points, with local authorities looking to send water tanks to supply communities and guarantee the normal functioning of hospitals.

The Venezuelan government has yet to release any information concerning casualties in hospitals, with NGO Doctors for Health reporting 24 dead as of Monday night following alleged contact with multiple hospitals. Higher figures, including claims of 80 newborns dead in Maracaibo, have been denied by local sources.

Self-proclaimed “Interim President” Juan Guaido has blamed the electricity crisis on government mismanagement and corruption, dismissing the government’s cyber attack thesis on the grounds that the system is analog, and attributing the national outage to a lack of qualified personnel needed to reactivate the grid. However, these claims have been called into question by people with knowledge of the system.

Guaido called for street protests on Tuesday afternoon which saw small groups momentarily take to streets in Caracas and other cities, or banging pots and pans from windows.

The opposition-controlled National Assembly, which has been in contempt of court since 2016, approved a decree on Monday declaring a state of “national alarm,” blaming the government for the current crisis and issuing instructions for public officials and security forces.

Likewise on Tuesday, Venezuelan Attorney General Tarek William Saab announced that an investigation was being opened against Guaido regarding his alleged responsibility for the recent power outage. Saab explained that this investigation would add to the previous one, opened on January 29, as well as determine responsibilities in instigating violence.

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Power Demand Seen Holding Firm In Europe’s Latest Lockdown

European Power Demand During Second Lockdowns remains resilient as winter heating offsets commercial losses; electricity consumption tracks seasonal norms, with weather sensitivity, industrial activity, natural gas shielding, and coal decline shaping dynamics under COVID-19 restrictions.

 

Key Points

It is expected to remain near seasonal norms, driven by heating, industry activity, and weather sensitive consumption.

✅ Winter heating offsets retail and hospitality closures

✅ Demand sensitivity rises with colder weather in France

✅ Gas generation shielded; coal likely to curtail first

 

European power demand is likely to hold up in the second round of national lockdown restrictions, with fluctuations most likely driven by changes in the weather.

Traders and analysts expect normal consumption this time around as home heating during the chilly season replaces commercial demand.

Last week electricity consumption in France, Germany and the U.K. was close to business-as-usual levels for the time of year, according to BloombergNEF data. By contrast, power demand had dropped 16% in the first seven days of the springtime lockdown, as reflected by the U.K.’s 10% daily decline reported then.

How power demand performs has significance outside the sector. It’s often seen as a proxy for economic growth and during lockdowns earlier this year, electricity use slumped along with GDP, and stunted hydro and nuclear output could further hobble recovery. For Western Europe, annual demand is expected to be 5% lower than the previous year, a bigger decline than after the global financial crisis in 2008, according to S&P Global Platts.

The Covid-19 limits are lighter than those from earlier in the year “with an explicit drive to preserve economic activity, particularly at the more energy-intensive industrial end of the spectrum,” said Glenn Rickson, head of European power analysis at S&P Global Platts.

Higher levels of working from home will offset some of the losses from shop and hospitality closures, “but also increase the temperature sensitivity of overall gas and power demand, as heat-driven demand records have shown in recent summers,” he said.

The latest wave of national lockdowns began in France, Germany, Spain, Italy and Britain, with Spain having seen April demand plummet earlier in the year, as coronavirus cases surged and officials struggled to keep the spread of the virus under control.

Much of the manufacturing industry remains working for now despite additional restrictions to contain the coronavirus. With the peak of the second wave yet to be reached, “it seems almost inevitable that the fourth quarter will prove economically challenging,” analysts at Alfa Energy said.

There will initially be significantly less of an impact on demand compared with this spring when global daily demand dipped about 15% and electricity consumption in Europe was down 30%, Johan Sigvardsson, power price analyst at Swedish utility Bixia AB said.

The prevalence of electric heating systems in France means that power demand is particularly sensitive to cold weather. A cold spell would significantly boost demand and drive record electricity prices in tight markets.

Similar to the last round of shutdowns, it’s use of coal that will probably be hit first if power demand sags, as transition-focused responses gather pace, leaving natural gas mostly shielded from fluctuations in the market.

“We expect that another drop in power demand would again impact coal-fired generation and shield gas power to some extent,” said Carlos Torres Diaz, an analyst at Rystad Energy.

 

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Utilities see benefits in energy storage, even without mandates

Utility Battery Storage Rankings measure grid-connected capacity, not ownership, highlighting MW, MWh, and watts per customer across PJM, MISO, and California IOUs, featuring Duke Energy, IPL, ancillary services, and frequency regulation benefits.

 

Key Points

Rankings that track energy storage connected to utility grids, comparing MW, MWh, and W/customer rather than ownership.

✅ Ranks by MW, MWh, and watts per customer, not asset ownership

✅ Highlights PJM, MISO cases and California IOUs' deployments

✅ Examples: Duke Energy, IPL, IID; ancillary services, frequency response

 

The rankings do not tally how much energy storage a utility built or owns, but how much was connected to their system. So while IPL built and owns the storage facility in its territory, Duke does not own the 16 MW of storage that connected to its system in 2016. Similarly, while California’s utilities are permitted to own some energy storage assets, they do not necessarily own all the storage facilities connected to their systems.

Measured by energy (MWh), IPL ranked fourth with 20 MWh, and Duke Energy Ohio ranked eighth with 6.1 MWh.

Ranked by energy storage watts per customer, IPL and Duke actually beat the California utilities, ranking fifth and sixth with 42 W/customer and 23 W/customer, respectively.

Duke ready for next step

Given Duke’s plans, including projects in Florida that are moving ahead, the utility is likely to stay high in the rankings and be more of a driving force in development. “Battery technology has matured, and we are ready to take the next step,” Duke spokesman Randy Wheeless told Utility Dive. “We can go to regulators and say this makes economic sense.”

Duke began exploring energy storage in 2012, and until now most of its energy storage efforts were focused on commercial projects in competitive markets where it was possible to earn revenues. Those included its 36 MW Notrees battery storage project developed in partnership with the Department of Energy in 2012 that provides frequency regulation for the Electric Reliability Council of Texas market and two 2 MW storage projects at its retired W.C. Beckjord plant in New Richmond, Ohio, that sells ancillary services into the PJM Interconnection market.

On the regulated side, most of Duke’s storage projects have had “an R&D slant to them,” Wheeless said, but “we are moving beyond the R&D concept in our regulated territory and are looking at storage more as a regulated asset.”

“We have done the demos, and they have proved out,” Wheeless said. Storage may not be ready for prime time everywhere, he said, but in certain locations, especially where it can it can be used to do more than one thing, it can make sense.

Wheeless said Duke would be making “a number of energy storage announcements in the next few months in our regulated states.” He could not provide details on those projects.

More flexible resources
Location can be a determining factor when building a storage facility. For IPL, serving the wholesale market was a driving factor in the rationale to build its 20 MW, 20 MWh storage facility in Indianapolis.

IPL built the project to address a need for more flexible resources in light of “recent changes in our resource mix,” including decreasing coal-fired generation and increasing renewables and natural gas-fired generation, as other regions plan to rely on battery storage to meet rising demand, Joan Soller, IPL’s director of resource planning, told Utility Dive in an email. The storage facility is used to provide primary frequency response necessary for grid stability.

The Harding Street storage facility in May. It was the first energy storage project in the Midcontinent ISO. But the regulatory path in MISO is not as clear as it is in PJM, whereas initiatives such as Ontario storage framework are clarifying participation. In November, IPL with the Federal Energy Regulatory Commission, asking the regulator to find that MISO’s rules for energy storage are deficient and should be revised.

Soller said IPL has “no imminent plans to install energy storage in the future but will continue to monitor battery costs and capabilities as potential resources in future Integrated Resource Plans.”

California legislative and regulatory push

In California, energy storage did not have to wait for regulations to catch up with technology. With legislative and regulatory mandates, including CEC long-duration storage funding announced recently, as a push, California’s IOUs took high places in SEPA’s rankings.

Southern California Edison and San Diego Gas & Electric were first and fourth (63.2 MW and 17.2 MW), respectively, in terms of capacity. SoCal Ed and SDG&E were first and second (104 MWh and 28.4 MWh), respectively, and Pacific Gas and Electric was fifth (17 MWh) in terms of energy.

But a public power utility, the Imperial Irrigation District (IID), ended up high in the rankings – second in capacity (30 MW) and third  in energy (20 MWh) – even though as a public power entity it is not subject to the state’s energy storage mandates.

But while IID was not under state mandate, it had a compelling regulatory reason to build the storage project. It was part of a settlement reached with FERC over a September 2011 outage, IID spokeswoman Marion Champion said.

IID agreed to a $12 million fine as part of the settlement, of which $9 million was applied to physical improvements of IID’s system.

IID ended up building a 30 MW, 20 MWh lithium-ion battery storage system at its El Centro generating station. The system went into service in October 2016 and in May, IID used the system’s 44 MW combined-cycle natural gas turbine at the generating station.

Passing savings to customers
The cost of the storage system was about $31 million, and based on its experience with the El Centro project, Champion said IID plans to add to the existing batteries. “We are continuing to see real savings and are passing those savings on to our customers,” she said.

Champion said the battery system gives IID the ability to provide ancillary services without having to run its larger generation units, such as El Centro Unit 4, at its minimum output. With gas prices at $3.59 per million British thermal units, it costs about $26,880 a day to run Unit 4, she said.

IID’s territory is in southeastern California, an area with a lot of renewable resources. IID is also not part of the California ISO and acts as its own balancing authority. The battery system gives the utility greater operational flexibility, in addition to the ability to use more of the surrounding renewable resources, Champion said.

In May, IID’s board gave the utility’s staff approval to enter into contract negotiations for a 7 MW, 4 MWh expansion of its El Centro storage facility. The negotiations are ongoing, but approval could come in the next couple months, Champion said.

The heart of the issue, though, is “the ability of the battery system to lower costs for our ratepayers,” Champion said. “Our planning section will continue to utilize the battery, and we are looking forward to its expansion,” she said.” I expect it will play an even more important role as we continue to increase our percentage of renewables.”

 

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How ‘Virtual Power Plants’ Will Change The Future Of Electricity

Virtual Power Plants orchestrate distributed energy resources like rooftop solar, home batteries, and EVs to deliver grid services, demand response, peak shaving, and resilience, lowering costs while enhancing reliability across wholesale markets and local networks.

 

Key Points

Virtual Power Plants aggregate solar and batteries to provide grid services, cut peak costs, and boost reliability.

✅ Aggregates DERs via cloud to bid into wholesale markets

✅ Reduces peak demand, defers costly grid upgrades

✅ Enhances resilience vs outages, cyber risks, and wildfires

 

If “virtual” meetings can allow companies to gather without anyone being in the office, then remotely distributed solar panels and batteries can harness energy and act as “virtual power plants.” It is simply the orchestration of millions of dispersed assets within a smarter electricity infrastructure to manage the supply of electricity — power that can be redirected back to the grid and distributed to homes and businesses. 

The ultimate goal is to revamp the energy landscape, making it cleaner and more reliable. By using onsite generation such as rooftop solar and smart solar inverters in combination with battery storage, those services can reduce the network’s overall cost by deferring expensive infrastructure upgrades and by reducing the need to purchase cost-prohibitive peak power. 

“We expect virtual power plants, including aggregated home solar and batteries, to become more common and more impactful for energy consumers throughout the country in the coming years,” says Michael Sachdev, chief product officer for Sunrun Inc., a rooftop solar company, in an interview. “The growth of home solar and batteries will be most apparent in places where households have an immediate need for backup power, as they do in California, where grid reliability pressures have led utilities to turn off the electricity to reduce wildfire risk.”

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Home battery adoption, such as Tesla Powerwall systems, is becoming commonplace in Hawaii and in New England, he adds, because those distributed assets are improving the efficiency of the electrical network. It is a trend that is reshaping the country’s energy generation and delivery system by relying more on clean onsite generation and less on fossil fuels.

Sunrun has recently formed a business partnership with AutoGrid, which will manage Sunrun’s fleet of rechargeable batteries. It is a cloud-based system that allows Sunrun to work with utilities to dispatch its “storage fleet” to optimize the economic results. AutoGrid compiles the data and makes AI-driven forecasts that enable it to pinpoint potential trouble spots. 

But a distributed energy system, or a virtual power plant, would have 200,000 subsystems. Or, 200,000 5 kilowatt batteries would be the equivalent of one power plant that has a capacity of 1,000 megawatts. 

“A virtual power plant acts as a generator,” says Amit Narayan, chief executive officer of AutoGrid, in an interview. “It is one of the top five innovations of the decade. If you look at Sunrun, 60% of every solar system it sells in the Bay Area is getting attached to a battery. The value proposition comes when you can aggregate these batteries and market them as a generation unit. The pool of individual assets may improve over time. But when you add these up, it is better than a large-scale plant. It is like going from mainframe computers to laptops.”

The AutoGrid executive goes on to say that centralized systems are less reliable than distributed resources. While one battery could falter, 200,000 of them that operate from remote locations will prove to be more durable — able to withstand cyber attacks and wildfires. Sunrun’s Sachdev adds that the ability to store energy in batteries, as seen in California’s expanding grid-scale battery use supporting reliability, and to move it to the grid on demand creates value not just for homes and businesses but also for the network as a whole.

The good news is that the trend worldwide is to make it easier for smaller distributed assets, including energy storage for microgrids that support local resilience, to get the same regulatory treatment as power plants. System operators have been obligated to call up those power supplies that are the most cost-effective and that can be easily dispatched. But now regulators are giving virtual power plants comprised of solar and batteries the same treatment. 

In the United States, for example, the Federal Energy Regulatory Commission issued an order in 2018 that allows storage resources to participate in wholesale markets — where electricity is bought directly from generators before selling that power to homes and businesses. Under the ruling, virtual power plants are paid the same as traditional power suppliers. A federal appeals court this month upheld the commission’s order, saying that it had the right to ensure “technological advances in energy storage are fully realized in the marketplace.” 

“In the past, we have used back-up generators,” notes AutoGrid’s Narayan. “As we move toward more automation, we are opening up the market to small assets such as battery storage and electric vehicles. As we deploy more of these assets, there will be increasing opportunities for virtual power plants.” 

Virtual power plants have the potential to change the energy horizon by harnessing locally-produced solar power and redistributing that to where it is most needed — all facilitated by cloud-based software that has a full panoramic view. At the same time, those smaller distributed assets can add more reliability and give consumers greater peace-of-mind — a dynamic that does, indeed, beef-up America’s generation and delivery network.

 

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Growing pot sucks up electricity and pumps out an astounding amount of carbon dioxide — it doesn't have to

Sustainable Cannabis Cultivation leverages greenhouse design, renewable energy, automation, and water recapture to cut electricity use, emissions, and pesticides, delivering premium yields with natural light, smart sensors, and efficient HVAC and irrigation control.

 

Key Points

A data-driven, low-impact method that cuts energy, water, and chemicals while preserving premium yields.

✅ 70-90% less electricity vs. conventional indoor grows

✅ Natural light, solar, and rainwater recapture reduce footprint

✅ Automation, sensors, and HVAC stabilize microclimates

 

In the seven months since the Trudeau government legalized recreational marijuana use, licensed producers across the country have been locked in a frenetic race to grow mass quantities of cannabis for the new market.

But amid the rush for scale, questions of sustainability have often taken a back seat, and in Canada, solar adoption has lagged in key sectors.

According to EQ Research LLC, a U.S.-based clean-energy consulting firm, cannabis facilities can need up to 150 kilowatt-hours of electricity per year per square foot. Such input is on par with data centres, which are themselves 50 to 200 times more energy-intensive than a typical office building, and achieving zero-emission electricity by 2035 would help mitigate the associated footprint.

At the Lawrence Berkley National Laboratory in California, a senior scientist estimated that one per cent of U.S. electricity use came from grow ops. The same research — published in 2012 — also found that the procedures for refining a kilogram of weed emit around 4,600 kilograms of carbon dioxide to the atmosphere, equivalent to operating three million cars for a year, though a shift to zero-emissions electricity by 2035 could substantially cut those emissions.

“All factors considered, a very large expenditure of energy and consequent ‘environmental imprint’ is associated with the indoor cultivation of marijuana,” wrote Ernie Small, a principal research scientist for Agriculture and Agri-Food Canada, in the 2018 edition of the Biodiversity Journal.

Those issues have left some turning to technology to try to reduce the industry’s footprint — and the economic costs that come with it — even as more energy sources make better projects for forward-looking developers.

“The core drawback of most greenhouse environments is that you’re just getting large rooms, which are harder to control,” says Dan Sutton, the chief executive officer of Tantalus Labs., a B.C.-based cannabis producer. “What we did was build a system specifically for cannabis.”

Sutton is referring to SunLab, the culmination of four years of construction, and at present the main site where his company nurtures rows of the flowering plant. The 120,000-square foot structure was engineered for one purpose: to prove the merits of a sustainable approach.

“We’re actually taking time-series data on 30 different environmental parameters — really simple ones like temperature and humidity — all the way down to pH of the soil and water flow,” says Sutton. “So if the temperature gets a little too cold, the system recognizes that and kicks on heaters, and if the system senses that the environment is too hot in the summertime, then it automatically vents.”

A lot is achieved without requiring much human intervention, he adds. Unlike conventional indoor operations, SunLab demands up to 90 per cent less electricity, avoids using pesticides, and draws from natural light and recaptured rainwater to feed its crops.

The liquid passes through a triple-filtration process before it is pumped into drip irrigation tubing. “That allows us to deliver a purity of water input that is cleaner than bottled water,” says Sutton.

As transpiration occurs, a state-of-the-art, high-capacity airflow suspended below the ceiling cycles air at seven-minute intervals, repeatedly cooling the air and preventing outbreaks of mould, while genetically modified “guardian” insects swoop in to eliminate predatory pests.

“When we first started, people never believed we would cultivate premium quality cannabis or cannabis that belongs on the top shelf, shoulder to shoulder with the best in the world and the best of indoor,” says Sutton.

Challenges still exist, but they pale in comparison to the obstacles that American companies with an interest in adopting greener solutions persistently face, and in provinces like Alberta, an Alberta renewable energy surge is reshaping the opportunity set.

Although cannabis is legal in a number of states, it remains illegal federally, which means access to capital and regulatory clarity south of the border can be difficult to come by.

“Right now getting a new project built is expensive to do because you can’t get traditional bank loans,” says Canndescent CEO Adrian Sedlin, speaking by phone from California.

In retrofitting the company’s farm to accommodate a sizeable solar field, he struggled to secure investors, even as a solar-powered cannabis facility in Edmonton showcased similar potential.

“We spent over a year and a half trying to get it financed,” says Sedlin. “Finding someone was the hard part.”

Decriminalizing the drug would ultimately increase the supply of capital and lower the costs for innovative designs, something Sedlin says would help incentivize producers to switch to more effective and ecologically sound techniques.

Some analysts argue that selling renewable energy in Alberta could become a major growth avenue that benefits energy-intensive industries like cannabis cultivation.

Canndescent, however, is already there.

“We’re now harnessing the sun to reduce our reliance on fossil fuels and going to sustainable, or replenishable, energy sources, while leveraging the best and most efficient water practices,” says Sedlin. “It’s the right thing to do.”

 

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The German economy used to be the envy of the world. What happened?

Germany's Economic Downturn reflects an energy crisis, deindustrialization risks, export weakness, and manufacturing stress, amid Russia gas loss, IMF and EU recession forecasts, and debates over electricity price caps and green transition.

 

Key Points

An economic contraction from energy price shocks, export weakness, and bottlenecks in manufacturing and digitization.

✅ Energy shock after loss of cheap Russian gas

✅ Exports slump amid China slowdown and weak demand

✅ Policy gridlock on power price cap and permits

 

Germany went from envy of the world to the worst-performing major developed economy. What happened?

For most of this century, Germany racked up one economic success after another, dominating global markets for high-end products like luxury cars and industrial machinery, selling so much to the rest of the world that half the economy ran on exports.

Jobs were plentiful, the government’s financial coffers grew as other European countries drowned in debt, and books were written about what other countries could learn from Germany.

No longer. Now, Germany is the world’s worst-performing major developed economy, with both the International Monetary Fund and European Union expecting it to shrink this year.

It follows Russia’s invasion of Ukraine and the loss of Moscow’s cheap Russian gas that underpinned industry — an unprecedented shock to Germany’s energy-intensive industries, long the manufacturing powerhouse of Europe.

The sudden underperformance by Europe’s largest economy has set off a wave of criticism, handwringing and debate about the way forward.

Germany risks “deindustrialization” as high energy costs and government inaction on other chronic problems threaten to send new factories and high-paying jobs elsewhere, said Christian Kullmann, CEO of major German chemical company Evonik Industries AG.

From his 21st-floor office in the west German town of Essen, Kullmann points out the symbols of earlier success across the historic Ruhr Valley industrial region: smokestacks from metal plants, giant heaps of waste from now-shuttered coal mines, a massive BP oil refinery and Evonik’s sprawling chemical production facility.

These days, the former mining region, where coal dust once blackened hanging laundry, is a symbol of the energy transition, as the power sector’s balancing act continues with wind turbines and green space.

The loss of cheap Russian natural gas needed to power factories “painfully damaged the business model of the German economy,” Kullmann told The Associated Press. “We’re in a situation where we’re being strongly affected — damaged — by external factors.”

After Russia cut off most of its gas to the European Union, spurring an energy crisis in the 27-nation bloc that had sourced 40% of the fuel from Moscow, the German government asked Evonik to turn to coal by keeping its 1960s coal-fired power plant running a few months longer.

The company is shifting away from the plant — whose 40-story smokestack fuels production of plastics and other goods — to two gas-fired generators that can later run on hydrogen amid plans to become carbon neutral by 2030 and following the nuclear phase-out of recent years.

One hotly debated solution: a government-funded cap on industrial electricity prices to get the economy through the renewable energy transition, amid an energy crisis that even saw a temporary nuclear extension to stabilize supply.

The proposal from Vice Chancellor Robert Habeck of the Greens Party has faced resistance from Chancellor Olaf Scholz, a Social Democrat, and pro-business coalition partner the Free Democrats. Environmentalists say it would only prolong reliance on fossil fuels, while others advocate a nuclear option to meet climate goals.

Kullmann is for it: “It was mistaken political decisions that primarily developed and influenced these high energy costs. And it can’t now be that German industry, German workers should be stuck with the bill.”

The price of gas is roughly double what it was in 2021, with a senior official arguing nuclear would do little to solve that gas issue, hurting companies that need it to keep glass or metal red-hot and molten 24 hours a day to make glass, paper and metal coatings used in buildings and cars.

A second blow came as key trade partner China experiences a slowdown after several decades of strong economic growth.

These outside shocks have exposed cracks in Germany’s foundation that were ignored during years of success, including lagging use of digital technology in government and business and a lengthy process to get badly needed renewable energy projects approved.

 

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Climate change: Electrical industry's 'dirty secret' boosts warming

Sulphur Hexafluoride (SF6) Emissions drive rising greenhouse gas impacts in electrical switchgear, power grids, and renewables, with extreme global warming potential, long atmospheric lifetime, and leakage risks challenging climate targets and grid decarbonization.

 

Key Points

SF6 emissions are leaks from electrical switchgear and grids, a high-GWP gas with ~1,000-year lifetime.

✅ 23,500x CO2 global warming potential (GWP)

✅ Leaks from switchgear, breakers, gas-insulated substations

✅ Clean air and vacuum alternatives emerging for MV/HV

 

Sulphur hexafluoride, or SF6, is widely used in the electrical industry to prevent short circuits and accidents.

But leaks of the little-known gas in the UK and the rest of the EU in 2017 were the equivalent of putting an extra 1.3 million cars on the road.

Levels are rising as an unintended consequence of the green energy boom and the broader global energy transition worldwide.

Cheap and non-flammable, SF6 is a colourless, odourless, synthetic gas. It makes a hugely effective insulating material for medium and high-voltage electrical installations.

It is widely used across the industry, from large power stations to wind turbines to electrical sub-stations in towns and cities.

It prevents electrical accidents and fires.

However, the significant downside to using the gas is that it has the highest global warming potential of any known substance. It is 23,500 times more warming than carbon dioxide (CO2).

Just one kilogram of SF6 warms the Earth to the same extent as 24 people flying London to New York return.

It also persists in the atmosphere for a long time, warming the Earth for at least 1,000 years.

 

So why are we using more of this powerful warming gas?

The way we make electricity around the world is changing rapidly, with New Zealand's push to electrify in its energy system.

Where once large coal-fired power stations brought energy to millions, the drive to combat climate change and to move away from coal means they are now being replaced by mixed sources of power including wind, solar and gas.

This has resulted in many more connections to the electricity grid, and with EU electricity use could double by 2050, a rise in the number of electrical switches and circuit breakers that are needed to prevent serious accidents.

Collectively, these safety devices are called switchgear. The vast majority use SF6 gas to quench arcs and stop short circuits.

"As renewable projects are getting bigger and bigger, we have had to use it within wind turbines specifically," said Costa Pirgousis, an engineer with Scottish Power Renewables on its new East Anglia wind farm, which doesn't use SF6 in turbines.

"As we are putting in more and more turbines, we need more and more switchgear and, as a result, more SF6 is being introduced into big turbines off shore.

"It's been proven for years and we know how it works, and as a result it is very reliable and very low maintenance for us offshore."

 

How do we know that SF6 is increasing?

Across the entire UK network of power lines and substations, there are around one million kilograms of SF6 installed.

A study from the University of Cardiff found that across all transmission and distribution networks, the amount used was increasing by 30-40 tonnes per year.

This rise was also reflected across Europe with total emissions from the 28 member states in 2017 equivalent to 6.73 million tonnes of CO2. That's the same as the emissions from 1.3 million extra cars on the road for a year.

Researchers at the University of Bristol who monitor concentrations of warming gases in the atmosphere say they have seen significant rises in the last 20 years.

"We make measurements of SF6 in the background atmosphere," said Dr Matt Rigby, reader in atmospheric chemistry at Bristol.

"What we've seen is that the levels have increased substantially, and we've seen almost a doubling of the atmospheric concentration in the last two decades."

 

How does SF6 get into the atmosphere?

The most important means by which SF6 gets into the atmosphere is from leaks in the electricity industry.

Electrical company Eaton, which manufactures switchgear without SF6, says its research indicates that for the full life-cycle of the product, leaks could be as high as 15% - much higher than many other estimates.

Louis Schaeffer, electrical business manager at Eaton, said: "The newer gear has very low leak rates but the key question is do you have newer gear?

"We looked at all equipment and looked at the average of all those leak rates, and we didn't see people taking into account the filling of the gas. Plus, we looked at how you recycle it and return it and also included the catastrophic leaks."

 

How damaging to the climate is this gas?

Concentrations in the atmosphere are very small right now, just a fraction of the amount of CO2 in the air.

However, the global installed base of SF6 is expected to grow by 75% by 2030, as data-driven electricity demand surges worldwide.

Another concern is that SF6 is a synthetic gas and isn't absorbed or destroyed naturally. It will all have to be replaced and destroyed to limit the impact on the climate.

Developed countries are expected to report every year to the UN on how much SF6 they use, but developing countries do not face any restrictions on use.

Right now, scientists are detecting concentrations in the atmosphere that are 10 times the amount declared by countries in their reports. Scientists say this is not all coming from countries like India, China and South Korea.

One study found that the methods used to calculate emissions in richer countries "severely under-reported" emissions over the past two decades.

 

Why hasn't this been banned?

SF6 comes under a group of human-produced substances known as F-gases. The European Commission tried to prohibit a number of these environmentally harmful substances, including gases in refrigeration and air conditioning, back in 2014.

 

But they faced strong opposition from industries across Europe.

"In the end, the electrical industry lobby was too strong and we had to give in to them," said Dutch Green MEP Bas Eickhout, who was responsible for the attempt to regulate F-gases.

"The electric sector was very strong in arguing that if you want an energy transition, and you have to shift more to electricity, you will need more electric devices. And then you also will need more SF6.

"They used the argument that otherwise the energy transition would be slowed down."

 

What do regulator and electrical companies say about the gas?

Everyone is trying to reduce their dependence on the gas, and US control efforts suggest targeted policies can drive declines, as it is universally recognised as harmful to the climate.

In the UK, energy regulator Ofgem says it is working with utilities to try to limit leaks of the gas.

"We are using a range of tools to make sure that companies limit their use of SF6, a potent greenhouse gas, where this is in the interest of energy consumers," an Ofgem spokesperson told BBC News.

"This includes funding innovation trials and rewarding companies to research and find alternatives, setting emissions targets, rewarding companies that beat those targets, and penalising those that miss them."

 

Are there alternatives - and are they very expensive?

The question of alternatives to SF6 has been contentious over recent years.

For high-voltage applications, experts say there are very few solutions that have been rigorously tested.

"There is no real alternative that is proven," said Prof Manu Haddad from the school of engineering at Cardiff University.

"There are some that are being proposed now but to prove their operation over a long period of time is a risk that many companies don't want to take."

Medium voltage operations there are several tried-and-tested materials. Some in the industry say that the conservative nature of the electrical industry is the key reason that few want to change to a less harmful alternative.

 

"I will tell you, everyone in this industry knows you can do this; there is not a technical reason not to do it," said Louis Schaffer from Eaton.

"It's not really economic; it's more a question that change takes effort and if you don't have to, you won't do it."

 

Some companies are feeling the winds of change

Sitting in the North Sea some 43km from the Suffolk coast, Scottish Power Renewables has installed one of world's biggest wind farms, in line with a sustainable electric planet vision, where the turbines will be free of SF6 gas.

East Anglia One will see 102 of these towering generators erected, with the capacity to produce up to 714MW (megawatts) of power by 2020, enough to supply half a million homes.

Previously, an installation like this would have used switchgear supplied with SF6, to prevent the electrical accidents that can lead to fires.

Each turbine would normally have contained around 5kg of SF6, which, if it leaked into the atmosphere, would add the equivalent of around 117 tonnes of carbon dioxide. This is roughly the same as the annual emissions from 25 cars.

"In this case we are using a combination of clean air and vacuum technology within the turbine. It allows us to still have a very efficient, reliable, high-voltage network but to also be environmentally friendly," said Costa Pirgousis from Scottish Power Renewables.

"Once there are viable alternatives on the market, there is no reason not to use them. In this case, we've got a viable alternative and that's why we are using it."

But even for companies that are trying to limit the use of SF6, there are still limitations. At the heart of East Anglia One sits a giant offshore substation to which all 102 turbines will connect. It still uses significant quantities of the highly warming gas.

 

What happens next ?

The EU will review the use of SF6 next year and will examine whether alternatives are available. However, even the most optimistic experts don't think that any ban is likely to be put in place before 2025.

 

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