$290M sought to capture carbon at power plant

Calgary Electricity Price Increase signals higher ENMAX bills as grid demand surges; wholesale market volatility, fixed vs floating rates, kWh costs, and transmission charges drive above-average pricing across Alberta this winter.

Key Points

A market-led rise in Calgary power rates as grid demand and wholesale volatility affect fixed and floating plans.

✅ ENMAX warns of higher winter prices amid record grid demand

✅ Fixed rates hedge wholesale volatility; floating tracks spot market

✅ Transmission and distribution fees rise 5-10 percent annually

Calgarians should expect to be charged more for their electricity bills amid significant demand on the grid and a transition to above-average rates across Alberta.

ENMAX, one of the most-used electricity providers in the city, has sent an email to customers notifying them of higher prices for the rest of the winter months.

“Although fluctuations in electricity market prices are normal, we have seen a general trend of increasing rates over time,” the email to customers read.

“The price volatility we are forecasting is due to market factors beyond a single energy provider, including but not limited to expectations for a colder-than-normal winter and changes in electricity supply and demand in Alberta’s wholesale market. ”

Earlier this month, the province set a record for electricity usage during a bitterly cold stretch of weather.

According to energy comparison website energyrates.ca, Alberta’s energy prices have increased by 34 per cent between November 2020 and 2021.

“One of the reasons that this increase seems so significant is we’re actually coming off of a low period in the market,” the site’s founder Joel MacDonald told Global News. “You’re seeing rates well below average transitioning to well above average.”

According to ENMAX’s rate in January, the price of electricity currently sits at 15.9 cents per kilowatt-hour, with an electricity price spike from 7.9 cents per kilowatt-hour last year.

MacDonald said prices for electricity have been relatively low since 2018 but a swing in the price of oil has created more activity in the province’s industrial sector, and in turn more demand on the power grid.

According to MacDonald, the price increase can also be attributed to the removal of a consumer price cap that limited regulated rates to 6.8 cents per kilowatt-hour for households and small businesses with lower demand, which, after the carbon tax was repealed, initially remained in place.

Although the cap was scrapped by the UCP three years ago, he said energy bills now depend on the rate set by the market.

“What’s increased now recently is actually the price per kilowatt, and the (transmission and distribution) charges have only increased, but annually they increase between five and 10 per cent,” MacDonald said. “So the portion of your bill that’s increasing is different than what Albertans are typically used to, or at least in recent memory.”

But Albertans do have options, MacDonald said.

As part of its email to customers, ENMAX sent a list of energy saving tips to reduce energy consumption in people’s homes, including using cold water for laundry and avoiding dryer use, energy-efficient lightbulbs and unplugging electronics when they are not in use.

Retailers also offer contracts with floating or fixed rates for consumers.

“Fixed rates, obviously, you’re going to pick your price. It’s going to be the same each and every single month,” MacDonald said. “Floating rate is based off the wholesale spot market, and that has been exceptionally high the last few months.”

He said consumers looking to save money when electricity prices are high should look into a fixed rate.

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European Electricity Market Trends 2020 highlight decarbonisation, rising renewables, EV adoption, shifting energy mix, COVID-19 impacts, fuel switching, hydro, wind and solar growth, gas price dynamics, and wholesale electricity price increases.

Key Points

EU power in 2020 saw lower emissions, more renewables, EV growth, demand shifts, and higher wholesale prices.

✅ Power sector CO2 down 14% on higher renewables, lower coal

✅ Renewables 39% vs fossil 36%; hydro, wind, solar expanded

✅ EV share hit 17%; wholesale prices rose with gas, ETS costs

According to the Market Observatory for Energy DG Energy report, the COVID-19 pandemic and favorable weather conditions are the two key drivers of the trends experienced within the European electricity market in 2020. However, the two drivers were exceptional or seasonal.

The key trends within Europe’s electricity market include:

1. Decrease in power sector’s carbon emissions

As a result of the increase in renewables generation and decrease in fossil-fueled power generation in 2020, the power sector was able to reduce its carbon footprint by 14% in 2020. The decrease in the sector’s carbon footprint in 2020 is similar to trends witnessed in 2019 when fuel switching was the main factor behind the decarbonisation trend.

However, most of the drivers in 2020 were exceptional or seasonal (the pandemic, warm winter, high
hydro generation). However, the opposite is expected in 2021, with the first months of 2021 having relatively cold weather, lower wind speeds and higher gas prices, with stunted hydro and nuclear output also cited, developments which suggest that the carbon emissions and intensity of the power sector could rise.

The European Union is targeting to completely decarbonise its power sector by 2050 through the introduction of supporting policies such as the EU Emissions Trading Scheme, the Renewable Energy Directive and legislation addressing air pollutant emissions from industrial installations, with expectations that low-emissions sources will cover most demand growth in the coming years.

According to the European Environment Agency, Europe halved its power sector’s carbon emissions in 2019 from 1990 levels.

2. Changes in energy consumption

EU consumption of electricity fell by -4% as majority of industries did not operate at full level during the first half of 2020. Although majority of EU residents stayed at home, meaning an increase in residential energy use, rising demand by households could not reverse falls in other sectors of the economy.

However, as countries renewed COVID-19 restrictions, energy consumption during the 4th quarter was closer to the “normal levels” than in the first three quarters of 2020. 

The increase in energy consumption in the fourth quarter of 2020 was also partly due to colder temperatures compared to 2019 and signs of surging electricity demand in global markets.

3. Increase in demand for EVs

As the electrification of the transport system intensifies, the demand for electric vehicles increased in 2020 with almost half a million new registrations in the fourth quarter of 2020. This was the highest figure on record and translated into an unprecedented 17% market share, more than two times higher than in China and six times higher than in the United States.

However, the European Environment Agency (EEA)argues that the EV registrations were lower in 2020 compared to 2019. EEA states that in 2019, electric car registrations were close to 550 000 units, having reached 300 000 units in 2018.

4. Changes in the region’s energy mix and increase in renewable energy generation

The structure of the region’s energy mix changed in 2020, according to the report.

Owing to favorable weather conditions, hydro energy generation was very high and Europe was able to expand its portfolio of renewable energy generation such that renewables (39%) exceeded the share of fossil fuels (36%) for the first time ever in the EU energy mix.

Rising renewable generation was greatly assisted by 29 GW of wind and solar capacity additions in 2020, which is comparable to 2019 levels. Despite disrupting the supply chains of wind and solar resulting in project delays, the pandemic did not significantly slow down renewables’ expansion.

In fact, coal and lignite energy generation fell by 22% (-87 TWh) and nuclear output dropped by 11% (-79 TWh). On the other hand, gas energy generation was not significantly impacted owing to favorable prices which intensified coal-to-gas and lignite-to-gas switching, even as renewables crowd out gas in parts of the market.

5. Retirement of coal energy generation intensify

 As the outlook for emission-intensive technologies worsens and carbon prices rise, more and more early coal retirements have been announced. Utilities in Europe are expected to continue transitioning from coal energy generation under efforts to meet stringent carbon emissions reduction targets and as they try to prepare themselves for future business models that they anticipate to be entirely low-carbon reliant.

6. Increase in wholesale electricity prices

In recent months, more expensive emission allowances, along with rising gas prices, have driven up wholesale electricity prices on many European markets to levels last seen at the beginning of 2019. The effect was most pronounced in countries that are dependent on coal and lignite. The wholesale electricity prices dynamic is expected to filter through to retail prices.

The rapid sales growth in the EVs sector was accompanied by expanding charging infrastructure. The number of high-power charging points per 100 km of highways rose from 12 to 20 in 2020.

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Ukraine Electricity Exports resume to the European grid, starting with Moldova and expanding to Poland, Slovakia, and Romania, signaling energy security, grid resilience, added megawatts, and recovery after Russian strikes with support and renewables.

Key Points

Ukraine Electricity Exports are resumed sales of surplus power to EU neighbors, reflecting grid recovery and resilience.

✅ Initial deliveries to Moldova; Poland, Slovakia, Romania to follow.

✅ Extra capacity from repairs, warmer demand, and renewables.

✅ Exports may vary amid ongoing Russian strikes risk.

Ukraine began resuming electricity exports to European countries on Tuesday, its energy minister said, a dramatic turnaround from six months ago when fierce Russian bombardment of power stations plunged much of the country into darkness in a bid to demoralize the population.

The announcement by Energy Minister Herman Halushchenko that Ukraine was not only meeting domestic consumption demands but also ready to restart exports to its neighbors was a clear message that Moscow’s attempt to weaken Ukraine by targeting its infrastructure did not work.

Ukraine’s domestic energy demand is “100%” supplied, he told The Associated Press in an interview, and it has reserves to export due to the “titanic work” of its engineers and international partners.

Russia ramped up infrastructure attacks in September, when waves of missiles and exploding drones destroyed about half of Ukraine’s energy system. Power cuts were common across the country as temperatures dropped below freezing and tens of millions struggled to keep warm.

Moscow said the strikes were aimed at weakening Ukraine’s ability to defend itself, and has also moved to reactivate the Zaporizhzhia plant through new power lines, while Western officials said the blackouts that caused civilians to suffer amounted to war crimes. Ukrainians said the timing was designed to destroy their morale as the war marked its first anniversary.

Ukraine had to stop exporting electricity in October to meet domestic needs.

Engineers worked around the clock, often risking their lives to come into work at power plants and keep the electricity flowing. Kyiv’s allies also provided help. In December, U.S. Secretary of State Antony Blinken announced $53 million in bilateral aid to help the country acquire electricity grid equipment, and USAID mobile gas turbine plant support, on top of $55 million for energy sector support.

Much more work remains to be done, Halushchenko said. Ukraine needs funding to repair damaged generation and transmission lines, and revenue from electricity exports would be one way to do that.

The first country to receive Ukraine’s energy exports will be Moldova, he said.

Besides the heroic work by engineers and Western aid, warmer temperatures are enabling the resumption of exports by making domestic demand lower, even as Germany’s coal generation shapes regional power flows.

Renewables like solar and wind power also come into play as temperatures rise, taking some pressure off nuclear and coal-fired power plants.

But it’s unclear if Ukraine can keep up exports amid the constant threat of Russian bombardment, with any potential agreement on power plant attacks still uncertain.

“Unfortunately now a lot of things depend on the war,” Halushchenko said. “I would say we feel quite confident now until the next winter.”

Exports to Poland, Slovakia and Romania are also on schedule to resume, he said.

“Today we are starting with Moldova, and we are talking about Poland, we are talking about Slovakia and Romania,” Halushchenko added, noting that how much will depend on their needs.

“For Poland, we have only one line that allows us to export 200 megawatts, but I think this month we will finish another line which will increase this to an additional 400 MW, so these figures could change,” he said.

Export revenue will depend on fluctuating electricity prices in Europe, where stunted hydro and nuclear output may affect recovery. In 2022, while Ukraine was still able to export energy, Ukrainian companies averaged 40 million to 70 million euros a month depending on prices, Halushchenko said.
 

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VW Germany Plant Closures For EV Shift signal a strategic realignment toward electric vehicles, sustainability, and zero-emission mobility, optimizing manufacturing, cutting ICE capacity, boosting battery production, retraining workers, and aligning with the Accelerate decarbonization strategy.

Key Points

VW is shuttering German plants to cut ICE costs and scale EV output, advancing sustainability and competitiveness.

✅ Streamlines operations; reallocates capital to EV platforms and batteries.

✅ Cuts ICE output, lowers emissions, and boosts clean manufacturing capacity.

✅ Retrains workforce amid closures; invests in software and charging tech.

Volkswagen (VW), one of the world’s largest automakers, is undergoing a significant transformation with the announcement of plant closures in Germany. As reported by The Guardian, this strategic shift is part of VW’s broader move towards prioritizing electric vehicles (EVs) and adapting to the evolving automotive market as EVs reach an inflection point globally. The decision highlights the company’s commitment to sustainability and innovation amid a rapidly changing industry landscape.

Strategic Plant Closures

Volkswagen’s decision to close several of its plants in Germany marks a pivotal moment in the company's history. These closures are part of a broader strategy to streamline operations, reduce costs, and focus on the production of electric vehicles. The move reflects VW’s response to the growing demand for EVs and the need to transition from traditional internal combustion engine (ICE) vehicles to cleaner, more sustainable alternatives.

The affected plants, which have been key components of VW’s manufacturing network, will cease production as the company reallocates resources and investments towards its electric vehicle programs. This realignment is aimed at improving operational efficiency and ensuring that VW remains competitive in a market that is increasingly oriented towards electric mobility.

A Shift Towards Electric Vehicles

The closures are closely linked to Volkswagen’s strategic shift towards electric vehicles. The automotive industry is undergoing a profound transformation as governments and consumers place greater emphasis on sustainability and reducing carbon emissions. Volkswagen has recognized this shift and is investing heavily in the development and production of EVs as part of its "Accelerate" strategy, anticipating widespread EV adoption within a decade across key markets.

The company’s commitment to electric vehicles is evident in its plans to launch a range of new electric models and increase production capacity for EVs. Volkswagen aims to become a leader in the electric mobility sector by leveraging its technological expertise and scale to drive innovation and expand its EV offerings.

Economic and Environmental Implications

The closure of VW’s German plants carries both economic and environmental implications. Economically, the move will impact the workforce and local economies dependent on these manufacturing sites. Volkswagen has indicated that it will work on providing support and retraining opportunities for affected employees, as the EV aftermarket evolves and reshapes service needs, but the transition will still pose challenges for workers and their communities.

Environmentally, the shift towards electric vehicles represents a significant positive development. Electric vehicles produce zero tailpipe emissions, which aligns with global efforts to combat climate change and reduce air pollution. By focusing on EV production, Volkswagen is contributing to the reduction of greenhouse gas emissions and supporting the transition to a more sustainable transportation system.

Challenges and Opportunities

While the transition to electric vehicles presents opportunities, it also comes with challenges. Volkswagen will need to manage the complexities of closing and repurposing its existing plants while ramping up production at new or upgraded facilities dedicated to EVs. This transition requires substantial investment in new technologies, infrastructure, and training, including battery supply strategies that influence manufacturing footprints, to ensure a smooth shift from traditional automotive manufacturing.

Additionally, Volkswagen faces competition from other automakers that are also investing heavily in electric vehicles, including Daimler's electrification plan outlining the scope of its transition. To maintain its competitive edge, VW must continue to innovate and offer attractive, high-performance electric models that meet consumer expectations.

Future Outlook

Looking ahead, Volkswagen’s focus on electric vehicles aligns with broader industry trends and regulatory pressures. Governments worldwide are implementing stricter emissions regulations and providing incentives for EV adoption, although Germany's plan to end EV subsidies has sparked debate domestically, creating a favorable environment for companies that are committed to sustainability and clean technology.

Volkswagen’s investment in electric vehicles and its strategic realignment reflect a proactive approach to addressing these trends. The company’s ability to navigate the challenges associated with plant closures and the transition to electric mobility will be critical, especially as Europe's EV slump tests demand signals, in determining its success in the evolving automotive landscape.

Conclusion

Volkswagen’s decision to close several plants in Germany and focus on electric vehicle production represents a significant shift in the company’s strategy. While the closures present challenges, they also highlight Volkswagen’s commitment to sustainability and its response to the growing demand for cleaner transportation solutions. By investing in electric vehicles and adapting its operations, Volkswagen aims to lead the way in the transition to a more sustainable automotive future. As the company moves forward, its ability to effectively manage this transition will be crucial in shaping its role in the global automotive market.

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Enel Green Power España Aragon wind farms advance Spain's renewable energy transition, with 90MW under construction in Teruel, Endesa investment of €88 million, 25-50MW turbines, and 2017 auction-backed capacity enhancing grid integration and clean power.

Key Points

They are three Teruel wind projects totaling 90MW, part of Endesa's 2017-awarded plan expanding Spain's clean energy.

✅ 90MW across Sierra Costera I, Allueva, and Sierra Pelarda

✅ €88m invested; 14+7+4 turbines; Endesa-led build in Teruel

✅ Part of 2017 tender: 540MW wind, 339MW solar, nationwide

Enel Green Power Espana, part of Enel's wind projects worldwide, has started constructing three wind farms in Aragon, north-east Spain, which are due online by the end of the year.

The projects, all situated in the Teruel province, are worth a total investment of €88 million.

The biggest of the facilities, Sierra Costera I, will have a 50MW and will feature 14 turbines.

The wind farm is spread across the municipalities of Mezquita de Jarque, Fuentes Calientes, Canada Vellida and Rillo.

The Allueva wind facility will feature seven turbines and will exceed 25MW.

Sierra Pelarda, in Fonfria, will have four turbines and a capacity of 15MW, as advances in offshore wind turbine technology continue to push scale elsewhere.

The projects bring the total number of wind farms that Enel Green Power Espana has started building in the Teruel province to six, equal to an overall capacity of 218MW.

Endesa chief executive Jose Bogas said: “These plants mark the acceleration on a new wave of growth in the renewable energy space that Endesa is committed to pursue in the next years, driving the energy transition in Spain.”

The six wind farms under construction in Teruel are part of the 540MW that Enel Green Power Espana was awarded in the Spanish government's renewable energy tender held in May 2017.

In Aragon, the company will invest around €434 million euros, reflecting broader European wind power investment trends in recent years, to build 13 wind farms with a total installed capacity of more than 380MW.

The remaining 160MW of wind capacity will be located in Andalusia, Castile-Leon, Castile La Mancha and Galicia, even as some Spanish turbine factories closed during pandemic restrictions.

Enel Green Power Espana was also awarded 339MW of solar capacity in the Spanish government's auction held in July 2017, while other Spanish developers advance CSP projects abroad in markets like Chile.

Once all wind and solar under the 2017 tender are complete they will boost the company’s capacity by around 52%.

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Nigeria Electricity Crisis undermines energy access as aging grid, limited generation, and transmission losses cause power outages, raising costs for businesses and public services; renewables, microgrids, and investment offer resilient, inclusive solutions.

Key Points

A nationwide power gap from weak infrastructure, low generation, and grid losses that disrupt services and growth.

✅ Aging grid and underinvestment drive frequent power outages

✅ Businesses face higher costs, lost productivity, weak competitiveness

✅ Renewables, microgrids, and regulatory reform can expand access

In Nigeria, millions of residents face persistent challenges with access to reliable electricity, a crisis that has profound implications for businesses, public services, and overall socio-economic development. This article explores the root causes of Nigeria's electricity deficit, drawing on 2021 electricity lessons to inform analysis, its impact on various sectors, and potential solutions to alleviate this pressing issue.

Challenges with Electricity Access

The issue of inadequate electricity access in Nigeria is multifaceted. The country's electricity generation capacity falls short of demand due to aging infrastructure, inadequate maintenance, and insufficient investment in power generation and distribution, a dynamic echoed when green energy supply constraints emerge elsewhere as well. As a result, many Nigerians, particularly in rural and underserved urban areas, experience frequent power outages or have limited access to electricity altogether.

Impact on Businesses

The unreliable electricity supply poses significant challenges to businesses across Nigeria. Manufacturing industries, small enterprises, and commercial establishments rely heavily on electricity to operate machinery, maintain refrigeration for perishable goods, and power essential services. Persistent power outages disrupt production schedules, increase operational costs, and, as grids prepare for new loads from electric vehicle adoption worldwide, hinder business growth and competitiveness in both domestic and international markets.

Public Services Strain

Public services, including healthcare facilities, schools, and government offices, also grapple with the consequences of Nigeria's electricity crisis. Hospitals rely on electricity to power life-saving medical equipment, maintain proper sanitation, and ensure patient comfort. Educational institutions require electricity for lighting, technological resources, and administrative functions. Without reliable power, the delivery of essential public services is compromised, impacting the quality of education, healthcare outcomes, and overall public welfare.

Socio-economic Impact

The electricity deficit in Nigeria exacerbates socio-economic disparities and hampers poverty alleviation efforts, even as debates continue over whether access alone reduces poverty in every context. Lack of access to electricity limits economic opportunities, stifles entrepreneurship, and perpetuates income inequality. Rural communities, where access to electricity is particularly limited, face greater challenges in accessing educational resources, healthcare services, and economic opportunities compared to urban counterparts.

Government Initiatives and Challenges

The Nigerian government has implemented various initiatives to address the electricity crisis, including privatization of the power sector, investment in renewable energy projects, and regulatory reforms aimed at improving efficiency and accountability, while examples like India's village electrification illustrate rapid expansion potential too. However, progress has been slow, and challenges such as corruption, bureaucratic inefficiencies, and inadequate funding continue to impede efforts to expand electricity access nationwide.

Community Resilience and Adaptation

Despite these challenges, communities and businesses in Nigeria demonstrate resilience and adaptability in navigating the electricity crisis. Some businesses invest in alternative power sources such as generators, solar panels, or hybrid systems to mitigate the impact of power outages, while utilities weigh shifts signaled by EVs' impact on utilities for future planning. Community-led initiatives, including local cooperatives and microgrids, provide decentralized electricity solutions in underserved areas, promoting self-sufficiency and resilience.

Path Forward

Addressing Nigeria's electricity crisis requires a concerted effort from government, private sector stakeholders, and international partners, informed by UK grid transformation experience as well. Key priorities include increasing investment in power infrastructure, enhancing regulatory frameworks to attract private sector participation, and promoting renewable energy deployment. Improving energy efficiency, reducing transmission losses, and expanding electricity access to underserved communities are critical steps towards achieving sustainable development goals and improving quality of life for all Nigerians.

Conclusion

The electricity crisis in Nigeria poses significant challenges to businesses, public services, and socio-economic development. Addressing these challenges requires comprehensive strategies that prioritize infrastructure investment, regulatory reform, and community empowerment. By working together to expand electricity access and promote sustainable energy solutions, Nigeria can unlock its full economic potential, improve living standards, and create opportunities for prosperity and growth across the country.

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