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Germany renewable energy milestone 2019 saw wind, solar, hydropower, and biomass outproduce coal and nuclear, as low gas prices and high CO2 costs under the EU ETS reshaped the electricity mix, per Fraunhofer ISE.

Key Points

It marks H1 2019 when renewables supplied 47.3% of Germany's electricity, surpassing coal and nuclear.

✅ Driven by high CO2 prices and cheap natural gas

✅ Wind and solar output rose; coal generation declined sharply

✅ Flexible gas plants outcompeted inflexible coal units

In Lippendorf, Saxony, the energy supplier EnBW is temporarily taking part of a coal-fired power plant offline. Not because someone ordered it — it simply wasn't paying off. Gas prices are low, CO2 prices are high, and with many hours of sunshine and wind, renewable methods are producing a great deal of electricity as part of Germany's energy transition now reshaping operations. And in the first half of the year there was plenty of sun and wind.

The result was a six-month period in which renewable energy sources, a trend echoed by the EU wind and solar record across the bloc, produced more electricity than coal and nuclear power plants together. For the first time 47.3% of the electricity consumers used came from renewable sources, while 43.4% came from coal-fired and nuclear power plants.

In addition to solar and wind power, renewable sources also include hydropower and biomass. Gas supplied 9.3%, reflecting how renewables are crowding out gas across European power markets, while the remaining 0.4% came from other sources, such as oil, according to figures published by the Fraunhofer Institute for Solar Energy Systems in July.

Fabian Hein from the think tank Agora Energiewende stresses that the situation is only a snapshot in time, with grid expansion woes still shaping outcomes. For example, the first half of 2019 was particularly windy and wind power production rose by around 20% compared to the first half of 2018.

Electricity production from solar panels rose by 6%, natural gas by 10%, while the share of nuclear power in German electricity consumption has remained virtually unchanged despite a nuclear option debate in climate policy.

Coal, on the other hand, declined. Black coal energy production fell by 30% compared to the first half of 2018, lignite fell by 20%. Some coal-fired power plants were even taken off the grid, even as coal still provides about a third of Germany's electricity. It is difficult to say whether this was an effect of the current market situation or whether this is simply part of long-term planning, says Hein.

Activists storm German mine in anti-coal protest

It is clear, however, that an increased CO2 price has made the ongoing generation of electricity from coal more expensive. Gas-fired power plants also emit CO2, but less than coal-fired power plants. They are also more efficient and that's why gas-fired power plants are not so strongly affected by the CO2 price

The price is determined at a European level and covers power plants and energy intensive industries in Europe. Other areas, such as heating or transport are not covered by the CO2 price scheme. Since a reform of CO2 emissions trading in 2017, the price has risen sharply. Whereas in September 2016 it was just over €5 ($5.6), by the end of June 2019 it had climbed to over €26.

Ups and downs

Gas as a raw material is generally more expensive than coal. But coal-fired power plants are more expensive to build. This is why operators want to run them continuously. In times of high demand, and therefore high prices, gas-fired power plants are generally started up, as seen when European power demand hit records during recent heatwaves, since it is worth it at these times.

Gas-fired power plants can be flexibly ramped up and down. Coal-fired power plants take 11 hours or longer to get going. That's why they can't be switched on quickly for short periods when prices are high, like gas-fired power plants. In the first half of the year, however, coal-fired power plants were also ramped up and down more often because it was not always worthwhile to let the power plant run around the clock.

Because gas prices were particularly low in the first half of 2019, some gas-fired power plants were more profitable than coal-fired plants. On June 29, 2019, the gas price at the Dutch trading point TTF was around €10 per megawatt hour. A year earlier, it had been almost €20. This is partly due to the relatively mild winter, as there is still a lot of gas in reserve, confirmed a spokesman for the Federal Association of the Energy and Water Industries (BDEW). There are also several new export terminals for liquefied natural gas. Additionally, weaker growth and trade wars are slowing demand for gas. A lot of gas comes to Europe, where prices are still comparatively high, reported the Handelsblatt newspaper.

The increase in wind and solar power and the decline in nuclear power have also reduced CO2 emissions. In the first half of 2019, electricity generation emitted around 15% less CO2 than in the same period last year, reported BDEW. However, the association demands that the further expansion of renewable energies should not be hampered. The target of 65% renewable energy can only be achieved if the further expansion of renewable energy sources is accelerated.

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India Coal Power PLF rose as capacity utilisation improved on rising peak demand and hydropower shortfall; thermal plants lifted plant load factor, IPPs lagged, and generation beat program targets amid weak rainfall and slower snowmelt.

Key Points

Coal plant load factor in India rose in May on higher demand and weak hydropower, with generation beating targets.

✅ PLF rose to 65.3% as demand climbed

✅ Hydel generation fell 14% YoY on poor rainfall

✅ IPP PLF at 57.8%, below 60% debt comfort

Capacity utilisation levels of coal-based power plants improved in May because of a surge in electricity demand and lower generation from hydroelectric sources. The plant load factor (PLF) of thermal power plants went up to 65.3% in the month, 1.7 percentage points higher than the year-ago period.

While PLFs of central and state government-owned plants were 75.5% and 64.5%, respectively, the same for independent power producers (IPPs) stood at 57.8%, even as coal and electricity shortages eased across the market. Though PLFs of IPPs were higher than May 2017 levels, it failed to cross the 60% mark, which eases debt servicing capabilities of power generation assets.

Thermal power plants generated 96,580 million units (MU) in May, 4% more than the programme set for the month and 5.2% higher than last year, partly supported by higher imported coal volumes in the market. On the other hand, hydel plants produced 10,638 MU, 10% lower than the target, reflecting a 14% decline from last year.

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Peak demand of power on the last day of the month was 1,62,132 MW, 4.3% higher than the demand registered in the same day a year ago, underscoring India's position as the third-largest electricity producer globally.

According to sources, hydropower plants have been generating lesser than expected electricity due to inadequate rainfall and snow melting at a slower pace than previous years, even as the US reported a power generation jump year on year. Data for power generation from renewable sources have not been made available yet.

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We Energies rate increase driven by nuclear energy costs at Point Beach, Wisconsin PSC filings, and rising utility rates, affecting electricity prices for residential, commercial, and industrial customers while supporting WEC carbon reduction goals.

Key Points

A 2021 utility rate hike to recover Point Beach nuclear costs, modestly raising Wisconsin electricity bills.

✅ Residential bills rise about $0.73 per month

✅ Driven by $55.82/MWh Point Beach contract price

✅ PSC review and consumer advocates assessing alternatives

Wisconsin's largest utility company is again asking regulators to raise rates to pay for the rising cost of nuclear energy.

We Energies says it needs to collect an additional $26.5 million next year, an increase of about 3.4%.

For residential customers, that would translate to about 73 cents more per month, or an increase of about 0.7%, while some nearby states face steeper winter rate hikes according to regulators. Commercial and industrial customers would see an increase of 1% to 1.5%, according to documents filed with the Public Service Commission.

If approved, it would be the second rate increase in as many years for about 1.1 million We Energies customers, who saw a roughly 0.7% increase in 2020 after four years of no change, while Manitoba Hydro rate increase has been scaled back for next year, highlighting regional contrasts.

We Energies' sister utility, Wisconsin Public Service Corp., has requested a 0.13% increase, which would add about 8 cents to the average monthly residential bill, which went up 1.6% this year.

We Energies said a rate increase is needed to cover the cost of electricity purchased from the Point Beach nuclear power plant, which according to filings with the Securities Exchange Commission will be $55.82 per megawatt-hour next year.

So far this year, the average wholesale price of electricity in the Midwestern market was a little more than $25.50 per megawatt-hour, and recent capacity market payouts on the largest U.S. grid have fallen sharply, reflecting broader market conditions.

Owned and operated by NextEra Energy Resources, the 1,200-megawatt Point Beach Nuclear Plant is Wisconsin's last operational reactor. We Energies sold the plant for $924 million in 2007 and entered into a contract to purchase its output for the next two decades.

Brendan Conway, a spokesman for WEC Energy Group, said customers have benefited from the sale of the plant, which will supply more than a third of We Energies' demand and is a key component in WEC's strategy to cut 80% of its carbon emissions by 2050, amid broader electrification trends nationwide.

"Without the Point Beach plant, carbon emissions in Wisconsin would be significantly higher," Conway said.

As part of negotiations on its last rate case, WEC agreed to work with consumer advocates and the PSC to review alternatives to the contracted price increases, which were structured to begin rising steeply in 2018.

Tom Content, executive director of the Citizens Utility Board, said the contract will be an issue for We Energies customers into the next decade

"It's a significant source (of energy) for the entire state," Content said. "But nuclear is not cheap."

WEC filed the rate requests Monday, one week after the withdrawing similar applications. Conway said the largely unchanged filings had "undergone additional review by senior management."

WEC last week raised its second quarter profit forecast to 67 to 69 cents per share, up from the previous range of 58 to 62 cents per share.

The company credited better than expected sales in April and May along with operational cost savings and higher authorized profit margin for American Transmission Company, of which WEC is the majority owner.

Wisconsin's other investor-owned utilities have reported lower than expected fuel costs for 2020 and 2021, even as emergency fuel stock programs in New England are expected to cost millions this year.

Alliant Energy has proposed using about $31 million in fuel savings to help freeze rates in 2021, aligning with its carbon-neutral electricity plans as it rolls out long-term strategy, while Xcel Energy is proposing to lower its rates by 0.8% next year and refund its customers about $9.7 million in fuel costs for this year.

Madison Gas and Electric is negotiating a two-year rate structure with consumer groups who are optimistic that fuel savings can help prevent or offset rate increases, though some utilities are exploring higher minimum charges for low-usage customers to recover fixed costs.

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BC Ferries Island Class hybrid ferries deliver quiet, battery-electric travel with shore power readiness, lower emissions, and larger capacity on northern routes, protecting marine wildlife while replacing older vessels on Powell River and Texada services.

Key Points

Hybrid-electric ferries using batteries and diesel for quiet, low-emission service, ready for shore power upgrades.

✅ Operate 20% electric at launch; future full-electric via shore power

✅ 300 passengers, 47 vehicles; replacing older, smaller vessels

✅ Quieter transits help protect West Coast whales and marine habitat

In a champagne celebration, BC Ferries welcomed two new, hybrid-electric ships into its fleet Wednesday. The ships arrived in Victoria last month, and are expected to be in service on northern routes by the summer.

The Island Aurora and Island Discovery have the ability to run on either diesel or electricity.

"The pressure on whales on the West Coast is very intense right now," said BC Ferries CEO Mark Collins. "Quiet operation is very important. These ships will be gliding out of the harbor quietly and electrically with no engines running, that will be really great for marine space."

BC Ferries says the ships will be running on electricity 20 per cent of the time when they enter service, but the company hopes they can run on electricity full-time in the future. That would require the installation of shoreline power, which the company hopes to have in place in the next five to 10 years. Each ship costs around $40-million, a price tag that the federal government partially subsidized through CIB support as part of the electrification push.

When the two ships begin running on the Powell River to Texada, and Port McNeill, Alert Bay, and Sointula routes, two older vessels will be retired.

On Kootenay Lake, an electric-ready ferry is slated to begin operations in 2023, reflecting the province's wider shift.

"They are replacing a 47-car ferry, but on some routes they will be replacing a 25-car ferry, so those routes will see a considerable increase in service," said Collins.

Although the ships will not be servicing Colwood, the municipality's mayor is hoping that one day, they will.

"We can look at an electric ferry when we look at a West Shore ferry that would move Colwood residents to Victoria," said Mayor Rob Martin, noting that across the province electric school buses are hitting the road as well. "Here is a great example of what BC Ferries can do for us."

BC Ferries says it will be adding four more hybrid ships to its fleet by 2022, and is working on adding hybrid ships that could run from Victoria to Tsawwassen, similar to Washington State Ferries' hybrid upgrade underway in the region. 

B.C’s first hybrid-electric ferries arrived in Victoria on Saturday morning ushering in a new era of travel for BC Ferries passengers, as electric seaplane flights are also on the horizon for the region.

“It’s a really exciting day for us,” said Tessa Humphries, spokesperson for BC Ferries.

It took the ferries 60 days to arrive at the Breakwater District at Ogden Point. They came all the way from Constanta, Romania.

“These are battery-equipped ships that are designed for fully electric operation; they are outfitted with hybrid technology that bridges the gap until the EV charging infrastructure and funding is available in British Columbia,” said Humphries.

The two new "Island Class" vessels arrived at about 9 a.m. to a handful of people eagerly wanting to witness history.

Sometime in the next few days, the transport ship that brought the new ferries to B.C. will go out into the harbor and partially submerge to allow them to be offloaded, Humphries said.

The transfer process could happen in four to five days from now. After the final preparations are finished at the Breakwater District, the ships will be re-commissioned in Point Hope Maritime and then BC Ferries will officially take ownership.

“We know a lot of people are interested in this so we will put out advisory once we have more information as to a viewing area to see the whole process,” said Humphries.

Both Island Class ferries can carry 300 passengers and 47 vehicles. They won’t be sailing until later this year, but Humphries tells CTV News they will be named by the end of February. 

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Hydro One Avista merger faces regulatory scrutiny in Washington, Oregon, and Idaho, as political risk outweighs defensive utilities fundamentals like stable cash flow, rate base growth, EPS outlook, and a near 5% dividend yield.

Key Points

A planned Hydro One-Avista acquisition awaiting key state approvals amid elevated political and regulatory risk.

✅ Hold rating, $24 price target, 28.1% implied return

✅ EPS forecast: $1.27 in 2018; $1.38 in 2019

✅ Defensive utility: stable cash flow, 4-6% rate base growth

A seemingly positive development for Hydro One is overshadowed by ongoing political and regulatory risk, as seen after the CEO and board ouster, Industrial Alliance Securities analyst Jeremy Rosenfield says.

On October 4, staff from the Washington Utilities and Transportation Commission filed updated testimony in support of the merger of Hydro One and natural gas distributor Avista, which had previously received U.S. antitrust clearance from federal authorities.

The merger, which was announced in July of 2017 has received the green light from federal and key states, with Washington, Oregon and Idaho being exceptions, though the companies would later seek reconsideration from U.S. regulators in the process.

But Rosenfield says even though decisions from Oregon and Idaho are expected by December, there are still too many unknowns about Hydro One to recommend investors jump into the stock.

Hydro One stock defensive but risky

“We continue to view Hydro One as a fundamentally defensive investment, underpinned by (1) stable earnings and cash flows from its regulated utility businesses (2) healthy organic rate base and earning growth (4-6%/year through 2022) and (3) an attractive dividend (~5% yield, 70-80% target payout),” the analyst says. “In the meantime, and ahead of key regulatory approvals in the AVA transaction, we continue to see heightened political/regulatory risk as an overhand on the stock, outweighing Hydro One’s fundamentals in the near term.”

In a research update to clients today, Rosenfield maintained his “Hold” rating and one year price target of $24.00 on Hydro One, implying a return of 28.1 per cent at the time of publication.

Rosenfield thinks Hydro One will generate EPS of $1.27 per share in fiscal 2018, even though its Q2 profit plunged 23% as electricity revenue fell. He expects that number will improve to EPS of $1.38 a share the following year.

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Philippsburg Demolition Delay: EnBW postpones controlled cooling-tower blasts amid the coronavirus pandemic, affecting decommissioning timelines in Baden-Wurttemberg and grid expansion for a transformer station to route renewable power and secure supply in southern Germany.

Key Points

EnBW's COVID-19 delay of Philippsburg cooling-tower blasts, affecting decommissioning and grid plans.

✅ Controlled detonation shifted to mid-May at earliest

✅ Demolition links to transformer station for north-south grid

✅ Supports security of supply in southern Germany

German energy company EnBW said the coronavirus outbreak has impacted plans to dismantle its Philippsburg nuclear power plant in Baden-Wurttemberg, southwest Germany, amid plans to phase out coal and nuclear nationally.

The controlled detonation of Phillipsburg's cooling towers will now take place in mid-May at the earliest, subject to coordination as Germany debates whether to reconsider its nuclear phaseout in light of supply needs.

However, EnBW said the exact demolition date depends on many factors - including the further development in the coronavirus pandemic and ongoing climate policy debates about energy choices.

Philippsburg 2, a 1402MWe pressurised water reactor unit permanently shut down on 31 December 2019, as part of Germany's broader effort to shut down its remaining reactors over time.

At the end of 2019, the Ministry of the Environment gave basic approval for decommissioning and dismantling of unit 2 of the Philippsburg nuclear power plant, inluding explosive demolition of the colling towers. Since then EnBW has worked intensively on getting all the necessary formal steps on the way and performing technical and logistical preparatory work, even as discussions about a potential nuclear resurgence continue nationwide.

“The demolition of the cooling towers is directly related to future security of supply in southern Germany. We therefore feel obliged to drive this project forward," said Jörg Michels head of the EnBW nuclear power division.

The timely removal of the cooling towers is important as the area currently occupied by nuclear plant components is needed for a transformer station for long-distance power lines, an issue underscored during the energy crisis when Germany temporarily extended nuclear power to bolster supply. These will transport electricity from renewable sources in the north to industrial centres in the south.

As of early 2020, there six nuclear reactors in operation in Germany, even as the country turned its back on nuclear in subsequent years. According to research institute Fraunhofer ISE, nuclear power provided about 14% of Germany's net electricity in 2019, less than half of the figure for 2000.

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