News round-up, July 31, 2023
Thoughts of a day on Monday the 31st
Lagarde’s Eurozone “Crisis” Press Conference on July 27, Resembles “Lord of the Flies”
On Thursday, July 27th, Mrs Christine Lagarde, the President of the European Central Bank, delivered a significant announcement from Frankfurt, Germany. Stepping onto the stage with her Vice-President, Luis de Guindos, Lagarde’s solemn countenance suggested the severity of the impending situation to be disclosed. Without delay, Lagarde tackled the complicated economic environment in the Eurozone. She disclosed that the Governing Council had resolved to raise the three primary ECB interest rates by 25 basis points once again this year.
Lagarde seemed concerned as she spoke confidently, without her usual French accent. She emphasized that challenges still needed to be addressed despite the ongoing difficulties. She brought up the Russian invasion of Ukraine ("Natural Gas War"), which has made the already unstable economic situation even more complex. This could have implications for the global energy industry, which we must closely monitor.
Lagarde’s discourse evoked vivid imagery reminiscent of the classic novel, “The Lord of the Flies,” writted by Nobel Prize-winning British author William Golding in 1954. The parallels between Golding’s literary masterpiece and the current geopolitical climate are striking. We find ourselves confronted with deep-rooted social divisions not limited solely to Europe. These divisions arise from conflicting religious ideologies, diverse political systems, and an innate human tendency towards avarice and ambition.
Just as the characters in “The Lord of the Flies” grapple with their instincts and desires, the world faces similar struggles in navigating these societal divides. However, the consequences of these divisions extend beyond the realm of survival on a deserted island. Our interconnected global community demands unity and cooperation to overcome such challenges. Lagarde’s allusion to this profound connection between literature and the present situation reminds us of the underlying complexities plaguing our civilization.
Golding’s novel, set on a deserted island, is an allegory that highlights the flaws of human nature. It showcases how the moral order disintegrates, and chaos ensues when individuals are devoid of societal norms and structures. In the global environment, we observe the breakdown of international alliances, the emergence of populist movements and a decline in institutional trust. These divisions and conflicts have consequences not only in politics but also in the economy.
Lagarde discussed the Russian-Ukrainian conflict, emphasizing the impact on the energy sector and the vulnerability caused by the interdependence of economies. Similarly, William Golding’s novel, “The Lord of the Flies,” showcased his understanding of the future implications of geopolitical dynamics, evident even back in 1954. Reflecting on his experiences as a soldier during World War II, Golding concluded that all humans possess an innate capacity for evil. The aftermath of the war prompted the author to contemplate whether humanity could establish order in the wake of a nuclear conflict.
In “The Lord of the Flies,” written during the height of the “atomic age” marked by the post-WWII fear of nuclear attacks, the novel grapples with humanity’s anxieties. The onset of the Cold War and the nuclear arms race between the United States and Russia intensified these concerns, as people worldwide lived in constant dread of another catastrophic bombing resembling Oppenheimer’s project in Japan. Against this backdrop, the novel raises vital questions about human nature and its inclination toward self-destruction. It explores universal themes, considering the possibility of a moral movement emerging for the greater good. Can humans overcome their inherent self-destructive tendencies? This thought-provoking novel seeks answers to these pressing questions.
Now, what does Mrs. Lagarde tell us?
Inflation remains a concern despite decline
This is why we are committed to ensuring that inflation returns to our target of two percent in the medium term. As a result, the Governing Council has decided to raise the three key ECB interest rates by 25 basis points.
Eurozone's economic outlook worsens
”The economic outlook for the eurozone is deteriorating due to various factors such as weaker domestic demand, inflation, and tighter credit conditions. These issues are impacting consumer spending and manufacturing output. Additionally, inflation and tighter credit conditions are dampening consumer spending, which in turn is affecting manufacturing output and weak external demand. Housing and business investment are also deteriorating, while the services sector remains resilient. Consequently, the economy is expected to remain weak in the short term.
Withdrawal of support measures crucial
”As the energy crisis starts to fade, it is important for governments to withdraw related support measures in a timely and coordinated manner. This is critical in order to prevent medium-term inflationary pressures from escalating. Failure to do so would require a more aggressive monetary policy response.
Inflation figures for June
”The inflation rate for the month of June continued to decrease, reaching 5.5 percent compared to 6.1 percent in May. Energy prices experienced a significant drop of 5.6 percent year on year. However, although food price inflation slowed down, it still remained high at 11.6 percent. Excluding energy and food, inflation rose to 5.5 percent, with goods and services showing opposing trends.
Economic Growth and Inflation Outlook Remains Uncertain
”The global economic growth and inflation outlook are uncertain, with several downside risks. One major concern is Russia's unjustified war against Ukraine, which contributes to geopolitical tensions that could fragment global trade and impact the euro area economy, leading to slower growth. On the other hand, there are upside risks to inflation. Russia's withdrawal from the Black Sea Grain Initiative could lead to upward pressure on energy and food costs. Additionally, the climate crisis and adverse weather conditions may raise food prices beyond projections, contributing to higher inflation. Other factors like a rise in inflation expectations, higher wages or profit margins, and stronger transmission of monetary policy could also drive inflation higher over the medium term. Furthermore, there has been significant tightening in financial and monetary conditions recently, adding to the complexity of the economic landscape. In conclusion, both economic growth and inflation face uncertainty, with downside risks to growth and upside risks to inflation.
Why have we found ourselves in this predicament?
The predictions made by William Golding in his book “The Lord of the Flies” in 1954 are of such magnitude that they must be examined. Lagarde's X-ray of the European economy is clear but a cause for concern. In this way, the deep political divisions within countries are a significant source of concern. However, the global geopolitical framework has undergone significant transformations in recent times, shifting from a bipolar structure to a much more interconnected and complex world. The current stage is distinguished by a state of multipolarity characterized by political and religious extremism, raising concerns about the potential disintegration of the global nation-state system. Aggression in imperialist crusades exacerbates the situation.
Plato, in his seminal work on political principles written over two millennia ago, outlined the art of statecraft. His principles, however, must still be considered in modern political decision-making. Plato believed that conflicting interests within society could be reconciled. It is critical to inquire as to why certain politicians do not comprehend the fundamental logic of this philosophy.
Source: https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod230727_episode65.en.htmlMost read…
Trump Crushing DeSantis and G.O.P. Rivals, Times/Siena Poll Finds
The twice-indicted former president leads across nearly every category and region, as primary voters wave off concerns about his escalating legal jeopardy.
NYT By Ashley Wu, By Shane Goldmacher, July 31, 2023Elon Musk’s Latest Mission: Rev Up the Electricity Industry
‘My biggest concern is that there’s insufficient urgency,’ the billionaire tells energy executives
TWSJ by Tim Higgins, July 29, 2023 Sunrun CEO Mary Powell Loves Big Problems
The solar-power executive says the energy industry is facing a ‘consumer-led revolution’
WSJ by Emily Bobrow, July 28, 2023
UK will issue hundreds of new oil and gas licenses in North Sea
The British government said the plan is to secure energy reserves while still aiming for net zero carbon emissions by 2050.
Le Monde with AFP, today at 9:15 am
The climate law the EU (conveniently) forgot
Talks on the Energy Taxation Directive have stalled over fears of political backlash.
POLITICO EU by VICTOR JACK AND ZIA WEISE, JULY 26, 2023 
At the COA Spring Gala 2023, Andrés Gluski, the CEO & President of AES and Chairman of the Americas Society/Council of the Americas, presented President Lacalle Pou with the prestigious Gold Insigne. This award was given in recognition of President Lacalle Pou's outstanding leadership in successfully transforming Uruguay into a prominent technology and innovation hub, all while upholding a thriving democracy and robust economy.
Source: NYT Trump Crushing DeSantis and G.O.P. Rivals, Times/Siena Poll Finds
The twice-indicted former president leads across nearly every category and region, as primary voters wave off concerns about his escalating legal jeopardy.
NYT By Ashley Wu, By Shane Goldmacher, July 31, 2023Former President Donald J. Trump is dominating his rivals for the Republican presidential nomination, leading his nearest challenger, Gov. Ron DeSantis of Florida, by a landslide 37 percentage points nationally among the likely Republican primary electorate, according to the first New York Times/Siena College poll of the 2024 campaign.
Mr. Trump held decisive advantages across almost every demographic group and region and in every ideological wing of the party, the survey found, as Republican voters waved away concerns about his escalating legal jeopardy. He led by wide margins among men and women, younger and older voters, moderates and conservatives, those who went to college and those who didn’t, and in cities, suburbs and rural areas.
The poll shows that some of Mr. DeSantis’s central campaign arguments — that he is more electable than Mr. Trump, and that he would govern more effectively — have so far failed to break through. Even Republicans motivated by the type of issues that have fueled Mr. DeSantis’s rise, such as fighting “radical woke ideology,” favored the former president.
Overall, Mr. Trump led Mr. DeSantis 54 percent to 17 percent. No other candidate topped 3 percent support in the poll.
Below those lopsided top-line figures were other ominous signs for Mr. DeSantis. He performed his weakest among some of the Republican Party’s biggest and most influential constituencies. He earned only 9 percent support among voters at least 65 years old and 13 percent of those without a college degree. Republicans who described themselves as “very conservative” favored Mr. Trump by a 50-point margin, 65 percent to 15 percent.
Still, no other serious Trump challenger has emerged besides Mr. DeSantis. Former Vice President Mike Pence, the former United Nations ambassador Nikki Haley and Senator Tim Scott of South Carolina each scored 3 percent support. Chris Christie, the former New Jersey governor, and Vivek Ramaswamy, an entrepreneur, each received support from just 2 percent of those polled.
Yet even if all those candidates disappeared and Mr. DeSantis got a hypothetical one-on-one race against Mr. Trump, he would still lose by a two-to-one margin, 62 percent to 31 percent, the poll found. That is a stark reminder that, for all the fretting among anti-Trump forces that the party would divide itself in a repeat of 2016, Mr. Trump is poised to trounce even a unified opposition.
The survey comes less than six months before the first 2024 primary contest and before a single debate. In an era of American politics defined by its volatility, Mr. Trump’s legal troubles — his trials threaten to overlap with primary season — pose an especially unpredictable wild card.
For now, though, Mr. Trump appears to match both the surly mood of the Republican electorate, 89 percent of whom see the nation as headed in the wrong direction, and Republicans’ desire to take the fight to the Democrats.
The 2024 G.O.P. Presidential Candidates
Donald Trump. The former president is running to retake the office he lost in 2020. Though somewhat diminished in influence within the Republican Party — and facing several legal investigations — he retains a large and committed base of supporters, and he could be aided in the primary by multiple challengers splitting a limited anti-Trump vote.
Ron DeSantis. The combative governor of Florida, whose official entry into the 2024 race was spoiled by a glitch-filled livestream over Twitter, has championed conservative causes and thrown a flurry of punches at America’s left. He provides Trump the most formidable Republican rival he has faced since the former president’s ascent in 2016.
Chris Christie. The former governor of New Jersey, who was eclipsed by Trump in the 2016 Republican primary, is making a second run for the White House, setting up a rematch with the former president. Christie has positioned himself as the G.O.P. hopeful who is most willing to attack Trump.
Mike Pence. The former vice president, who was once a stalwart supporter of Trump but split with him after the Jan. 6 attack, launched his campaign with a strong rebuke of his former boss. An evangelical Christian whose faith drives much of his politics, Pence has been notably outspoken about his support for a national abortion ban.
Tim Scott. The South Carolina senator, who is the first Black Republican from the South elected to the Senate since Reconstruction, has been one of his party’s most prominent voices on matters of race. He is campaigning on a message of positivity steeped in religiosity.
Nikki Haley. The former governor of South Carolina, who was a U.N. ambassador under Trump, has presented herself as a member of “a new generation of leadership” and emphasized her life experience as a daughter of Indian immigrants. She was long seen as a rising G.O.P. star, but her allure in the party has declined amid her on-again, off-again embrace of Trump.
Vivek Ramaswamy. The multimillionaire entrepreneur describes himself as “anti-woke” and has made a name for himself in right-wing circles by opposing corporate efforts to advance political, social and environmental causes. He has promised to go farther down the road of ruling by fiat than Trump would or could.
More G.O.P. candidates. The former Texas congressman Will Hurd, Mayor Francis Suarez of Miami, Gov. Doug Burgum of North Dakota, former Arkansas Gov. Asa Hutchinson and the conservative talk radio host Larry Elder have also launched long-shot bids for the Republican presidential nomination. Read more about the 2024 candidates.
“He might say mean things and make all the men cry because all the men are wearing your wife’s underpants and you can’t be a man anymore,” said David Green, 69, a retail manager in Somersworth, N.H., said of Mr. Trump. “You got to be a little sissy and cry about everything. But at the end of the day, you want results. Donald Trump’s my guy. He’s proved it on a national level.”
Both Mr. Trump and Mr. DeSantis maintain strong overall favorable ratings from Republicans, 76 percent and 66 percent. That Mr. DeSantis is still so well liked after a drumbeat of news coverage questioning his ability to connect with voters, and more than $20 million in attack ads from a Trump super PAC, demonstrates a certain resiliency. His political team has argued that his overall positive image with G.O.P. voters provides a solid foundation on which to build.
But the intensity of the former president’s support is a key difference as 43 percent of Republicans have a “very favorable” opinion of Mr. Trump — a cohort that he carries by an overwhelming 92 percent to 7 percent margin in a one-on-one race with Mr. DeSantis.
By contrast, Mr. DeSantis is stuck in an effective tie with Mr. Trump, edging him 49 percent to 48 percent, among the smaller share of primary voters (25 percent) who view the Florida governor very favorably.
In interviews with poll respondents, a recurring theme emerged. They like Mr. DeSantis; they love Mr. Trump.
“DeSantis, I have high hopes. But as long as Trump’s there, Trump’s the man,” said Daniel Brown, 58, a retired technician at a nuclear plant from Bumpass, Va.
Stanton Strohmenger, 48, a maintenance technician, said he was supporting Mr. Trump.Credit...Maddie McGarvey for The New York Times
“If he wasn’t running against Trump, DeSantis would be my very next choice,” said Stanton Strohmenger, 48, a maintenance technician in Washington Township, Ohio.
A number of respondents interviewed drew a distinction between Mr. DeSantis’s accomplishments in Tallahassee and Mr. Trump’s in the White House.
Image by WSJElon Musk’s Latest Mission: Rev Up the Electricity Industry
‘My biggest concern is that there’s insufficient urgency,’ the billionaire tells energy executives
TWSJ by Tim Higgins, July 29, 2023 Elon Musk wants more power—literally.
The man behind the race to replace gasoline-fueled cars with electric ones is worried about having enough juice.
In recent days he has reiterated those concerns, predicting U.S. consumption of electricity, driven in part by battery-powered vehicles, will triple by around 2045. That followed his saying earlier this month that he anticipates an electricity shortage in two years that could stunt the energy-hungry development of artificial intelligence.
“You really need to bring the time scale of projects in sooner and have a high sense of urgency,” Musk told energy executives Tuesday at a conference held by PG&E, one of the nation’s largest utilities. “My biggest concern is that there’s insufficient urgency.”
Musk’s participation with PG&E Chief Executive Patti Poppe at the power company’s conference marked the third major energy event the billionaire has appeared at in the past 12 months. He has played the part of Cassandra, trying to spark more industry attention on the infrastructure required for his EV and AI futures as he advocates for a fully electric economy.
“I can’t emphasize enough: we need more electricity,” Musk said last month at an energy conference in Austin. “However much electricity you think you need, more than that is needed.”
The U.S. energy industry in recent years already has struggled at times to keep up with demand, resorting to threats of rolling blackouts amid heat waves and other demand spikes. Those stresses have rattled an industry undergoing an upheaval as old, polluting plants are being replaced by renewable energy. Utilities are spending big to retool their systems to be greener and make them more resilient. Deloitte estimates the largest U.S. electric companies together will spend as much as $1.8 trillion by 2030 on those efforts.
Adding to the challenge is an industry historically accustomed to moving slowly, partly because of regulators aiming to protect consumers from price increases.
And that has been mostly OK. For the past 20 years, U.S. electricity demand has grown at an average rate of 1% each year, according to a Deloitte study.
“If you have a fairly static electricity demand, which has been the case in the U.S. for a while, it hasn’t changed a lot, then having projects take a long time is OK,” Musk said Tuesday. “But in a rapidly changing scenario, where electricity demand is increasing, we have to move much faster.”
Executives and consultants do see stark change coming—but not as dramatic as what Musk predicts.
Deloitte estimates the top U.S. electric companies together will spend as much as $1.8 trillion by 2030 to revamp their systems to be greener and more resilient. PHOTO: DAVID PAUL MORRIS/BLOOMBERG NEWS
PG&E expects electricity demand will rise 70% in the next 20 years, which, the California company notes, would be unprecedented. Similarly, McKinsey expects U.S. demand will double by 2050.
“This is an opportunity of the century for the power sector, and they could blow it if they don’t get it right,” Michael Webber, an energy resources professor at the University of Texas, Austin, said of the industry. “This demand growth is partly from EVs, but also heat pumps, data centers, AI, home devices…you name it.”
PG&E’s Poppe seemed receptive to Musk’s warning, if not exactly leaping to update her plans. “We are definitely taking notes here,” she told Musk. “I’m going to be the last person to doubt your predictions for the future.”
Part of the differing views of growth may boil down to how Musk wants the world to change. He wants cars and heating systems running on electricity.
His push for tripling output is part of his advocacy for a transition to a fully electric economy, a more ambitious step than many in the industry are pursuing.
Beyond seeking a greener future, Musk is also warning that a lack of electricity could be crippling, much like the recent chips shortage that damaged the tech and auto industries. This time, it might stunt the burgeoning development of AI.
“My prediction is that we will go from…an extreme silicon shortage today to…an electricity shortage in two years,” Musk said during an event earlier this month to discuss his new startup, xAI, which aims to develop advanced intelligence. “That’s roughly where things are trending.”
Rabble-rousing isn’t new for Musk. His entrepreneurial career has long involved jawboning entrenched industries, attempting to bend their plans and spending to his will and ambitions.
A decade ago, his predictions for electric-car growth were seen by some as wildly optimistic, but his determination helped make him the world’s richest man and Tesla the world’s most valuable automaker.
As the chief executive of Tesla, Musk does have a vested interest in more electricity, especially as he chases the goal of being able to build 20 million EVs annually by 2030. Tesla is centered around the mission of ushering in renewable energy and has smaller parts of its business selling solar panels and battery storage, including to utilities.
One of Musk’s solutions is to better optimize the grid by running power plants around-the- clock and storing the energy not used during peak hours in battery packs for use later. “I’m not sure it might be as much as a 2x gain…but it’s at least 50% to 100% increase in total energy output,” Musk said recently.
He is advocating for more electricity at the same time he is stoking demand. And no place in the U.S. better illustrates that than in California, where car buyers continue to embrace EVs sold by him and others.
The success of Tesla helped EVs make up 21% of new vehicle registrations in the state through the first half of this year, an increase from just 5.2% in all of 2019. Nationally, EVs haven’t yet grabbed market share like they have in California, but sales are growing. Musk predicts half of all new vehicles sold globally by 2030 will be electric.
The rate of EV load on the energy grid has surprised Edison International, company CEO Pedro Pizarro said.
At the June conference, Pizarro was on stage with Musk, who told the energy executive that his prediction of 60% demand growth in California by 2045 wasn’t enough, saying, “I think it’s much more load than that.”
“It may be,” Pizarro responded as awkward laughter erupted in the auditorium full of energy executives.
“Uh, by like a lot,” Musk continued. “It’s just, everything is going to be electric.”
Elon Musk Rolls Out New X Logo as Twitter Rebrands
A few weeks later, in an interview, Pizarro said he was still thinking about the exchange.
While he still doesn’t see demand tripling, Pizarro said, the company’s predictions for electricity demand will likely be higher than 60% once it finishes reviewing what changes state mandates and consumer preferences are having on their assumptions, which were originally made in 2019.
“Right now,” Pizarro said of Musk, “we may have, maybe, a little different view in terms of a matter of degree in what is a practical approach but I appreciate that he is putting a marker out there.”
At the Energy Summit 2923 in Santo Domingo, Dominican Republic, Edwin De los Santos, President of AES DOMINICANA, emphasized the company's strong commitment to global environmental preservation.
“The relationship between energy and development is symbiotic and interdependent. “
Source: Mary Powell photographed at her home in Vermont, July 2023. OLIVER PARINI FOR THE WALL STREET JOURNALSunrun CEO Mary Powell Loves Big Problems
The solar-power executive says the energy industry is facing a ‘consumer-led revolution’
WSJ by Emily Bobrow, July 28, 2023 As Texans suffer record-breaking heat, many are staying cool thanks to an unexpected savior: solar energy. New solar farms and panels on homes have increased solar capacity in Texas sixfold since 2019, supplying around 15% of the state’s electricity during peak hours, according to the state’s grid operator. When some coal and gas plants suffered outages in June, Texas’s solar panels, wind turbines and giant batteries helped keep air conditioners humming.
This, says Mary Powell, is a taste of the future. As the CEO of California-based Sunrun, the largest residential solar and energy storage company in the U.S., she hopes to help lead what she calls “a consumer-led revolution to a different kind of energy system.” Powell, 62, notes that volatile fuel prices and catastrophic weather events have raised demand for technology that liberates people from the uncertainty of aging power grids: “We have to remember we have an energy system that is essentially over 100 years old, and it wasn’t built for economic efficiency.” Sunrun operates in Texas and 21 other states plus Washington, D.C., and Puerto Rico.
Only around 4% of U.S. homes generate solar electricity today, according to the U.S. Energy Information Administration. Many electric and gas utilities are lobbying for regulations and fees that would hinder further investments in renewables, out of concern that customers who use solar power may end up abandoning the grid entirely. Powell, who ran Green Mountain Power (GMP), Vermont’s largest utility, for over a decade, argues that this is “such a short-sighted view.” She compares the opposition of utilities to the heel-dragging of traditional phone companies in the face of cellular technology decades ago: “You don’t resist innovation that consumers want and that can improve society. You figure out how to lean into it.”
Growing up in an artsy household on Manhattan’s Upper West Side, Powell didn’t aspire to a corner office. “I call myself the accidental executive,” she says. The youngest child of Addison Powell, an award-winning actor, she used to pity anyone who wore a suit to work. Yet she learned to be practical at a young age, in part because her father was often between jobs. She did a lot of babysitting and dog-walking for neighbors: “I knew I needed to be self-supporting.”
Powell used her savings to earn an associate degree at Keene State College in New Hampshire, where she studied art but did not see a future in it. She pondered a bartending course, but the $850 fee put her off. Instead, in 1980 she got a job as a technical writer and administrative assistant at the Manhattan-based Reserve Primary Fund, a pioneering money-market fund, whose assets grew from $200 million to $3.5 billion in her eight years there. She rose to associate director of operations, and while she admits the business itself didn’t fascinate her, she took pride in “disrupting the banking model” by giving customers better returns than they could get through their banks.
By 1989 Powell wanted off the treadmill, so she and her husband Mark Brooks, a chef, moved to Vermont. She directed human resources for the state government, serving three governors in less than four years. “Seeing how individuals could shape policy has informed so much of the work I have done,” she says.
Powell didn’t much like telling people what they should be doing: ‘I actually want to be the one doing it.’
Powell started her own human resources consulting firm in 1997, hoping for a new start after a difficult year in which she lost her mother, gave birth to her daughter and saw her home destroyed in a fire. Yet she soon learned that she didn’t much like telling people what they should be doing: “I actually want to be the one doing it.”
She sought GMP as a client, but they wanted to hire her instead. Powell declined job offers from its CEO three times but then relented, joining as vice president of HR in 1998. Without an engineering background, she worried that she would find the work of a utility hard to master. Instead, she says, “What struck me was how ripe it was for disruption.” Powell used the threat of bankruptcy to restructure the company, flattening the hierarchy and reducing the staff through buyouts and retirements.
After she became CEO in 2008, GMP built solar and wind farms and offered financing for some customers to install residential solar panels and batteries, which allowed them to sell excess energy back to the grid at times of peak demand. “You’re leveraging assets that consumers have invested in to help make the entire grid more affordable and resilient,” she explains. By using energy from residential batteries, GMP sometimes “saved half a million bucks in a few hours.”
During Powell’s tenure, GMP was named to Fast Company’s Most Innovative Companies list four years running. But she says “the awards let a complacency set in when we need to be scaling faster.” She stepped down as CEO in 2019: “I found out how fast the fastest-moving utility could move in America and it wasn’t fast enough for me,” she says. In 2021 she took the top job at Sunrun, having served on the company’s board since 2018.
Today Sunrun controls 18% of the residential solar market, ahead of competitors such as SunPower and Tesla. Tax credits from last year’s climate bill are making solar panels more attractive to homeowners, and in May the company reported a 20% rise in sales year over year. But high interest rates and rising equipment costs have been challenging for a business that relies on installing rooftop solar systems for little money up front and then charging a monthly fee. Another obstacle is the permitting process for installing solar panels, which varies from place to place. “For someone who loves big problems,” Powell says, “it’s been right up my alley.”
With heat waves challenging energy grids across the country, Powell sees a growing demand for new options. She points to Sunrun’s partnership with Ford as a sign of what’s to come. The company’s bidirectional charger makes it possible to juice up Ford’s new electric F-150 pickup truck with solar power, and also to use the truck’s battery to power a home through a blackout for around 10 days. “More people,” she says, “want more control over how they power their homes.”
Image: Germán & CoCooperate with objective and ethical thinking…
Source: MediaUK will issue hundreds of new oil and gas licenses in North Sea
The British government said the plan is to secure energy reserves while still aiming for net zero carbon emissions by 2050.
Le Monde with AFP, today at 9:15 am
The UK government said on Monday, July 31, it would issue "hundreds" of new oil and gas licenses in the North Sea to secure energy reserves while still aiming for net zero carbon emissions by 2050.
"Investment in the North Sea will continue to unlock new projects, protect jobs, reduce emissions and boost UK energy independence," Prime Minister Rishi Sunak's office said in a statement. It added that "a more flexible application process" would be applied for the license requests, which would still be subject to a "climate compatibility" test for carbon reduction goals.
"The government is taking steps to slow the rapid decline in domestic production of oil and gas, which will secure our domestic energy supply and reduce reliance on hostile states," it said.
Moscow's ongoing invasion of Ukraine, launched in February 2022, saw a global surge in energy prices as Western nations imposed sanctions against Moscow, targeting in particular its massive oil and gas exports.
"We have all witnessed how Putin has manipulated and weaponized energy – disrupting supply and stalling growth in countries around the world," Sunak said in the statement, referring to Russian President Vladimir Putin. "Now more than ever, it's vital that we bolster our energy security and capitalize on that independence to deliver more affordable, clean energy."
A study released Monday by the North Sea Transition Authority (NSTA) said the carbon footprint from domestic UK gas production was one-fourth the footprint from imported liquified natural gas. It also confirmed plans to build two more carbon-capture facilities along the North Sea coast, at Acorn in northeast Scotland and Viking near Humber, England, alongside two already under construction. It said the four clusters could support up to 50,000 jobs by 2030.
Sunak is due to visit an energy infrastructure site later Monday in Aberdeenshire to "highlight the central role the region will play in strengthening the UK's energy independence and meet the next generation of skilled apprentices key to driving this work forward."
Seaboard: pioneers in power generation in the country…
…“More than 32 years ago, back in January 1990, Seaboard began operations as the first independent power producer (IPP) in the Dominican Republic. They became pioneers in the electricity market by way of the commercial operations of Estrella del Norte, a 40MW floating power generation plant and the first of three built for Seaboard by Wärtsilä.
“In Brussels, they’re already pretty much in election mode and so pushing this one forward in the time of high consumer prices and high energy prices is considered not very opportune” | Simon Maina/AFPThe climate law the EU (conveniently) forgot
Talks on the Energy Taxation Directive have stalled over fears of political backlash.
POLITICO EU by VICTOR JACK AND ZIA WEISE, JULY 26, 2023 With next year's European election fast approaching and policy work slowly drawing to a close, Brussels lawmakers have largely managed the Herculean task of pushing through the bloc’s Green Deal climate laws.
But gathering dust deep inside the EU's labyrinthine legislative machine lies one green law largely forgotten by the bloc’s politicians.
Talks on revising the 20-year-old Energy Taxation Directive, proposed as part of the European Commission’s Fit for 55 climate package that aims to slash emissions by 55 percent by 2030, have stalled.
Critics argue that negotiations ground to a halt because policies seen to add to already high energy prices have become politically toxic, especially as Brussels moves into campaign season. Others say striking a deal was never going to be easy, given changing EU tax rules requires unanimous backing from all 27 of the bloc’s members.
“It’s stalling … because [the EU’s] member states are not calling for an agreement and because the Commission is not putting enough pressure,” said a diplomat from one EU country involved in negotiations, who was granted anonymity to speak freely on the dynamics between countries.
“In Brussels, they’re already pretty much in election mode and so pushing this one forward in the time of high consumer prices and high energy prices is considered not very opportune,” the diplomat added, putting the chances of a deal in the next two years at “under 50 percent.”
Others go further, arguing the legislation should be condemned to the scrapheap. “We see a need for a new Energy Tax Directive because the current one is outdated,” said a second national diplomat, adding that more than one EU capital was pushing for the same outcome.
In limbo
The original directive, implemented back in 2003, sets out minimum rates of tax for different types of energy products including diesel, gasoline and electricity.
Currently, the EU sets a fixed rate of tax based on the volume — or euros per liter — of fuel, which the Commission now argues is incompatible with the bloc’s green ambitions since it doesn’t account for the environmental impact of fuels and exempts polluting sectors like aviation.
In 2021, the EU executive proposed changes that would see new rates based on the energy content and environmental performance of fuels, and scrap several long-held exemptions.
But the file has remained at the technical working party level since, the first diplomat said, arguing the problem was political since the actual legislative discussions are “quite advanced.”
It’s not the first time the law has faced challenges. In 2015, the Commission was forced to withdraw its previous proposed revision after four years of disagreement among EU countries.
MEPs have limited powers to amend the law and can only give an opinion | Julien Warnand/EFE via EPA
In the European Parliament, too, the file is facing prolonged delays.
Although MEPs have limited powers to amend the law and can only give an opinion, the Parliament’s chief negotiator on the file, Belgian MEP Johan Van Overtveldt, sent a letter earlier this month asking the Commission to carry out a new impact assessment before talks proceed, claiming that the current one, issued in 2021, was outdated.
“The decision was taken to suspend the discussions on the ETD until we get a clear impact assessment from the Commission,” said Van Overtveldt, a lawmaker from the right-wing European Conservatives and Reformists group. His letter was co-signed by Socialists & Democrats MEP Irene Tinagli, who chairs the economic affairs committee.
A Commission spokesperson said the EU executive would “reply soon” to Van Overtveldt’s letter, and insisted that the current impact assessment ensured “coherence with other Fit for 55 proposals.”
The Commission is pressing countries "to continue now working constructively towards an adoption of the proposal as soon as possible," the spokesperson added.
Taxing debate
Despite the delays, a reform of tax rules has gained widespread support from industry and NGOs.
“The current version … reflects the power system of the past,” said Savannah Altvater, a policy officer at electricity lobby Eurelectric, since it sets higher minimum rates for electricity than for gas and thereby “disincentivizes electrification” — and by extension decarbonization.
The taxes set under the ETD account for about 2 percent of EU electricity tariffs on average; any reduction under a reformed directive would help consumers as all the taxes currently charged by governments add up to 41 percent of total power bills
That’s “really hurting the industry,” she said. “If the gas bill is a lot lower than the electricity bill, then at the end of the day, you're going to keep the gas boiler over the heat pump.”
The reform would give a clear, immediate incentive for consumers to switch to products running on greener fuels since these would be cheaper, said Luke Haywood, climate policy manager at the European Environmental Bureau NGO. Failure to clinch a deal on the file "would make it more difficult" for the EU to hit its climate targets, he added.
Even the fuel industry, which would likely see its tax rates — including for gasoline and diesel — increase under the plans, is supportive.
“We've been pushing very hard for a revision because … it would have been a good incentive for the production and the use of renewable fuels” such as biodiesel, said Alain Mathuren, communications director at the FuelsEurope lobby.
But that’ll mean overcoming stiff opposition from some countries.
“What has probably ... played a role in all this is that there certainly was no appetite for this at the Council level,” said Van Overtveldt.
Particularly amid the rising cost of living, he added, “I got the impression that the general feeling was 'OK, this is not a moment to do it' ... If the purchasing power of citizens has already been that much attacked, if I may use that word, you should be very hesitant about going any further down that road at this particular point in time.”
Even before inflation spiked following Russia’s invasion of Ukraine, EU capitals were sharply divided, according to the first diplomat, with Western European countries including France pushing for the changes and Central European countries largely resistant.
Mediterranean countries with maritime and tourism industries, including Greece, Cyprus and Malta, are also concerned about the reform meaning new taxes for shipping and aviation, they added.
Now, as the EU’s Green Deal faces a growing political backlash, “more progressive” countries “are scared to bring it up at the political level,” according to the diplomat.
“That could be the death bed of it.”