Octopus Energy’s Post

From 22-25 April, the 26th World Energy Congress took place in Rotterdam. Strategic analysts Laura Birkman and Irina Patrahau represented HCSS as official congress partner. “The 26th World Energy Congress brought together an enormous diversity of people and perspectives,” Laura Birkman reflected. “Central to the discussion was how to move the different global transitions forward, including the energy transition. There are multiple pathways to get there, but a key challenge will be to shift the current focus on supply (alignment of markets) to demand (alignment of people). The social transformation required will necessitate a user-centric system that understands and acts on the needs of people and industry.” For 100 years, the World Energy Congress has convened the cooperative power of the world energy community to turn inspiration into action, exploring innovative solutions to global challenges and shaping the future of energy. “This year’s World Energy Congress was clearly focused on addressing the energy trilemma of affordability, sustainability, and security, recognizing that an energy transition that does not advance societal well-being and environmental sustainability is a failed transition,” Irina Patrahau stated. “Achieving these requires developing context-specific solutions for different geographies and different energy sources, rather than using a one-size-fits-all approach.” The World Energy Congress is the world’s longest established energy event led by the world’s oldest energy community, delivering a world-class, independent and impactful energy gathering on a global scale. Throughout the four days of the Congress meeting, leaders came together to explore solutions on key topics including: the energy transition, e-Mobility, infrastructure, public sector and alternative fuels. “Energy is not about prosperity anymore, but a social justice issue,” Laura Birkman continued. “A just and inclusive energy transition will be key to its success. The challenge of transitioning ‘in’ is just as great as the challenge of transitioning ‘out’. A change making mentality will be critical in a world that is fueled by geopolitical tension and distrust. Focusing on the benefits of the energy transition rather than the costs, can help shift the conversation from winners and losers to a system that can be attractive for all.” https://lnkd.in/eiqnbQJg

Reliability should be top priority

The Surprising State Leading the US Energy Storage Revolution 🏜️⚡ The US energy storage market is growing fast, with Q1 2024 installations up 84% from last year. This growth is creating new opportunities for businesses across many sectors. Here's the key takeaway: While big grid-scale projects are still the largest part of the market, new policies are causing a surge in home battery installations. This could signal a shift towards a more distributed energy future. What does this mean for businesses? 1. Think about getting your own battery storage to cut energy costs and be more resilient 2. Look into opportunities in the booming home battery market 3. Keep an eye on state policies that are driving battery adoption The economic case for batteries is getting stronger: - Prices for large-scale batteries dropped 39% in just one year - There are new ways to make money by helping balance the grid - Early adopters can get ahead in managing their energy use Some interesting trends to watch: 1. Nevada is becoming a leader in combining solar and batteries 2. Shorter-duration batteries are becoming more important for grid services 3. Big projects might slow down due to connection challenges On the policy front: - New rules are helping US battery manufacturers - State policies, like changes to solar rules in California, are reshaping the market - Navigating the process of connecting to the grid is still a big challenge The Gemini project in Nevada, which pairs a huge solar farm with a massive battery, shows how these systems can change regional energy markets. What if the growth of home and business batteries leads to a more resilient, spread-out grid? How might this change the way we think about energy? #EnergyStorage #CleanEnergy #GridResilience #SolarPlusStorage #EnergyTransition https://lnkd.in/g2Q2QG9E

WHAT HAPPENS WHEN A UTILITY SEEKS TO TRIPLE ITS FIXED CHARGE? IT INVITES A REBUKE FROM THE REGULATOR. The denouement in the Silver State was not pretty. Sierra Pacific, the utility which serves the northern service area of NV Energy, had a fixed charge of $16.50 a month, a third higher than the US average of $12 a month. But it was not content. Just about every utility wants a higher fixed charge, as if that is the elixir of life. Some say it will improve the cost reflectivity of rates, others say it will promote electrification, and some others say (behind the scenes), that it will ensure revenue recovery and make the shareholders happy. But I could hardly believe it when I read the news that Sierra Pacific wanted to triple the fixed charge. Of course, the increase was met with a lot of public opposition. QUOTE: "Critics said NV Energy’s proposed hike was designed to protect the utility’s revenue streams from competition with solar and other green technologies. Low-income residents, those on a fixed income, and customers who invested tens of thousands of dollars in rooftop solar, told the PUC they would be disproportionately harmed by the massive proposed hike in the monthly service charge. “We have done everything that’s been asked of us,” Northern Nevada resident Melanie Krause said during public comment, suggesting the utility was trying to “punish” customers for saving energy and not producing enough revenue for the utility. “We freeze in the winter by turning our heat down. We boil in the summer by shutting our AC off. With the huge rate they originally asked for, you’d be out nearly $50 a month if you didn’t even flip on a single light switch.” The good news is that the Commission listened, both to the public and to the utility. It authorized an increase of $2 in the fixed charge, making the new charge of $18.50 more than 50% higher than the US average. It does not always work this way. Several years ago, a midwestern utility applied for an increase in the fixed charge and was awarded with a decrease. Recall what California, the Golden State, went through in the past couple of years. Two of the three IOUs had a zero dollar fixed charge, the third just a few pennies under a dollar. Citing the need to promote affordable electrification, they wanted to impose really high fixed charges on customers but knew that the majority would revolt. So, they decided to "graduate" the fixed charge with income which would actually lower bills for low income customers and for large users. One of the three utilities would have levied a fixed charge of $128 on the highest income tier. What did they get from the Commission? The highest fixed charge would be $24.15. The climb down was dramatic! There are a lot of lessons to be learned here. Be realistic. Benchmark your request. Practice gradualism. Reach out to stakeholders before the filing. #nvenergy #fixedcharge #ratedesign #electricity #pricing #nevada

In a guest article for Proximo, Neha Jatar, CFA, a managing director at EQT Group, examines the growth of microgrids in the US and the role the microgrid sector could play in addressing present and future US energy needs. In this feature, Neha discusses how microgrids are emerging as a solution to the challenges of power demand and supply mismatches caused by rapid load growth, renewables integration, and extreme weather. These systems enhance energy resilience, offer cost savings, and promote sustainability across diverse infrastructures. As microgrids navigate evolving market dynamics, regulations, and investment opportunities, they continue to reshape the US energy landscape.  🔗 Read the full article here: https://lnkd.in/eR6huey3 #Proximo #ProximoIntelligence #Microgrids #RenewablesIntegration #ProjectFinance

AetherCell: Securing Saudi Arabia’s Energy Leadership with Visionary Action Sir Yasir Al Rumayyan, during a pivotal conversation, your forward-thinking vision identified AetherCell as a potential game-changer for Saudi Arabia’s energy future. Today, this moment calls for bold, decisive leadership. Delays now risk handing this transformative opportunity to global competitors—a risk Saudi Arabia cannot afford to take. Why Action Must Happen Now Strategic Threats: Every day AetherCell’s potential remains untapped is an opportunity for rivals to seize its groundbreaking technology. Economic Costs: Delayed action threatens Vision 2030’s momentum. The costs? Lost opportunities to drive innovation, create thousands of jobs, and secure economic resilience. Time lost is revenue lost—a gap Saudi Arabia cannot afford to widen. The time to act is not just critical; it’s existential. The cost of inaction—falling behind as competitors charge ahead—is a permanent loss to Saudi Arabia’s energy leadership. AetherCell: The Key to Unparalleled Gains Economic Impact: With a projected 56% internal rate of return (IRR), profitability within three years, and 177 high-quality jobs created, AetherCell’s economic impact is transformative. This is more than a project; it’s a generational opportunity to secure economic diversification and resilience. Resource Security: By reducing reliance on scarce minerals like lithium, AetherCell ensures Saudi Arabia’s independence from volatile global supply chains. This extends beyond energy—it safeguards critical resources essential for industries such as medicine, aerospace, and technology. Global Energy Leadership: AetherCell positions Saudi Arabia as the definitive leader in renewable energy storage. By capturing this leadership now, the Kingdom reinforces its commitment to sustainability, localization, and innovation, setting a new global standard. A Call to Bold Leadership Sir Al-Rumayyan, your leadership has consistently transformed visionary ideas into tangible successes. This is another defining moment. Your decision to act now will: Secure Saudi Arabia’s control over a technology that could define the next century of energy leadership. Transform Vision 2030 from ambition into reality, ensuring the Kingdom’s place as a global energy and innovation powerhouse. The stakes are clear: hesitation equals opportunity lost. With the feasibility study complete and the technical roadmap in place, AetherCell is ready for action, it needs your decisive guidance to move forward. The World Is Watching—The Time to Lead Is Now The cost of inaction is immeasurable—but the rewards of decisive leadership are unparalleled. I respectfully request your direction to move AetherCell to the appropriate team for execution. Let’s turn this vision into a bold reality. I am prepared to discuss this at your earliest convenience, as the future of Saudi energy leadership cannot wait. Together, we can shape the future—today.

😱 The Shocking Truth About Hawaii's Energy Crisis (And How Businesses Can Cash In) 🏝️🔌 Hawaii's recent power outages have sparked debate about renewables and grid reliability. But beneath the headlines lie massive opportunities for businesses ready to innovate. The real culprit isn't clean energy - it's aging fossil fuel plants breaking down at record rates. Studies show Hawaii's grid can run on 80%+ renewables with the right mix of solar, batteries, and smart tech. The companies that can deliver these integrated solutions will be the winners in the coming boom. Stalled projects mean pent-up demand for those who can navigate the policy maze. Utilities, regulators, developers, and customers all have a role to play in unsticking the transition. Facilitating collaboration will be key. Hawaii is just the beginning. Grids worldwide face similar challenges as renewables scale up. The business models proven here will be in hot demand globally. Pioneering players are already cashing in by packaging solar, storage, and grid services into turnkey products. They've sped up timelines and slashed costs across the islands. But roadblocks remain. Entrenched interests will blame renewables. Supply chain kinks could derail progress. Policymakers may be tempted by dead-end "solutions" like propping up oil plants. The businesses that can overcome these obstacles will reap the rewards of Hawaii's clean energy revolution. How can your company close the grid gaps and meet the moment? Let's brainstorm below! The Aloha State is calling - and fortune favors the bold. #HawaiiCleanEnergy #RenewableResilience #SmartGridPioneers https://lnkd.in/ge_KvM2g

Some action on fixed charges for electricity rates in the US. Some reasons in favour of fixed rates are better cost reflection, promotion of electrifation, amongst others. One option was to link the fixed charge to the income tax system. Could that be an option in Australia? Is there a place for social policy in setting electricity rates?

Press Release: SmartestEnergy calls for a shake-up in Britain’s energy certification scheme to drive investment and build consumer trust in grid decarbonisation Great Britain’s current fuel mix disclosure is nearly 20 years old and no longer fit for purpose, says SmartestEnergy, as it sets out a new approach to put consumers at the heart of the energy transition. 5 December 2024 - SmartestEnergy, the energy company helping Britain’s businesses navigate the energy transition, has published a new position paper calling for a refresh in the way the origin of electricity is verified. Launched at the UK’s inaugural REGO Day taking place today, the paper entitled Hitting Reset: Reforming Britain's Fuel Mix Reporting to Build Consumer Trust advocates to reform the fuel mix disclosure and associated electricity certification scheme. SmartestEnergy is proposing a shift to a more transparent and reliable disclosure – increasing the trust consumers place in Great Britain’s electricity decarbonisation process and simultaneously accelerating investment into it. Vishnu Aggarwal, CFA, Deputy VP Origination and Renewables Trading, SmartestEnergy, said: “We need to hit reset on how we’re disclosing information about the origin of electricity in Great Britain. Businesses are all at different stages in their energy transition, but what unites them is a lack of sufficient clarity to make sound decisions about their energy supply and move confidently towards net zero. To achieve our clean power ambitions as a country, we need an approach that will ensure everyone is better equipped with the necessary data and information to understand the origin of where every MWh of electricity comes from.” Read the full Press Release here : https://lnkd.in/ePFQPiX9