UK 'fully committed' to £8.3bn GB Energy funding

: Electricity
25/03/07

The UK government remains "fully committed" to the £8.3bn ($10.7bn) of funding for GB Energy promised in Labour's manifesto last year, the Treasury told Argus today, following media reports that the government might cut funding.

Media reports earlier today suggested the UK could cut funding to the publicly owned energy company by several billion pounds. But the Treasury reiterated the commitment to the £8.3bn of funding across this parliamentary term announced last year, intended to enable investment and ownership of "clean power" projects across the UK.

A partnership between GB Energy and the Crown Estate to support the development of offshore wind projects was announced last summer. GB Energy will manage and invest in early-stage offshore wind projects that are being developed on seabed land owned by the Crown Estate, with the latter estimating that the partnership will lead to 20-30GW of new offshore wind capacity reaching the seabed leasing stage by 2030. The partnership aims to speed the development and construction of new projects and reduce private investors' risk, potentially leveraging up to £60bn in private investment, the government said.

By Helen Senior

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26/03/26

FERC laments disconnect between hyperscalers, grid

Houston, 26 March (Argus) — The chairman of the Federal Energy Regulatory Commission (FERC) is surprised by how little direct communication the commission receives from hyperscalers, even as data-center growth becomes one of the biggest drivers of US electricity demand. FERC hears "nine times as much" from traditional utilities as it does from the technology companies whose load is reshaping the grid, chairman Laura Swett said at CERAWeek by S&P Global in Houston, Texas, on Thursday. "I don't talk to them as much as I thought they would be coming in," she said, adding that when hyperscalers do engage, many "don't speak FERC", and often misunderstand how utilities operate or how the grid functions. That disconnect is slowing progress on the massive supply-and-demand challenges the power system is now facing, Swett said. Both the tech sector and utilities need more strategic, focused dialogue to keep projects moving as explosive data-center load collides with an aging grid, long construction timelines and FERC's limited jurisdiction over siting and generation, she explained. Swett described a "breakdown in communication" between hyperscalers and grid operators, noting that data center companies are world-class innovators while the power system and its regulatory framework remain highly technical, procedural and slow-moving by design. However, Swett acknowledged FERC's regulations can be inscrutable to newcomers. FERC's processes are "a morass and a black box to your normal, functioning human being" and require "a special category of person to understand", Swett said jokingly, but also noted that communication is crucial. "There's this tension... We're not moving fast enough, but the lack of understanding of what we have to work with is sometimes getting in the way," she said. She also pointed out that the communication gap does not solely lie with hyperscalers, as utilities also have a role to play in translating the grid's technical and regulatory realities for new large-load customers. Some utilities are already "really dexterous" at engaging with tech firms and can "speak in a way that is a common ground of language", she said. "Dialog doesn't have to be lengthy," Swett said. "But pointed communication and education would help us get things done more quickly." By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Nordic data centres to support power demand growth

26/03/26

Nordic data centres to support power demand growth

London, 26 March (Argus) — Nordic data centre power consumption is expected to grow rapidly over the next decade, and Norway's government and transmission system operator (TSO) Statnett remain committed to a "technology-neutral" connections process, they told Argus , despite the region's tightening power balance and data centres often having inflexible consumption patterns. Power consumption from data centres is forecast to reach 28 TWh/yr regionally by 2030 or 5pc of total demand, up from 8TWh or 2pc of demand in 2024, according to projections by Statnett. The TSO forecasts around 4 TWh/yr of consumption in Finland by 2030, doubling compared with 2024, and 8 TWh/yr in Denmark. Norwegian and Swedish data centre consumption is forecast to total 7 TWh/yr and 9 TWh/yr, respectively, by 2030 ( see graph ). But in Norway that figure could be even higher, as the country's reserved capacity for data centres has grown to 3.5GW and its capacity queue to 5.4GW since Statnett published its long-term market analysis for 2050 two years ago. That rapid expansion in a new demand source will coincide with a sharply tightening power balance across the region. Hanging in the balance A tighter power balance will ultimately support higher electricity prices across the region, eroding some of the incentive for data centre operators to position themselves in the Nordics. But the Norwegian energy ministry still expects Norwegian and Nordic prices to remain lower than in northern Europe, allowing the region to retain its competitiveness, it told Argus . That price outlook is expected to lead to some "dampening" of demand from heavy industry and other sectors, the government added. Swedish TSO Svenska Kraftnat this month reduced its demand forecast for every high-consuming sector other than data centres. The Nordic region's ability to meet the substantial new consumption of its data centre fleet remains to be seen over the short term, especially given the limited new production capacity expected by 2030. Svenska Kraftnat forecasts that the regional surplus will fall to 29TWh by 2030 from around 53TWh in 2026. And in Sweden alone, the power surplus is projected to fall by 65pc to 12TWh by 2030, with capacity projected to grow to just 56.1GW from around 50GW in 2026, TSO data show. While the Norwegian government expects Norway and its neighbours to remain competitive, "there is considerable uncertainty regarding how many [queued] projects" will actually be built and when, it told Argus . This uncertainty is based in part on the precedent across all sectors that "not all projects that request or reserve grid capacity are realised", it said. Flexibility matters Data centre consumption is likely to make up a large part of the planned increase in electricity consumption in the coming years in Nordic markets, especially as demand growth in other sectors has slowed relative to expectations, according to Svenska Kraftnat. The region plans to meet part of this demand growth with intermittent renewables, increasing the need for flexibility on their grids, which data centres may not be best placed to provide. Data centres "can have different operational characteristics depending on the technology and services they provide", the Norwegian energy ministry said, acknowledging that these projects will "differ in their incentives and possibilities to react to [power price] fluctuations... and participate in balancing markets [e.g. demand-side response]". Data centres — broadly those providing cloud computing services and capacity for artificial intelligence (AI) — operate with an "always-up" requirement, offering constant availability and demanding electricity at all times, albeit with some predictable variability, with consumption lowest around 04:00, according to Norwegian grid data provider Elhub. That contrasts with data centres focused on cryptocurrency mining, which can be unpredictable and produce rapid swings in consumption according to the market value of their output currency. While mainstream cloud and AI centres offer predictable consumption patterns that are easy to integrate within long-term network and system plans, according to Elhub, they also introduce a high-consuming yet inflexible and non-price responsive block of demand onto the network, at a time when network flexibility is a critical policy objective at the national, Nordic and European level. But despite data centres having a different consumption profile to other high-consuming industrials, the Norwegian government noted that it "does not classify specific sectors as firm or interruptible load" and that the responsible authorities must assess grid connections using a "neutral and non-discriminatory framework", it told Argus . And it confirmed that there are "no plans to move away from the current principles of neutrality". Statnett confirmed that it is "required to treat all sectors equally". At the same time, distribution system operators have "an obligation to connect customers, as long as it is socioeconomically rational", Statnett said. By Daniel Craig Data centre consumption, actual and forecast TWh/yr Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Germany presents new climate action programme

26/03/25

Germany presents new climate action programme

Berlin, 25 March (Argus) — Germany's cabinet today presented a climate action programme with a strong focus on renewable power and industry electrification, encompassing 67 measures designed to cut greenhouse gas (GHG) emissions by 27mn t/yr of CO2 equivalent (CO2e) until 2030, although the country's climate experts warned that it is unlikely to achieve these reductions. The measures will plug the 25mn t CO2e annual reduction gap flagged in last year's official forecasts, environment minister Carsten Schneider said. The forecasts have since been superseded by data presented by federal environment office UBA earlier this month indicating a 42mn t/yr CO2e gap. The main drivers of the action programme are additional tenders for onshore wind power capacity over 12GW, and an extra €2.9bn of subsidies for industry electrification projects. The additional wind installations are expected to achieve emissions reductions of 6.5mn t CO2e in 2030 and lower wholesale power prices by €6/MWh, Schneider said. The majority will be installed in the relatively wind-poor but energy-hungry south of the country, or in priority areas, so it will not be affected by potential future legislation limiting grid access, Schneider said. Industrial electrification subsidies are expected to lead to emissions reductions of 4.3mn t CO2e in 2030. And Schneider stressed that his ministry expects the transport and buildings sectors, which have been lagging behind in recent years, to accelerate decarbonisation in the late 2020s. A €3bn subsidy scheme with income-based support will allow for the purchase of about 800,000 electric vehicles, leading to emissions savings of 1mn t CO2e in 2030. And the government expects the planned road transport GHG reduction quota now under parliamentary scrutiny to yield emissions reductions of 6.3mn t CO2e in 2030, while funding for new heat grids will save 2.3mn t CO2e in 2030. Germany's land use, land use change and forestry (LULUCF) sector will receive €4.7bn across 23 measures including the rewetting of peatlands and conversion of forests, although the effects will be felt mainly after 2030, Schneider said. Proposals by the economy ministry , which would take pressure off fossil fuel heating systems, are likely to be counterbalanced by the current energy crisis, Schneider said, as homeowners buying a new heating system are now likely to think differently about investing in another gas-fired system. The climate action plan will make Germany "more modern and more independent of oil and gas", Schneider said, reducing its natural gas consumption by almost 7 bcm³ in 2030 and its petrol consumption by about 4bn litres — down by 9pc on current annual levels, Schneider said. The government was legally obliged to present a climate action programme under the country's climate action law, and it must also be scrutinised by parliament. Germany aims to cut its emissions by 65pc in 2030 compared with 1990 levels. They stood 48pc below 1990 levels last year. The country's council of experts on climate change ERK, tasked with scrutinising the programme, said today that it lacks novelty and ambition and is unlikely to achieve the expected reductions. The ERK, which said it was commenting subject to a more detailed review, criticised the government's strong focus on the energy sector and its insufficient relief for households on low and middle incomes, particularly in the heating sector, even though the need for social measures to accompany climate change policy will continue to grow. The ERK urged the government to look at more innovative measures such as "white certificates" for energy efficiency or a bonus-malus system for cars. It is "questionable" whether the programme's measures "adequately" address the challenge of restructuring Germany's fossil fuel-dependent "capital stock", Potsdam Institute for Climate Impact Research chief economist Ottmar Edenhofer said. It lacks "credible" policy instruments providing "clear incentives" to switch to technologies such as electric cars or heat pumps, added Edenhofer, who is also chair of the European Scientific Advisory Board on Climate Change. Germany's solar association BSW flagged the "gap between aspiration and reality", given the economy and energy ministry's plans to axe support for small-scale rooftop solar systems. And German wood industry association HDH warned against restrictions to forestry management, which it said will limit the supply of raw materials for climate-friendly timber construction. Environmental group DUH announced it will once again sue the government for the programme unless it is improved, particularly regarding the transport sector. DUH won a case against the government's previous climate action programme in January . The climate action programme stands on "shaky ground", think-tank Agora Energiewende director Julia Blaesius warned, given that it is based on outdated data and in light of planned legislation changes. Blaesius emphasised the importance of a "reliable" carbon price to provide planning and investment security to households and companies, as well as revenues for Germany's climate and transformation fund, which finances much of the programme's measures. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Texas power sector seeks 'real' load behind AI hype

26/03/25

Texas power sector seeks 'real' load behind AI hype

Houston, 25 March (Argus) — Texas' power industry is scrambling to determine how much electricity data center growth will actually require, warning that without credible forecasts the state risks wasting billions of dollars on unnecessary infrastructure and saddling customers with sharply higher bills. "I don't think there's a lot of confidence in the numbers that are out there now," Thomas Gleeson, chairman of the Public Utility Commission of Texas (PUCT), told a panel at CERAWeek by S&P Global in Houston, Texas, Wednesday. "When you don't know what is real, you really don't know how to build the infrastructure for it," he said Texas grid operator ERCOT has forecasted up to 250GW of peak demand by 2030, but industry officials on the panel said those figures are widely understood to be inflated by speculative interconnection requests that obscure the amount of load that will materialize. Developers and utilities described queues crowded with "ghost" applications from land speculators seeking free options on power, making it difficult for system planners to separate genuine demand from noise. Retail electricity provider and power generator Vistra sees Texas' load growth likely to run around 5pc a year through at least 2030, a figure that is still "astounding" given how flat demand had been for decades, said senior vice president of regulatory policy J. Arnold Quinn. Even though that 5pc is far lower than the triple-digit forecasts circulating in the market, sustaining even 5pc annual growth will require market reforms to support new generation and grid upgrades, he said. To get a truer sense of demand, data-center developers Crusoe and Vistra said they are incorporating other data onto the traditional forecasting process, including semiconductor shipment forecasts, hyperscaler capital spending disclosures and early-stage data-center construction tracking. Because AI load is constrained by how many chips the supply chain can actually deliver and by what cloud providers are financially committing to build, panelists at the conference said those metrics offer a more realistic ceiling on how much new demand Texas will need to serve over the next decade. Texas regulators are weighing new interconnection rules that would require customers seeking to connect 75 MW or more to show real financial commitment before securing a place in ERCOT's queue. The proposed process would impose stricter financial security requirements to prioritize less-speculative projects, which panelists agreed should help thin out the queue. "That should start to trim down this ghost-load problem and get us closer to reality," said Crusoe co-founder and chief strategy officer Cully Cavness. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Behind-the-meter buildouts hurt grid: AWS, Dominion

26/03/24

Behind-the-meter buildouts hurt grid: AWS, Dominion

Houston, 24 March (Argus) — The surge in behind-the-meter (BTM) power generation reflects a grid and interconnection system failing to keep pace with demand and stands in the way of efforts needed to rehaul the grid, industry speakers told a panel today. "If you look at a lot of the development that's happening now, more and more of it's going behind the meter, and that's a bad outcome for the industry," Amazon Web Service (AWS) vice president Kerry Person told a panel at CERAWeek by S&P Global in Houston, Texas. "Players are taking energy generation into their own hands because the system is not keeping up." As demand for artificial intelligence (AI) surges, more data-center developers are building their own on-site generation rather than relying on the grid because they cannot get connected fast enough through the traditional interconnection process. The private power plants risk locking in expensive, high-emissions infrastructure instead of pushing investment into proper grid upgrades, renewables, and demand-response initiatives, panelists said. "Grid-connected is always better," said Dominion Energy Virginia president Ed Baine. "It's better for the customer who was thinking about building on-site generation. It's better for the collective customers on the grid." The shift toward self-supply makes it harder for utilities to implement demand-response mechanisms that several panelists described as one of the best potential tools for easing grid stress. Data centers rarely run their facilities at full peak load, meaning they could reduce consumption or switch to backup resources when the grid is strained. Demand-response measures only work if loads are integrated into the system and visible to operators. While the technology exists to enable such coordination, today's market rules do not incentivize data centers and other large consumers to curtail load. Additionally, regulations tightly control when operators can use their own generating equipment and do not allow them to determine when to switch to back-up, making many of them unwilling to reduce their load. If the wealthiest companies decide to go on their own and build private power plants, it undermines a collective push for regulatory overhauls that could improve efficiencies. These private power plants are meant to be temporary "bridge" solutions, but once these BTM, fossil fuel-fed plants have permits and sunk costs, they risk becoming permanent and intensifying a growing community backlash against data center development, said Schneider Electric president Aamir Paul. Of the 40GW of BTM power projects that Schneider Electric is tracking, 80pc of them say they intend to connect to the grid and 20pc are saying they will remain off-grid. BTM solutions have included natural gas turbines, diesel generators and even repurposed aircraft engines, said Paul. "You know people aren't going to be excited about that, right?" said Paul, noting that these alternatives could further stoke public outcry from local residents. "The islanded-forever, fossil-fuel intensive solution is not practical or good." By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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