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Energy transition or energy expansion?

By Sean Sweeney, John Treat, and Daniel Chavez - Trade Unions for Energy Democracy and Trans National Institute, October 22, 2021

From politicians to corporate executives, media commentators to environmental campaigners, narratives evoking the “unstoppable” progress of a global transition from fossil fuels to renewable energy have grown increasingly commonplace.

However, in reality, the global shifts in energy production, energy usage and greenhouse gas emissions we urgently need are not happening:

  • In 2019, over 80% of global primary energy demand came from fossil fuels, with global greenhouse gas emissions at record levels.
  • In 2020, wind and solar accounted for just 10% of global electricity generated.
  • Despite stories of its decline, coal-fired power generation continues to rise globally. In 2020, global efforts to decommission coal power plants were offset by the new coal plants commissioned in China alone, resulting in an overall increase in the global coal fleet of 12.5 GW.

Recently, some have argued that the Covid-19 pandemic and subsequent contraction in economic activity signal a turning point. Indeed, global energy demand fell by nearly 4% in 2020, while global energy-related CO2 emissions fell by 5.8% — the sharpest annual decline since the second world war.

Despite these short-term shifts, the pandemic has failed to result in any significant long-term changes for the energy sector or associated emissions:

  • Global energy-related CO2 emissions are projected to grow by 4.8% in 2021, the second highest annual rise on record.
  • Demand for all fossil fuels is set to rise in 2021.6 A 4.6% increase in global energy demand is forecast for 2021, leaving demand 0.5% higher than 2019 levels.
  • By the end of 2020 electricity demand had already returned to a level higher than in December 2019, with global emissions from electricity higher than in 2015.
  • By the end of 2020, global coal demand was 3.5% higher than in the same period in 2019. A 4.5% rise in coal demand is forecast for 2021, with coal demand increasing 60% more than all renewables growth combined and undoing 80% of the 2020 decline.
  • Oil demand is forecast to rebound by 6% in 2021, the steepest rise since 1976. By 2026, global oil consumption is projected to reach 104.1 million barrels per day (mb/d), an increase of 4.4 mb/d from 2019 levels.

As such, an energy transition with the depth and speed necessary for meeting the 2015 Paris Agreement shows no sign of materializing. Indeed, most of the world’s major economies are not on track to reach their Nationally Determined Contributions (NDCs) on emissions reductions.

These facts point to a clear conclusion: the dominant, neoliberal climate policy paradigm, which deploys a “sticks and carrots” approach that attempts to disincentivize fossil fuels through carbon pricing, while promoting low-carbon investment through subsidies and preferential contractual arrangements has been completely ineffective. This policy paradigm positions governments as guardians and guarantors of the profitability of private actors, thus preventing them from addressing social or environmental challenges head-on.

Read the text (PDF).

People's Utility Justice Playbook​

By Yesenia Rivera and Johanna Bozuwa - Energy Democracy Project, October 2021

Have you ever wondered who is in charge of your electricity? And why?

The People’s Utility Justice Playbook has two components:

  1. a “History of Utilities” report to summarize the history of utilities for everyone to understand how our current energy system originated.
  2. a “People’s Utility Justice Playbook” to expose the tactics from electric utilities that are undermining community’s efforts, so we can build our organizing strength—to not only fight back but also to build the democratic energy system for climate justice.

This is the basic information we need to fight back against energy utilities attempting to slow or stop progress toward economic and climate justice.

History of Utilities​

Electric utilities have expanded into almost every aspect of our lives to become one of the most powerful and concentrated industries on Earth. To have a better understanding of what we’re fighting against, we first need to learn about the history of energy utilities! This PDF summarizes the entire timeline and how the rise of energy democracy came about.

People's Utility Justice Playbook

In order to fight the industry-owned utilities’ tactics, we need our own strategies for combat!

We have our very own playbook sourced from energy justice activists on the ground. They suggest strategies and tactics they employ when fighting against utilities that anyone fighting against utilities could use!

Read the History (PDF).

Read the Playbook (PDF).

Support the Striking UTIER Utility Workers in Puerto Rico!

By Carol Wheeler - International Workers Committee, July 4, 2021

As the Puerto Rican Electrical Industry and Irrigation Workers Union (UTIER) celebrates its 79th year, its union members are waging a fierce battle to save Puerto Rico’s power grid from the devastating effects of privatization. 

On June 22, 2020, the public utility Puerto Rico Electric Power Authority (PREPA) entered into a contract with LUMA Energy Corp., a joint U.S.-Canadian private conglomerate, for the operation and maintenance of the electric power transmission and distribution system. PREPA has been a public service for over 80 years. Massive debt, deteriorating infrastructure, and finally the devastation of Hurricane Maria in 2017 gave the U.S. government and Big Business what they had been seeking for some time — the full privatization of the Puerto Rican power grid and PREPA. 

Now, an expected $20 billion in emergency federal funds distributed through FEMA will allow LUMA Corp. to use the Hurricane Maria disaster to enrich its stockholders while doing little to fix the problems that exist with the Puerto Rican power grid. 

The contract signed between LUMA and the Puerto Rican government destroys the collective bargaining agreement between PREPA and its 3,000-plus workers, organized in UTIER. It undermines their pensions and allows the employer to set up a “preferred workers’ representative.” 

Written behind closed doors, without the input of elected officials accountable to Puerto Ricans, the contract effectively turns a public utility into a private monopoly. It allows LUMA to unilaterally determine the type of power to inject into the grid and includes no mandates or even any incentives to comply with local and federal renewable energy objectives. 

Most egregiously, LUMA has no obligation to remain in Puerto Rico in the case of a future natural disaster. LUMA could abandon its commitments, leaving Puerto Rico without any power company at all. 

UTIER workers have been on strike for months. They have taken to the streets along with other public-and private-sector unions to demand cancellation of the contract with LUMA. They have warned that the agreement with LUMA will increase the cost of electricity and destroy the jobs and livelihood of thousands of workers and their families. They have spearheaded mass mobilizations, national days of protest, and even a 24-hour nationwide general strike. 

Green Left Show #14: Why nuclear is NOT a climate solution

Puerto Rican workers: No peace if energy is privatized

By various - Workers World, June 7, 2021

On June 1, the Financial Oversight and Management Board overseeing Puerto Rico’s economy privatized the island’s public power utilities by signing a $1.3 billion contract with private consortium LUMA Energy. The contract, in effect for the next 15 years, could increase electric rates by 10 cents/kwh or more.

LUMA customers are already encountering new fees and significantly higher bills than formerly paid to the public Puerto Rican Electric Power Authority. Thousands of PREPA workers have lost their jobs. The privatization has fueled demonstrations including encampments and picket lines at plant gates. Further actions could lead to mass protests similar to those in summer 2019 that forced former Governor Pedro Rosselló to resign.

The following is a statement from unions representing thousands of Puerto Rican workers, ranging from teachers to truck drivers, in support of PREPA workers and demanding the LUMA contract be repealed.

Puerto Rico unions close ranks against LUMA Energy

By Wilmarilis Sánchez-Romeu and Edwin Ocasio Feliciano - Struggle La Lucha, June 4, 2021

Union organizations today warned Gov. Pedro Pierluisi and the Financial Oversight and Management Board that they will paralyze the country if the LUMA Energy contract that increases rates, allows the consortium to leave Puerto Rico if a hurricane strikes, and displaces thousands of workers, is not canceled.

“We are warning the attorney for the Financial Oversight and Management Board, Pedro Pierluisi, that there will be no peace in Puerto Rico if the contract is not repealed and they listen to the people who demand, not only a public and more efficient Puerto Rico Electric Power Authority (PREPA), but also one free of fossil fuels. 

“Right now there is a favorable atmosphere for paralyzing the country and if the governor continues to ignore the people, we will do so. We have already held several meetings to coordinate logistics and dates, and this week we will meet again to finalize details. Make no mistake, this summer will be one very similar to that of 2019,” said Carlos Rodríguez, coordinator of the Frente Amplio de Camioneros (Broad Front of Truckers).

“Today, we tell LUMA not to bother settling in our country since we will not leave them alone until they leave Puerto Rico. And the workers who they intend to bring in from abroad should know that if they cross the picket line, they will face a people willing to defend their energy sovereignty and their access to water. There is no life without water and electricity! 

Public energy companies necessary for a fair transition

By Dries Goedertier - Trade Unions for Energy Democracy, April 19, 2021

The debacle with the reversing electricity meter [also called “net-metering” in many contexts — a billing mechanism that credits solar capacity owners for electricity they feed into the grid] shows the limits of Flemish energy policy, which places the responsibility for the much-needed energy transition in the hands of the individual as consumer, investor and entrepreneur. For a socially just and democratic energy transition, the necessary efforts of energy cooperatives will not be sufficient. Only the state can regain control of the energy sector on behalf of, and for the benefit of, society as a whole.

Flemish energy policy has recently suffered from a severe heat stroke. The Constitutional Court has put an end to the reversing electricity meter. The decision dealt a heavy blow to those families who, after the (apparently worthless) guarantees of a bunch of liberal energy ministers about the legality of this particular support scheme, decided to install solar panels on their roofs before the deadline of January 1, 2021. Many of them feel cheated and that is certainly understandable. However, a critical inquiry should not stop there. The whole debacle shows the limits of an energy policy that places the responsibility for the much-needed energy transition in the hands of the individual as a consumer, investor and entrepreneur. 

“The sun has become a neoliberal investment product,” stated Dirk Holemans (Oikos). Holemans, together with Dirk Vansintjan (Ecopower & REScoop.EU), is arguing for a shift to a collective model in which citizens pool their resources and capacities in energy cooperatives. There is indeed a lot to be said for that. After all, energy cooperatives have a lot to offer in terms of democratic, social and ecological benefits. 

If we really want to democratize the energy sector in function of social and environmental objectives, then public energy companies will have to play a major part

In my opinion, however, the admirable self-organization of thousands of citizens will not be enough to break the dominance of the current for-profit energy model. The market power of the established players is simply too great for that. Only the state has the capacities, resources and potentially democratic legitimacy to regain control of the energy sector on behalf of and for the benefit of society as a whole. 

If we really want to democratize the energy sector in the service of social and ecological objectives, then public energy companies will have to play a major part. This does not have to be at the expense of energy cooperatives, as is sometimes incorrectly claimed. I am convinced that energy cooperatives in a public-driven model of energy democracy will actually have more opportunities to unleash their potential. But in order for that to happen, we must dare to question the liberalization of the energy sector. 

Political deregulation of Texan grid to blame for near total collapse & bills of $15,000+

By Andy Rowell - Oil Change International, February 25, 2021

If shivering with cold dark for days in sub-zero temperatures was not enough for many Texans, those lucky enough to still have electricity during the recent freezing weather have been hit with exorbitant electricity bills.

In some cases unlucky customers have been charged a whopping USD $15,000 for one month’s power, or put another way over 70 times the normal cost people pay for all their utilities.

One customer Susan Hosford of Denison told the AP that normally she pays around $2.50 for power per day, but got charged $1,346.17 for the first two weeks of February. “This whole thing has been a nightmare,” she said.

Another customer, Karen Knox, a teacher in Bedford, not only lost power but now owes $7,000 to Griddy, an electricity provider located in Houston. She told the Texas Tribune there was no way she could pay.

Such is the outcry that Governor Greg Abbott, a Republican who is heavily funded by Big Oil, had to hold an emergency meeting with legislators to discuss the outrageous bills.

Abbott and others are now promising relief for those hit by sky-high bills, although how people are compensated is yet to be worked out.

As the anger has grown, so too has the political fall-out and finger pointing and as to what has gone wrong and who is to blame.

The reason the grid failed is simple: political deregulation. Along with sixteen other states Texas had deregulated its power market. The market was deregulated in 2002, under the then Governor Rick Perry, who would later become President Donald Trump’s Secretary of Energy.

Perry established the Electric Reliability Council of Texas (known as ERCOT), with roughly 70 providers. And then the politicians cut Texas off from the rest of the country, the only state in the contiguous U.S. that was operating its own electric grid.

And because the Texas grid was then disconnected from the rest of the country, no reserves could be imported when the grid got into trouble.

“As someone who has spent the past two decades studying electricity deregulation, I know that extreme power bills in Texas result partly from the state’s market-driven approach to running the power grid,” wrote Seth Blumsack, Professor of Energy and Environmental Economics and International Affairs, at Penn State in the Conversation yesterday.

Blumsack continued: “the sky-high electric bills in Texas are partly due to a deregulated electricity system that allowed volatile wholesale costs to be passed directly to some consumers.”

Frontline Organizations Demand a Just Recovery After Millions are Left to Freeze in the Face of Another Climate Catastrophe in Texas & the Southeast

By Diana Lopez and Juan Parras - Climate Justice Alliance, February 18, 2021

As our neighbors burn furniture to stay warm amidst widespread power outages in below freezing temperatures, this arctic weather event, fueled by the climate crisis, has exposed the vulnerability of the Texas power grid and its failure to effectively serve its people. It is clear how much we need a just recovery: an all-encompassing, community-based, solutions oriented approach putting community needs and equity above profit in these times of climate chaos. We must prioritize a Just Transition to a modern, regenerative and renewable energy system, one that is clean and safe for us all.

The current reliance on the fossil fuel industry and the historic stranglehold its industry holds in Texas politics underlies the lack of comprehensive extreme weather planning, mitigation and preparedness. This has left the region, state and especially frontline communities, in a state of continuous crises. While the oil and gas industries have tried to blame what is happening on alternative energy models, the reality is they did not build resilient infrastructure that can adapt to increasingly extreme weather.

An outdated, overly fossil fuel reliant, heavily privatized electricity grid has failed, leaving 3 to 4 million households without power for days not only in Texas, but throughout the region that is the cradle of this industry. Far too many people have died and hundreds more have been hospitalized, as Indigenous, Black, Latinx, Asian and other frontline communities once again remain the hardest hit. Thousands more are also facing contaminated water and massive damages from broken pipes. The privatization of the Texas energy grid is the seed of this crisis, where the profits of fossil fuel industries have been prioritized over the needs of the people.

The climate crisis is risking lives and it is impacting all communities, those at the margins are the hardest hit. Individuals with disabilities that rely on medical respirators, families having to break quarantine to keep eachother safe, and all the while the cost of energy increases during a time where the economy is a long way from stabilizing.The true cost of ignoring climate change is sadly yet to come, as those affected by this most recent extreme weather in the region are seeing the aftermath of burst water pipes, non weatherized homes and outdated infrastructure ill-equipped to handle the reality of climate change.

While our communities work to recover from Covid-19, massive job loss and the current climate crises, now is the time for investments to move toward a Just Transition to rebuild clean water and energy infrastructure for our future. We can put millions of people to work by creating locally controlled clean energy jobs, building new stable systems of power without pollution, and energy without exploitation. This is the time to Build Back Fossil Free.

Water and energy are not commodities — they are basic human rights. We need emergency response right now to distribute solar power, clean water and basic emergency needs for vulnerable communities as well as long term changes toward a healthy and sustainable future. We recognize that other communities in neighboring states are also impacted by the devastating winter vortex, power outages and water shortages. We support their efforts to self organize and will act in coordination and solidarity with all of those on the frontlines of climate catastrophes.

As our communities continue to care for each other through local mutual aid networks long established to deal with crises like these, we call on local and state officials to immediately begin a just recovery by:

Organizers & Organizations, Foundations & Philanthropists

Texas: grids, blackouts, and green new deals

By Jonathan Neale - The Ecologist, February 17, 2021

The failure of the electricity grid in Texas, USA, and the rolling blackouts in the Midwest, are one more consequence of climate breakdown.

The root problem is that the Arctic is growing warmer. As it does so, paradoxically, there is less of a barrier preventing very cold weather in the far north from moving south. This extremely cold weather then blankets cities and downs where people live. 

Download Fight the Fire for free now.

The electricity grid in Texas simply cannot supply enough power for all the extra demands on heating. This is a problem what will grow much worse, and not just in Texas.

Complexity

But Fox News and the Governor of Texas are blaming the failure of the grid on the Green New Deal and renewable energy. That’s silly.

There is no Green New Deal in Texas. There are some wind turbines, that have apparently frozen. But the wind turbines in Canada and Antarctica have not frozen.

This is a problem caused by fossil fuels and privatized energy, not wind trubines.

But environmentalists have to be careful here, and we have to be up to speed on the full complexity of what a Green New Deal will mean for electricity grids.

That’s why The Ecologist is posting here the chapter on supergrids from my new book, Fight the Fire: Green New Deals and Global Climate Jobs.

Power

In what follows, I explain the difficulties in integrating 100 percent renewable energy into the grid, and how it can be done. I also show why that will be impossible if renewable energy and electricity supply are owned by private corporations.

The chapter is about supergrids around the world, but many of the examples come from the United States.

A rewired world does not mean that all energy will come from renewables. But it does mean that most energy will come from electricity, and all that electricity will come from renewables.

That will not be an easy thing to construct. We will need new national and international supergrids to integrate all these new kinds of power into new electrical supply systems. These will be qualitatively new undertakings.

The challenge of mixing together power from renewable energy is different in kind from mixing together energy from fossil fuels – and far more complex.

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