Latest news with #energycrisis
France 24
5 hours ago
- Business
- France 24
Germans reluctant to open wallets despite easing inflation
Inflation in Europe's biggest economy has fluctuated between 1.6 and 2.6 percent over the past year, far below the 70-year high reached in 2022 after Russia's full-scale invasion of Ukraine triggered an energy crisis. The European Central Bank looks set to hold interest rates steady Thursday for the first time in almost a year after a lengthy easing cycle, with officials increasingly confident that prices have stabilised. But with the domestic economy still stuck in the doldrums and the threat of US tariffs looming, Germans are hesitant to start spending again. Here are some questions and answers on the topic. Why are Germans still worried about inflation? While inflation rates have been steadily easing for months, prices remain around 20 percent over 2020 levels, and consumers complain about elevated costs of everything from electricity to groceries and leisure activities. Chemistry student Tim Scheider has had to forgo attending his favourite music festival outside Berlin after the price of a three-day pass increased to 220 euros ($260), more than double the cost in 2019. "It has become incredibly expensive over the last two or three years... It's madness," the 27-year-old told AFP. "Life has become a bit more difficult with the rising prices," said Alkim, a Turkish aeronautics student in the western city of Osnabrueck, who has had to cut back on his diving hobby and only buys the cheapest pasta. Persistent inflation has also fuelled calls for some unusual measures. During a heatwave earlier this month, Greens party MPs in Berlin urged an "ice cream price cap" limiting the cost of a scoop to 50 cents so children from poorer families could still enjoy the treat. How do we know people are not spending? According to a regular survey published by pollsters GfK and Nuremberg Institute for Market Decisions (NIM) in May, saving rates are on the increase. Consumer sentiment "remains extremely low," according to the survey, blaming US President Donald Trump's unpredictable trade policy and worries about the weak domestic economy, which has been in recession for the past two years. There is also little sign of shoppers starting to hit the streets in greater numbers -- German retail sales fell in May, April and March, according to official statistics. - Why is there such caution? - As well as worries about Trump's tariff blitz and the crisis-wracked domestic economy, experts say many consumers are still scarred from the 2022 inflation shock. "It can take one to five years for consumer perception to align with reality," said Matthias Diermeier from the IW economic research institute. On average, 3,000 people surveyed in December by the Cologne-based institute estimated 2024 inflation at 15.3 percent -- in reality, it was only 2.2 percent. The gap is even more pronounced among supporters of radical parties, such as the far-right AfD and far-left BSW. Historical experience has also left Germans with a deep aversion to rising prices -- a bout of destabilising hyperinflation in the 1920s paved the way for the rise of the Nazis. A recent survey by an army research centre showed German consumers fear rising prices more than a war between the West and Russia. Why should consumers spend more? A pick-up in consumer spending is crucial to help revive the eurozone's traditional powerhouse economy and offset prolonged weakness in the manufacturing sector, which has historically been a key source of growth. But with memories of the inflation surge still raw, consumers seem unlikely to come to the rescue any time soon. "People may well suspect that -- since the news has constantly been repeating in recent years that everything is more expensive -- it is indeed still getting more expensive," said Lisa Voelkel, from the Federation of German Consumer Organisations. © 2025 AFP
News.com.au
a day ago
- Politics
- News.com.au
Barnaby Joyce defends splitting from Coalition on net zero ‘crusade'
Nationals maverick Barnaby Joyce has defended his backbench rebellion on net zero, decrying the opposition's embrace of the 2050 target as a 'singular crusade' that he never voted for. Mr Joyce will introduce a private member's bill to repeal net zero and has gained the support of fellow former party leader Michael McCormack. Both MPs were banished to the backbench after the Liberals and Nationals had their brief post-election split – a move Nationals leader David Littleproud at the time put down to 'generational change'. But up the back, neither of the heavyweights need to follow the party line, posing a real threat to Mr Littleproud's tenuous authority and Liberal leader Sussan Ley's efforts to project a modern, united opposition. Cornered by reporters in a press gallery hallway, Mr Joyce was asked on Wednesday why he was rehashing a conversation that Australians had already had at two federal elections. 'No one can dispute power prices are going through the roof,' he said. 'No one can dispute that the power grid is becoming unreliable.' He also said it is indisputable 'that the geopolitical times that we live in have become vastly more precarious'. 'No one can dispute that you need a strong economic base if you want to defend our nation,' Mr Joyce said. 'And we are trying to achieve net zero – something that neither Russia nor China nor the United States, nor Indonesia nor Brazil or the majority of African countries or Southeast Asian nations are part of. 'You're in the minority group here, the minority of people in the globe, the vast majority of the GDP of the globe.' He went on to say that 'even if you believe every chapter, verse of what net zero was going to achieve, it's not going to achieve it because the world's not participating in it'. 'So why are we on this sort of singular crusade by ourselves that has no effect on the climate but incredibly deleterious to the standard of living and the cost of living with the Australian people. 'It's insane.'
Forbes
5 days ago
- Business
- Forbes
Why Electricity Prices Are Rising And What You Can Do To Cut Costs
Symbolic light bulb with photo of high-voltage power lines, ascending arrows for design on theme of ... More energy industry, global energy crisis with rise in cost of energy carriers, inflation, energy saving Have you noticed a change in your electric bill lately? The National Energy Assistance Directors Association estimates that 2025 will be the most expensive year of the decade, with the average U.S. household expected to pay at least 6% more than in the previous year, and significantly more for others, depending on location and housing type. Multiple factors at play contribute to their bills becoming unmanageable. The most effective tips for mitigating rising electricity bills include updating your appliances and insulation, as well as unplugging electronics you aren't using. Let's start with the rising cost of natural gas and explore the reasons behind this increase. Natural gas accounts for approximately 40% of the electricity generated in the United States. According to the U.S. Energy Information Administration, exports of liquefied natural gas have increased to 12.9 billion cubic feet per day, a threefold rise. This means that we have a limited supply of natural gas in our country, which raises its price and, in turn, increases the cost of electricity produced by it. To make matters worse, those exports are expected to double in the next five years and depending on the energy policies we implement in the future, that number could double again. In the graph below, you can see what the EIA is projecting. U.S. LNG Exports The rise in electricity prices cannot be attributed solely to natural gas exports; multiple factors are contributing to this increase. The second factor is rising demand. New data centers and AI are expected to drive this demand, which, according to Rystad, is projected to grow at a rate of 4% annually. To put that in perspective, it is nearly double the rise in demand we experienced from 2000 to 2020. A single data center can use as much electricity as 80,000 homes, and by 2030, we are projected to add as much as 30 GW of electricity demand from data centers in the U.S. That is equivalent to the power generated by 30 nuclear reactors, solely for data centers. Fortunately, most of these data centers will build out some form of electricity generation to assist in powering the centers. In Pryor, Oklahoma, where Google is building a new data center, a new solar array will be built alongside it, and Google has agreed to purchase that power. What is yet to be seen is how the passage of HR1, commonly known as the Big Beautiful Bill, will impact these renewable power installations with data centers. Tax credits for wind and solar projects are being terminated for projects that are not complete by the end of 2027. At a time when electricity demand is growing at historic levels and is expected to continue doing so, we are making it harder to generate that electricity. Infrastructure Matters The most critical aspect of your lights coming on is the infrastructure that carries electricity to homes and businesses across the nation. However, 70% of transmission lines and distribution transformers are 30 years old, according to the Smart Electric Power Alliance. These transmission lines are now expected to face a 260% capacity demand increase by 2050 due to the growth of data centers, electric vehicles, and renewable energy. There are two pieces to this. When the infrastructure itself cannot meet demand, prices increase, as it is an essential part of the supply chain. Second, the cost of that new infrastructure is being passed on to us, the customers. According to the Cato Institute, grid costs now comprise up to 50% of your electric bill. In many areas, delivery costs have risen by nearly 70%. In my personal experience reviewing other people's electric bills over the last two years, delivery costs have been the most significant driver of their bill increases. Higher demand for an ageing grid in a specific area can increase bills dramatically. If that weren't enough, grids require digital upgrades for renewable energy, and the assistance for those upgrades is also being eliminated. All of this has resulted in electricity prices rising by over 6% per year since 2020, according to the Bureau of Labor Statistics, which averaged 1.6% during the previous hundred years. Here are some tips to help you save money on your electric bill. · Switch to LED Bulbs · Install a smart thermostat · Seal air leaks · Use Energy Star appliances · Set your AC to 78 degrees. Each degree lower increases cost by 6-8% · Lower the water heater to 120 degrees. · Use cold water for laundry · Unplug items you aren't using. · Leverage of off-peak hours. You can save hundreds of dollars a year by implementing some of these tips according to the Department of Energy. If you would like to maximize your potential savings, consider getting an energy audit done. Many utility companies offer this as a free service, and it could potentially save you up to 30% on your electric bills. If your utility company does not offer this free service, you may find a local professional that could do it for as little as a hundred dollars, just make sure they are accredited. If you are more of a do it yourself type individual you can download DIY energy assessments at
Forbes
7 days ago
- Business
- Forbes
AI's Energy Demands Versus Grid Realities
Yuval Bachar is the CEO of ECL. Artificial intelligence (AI) is advancing rapidly, but energy infrastructure is a critical bottleneck. As computational capabilities expand exponentially, their energy demands are surging beyond what traditional electrical grids can accommodate. This coming crisis threatens to constrain AI innovation and significantly increase carbon emissions at a time when technology leaders have uniformly committed to ambitious sustainability goals. The Escalating Energy Crisis In AI Computing The energy demands of AI workloads are growing at an unprecedented pace. Nvidia CEO Jensen Huang recently noted that future AI server racks could require up to 600kW of power, a dramatic leap from today's standards and a fivefold increase in density from what we are seeing today. Deloitte projects that global data center electricity consumption will reach 536 terawatt-hours (TWh) in 2025, representing about 2% of worldwide electricity usage. By 2030, this figure could double to 1,065 TWh due to power-intensive AI applications like generative AI training and inference. Some estimate that a single ChatGPT query consumes the same amount of electricity as powering an LED light bulb for 20 minutes, and Goldman Sachs has estimated that it requires nearly 10 times the energy of a traditional Google search. The DOE estimates that data centers in the U.S. currently account for 4.4% of total power demand, a figure expected to grow to 6% to 12% by 2028. McKinsey estimates that data center load may constitute 30% to 40% of all new electricity demand in the U.S. through the decade. Meeting this demand requires significant investments in grid infrastructure, which already faces permitting delays and long lead times. Sustainability Commitments Under Pressure The rapid increase in energy consumption directly challenges the technology sector's climate commitments. Google reported a 48% surge in total emissions from its data centers in 2023 compared to its 2019 baseline, attributing this increase to rising power demands. The company acknowledged that integrating AI into its products makes reducing emissions increasingly difficult. This trend extends across the industry. S&P Global Ratings predicts that "U.S. data center power demand will increase at 12% per year until the end of 2030," potentially doubling the tech sector's carbon emissions. They also state that approximately 60% of this new demand could be met by natural gas generation due to constraints on renewable energy growth and the need for stable power sources. This reliance on fossil fuels conflicts with widespread decarbonization goals and underscores the urgency of finding alternative solutions. Current Energy Strategies Are Unsustainable Traditional approaches to addressing data center energy needs, such as diesel backup generators or overbuilding grid capacity, are proving inadequate. Diesel generators contribute significantly to carbon emissions when used and remain idle for most of their operational life. Expanding grid capacity involves long permitting timelines and high costs, making it challenging to keep pace with surging demand. These strategies fail to address both reliability and sustainability concerns, highlighting the need for paradigm shifts rather than incremental tweaks. Assessing The Leading Energy Solutions For Data Centers While solar, wind, geothermal, battery storage, natural gas and nuclear power all hold promise for reducing carbon footprints and enhancing resilience in digital infrastructure, each comes with its own set of limitations, whether in terms of intermittency, geographic constraints or scalability for the largest and most power-intensive facilities. Hydrogen fuel cells and nuclear microreactors have both seized industry attention as compelling options for delivering reliable, low-carbon power at the scale and density required by modern data centers. While both technologies offer significant potential for emissions reduction and operational resilience, they differ greatly in terms of technological maturity, deployment readiness and integration pathways. The Role Of Hydrogen Power Today Hydrogen fuel cells are increasingly recognized as a practical and immediate solution for sustainably powering data centers. These systems emit only water as a byproduct and eliminate operational carbon emissions. This makes hydrogen an extremely appealing choice for AI data center operators working to reduce reliance on fossil fuels and maintain reliable power, even in areas where grid capacity is limited or renewable integration is challenging. Modular hydrogen solutions are already commercially available and can be scaled to deliver megawatts of power, supporting the increasingly high-density racks required by modern AI workloads. Hydrogen-powered data centers can often be deployed more rapidly than traditional grid-connected facilities, providing a crucial advantage as AI-driven demand accelerates. Integrating hydrogen with other renewable energy sources further enhances its appeal, as does the operational efficiency gained from using byproduct water for cooling and achieving water-positive status in some installations. The Promise Of Nuclear Microreactors Nuclear power, and specifically the development of microreactors, is also emerging as a promising long-term solution for data center energy needs. Microreactors are compact, carbon-neutral sources capable of providing steady electricity and process heat, with the potential to operate for years without refueling. Their high reliability and ability to function independently or as part of a microgrid make them attractive for critical infrastructure and remote or grid-constrained sites. Still, deploying nuclear microreactors for data centers is several years away, based on regulatory approvals, high capital costs and supply chain complexities. Widespread commercial implementation is unlikely before the 2030s. While several pilot projects and commercial agreements are underway, they are still in the early stages, leaving them unavailable to meet near-term AI data center demand. Complementary Solutions For A Growing Challenge Hydrogen and nuclear are ultimately complementary, rather than competing, solutions. While hydrogen is well-positioned to address immediate and near-term challenges, offering flexibility, rapid deployment and the ability to support peak and backup power needs, nuclear is expected to provide stable, large-scale baseload power as new projects come online in the next decade. Together, these advanced technologies can help the data center industry meet the dual goals of supporting AI-driven growth and achieving sustainability targets. The sector's rapid evolution means that new innovations and hybrid approaches may rise to the forefront. As the digital landscape transforms, the industry must remain agile and open to emerging technologies that can meet the scale, reliability and environmental standards needed to support future innovation. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
ABC News
16-07-2025
- Business
- ABC News
Blue Float Energy abandons $10 billion Gippsland Dawn offshore wind proposal
The developer of a proposed $10 billion Victorian offshore wind farm has abandoned the project, prompting fears Australia may not reach its renewable energy targets. Gippsland Dawn was to be a 2-gigawatt offshore wind farm built between Paradise Beach and Ocean Grange on the Gippsland coast. The proposal received major project status from the federal government in November, and promised to deliver power to more than one million homes. But the company behind the project, Blue Float Energy, withdrew from offshore wind internationally after major shareholder Quantum Capital said it was no longer commercially viable to invest in the sector. The decision also impacts a planned offshore wind farm in the Illawarra region. The exit comes at a time of volatility in the energy market. The Victorian government will hold an auction in September to determine which renewable energy projects get built first. Bruce Mountain, director of Victoria University's Victoria Energy Policy Centre, said the fact an operator was pulling out without trying to sell their assets was a sign that things were off track. "It is surprising that [Blue Float] did not manage to find someone else to buy their operations, so that indicates [there is] not a huge amount of interest from others in taking over the options," Professor Mountain said. "I think it will impact others … and others that are not in a strong position will be weakened by this." The Victorian government has a renewable energy target of 40 per cent this year, increasing to 95 per cent by 2035. That includes at least 2 gigawatts from offshore wind by 2032. Nationally, Australia has a target of achieving 82 per cent renewable energy by 2030. Professor Mountain said there was real doubt over whether those targets would now be achieved. "We're not on target in Victoria and we're not on target nationally at all," he said. Professor Mountain said significant delays between policy announcements, community consultation and construction meant the current market was no longer commercially appealing for operators. "There has been a surge in offshore wind development costs globally and those costs have not yet come down," he said. "The economics of offshore wind now is much weaker than was thought to be, say three to four years ago." Electrical Trades Union (ETU) national secretary Michael Wright has called on the government to clear a "bottleneck" of energy project approvals. Jobs and Skills Australia estimates the country will require two million workers in building and engineering trades by 2050, to prepare Australia's energy grid and industrial base for net zero carbon emissions, including up to 84,000 additional electricians. "What I have a concern about is, are we going to have an industry that can support training up the thousands or tens of thousands of electrical workers that we need to build this out?" Mr Wright said. A spokesperson for the federal Department of Climate Change, Energy, the Environment and Water said it recognised that offshore wind developers were facing global challenges relating to costs and uncertainty, but that a "high level of investment interest" in the Australian industry remained. The federal government believes it is on track to meet its 2030 emissions reduction target. A spokesperson from the Victorian Department of Energy, Environment and Climate Action said the Commonwealth had approved offshore wind projects for feasibility licences in Gippsland that could generate 23 gigawatts of electricity — more than enough to meet Victoria's energy needs.
