News Archives - SolarBuzz Jamaica

Power Wheeling: The Multi-Site Energy Opportunity

May 16, 2026 jrobinson

From the CEO’s Desk

Jamaica’s power wheeling regulations have been gazetted, and final preparations for implementation are advancing. This marks a consequential moment in the island’s energy architecture that has been anticipated, delayed, and debated for over a decade.

As Minister Daryl Vaz confirmed in his contribution to the 2026/27 Sectoral Debate, final discussions on tariffs and billing arrangements are in their concluding stages.

Power wheeling will allow a party that generates electricity from a solar installation, for instance, to transport that electricity across the national grid to another location they own or operate, subject to a transmission fee paid to JPS as grid operator. The grid functions not as a supplier but as a corridor.

The commercial logic is that a business generating surplus at one facility redirects that value to offset consumption at another, rather than exporting it to JPS at the buy-back rate and purchasing it back at full retail cost elsewhere.

The policy’s ambitions are to reduce energy costs over time, support economic growth, and protect Jamaicans from external shocks. Whether it will achieve those ambitions for the breadth of operators who stand to benefit, or whether it will remain, in practice, an instrument available only to Jamaica’s largest energy consumers, will be determined by the eligibility criteria yet to be confirmed within the gazetted regulations, and the transmission fee.

This article examines what is at stake, and why both of those details matter considerably more than the policy announcement itself.

The Detail That Changes Everything

The OUR’s 2020 Electricity Wheeling Tariff Methodology Determination, the most recent published framework, established that to qualify for a wheeling licence, an applicant must be a self-generator with an average annual demand in excess of one mega-volt ampere, equivalent to 1,000 kilo-volt amperes. At that threshold, the OUR itself estimated that only approximately 70 JPS customers qualified, and that fewer than 10 per cent of those had operations across multiple locations, narrowing the practical market to approximately seven operators.

That is a narrow constituency for a framework being positioned as a meaningful instrument for energy cost reduction and economic development, and one that would largely exclude the commercial and industrial mid-market where solar adoption in Jamaica has been steadily and meaningfully growing.

The critical question is whether the newly gazetted regulations have revised that threshold. The announcement describes wheeling as available to Jamaicans who generate excess electricity in one location and use the credit at another site, which implies broader eligibility than the 2020 framework permits.

Notwithstanding, the full text of the gazetted regulations has not yet been published in accessible form, and until it is, the 1 MVA requirement must be treated as potentially still operative. The tariff and billing discussions underway may or may not address this. Either way, the industry needs to ask directly, and loudly, before the framework is finalised.

A Case in Point

To understand what is at stake in that eligibility question, consider the profile of one of our own clients, as a precise illustration of who the policy should serve if it is to reflect the intended objectives.

A manufacturing operation with its factory in St. Thomas and a corporate head office in Kingston installed a 96.7 kW solar PV system at the factory. The system has delivered a 75–80% energy offset from prior peak usage, generates an average monthly surplus of approximately 7,000 kWh, and exports that surplus under a net billing licence to the value of J$104,500 in monthly credit.

Under net billing, that surplus earns J$23.170 per kWh at the prevailing buy-back rate. The same factory draws grid electricity at a combined rate that, when all charges are aggregated, approaches J$65 per kWh at current billing rates. The gap between J$23.170 earned on export and J$65 paid on import at the factory is the commercial case for wheeling in a single number

A kilowatt-hour wheeled from St. Thomas to Kingston, offsetting full retail consumption there at a comparable commercial rate, is worth nearly three times what the same unit earns under net billing. The arbitrage becomes compelling if the proposed transmission fee is below J$20 per kWh.

Under the 2020 OUR threshold of 1MVA, this client with a 96.7 kW system, which is approximately 0.097 MVA, is below the minimum demand requirement and therefore would not qualify for power wheeling. If that threshold is carried forward into the new regulations unchanged, this client, generating meaningful surplus, operating across two locations, holding an active net billing licence, and representing precisely the profile of commercial solar operator the policy should be incentivising, will be excluded.

When the Framework Delivers

Setting eligibility concerns aside for a moment, the hybrid model represents the strongest outcome for multi-site owners and the clearest expression of what the framework could achieve if designed with genuine commercial breadth in mind.

A hybrid model allows available surplus to be wheeled first to offset full retail consumption at secondary locations, with any remaining generation exported under net billing. This approach creates layered value of full retail-rate avoidance across multiple facilities, and continued export income on true excess, most directly reflecting the policy’s stated intent.

Using the same manufacturing client’s profile, a portion of the 7,000 kWh monthly surplus could offset consumption at the Kingston head office at full retail value, while the balance earns export credits. The transmission fee will be the critical variable. A commercially sensible fee, ideally below J$20 per kWh, would make the hybrid model clearly superior to net billing export alone. At J$30 or higher, the arbitrage narrows significantly.

South Africa’s Eskom framework, the most comparable precedent, confirms the viability of this hybrid model. It explicitly supports on-site self-consumption combined with wheeled transfers to other owned facilities, and residual export via net billing-style mechanisms.

If eligibility is broadened, the scale of the multi-site opportunity can extend well beyond two-location operators. A manufacturing group with a factory, a distribution warehouse, and a head office across three parishes could redirect surplus dynamically across all three. A university could direct generation from a main campus installation to libraries, residential halls, and administrative facilities according to operational rhythms and occupancy cycles. The framework would then support redirection to multiple receiving accounts under common ownership and transform a single well-engineered solar system into a portfolio-wide energy asset.

Positioning Before the Framework Is Final

For businesses already generating under net billing, the immediate action is to understand whether their solar system and demand profile will qualify under the new framework, and to engage with the consultation process while there is still an opportunity to influence the eligibility threshold and fee structure.

For businesses evaluating solar investment now, the directional case remains strong regardless of how the wheeling eligibility is resolved. A well-engineered system at a high-yield site delivers meaningful returns under net billing alone. If wheeling eligibility is confirmed and the fee is set reasonably, the same system becomes a multi-site asset capable of considerably greater financial impact.

The investment decision and the wheeling decision are not the same decision, and they do not need to be made simultaneously. What matters is that the system is designed with future wheeling capacity in mind, so that when the framework is confirmed, the infrastructure is already in place to take advantage of it.

At Solar Buzz, we are tracking the eligibility and tariff developments closely. Businesses and property owners who want to understand what this framework could mean for their specific energy profile are invited to engage now. The details will not remain open indefinitely.

This editorial is intended for informational purposes. References to the OUR’s 2020 Electricity Wheeling Tariff Methodology Determination reflect published regulatory documents. The eligibility criteria and tariff structure of the newly gazetted power wheeling regulations have not yet been published in full at the time of writing. All financial figures are drawn from current JPS billing and OUR-published rates and are subject to revision.

Electricity Government News Power Wheeling

Power pact push – Cabinet signs off on agreement to be negotiated with JPS as new licence hangs in the balance

May 14, 2026 jrobinson

The Cabinet has approved a “heads of terms” agreement for a new licence that the Government is to negotiate with the Jamaica Public Service (JPS), subject to a non-disclosure agreement between the company and the administration.

A heads of terms agreement sets out the basic terms of a commercial transaction between parties.

Daryl Vaz, minister of energy, telecommunications and transport, made the announcement in Parliament yesterday, saying that a review of the Electricity Act and the regulatory framework will be undertaken to give effect to the new licensing regime.

In his contribution to the Sectoral Debate, Vaz reminded the country that if the Government is unable to reach an agreement with the JPS, it intends to turn to the international market to identify another provider.

According to Vaz, the process has also begun to engage international legal counsel to support the negotiations as the ministry seeks to secure the most efficient and effective outcome.

The minister also announced that the power-wheeling regulations have been completed and gazetted. He said final discussions are under way to settle tariffs and billing arrangements so that implementation can begin shortly. This, he said, will allow more participants to access and trade electricity across the grid.

In his recent contribution to the Sectoral Debate, opposition spokesman on energy Phillip Paulwell urged the Government to implement wheeling immediately, noting that the facility allows a large commercial or industrial enterprise to generate power at one location and transport it across the national grid to its other facilities, subject to a reasonable transmission fee.

Giving an update on the restoration of power following Hurricane Melissa, Vaz said that, effective May 5, 2026, the number of customers without electricity stood at 1,343. To date, he said, power has been restored to 99.81 per cent of JPS customers.

In Westmoreland, 1,283 customers remain without power, while the number in St Elizabeth stands at 60. Vaz noted that of the remaining customers awaiting restoration, approximately 40 per cent, or 538 customers, are not yet ready to safely receive power because of property-related damage. That leaves about 805 customers who are able to receive electricity service still awaiting reconnection.

He said restoration work continues to be affected by difficult terrain, limited access to remote areas, adverse weather, and challenging ground conditions, all of which have slowed progress.

Vaz also highlighted that the Generation Procurement Entity has launched the largest renewable energy tender undertaken in the Caribbean, initially comprising 220 megawatts of renewable energy paired with 110 MW of battery storage.

“Building on strong market interest and the Government’s commitment to accelerating the energy transition, this has now been increased to 300 MW of renewable energy and 150 MW of battery storage, with the tender scheduled for August 2026.”

The Gleaner

Electricity Government News Power Wheeling Solar Energy

Final Preparations Under Way to Implement Power Wheeling

May 14, 2026 jrobinson

The Government is finalising preparations for the implementation of power wheeling in Jamaica, following the completion and gazetting of the required regulations.

Minister of Energy, Transport and Telecommunications, Hon. Daryl Vaz, said that final discussions are under way to settle tariffs and billing arrangements.

He was making his contribution to the 2026/27 Sectoral Debate in the House of Representatives on May 5.

Power wheeling will allow Jamaicans who generate excess electricity in one location to be able to use the credit obtained from the Jamaica Public Service (JPS) at another site.

It is another initiative by the Government to make the energy sector more robust and realise efficiencies.

“At the same time, the updated National Energy Policy, along with its supporting Action Plan and sub-policies, is being finalised for submission to Cabinet, for which I signed before coming to Parliament,” Mr. Vaz told the House.

He informed that the policy sets a clear pathway towards a modern energy system that is secure, reliable, affordable, and sustainable.

The Minister noted that that it addresses key national priorities, including expanding access to the remaining five per cent of Jamaicans without electricity, improving system efficiency, maintaining affordability, and strengthening resilience to natural disasters.

“In practical terms, this is about building an energy system that works for the Jamaican people, one that reduces costs over time, supports economic growth, and protects us from external shocks,” Mr. Vaz said.

JIS

Crude Oil News Oil

Shell latest oil giant to see profits surge due to Iran war impact

May 7, 2026 jrobinson

Shell has become the latest energy giant to report a jump in profits following the sharp increase in oil prices since the beginning of the Iran war.

It reported profits of $6.92bn (£5.1bn) for the first three months of the year, which was higher than analysts had expected and up from $5.58bn in the same period a year earlier.

The price of oil has soared since the start of the US-Israel war with Iran as the key Strait of Hormuz, which usually carries about 20% of the global supplies of oil and liquid natural gas (LNG), has been effectively closed.

Last week, rival oil giant BP said its profits for the first three months of the year had more than doubled.

Other oil firms have also reported bumper results. On Wednesday, Norway’s Equinor said profits in the first three months of the year had hit $9.77bn, its highest quarterly profit for three years.

Traders profit

Shell chief executive Wael Sawan said: “Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets.

“The safety of our people remains our priority as we work closely with governments and customers to address their energy needs.”

Like BP, one of the factors behind Shell’s profits rise was better results from its oil trading business.

Before the conflict began, the price of Brent crude, the global benchmark for oil prices, was around $73 a barrel.

Since then, oil has seen sharp swings – peaking above $120 at one point, but also falling below $100 on other occasions as speculation has swirled over when the Strait of Hormuz will reopen.

The big movements in the oil price that have been seen since the Iran war began can widen the gap between buying and selling prices. This typically enables traders to make bigger profits.

Shell’s profits were also boosted by higher margins at its refining business, which turns crude oil into finished products such as petrol and jet fuel.

However, the company said its oil and gas output had fallen by 4% compared with the final three months of last year due to the conflict.

Shell’s LNG production in Qatar has been shut down since early March because of the conflict, and its Pearl GTL site in Qatar has been damaged by attacks.

Last week, Shell announced it was buying Canadian shale producer ARC Resources for $16.4bn, which Sawan said would “deliver value for decades to come”.

Call to strengthen windfall tax

The surge in profits being reported by energy firms has led to criticism from environmental groups.

Danny Gross, climate campaigner at Friends of the Earth, said: “Once again, fossil fuel giants are pocketing monstrous profits while drivers are being squeezed at the petrol pump and households are set to pay higher energy bills.

“The answer is clear: strengthen the windfall tax on these indefensible profits and break our dependence on fossil fuels by powering our economy with homegrown renewables.”

What is the windfall tax?

Energy firms operating in the UK are subject to a windfall tax, called the Energy Profits Levy, that was introduced in 2022 as a response to soaring profits following Russia’s full-scale invasion of Ukraine. Labour extended the life of the tax to March 2030.

However, the levy only applies to profits made from extracting oil and gas in the UK, whereas the bulk of energy giants’ earnings are made overseas. The UK accounts for less than 5% of Shell’s global oil and gas production.

Gas and electricity bills for most households in Britain are protected for the moment by the energy price cap.

Until 30 June, the typical annual bill for dual-fuel households who pay by direct debit will be £1,641.

However, the jump in wholesale oil and gas prices since the Iran war began means the cap is currently estimated to rise by about £200 when it is revised in July.

Shipping giant passing on costs

Meanwhile, the chief executive of Danish shipping giant Maersk told the BBC it was passing on rising costs due to the war to its customers.

Vincent Clerc said the sharp rise in energy prices was adding half a billion dollars of extra costs per month to the business.

“What is really important is actually to pass on these cost increases to our customers as much as possible, so that we can protect our margin and the operations’ integrity going forward,” he said.

He added there was uncertainty over whether this would eventually lead to inflation and lower demand.

Maersk’s latest earnings show operating profits slightly above analysts’ forecasts, although that was mostly for the period just before the Iran war started.

On Monday, Maersk said its US-flagged vessel, the Alliance Fairfax, which had been stranded in the Gulf since the end of February, had managed to exit the Strait of Hormuz accompanied by US military assets.

Clerc said Tehran’s ambition for control of the Strait and eventual toll charges would be a significant change for the industry, “similar to the canals in Suez and in Panama, where we also pay to go through”.

But he said at this stage any toll charges on the Strait of Hormuz were “very, very speculative” and it would have to reopen first.

BBC News

Energy Saving Government News Solar Energy

Gov’t contemplates ‘COVID’ style measures amid rising oil prices – Vaz

May 7, 2026 jrobinson

While warning that the Government could possibly examine policies to limit movement as the country faces a significant crisis regarding international oil prices, Energy Minister Daryl Vaz says every Jamaican has a responsibility to conserve energy.

He made the call at Wednesday morning’s post-Cabinet press briefing as he outlined the Government’s response to the economic strain caused by the conflict in the Middle East and its impact on Jamaica’s oil pricing.

“My words to you Jamaica is, definitively, ‘You’re gonna see increases [in oil prices] as long as this [conflict in the Middle East] continues’. We [the Government] will do what we can do, but it is important that you do what you need to do to understand that you need to conserve starting today, today, today,” the minister stressed.

He noted that the Government will likely explore policies to limit movement, specifically transportation, and suggested the possibility of returning to a “COVID-hybrid” version of working from home to reduce fuel consumption.

But he emphasised that the Cabinet will ultimately decide on what final plans will be announced to conserve energy.

“The Government is gonna have to look at policies to limit movements, especially transportation movements. I don’t know… whether or not we go back to a COVID-hybrid version of working from home; something has to happen, because the level of traffic that I am seeing on the road doesn’t show me that anybody realises that there’s a war and the price of fuel/oil is going to go up, and up, and up,” Vaz said.

He added, “I am sure that Cabinet will deliberate, the Government will come up with plans as to how to conserve [energy], but it is 100 per cent the responsibility of every Jamaican to realise that we are in a major, major crisis as it relates to the price of oil internationally, and therefore, you need to take responsibility for your household, your business, [so] see what you can do.”

At the same time, Vaz said that despite the market volatility, Jamaica’s energy security remains intact due to established finished product supply contracts and the local refining capacity at Petrojam.

“So, it’s not a matter of not being able to buy [oil]; it’s the price. So there’s no need to panic,” he declared.

Earlier, the minister advised that the Government — through Petrojam, the Energy Ministry and the Finance Ministry — has taken deliberate steps to, among other things, mitigate the full pass-through of global price increases, and protect consumers from sudden and sharp fuel increases.

Additionally, Petrojam’s pricing committee continues to monitor market conditions and adjust ex-refinery prices accordingly.

However, Vaz pointed out that while the current mechanism has been effective in cushioning customers, it has resulted in “significant financial losses by Petrojam”, which is between $1.3 billion and $1.4 billion. That loss was not passed on to Jamaicans.

“If we continue the current pricing mechanism up to June 2026, it would cost the Government of Jamaica $11.8 billion, which is unaffordable, and unsustainable and, is, in fact, two-thirds of this budget year’s revenue measures,” Vaz informed.

Pointing to the breakdown in talks between Iran and the United States, Vaz said he was hopeful that there would be a resolution, noting that the discussions appear to be “going in the wrong direction since Monday”.

In response to the high oil prices globally, Vaz said Cabinet has considered a revised new tiered pricing mechanism, designed to allow for controlled and predictable adjustments, maintain consumer protection for smaller increases and enable greater flexibility during larger global price shocks.

As of Wednesday, he said the new pricing mechanism to be used by Petrojam to respond to the fuel uncertainty will entail a “tiered approach”, which will see petroleum prices being more closely aligned to global price movements.

“This will allow Petrojam to be more agile and respond in a more timely manner to price volatility. What does that mean? It means that the $4.50 cap [on fuel] cannot be sustained, and it means that we’ll have to have several different tiers of caps — probably three — that will speak to what’s happening in the market and, as I said, pricing is weekly. So it means that we can adjust on a weekly basis,” Vaz explained.

“But let me be blatantly and truthfully upfront in your face; the Government of Jamaica cannot stomach an $11.8 billion [loss] with all of what we have to do and all of the contending priorities, and anybody who tell you any [thing] different… rubbish! No Government in a situation like this can sustain that,” the minister argued.

Jamaica Observer

battery storage Electricity Energy Saving Government News Solar Buzz Featured Solar Energy

From the Fuel Pump to Your Electricity Bill

May 7, 2026 jrobinson

Why Jamaica’s fuel relief strategy is only half the equation

A Solar Buzz 15.1kW system installation at a Kingston residence.

The Government’s proposal to consider a return to post-COVID style hybrid or remote working arrangements to ease fuel demand arrives at a pivotal moment for Jamaican households.

With the removal of fuel price caps and a shift to more market-reflective electricity pricing, any increase in daytime residential energy use must be met with a clear cost-control strategy.

On April 15, 2026, Energy Minister Daryl Vaz highlighted the unsustainability of the current fuel price cap mechanism, which has cost Petrojam between J$1.3 billion and J$1.4 billion in a recent four-week period. With tiered pricing now tracking international markets on a weekly basis, households face greater and more immediate exposure to global energy volatility.

The Incomplete Equation

Remote work offers real savings on transportation fuel. However, a professional working from home shifts substantial daytime energy consumption including air conditioning, computing equipment, lighting, internet infrastructure, and often additional household activity onto their home’s electricity bill.

For upper-middle and executive households best positioned for hybrid arrangements, this represents a meaningful transfer of consumption from commercial to residential settings.

Without a supporting energy solution, the intended financial relief risks being redirected from the fuel pump to the electricity meter.

The Government is offering relief at the fuel pump. Solar completes the equation at the meter.

The Other Half of the Equation

A properly designed solar system with battery storage offers a practical and accessible way to complete that energy picture. It directly offsets the higher daytime residential demand, stabilises costs against weekly price movements, and delivers genuine net savings for many households.

The supporting framework already exists: the GCT exemption on solar systems, panels, and battery storage equipment reduces the effective cost of adoption meaningfully. The residential solar tax credit offers a further 30% on system value, claimable against up to 50% of taxable income. And through the National Housing Trust, eligible contributors have access to financing that the open market cannot approach, at subsidised rates of 3 to 5%.

Hybrid Work and the Energy Equation

Eligible NHT contributors can access up to J$2.5 million through the Smart Energy Loan, designed specifically for solar PV systems with battery storage and energy-efficient appliances, and up to J$5 million via the Home Improvement Loan for a broader scope of work including roof repair, structural upgrades, and solar installation. These two facilities are not mutually exclusive. Used in combination they unlock up to J$7.5 million, enough to design, finance, and install a complete solar and battery solution in a single coordinated project, at repayment terms of up to 10 years or until the homeowner reaches age 70.

The critical design principle is that the monthly loan repayment should be structured to be equivalent to or less than the existing JPS bill it replaces. The fuel savings from reduced commuting are retained rather than redirected to the utility. And the household acquires an asset with a design life measured in decades.

Consider two profiles from the Solar Buzz client base. The distinction between their outcomes lies in loan tenure eligibility, which directly shapes the financial result in each case.

In the first, a professional household with a 6.05 kW hybrid system and 20.48 kWh of battery storage offsets 98% of its consumption. Even with near-doubled electricity usage to support home offices and air conditioning, the JPS bill drops to roughly J$1,200.

Because this client was eligible only for the standard 10-year NHT Smart Energy Loan term, total monthly outgoings including loan repayment sit at approximately J$26,300, only about J$9,000 more than their average JPS bill, yet delivering almost twice the electricity. Full energy freedom is achieved once the loan is repaid.

In the second, a 5.0 kW hybrid system with 15.36 kWh battery storage achieves a 100% offset. Full eligibility for the loan repayment term provided considerably more favourable financing conditions.

The household effectively substitutes its JPS electricity bill with the NHT loan repayment, reducing the monthly JPS charge to fixed non-fuel costs only, delivering complete energy independence during the loan period itself. The combination of system output and financing terms positions the household for what can genuinely be described as cash-flow-positive energy freedom.

System Design that Supports Hybrid Work

A Solar Buzz 7.65kW system with 20kWh battery storage installed for a hybrid-working household.

Jamaica’s grid, despite ongoing investment commitments, remains characterised by outages that are disproportionate to the ambitions of a professional or executive household relying on continuity of power for productive work. A solar system without battery storage offers billing relief when the sun shines and supply holds, but it does not offer energy independence.

Jamaica’s grid realities, combined with increasingly variable weather patterns, mean that resilience matters as much as generation. What has traditionally been understood as the dry season has become structurally less predictable, with extended cloud cover and above-normal rainfall now appearing well into what should be the island’s driest months.

Extended cloud cover during a significant weather system can suppress solar generation entirely for twenty-four to forty-eight hours or longer. A well-sized battery system ensures continuity for professional work through outages and extended cloud cover. It is no longer sufficient to size a battery for overnight use. It must be sized for sustained generation loss.

During Hurricane Melissa, Solar Buzz systems continued to deliver power for clients in severely affected areas through extended JPS outages lasting three to four months. This experience highlights the practical importance of well-designed solar-plus-storage solutions for households that require reliable daytime energy, particularly under work-from-home arrangements.

A Solar Buzz 13.5kW system installation.

The Energy Policy Block in the Hybrid Work Equation

One targeted policy refinement would make a meaningful difference.

The net billing licence is currently required as a precondition for the residential solar tax credit, even for systems installed entirely for self-consumption. Most home-office households will consume what they generate during daylight hours. There is no surplus to export and no commercial rationale for the requirement as applied to these households. It adds months of administrative delay and upfront cost that run directly counter to the goal of broader solar adoption.

An interim waiver of this requirement, pending formal review, would allow households to act now, ahead of further equipment price pressures and any increase in residential energy demand that a work-from-home policy would introduce.

The fiscal impact to the Government would be negligible. The impact to Jamaican households would be immediate.

Hybrid Work and the Energy Opportunity

Those considering solar are encouraged to act ahead of further price movements. Using NHT contributions where eligible, and doing so early, can secure more favourable loan terms and help position a system to deliver cash-flow-positive benefits during the repayment period itself.

Solar Buzz is an NHT-approved vendor. Our consultations begin with your actual energy bill, your roof’s current condition, your NHT eligibility, and your appliance load.

Ready to see what your numbers look like? We design the system, model the projected savings, and structure the financing so the numbers make sense before any commitment is made. Contact us for your online solar consultation.

Written By: Deidre Wedderburn

Client Relations Manager, Solar Buzz

Electricity Energy Saving Government News Solar Energy

EU plans to cut electricity taxes to shield households from Iran war energy crisis

April 25, 2026 jrobinson

The EU will cut electricity taxes and provide consumers with fresh incentives to ditch fuel-burning cars and boilers, the European Commission has announced, as the energy crisis from the Iran war speeds a shift to a clean economy.

The plan, which foresees tweaking rules so that electricity is taxed less than oil and gas, aims to bring down bills while encouraging the move away from polluting devices that prolong reliance on foreign fuels.

The commission said it would adopt temporary state aid rules to allow member countries to directly shield consumers and businesses from high energy prices, but it warned that any support must be “targeted, timely and temporary”.

It stopped short of measures introduced after the Russian invasion of Ukraine, such as a windfall tax on oil and gas companies, which five EU finance ministers had called for earlier this month. The commission also ruled out a cap on gas prices, which energy experts had warned would be counterproductive.

“By investing in clean energy and electrification, we unlock more money for our economy,” said Dan Jørgensen, the energy and housing commissioner. “In the future, instead of buying something and burning it to get energy and buying it again, we need to produce our own homegrown clean energy.”

Europe sped up its deployment of wind turbines and solar panels after the last energy crisis in 2022 but has made little headway in replacing machines that burn oil and gas. The lingering reliance on foreign fuels has left the EU vulnerable to price spikes since the war in Iran, which some analysts fear will persist even if the war ends quickly.

The commission said it would set an electrification target before the summer and propose action to lower the price ratio between electricity and fossil fuels. Experts say this is a key factor in whether consumers and industries adopt cleaner technologies, including by phasing out fossil fuel subsidies.

Proposals to change the EU’s fragmented tax systems require unanimous approval from member states and have historically been hard to pass. Green groups said the plans consisted of “half measures”.

Antony Froggatt, of the campaign group Transport and Environment, said: “These go in the right direction but fail to create the right EU instruments both on the revenue and financing sides. As oil companies make tens of billions in war profits, windfall taxes that relieve the financial pain for European households are critical.”

Under the plans announced on Wednesday, the commission will adopt a legal proposal in May that would incentivise cost-effective use of the electricity grid infrastructure and more flexible consumption habits. It would also give member states and national regulators greater freedom to cut charges and taxes for vulnerable groups and energy-intensive industries.

Louise Sunderland, of the Regulatory Assistance Project, an energy thinktank, said: “The proposal to reduce network and tax elements of the electricity bill, which account for on average across the EU over 50% of the household bill, is a quick-acting step in the right direction. But these reforms will only be as effective as their implementation – and many governments have not yet made use of their existing ability to reduce taxation on electricity.”

The commission also plans to coordinate the filling of gas storage sites well before the winter months, as well as the procurement of jet fuel, which could soon be in short supply. It announced a new observatory to monitor transport fuels and allow it to act before shortages.

Jørgensen said the nature of the crisis meant countries needed the freedom to help struggling industries and households, but he added: “Since our long-term goal is to transition away from fossils, anything we do that might – directly or indirectly – subsidise fossils needs to be temporary and needs to be very targeted.”

Jørgensen has spoken in favour of radical fuel-saving measures proposed by the International Energy Agency last month, such as driving less and avoiding flights. Long supported by climate activists to stop the planet from heating, these measures were absent from the main package but appeared in an annexe of good practices adopted by national governments.

Jørgensen said: “On the demand side, we obviously still encourage member states to do whatever they can to bring down demand. Which specific measures member states choose to use, we think is best for member states to decide.”

The Guardian

battery storage News Solar Energy solar panels

Iran war revives European rooftop solar demand to cut energy bills

April 25, 2026 jrobinson

Demand for rooftop solar systems across Europe has surged since the start of the Iran war, as households rush to shield themselves from soaring power prices triggered by the worst global energy disruption in history.

The conflict has pushed oil, gas and electricity prices sharply higher, hitting companies and households alike and accelerating efforts to find cheaper alternatives and reduce exposure to volatile energy ‌markets.

Solar is among those options, with demand from homeowners more than doubling for some industry players since the war began in late February, according to interviews with more than half a dozen energy equipment wholesalers and renewable utilities in Germany, Britain and the Netherlands.

It’s a timely boost for a technology that accounts for about a third of Europe’s total power capacity, but saw the pace of new installations dip last year for the first time in nearly a decade. Industry advocates argue Europe still needs to do far more to cut its reliance on imported oil and gas.

“The war has merely exposed the problem that has existed all along: energy dependency,” said Janik Nolden, co-founder of German privately owned solar equipment wholesaler Solarhandel24, adding European governments had been “walking into a ⁠trap”.

‘THIS IS ABOUT EUROPEAN RESILIENCE’

Solarhandel24 said net sales more than tripled in March to nearly 70 million euros ($82 million) from a year earlier, and are expected to triple again this month to as much as 60 million euros. The company plans to expand its workforce by about 85 people, roughly a third, to cope with demand.

To secure supply, Solarhandel24 has stocked up around half a million solar panels in recent weeks – a costly decision, Nolden said, but one he sees as worthwhile given the potential for net sales to rise to around 400 million euros in 2026 from about 250 million euros last year.

Germany’s Enpal is seeing a similar trend. The energy firm said orders rose 30% year-on-year in March to 130 million euros, while April was on track for a 33% increase to about 120 million euros, driven by rooftop solar installations.

“This is about European resilience,” said Enpal CEO and founder Mario Kohle. “We are seeing this trend in the defence sector too. Just as Europe must be able to defend itself, we must be able to supply our own energy.”

The financial figures from Solarhandel24 and Enpal have not been previously reported.

While aggregated installation data for Europe are not yet available, industry associations in Germany and the Netherlands have confirmed ‌a pickup ⁠in demand since the war began.

Executives say homeowners are increasingly opting for full systems combining solar panels – nearly 90% of which are supplied by China – with batteries and electric-vehicle wallboxes, allowing surplus power to be stored and used later.

That trend is also lifting demand for energy storage technologies, which Holland Solar’s Wijnand van Hooff says is seeing demand increases of 40%-50%.

“This cannot be explained by purely seasonal factors,” said Filip Thon of E.ON

Europe’s largest energy network operator, which also sells rooftop solar systems. Customer requests, he said, have nearly doubled year-on-year.

A STRUCTURAL SHIFT?

Some executives also point to upcoming changes to Germany’s renewable energy law as an additional driver of demand for rooftop installations, which ⁠typically cost between 10,000 and 20,000 euros for an average family home.

The war-driven surge comes after the pace of new European solar installations slowed

in 2025, according to industry lobby SolarPower Europe, with weak residential demand a key factor following the phase-out of support schemes.

Shaes in SMA solar, the world’s third-largest solar inverter maker and one of the few remaining European equipment producers, have risen about 50% since the war began. The company has also reported an uptick in ⁠demand.

“We view the spike in demand as a structural shift that current geopolitical events are accelerating, not creating,” said Ed Janvrin, who heads the solar and heating business at Britain’s OVO Energy, adding April sales in the division were roughly 10 times higher than a year earlier.

Chinese solar manufacturers, however, say any war-related boost in global demand is unlikely to significantly ease the sector’s overcapacity, with China alone having enough ⁠manufacturing capacity to meet this year’s expected global demand nearly twice over.

Even so, the surge highlights how geopolitical shocks can rapidly reprice the value of renewables, said Jannik Schall, co-founder of German renewables firm 1Komma5Grad, noting that solar demand during the 2022 energy crisis had been even stronger.

“The recurring energy crises prove the renewables sector right.”

Reuters

Crude Oil News Oil

Why fuel and food prices could still be affected for months

April 9, 2026 jrobinson

After news broke of a two-week ceasefire in Iran, stock markets across the globe rallied and the price of crude oil plunged.

But there is less optimism over how much this will feed through to people’s finances, with fears long-lasting damage has already been set in motion.

The last month has seen ships carrying oil, liquid natural gas and fertiliser effectively blocked from passing through the Strait of Hormuz, while significant damage to facilities in the Gulf has halted production.

Even if the ceasefire holds and a peace deal is reached in time, analysts estimate it will take months to restart production and get supplies back to normal.

No immediate change to rising fuel prices

Despite today’s plunging crude oil price, it remains higher than pre-war levels and drivers should not expect a significant drop in costs at the pump soon, says the RAC.

Its head of policy Simon Williams says there is still huge uncertainty for drivers, and their best hope is for pump prices to stop rising in the coming days.

But he says some smaller independent forecourts – which buy oil as it costs on the day rather than in advance at a set price – may be quicker to pass on reductions.

“Much will depend on the stability of the ceasefire, whether oil shipments can move freely through the Strait of Hormuz, and the longer‑term impact on oil production across the Gulf,” he says.

He adds a sustained lower price – over several weeks – is needed to meaningfully lower wholesale fuel costs.

Rachel Winter, from the wealth management company Killik & Co, says it is difficult to predict how quickly costs at the pump might fall.

“I would expect it to take at least a few weeks, if not a few months,” she told BBC Radio 4’s Today Programme.

Meanwhile, jet fuel is roughly double its pre-war levels.

Willie Walsh, the boss of the International Air Transport Association (IATA), says even if traffic through the waterway resumes now, it will take months for supplies to reach the level they need to be at.

Passengers should expect higher ticket prices in the meantime, he says.

Some airlines have already hiked fares, while some have cut routes.

Even if jet fuel were able to flow through the strait, it still needs refining – and some facilities have been damaged, Winter adds.

Alan Gelder, senior vice-president of Refining, Chemicals and Oil Markets for energy analysts Wood Mackenzie, says the whole supply chain needs to return to normal, with ships getting to the right place and refineries resuming operation. That’ll take “weeks, not days”, he believes.

Food still expected to become more pricey

A third of the world’s fertiliser usually passes through the Strait of Hormuz, and consequently prices have shot up in recent weeks.

It has already become more expensive to transport food across the UK, and for farmers to operate agricultural machinery powered by increasingly expensive diesel, while crop growers who use energy to warm their greenhouses will be facing hikes when the energy price cap resets in July.

The Food and Drink Federation, which represents thousands of UK manufacturers, says the ceasefire hasn’t ended the “long‑term uncertainty”.

Recovery to supply chains and energy infrastructure in the Gulf is expected to take between six months and a year, says Dr Liliana Danila, its chief economist.

“This means manufacturers will continue to feel the impact of supply chain disruptions for oil, gas, fertiliser, packaging materials and essential cleaning chemicals, keeping costs under strain for months to come.”

Even if the conflict ends within the next two weeks, it expects UK food inflation to reach at least 9% before the end of the year.

Wholesale gas prices likely to stay high

So far, households under Ofgem’s energy price cap have been shielded from the spike in wholesale energy prices.

The cap resets for three months in July, and we are more than halfway through the window the regulator uses to calculate the new price. Experts have been expecting a big jump at this point.

The government has promised support based on household income, but hinted this might not come until autumn.

Dr Craig Lowrey, principal consultant at Cornwall Insight, says a ceasefire eases some of the immediate pressure on gas markets but “does not wipe the slate clean”.

If the strait opens and stays open this will ease prices and be reflected in the July price cap, he says, but adds: “Unless prices fall well below where they were before the conflict, the wholesale price rises seen through March and early April will still feed through to bills.”

Lars Jensen from Vespucci Maritime says companies will want reassurances on how vessels can transit safely, and he doesn’t believe the two-week pause will be enough to restore trust.

“We should see an increase in exiting vessels,” he told Today.

“We will likely also begin to see a trickle of vessels going into the Gulf, but those two will not be of the same magnitude.”

Aside from movement through the strait, Lowrey says damage to gas infrastructure in Qatar will take years to rebuild, meaning supply constraints will continue.

“As a result, even with a ceasefire, wholesale gas prices are likely to stay elevated for some time, limiting how far the July price cap can fall.”

BBC

Crude Oil Electricity Government News Solar Energy

Oil prices rise as concerns grow over ‘fragile’ US-Iran ceasefire

April 9, 2026 jrobinson

Global oil prices have risen as concerns grow over whether a fragile US-Iran ceasefire will hold after Israel launched a wave of strikes on Lebanon.

The attacks led Tehran to warn of a “regret‑inducing response” if they continue, while US President Donald Trump has said the country’s forces will remain in the region until Iran complies with the “real” ceasefire agreement.

Oil prices had plunged on Wednesday after an agreement to pause the conflict was announced, which included the reopening of the key Strait of Hormuz waterway.

But reports that Iran said the crucial shipping route will stay closed because of the Israeli strikes has renewed fears of a lengthy disruption to energy supplies.

Global benchmark Brent crude rose 2% to $96.53 a barrel, while US-traded West Texas Intermediate was 2.8% higher at $97.02 as pressure mounted on what Vice President JD Vance described as a “fragile truce”.

Stock markets also reversed some of the major gains they made on Wednesday. Japan’s Nikkei 225 index closed down 0.5%, while in Europe the UK’s FTSE 100 slipped 0.4%, Germany’s Dax index was 1.3% lower and France’s Cac was down 0.8%.

“I think there’s a little bit of nervousness in global markets,” Victoria Scholar, head of investment at Interactive Investor, told the BBC’s Today programme.

“Markets are giving back some gains… and I think that reflects a lot of uncertainty over whether the Strait of Hormuz is actually open.”

Sim Moh Siong, strategist at Singapore bank OCBC, said the flow of energy shipments through the strait will be the focus in the days ahead while uncertainty remains over how Tehran plans to oversee the movement of vessels.

One of the conditions of the ceasefire agreement was that ships would be able to safely use the Strait of Hormuz.

However, vessels in the Gulf have received a warning from Iran’s navy that any vessels seeking to cross the Strait of Hormuz without permission “will be targeted and destroyed”, the shipping brokerage firm SSY has confirmed to BBC Verify.

Only a handful of ships have crossed the waterway since the deal was announced – well below the rate of some 130 vessels that transited daily before the war.

It will take a minimum of 10 days to clear the existing backlog of vessels, even if the strait resumes its usual volume of shipping, according to maritime tracking firm Pole Star Global.

In recent weeks, some countries, including Malaysia, India and the Philippines – have negotiated safe passage for its ships.

“It is very difficult to plan because every day you get very different news,” said Nils Haupt from container shipping firm Hapag-Lloyd, which still has six ships in the Persian Gulf.

“Yesterday [Wednesday] was a typical day. You get the news, ‘it will now be open and something is happening now’, and then in the evening it is not happening,” he told the Today programme.

Haupt said they were still waiting for official information on whether there will be fees to pass through the Strait of Hormuz, but warned that if there were it could have a major impact.

“If this means that for the coming years there will be a fee for the Strait of Hormuz of millions which is double, triple the price of crossing the Panama Canal or the Suez Canal it would be quite ridiculous for the entire industry.”

There is disagreement over whether Lebanon is included in the ceasefire.

On Wednesday, Israel launched its heaviest bombardment of the country in this conflict, killing at least 182 people.

Hezbollah said in a statement posted on social media that it had fired rockets at northern Israel. The Iran-backed militia says it was in response to ceasefire violations.

BBC

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