More than 13,100 accredited consultants and contractors have benefited from its awareness sessions and instructional videos, underscoring the platform’s growing role in smoothing the path for construction professionals across the emirate.

OWNEK, the Arabic word for “Your Help,” was designed with a straightforward premise. Too many project applications fail on the first submission, not because the work is substandard, but because applicants misunderstand DEWA’s documentation requirements.

The platform addresses this directly, offering step-by-step guidance in Arabic and English on how to apply for electricity connections, fill out application forms correctly, prepare the right documents in the required formats, and meet all necessary protocols before a single form is officially filed.

The practical result is that contractors and consultants increasingly secure approval for electricity connection applications, including the preliminary no-objection certificate (PNOC), on the first attempt, saving time and cutting the cost of delays.

Feedback from industry professionals has been positive. Mohammed Naseeh at Mazari Contracting LLC said the platform clearly lays out the steps required for PNOC applications and highlights key technical requirements and compliance standards, helping consultants and contractors prepare accurate submissions and avoid rejections.

Usman Jelani at Fixtech Technical Services LLC described it as reflecting a highly professional approach that supports first-submission approvals and DEWA’s commitment to customer convenience and continuous innovation.

MuthuKumar Elangovan at Al Manama Contracting LLC noted that the videos simplify the PNOC submission process by clearly outlining required technical inputs, including load details, plot information, service routing and compliance with DEWA standards.

Ahmed Nael at MEPCO Electro Mechanical Works LLC added that the tutorials offer comprehensive step-by-step guidance covering all required inputs for low-voltage design, including layout requirements, design documentation and submission guidelines.

The tutorial videos also demonstrate what DEWA’s inspection engineers look for during both high-voltage substation and low-voltage inspections, giving contractors a direct view into the evaluation process.

OWNEK sits within DEWA’s broader effort to support Dubai’s Economic Agenda D33, which targets doubling the size of the emirate’s economy over the next decade and cementing its place among the world’s top three cities. For an authority managing infrastructure connections across a rapidly growing metropolis, reducing submission errors and accelerating approvals is not merely an administrative convenience. It is a foundational requirement for keeping pace with Dubai’s growth.

Image Credits: DEWA

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Thanks to the “Go Green” theme of the 21st-century global economy, investors are now eager to spend trillions on energy transition, but at the same time, too much money is piling into mature projects, with high-risk innovations struggling to attract backing. Will there be enough money in the world to save the planet? It is an urgent question that has a complicated answer.

Big-picture forecasters identify the enormous amounts required to fund a more environmentally friendly future, as well as the equally intimidating gaps in obtaining them. According to European financier Allianz, to meet the globally agreed-upon 2030 emissions targets, investment in the energy transition must more than double to $4.05 trillion annually. In a 2023 report, the Boston Consulting Group (BCG), a United States-based firm, projects a net-zero “capital gap” of $18 trillion.

The situation looks even more dire for 2025. With his promise to “drill, baby, drill” for oil and gas, United States President Donald Trump has reclaimed the presidency and will eliminate the generous green subsidies that his predecessor, Joe Biden, had advanced through the Inflation Reduction Act (IRA). High energy costs and farmer protests are undermining support for Europe’s ambitious transition agenda, while Canada is about to repeal its historic carbon tax.

In financial markets, the cost of capital-intensive energy infrastructure is continuing to rise due to persistently high interest rates. A return to reliance on fossil fuels is being prompted by the AI-driven surge in data centre construction, which is driving up electricity demand estimates.

According to Richard de los Reyes, a portfolio manager at T. Rowe Price’s New Era Fund, one of these data centres can consume as much electricity as a small city. The need for natural gas to meet demand is increasingly recognised.

Mismatched realities

However, practitioners in the financial trenches who are raising capital and structuring deals have a very different perspective. They are concerned about pursuing too few green investments with too much capital.

According to Alex Leung, head of infrastructure research and strategy at UBS Asset Management, “I continue to firmly believe that the megatrends of decarbonisation and digitalisation will revolutionise our way of life. However, these sectors are becoming increasingly crowded. The world of renewable energy is becoming more and more fragmented from a financial standpoint. How can both be true? Capital is plentiful, but it is largely concentrated in a small number of established green technologies, while more creative or untested industries have difficulty obtaining funding.”

On the one hand, investors can support well-established, reasonably priced technologies with the realistic hope of a consistent, multi-decade payout. Since economies of scale and a boom in Chinese equipment have driven the costs of solar and onshore wind power below those of fossil fuels, they have entered this category. Then there are technologies like offshore wind that have high costs and unknown risks, or technologies like carbon capture or green hydrogen that show promise but have not yet turned a profit. For these projects to become commercially viable, they still need government assistance or wealthy corporate backers.

Antoine Saint Olive, global head of infrastructure and energy finance at Natixis Capital and Investment Banking in Paris, said, “Everyone wants to be part of the energy transition on paper. But when you have a real deal on your desk, in many cases, you are talking about new technologies.”

As investors lament over crowded trades, this mismatch, between a surplus of capital for proven projects and a shortage for riskier innovations, helps explain why trillions are still required. The most important agreements arguably lie in the intersection of established and emerging technologies: rapidly evolving solar and wind energy storage systems and the modifications to grids required to transmit them. Without improved customer delivery, renewable energy investments will eventually reach a ceiling, and in certain locations, they may have already.

According to Rebecca Fitz, a partner at BCG and a founding member of the company’s Centre for Energy Impact, current grids can generally handle renewable energy until it accounts for 15% of their input. She said that there is “a bottleneck in power market design” in some regions of Europe where the percentage is higher than 50%.

Stef Beusmans, an associate partner at Sustainable Capital Group in Amsterdam, said, “Moving green energy from where it’s best produced—Spain and Portugal for solar, the Netherlands for wind—to where it’s needed is particularly challenging due to Europe’s patchwork of national grids and regulators. Europe finds it more difficult to really accelerate the deployment of clean energy due to different national support schemes.”

Energy finance at a crossroads

The venerable, obscure world of infrastructure finance, which accounts for roughly 4% of global capital, faces both opportunities and challenges as a result of the energy transition’s immense scope and complexity, according to UBS. In this area, plain vanilla deals are uncommon. Infrastructure investors must structure transactions individually and frequently bear the risk over an extended period of time, but bond underwriters and traders have access to rating agencies and liquid markets to help them manage risk.

According to Leung, “It could take up to a year to structure and close a deal. After that, active management is necessary for many infrastructure assets. This goes beyond simply cutting a coupon.”

As per Marta Perez, who leads the Americas infrastructure debt team at Allianz Capital Partners, green investments present a more complex scenario. She clarifies that established project finance models, originally devised for predictable long-term assets like traditional fossil fuel power plants, must undergo transformation to cater to the variability and often decentralised attributes of renewable energy systems.

Climate activists prioritise a variety of issues, such as building insulation and tree planting. However, electricity is the main issue for investors. According to BCG, approximately 90% of the $18 trillion net-zero capital gap is attributable to electric vehicles and other “end uses” of electricity.

Allianz reports that in 2023, “electrified transport” and renewable energy production each accounted for over $600 billion in global spending. Batteries and other energy-related components ranked fourth at $135 billion, while power grid upgrades came in third at $310 billion.

These figures will only rise due to the haste to construct AI data centres, which are huge energy users. According to UBS, the United States will generate an astounding 20% more electricity per year between 2023 and 2026. Leung claims that because the AI craze will require more power from fossil fuels, it will be “slightly negative for decarbonisation in the short term.”

However, AI also draws the world’s renowned tech companies further into the energy transition. Amazon, Microsoft, Alphabet (the parent company of Google), and other hyperscalers that run data centres are still “among the most committed to net-zero,” according to Leung, despite recent conciliation with Trump. They might have to pay more for clean power.

The AI-driven power surge is increasing the role of regulated utilities, which can raise rates to cover their costs. For energy-transition investments, this might offer one of the safest financing options. But public opposition to higher taxes, particularly those aimed at financing Big Tech’s energy appetite, might prove to be a significant barrier.

BCG claims that North American utilities will supply the remaining 35% of the anticipated increases in power demand from natural gas and 60% from renewable sources.

Infrastructure experts believe that Trump is one threat that may be overrated. The length of energy investments— much longer than a single presidential term—makes changes in policy less significant. As per UBS research, Trump will also have difficulty dismantling or repealing the IRA.

Leung and his associates point out that about 70% of the US renewable projects currently in development are in “red” states that supported Trump. In the House of Representatives, 18 Republicans have already signed a letter opposing repeal, which is more than enough to make a difference in the closely divided chamber. It is difficult to determine the exact impact of this resistance, though, because Trump has been avoiding Congress on a regular basis.

Despite being politically conservative, Texas leads the United States in solar and wind energy. More than 70% of Americans nationwide favour increased use of solar and wind power, according to Pew Research.

In the worst-case scenario, according to UBS, Trump will make changes to the IRA rather than abolish it, enabling Republican-led states to finish short-term renewable projects while still giving the President a political win.

China dominates green investing

The largest economy in the world, the US, does not lead the way in green investment. According to CarbonCredits.com, China holds that distinction, investing $818 billion in clean energy in 2024, more than the US, European Union (EU), and the United Kingdom combined. In 2024, the People’s Republic saw a 45.2% increase in solar capacity.

China is also far ahead in its nuclear power plant programme, which may lead to a resurgence in the US, if not Europe. Although nuclear power has other known hazards, it does not emit carbon. Since China is primarily funding its renewable energy advancements domestically, private capital from around the world is looking elsewhere. Europe is still dedicated to a surge in renewable energy to partially replace Russian natural gas imports, which Russian President Vladimir Putin stopped due to sanctions pertaining to Ukraine.

According to the European Investment Bank (EIB), the EU is still investing ten times as much in renewable energy as it is in fossil fuels, despite also placing bets on more liquefied natural gas. To reach the 2030 carbon reduction targets, the bloc’s overall energy-transition investment is predicted to continue increasing, having increased by a third in 2023 to $360 billion.

Other countries are joining in as well. With plans to triple by 2030, India’s renewable capacity jumped to almost half of the US level last year. In India, six significant solar developers have “attracted investments from diverse sources, including foreign institutional investors from North America, Europe, and the Middle East,” according to S&P Global.

Nearly 85% of the record 10.9 GW of power capacity added by Brazil in 2024 came from renewable sources. With an investment of $8.4 billion promised, Saudi Arabia is backing the biggest and most ambitious green hydrogen project in the world, close to Neom, the Kingdom’s “city of the future,” according to Neom.

The objective is to use electric current generated from renewable sources to split water molecules into their hydrogen and oxygen components, then store the hydrogen for use as fuel. Following closely behind, the United Arab Emirates (UAE), Saudi Arabia’s neighbour, is using its plentiful sunshine to power massive renewable energy projects.

Green energy draws investors

Big-ticket investors worldwide remain driven by environmental, social, and governance (ESG) principles, as indicated by Saint Olive of Natixis. Banks still wish to “greenify their balance sheets,” even though they contribute at least as much to infrastructure as institutional investors. Banks outside of the United States do, at least.

Saint Olive noted that banks and sponsors around the world still have ESG ambitions, and the change of a single country’s president will not make them fall apart.

The EIB estimated that private equity investments in green energy would reach $26 billion globally, up from almost nothing before the COVID-19 pandemic. The amount at stake could be many times that amount, given the private equity model’s practice of leveraging up equity holdings.

According to Fitz of BCG, as solar energy gains popularity and Texas lawmakers push legislation that favours fossil fuels, private equity firms in the US are paying special attention to onshore wind generation.

She said, “Private equity is paying more for wind assets. Going forward, they see wind as an essential component of the energy picture.”

One of the biggest obstacles still facing the world is financing the energy transition. When the US Department of Transportation completed the interstate highway system in 1991, it cost $129 billion, making it one of the largest infrastructure projects of the 20th century. The capital requirements for green power in a single year are a tiny portion of that. Utilising tried-and-true technology, the US highway system was funded by the federal government.

Aside from China, governments face significant pressure to transfer as much of the financial burden as possible to the private sector, given the social responsibilities of the 21st century. Saint Olive emphasises that many estimates of the renewable energy transition underestimate the significant costs involved in mining the metals required for constructing batteries, electrical grids, and turbines.

He argues that mining is a “fully merchant business” reliant on fluctuating prices that hinder fixed, infrastructure-style returns, and that it faces no favourable treatment from regulators or the public. He claims that many banks have a negative view of the mining industry from an ESG standpoint. They prefer to let others pay for it.

Nevertheless, despite the White House’s rhetoric, the global energy transition is not only continuing but also accelerating. However, investors in infrastructure are also accustomed to creating custom solutions for a project’s evolving environment.

For construction in the United States, you might have bank loans before looking to the capital markets. European plants could rely on power purchase agreements that last for ten years. Very long-term financing, such as construction plus 25 years, is available in the Middle East.

“Whether the transition will occur quickly enough to prevent ecological disaster is more important than whether it will occur at all. If governments and engineers can work together to produce profitable investments, private finance appears ready to play a role. More capital will come in if projects are generating 20% returns. Although it’s not always discussed, economic viability plays a significant role in the equation,” Leung noted.

Green energy investment is growing, but money flows mostly to proven technologies. Riskier innovations still struggle for funding. If governments and investors collaborate wisely, the world can accelerate the energy transition while keeping projects profitable and sustainable.

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A Strong Foundation: Contributing To Türkiye’s Supply Security

Within the framework of the memorandum of understanding signed between the Republic of Azerbaijan and the Republic of Türkiye, SOCAR Türkiye plays a strategic role in Türkiye’s energy supply security by providing up to 1.7 billion cubic metres of natural gas annually. This gas is utilised in the group’s petrochemical and refinery facilities in the country, forming a key link in the integration chain. What sets SOCAR apart is its integrated supply chain approach, which creates simultaneous value across global natural gas and electricity markets.

Robust Presence In The Wholesale Market

As of today, SOCAR Enerji Ticaret stands among the largest private sector players in Türkiye’s wholesale electricity and natural gas markets. The company’s electricity end-user portfolio has reached 300 MW, while its total sales and trading volume have exceeded 1000 MW. By 2024, the combined electricity and natural gas trading volume reached 20 TWh. These figures reflect physical trading capabilities and advanced competencies in portfolio management, price optimisation, and flexible contract structures.

International Electricity Trading

A key pillar of SOCAR Enerji Ticaret’s growth strategy is strengthening regional trade. Since 2023, the company has initiated cross-border electricity trading with Georgia, Bulgaria, and Greece. In 2025, it expanded its scope to include the transit of electricity produced in Azerbaijan to Türkiye via Georgia. This milestone enhances regional energy security, reinforces SOCAR’s position as a source country, and contributes to Türkiye’s diversification of import sources.

From Gas To Power: Toward An Integrated Value Chain

SOCAR Enerji Ticaret is expanding its current operations and aiming to integrate electricity generation into its value chain through its Gas to Power strategy. This includes growing interest in combined cycle gas turbine (CCGT) investments, which enable direct utilisation of gas resources for electricity production. This strategic direction allows for higher value-added use of natural gas and expands cross-border trading potential.

Transformation Through A Sustainability Lens

SOCAR Enerji Ticaret places sustainability at the core of its operations. To increase electricity sales from renewable sources and reduce its carbon footprint, the company integrates mechanisms such as renewable Power Purchase Agreements (rPPA) into its supply portfolio. The solutions offered to customers span a wide range—from gas and electricity supply to tailored energy products, sustainable solutions, green energy, and rooftop solar panel services. In addition to solar projects, the company provided I-REC-certified green energy to 23% of its end-user portfolio in 2024.

With the acquisition of an Aggregator license in 2025, SOCAR Enerji Ticaret aims to transform its experience in power plant management into a broader service portfolio. This step further enhances its portfolio optimisation, balancing, and portfolio management capabilities.

Currently managing a renewable PPA portfolio exceeding 100 MW, SOCAR Enerji Ticaret leverages this capacity to meet its commercial needs and deliver value-added services to its customers. Thanks to its Aggregator license, the company gains the flexibility to manage diverse generation assets from a single centre, positioning itself as a strong energy solutions partner offering secure, competitive, and sustainable supply services.

SOCAR Enerji Ticaret’s growth is shaped by commercial metrics and its vision of energy supply security, regional integration, green transformation, and creating an integrated value chain. By diversifying Azerbaijan’s resources across various supply chains and offering alternative trading products and channels, SOCAR Enerji Ticaret plays a pivotal role in the regional energy transition.

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The Republican also enacted legislation establishing a regulatory framework for dollar-pegged cryptocurrencies, commonly known as stablecoins, a milestone that could help normalise their use for everyday transactions and money transfers. The bill, called the GENIUS Act, was passed by the House of Representatives in July with a vote of 308 to 122, earning support from nearly half of the Democratic members and a majority of Republicans. It had previously cleared the Senate.

Treasury Secretary Scott Bessent said the new technology would buttress the dollar’s status as the global reserve currency, expand access to the dollar economy, and boost demand for American Treasuries, which back stablecoins. Stablecoins are designed to maintain a constant value, usually a 1:1 US dollar peg, and their use has exploded, notably among crypto traders moving funds between tokens. The industry hopes they will enter mainstream use for sending and receiving payments instantly.

The new law also requires stablecoins to be backed by liquid assets, such as US dollars and short-term Treasury bills, and for issuers to disclose publicly the composition of their reserves monthly. Yet a stark contradiction lies at the heart of these plans, and we will use the Bitcoin example to explain this. Even as Trump champions an all-American “Crypto Vision,” he has unleashed steep import tariffs that jack up the cost of the very hardware US Bitcoin miners depend on, most of which is made in China.

This policy double-edged sword has left US miners, including the Trump family’s own mining company, caught between patriotic rhetoric and harsh economic reality. Industry experts warn that unless this contradiction is resolved, Trump’s dream of US dominance in Bitcoin mining may be undercut by the practical challenges his trade war has created.

Trump’s push for a Bitcoin mining empire

Trump’s recent policy moves mark a stunning 180-degree turn in the crypto world. After once calling Bitcoin a scam, he now openly courts the crypto industry. In his first months back in office, Trump fulfilled key crypto pledges by establishing a US Strategic Bitcoin Reserve, stockpiling seized Bitcoins as national reserves, and replacing regulators seen as hostile to crypto with crypto-friendly figures.

For example, Trump ousted the prior Securities and Exchange Commission leadership, known for its aggressive stance on crypto, and installed former commissioner Paul Atkins, a pro-Bitcoin advocate, as SEC Chair. He also named tech investor David Sacks as “crypto and AI czar” to coordinate digital asset strategy and scheduled the White House’s first-ever crypto policy summit. All these steps signal that Trump’s administration is throwing its weight behind Bitcoin mining and blockchain businesses.

“Our country must be the leader in the field,” Trump has said of cryptocurrency. A centrepiece of Trump’s vision is for the US to dominate Bitcoin mining, the energy-intensive process that secures the Bitcoin network and mints new coins.

In July 2024, Donald Trump clearly addressed an enthusiastic crowd at the Bitcoin 2024 conference. He reiterated that America would become the undisputed Bitcoin mining capital of the planet. He explicitly called for an all-American Bitcoin: one mined on US soil with US-made equipment. To back miners, Trump has even floated using energy policy as a lever, hinting at measures to provide abundant, cheap power for mining farms.

All told, the administration’s message is clear. It wants Bitcoin’s future to be written in red, white, and blue, with American firms reaping the rewards of the crypto boom.

Global hardware arms race

Grasping the challenge requires first understanding how Bitcoin mining works. Bitcoin mining is a global hardware arms race. Miners worldwide run specialised computers (called ASICs) that race nonstop to solve cryptographic puzzles; the first to succeed earns the right to add a block of transactions to the blockchain and collect newly minted Bitcoins as a reward. The faster and more efficient your machines, the better your odds of winning this race and profiting.

Mining companies must constantly upgrade to cutting-edge hardware and newer rigs with more computational power and better energy efficiency or risk falling behind rivals. “To ensure their fleet is sufficiently powerful to beat out competitors, miners must constantly replace old and weather-beaten hardware with the latest, most advanced machines,” explains one industry report.

In short, access to top-notch mining rigs is crucial for any hope of profitability. Lagging in hardware is a quick road to being edged out of the market.

Here lies a fundamental tension for Trump’s “made in the USA” mining dream. The world’s best mining machines are not made in America. In fact, the global mining rig market is overwhelmingly dominated by Chinese manufacturers. Two companies from China, Bitmain Technologies and MicroBT, are kingpins of mining hardware, together accounting for an estimated 97% of all Bitcoin mining machine sales. A third Chinese-origin firm, Canaan, makes up much of the remainder.

These firms produce the popular Antminer and WhatsMiner series ASICs that power a huge share of Bitcoin’s network. According to the Cambridge Centre for Alternative Finance, this Chinese duopoly controls virtually the entire market for Bitcoin rigs. Bitmain and MicroBT’s near-monopoly didn’t happen by accident. They had an early start in developing specialised mining chips and achieved massive economies of scale, fending off countless would-be Western challengers.

“The road is lined with the corpses of people who tried,” jokes Chris Bendiksen, a Bitcoin research lead at CoinShares, about past failed US mining rig ventures. The result is a lopsided reality. While the United States now hosts a large share of Bitcoin mining operations (over 30% of global mining power is in North America), more than 90% of the physical machines powering the network are built in China.

This imbalance in geographic supply and demand means American miners remain heavily reliant on imported gear, and it’s not only an economic factor but also a strategic one. “Hundreds of thousands” of Chinese-made mining rigs are plugged into the US electrical grid, notes Sanjay Gupta, chief strategy officer of US-based manufacturer Auradine. It’s something that he and others consider a security risk if tensions with China worsen. In essence, China dominates Bitcoin’s hardware supply chain, and any American bid for mining supremacy must contend with that fact.

Tariffs backfire on US miners

Trump’s trademark policy tool—tariffs on imports—has now been extended to this supply chain, with far-reaching consequences. On April 2, 2025, the president shocked the crypto mining sector by announcing punitive new tariffs on dozens of countries, including those crucial to mining equipment production.

China was the primary target in Trump’s so-called “Liberation Day” tariff package. Shipments of high-tech goods from China were set to face a whopping 55% import duty. But the measures went further. Trump also slapped tariffs in the range of 24–36% on imports from countries like Malaysia, Indonesia, and Thailand. These were the locations where Chinese companies often assemble mining rigs or route shipments to evade direct China–US duties.

In short, the administration moved to seal off any backdoor for Chinese-made miners, ensuring that whether a machine comes directly from Beijing or through a third country, it would incur steep US tariffs.

For US Bitcoin mining firms, which collectively import hundreds of thousands of ASIC rigs, these levies landed like a sledgehammer. Suddenly, the cost of new hardware could spiral by 25%, 50%, or even higher for Chinese-origin machines. “The tariffs included a levy on shipments from China, later revised to 55%, and tariffs between 24 and 36% on Indonesia, Thailand, and Malaysia,” WIRED reported, noting that many American miners “faced the prospect of spiralling hardware costs” as a result.

Even American Bitcoin, the new mining venture started by Trump’s sons Eric and Donald Jr., was not spared, as it too planned to source cutting-edge machines from the dominant Chinese suppliers. The irony was palpable. The president’s family business, launched to champion US mining, was now pinched by his trade policy.

Existing orders that US mining companies had placed with Bitmain or MicroBT suddenly became much more expensive, as any unfulfilled deliveries would be hit with the new import taxes. Long-term supply contracts offered no escape clause for tariffs, meaning miners were stuck either swallowing the additional costs or deferring equipment shipments altogether.

US miners, large and small, have decried the tariffs as a serious setback. One industry lobbying group, the Digital Energy Council, has reportedly pressed the Commerce Department to exempt cryptocurrency mining rigs from the tariff lists, warning that the policy could handicap American miners against foreign competitors.

“The tariffs are clearly destructive,” argues Chris Bendiksen of CoinShares, who says they directly undermine Trump’s goal of expanding the US mining sector. The situation indeed seems counterproductive. How can the US lead in Bitcoin mining if its miners struggle to afford the latest equipment?

In effect, Trump’s nationalist tariff policy is colliding with his nationalist crypto ambitions. The cost pressure comes at an already challenging time for miners, as we’ll see, intensifying a broader shakeout in the industry.

On the other hand, Trump officials insist this short-term pain is for a longer-term gain. The White House argues that two things can be accomplished at once. The tariffs can push manufacturing to American soil and use leverage to drive down other costs for mining firms.

“Two things can be accomplished at once,” a White House spokesperson told WIRED, describing the aim to onshore hardware production while using US energy policy to reduce miners’ cost burden.

In theory, by making imported rigs pricier, the tariffs create a protective bubble for United States-based equipment manufacturers to grow. Indeed, as the tariffs took effect, those few companies building Bitcoin rigs in America suddenly found an opening. Chief among them is a Silicon Valley start-up called Auradine.

Energy costs, margins, and competition

Even without tariffs, Bitcoin mining is a brutally competitive, low-margin business, and that has only intensified in 2025. Start with Bitcoin’s own design. The network undergoes a “halving” roughly every four years, cutting the block reward (the new Bitcoins miners earn) by 50%. The most recent halving in April 2024 slashed miners’ Bitcoin rewards from 6.25 BTC per block to 3.125 BTC, squeezing revenue per unit of computing power.

At the same time, network competition has grown fiercer as more miners join, and the Bitcoin algorithm adjusts to increase mining difficulty. This arms race, combined with occasional slumps in transaction fees, has steadily whittled down profit margins for mining operators.

Even though Bitcoin’s price has been rising in 2025, providing some relief, analysts note that many other factors are eroding mining profitability. “Fierce competition, a slump in transaction fees, and diminishing Bitcoin rewards… have whittled down margins for mining companies,” WIRED reports, summarising the challenge.

Above all, energy costs are the dominant factor. Electricity can account for 50–60% of a mining firm’s operating expenses. US miners have historically sought out regions with cheap power, ranging from hydro-rich Washington State to wind-powered West Texas. But the surge of new power-hungry industries is changing the equation.

Artificial intelligence data centres have emerged as a major new competitor for electricity and infrastructure. These AI operations are often backed by deep-pocketed tech companies and venture capital, and they’re willing to pay a premium for power and real estate. “Miners have always been scrappy buyers and vultures of the power grid. The AI companies are outbidding them, as they are just willing to pay more,” said Christopher Bendiksen.

In practical terms, that means some power contracts that might have gone to a Bitcoin mine are now going to a data centre instead, or utilities are raising rates knowing AI firms will pay. The US Department of Energy projects that by 2028, AI computing could consume as much electricity as 22% of US households—a stunning statistic that illustrates how much tighter the energy market could get for miners.

For miners, expensive electricity can quickly turn a profitable operation into a money-loser. Fred Thiel of Marathon has noted that a 5- or 10-percentage-point change in electricity rates has far more impact on a mine’s bottom line than a similar change in hardware costs.

Can the US lead Bitcoin mining?

All of this raises a pivotal question. Will Trump’s policies ultimately help or hurt US leadership in Bitcoin mining? The president’s vision of an all-American Bitcoin, mined on US soil with United States-made hardware, strengthening American economic and energy interests, is a bold nationalist gambit. It appeals to those who worry about US dependence on foreign technology and want to ensure the next generation of financial infrastructure is America-dominated.

In the long run, Trump’s tariffs may indeed spur some domestic manufacturing, as evidenced by Chinese firms localising production and startups like Auradine gaining traction. If the US can facilitate its own resilient supply chain for mining equipment and combine it with abundant low-cost energy, the country could solidify its status as a Bitcoin mining hub in the 2020s and beyond.

However, the current evidence suggests that Trump’s approach is struggling to deliver immediate results for miners. Thus far, the tariffs have introduced more instability than opportunity. US mining companies are pausing expansion plans and delaying hardware purchases while they wait to see how deeply costs will rise.

The initial 90-day suspension of the new levies has many in a holding pattern. But if and when full tariffs kick in, some firms may find it untenable to upgrade their fleets and could capitulate. The broader trend of miners diversifying away from Bitcoin or shifting overseas directly undercuts Trump’s goal of US dominance.

Ultimately, Trump’s dual objectives of onshoring the Bitcoin hardware supply chain and supporting a thriving US mining industry may require a more nuanced balancing act than tariffs alone can provide.

The post Trump’s Bitcoin dream collides with tariff reality appeared first on International Finance.

The signing of the tripartite agreement was witnessed via video conference by Egyptian Minister of Electricity and Renewable Energy Mahmoud Essmat and his Greek counterpart Thanos Papastavrou.

The deal was signed between the Egyptian Electricity Transmission Company (EETC), the Greek Independent Power Transmission Operator (IPTO), and Elika, a subsidiary of the Greek Copelouzos Group, which is implementing the project.

“There is a strategic direction to support and strengthen electricity interconnection projects and integration with the networks of neighbouring countries. The interconnection project with Greece is of great importance for achieving sustainable development and falls within a broader strategy for interconnection with the European electricity grid to make Egypt a regional energy exchange centre and a bridge for electricity transmission between the three continents,” Essmat told Daily News Egypt during the occasion.

According to Essmat, the Egyptian and Greek governments are eager to complete the project, which the Egyptian Minister described as an important gateway for the link between Egypt and Europe. He also emphasised the significance of electricity interconnection in supporting the energy mix, particularly renewables, which will bring economic benefits to the countries and parties involved.

The project is of strategic importance as a bridge for transmitting clean energy from Egypt to the European Union (EU), which has included it in its list of electricity interconnection projects funded by the regional bloc.

The pact comes weeks after the announcement of a sweeping plan by the Egyptian Ministry of Planning, Economic Development, and International Cooperation, under which the ministry will target large-scale investments and significant advancements in renewable energy for the 2025/2026 fiscal year. The plan has allocated EGP 136.3 billion (about USD 2.8 billion) to drive Egypt’s energy diversification, grid expansion, and regional leadership as a power hub.

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Last month, Turkey’s solar-powered electricity supply surpassed gas-fired electricity output for the first time, thanks to a surge in solar capacity, and the nation’s first nuclear reactor is expected to begin production in the coming months.

To effectively store the excess energy generated by wind and solar farms, especially during high-demand periods, Turkey is rapidly implementing utility-scale battery systems. The country aims to achieve a battery storage capacity of 80 gigawatt-hours (GWh) by 2030.

Turkey’s reliance on gas and other fossil fuels for power generation seems to be decreasing due to the growing supply of clean energy and the expansion of battery storage capacity. As a result, those bullish on the gas market may need to explore other growth opportunities.

Path Of Growth

World Bank data noted that Turkey’s GDP has grown by an average of 4.7% per year since 2019, which is more than four times the growth rate of the Eurozone and almost double the growth rate of the global economy during the same period.

According to Ember data, the nation’s electricity usage increased by 14% between 2019 and 2024, contrasting sharply with the roughly 5% decline in electricity demand throughout the European Union for the same period.

The data further revealed that Turkey’s electricity demand, which exceeded 340 terawatt-hours (TWh) in 2024, has been primarily driven by government spending on infrastructure as well as the growth of heavy industry and manufacturing.

In recent years, Turkey’s energy consumption has also increased due to the reshoring of several heavy industries from other parts of Europe, such as some German steel and cement production.

Cutting Gas

Despite this consistent growth in power consumption, gas-fired generation has decreased over the last three years, with alternative power sources displacing natural gas in Turkey’s generation system.

According to Ember, 36% of Turkey’s utility electricity supply last year came from coal-fired power plants, making them the nation’s single largest source of electricity.

Key to coal’s staying power has been cheap shipments from Russia, which has struggled to find willing buyers for its energy products since being slapped with sanctions in 2022 following its invasion of Ukraine.

Russian coal exporters have lowered their prices relative to other coal vendors in order to guarantee consistent purchases by Turkey’s power suppliers. As a result, they have been able to secure a significant portion of Turkey’s coal purchases since 2022.

In fact, according to statistics from commodity intelligence firm Kpler, Russia has provided almost 88% of Turkey’s coal imports thus far in 2025, up from an average share of 24% from 2018 to 2021.

However, Turkey’s demand for more expensive natural gas has decreased as a result of the consistent supply of inexpensive coal. Last year, gas-fired power plants provided only 19% of the country’s electricity.

Another 22% came from hydro dams, while the next largest sources of electricity in Turkey were wind farms (11%) and solar farms (7%).

Is There A Rebound?

Turkey’s gas-fired power generation increased by 52% in the first half of 2025 compared to the first half of 2024, giving bulls in the gas market cause for confidence.

The current gas-fired generation peaks, however, are still below earlier gas-fired production spikes, indicating that Turkey’s power companies are still cautious about depending too much on gas to generate energy.

Clean power supplies are also increasing. Last month, the combined production of solar and wind farms produced a record 30% share of electricity supplies, and solar generation this year has increased by 47% compared to the same period last year.

Additionally, Turkey’s first nuclear power plant is only a few months away from starting production on the first of four planned reactors. Once operational, the Akkuyu plant will provide utilities with a fresh supply of clean power, which can be deployed on command instead of gas or coal power to help balance system needs.

Furthermore, according to Global Energy Monitor (GEM), nearly 90% of the approximately 13,000 megawatts (MW) of new power capacity being built or in the pre-construction stage comes from renewable energy sources.

With over 4,800 MW being constructed, nuclear facilities are the single largest source of new capacity in the near-term development pipeline.

According to GEM data, wind farms account for the second-largest percentage of new capacity (2,460 MW), with solar farms coming in third with 1,336 MW.

When finished, clean energy sources will account for more than half of Turkey’s power firms’ total capacity, dominating its near-term development pipeline. This is because only 700 MW of new coal capacity and 890 MW of new gas capacity are being constructed.

As a result, even if Turkey’s power demand growth continues to outperform that of its regional and international counterparts, there is little room for natural gas to make significant gains in the country’s energy mix.

The post IF Insights: Turkey’s clean energy surge undermines gas market hopes appeared first on International Finance.

For example, one former gas “peaker” plant in North Tonawanda (just north of Buffalo) runs almost continuously to power a crypto mine. In the first quarter of 2025, this plant operated 84 out of 90 days, in contrast to just eight days in all of 2021, and it emitted as much CO2 in three months as it had in the previous two years combined.

In effect, mining operations have transformed low-use industrial sites into constant polluters. US officials estimate that nationwide commercial crypto mining already consumes roughly between 0.6% and 2.3% of the country’s electricity, which is a share that could rise rapidly as more facilities begin operation.

Supporters in upstate areas argue that repurposing abandoned plants and tapping into cheap power can help stimulate the struggling upstate New York economy through jobs and increased tax revenue.

However, local regulators and environmental analysts caution that the climate and local impacts may outweigh those benefits. The Energy Information Administration (EIA) has ranked US Bitcoin’s electricity consumption as being comparable to that of an entire medium-sized state. The associated carbon footprint is substantial unless the power comes entirely from zero-carbon sources.

Impact on energy use

Bitcoin mining’s enormous power demands make it a highly energy-intensive industry. Many US operations are powered by fossil fuel plants, which are often ageing coal or natural-gas generators that have been refurbished for crypto use. In New York, miners have acquired decommissioned “peaker” plants and run them at full capacity, resulting in sharply increased greenhouse-gas emissions. At North Tonawanda’s Fortistar plant, which was previously idle, carbon output surged after it was converted into a crypto mining site.

Climate watchdogs warn that adding gigawatts of mining demand typically revives polluting power plants that would otherwise be closed. For example, Texas grid operators have reported that planned large-scale crypto facilities could create up to 43,600 megawatts of new demand by 2027, much of which is expected to be met by newly built gas-fired plants. Indeed, Texas has recently authorised $10 billion in public loans to build or expand plants to satisfy crypto-driven electricity needs.

Across the country, utilities and independent agencies have begun tracking these effects. The EIA and Department of Energy have conducted surveys to measure energy use by mining operations. In 2024, Senator Elizabeth Warren’s office urged the DOE and EPA to mandate energy consumption and emissions reporting for Bitcoin mining, noting that the United States’ share of global Bitcoin mining rose from 4% to 38% between 2019 and 2022.

Environmental groups estimate that even moderate levels of mining usage currently account for about 2% of national electricity consumption. This implies that the carbon and water impacts are equivalent to those of a mid-sized nation.

A United Nations study found that globally, Bitcoin mining consumed 173.4 terawatt-hours in 2020 and 2021, which exceeded Pakistan’s total electrical output. It also required enough water to fill 660,000 Olympic-sized swimming pools. In areas like upstate New York, where climate laws require net-zero emissions by 2040, the use of fossil fuel-based power for mining is viewed as fundamentally incompatible with state goals.

Researchers from Harvard University concluded that Bitcoin mining added more demand to the US electrical grid than the entire city of Los Angeles. The researchers identified corresponding air pollution and environmental concerns in their findings, which were published in March in Nature Communications.

To quantify the energy use of Bitcoin mining, the Harvard researchers analysed data from the 34 largest mining operations in the US, which together account for 80% of the country’s Bitcoin mining capacity. Their database included both the locations of the mines and their energy consumption levels.

Between August 2022 and July 2023, these 34 facilities consumed 32.3 terawatt-hours of electricity. This is 33% more electricity than the city of Los Angeles uses in the same time frame. Approximately 84% of that energy came from fossil fuel sources. In effect, Bitcoin mining has added a city’s worth of electricity consumption to the grid, together with all the associated pollution.

Noise, water, and local livability

Beyond energy use, crypto mines also create significant local environmental burdens. The thousands of high-powered servers and generators in these facilities produce a vast amount of heat, requiring massive industrial fans that operate constantly.

Farmers and rural residents living near crypto mining sites consistently describe a relentless mechanical noise. In Granbury, Texas, a resident compared the sound to having a jet engine permanently stationed nearby. A farmer in Pennsylvania made the same comparison and said her hens were visibly disturbed by the constant hum.

Journalists have documented numerous complaints about piercing noise from Bitcoin farms. One resident compared the experience to standing at the edge of Niagara Falls when the fans are running.

This nuisance is not minor. Medical experts note that prolonged exposure to noise above 80 decibels can increase the risk of cardiovascular issues and other health problems. In both Texas and Arkansas, local officials have recorded reports of headaches, hearing loss, vertigo, and chronic stress attributed to the incessant hum from crypto fans.

A national study observed that noise issues caused by miners are now so common that they have become a persistent source of frustration in rural, mostly Republican communities. Even if the noise complies with local sound ordinances, the constant low-frequency vibrations can make homes unlivable. In North Tonawanda, New York, residents living more than half a mile away from the plant have reported being able to hear its fans from their porches.

Water use and water pollution are additional concerns. Crypto mines often require fresh water for cooling purposes or for maintaining on-site generators. Experts caution that the water demand of Bitcoin mining is insufficiently studied but potentially significant.

According to the same UN study, a large-scale crypto mining site could use as much water as a small city each year, straining already limited water resources in drought-prone regions. Furthermore, diesel or natural gas generators used at some mining locations can emit local air pollutants. For instance, Pennsylvania mining sites that burn waste coal have released sulphur dioxide and fine particulate matter.

The local costs, including impacts on air quality, water resources, wildlife, and human well-being, are considerable.

Opponents in rural communities have voiced concerns about disappearing wildlife, livestock disturbed by noise, and family members tormented by nonstop humming, even behind closed windows. These consequences have led to public meetings, citizen noise-monitoring campaigns, and legal challenges in multiple states.

Economic trade-offs

Proponents of crypto mining often claim that it brings jobs and economic revitalisation to struggling rural towns. A 2022 Politico report highlighted that advocates promote these facilities as a way to stimulate economic growth in upstate New York by repurposing inactive power plants.

Sometimes, local governments offer tax breaks or discounted electricity rates to attract crypto companies. Yet the actual number of jobs created tends to be small, possibly only a few dozen per large facility, while public costs can be substantial.

In Texas, analysts argue that increased electricity demand from crypto mining ultimately drives up prices for everyone. As one report noted, “ordinary Texans may end up footing the bill on their monthly utility statements” as the grid adjusts to crypto-related demand.

In Arkansas, utility providers have stated that industrial crypto operations often pay reduced electricity rates, effectively passing infrastructure costs onto other customers.

Communities have begun reevaluating the costs and benefits. In some rural counties, initial enthusiasm for economic investment has turned into frustration over higher bills and noise disturbances. Activists have highlighted that utilities and state governments have offered generous incentives to crypto firms. For example, the Texas-based company Riot Platforms received about 136 million dollars in power-related credits between 2022 and 2024, which at times exceeded its own mining revenue.

In response, community organising has intensified. In Georgia, residents living near proposed mining sites successfully lobbied their county government to reject rezoning requests, and neighbouring jurisdictions went further by enacting complete bans. In Wisconsin and Pennsylvania, neighbours have launched coalitions to oppose crypto mining, arguing that a small number of jobs are not worth the disruption to local life and the environment.

Even in relatively affluent areas, local governments have imposed moratoria. In 2024, the city council of North Tonawanda voted unanimously to prohibit new crypto mining projects for two years, although existing operations were allowed to continue.

These battles often defy conventional political divisions. Residents who strongly supported pro-crypto politicians have sometimes led opposition efforts. Hood County, Texas, which gave Donald Trump more than 80% of the vote in 2024, witnessed lawsuits and protests by conservatives against a Marathon Digital mine in Granbury.

In local online groups, residents expressed simultaneous support for Trump and deep frustration with the Bitcoin mine that they felt had “destroyed their peace.” In North Tonawanda, activist Deborah Goldeck argued at a public meeting that had the city acted sooner, “we could have avoided the misery of constant high noise levels” that now affect her neighbourhood.

In rural Arkansas, Gladys Anderson’s description of constant “shrieking and humming” from a nearby mine drew media attention and spurred legislative reforms. These grassroots efforts share a common thread. People feel that an industry backed by powerful crypto interests has altered their quality of life without consent.

Political dynamics

Cryptocurrency mining has become a contentious political issue at the state and national levels. The Republican Party has officially taken a supportive stance toward the industry. In its 2024 platform, the GOP pledged to defend the right of individuals to mine Bitcoin and to ensure that Americans can maintain self-custody of their digital assets.

President Trump has repeatedly endorsed crypto mining as a strategy for achieving US energy leadership. He even claimed that producing all Bitcoin domestically would help make the country “energy dominant.”

Crypto companies have poured funding into political campaigns. One watchdog group estimated that the industry spent more than 119 million dollars on federal races during the 2023–2024 election cycle, accounting for nearly half of all corporate spending in some contests.

Several Republican legislators at the state level have introduced “right-to-mine” bills aimed at limiting the authority of local governments to regulate the industry. Politicians from both parties have tried to win over the industry by promising deregulation.

For instance, in New Hampshire in 2025, Republican lawmakers advanced a proposal to prohibit towns and regulatory agencies from imposing restrictions on crypto mining, with the explicit goal of signalling support to the industry. In Texas, political leaders have introduced incentives such as tax breaks and discounted electricity for mining companies, while some municipalities have approved subsidised power deals.

However, this top-down enthusiasm increasingly conflicts with the sentiments of Republican voters in rural communities. Commentators have described a growing national backlash, with many traditionally conservative voters expressing opposition to crypto mining when it affects their neighbourhoods.

The Week summed up the situation by noting that in some areas, Trump’s crypto-friendly policies have met resistance from the very voters who helped return him to the White House. This tension between party loyalty and local quality-of-life concerns is now playing out across the country.

Conservative state and local leaders have come under pressure from constituents demanding tighter controls. In red states such as Georgia and Pennsylvania, citizen protests have led to legislative debates and political gridlock.

In Virginia and Kansas, lawmakers only took up crypto mining regulations after strong grassroots organising prompted public hearings. In Arkansas in 2024, the state’s new Republican governor signed legislation imposing stricter permitting requirements in response to growing public concern.

Even industry insiders have acknowledged the backlash. Marathon Digital CEO Fred Thiel noted that one of the company’s Texas mining sites had been approved by voters in a pro-Trump region, yet it still faced demands for tighter noise regulations from local residents.

As a result, partisan messaging on cryptocurrency is increasingly split between national and local levels. Republican candidates on the national stage often appeal to crypto investors and tech donors. In contrast, local Republican officials, including mayors, county supervisors, and state lawmakers, in some cases have aligned with environmental activists or citizen groups calling for stronger oversight or moratoriums.

For example, a previous Republican governor of New York (before Kathy Hochul) had questioned the wisdom of expanding crypto mining in the face of community pushback. In Congress, Democrats have sometimes used this internal GOP divide to their advantage. Some House Democrats have proposed new taxes on crypto mining and regulations requiring pollution controls. At the same time, crypto-friendly bills like the proposed federal “Strategic Bitcoin Reserve Act” have met resistance from suburban and rural voters alike.

The net result is a complicated political landscape for the crypto mining industry. On one hand, it enjoys vocal support from high-ranking officials. On the other hand, it increasingly encounters organised local resistance, often within the same communities that elected those officials.

Regulatory experiments

This clash between local resistance and national support has triggered a wave of policy experiments at the state and federal levels. Some jurisdictions have moved to rein in crypto mining in order to protect residents’ health and meet environmental targets.

In November 2022, New York became the first state to impose a temporary ban on new proof-of-work cryptocurrency mining at fossil-fuel power plants. This law prohibited all new permits and the renewal of existing permits, unless the projects could demonstrate that they operated entirely on renewable energy. Governor Hochul’s administration described the law as a limited but necessary pause aimed at balancing economic development with the objectives of the state’s Climate Leadership and Community Protection Act.

New York’s Department of Environmental Conservation has also taken enforcement actions against noncompliant facilities. In some cases, the agency has denied permits or sued companies for violating clean air or climate mandates. One example is Greenidge Generation’s use of waste coal at a plant in Dresden, which came under legal scrutiny due to its environmental impact.

Other states have followed New York’s lead. In Georgia, conservative local governments have passed restrictions or outright bans after public hearings. State legislators have considered measures to regulate noise and limit grid strain from mining operations. In Pennsylvania and Montana, environmental organisations have taken legal action against facilities that keep old coal plants running for mining purposes.

Even in states that are generally favourable toward cryptocurrency, lawmakers have introduced new regulations. In Texas, in 2023, legislators proposed several bills (some of which passed) to require large mining operations to register with grid authorities and to place limits on their use of “demand-response” programmes.

The Electric Reliability Council of Texas (ERCOT) has since implemented rules requiring any mining operation drawing more than 75 megawatts to sign flexible load agreements. These agreements give the grid operator greater control to shut off power during times of high demand, to help stabilise the system.

At the federal level, regulation is still in early stages. In 2024, a bipartisan group of US senators led by Elizabeth Warren called on the Department of Energy and the Environmental Protection Agency to require mandatory reporting of crypto mining’s energy use. They characterised the industry’s rapid growth without oversight as “alarming.”

So far, neither the Biden administration nor the EPA has issued dedicated rules for crypto mining. However, federal agencies have begun monitoring the sector more closely. Mining now appears in national energy and climate assessments, and the Energy Information Administration is considering including it in future data collection surveys.

Meanwhile, other jurisdictions have moved in the opposite direction. Industry lobbyists have drafted and promoted “right-to-mine” bills in several states that aim to preempt local zoning laws and noise ordinances. According to Earthjustice, some of these proposals would block towns from regulating crypto operations altogether.

In 2025, New Hampshire legislators debated a bill that would have made it illegal for any local agency to restrict crypto mining. Libertarian groups and blockchain advocacy organisations praised the proposal, viewing it as a victory for deregulation.

In Missouri, lawmakers introduced bills to classify Bitcoin mining as critical infrastructure. Other proposals aimed to exempt mining facilities from environmental permits, treating them as if they were simply data centres rather than power-consuming industrial sites.

These deregulatory efforts have met strong resistance from environmental advocates and local governments that support home-rule rights. The debate illustrates a growing confrontation between the cryptocurrency industry’s desire for minimal regulation and the communities most affected by its operations.

In practice, the most effective policy responses have come from state and local governments. Measures such as temporary bans, conditional permits, or tailored noise regulations have given municipalities some control over how and where mining occurs. For example, North Tonawanda’s decision to ban new mining projects and conduct noise studies reflects one way that communities can act within their legal authority.

Other examples include the actions of rural counties in Georgia and new state laws in Arkansas, which were enacted after constituents like Gladys Anderson publicly described how crypto noise had affected their lives. These efforts demonstrate how traditional zoning and environmental rules can be applied to this emerging industry.

At the national level, more ambitious proposals are under discussion. One idea is to impose a substantial tax on electricity used for crypto mining. For instance, President Biden had proposed a 30% tax, although it was ultimately dropped. Another option would be to require carbon offsets for mining operations powered by fossil fuels.

Academic researchers and policy analysts have proposed more balanced solutions. These might include requiring crypto companies to pause operations during power emergencies or mandating that they operate only from designated clean energy sources. The broader policy debate is ongoing and has become a staple topic in energy and climate forums.

The post Rural America fights back against crypto appeared first on International Finance.

A typical existing British home will be able to save around £530 ($717) once it takes the “rooftop solar” route. However, International Finance will focus on a different issue. It’s often referred to as the “energy bills problem.”

A crisis on the way?

Scotland is known for its gale-force winds that sweep across the country in the summer months. And going by the layman’s understanding, this should serve as the “great weather” for the Moray East and West offshore wind farms.

Senior environment journalist Justin Rowlatt said, “The two farms are 13 miles off the northeast coast of Scotland and include some of the biggest wind turbines in the UK, at 257m high. With winds like that, they should be operating at maximum capacity, generating what the developer, Ocean Winds, claims is enough power to meet the electricity needs of well over a million homes. Except they are not.”

An electricity generator, whether it be a wind farm or a gas-powered plant, should be connected to the national grid to seamlessly send its electricity wherever it is needed in the country. This is the problem: in the UK’s case, the electricity grid, which was built to deliver power generated by coal and gas plants near the European country’s major cities and towns, does not have sufficient capacity in the wires that carry electricity around the nation to transmit the new renewable electricity generated in remote seas and rural areas.

“The way the system currently works means a company like Ocean Winds gets what are effectively compensation payments if the system can’t take the power its wind turbines are generating and it has to turn down its output. It means Ocean Winds was paid £72,000 not to generate power from its wind farms in the Moray Firth during a half-hour period on 3rd June because the system was overloaded, one of several occasions output was restricted that day,” Rowlatt noted.

“At the same time, 44 miles (70km) east of London, the Grain gas-fired power station on the Thames Estuary was paid £43,000 to provide more electricity. Payments like that happen virtually every day. Seagreen, Scotland’s largest wind farm, was paid £65 million in 2024 to restrict its output 71% of the time, according to analysis by Octopus Energy,” he added.

Balancing the grid in this way has already cost the Starmer government more than £500 million in 2025 alone, Seagreen’s analysis shows. The total could reach almost £8 billion a year by 2030, warns the National Electricity System Operator (NESO), the body in charge of the electricity network.

It is pushing up all the Britons’ energy bills and calling into question the government’s promise that net zero would end up delivering cheaper electricity. To address this, the Starmer government is considering a radical solution: instead of one big national electricity market, there will be several smaller regional markets, with the administration gambling that this could make the system more efficient and deliver cheaper bills.

Households and businesses will pay different rates depending on how close they are to wind and solar farms. Baroness Dido Harding, who led the government’s test and trace scheme in England during the COVID-19 pandemic, and Lord Udny-Lister, a former Downing Street chief of staff, are among the influential personalities extending support to so-called “zonal pricing.”

The House of Lords Industry and Regulators Committee says the proposals should help cut the costs of electricity, but also warns any reforms would need to be carefully managed, given the probable impact on some generators and heavy industry.

The proposal’s backers argue that it is needed to create a more efficient market that considers the vast numbers of wind turbines being built across the United Kingdom as part of the country’s plans to cut emissions. They further argue that there is not enough capacity on Britain’s electricity grid to move electricity to where it is needed, particularly from wind farms in remote parts of Scotland. But these constraints are not recognised by Britain’s single national wholesale price, which currently means wind farms are frequently paid to switch off.

Zonal pricing would help tackle this by splitting the market into different regions broadly reflecting the distribution network, with the price settled according to local supply and demand. The move will also result in northern Scotland enjoying the benefits of cheap wholesale prices for electricity during windy periods, encouraging households to charge their cars, rather than having to turn the wind farms off.

However, big energy developers warn that less certainty over power prices would put them off investing, just as the government is trying to get vast amounts of new offshore wind built to meet its clean power targets. Some critics are also concerned about the risks of a “postcode lottery” for households, depending on the extent to which zonal pricing feeds through into retail electricity bills.

The Lords Committee also warned that the Starmer government risked missing its target to decarbonise the power system by 2030, given the pace and scale of new infrastructure that needs to be built.

According to reports, Starmer has asked to review the details of what a section of the British media is calling a “postcode pricing” plan. So, there are a couple of questions: is the government ready to risk the most radical shake-up of the British electricity market since privatisation 35 years ago? And what will it really mean for the power bills?

Understanding the math

Supporters of the Starmer government’s plan argue that as long as energy prices are set nationally, it will remain difficult to loosen gas’s grip on electricity costs. Less so with regional pricing, or, in the jargon, “zonal” pricing.

They cited Scotland as an example, highlighting its abundant wind resources contrasted with a relatively small population of just 5.5 million. The argument goes that if prices were set locally, it would not be necessary to pay wind farms to be turned down because there was not enough capacity in the cables to carry all the electricity into England.

All that cheap power could also transform the economics of industry, attracting energy-intensive businesses such as data centres, chemical companies, and other manufacturing industries. In London and the south of England, the price of electricity sometimes gets higher than in the windy north. However, supporters say some of the hundreds of millions of pounds saved by the system can be used to make sure “no one pays more than they do now.”

“And those higher prices could also encourage investors to build new wind farms and solar plants closer to where the demand is. The argument is that it would lower prices in the long run and bring another benefit, because less electricity would need to be carried around the country, so we would need fewer new pylons, saving everyone money and meaning less clutter in the countryside,” Rowlatt remarked.

“Zonal pricing would make the energy system as a whole dramatically more efficient, slashing this waste and cutting bills for every family and business in the country,” asserts Greg Jackson, the CEO of Octopus Energy, one of the biggest energy suppliers in the United Kingdom.

Recent research commissioned by the company estimated the savings could top £55 billion by 2050, which it claims could knock £50 to £100 a year off the average bill. Octopus points out that Sweden made the switch to regional pricing in just 18 months.

Energy firms push back

Tom Glover, UK chair of German energy giant RWE, emphasised the scale of their annual renewable investments in the UK, stating he couldn’t justify asking his board to gamble billions without certainty.

“The main cost of wind and solar plants is in the build. It means the price of the energy they produce is very closely tied to the cost of building, and, because developers borrow most of the money, that means the interest rates they are charged. And we are talking a lot of money. The government is expecting power companies to spend £40 billion a year over the next five years on renewable projects in the UK,” Rowlatt noted.

Glover says even a very small change in interest rates could have dramatic effects on the amount of renewable infrastructure built and the cost of the power produced.

High interest rates, combined with rising prices for steel and other materials, will likely increase the cost of renewables. Plans for a huge wind farm off the coast of Yorkshire were cancelled recently as the developer said it no longer made economic sense.

The National Grid, which owns the pylons, substations, and cables that move electricity around the country, is rolling out a huge investment programme worth some £60 billion over the next five years to upgrade the system and prepare it for the new world of clean power. That new infrastructure will mean more capacity to bring electricity from the windy northern coasts down south, and therefore also mean fewer savings from a regional pricing system in the future.

Critics also warn that introducing regional pricing could take years, and the system will be unfair because some customers will pay more than others.

However, according to Greg Jackson of Octopus, the power companies and their backers just want to protect their profits.

In contrast, the power companies argue that Octopus also has a vested interest in this situation. As the largest energy supplier in the United Kingdom, serving around seven million customers, Octopus possesses an advanced billing system that it licenses to other energy suppliers. Therefore, it stands to benefit from any changes to the pricing of electricity.

The Starmer government’s ability to meet its clean energy goals will depend on how many new wind farms and solar plants are built. The companies that will build them say they need certainty around the future of the electricity market, so a decision must be made soon. Whether Miliband and his administration choose to act decisively remains to be seen.

The post UK’s zonal pricing plan sparks fierce debate appeared first on International Finance.

The Kingdom hopes to reach a 40-gigawatt solar energy capacity by 2030 as part of its ambitious “National Renewable Energy Programme,” which holds enormous promise for the market in the years to come. As several facilities come online, the Kingdom’s solar market is expected to increase at a compound annual growth rate of 51% between 2024 and 2029, according to market research firm Mordor Intelligence.

Embracing the sun

Saudi Arabia is now at the vanguard of cutting-edge solar technologies meant to maximise energy efficiency and sustainability in the region, according to Christopher Decker, partner in energy and natural resources at Oliver Wyman, covering India, the Middle East, and Africa.

“The Dumat Al-Jandal Concentrated Solar Power plant is a noteworthy innovation that uses solar energy to heat liquid for thermal energy storage, allowing energy availability even in the absence of sunlight,” he said.

“Furthermore, the Sakaka Solar Plant uses bifacial solar panels, which greatly increase solar efficiency by utilising the reflectivity of the nearby sand. Waterless robotic cleaning technologies, which ensure high efficiency and lower operating costs, have been used in projects like the Noor Energy 1 facility in NEOM to maintain optimal performance,” Decker continued.

The Oliver Wyman representative also noted that, by anticipating energy demand and weather patterns, smart grids and artificial intelligence technology can optimise solar energy generation while reducing waste.

The NEOM Green Hydrogen project exemplifies a commitment to sustainable energy solutions by utilising solar energy to produce green hydrogen and, consequently, green ammonia. These innovations collectively position Saudi Arabia as a leader in solar energy advancements, highlighting a significant shift towards a more sustainable energy future, as noted by Decker.

According to Adnan Merhaba, partner and energy and utilities practice lead at Arthur D. Little Middle East, the increasing efficiency of solar cells and economies of scale are driving cost reductions in mature solar technologies, with developers suggesting innovations like bifacial solar cells to further boost yields.

Kingdom-based research institutes are investing in the next generation of solar cells that are more efficient, such as tandem perovskite cells, which can make a significant difference in efficiency improvements.

The King Abdullah University of Science and Technology exemplifies Saudi Arabia’s expanding solar sector. The university is leading research and development in cutting-edge photovoltaic technologies.

Stefaan De Wolf, professor of material science and engineering in the Physical Science and Engineering Division, said, “The combination of silicon and perovskite photovoltaics (PV) is one of the major advancements we are making, as it greatly improves solar power efficiency over conventional technologies. Even in Saudi Arabia’s challenging environment, which includes high temperatures and dust, this hybrid technique has the potential to produce solar cells with ultra-high efficiency.”

“To further increase energy yield, we are also investigating the creation of bifacial solar panels, which can produce electricity from both sides. These developments are intended to assist Saudi Arabia in maximising its solar energy potential and advancing sustainable energy solutions globally,” he continued.

The fact that industry participants are actively looking for cutting-edge thermal management methods to lower the operating temperatures of PV systems installed in the Kingdom was clarified by Qiaoqiang Gan, a professor of material science and engineering at the same division.

Due to the high temperatures in the region, this problem is urgent for Middle Eastern nations.

Qiaoqiang Gan said, “We need more dependable materials and equipment at the microscopic level, along with sophisticated operational temperature management techniques, to address this problem.”

Projects like the Sudair Solar PV, which uses bifacial panels and sun-tracking systems to optimise efficiency, are prime examples of Saudi Arabia’s dedication to cutting-edge technologies, according to Shihab El-Borai, a partner with Strategy & Middle East.

“Saudi Arabia is using cutting-edge solar energy innovations to generate electricity and establish a sustainable model for the entire region,” El-Borai noted.

“With multipurpose solar panels that capture dispersed sunlight and offer adjustable shading, businesses like Mirai Solar are also making progress. These developments show how Saudi Arabia can use cutting-edge technology to lower its carbon footprint and establish itself as a global leader in solar energy,” he continued.

Contribution of solar industry

The solar sector is aligned with the “Vision 2030” objectives and is essential to the country’s economic diversification. Saudi Arabia is stimulating the development of new industries, attracting foreign investments, and nurturing an innovative culture by improving its solar power infrastructure.

Decker of Oliver Wyman, said, “The Kingdom is now positioned as a regional leader in renewable energy thanks to this growth, which not only supports local manufacturing and supply chains but also creates job opportunities and improves human capital development.”

“Solar energy contributes to a robust and diversified energy mix in terms of energy security. Saudi Arabia can improve the adaptability and reliability of its electrical infrastructure by integrating smart grids, energy storage, and cutting-edge solar technologies,” he continued.

The Oliver Wyman partner emphasised that solar-powered projects, such as the manufacturing of green hydrogen, ensure the Kingdom adds another energy export source, opening up new revenue streams and promoting environmental sustainability.

The Kingdom’s demand for electricity is steadily rising, largely due to the country’s giga-scale expansions, as well as demographic and economic growth. Widespread solar project deployment can also support related industries, including green hydrogen production, smart grid technologies, and battery storage.

Stefaan De Wolf, speaking on behalf of KAUST, explained that the Kingdom is lowering its reliance on fossil fuels and creating a more robust and sustainable economy by investing in renewable energy, particularly solar power.

According to Qiaoqiang Gan, Saudi Arabia has a clear advantage in terms of the amount of sunlight that can be used as an energy source due to its geographic location, which allows it to produce more solar energy than many wealthy nations.

High temperatures, however, pose a significant challenge since they can cause semiconductor solar cells to overheat. Developing customised solutions that consider the specific local weather and environmental conditions is crucial for the successful installation of PV systems in Saudi Arabia.

Qiaoqiang Gan stated that such solutions must minimise the negative effects on PV performance while optimising the use of abundant solar energy.

He added that further research and development will be needed to create these specialised solutions, which will present both opportunities and challenges in achieving energy security objectives.

In order to reduce its reliance on imports and establish itself as a hub for clean energy technologies, Saudi Arabia is focusing on generating renewable energy components locally. With solar energy driving the electrolysis process, the Kingdom hopes to produce 1.2 million tonnes of green hydrogen annually by 2030.

Challenges facing Kingdom’s solar sector

The challenges primarily relate to localising the value chain and addressing environmental issues such as dust and extreme heat. Infrastructure constraints and regulatory difficulties are among the many obstacles.

To overcome these, the Kingdom is investing in updating its grid infrastructure with energy storage and smart grid technology, which will improve the management of intermittent solar output. Efforts are also underway to streamline regulatory procedures and introduce incentive schemes, such as public-private partnerships and favourable tariffs, to encourage private sector investment.

Concerns have also been raised about disruptions to international trade, the localisation and human resources required to ensure the growth of a strong and competitive solar value chain industry in the Kingdom, and the availability of enough engineers and technicians to meet the industry’s expanding demand. However, the nation is well-positioned to successfully address these challenges thanks to its robust policies and strategies, which include national industrial and localisation plans, as well as other efforts.

Under “Vision 2030,” Saudi Arabia aims to generate about 58.7 GW of renewable energy by 2030, with 40 GW coming from solar energy.

To achieve this, policies must be made to encourage private sector participation. For example, power purchase agreements should be established to guarantee investors long-term profits. Tariffs and subsidies should be put in place to make renewable energy more competitive, and licensing procedures should be streamlined to make solar projects easier to manage. The Saudi government is also aggressively supporting foreign direct investment and public-private partnerships to propel the expansion of solar power projects.

Christopher Decker, partner in energy and natural resources at Oliver Wyman, said, “One important initiative that aims to secure $30–50 billion in investments for renewable energy projects is the National Renewable Energy Programme, introduced under Vision 2030.”

Saudi Arabia, however, remains committed to maximising its oil and gas production through efficiency gains and technological developments to ensure the industry remains profitable, while research and development activities continue in the renewable sector.

According to Adnan Merhaba, partner and energy and utilities practice lead at Arthur D. Little Middle East, the Kingdom has undergone a significant transformation in its energy and economic landscape in recent years. It has accelerated solar deployment and ushered in the age of renewable energy.

In addition to accelerating the development of national champions throughout the solar value chain, the extremely ambitious goal of achieving 50% renewable adoption by 2030—currently under consideration for an upward revision—has resulted in the construction of massive solar projects at historically low prices.

De Wolf, a KAUST representative, reaffirmed that Vision 2030 has facilitated an environment conducive to investment and growth, with the Kingdom’s energy mix being shaped by ambitious renewable energy goals.

Similarly, Qiaoqiang Gan emphasised that Vision 2030 has created favourable conditions for the growth of solar energy through laws that encourage public-private partnerships and significant investments in renewable energy infrastructure.

El-Borai clarified that the National Renewable Energy Programme is essential to this, from PwC’s perspective.

“With the help of large financial commitments, including the proposed $266 billion investment in cleaner energy sources, including solar, Saudi Arabia aims to achieve Net Zero status by 2060,” he remarked.

To reach its goal of 100 GW to 130 GW of clean energy by 2030, the Kingdom is aggressively developing projects with an annual capacity of 20 GW. With initiatives like the Public Investment Fund’s partnership with Chinese solar manufacturers to develop 30 GW of solar PV production capacity, this strategic framework also emphasises localising the manufacturing of renewable energy. In addition to producing renewable energy, the NREP aims to secure the Kingdom’s energy future and reduce its reliance on fossil fuels, according to the PwC partner.

What lies ahead

The report titled “Saudi Arabia Onshore Floating Solar Market, By Region, Competition, Forecast & Opportunities, 2019-2029F,” found the Kingdom’s Onshore Floating Solar Market valued at $17.9 million in 2023 and projected to grow robustly, with a CAGR of 27.5% through 2029.

“The Saudi Arabia Onshore Floating Solar Market is experiencing a notable upswing as the Kingdom strategically endeavours to diversify its energy portfolio. In a concerted effort to reduce dependence on conventional fossil fuels and mitigate environmental impact, the government has increasingly turned its attention to renewable energy sources. The unique geography of Saudi Arabia, characterised by expansive desert landscapes and abundant sunlight, makes onshore floating solar installations particularly attractive,” the report stated.

Saudi Arabia’s approach to deploying solar energy is not only capitalising on the vast available land but also addressing the country’s water scarcity challenges. With an ambitious commitment to sustainable energy goals, the onshore floating solar market is poised to witness heightened investment, technological advancements, and growing collaboration between public and private sectors, positioning the Kingdom at the forefront of the global shift toward clean and renewable energy solutions.

As the technology matures and gains wider acceptance, small pilot projects will scale to larger and more ambitious initiatives. Utility-scale projects will offer economies of scale, enabling more efficient use of resources and driving down the overall cost of solar energy production.

“This trend reflects the industry’s confidence in the scalability and long-term viability of onshore floating solar as a key contributor to the Kingdom’s renewable energy portfolio,” the report noted.

Manufacturers and developers are investing in research and development to enhance the efficiency, durability, and adaptability of floating solar structures. This includes the development of modular and customisable floating platforms tailored to specific water bodies, optimising the deployment of solar panels.

“Additionally, improvements in materials and design contribute to the resilience of floating platforms in challenging environmental conditions. The emphasis on technological advancements reflects the industry’s commitment to overcoming technical challenges and ensuring the long-term success of onshore floating solar projects in Saudi Arabia,” the study observed.

Collaboration and partnerships among government entities, private companies, and international players will play a key role in determining the future direction of the Saudi Arabia Onshore Floating Solar Market. Recognising the complexity and scale of renewable energy projects, stakeholders are joining forces to leverage collective expertise, resources, and funding.

“Public-private partnerships facilitate the sharing of risks and responsibilities, creating a conducive environment for investment and project development. International collaborations bring in global best practices and technological know-how, further accelerating the growth of the onshore floating solar market. This trend reflects a holistic approach to sustainable development, aligning with Saudi Arabia’s commitment to fostering a collaborative ecosystem for the successful implementation of renewable energy initiatives,” the report revealed.

Saudi Arabia’s solar energy sector is poised for significant growth, driven by innovative technologies and ambitious goals. The Kingdom is making substantial progress toward diversifying its energy mix with a focus on renewable sources, particularly solar power, as part of its Vision 2030. Cutting-edge projects, like the Dumat Al-Jandal and Sakaka solar plants, along with advanced research at institutions such as KAUST, reflect the nation’s commitment to sustainable energy solutions. With strategic investments and a favourable regulatory environment, Saudi Arabia is positioning itself as a regional leader in clean energy. As the solar industry continues to evolve, it will play a crucial role in reducing reliance on fossil fuels, driving economic diversification, and contributing to the Kingdom’s long-term energy security and environmental sustainability goals.

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Subject to market conditions, the sukuk sale will be divided into five-year and 10-year tranches, with one tranche possibly being in green format. The certificates will be issued under the Trust Certificate Issuance Program of the Saudi Electricity Sukuk Programme Company, which is anticipated to receive an A+ rating from Fitch and an Aa3 rating from Moody’s.

While Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Mizuho, MUFG, SMBC, and IMI-Intesa Sanpaolo are active book-runners, HSBC and Standard Chartered Bank serve as acting joint global coordinators. Furthermore, the following companies have been designated as passive book-runners: Alistithmar Capital, BofA Securities, ICBC International Securities Limited, BNP Paribas, Emirates NBD Capital, NATIXIS, Dubai Islamic Bank PJSC, Bank of China, and SNB Capital.

Additionally, SMBC and MUFG are working together as green structuring agents. SEC is the leading electricity producer in Saudi Arabia and holds a monopoly on transmission and distribution across the Kingdom.

The Public Investment Fund (PIF), a sovereign wealth fund, controls 75% of it. Its net debt to EBITDA ratio is 3.1x, and 45% of its current debt has maturities beyond 2028.

As it increased its energy investments, it spent SAR 39.7 billion in capital expenditures during the first nine months of 2024. By 2030, SEC wants to increase the proportion of renewable energy to 50% of the energy mix. The SEC signed a USD 3.6 billion worldwide syndicated credit facility with a five-year term and two one-year extension options in December.

The issuance remains subject to regulatory approvals and will be conducted in compliance with applicable laws and regulations.

“This announcement does not constitute an offer, invitation, or solicitation to purchase, acquire, or subscribe to any securities and is subject to the sukuk’s terms and conditions,” SEC stated.

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