Electricity News in January 2024
DOE Announces $34 Million to Improve America?s Power Grid
DOE GOPHURRS Grid Undergrounding accelerates ARPA-E innovations to modernize the power grid, boosting reliability, resilience, and security via underground power lines, AI-driven surveying, robotic tunneling, and safer cable splicing for clean energy transmission and distribution.
Key Points
A DOE-ARPA-E program funding undergrounding tech to modernize the grid and improve reliability and security.
✅ $34M for 12 ARPA-E projects across 11 states
✅ Underground power lines to boost reliability and resilience
✅ Robotics, AI, and safer splicing to cut costs and risks
The U.S. Department of Energy (DOE) has earmarked $34 million for 12 innovative projects across 11 states to bolster and modernize the nation’s power grid, complementing efforts like a Washington state infrastructure grant announced to strengthen resilience.
Under the Grid Overhaul with Proactive, High-speed Undergrounding for Reliability, Resilience, and Security (GOPHURRS) program, this funding is focused on developing efficient and secure undergrounding technologies. The initiative is aligned with President Biden’s vision to strengthen America's energy infrastructure and advance smarter electricity infrastructure priorities, thereby creating jobs, enhancing energy and national security, and advancing towards a 100% clean electricity grid by 2035.
U.S. Secretary of Energy Jennifer M. Granholm emphasized the criticality of modernizing the power grid to facilitate a future powered by clean energy, including efforts to integrate more solar into the grid nationwide, thus reducing energy costs and bolstering national security. This development, she noted, is pivotal in bringing the grid into the 21st Century.
The U.S. electric power distribution system, comprising over 5.5 million line miles and over 180 million power poles, is increasingly vulnerable to weather-related damage, contributing to a majority of annual power outages. Extreme weather events, intensified by climate change impacts across the nation, exacerbate the frequency and severity of these outages. Undergrounding power lines is an effective measure to enhance system reliability for transmission and distribution grids.
Managed by DOE’s Advanced Research Projects Agency-Energy (ARPA-E), the newly announced projects include contributions from small and large businesses, national labs, and universities. These initiatives are geared towards developing technologies that will lower costs, expedite undergrounding operations, and enhance safety. Notable projects involve innovations like Arizona State University’s water-jet construction tool for deploying electrical cables underground, GE Vernova Advanced Research’s robotic worm tunnelling construction tool, and Melni Technologies’ redesigned medium-voltage power cable splice kits.
Other significant projects include Oceanit’s subsurface sensor system for avoiding utility damage during undergrounding and Pacific Northwest National Laboratory’s AI system for processing geophysical survey data. Prysmian Cables and Systems USA’s project focuses on a hands-free power cable splicing machine to improve network reliability and workforce safety, complementing state efforts like California's $500 million grid investment to upgrade infrastructure.
Complete descriptions of these projects can be found on the ARPA-E website, while a recent grid report card highlights challenges these efforts aim to address.
ARPA-E’s mission is to advance clean energy technologies with high potential and impact, playing a strategic role in America’s energy security, including military preparedness for grid cyberattacks as a priority. This commitment ensures the U.S. remains a global leader in developing and deploying advanced clean energy technologies.
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Fixing California's electric grid is like repairing a car while driving
CAISO Clean Energy Transition outlines California's path to 100% carbon-free power by 2045, scaling renewables, battery storage, and offshore wind while safeguarding grid reliability, managing natural gas, and leveraging Western markets like EDAM.
Key Points
CAISO Clean Energy Transition is the plan to reach 100% carbon-free power by 2045 while maintaining grid reliability.
✅ Target: add 7 GW/year to reach 120 GW capacity by 2045
✅ Battery storage up 30x; smooths intermittent solar and wind
✅ EDAM and WEIM enhance imports, savings, and reliability
Mark Rothleder, Chief Operating Officer and Senior Vice President at the California Independent System Operator (CAISO), which manages roughly 80% of California’s electric grid, has expressed cautious optimism about meeting the state's ambitious clean energy targets while keeping the lights on across the grid. However, he acknowledges that this journey will not be without its challenges.
California aims to transition its power system to 100% carbon-free sources by 2045, ensuring a reliable electricity supply at reasonable costs for consumers. Rothleder, aware of the task's enormity, likens it to a complex car repair performed while the vehicle is in motion.
Recent achievements have demonstrated California's ability to temporarily sustain its grid using clean energy sources. According to Rothleder, the real challenge lies in maintaining this performance round the clock, every day of the year.
Adding thousands of megawatts of renewable energy into California’s existing 50-gigawatt system, which needs to expand to 120 gigawatts to meet the 2045 goal, poses a significant challenge, though recent grid upgrade funding offers some support for needed infrastructure. CAISO estimates that an addition of 7 gigawatts of clean power per year for the next two decades is necessary, all while ensuring uninterrupted power delivery.
While natural gas currently constitutes California's largest single source of power, Rothleder notes the need to gradually decrease reliance on it, even as it remains an operational necessity in the transition phase.
In 2023, CAISO added 5,660 megawatts of new power to the grid, with plans to integrate over 1,100 additional megawatts in the next six to eight months of 2024. Battery storage, crucial for mitigating the intermittent nature of wind and solar power, has seen substantial growth as California turns to batteries for grid support, increasing 30-fold in three years.
Rothleder emphasizes that electricity reliability is paramount, as consumers always expect power availability. He also highlights the potential of offshore wind projects to significantly contribute to California's power mix by 2045.
The offshore wind industry faces financial and supply chain challenges despite these plans. CAISO’s 20-year outlook indicates a significant increase in utility-scale solar, requiring extensive land use and wider deployment of advanced inverters for grid stability.
Addressing affordability is vital, especially as California residents face increasing utility bills. Rothleder suggests a broader energy cost perspective, encompassing utility and transportation expenses.
Despite smooth grid operations in 2023, challenges in previous years, including extreme weather-induced power outages driven by climate change, underscore the need for a robust, adaptable grid. California imports about a quarter of its power from neighbouring states and participates in the Western Energy Imbalance Market, which has yielded significant savings.
CAISO is also working on establishing an extended day-ahead electricity market (EDAM) to enhance the current energy market's success, building on insights from a Western grid integration report that supports expanded coordination.
Rothleder believes that a thoughtfully designed, diverse power system can offer greater reliability and resilience in the long run. A future grid reliant on multiple, smaller power sources such as microgrids could better absorb potential losses, ensuring a more reliable electricity supply for California.
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Renewables Poised to Eclipse Coal in Global Power Generation by 2025
IEA Electricity 2024 Renewables Outlook projects renewable energy surpassing coal in global electricity generation by early 2025, with nuclear power rebounding, clean energy expansion, electrification, and grid upgrades cutting emissions and decarbonizing power systems.
Key Points
IEA forecast: renewables beat coal by 2025, nuclear rebounds, speeding cleaner power and deeper emissions cuts by 2026.
✅ Renewables surpass coal by 2025; nuclear output hits records by 2025-2026.
✅ Power demand grows 3.4% avg to 2026 via EVs, data centers, electrification.
✅ Gas displaces coal; grids need investment; drought and supply chains pose risks.
The International Energy Agency's latest Electricity 2024 report predicts that renewable energy sources will surpass coal in global electricity generation by early 2025, reaching over one-third of the world's total power output. Additionally, nuclear power is expected to achieve record production levels by 2025, recovering from recent downturns and reflecting low-carbon electricity lessons from the COVID-19 period.
By 2026, the report estimates that renewables and nuclear will jointly contribute to nearly half of the global power generation, up from less than 40 percent in 2023. This shift is crucial as the United Nations emphasizes the transition to clean energy, with Asia to use half of electricity by 2025 highlighting the scale of the challenge, as a key factor in limiting global warming to 1.5 degrees Celsius above preindustrial levels.
IEA Executive Director Fatih Birol highlighted the promising trends of renewables, led by affordable solar power and the resurgence of nuclear power, as key factors covering almost all demand growth over the next three years.
At the COP28 climate summit in Dubai, participants agreed on a plan for phasing out fossil fuels and committed to tripling renewable capacity by 2030. This shift in the electricity mix is expected to reduce emissions from the power sector, which is currently the largest source of carbon dioxide emissions worldwide.
Despite a modest 2.2 percent growth in global electricity demand in 2023, an acceleration to an average annual increase of 3.4 percent is projected from 2024 to 2026. This surge in electricity demand is driven by factors like home and business electrification, the proliferation of electric vehicles, and industrial expansion.
Significant growth in electricity usage from data centers worldwide is anticipated, potentially doubling between 2022 and 2026, as global power demand has surged above pre-pandemic levels. Regulatory updates and technological advancements are essential to manage this energy consumption increase effectively.
Emissions from the electricity sector are expected to decrease following a 1 percent rise in 2023, with a more than 2 percent reduction projected in 2024 and continued declines in subsequent years. This reduced carbon intensity in electricity generation will enhance the emissions savings from electrifying cars and appliances.
Natural gas-fired power is predicted to see a modest increase over the next three years, primarily replacing coal power. While Europe has witnessed sharp declines in gas power, EU wind and solar beat gas last year, growth in the United States, Asia, Africa, and the Middle East is expected due to available liquefied natural gas supplies.
By 2026, fossil fuels are forecasted to account for 54 percent of global generation, dropping below 60 percent for the first time in over five decades. The U.S. is anticipated to boost renewable generation by approximately 10 percent annually between 2024 and 2026, surpassing coal generation in 2024.
The report warns of potential risks to clean energy trends, including droughts impacting hydropower, extreme weather affecting electricity reliability, and supply chain interruptions threatening new renewable and nuclear projects, and a generation mix sensitive to policies and gas prices that could shift trajectories.
Keisuke Sadamori, IEA’s director of energy markets and security, underscores the need for continued investment in grid infrastructure to integrate incoming renewable energy and sustain the power sector's trajectory towards emissions reduction goals.
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U.S. Electric Vehicle Sales Soar Into 2024
U.S. EV Sales Growth reflects rising consumer demand, expanding market share, new tax credits, and robust charging infrastructure, as automakers boost output and quarterly sales under the Inflation Reduction Act drive adoption across states.
Key Points
It is the rise in U.S. EV sales and market share, driven by incentives, charging growth, and automaker investment.
✅ Quarterly EV sales and share have risen since Q3 2021.
✅ Share topped 10% in Q3 2023, with states far above.
✅ IRA credits and chargers lower costs and boost adoption.
Contrary to any skepticism, the demand for electric vehicles (EVs) in the United States is not dwindling. Data from the Alliance for Automotive Innovation highlights a significant and ongoing increase in EV sales from 2021 through the third quarter of 2023. An upward trend in quarterly sales (depicted as bars on the left axis) and EV sales shares (illustrated by the red line on the right axis) is evident. Sales surged from about 125,000 in Q1 2021 to 185,000 in Q4 2021, and from around 300,000 in Q1 2023 to 375,000 by Q3 2023. Notably, by Q3 2023, annual U.S. EV sales exceeded 1 million for the first time, a milestone often cited as the tipping point for mass adoption in the U.S., marking a 58% increase over the same period in 2022.
EV sales have shown consistent quarterly growth since Q3 2021, and the proportion of EVs in total light-duty vehicle sales is also on the rise. EVs’ share of new sales increased from roughly 3% in Q1 2021 to about 7% in 2022, and further to over 10% in Q3 2023, though they are still behind gas cars in overall market share, for now. For context, according to the U.S. Environmental Protection Agency’s Automotive Trends Report, EVs have reached a 10% market share more quickly than conventional hybrids without a plug, which took about 25 years.
State-level data also indicates that several states exceed national averages in EV sales. California, for example, saw EVs comprising nearly 27% of sales through September 2023, even as a brief Q1 2024 market share dip has been noted nationally. Additionally, 12 states plus the District of Columbia had EV sales shares between 10% and 20% through Q3 2023.
EV sales data by automaker reveal that most companies sold more EVs in Q2 or Q3 2023 than in any previous quarter, mirroring global growth that went from zero to 2 million in five years. Except for Ford, each automaker sold more EVs in the first three quarters of 2023 than in all of 2022. EV sales in Q3 2023 notably increased compared to Q3 2022 for companies like BMW, Tesla, and Volkswagen.
Despite some production scalebacks by Ford and General Motors, these companies, along with others, remain dedicated to an electric future and expect to sell more EVs than ever. The growing consumer interest in EVs is also reflected in recent surveys by McKinsey, J.D. Power, and Consumer Reports, and echoed in Europe where the share of electric cars grew during lockdown months, showing an increasing intent to purchase EVs and a declining interest in gasoline vehicles.
Furthermore, the Inflation Reduction Act of 2022 introduces new tax credits, potentially making EVs more affordable than gasoline counterparts. Investments in charging infrastructure are also expected to increase, especially as EV adoption could drive a 38% rise in U.S. electricity demand, with over $21 billion allocated to boost public chargers from around 160,000 in 2023 to nearly 1 million by 2030.
The shift to EVs is crucial for reducing climate pollution, enhancing public health, and generating economic benefits and jobs, and by 2021 plug-in vehicles had already traveled 19 billion miles on electricity, underscoring real-world progress toward these goals. The current data and trends indicate a robust and positive future for EVs in the U.S., reinforcing the need for strong standards to further encourage investment and consumer confidence in electric vehicles.
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U.S. Residents Averaged Fewer Power Outages in 2022
2022 U.S. Power Outage Statistics show lower SAIDI as fewer major events hit, with SAIFI trends, electric reliability, outage duration and frequency shaped by hurricanes, winter storms, vegetation, and utility practices across states.
Key Points
They report SAIDI and SAIFI for 2022, showing outage duration, frequency, and impacts of major weather events.
✅ 2022 SAIDI averaged 5.6 hours; SAIFI averaged 1.4 interruptions.
✅ Fewer major events lowered outage duration versus 2021.
✅ Hurricanes and winter storms drove long outages in several states.
In 2022, U.S. electricity consumers on average experienced about 5.5 hours of power disruptions, a decrease from nearly two hours compared to 2021. This information comes from the latest Annual Electric Power Industry Report. The reduction in yearly power interruptions primarily resulted from fewer significant events in 2022 compared to the previous year, and utility disaster planning continues to support grid resilience as severe weather persists.
Since 2013, excluding major events, the annual average duration of power interruptions has consistently hovered around two hours. Factors contributing to major power disruptions include weather-related incidents, vegetation interference near power lines, and specific utility practices, while pandemic-related grid operations influenced workforce planning more than outage frequency. To assess the reliability of U.S. electric utilities, two key indexes are utilized:
- The System Average Interruption Duration Index (SAIDI) calculates the total length (in hours) an average customer endures non-brief power interruptions over a year.
- The System Average Interruption Frequency Index (SAIFI) tracks the number of times interruptions occur.
The influence of major events on electrical reliability is gauged by comparing affected states' SAIDI and SAIFI values against the U.S. average, which was 5.6 hours of outages and 1.4 outages per customer in 2022. The year witnessed 18 weather-related disasters in the U.S., each resulting in over $1 billion in damages, and COVID-19 grid assessments indicated the electricity system was largely safe from pandemic impacts. Noteworthy major events include:
- Hurricane Ian in September 2022, leaving over 2.6 million Floridian customers without electricity, with restoration in some areas taking weeks rather than days.
- Hurricane Nicole in November 2022, causing over 300,000 Florida customers to lose power.
- Winter Storm Elliott in December 2022, affecting over 1.5 million customers in multiple states including Texas where utilities struggled after Hurricane Harvey to restore service, and Florida, and bringing up to four feet of snow in parts of New York.
In 2022, states like Florida, West Virginia, Maine, Vermont, and New Hampshire experienced the most prolonged power interruptions, with New Hampshire averaging 10.3 hours and Florida 19.1 hours, and FPL's Irma storm response illustrates how restoration can take days or weeks in severe cases. Conversely, the District of Columbia, Delaware, Rhode Island, Nebraska, and Iowa had the shortest total interruptions, with the District of Columbia averaging just 34 minutes and Iowa 85 minutes.
The frequency of outages, unlike their duration, is more often linked to non-major events. Across the nation, Alaska recorded the highest number of power disruptions per customer (averaging 3.5), followed by several heavily forested states like Tennessee and Maine. Power outages due to falling tree branches are common, particularly during winter storms that burden tree limbs and power lines, as seen in a North Seattle outage affecting 13,000 customers. The District of Columbia stood out with the shortest and fewest outages per customer.
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Octopus Energy and Ukraine's DTEK enter Energy Talks
Octopus Energy and DTEK Partnership explores licensing the Kraken platform to rebuild Ukraine's power grid, enabling real-time analytics, smart-home integration, renewable energy orchestration, and distributed resilience amid ongoing attacks on critical energy infrastructure.
Key Points
Collaboration to deploy Kraken and renewables to modernize Ukraine's grid with analytics, smart control, and resilience.
✅ Kraken licensing for grid operations and customer analytics
✅ Shift to distributed solar, wind, and smart-home devices
✅ Real-time monitoring to mitigate outages and cyber risks
Octopus Energy, a prominent UK energy firm, has begun preliminary conversations with Ukraine's DTEK regarding potential collaboration to refurbish Ukraine's heavily damaged electric infrastructure as ongoing strikes threaten the power grid across the country.
Persistent assaults by Russia on Ukraine's power network, including a five-hour attack on Kyiv's grid, have led to significant electricity shortages in numerous regions.
Octopus Energy, the largest electricity and second-largest gas supplier in the UK, collaborates with energy firms in 17 countries using its Kraken software platform, and Ukraine joined Europe's power grid with unprecedented speed to bolster resilience. This platform is currently being trialled by the Abu Dhabi National Energy Company (Taqa) for power and water customers in the UAE.
A spokesperson from Octopus revealed to The National that the company is "in the early stages of discussions with DTEK to explore potential collaborative opportunities.”
One of the possibilities being considered is licensing Octopus's Kraken technology platform to DTEK, a platform that presently serves 54 million customer accounts globally.
Russian drone and missile attacks, which initially targeted Ukrainian ports and export channels last summer, shifted focus to energy infrastructure by October, ahead of the winter season as authorities worked to protect electricity supply before winter across the country.
These initial talks between Octopus CEO Greg Jackson and DTEK CEO Maxim Timchenko took place at the World Economic Forum in Davos, set against the backdrop of these ongoing challenges.
DTEK, Ukraine's leading private energy provider, might integrate Octopus's advanced Kraken software to manage and optimize data systems ranging from large power plants to smart-home devices, with a growing focus on protecting the grid against emerging threats.
Kraken is described by Octopus as a comprehensive technology platform that supports the entire energy supply chain, from generation to billing. It enables detailed analytics, real-time monitoring, and control of energy devices like heat pumps and electric vehicles, underscoring the need to counter cyber weapons that can disrupt power grids as systems become more connected.
Octopus Energy, with its focus on renewable sources, can also assist Ukraine in transitioning its power infrastructure from centralized coal-fired power stations, which are vulnerable targets, to a more distributed network of smaller solar and wind projects.
DTEK, serving approximately 3.5 million customers in the Kyiv, Donetsk, and Dnipro regions, is already engaged in renewable initiatives. The company constructed a wind farm in southern Ukraine within nine months last year and has plans for additional projects in Italy and Croatia.
Emphasizing the importance of rebuilding Ukraine's economy, Timchenko recently expressed at Davos the need for Ukrainian and international companies to work together to create a sustainable future for Ukraine, noting that incidents such as Russian hackers accessed U.S. control rooms highlight the urgency.
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Clean Energy Accounts for 50% of Germany's Electricity
Germany Renewable Energy Milestone marks renewables supplying 53% of power, with record onshore wind and peak solar; hydrogen-ready gas plants and grid upgrades are planned to balance variability amid Germany's coal phase-out.
Key Points
It marks renewables supplying 53% of Germany's power, driven by wind and solar records in the energy transition.
✅ 53% of generation and 52% of consumption in 2024
✅ Onshore wind hit record; June solar peaked
✅ 24 GW hydrogen-ready gas plants planned for grid balancing
For the first time, renewable energy sources have surpassed half of Germany's electricity production this year, as indicated by data from sustainable energy organizations.
Preliminary figures from the Center for Solar Energy and Hydrogen Research alongside the German Association of Energy and Water Industries (BDEW) show that the contribution of green energy has risen to 53%, echoing how renewable power surpassed fossil fuels in Europe recently, a significant increase from 44% in the previous year.
The year saw a record output from onshore wind energy, as investments in European wind power climbed, and an unprecedented peak in solar energy production in June, as reported by the organizations. Additionally, renewable sources constituted 52% of Germany's total power consumption, marking an increase of approximately five percentage points.
Germany, Europe's leading economy, heavily impacted by Russia's reduced natural gas supplies last year, as Europeans push back from Russian oil and gas across the region, has been leaning on renewable sources to bridge the energy gap. This shift comes even as the country temporarily ramped up coal usage last winter. Having phased out its nuclear power plants earlier this year, Germany aims for an 80% clean energy production by 2030.
In absolute numbers, Germany produced a record level of renewable energy this year, supported by a solar power boost during the energy crisis, approximately 267 billion kilowatt-hours, according to the associations. A decrease of 11% in overall energy production facilitated a reduced reliance on fossil fuels.
However, Europe's transition to more sustainable energy sources, particularly offshore wind, has encountered hurdles such as increased financing and component costs, even as neighbors like Ireland pursue an ambitious green electricity goal within four years. Germany continues to face challenges in expanding its renewable energy capacity, as noted by BDEW’s executive board chairwoman, Kerstin Andreae.
Andreae emphasizes that while energy companies are eager to invest in the transition, they often encounter delays due to protracted approval processes, bureaucratic complexities, and scarcity of land despite legislative improvements.
German government officials are close to finalizing a strategy this week for constructing multiple new gas-fired power plants, despite findings that solar plus battery storage can be cheaper than conventional power in Germany, a plan estimated to cost around 40 billion euros ($44 billion). This initiative is a critical part of Germany's strategy to mitigate potential power shortages that might result from the discontinuation of coal power, particularly given the variability in renewable energy sources.
A crucial meeting involving representatives from the Economy and Finance Ministries, along with the Chancellor's Office, is expected to occur late Tuesday. The purpose is to finalize this agreement, according to sources who requested anonymity due to restrictions on public disclosure.
The Economy Ministry, spearheading this project, confirmed that intensive discussions are ongoing, although no further details were disclosed.
Germany's plan involves utilizing approximately 24 gigawatts (GW) of energy from hydrogen, including emerging offshore green hydrogen options, and gas-fired power plants to compensate for the fluctuations in wind and solar power generation. However, the proposal has faced challenges, particularly regarding the allocation of public funds for these projects, with disagreements arising with the European Union's executive in Brussels.
Environmental groups have also expressed criticism of the strategy. They advocate for an expedited end to fossil fuel usage and remain skeptical about the energy sector's arguments favoring natural gas as a transitional fuel. Despite natural gas emitting less carbon dioxide than coal, environmentalists question its role in Germany's energy future.
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Is a Resurgence of Nuclear Energy Possible in Germany?
Germany Nuclear Phase-Out reflects a decisive energy policy shift, retiring reactors as firms shun new builds amid high costs, radioactive waste challenges, climate goals, insurance gaps, and debate over small modular reactors and subsidies.
Key Points
Germany's policy to end nuclear plants and block new builds, emphasizing safety, waste, climate goals, and viability.
✅ Driven by safety risks, waste storage limits, and insurance gaps
✅ High capital costs and subsidies make new reactors uneconomic
✅ Political debate persists; SMRs raise cost and proliferation concerns
A year has passed since Germany deactivated its last three nuclear power plants, marking a significant shift in its energy policy.
Nuclear fission once heralded as the future of energy in Germany during the 1960s, was initially embraced with minimal concern for the potential risks of nuclear accidents. As Heinz Smital from Greenpeace recalls, the early optimism was partly driven by national interest in nuclear weapon technology rather than energy companies' initiatives.
Jochen Flasbarth, State Secretary in the Ministry of Development, reflects on that era, noting Germany's strong, almost naive, belief in technology. Germany, particularly the Ruhr region, grappled with smog-filled skies at that time due to heavy industrialization and coal-fired power plants. Nuclear energy presented a "clean" alternative at the time.
This sentiment was also prevalent in East Germany, where the first commercial nuclear power plant came online in 1961. In total, 37 nuclear reactors were activated across Germany, reflecting a widespread confidence in nuclear technology.
However, the 1970s saw a shift in attitudes. Environmental activists protested the construction of new power plants, symbolizing a generational rift. The 1979 Three Mile Island incident in the US, followed by the catastrophic Chornobyl disaster in 1986, further eroded public trust in nuclear energy.
The Chornobyl accident, in particular, significantly dampened Germany's nuclear ambitions, according to Smital. Post-Chernobyl, plans for additional nuclear power plants in Germany, once numbering 60, drastically declined.
The emergence of the Green Party in 1980, rooted in anti-nuclear sentiment, and its subsequent rise to political prominence further influenced Germany's energy policy. The Greens, joining forces with the Social Democrats in 1998, initiated a move away from nuclear energy, facing opposition from the Christian Democrats (CDU) and Christian Social Union (CSU).
However, the Fukushima disaster in 2011 prompted a policy reversal from CDU and CSU under Chancellor Angela Merkel, leading to Germany's eventual nuclear phase-out in March 2023, after briefly extending nuclear power amid the energy crisis.
Recently, the CDU and CSU have revised their stance once more, signaling a potential U-turn on the nuclear phaseout, advocating for new nuclear reactors and the reactivation of the last shut-down plants, citing climate protection and rising fossil fuel costs. CDU leader Friedrich Merz has lamented the shutdown as a "black day for Germany." However, these suggestions have garnered little enthusiasm from German energy companies.
Steffi Lemke, the Federal Environment Minister, isn't surprised by the companies' reluctance, noting their longstanding opposition to nuclear power, which she argues would do little to solve the gas issue in Germany, due to its high-risk nature and the long-term challenge of radioactive waste management.
Globally, 412 reactors are operational across 32 countries, even as Europe is losing nuclear power during an energy crunch, with the total number remaining relatively stable over the years. While countries like China, France, and the UK plan new constructions, there's a growing interest in small, modern reactors, which Smital of Greenpeace views with skepticism, noting their potential military applications.
In Germany, the unresolved issue of nuclear waste storage looms large. With temporary storage facilities near power plants proving inadequate for long-term needs, the search for permanent sites faces resistance from local communities and poses financial and logistical challenges.
Environment Minister Lemke underscores the economic impracticality of nuclear energy in Germany, citing prohibitive costs and the necessity of substantial subsidies and insurance exemptions.
As things stand, the resurgence of nuclear power in Germany appears unlikely, with economic factors playing a decisive role in its future.
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UK Anticipates a 16% Decrease in Energy Bills in April
UK Energy Price Cap Cut 2024 signals relief as wholesale gas prices fall; Ofgem price cap drops per Cornwall Insight, aided by LNG supply, mild winter, despite Red Sea tensions and Ukraine conflict impacts.
Key Points
A forecast cut to Great Britain's Ofgem price cap as wholesale gas falls, easing typical annual household bills in 2024.
✅ Cap falls from £1,928 to £1,620 in April 2024
✅ Forecast £1,497 in July, then about £1,541 from October
✅ Drivers: lower wholesale gas, LNG supply, mild winter
Households in Great Britain are set to experience a significant reduction in energy costs this spring, with bills projected to drop by over £300 annually. This decrease is primarily due to a decline in wholesale gas prices, offering some respite to those grappling with the cost of living crisis.
Cornwall Insight, a well-regarded industry analyst, predicts a 16% reduction in average bills from the previous quarter, potentially reaching the lowest levels since the onset of the Ukraine conflict.
The industry’s price cap, indicative of the average annual bill for a typical household, is expected to decrease from the current £1,928, set earlier this month, to £1,620 in April – a reduction of £308 and £40 less than previously forecasted in December, as ministers consider ending the gas-electricity price link to improve market resilience.
Concerns about escalating tensions in the Red Sea, where Houthi rebels have disrupted global shipping, initially led analysts to fear an increase in wholesale oil prices and subsequent impact on household energy costs.
Contrary to these concerns, oil prices have remained relatively stable, and European gas reserves have been higher than anticipated during a mild winter, with European gas prices returning to pre-Ukraine war levels since November.
Cornwall Insight anticipates that energy prices will continue to be comparatively low through 2024. They predict a further decline to £1,497 for a typical annual bill from July, followed by a slight increase to £1,541 starting in October.
This forecast is a welcome development for Britons who have been dealing with increased expenses across various sectors, from food to utilities, amidst persistently high inflation rates, with energy-driven EU inflation hitting lower-income households hardest across member states.
Energy bills saw a steep rise in 2021, which escalated further due to the Ukraine conflict in 2022, driving up wholesale gas prices. This surge prompted government intervention to subsidize bills, with the UK price cap estimated to cost around £89bn to the public purse, capping costs to a typical household at £2,500.
Cornwall Insight noted that the supply of liquified natural gas to Europe had not been as adversely affected by the Red Sea disruptions as initially feared. Moreover, the UK has been well-supplied with gas from the US, which has become a more significant supplier since the Ukraine war, even as US electricity prices have risen to multi-decade highs. Contributing factors also include lower gas prices in Asia, mild weather, and robust gas availability.
Craig Lowrey, a principal consultant at Cornwall Insight, remarked that concerns about Red Sea events driving up energy prices have not materialized, allowing households to expect a reduction in prices.
On Monday, the next-month wholesale gas price dropped by 4% to 65p a therm.
However, Lowrey cautioned that a complete return to pre-crisis energy bill levels remains unlikely due to ongoing market impacts from shifting away from Russian energy sources and persistent geopolitical tensions, as well as policy changes such as Britain’s Energy Security Bill shaping market reforms.
Richard Neudegg, director of regulation at Uswitch, welcomed the potential further reduction of the price cap in April. However, he pointed out that this offers little solace to households currently struggling with high winter energy costs during the winter. Neudegg urged Ofgem, the energy regulator, to prompt suppliers to reintroduce more competitive and affordable fixed-price deals.
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Setbacks at Hinkley Point C Challenge UK's Energy Blueprint
Hinkley Point C delays highlight EDF cost overruns, energy security risks, and wholesale power prices, complicating UK net zero plans, Sizewell C financing, and small modular reactor adoption across the grid.
Key Points
Delays at EDF's 3.2GW Hinkley Point C push operations to 2031, lift costs to £46bn, and risk pricier UK electricity.
✅ First unit may slip to 2031; second unit date unclear.
✅ LSEG sees 6% wholesale price impact in 2029-2032.
✅ Sizewell C replicates design; SMR contracts expected soon.
Vincent de Rivaz, former CEO of EDF, confidently announced in 2016 the commencement of the UK's first nuclear power station since the 1990s, Hinkley Point C. However, despite milestones such as the reactor roof installation, recent developments have belied this optimism. The French state-owned utility EDF recently disclosed further delays and cost overruns for the 3.2 gigawatt plant in Somerset.
These complications at Hinkley Point C, which is expected to power 6 million homes, have sparked new concerns about the UK's energy strategy and its ambition to decarbonize the grid by 2050.
The UK government's plan to achieve net zero by 2050 includes a significant role for nuclear energy, reflecting analyses that net-zero may not be possible without nuclear and aiming to increase capacity from the current 5.88GW to 24GW by mid-century.
Simon Virley, head of energy at KPMG in the UK, stressed the importance of nuclear energy in transitioning to a net zero power system, echoing industry calls for multiple new stations to meet climate goals. He pointed out that failing to build the necessary capacity could lead to increased reliance on gas.
Hinkley Point C is envisioned as the pioneer in a new wave of nuclear plants intended to augment and replace Britain's existing nuclear fleet, jointly managed by EDF and Centrica. Nuclear power contributed about 14 percent of the UK's electricity in 2022, even as Europe is losing nuclear power across the continent. However, with the planned closure of four out of five plants by March 2028 and rising electricity demand, there is concern about potential power price increases.
Rob Gross, director of the UK Energy Research Centre, emphasized the link between energy security and affordability, highlighting the risk of high electricity prices if reliance on expensive gas increases.
The first 1.6GW reactor at Hinkley Point C, initially set for operation in 2027, may now face delays until 2031, even after first reactor installation milestones were reported. The in-service date for the second unit remains uncertain, with project costs possibly reaching £46bn.
LSEG analysts predict that these delays could increase wholesale power prices by up to 6 percent between 2029 and 2032, assuming the second unit becomes operational in 2033.
Martin Young, an analyst at Investec, warned of the price implications of removing a large power station from the supply side.
In response to these delays, EDF is exploring the extension of its four oldest plants. Jerry Haller, EDF’s former decommissioning director, had previously expressed skepticism about extending the life of the advanced gas-cooled reactor fleet, but EDF has since indicated more positive inspection results. The company had already decided to keep the Heysham 1 and Hartlepool plants operational until at least 2026.
Nevertheless, the issues at Hinkley Point C raise doubts about the UK's ability to meet its 2050 nuclear build target of 24GW.
Previous delays at Hinkley were attributed to the COVID-19 pandemic, but EDF now cites engineering problems, similar to those experienced at other European power stations using the same technology.
The next major UK nuclear project, Sizewell C in Suffolk, will replicate Hinkley Point C's design, aligning with the UK's green industrial revolution agenda. EDF and the UK government are currently seeking external investment for the £20bn project.
Compared with Hinkley Point C, Sizewell C's financing model involves exposing billpayers to some risk of cost overruns. This, coupled with EDF's track record, could affect investor confidence.
Additionally, the UK government is supporting the development of small modular reactors, while China's nuclear program continues on a steady track, with contracts expected to be awarded later this year.
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BC announces grid development, job creation
BC Hydro Power Pathway accelerates electrification with clean energy investments, new transmission lines, upgraded substations, and renewable projects like wind and solar, strengthening the grid, supporting decarbonization, and creating jobs across British Columbia's growing economy.
Key Points
A $36B, 10-year BC Hydro plan to expand clean power infrastructure, accelerate electrification, and support jobs.
✅ $36B for new lines, substations, dam upgrades, and distribution
✅ Supports 10,500-12,500 jobs per year across B.C.
✅ Adds wind and solar, leveraging hydro to balance renewables
BC Hydro is gearing up for a decade of extensive construction to enhance British Columbia's electrical system, supporting a burgeoning clean economy and community growth while generating new employment opportunities.
Premier David Eby emphasized the necessity of expanding the electrical system for industrial growth, residential needs, and future advancements. He highlighted the role of clean, affordable energy in reducing pollution, securing well-paying jobs, and fostering economic growth.
At the B.C. Natural Resources Forum in Prince George, Premier Eby unveiled a $36-billion investment plan for infrastructure projects in communities and regions and green energy solutions to provide clean, affordable electricity for future generations.
The Power Pathway: Building BC’s Energy Future, BC Hydro’s revised 10-year capital plan, involves nearly $36 billion in investments across the province from 2024-25 to 2033-34. This marks a 50% increase from the previous plan of $24 billion and includes a substantial rise in electrification and emissions-reduction projects (nearly $10 billion, up from $1 billion).
These upcoming construction projects are expected to support approximately 10,500 to 12,500 jobs annually. The plan is set to bolster and sustain BC Hydro’s capital investments as significant projects like Site C are near completion.
The plan addresses the increasing demand for electricity due to population and housing growth, industrial development, such as a major hydrogen project, and the transition from fossil fuels to clean electricity. Key projects include constructing new high-voltage transmission lines from Prince George to Terrace, building or expanding substations in high-growth areas, and upgrading dams and generating facilities for enhanced safety and efficiency.
Minister of Energy, Mines, and Low Carbon Innovation Josie Osborne stated that this plan aims to build a clean energy future and support EV charging expansion while creating construction jobs. With BC Hydro’s capital plan allocating almost $4 billion annually for the next decade, it will drive economic growth and ensure access to clean, affordable electricity.
BC Hydro aims to add new clean, renewable energy sources like wind and solar, while acknowledging power supply challenges that must be managed as capacity grows. B.C.’s hydroelectric dams, functioning as batteries, enable the integration of intermittent renewables into the grid, providing reliable backup.
Chris O’Riley, president and CEO of BC Hydro, said the grid is one of the world’s cleanest. The new $36 billion capital plan encompasses investments in generation assets, large transmission infrastructure, and local distribution networks.
In partnership with BC Hydro, Premier Eby also announced a new streamlined approval process to expedite electrification for high-demand industries and support job creation, complementing measures like the BC Hydro rebate and B.C. Affordability Credit that help households.
Minister of Environment and Climate Change Strategy George Heyman highlighted the importance of rapid electrification in collaboration with the private sector to achieve CleanBC climate goals by 2030, including corridor charging via the BC's Electric Highway, and maintain the competitiveness of B.C. industries. The new process will streamline approvals for industrial electrification projects, enhancing efficiency and funding certainty.
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Canadian Electricity Grids Increasingly Exposed to Harsh Weather
North American Grid Reliability faces extreme weather, climate change, demand spikes, and renewable variability; utilities, AESO, and NERC stress resilience, dispatchable capacity, interconnections, and grid alerts to prevent blackouts during heatwaves and cold snaps.
Key Points
North American grid reliability is the ability to meet demand during extreme weather while maintaining stability.
✅ Extreme heat and cold drive record demand and resource strain.
✅ Balance dispatchable and intermittent generation for resilience.
✅ Expand interconnections, capacity, and demand response to avert outages.
The recent alerts in Alberta's electricity grid during extreme cold have highlighted a broader North American issue, where power systems are more susceptible to being overwhelmed by extreme weather impacts on reliability.
Electricity Canada's chief executive emphasized that no part of the grid is safe from the escalating intensity and frequency of weather extremes linked to climate change across the sector.
“In recent years, during these extreme weather events, we’ve observed record highs in electricity demand,” he stated.
“It’s a nationwide phenomenon. For instance, last summer in Ontario and last winter in Quebec, we experienced unprecedented demand levels. This pattern of extremes is becoming more pronounced across the country.”
The U.S. has also experienced strain on its electricity grids due to extreme weather, with more blackouts than peers documented in studies. Texas faced power outages in 2021 due to winter storms, and California has had to issue several emergency grid alerts during heat waves.
In Canada, Albertans received a government emergency alert two weeks ago, urging an immediate reduction in electricity use to prevent potential rotating blackouts as temperatures neared -40°C. No blackouts occurred, with a notable decrease in electricity use following the alert, according to the Alberta Electric System Operator (AESO).
AESO's data indicates an increase in grid alerts in Alberta for both heatwaves and cold spells, reflecting dangerous vulnerabilities noted nationwide. The period between 2017 and 2020 saw only four alerts, in contrast to 17 since 2021.
Alberta's electricity grid reliability has sparked political debate, including proposals for a western Canadian grid to improve reliability, particularly with the transition from coal-fired plants to increased reliance on intermittent wind and solar power. Despite this debate, the AESO noted that the crisis eased when wind and solar generation resumed, despite challenges with two idled gas plants.
Bradley pointed out that Alberta's grid issues are not isolated. Every Canadian region is experiencing growing electricity demand, partly due to the surge in electric vehicles and clean energy technologies. No province has a complete solution yet.
“Ontario has had to request reduced consumption during heatwaves,” he noted. “Similar concerns about energy mix are present in British Columbia or Manitoba, especially now with drought affecting their hydro-dependent systems.”
The North American Electric Reliability Corporation (NERC) released a report in November warning of elevated risks across North America this winter for insufficient energy supplies, particularly under extreme conditions like prolonged cold snaps.
While the U.S. is generally more susceptible to winter grid disruptions, and summer blackout warnings remain a concern, the report also highlights risks in parts of Canada. Saskatchewan faces a “high” risk due to increased demand, power plant retirements, and maintenance, whereas Quebec and the Maritimes are at “elevated risk.”
Mark Olson, NERC’s manager of reliability assessments, mentioned that Alberta wasn't initially considered at risk, illustrating the challenges in predicting electricity demand amid intensifying extreme weather.
Rob Thornton, president and CEO of the International District Energy Association, acknowledged public concerns about grid alerts but reassured that the risk of a catastrophic grid failure remains very low.
“The North American grid is exceptionally reliable. It’s a remarkably efficient system,” he said.
However, Thornton emphasized the importance of policies for a resilient and reliable electricity system through 2050 and beyond. This involves balancing dispatchable and intermittent electricity sources, investing in extra capacity, enhancing macrogrids and inter-jurisdictional connections, and more.
“These grid alerts raise awareness, if not anxiety, about our energy future,” Thornton concluded.
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Western Canada drought impacting hydropower production as reservoirs run low
Western Canada Hydropower Drought strains British Columbia and Manitoba as reservoirs hit historic lows, cutting hydroelectric output and prompting power imports, natural gas peaking, and grid resilience planning amid climate change risks this winter.
Key Points
Climate-driven reservoir lows cut hydro in B.C. and Manitoba, prompting imports and backup gas to maintain reliability.
✅ Reservoirs at multi-year lows cut hydro generation capacity
✅ BC Hydro and Manitoba Hydro import electricity for reliability
✅ Natural gas turbines used; climate change elevates drought risk
Severe drought conditions in Western Canada are compelling two hydroelectricity-dependent provinces, British Columbia and Manitoba, to import power from other regions. These provinces, known for their reliance on hydroelectric power, are facing reduced electricity production due to low water levels in reservoirs this autumn and winter as energy-intensive customers encounter temporary connection limits.
While there is no immediate threat of power outages in either province, experts indicate that climate change is leading to more frequent and severe droughts. This trend places increasing pressure on hydroelectric power producers in the future, spurring interest in upgrading existing dams as part of adaptation strategies.
In British Columbia, several regions are experiencing "extreme" drought conditions as classified by the federal government. BC Hydro spokesperson Kyle Donaldson referred to these conditions as "historic," and a first call for power highlights the strain, noting that the corporation's large reservoirs in the north and southeast are at their lowest levels in many years.
To mitigate this, BC Hydro has been conserving water by utilizing less affected reservoirs and importing additional power from Alberta and various western U.S. states. Donaldson confirmed that these measures would persist in the upcoming months.
Manitoba is also facing challenges with below-normal levels in reservoirs and rivers. Since October, Manitoba Hydro has occasionally relied on its natural gas turbines to supplement hydroelectric production as electrical demand could double over the next two decades, a measure usually reserved for peak winter demand.
Bruce Owen, a spokesperson for Manitoba Hydro, reassured that there is no imminent risk of a power shortage. The corporation can import electricity from other regions, similar to how it exports clean energy in high-water years.
However, the cost implications are significant. Manitoba Hydro anticipates a financial loss for the current fiscal year, with more red ink tied to emerging generation needs, the second in a decade, with the previous one in 2021. That year, drought conditions led to a significant reduction in the company's power production capabilities, resulting in a $248-million loss.
The 2021 drought also affected hydropower production in the United States. The U.S. Department of Energy reported a 16% reduction in overall generation, with notable decreases at major facilities like Nevada's Hoover Dam, where production dropped by 25%.
Drought has long been a major concern for hydroelectricity producers, and they plan their operations with this risk in mind. Manitoba's record drought in 1940-41, for example, is a benchmark for Manitoba Hydro's operational planning to ensure sufficient electricity supply even in extreme low-water conditions.
Climate change, however, is increasing the frequency of such rare events, highlighting the need for more robust backup systems such as new turbine investments to enhance reliability. Blake Shaffer, an associate professor of economics at the University of Calgary specializing in electricity markets, emphasized the importance of hydroelectric systems incorporating the worsening drought forecasts due to climate change into their energy production planning.
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British Columbia Accelerates Clean Energy Shift
BC Hydro Grid Modernization accelerates clean energy and electrification, upgrading transmission lines, substations, and hydro dams to deliver renewable power for EVs and heat pumps, strengthen grid reliability, and enable industrial decarbonization in British Columbia.
Key Points
A $36B, 10-year plan to expand and upgrade B.C.'s clean grid for electrification, reliability, and industrial growth.
✅ $36B for lines, substations, and hydro dam upgrades
✅ Enables EV charging, heat pumps, and smart demand response
✅ Prioritizes industrial electrification and Indigenous partnerships
In a significant move towards a clean energy transition, British Columbia has announced a substantial $36-billion investment to enlarge and upgrade its electricity grid over the next ten years. The announcement last Tuesday from BC Hydro indicates a substantial 50 percent increase from its prior capital plan. A major portion of this investment is directed towards new consumer connections and improving current infrastructure, including substations, transmission lines, and hydro dams for more efficient power generation.
The catalyst behind this major investment is the escalating demand for clean energy across residential, commercial, and industrial sectors in British Columbia. Projections show a 15 percent rise in electricity demand by 2030. According to the Canadian Climate Institute's models, achieving Canada’s climate goals will require extensive electrification across various sectors, raising questions about a net-zero grid by 2050 nationwide.
BC Hydro is planning substantial upgrades to the electrical grid to meet the needs of a growing population, decreasing industry carbon emissions, and the shift towards clean technology. This is vital, especially as the province works towards improving housing affordability and as households face escalating costs from the impacts of climate change and increasing exposure to harsh weather events. Affordable, reliable power and access to clean technologies such as electric vehicles and heat pumps are becoming increasingly important for households.
British Columbia is witnessing a significant shift from fossil fuels to clean electricity in powering homes, vehicles, and workplaces. Electric vehicle usage in B.C. has increased twentyfold in the past six years. Last year, one in every five new light-duty passenger vehicles sold in B.C. was electric – the highest rate in Canada. Additionally, over 200,000 B.C. homes are now equipped with heat pumps, indicating a growing preference for the province’s 98 percent renewable electricity.
The investment also targets reducing industrial emissions and attracting industrial investment. For instance, the demand for transmission along the North Coastline, from Prince George to Terrace, is expected to double this decade, especially from sectors like mining. Mining companies are increasingly looking for locations with access to clean power to reduce their carbon footprint.
This grid enhancement plan in B.C. is reflective of similar initiatives in provinces like Quebec and the legacy of Manitoba hydro history in building provincial systems. Hydro-Québec announced a substantial $155 to $185 billion investment in its 2035 Action Plan last year, aimed at supporting decarbonization and economic growth. By 2050, Hydro-Québec predicts a doubling of electricity demand in the province.
Both utilities’ strategies focus on constructing new facilities and enhancing existing assets, like upgrading dams and transmission lines. Hydro-Québec, for instance, includes energy efficiency goals in its plan to double customer savings and potentially save over 3,500 megawatts of power.
However, with this level of investment, provinces need to engage in dialogue about priorities and the optimal use of clean electricity resources, with concepts like macrogrids offering potential benefits. Quebec, for instance, has shifted from a first-come, first-served basis to a strategic review process for significant new industrial power requests.
B.C. is also moving towards strategic prioritization in its energy strategy, evident in its recent moratorium on new connections for virtual currency mining due to their high energy consumption.
Indigenous partnership and leadership are also key in this massive grid expansion. B.C.’s forthcoming Call for Power and Quebec’s financial partnerships with Indigenous communities indicate a commitment to collaborative approaches. British Columbia has also allocated $140 million to support Indigenous-led power projects.
Regarding the rest of Canada, electricity planning varies in provinces with deregulated markets like Ontario and Alberta. However, these provinces are adapting too, and the federal government has funded an Atlantic grid study to improve regional planning efforts. Ontario, for example, has provided clear guidance to its system operator, mirroring the ambition in B.C. and Quebec.
Utilities are rapidly working to not only expand and modernize energy grids but also to make them more resilient, affordable, and smarter, as demonstrated by recent California grid upgrades funding announcements across the sector. Hydro-Québec focuses on grid reliability and affordability, while B.C. experiments with smart-grid technologies.
Both Ontario and B.C. have programs encouraging consumers to reduce consumption in real-time, demonstrating the potential of demand-side management. A recent instance in Alberta showed how customer participation could prevent rolling blackouts by reducing demand by 150 megawatts.
This is a crucial time for all Canadian provinces to develop larger, smarter energy grids, including a coordinated western Canadian electricity grid approach for a sustainable future. Utilities are making significant strides towards this goal.
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Ontario will refurbish Pickering B NGS
Pickering nuclear refurbishment will modernize Ontario's Candu reactors at Pickering B, sustaining 2,000 MW of clean electricity, aiding net-zero goals, and aligning with Ontario Power Generation plans and Canadian Nuclear Safety Commission reviews.
Key Points
An 11-year overhaul of Pickering B Candu reactors to extend life, keep 2,000 MW online, and back Ontario net-zero grid.
✅ 11-year project; 11,000 annual jobs; $19.4B GDP impact.
✅ Refurbishes four Pickering B Candu units; maintains 2,000 MW.
✅ Requires Canadian Nuclear Safety Commission license approvals.
The Ontario government has announced its intention to pursue a Pickering refurbishment at the venerable nuclear power station, which has been operational for over fifty years. This move could extend the facility's life by another 30 years.
This decision is timely, as Ontario anticipates a significant surge in electricity demand and a growing electricity supply gap in the forthcoming years. Additionally, all provinces are grappling with new federal mandates for clean electricity, necessitating future power plants to achieve net-zero carbon emissions.
Todd Smith, the Energy Minister, is expected to endorse Ontario Power Generation's proposal for the plant's overhaul, as per a preliminary version of a government press release.
The renovation will focus on four Candu reactors, known collectively as Pickering B, which were originally commissioned in the early 1980s. This upgrade is projected to continue delivering 2,000 megawatts of power, equivalent to the current output of these units.
According to the press release, the project will span 11 years, create approximately 11,000 annual jobs, and contribute $19.4 billion to Ontario's GDP. However, the total budget for the project remains unspecified.
The project follows the ongoing refurbishment of four units at the nearby Darlington nuclear station, which is more than halfway completed with a budget of $12.8 billion.
The proposal awaits the Canadian Nuclear Safety Commission's approval, and officials face extension request timing considerations before key deadlines.
The Commission is also reviewing a prior request from OPG to extend the operational license of the existing Pickering B units until 2026. This extension would allow the plant to safely continue operating until the commencement of its renovation, pending approval.
Ontario's Ambitious Nuclear Strategy
The announcement regarding Pickering is part of Ontario's broader clean energy plan for an unprecedented expansion of nuclear power in Canada.
Last summer, the province announced its intention to nearly double the output at Bruce Power, currently the world's largest nuclear generating station.
Additionally, Ontario revealed SMR plans to construct three more alongside the existing project at Darlington. These reactors are expected to supply enough electricity to power around 1.2 million homes.
Discussions about revitalizing the Pickering facility began in 2022, after the station had been slated to close as planned amid debate, with Ontario Power Generation submitting a feasibility report to the government last summer.
The Ford government emphasized the necessity of this nuclear expansion to meet the increasing electricity demands anticipated from the auto sector's shift to electric vehicles, the steel industry's move away from coal-fired furnaces, and the growing population in Ontario.
Ontario's capability to attract major international car manufacturers like Volkswagen and Stellantis to produce electric vehicles and batteries is partly attributed to the fact that 90% of the province's electricity comes from non-fossil fuel sources.
