Warmer weather means higher, faster water

Ontario Hydro Disconnection Ban ends May 1, prompting utilities and Hydro One to push payment plans, address arrears, and link low-income assistance, as Sudbury officials urge customers to avoid spring electricity disconnections.

Key Points

A seasonal policy halting winter shutoffs in Ontario, ending May 1 as utilities emphasize payment plans and assistance.

✅ Disconnections resume after winter moratorium ends May 1.

✅ Utilities offer payment plans, arrears management, relief funds.

✅ Hydro One delays shutoffs until June 1; arrears down 60%.

The first of May has taken on new meaning this year in Ontario.

It's when the province's ban on hydro disconnections during the winter months comes to an end, even as Ontario considers extending moratoriums in some cases.

Wendy Watson, the director of communications at Greater Sudbury Utilities, says signs of the approaching deadline could be seen in their office of the past few weeks.

"We've had quite an active stream of people into our front office to catch up on their accounts and also we've had a lot of people calling us to make payment arrangements or pay their bill or deal with their arrears," she says.

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Watson says there are 590 customers in Sudbury who could face possible disconnection this spring, compared with just 60 when the ban started in November.

"They will put off until tomorrow what they can avoid today," she says.

Watson says they are hoping to work with customers to figure payment plans with more choice and flexibility and avoid the need to cut power to certain homes and businesses. 

"As we like to say we're in the distribution of energy business, not the disconnection of energy business. We want you to be able to turn the lights on," she says.

Joseph Leblanc from the Social Planning Council of Sudbury says the winter hydro disconnection ban is one of several government measures that keep low income families on the brink of disaster. (CBC)

Hydro One executive vice-president of customer care Ferio Pugilese, whose utility later extended disconnection bans across its service area, tells a different story.

He says the company has worked hard to configure payment plans for customers over the last three years amid unchanged peak-rate policies and find ways for them to pay "that fit their lifestyle."

"The threat of a disconnection is not on its own something that's going to motivate someone to pay their bills," says Pugilese.

He says Hydro One is also sending out notices this spring, but won't begin cutting anyone off until June 1st.

He says that disconnections and the amount owing from outstanding bills to Hydro One are down 60 per cent in the last year. 

Ontario Energy Minister Glenn Thibeault says there is plenty of help from government programs and utility financing options like Hydro One's relief fund for those having trouble paying their power bills. (CBC)

Sudbury MPP and Energy Minister Glenn Thibeault says his hope is that people having trouble paying their power bills will talk to their hydro utility and look at the numerous programs the government offers to help low-income citizens.

"You know, I really want every customer to have a conversation with their local utility about getting back on track and we do have those programs in place," he says.

However, Joseph Leblanc, the executive director of the Social Planning Council of Sudbury, says the winter disconnection ban is just another government policy that keeps the poor on the brink of disaster.

"It's a feel good story for the government to say that, but it's a band-aid solution. We can stop the bleeding for a little while, make sure people aren't freezing to death in Ontario," he says. 

"People choose between rent, hydro, medicine, food, and there's an option for one of those to take some pressure off for a little while."

Instead, Leblanc would like to see the government fast track the province-wide implementation of the basic income program it's testing out in a few cities. 

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CPUC Decision on San Diego Community Power directs SDG&E to use updated forecasts, stabilizing electricity rates for CCA customers and supporting clean energy in San Diego with accurate rate forecasting and reduced volatility.

Key Points

A CPUC ruling directing SDG&E to use updated forecasts to ensure accurate, stable CCA rates and limit volatility.

✅ Uses 2021 sales forecasts for rate setting

✅ Aims to prevent undercollection and bill spikes

✅ Levels changes across customer classes

The California Public Utilities Commission on Thursday sided with the soon-to-launch San Diego community energy program in a dispute it had with San Diego Gas & Electric.

San Diego Community Power — which will begin to purchase power for customers in San Diego, Chula Vista, La Mesa, Encinitas and Imperial Beach later this year — had complained to the commission that data SDG&E intended to use to calculate rates, including community choice exit fees that could make the new energy program less attractive to prospective customers.

SDG&E argued it was using numbers it was authorized to employ as part of a general rate case amid a potential rate structure revamp that is still being considered by the commission.

But in a 4-0 vote, the commission, or CPUC, sided with San Diego Community Power and directed SDG&E to use an updated forecast for energy sales.

"This was not an easy decision," said CPUC president Marybel Batjer at the meeting, held remotely due to COVID-19 restrictions. "In my mind, this outcome best accounts for the shifting realities ... in the San Diego area while minimizing the impact on ratepayers during these difficult financial times."

In filings to the commission, SDG&E predicted a rate decrease of 12.35 percent in the coming year. While that appears to be good news for customers, Californians still face soaring electricity prices statewide, Commissioner Martha Guzman Aceves said the data set SDG&E wanted to use would lead to an undercollection of $150 million to $260 million.

That would result in rates that would be "artificially low," Guzman Aceves said, and rates "would inevitably go up quite a bit after the undercollection was addressed."

San Diego Community Power, or SDCP, said the temporary reduction would make its rates less attractive than SDG&E's, especially amid SDG&E's minimum charge proposal affecting low-usage customers, just as it is about to begin serving customers. SDCP's board members wrote an open letter last month to the commission, accusing the utility of "willful manipulation of data."

Working with an administrative law judge at the CPUC, Guzman Aceves authored a proposal requiring SDG&E to use numbers based on 2021 forecasts, as regulators simultaneously weigh whether the state needs more power plants to ensure reliability. The utility argued that could result in an increase of "roughly 40 percent" for medium and large commercial and industrial customers this year.

To help reduce potential volatility, Guzman Aceves, SDCP and other community energy supporters called for using a formula that would average out changes in rates across customer classes amid debates over income-based utility charges statewide. That's what the commissioners OK'd Thursday.

"It is essential that customer commodity rates be as accurate as we can possibly get them to avoid undercollections," said Commissioner Genevieve Shiroma.

San Diego Community Power is one of 23 community choice aggregation, or CCA, energy programs that have launched in California in the past decade.

CCAs compete with traditional power companies amid California's evolving power competition landscape, in one important role — purchasing power for a given community. They were created to boost the use of cleaner energy sources, such as wind and solar, at rates equal to or lower than investor-owned utilities.

However, CCAs do not replace utilities because the incumbent power companies still perform all of the tasks outside of power purchasing, such as transmission and distribution of energy and customer billing.

When a CCA is formed, California rules stipulate the utility customers in that area are automatically enrolled in the CCA. If customers prefer to stay with their previous power company, they can opt out of joining the CCA.

The shift of customers from SDG&E to San Diego Community Power is expected to be large. The total number of accounts for SDCP is expected to be 770,000, which would make it the second-largest CCA in the state. That's why SDCP considered Thursday's CPUC decision to be so important.

"At a time when customers are choosing between sticking with San Diego Gas & Electric and migrating to a CCA, we want them to have accurate bill information," said Commissioner Clifford Rechtschaffen.

"SDCP is very happy with today's CPUC decision, and that the commissioners shared our goal of limiting rate volatility for businesses and families in the region," said SDCP interim CEO Bill Carnahan. "This is definitely a win for accurate rate forecasting, and our mutual customers, and we look forward to working with SDG&E on next steps."

In an email, SDG&E spokeswoman Helen Gao said, "We are committed to continuing to work collaboratively with local Community Choice Aggregation programs to support their successful launch in 2021 and ensure that our mutual customers receive excellent customer service."

San Diego Community Power's case before the CPUC was joined by the California Community Choice Association, a trade group advocating for CCAs, and the Clean Energy Alliance — the North County-based CCA representing Del Mar, Solana Beach and Carlsbad that is scheduled to launch this summer.

SDCP will begin its rollout this year, folding in about 71,000 municipal, commercial and industrial accounts. The bulk of its roughly 700,000 residential accounts is expected to come in January 2022.

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Ontario electricity shortage is looming, RBC and IESO warn, as EV electrification surges, Pickering nuclear faces delays, and gas plants backstop expiring renewables, raising GHG emissions and grid reliability concerns across the province.

Key Points

A projected supply shortfall as demand rises from electrification, expiring contracts, and delayed nuclear capacity.

✅ RBC warns shortages as early as 2026, significant by 2030

✅ IESO sees EV-driven demand; 5,000-15,000 MW by 2035

✅ Gas reliance boosts GHGs; Pickering life extension assessed

In a fit of ideological pique, Doug Ford’s government spent more than $200 million to scrap more than 700 green energy projects soon after winning the 2018 election, amid calls to make clean, affordable power a central issue, portraying them as “unnecessary and expensive energy schemes.”

A year later, then Associate Energy Minister Bill Walker defended the decision, declaring, “Ontario has an adequate supply of power right now.”

Well, life moves fast. At the time, scrapping the renewable energy projects was criticized as short-sighted and wasteful, raising doubts about whether Ontario was embracing clean power in a meaningful way. It seems especially so now as Ontario confronts the reality of being short of electricity in the coming years.

How short? A recent report by RBC calls the situation “urgent,” saying that Canada’s most populous province could face energy shortages as early as 2026. As contracts for non-hydro renewables and gas plants expire, the shortages could be “significant” by 2030, the bank report said, with grid greening costs adding to the challenge.

The Independent Electricity System Operator (IESO), which manages the electrical supply in Ontario, says demand for electricity could rise at rates not seen in many years, as the government moves to add new gas plants to boost capacity. “Economic growth coming out of the pandemic, along with electrification in many sectors, is driving energy use up,” the agency said in a December assessment.

The good news is that demand is being driven, in part, by the transition to “green” power – carbon-emission-free electricity – by sectors such as transportation and manufacturing. That will help reduce emissions. Yet meeting that demand presents some challenges, prompting the province to outline a plan to address growing needs across the system. The shift to electric vehicles alone is expected to cause a spike in demand starting in 2030. By 2035, the province could need an additional 5,000 to 15,000 megawatts of electricity, the IESO estimates.

It was perhaps no surprise then to see the province announce last week that it wants to delay the long-planned closing of the Pickering nuclear plant by a year to 2026, even as others note the station is slated to close as planned. Operations beyond that would require refurbishing the facility. The province said it’s taking a fresh look at whether that would make sense to extend its life by another 30 years.

In the interim, the province will be forced to dramatically ramp up its reliance on natural gas plants for electricity generation – and, as analysts warn, Ontario’s power mix could get dirtier even before new non-emitting capacity is built, and in the process, increase greenhouse gas emissions from the energy grid by 400 per cent. Broader electrification is expected to produce “significant” GHG emissions reductions in Ontario over the next two decades, according to the IESO. Still, it’s working at cross-purposes if your electric car is charged by electricity generated by fossil fuels.

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Duke Energy Clean Energy Strategy advances renewables, battery storage, grid modernization, and energy efficiency to cut carbon, retire coal, and target net-zero by 2050 across the Carolinas with robust IRPs and capital investments.

Key Points

Plan to expand renewables, storage, and grid upgrades to cut carbon and reach net-zero electricity by 2050.

✅ 56B investment in renewables, storage, and grid modernization

✅ Targets 50% carbon reduction by 2030 and net-zero by 2050

✅ Retires coal units; expands energy efficiency and IRPs

Duke Energy says that the company will continue advancing its ambitious clean energy goals without the Atlantic Coast Pipeline (ACP) by investing in renewables, battery storage, energy efficiency programs and grid projects that support U.S. electrification efforts.

Duke Energy, the nation's largest electric utility, unveils its new logo. (PRNewsFoto/Duke Energy) (PRNewsfoto/Duke Energy)

Duke Energy's $56 billion capital investment plan will deliver significant customer benefits and create jobs at a time when policymakers at all levels are looking for ways to rebuild the economy in 2020 and beyond. These investments will deliver cleaner energy for customers and communities while enhancing the energy grid to provide greater reliability and resiliency.

"Sustainability and the reduction of carbon emissions are closely tied to our region's success," said Lynn Good, Duke Energy Chair, President and CEO. "In our recent Climate Report, we shared a vision of a cleaner electricity future with an increasing focus on renewables and battery storage in addition to a diverse mix of zero-carbon nuclear, natural gas, hydro and energy efficiency programs.

"Achieving this clean energy vision will require all of us working together to develop a plan that is smart, equitable and ensures the reliability and affordability that will spur economic growth in the region. While we're disappointed that we're not able to move forward with ACP, we will continue exploring ways to help our customers and communities, particularly in eastern North Carolina where the need is great," said Good.

Already a clean-energy leader, Duke Energy has reduced its carbon emissions by 39% from 2005 and remains on track to cut its carbon emissions by at least 50% by 2030, as peers like Alliant's carbon-neutral plan demonstrate broader industry momentum toward decarbonization. The company also has an ambitious clean energy goal of reaching net-zero emissions from electricity generation by 2050. 

In September 2020, Duke Energy plans to file its Integrated Resource Plans (IRP) for the Carolinas after an extensive process of working with the state's leaders, policymakers, customers and other stakeholders. The IRPs will include multiple scenarios to support a path to a cleaner energy future in the Carolinas, reflecting key utility trends shaping resource planning.

Since 2010, Duke Energy has retired 51 coal units totaling more than 6,500 megawatts (MW) and plans to retire at least an additional 900 MW by the end of 2024. In 2019, the company proposed to shorten the book lives of another approximately 7,700 MW of coal capacity in North Carolina and Indiana.

Duke Energy will host an analyst call in early August 2020 to discuss second quarter 2020 financial results and other business and financial updates. The company will also host its inaugural Environmental, Social and Governance (ESG) investor day in October 2020.

Duke Energy

Duke Energy is transforming its customers' experience, modernizing the energy grid, generating cleaner energy and expanding natural gas infrastructure to create a smarter energy future for the people and communities it serves. The Electric Utilities and Infrastructure unit's regulated utilities serve 7.8 million retail electric customers in six states: North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to 1.6 million customers in five states: North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.

Duke Energy was named to Fortune's 2020 "World's Most Admired Companies" list and Forbes' "America's Best Employers" list. More information about the company is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, videos and other materials. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

Forward-Looking Information

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions and can often be identified by terms and phrases that include "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to:

• The impact of the COVID-19 electricity demand shift on operations and revenues;
• State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices;
• The extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate;
• The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process;
• The costs of decommissioning nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process;
• Costs and effects of legal and administrative proceedings, settlements, investigations and claims;
• Industrial, commercial and residential growth or decline in service territories or customer bases resulting from sustained downturns of the economy and the economic health of our service territories or variations in customer usage patterns, including energy efficiency and demand response efforts and use of alternative energy sources, such as self-generation and distributed generation technologies;
• Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs;
• Advancements in technology;
• Additional competition in electric and natural gas markets and continued industry consolidation;
• The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change;
• The ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources;
• The ability to obtain the necessary permits and approvals and to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business;
• Operational interruptions to our natural gas distribution and transmission activities;
• The availability of adequate interstate pipeline transportation capacity and natural gas supply;
• The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, operational accidents, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences;
• The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third-party service providers;
• The timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets;
• The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions and general market and economic conditions;
• Credit ratings of the Duke Energy Registrants may be different from what is expected;
• Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning trust funds;
• Construction and development risks associated with the completion of the Duke Energy Registrants' capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all;
• Changes in rules for regional transmission organizations, including FERC debates on coal and nuclear subsidies and new and evolving capacity markets, and risks related to obligations created by the default of other participants;
• The ability to control operation and maintenance costs;
• The level of creditworthiness of counterparties to transactions;
• The ability to obtain adequate insurance at acceptable costs;
• Employee workforce factors, including the potential inability to attract and retain key personnel;
• The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent);
• The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities;
• The effect of accounting pronouncements issued periodically by accounting standard-setting bodies;
• The impact of U.S. tax legislation to our financial condition, results of operations or cash flows and our credit ratings;
• The impacts from potential impairments of goodwill or equity method investment carrying values; and
• The ability to implement our business strategy, including enhancing existing technology systems.
• Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Alberta Electricity Market Reform reshapes policy under the UCP, weighing a capacity market versus energy-only design, AESO reliability rules, renewables targets, coal phase-out, carbon pricing, consumer rates, and investment certainty before AUC decisions.

Key Points

Alberta Electricity Market Reform is the UCP plan to reassess capacity vs energy-only, renewables, and carbon pricing.

✅ Reviews capacity market timeline and AESO procurement

✅ Alters subsidies for renewables; slows wind and solar growth

✅ Adjusts industrial carbon levy; audits Balancing Pool losses

Hearings kicked off this week into the future of the province’s electricity market design, amid an electricity market reshuffle pledged by the province, but a high-stakes decision about the industry’s fate — affecting billions of dollars in investment and consumer costs — won’t be made inside the meeting room of the Alberta Utilities Commission.

Instead, it will take place in the office of Jason Kenney, as the incoming premier prepares to pivot away from the seismic reforms to Alberta’s electricity sector introduced by the Notley government.

The United Conservative Party has promised to adopt market-based policies, reflecting changes to how Alberta produces and pays for power, that will reset how the sector operates, from its approach to renewable energy and carbon pricing to re-evaluating the planned transition to an electricity “capacity market.”

“Every ball in electricity is up in the air right now,” Vittoria Bellissimo, of the Industrial Power Consumers Association of Alberta, said Tuesday during a break in the commission hearings.

Industry players are uncertain how quickly the UCP will change direction on power policies, but there’s little doubt Kenney’s government will take a strikingly different approach to the sector that keeps the lights on in Alberta.

“There’s some things they are going to change that are going to impact the electricity industry significantly,” said Duane Reid-Carlson, chief executive of consultancy EDC Associates.

“But I don’t think it’s going to be upheaval. I think the new government will proceed with caution because electricity is the foundation of our economy.”

Alberta’s electricity market has been turned on its head in recent years due to the recession, power prices dropping to near two-decade lows and several transformative policies initiated by the NDP.

The Notley government’s climate plan included an accelerated phase-out of all coal-fired generation and set targets for more renewable energy.

The most significant, but least-understood, move has been the planned shift to an electricity capacity market in 2021.

Under the strategy, generators will no longer solely be paid for the power produced and sold into the market; they will also receive payments for having electricity capacity available to the grid on demand.

The change was recommended by the Alberta Electric System Operator (AESO) as a way to reduce price volatility and provide more reliability than the current energy-only market, which some argue needs more competition to deliver better outcomes.

The independent system operator and industry officials have spent more than two years planning the transition since the switch was announced in late 2016. Proposed rules for the new system, outlining market changes, are now being discussed at the Alberta Utilities Commission hearings.

However, there is no ironclad guarantee the system remake will go ahead following the UCP’s election victory last week — amid calls to scrap the overhaul from a Calgary retailer — it plans to study the issue further — while other substantive electricity changes are already in store.

The UCP has promised to end “costly subsidies” to renewable energy developments and abandon the NDP’s pledge to have such energy sources make up 30 per cent of all power generation by 2030.

It will remove the planned phase-out of coal-fired electricity generation, although federal regulations for a 2030 prohibition remain in place.

It will also ask the auditor general to conduct a special audit of the massive losses sustained by the province’s Balancing Pool due to power purchase arrangements being handed back to the agency three years ago.

While Kenney has pledged to cancel the provincewide carbon tax, a levy on large industrial greenhouse gas emitters (such has power plants) will still be charged, although at a reduced rate of $20 a tonne.

The biggest unknown remains the power market’s structure, which underpins how the entire system operates.

The UCP has promised to consult on the shift to the capacity market and report back to Albertans within 90 days.

The complex issue may sound like an eye-glazer, but it will have a profound effect on industry investment, as well as how much consumers pay on their monthly electricity bills.

A number of industry players worry the capacity market will lead AESO to procure more power than is necessary, foisting unnecessary costs onto all Albertans.

“I still have concerns for what the impact on consumers is going to be,” said energy market consultant Sheldon Fulton. “I’d love to see the capacity market go away.”

An analysis by EDC Associates found the transition to a capacity market will procure additional electricity before it’s needed, requiring consumers to pay up to 40 per cent more — an extra $1.4 billion — for power in 2021-22 than under the existing market structure.

“I don’t think there’s any prejudged outcome,” said Blake Shaffer, former head trader at TransAlta Corp. and a fellow-in-residence at the C.D. Howe Institute.

“But it really matters about getting this right.”

Evan Bahry, executive director of the Independent Power Producers Society of Alberta, said the fact the UCP’s review was confined to just 90 days is helpful, as it avoids throwing the entire industry into a prolonged period of uncertainty.

As for the greening of Alberta’s power grid, amid growing attention to clean grids and storage, the demise of the NDP’s Renewable Electricity Program will likely slow down the rapid pace of wind and solar development. But it’s unlikely to stop the growth trend as costs continue to fall for such developments.

“Renewables over the last number of years have evolved to the point that they make sense on a subsidy-free basis,” said Dan Balaban, CEO of Greengate Power Corp., which has developed 480 MW of wind power in Alberta and Ontario.

“There is a path to clean electricity ahead.”

Chris Varcoe is a Calgary Herald columnist.

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China Nuclear Power Expansion accelerates with reactor approvals, Hualong One and CAP1400 deployments, rising gigawatts, clean energy targets, carbon neutrality goals, and grid reliability benefits to meet coastal demand and reduce emissions.

Key Points

An accelerated reactor buildout to add clean capacity, curb emissions, and improve grid reliability nationwide.

✅ Approvals surge for Hualong One and CAP1400 third-gen reactors

✅ Capacity targets approach 100 GW installed by 2030

✅ Supports carbon neutrality, energy security, and lower costs

While China has failed to accomplish its 2020 nuclear target of 58 gigawatts under operation and 30 GW under construction, insiders are optimistic about prospects for the nonpolluting energy resource in China over the next five years as the country has stepped up nuclear approvals and construction since 2020.

China expects to record 49 operating nuclear facilities and capacity of more than 51 GW as of the end of 2020. Nuclear power currently makes up around 2.4 percent of the country's total installed energy capacity, said the China Nuclear Energy Association. There are 19 facilities that have received approval and are under construction, with capacity exceeding 20 GW, ranking top globally as nuclear project milestones worldwide continue, it said.

"With surging power demand from coastal regions, more domestic technology, including next-gen nuclear, will be adopted with installations likely nearing 100 GW by the end of 2030," said Wei Hanyang, a power market analyst at Bloomberg New Energy.

Following the Fukushima nuclear reactor disaster in 2011 in Japan, China has, like many countries including Japan, Germany and Switzerland, suspended nuclear power project approvals for a period, including construction of the pilot project of Shidaowan nuclear power plant in Shandong province that uses CAP1400 technology, based on third-generation Westinghouse AP1000 reactor technology.

As China promotes greener development and prioritizes safety and security of nuclear power plant construction, it has pledged to hit peak emissions before 2030 and achieve carbon neutrality by 2060, with electricity meeting 60% of energy use by 2060 according to Shell, the Shidaowan plant, originally scheduled to launch construction in 2014 and enter service in 2018, is expected to start fuel loading and begin operations this year.

Joseph Jacobelli, an independent energy analyst and executive vice-president for Asia business at Cenfura Ltd, a smart energy services company, said recent developments confirm China's ongoing commitment to further boost the country's nuclear sector.

"The nuclear plants can help meet China's goal of reducing greenhouse gas emissions as the country reduces coal power production and provide air pollution-free energy at a lower cost to consumers. China's need for clean energy means that nuclear power generation definitely has an important place in the long-term energy mix," Jacobelli said.

He added that Chinese companies' cost control capabilities and technological advancements, and operational performance improvements such as the AP1000 refueling outage record, are also likely to continue providing domestic companies with advantages, as the cost per kilowatt-hour is very important, especially as solar, wind and other clean energy solutions become even cheaper over the next few years.

China approved two nuclear projects in 2020- Hainan Changjiang nuclear power plant unit 2 and Zhejiang San'ao nuclear power plant unit 1. This is after the country launched three new nuclear power plants in 2019 in the provinces of Shandong, Fujian and Guangdong, which marked the end of a moratorium on new projects.

The Zhejiang San'ao nuclear power plant saw concrete poured for unit 1 on Dec 31, according to its operator China General Nuclear. It will be the first of six Hualong One pressurized water reactors to be built at the site as well as the first Chinese nuclear power plant project to involve private capital.

Jointly invested, constructed and operated by CGN, Zheneng Electric Power, Wenzhou Nuclear Energy Development, Cangnan County Haixi Construction Development and Geely Maijie Investment, the project creates a new model of mixed ownership of nuclear power enterprises, said CGN.

The world's first Hualong One reactor at unit 5 of China National Nuclear Corp's Fuqing nuclear plant in Fujian province was connected to the grid in November. With the start of work on San'ao unit 1, China now has further seven Hualong One units under construction, including Fuqing 6, which is scheduled to go online this year.

CNNC is also constructing one unit at Taipingling in Guangdong and two at Zhangzhou in Fujian province. CGN is building two at its Fangchenggang site in Guangxi Zhuang autonomous region. In addition, two Hualong One units are under construction at Karachi in Pakistan, while CGN proposes to use a UK version of the Hualong One at Bradwell in the United Kingdom, aligning with the country's green industrial revolution strategy.

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