EU green plan to “fund dirty coal”

By The Independent


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European countries will be able to use money from a key EU scheme for reducing climatechanging carbon emissions to build new coalfired power stations, documents leaked to The Independent suggest.

Billions of pounds in revenues from the EUs Emissions Trading Scheme ETS – under which power plants have to buy permits to pollute so they have an incentive to drive their emissions down – may find their way into state aid for new coalfired power station construction across the continent.

The bizarre situation of a climate policy pulling in two directions at once arises from concessions made to new and poorer EU member states such as Poland, when the EU was drawing up its current 202020climate change regime, seeking to cut emissions by 20 per cent, and secure 20 per cent of energy from renewable sources, by 2020.

With more than 90 per cent of its energy coming from coalfired electricity, Poland feared it would find the ETS especially burdensome, so the EU agreed that some of the trading schemes revenues could be used as state aid for construction in the energy generation sector.

But rather than applying the rule to Poland in isolation, it was decided that it would apply to every country to ensure a level playing field across the EU. At the moment not all permits are sold – some are given away. Britain currently sells about 7 per cent of its carbon permits, for which it receives just over £50 million annually. But after 2013, 100 per cent of permits will be sold, and the revenues generated across Europe will be enormous, with Britain alone set to raise £40 billion by 2020. Sales of pollution permits will raise tens of billions of pounds between now and 2020 for almost every country in Europe.

The unpublished guidelines for how this mountain of cash may be used in state aid for power station construction have been seen by The Independent. They say the funds could be used to provide up to 15 per cent of the costs of highlyefficient CCSready power plants. But environmental campaigners are critical. CCSready means a power station ready to be fitted with carbon capture and storage, the new technology which, some time after 2020, it is hoped, will extract the CO2 from a plants waste gases and store it under the sea bed. CCS may offer real hope for bringing emissions down, but CCSready can merely mean that a power station has an adjacent site on which a CCS plant could be built.

Highly efficient is a similarly relative term. Under current EU guidelines, values could be used for a coal plant which is only 44 per cent efficient – that is, it loses 56 per cent of the energy it produces in transmission.

Green campaigners say this means there could be massive government subsidies across the continent for building what are in effect oldfashioned dirty coal power stations – the sort that the EUs climate policy is supposed to be phasing out. There are currently 68 new coal plants in the planning stage in the EU, the highest number of which are in Germany.

What these documents show is that billions of pounds raised through a scheme that was meant to help reduce pollution could be handed to massive German energy companies to actually increase pollution by helping them to build the most polluting power stations that exist, said Joss Garman, energy campaigner for Greenpeace.

Its exactly like taking money from Weight Watchers and handing it to McDonalds to run advertising campaigns for Big Macs in schools. Its utterly perverse and it requires Gordon Brown to step in and stop this madness.

A typical coalfired power station might cost £2 billion to build – so a 15 per cent subsidy could amount to a £300 million state handout, for burning more coal.

Emissions trading:

• The European Unions Emissions Trading Scheme ETS is the principal instrument by which climatechanging carbon emissions will be driven down across the EU.

• Emissions trading is a way of offering a financial carrot to polluting companies to persuade them to clean up their act, at the same time as threatening them with a financial stick. Heavy plants are allocated permits to emit a certain amount of carbon dioxide in the course of their operations, one permit being equivalent to a tonne of CO2.

• Once they reach the end of their allocation, they have to buy more permits, which in theory ought to be very expensive. But if they cut their emissions to below their limit and have permits left over, they can sell them on the carbon market to other companies that may be emitting too much.

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Some in Tennessee could be without power for weeks after strong storms hit

Middle Tennessee Power Outages disrupt 100,000+ customers as severe thunderstorms, straight-line winds, downed trees, and debris challenge Nashville crews, slow restoration amid COVID-19, and threaten more hail, flash flooding, and damaging gusts.

 

Key Points

Blackouts across Nashville after severe storms and winds, leaving customers without power and facing restoration delays.

✅ Straight-line winds 60-80 mph toppled trees and power lines

✅ 130,000+ customers impacted; some outages may last 1-2 weeks

✅ Restoration slowed by debris, COVID-19 protocols, and new storms

 

Some middle Tennessee residents could be without electricity for up to two weeks after strong thunderstorms swept through the area Sunday, knocking out power for more than 100,000 customers, a scale comparable to Los Angeles outages after a station fire.

"Straight line winds as high as 60-80 miles per hour knocked down trees, power lines and power polls, interrupting power to 130,000 of our 400,000+ customers," Nashville Electric said in a statement Monday. The utility said the outage was one of the largest on record, though Carolina power outages recently left a quarter-million without power as well.

"Restoration times will depend on individual circumstances. In some cases, power could be out for a week or two" as challenges related to coronavirus and the need for utilities adapt to climate change complicated crews' responses and more storms were expected, the statement said. "This is unfortunate timing on the heels of a tornado and as we deal with battling COVID-19."

Metropolitan Nashville and Davidson County Mayor John Cooper also noted that the power outages were especially inconvenient, a challenge similar to Hong Kong families without power during Typhoon Mangkhut, as people were largely staying home to slow the spread of coronavirus. He also pointed out that the storms came on the two month anniversary of the Nashville tornado that left at least two dozen people dead.

"Crews are working diligently to restore power and clear any debris in neighborhoods," Cooper said.

He said that no fatalities were reported in the county but sent condolences to Spring Hill, whose police department reported that firefighter Mitchell Earwood died during the storm due to "a tragic weather-related incident" while at his home and off duty. He had served with the fire department for 10 years.

The Metro Nashville Department of Public Works said it received reports of more than 80 downed trees in Davidson County.

Officials also warn that copper theft can be deadly when electrical infrastructure is damaged after storms.

The National Weather Service Nashville said a 72 mph wind gust was measured at Nashville International Airport — the fifth fastest on record.

The weather service warned that strong storms with winds of up to 75 mph, large hail, record-long lightning bolt potential seen in the U.S., and isolated flash flooding could hit middle Tennessee again Monday afternoon and night.

"Treat Severe Thunderstorm Warnings the same way you would Tornado Warnings and review storm safety tips before you JUST TAKE SHELTER," the NWS instructs. "70 mph is 70 mph whether it's spinning around in a circle or blowing in a straight line."

 

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"It's freakishly cold": Deep freeze slams American energy sector

Texas Deep Freeze Energy Crisis strains grids as polar vortex triggers rolling blackouts, record natural gas and electricity prices, refinery shutdowns, WTI gains, and scarcity pricing across Texas, Oklahoma, SPP, and Mexico.

 

Key Points

A polar vortex slamming Texas energy: outages, record power prices, gas spikes, and reduced oil output.

✅ Record gas trades near $500/mmBtu; power hits $6,000/MWh

✅ WTI tops $60 as Texas shuts in ~1 million bpd

✅ Rolling blackouts across SPP; ERCOT scarcity pricing

 

A deep freeze is roiling electricity markets in more than a dozen U.S. states, leading to record-setting prices for electricity and natural gas, knocking oil production off line and shutting down some of North America’s largest refineries.

“It’s freakishly cold,” said Eric Fell, a senior natural gas analyst with Wood Mackenzie in Houston, where record cold temperatures and snow have blanketed the city, caused rolling power outages, shut down refineries and sent both natural gas and electricity prices soaring.

'It’s freakishly cold': Deep freeze slams North American energy sector

The polar vortex has led to freezing temperatures in every county in Texas, the largest energy-producing state in the U.S., and caused massive disruptions across the North American energy complex, triggering Texas power outages as far south as Mexico.

As the plunge in temperatures forced oil companies to shut in an estimated one million barrels of oil production in Texas on Monday, the West Texas Intermediate benchmark price rose above the US$60 per barrel threshold for the first time in a year to settle up 1 per cent, or US65 cents, at US$60.12 per barrel.

President Joe Biden declared an emergency on Monday, unlocking federal assistance to Texas.

People carry groceries from a local gas station on Monday in Austin, Texas. Winter storm Uri has brought historic cold weather to Texas, causing traffic delays and power outages. 

Frozen wind farms are just a small piece of Texas’s power grid woes right now.

Fell said regional natural gas and electricity prices in Oklahoma and Texas broke U.S. records over the weekend.

On Friday, Oklahoma gas transmission prices averaged US$350 per million British thermal units and Fell said one trade went as high as US$600 per mmBtu. In parts of the Texas panhandle and elsewhere, prices jumped to US$200, “all of which individually would have been new records,” Fell said, noting the previous record was US$160.

On Monday, natural gas for physical delivery in the U.S. was trading for as much as US$500 per mmBtu as demand for the heating and power plant fuel soared.  Spot gas has been trading for hundreds of dollars across the central U.S. since Thursday with a surge in heating demand triggering widespread blackouts and sending electricity prices soaring. The fuel normally trades in the region for less than US$3 per mmBtu.

Similarly, electricity prices in Texas surged to US$6,000 per megawatt hour on Monday, as U.S. power companies grapple with supply-chain constraints, which Fell said is “100 times the normal price.”

“You’re seeing scarcity pricing in power and gas. The only thing that’s different this time is it’s staying there – it’s not just an hour or two hours, it’s the whole day,” he said.

The blast of Arctic cold, which has blanketed Canada and much of the U.S., has created a massive draw on natural gas supplies, used both for home heating and industrial uses like electricity generation.

Little Rock, Ark.-based Southwest Power Pool, which coordinates electricity distribution for parts of 14 states including Oklahoma Kansas, Nebraska and even as far north as North Dakota, announced rolling blackouts across its network on Monday as a result of the power outages.

“In our history as a grid operator, this is an unprecedented event and marks the first time SPP has ever had to call for controlled interruptions of service” SPP’s executive vice-president and chief operating officer Lanny Nickell said in a release, adding the move was “a last resort” to “prevent circumstances from getting worse.”

The frigid conditions have led to a surge in natural gas prices across the continent, including in Alberta where the AECO benchmark price jumped to a seven-year high of $6.36 per thousand cubic feet last week, a price not seen since 2014.

Energy systems in Texas and Oklahoma, which are major energy exporters to other U.S. states, are built to withstand severe heat – not extreme cold. The result is a disruption to the gas supply at exactly the time the U.S. energy system is demanding those molecules.

“Given how far south it’s gone into Texas, this is where you have a lot of gas production that isn’t properly winterized,” said Jeremy McCrea, an analyst with Raymond James covering the natural gas industry.

 

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Energy freedom and solar’s strategy for the South

South Carolina Energy Freedom Act lifts net metering caps, reforms PURPA, and overhauls utility planning to boost solar competition, grid resiliency, and consumer choice across the Southeast amid Santee Cooper debt and utility monopoly pressure.

 

Key Points

A bipartisan reform lifting net metering caps, modernizing PURPA, and updating utility planning to expand solar.

✅ Lifts net metering cap to accelerate rooftop and community solar.

✅ Reforms PURPA contracts to enable fair pricing and transparent procurement.

✅ Modernizes utility IRP and opens markets to competition and customer choice.

 

The South Carolina House has approved the latest version of the Energy Freedom Act, a bill that overhauls the state’s electricity policies, including lifting the net metering caps and reforming PURPA implementation and utility planning processes in a way that advocates say levels the playing field for solar at all scales.

With Governor Henry McMaster (R) expected to sign the bill shortly, this is a major coup not just for solar in the state, but the region. This is particularly notable given the struggle that solar has had just to gain footing in many parts of the South, which is dominated by powerful utility monopolies and conservative politicians.

Two days ago when the bill passed the Senate we covered the details of the policy, but today we’re going to take a look at the politics of getting the Energy Freedom Act passed, and what this means for other Southern states and “red” states.

 

Opportunity amid crisis

The first thing to note about this bill is that it comes within a crisis in South Carolina’s electricity sector. This was the first legislative session following state-run utility Santee Cooper’s formal abandonment of a project to build two new reactors at the Virgil C. Sumner nuclear power plant, on which work stopped nearly two years ago.

Santee Cooper still holds $4 billion in construction debt related to the nuclear projects. According to an article in The State, this is costing its customers $5 per month toward the current debt, and this will rise to $13 per month for the next 40 years.

Such costs are particularly unwelcome in South Carolina, which has the highest annual electricity bills in the nation due to a combination of very high electricity usage driven by widespread air conditioning during the hot summers and higher prices per unit of power than other Southern states.

Following this fiasco, Santee Cooper’s CEO has stepped down, and the state government is currently considering selling the utility to a private entity. According to Maggie Clark, southeast state affairs senior manager for Solar Energy Industries Association, all of this set the stage for the bill that passed today.

“South Carolina is in a really ripe state for transformational energy policy in the wake of the VC Sumner nuclear plant cancellation,” Clark told pv magazine. “They were looking for a way forward, and I think this bill really provided them something to champion.”

 

Renewable energy policy for red states

This major win for solar policy comes in a state where the Republican Party holds majorities in both houses of the state’s legislature and sends bills to a Republican governor.

Broadly speaking, Republican politicians seldom show the level of interest in supporting renewable energy that Democrats do either at the state or national level, and show even less inclination to act to address greenhouse gas emissions. In fact, the 100% clean energy mandates that are being implemented in four states and Washington D.C. have only passed with Democratic trifectas, in other words with Republicans controlling neither house of the state legislature nor the governor’s office. (Note: This does not apply to Puerto Rico, which has a different party structure to the rest of the United States)

However, South Carolina shows there are Republican politicians who will support pro-renewable energy policies, and circumstances under which Republican majorities will vote for legislation that aids the adoption of solar. And these specific circumstances speak to both different priorities and ideological differences between the two parties.

SEIA’s Maggie Clark emphasizes that the Energy Freedom Act was about reforming market rules. “This was a way to provide a program that did not provide subsidies or incentives in any way, but to really open the market to competition,” explains Clark. “I think that appealing to conservatives in the South about energy independence and resiliency and ultimately cost savings is the winning message on this issue.”

Such messaging in South Carolina is not an accident. Not only has such messaging been successful in the past, but coalition partner Vote Solar paid for polling to find what messages resounded with the state’s voters, and found that choice and competition were likely to resound.

And all of this happened in the context of what Clark describes as an “extremely well-resourced effort”, with SEIA in particular dedicating national attention and resources to the state – as part of an effort by President and CEO Abigail Hopper to shift attention more towards state-level policy. Maggie Clark is one of two new regional staff who Hopper has hired, and SEIA’s first staff member focused on Southern states.

“Absolutely the South is a prioritized region,” Hopper told pv magazine, noting that three Southern states – the Carolinas and Florida – are among the 12 states that the organization has identified to work on this year. “It became clear that as a region it needed more attention.”

SEIA is not expecting fly-by-night victories, and Hopper attributes the success in South Carolina not only to a broad coalition, but to years of work on the ground in the state.

Nor is SEIA the only organization to grow its presence in the region. Vote Solar now has two full time staff located in the South, whereas two years ago its sole staff member dedicated to the region was located in Washington D.C.

 

Ideology versus reality in the South

The Energy Freedom Act aligns with conservative ideas about small government and competition, but the American right is not monolithic, nor do political ideas and actions always line up neatly, as other successful policies in other states in the region show

By far the largest deployment of renewable energy in the nation has been in Texas, aside from in California which leads overall. Here a system of renewable energy zones in the sparsely populated but windy and sunny west, north and center of the state feed cities to the east with power from wind and more recently solar.

This was enabled by transmission lines whose cost was socialized among the state’s ratepayers – a tremendous irony given that the state’s politicians would be some of the last in the nation to want to be identified with socializing anything.

Another example is Louisiana, which saw a healthy residential solar market over the last decade due to a 50% state rebate. The policy has expired, but when operating it was exactly the sort of outright subsidy that right-wing media and politicians rail against.

Of course there is also North Carolina, which built the 2nd-largest solar market in the nation on the back of successful state-level implementation of PURPA, a federal law. Finally there is Virginia, where large-scale projects are booming following a 2018 law that found that 5 GW of solar is in the public interest.

Furthermore, while conservatives continually expound the virtues of the free market, the reality of the electricity sector in the “deep red” South is anything but that. The region missed out on the wave of deregulation in the 1990s, and remains dominated by monopoly utilities regulated by the state: a union of big business and big government where competition is non-existent.

This has also meant that the solar which has been deployed in the South is mostly not the kind of rooftop solar that many think of as embodying energy independence, but rather large-scale solar built in farms, fields and forests.

 

Where to from here?

With such contradictions between stated ideology and practice, it is less clear what makes for successful renewable energy policy in the South. However, opening up markets appears to be working not only in South Carolina, but also in Florida, where third-party solar companies are making inroads after the state’s voters rejected a well-funded and duplicitous utilities’ campaign to kill distributed solar.

SEIA’s Hopper says that she is “aggressively optimistic” about solar in Florida. As utilities have dominated large-solar deployment in the state, even as the state declined federal solar incentives earlier this year, she says that she sees opening up the state’s booming utility-scale solar market to competition as a priority.

Some parts of the region may be harder than others, and it is notable that SEIA has not had as much to say about Alabama, Mississippi or Louisiana, which are largely controlled by utility giants Southern Company and Entergy, or the area under the thumb of the Tennessee Valley Authority, one of the most anti-solar entities in the power sector.

Abby Hopper says ultimately, demand from customers – both individuals and corporations – is the key to transforming policy. “You replicate these victories by customer demand,” Hopper told pv magazine. “That combination of voices from the customer are what’s going to drive change.”

 

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UK Emergency energy plan not going ahead

National Grid Demand Flexibility Service helps stabilise the UK grid during tight supply, offering discounts for smart meter users who shift peak-time electricity use, reducing power cut risks amid low wind and import constraints.

 

Key Points

A National Grid scheme paying smart homes to cut peak-time use, easing supply pressure and avoiding power cuts.

✅ Pays volunteers with smart meters to reduce peak demand.

✅ Credits discounts for shifting use to off-peak windows.

✅ Manages tight margins and helps avert UK power cuts.

 

National Grid has decided not to activate a scheme on Tuesday to help the UK avoid power cuts after being poised to do so.

It would have seen some households offered discounts on their electricity bills if they cut peak-time use.

National Grid had been ready to trigger the scheme following a warning that Britain's energy supplies were looking tighter than usual this week.

However, it decided that the measure was not required.

Alerts are sent out automatically when expected supplies drop below a certain level. But they do not mean that blackouts are likely, or that the situation is critical.

National Grid said it was "confident" it would be able to manage margins and "demand is not at risk".

Discounts
Earlier on Monday, the grid operator said it was considering whether to pay households across Britain to reduce their energy use to help out on Tuesday evening.

Under the Demand Flexibility Service (DFS), announced earlier this month, customers that have signed up could get discounts on their bills if they use less electricity in a given window of time.

That could mean delaying the use of a tumble-dryer or washing machine, or cooking dinner in the microwave rather than the oven.

Major suppliers such as Octopus and British Gas are taking part, but only customers that have an electricity smart meter and that have volunteered are eligible. About 14 million UK homes have an electricity smart meter.

The DFS has already been tested twice but has not yet run live.

Octopus, the supplier with the most customers signed up, said that some households had earned more than £4 during the hour-long tests, while the average saving was "well over £1".

It came after forecasts projected a large drop in the amount of power that Britain will be able to import from French nuclear power stations on Monday and Tuesday evenings.

The lack of strong winds to power turbines has also affected how much power can be generated within the UK, and efforts to fast-track grid connections aim to ease constraints.

Such warnings are not unusual - around 12 have been issued and cancelled without issue in the last six years, and other regions such as Canada are seeing grids strained by harsh weather as well.

However, they have become more common this year due to the energy crisis, and the most recent notice was sent out last week.

The situation means that the UK will have to import electricity from other sources on Monday and Tuesday evening.

Supplies are also expected be tight in France, forecasters say.

France has been facing months of problems with its nuclear power plants, which generate around three-quarters of the country's electricity.

More than half of the nuclear reactors run by state energy company EDF have closed due to maintenance problems and technical issues.

It has added to a massive energy crisis in Europe which is facing a winter without gas supplies from Russia.

 

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TTC Bans Lithium-Ion-Powered E-Bikes and Scooters During Winter Months for Safety

TTC Winter E-Bike and E-Scooter Ban addresses lithium-ion battery safety, mitigating fire risk on Toronto public transit during cold weather across buses, subways, and streetcars, while balancing micro-mobility access, infrastructure gaps, and evolving regulations.

 

Key Points

A seasonal TTC policy limiting lithium-ion e-bikes and scooters on transit in winter to cut battery fire risk.

✅ Targets lithium-ion fire hazards in confined transit spaces

✅ Applies Nov-Mar across buses, subways, and streetcars

✅ Sparks debate on equity, accessibility, and policy alternatives

 

The Toronto Transit Commission (TTC) Board recently voted to implement a ban on lithium-ion-powered electric bikes (e-bikes) and electric scooters during the winter months, a decision that reflects growing safety concerns. This new policy has generated significant debate within the city, particularly regarding the role of these transportation modes in the lives of Torontonians, and the potential risks posed by the technology during cold weather.

A Growing Safety Concern

The move to ban lithium-ion-powered e-bikes and scooters from TTC services during the winter months stems from increasing safety concerns related to battery fires. Lithium-ion batteries, commonly used in e-bikes and scooters, are known to pose a fire risk, especially in colder temperatures, and as systems like Metro Vancouver's battery-electric buses expand, robust safety practices are paramount. In recent years, Toronto has experienced several high-profile incidents involving fires caused by these batteries. In some cases, these fires have occurred on TTC property, including on buses and subway cars, raising alarm among transit officials.

The TTC Board's decision was largely driven by the fear that the cold temperatures during winter months could make lithium-ion batteries more prone to malfunction, leading to potential fires. These batteries are particularly vulnerable to damage when exposed to low temperatures, which can cause them to overheat or fail during charging or use. Since public transit systems are densely populated and rely on close quarters, the risk of a battery fire in a confined space such as a bus or subway is considered too high.

The New Ban

The new rule, which is expected to take effect in the coming months, will prohibit e-bikes and scooters powered by lithium-ion batteries from being brought onto TTC vehicles, including buses, streetcars, and subway trains, even as the agency rolls out battery electric buses across its fleet, during the winter months. While the TTC had previously allowed passengers to bring these devices on board, it had issued warnings regarding their safety. The policy change reflects a more cautious approach to mitigating risk in light of growing concerns.

The winter months, typically from November to March, are when these batteries are at their most vulnerable. In addition to environmental factors, the challenges posed by winter weather—such as snow, ice, and the damp conditions—can exacerbate the potential for damage to these devices. The TTC Board hopes the new ban will prevent further incidents and keep transit riders safe.

Pushback and Debate

Not everyone agrees with the TTC Board's decision. Some residents and advocacy groups have expressed concern that this ban unfairly targets individuals who rely on e-bikes and scooters as an affordable and sustainable mode of transportation, while international examples like Paris's e-scooter vote illustrate how contentious rental devices can be elsewhere, adding fuel to the debate. E-bikes, in particular, have become a popular choice among commuters who want an eco-friendly alternative to driving, especially in a city like Toronto, where traffic congestion can be severe.

Advocates argue that instead of an outright ban, the TTC should invest in safer infrastructure, such as designated storage areas for e-bikes and scooters, or offer guidelines on how to safely store and transport these devices during winter, and, in assessing climate impacts, consider Canada's electricity mix alongside local safety measures. They also point out that other forms of electric transportation, such as electric wheelchairs and mobility scooters, are not subject to the same restrictions, raising questions about the fairness of the new policy.

In response to these concerns, the TTC has assured the public that it remains committed to finding alternative solutions that balance safety with accessibility. Transit officials have stated that they will continue to monitor the situation and consider adjustments to the policy if necessary.

Broader Implications for Transportation in Toronto

The TTC’s decision to ban lithium-ion-powered e-bikes and scooters is part of a broader conversation about the future of transportation in urban centers like Toronto. The rise of electric micro-mobility devices has been seen as a step toward reducing carbon emissions and addressing the city’s growing congestion issues, aligning with Canada's EV goals that push for widespread adoption. However, as more people turn to e-bikes and scooters for daily commuting, concerns about safety and infrastructure have become more pronounced.

The city of Toronto has yet to roll out comprehensive regulations for electric scooters and bikes, and this issue is further complicated by the ongoing push for sustainable urban mobility and pilots like driverless electric shuttles that test new models. While transit authorities grapple with safety risks, the public is increasingly looking for ways to integrate these devices into a broader, more holistic transportation system that prioritizes both convenience and safety.

The TTC’s decision to ban lithium-ion-powered e-bikes and scooters during the winter months is a necessary step to address growing safety concerns in Toronto's public transit system. Although the decision has been met with some resistance, it highlights the ongoing challenges in managing the growing use of electric transportation in urban environments, where initiatives like TTC's electric bus fleet offer lessons on scaling safely. With winter weather exacerbating the risks associated with lithium-ion batteries, the policy seeks to reduce the chances of fires and ensure the safety of all transit users. As the city moves forward, it will need to find ways to balance innovation with public safety to create a more sustainable and safe urban transportation network.

 

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Site C mega dam billions over budget but will go ahead: B.C. premier

Site C Dam Update outlines hydroelectric budget overruns, geotechnical risks, COVID-19 construction delays, BC Hydro timelines, cancellation costs, and First Nations treaty rights concerns affecting renewable energy, ratepayers, and Peace Valley impacts.

 

Key Points

Overview of Site C costs, delays, geotechnical risks, and concerns shaping BC Hydro hydroelectric plans.

✅ Cost to cancel estimated at least $10B

✅ Final budget now about $16B; completion pushed to 2025

✅ COVID-19 and geotechnical risks drove delays and redesigns

 

The cost to cancel a massive B.C. energy development project would be at least $10 billion, provincial officials revealed in an update on the future of Site C.

Thus the project will go ahead, Premier John Horgan and Energy Minister Bruce Ralston announced Friday, but with an increased budget and timeline.

Horgan and Ralston spoke at a news conference in Victoria about the findings of a status report into the hydroelectric dam project in northeastern B.C.

Peter Milburn, former deputy finance minister, finished the report earlier this year, but the findings were not initially made public.

$10B more than initial estimate
On Friday, it was announced that the project's final price tag has once again ballooned by billions of dollars.

Site C was initially estimated to cost $6 billion, and the first approved budget, back in 2014, was $8.775 billion. The budget increased to $10.8 billion in 2018.

But the latest update suggests it will cost about $16 billion in total.

And, in addition to a higher budget, the date of completion has been pushed back to 2025 – a year later than the initial target.

Among the reasons for the revisions, according to the province, is the impact of COVID-19. While officials did not get into details, there have been multiple cases of the disease publicly reported at Site C work camps.

Additionally, fewer workers were permitted on site to allow for physical distancing, and construction was scaled back.

Also cited as a cause for the increased cost were "unforeseeable" geotechnical issues at the site, which required installation of an enhanced drainage system.

Speaking to reporters Friday, the premier deflected blame.

“Managing the contract the BC Liberals signed has been difficult because it transfers the vast majority of the geotechnical risk back to BC Hydro,” said Horgan.

Former Premier Christy Clark vowed to get the project to a point of no return, and in 2017 the NDP decided to continue with the project because of the cost of cancelling it.

The Liberals now say the clean energy project should continue, but deny they shoulder any of the blame.

“Someone has to take ownership – and it's got to be government in power,” said MLA Tom Shypitka, BC Liberal critic for energy. 

There are also several reviews underway, including how to change contractor schedules to reflect delays and potential cost impacts from COVID-19, and how to keep the work environment safe during the pandemic.

A total of 17 recommendations were made in Milburn's report, all of which have been accepted by BC Hydro and the province.

Among these recommendations is a restructured project assurance board with a focus on skill-specific membership and autonomy from BC Hydro.

Cost of cancelling the project
The report looked into whether it would be better to scrap the project altogether, but the cost of cancelling it at this point would be at least $10 billion, Horgan and Ralston said.

That cost does not include replacing lost energy and capacity that Site C's electricity would have provided, according to the province.

A study conducted in 2019 suggested B.C. will need to double its electricity production by 2055, especially as drought conditions are forcing BC Hydro to adapt power generation. 

The NDP government says the cost to ratepayers of cancelling the project would be $216 a year for 10 years. Going forward will still have a cost, but instead, that payment will be split over more than 70 years, the estimated lifetime of Site C, meaning BC Hydro customers will pay about $36 more a year once the site goes live, the NDP says, even as cryptocurrency mining raises questions about electricity use.

“We will not put jobs at risk; we will not shock people's hydro bills,” said Horgan.

"Our government has taken this situation very seriously, and with the advice of independent experts guiding us, I am confident in the path forward for Site C," Ralston said.

"B.C. needs more renewable energy to bridge the electricity gap with Alberta and electrify our economy, transition away from fossil fuels and meet our climate targets."

The minister said the site is currently employing about 4,500 people.

Arguments against Site C
While there are benefits to the project, there has also been vocal opposition.

In a statement released following the announcement that the project would go ahead, the Union of B.C. Indian Chiefs suggested the decision violated the premier's commitment to a UN declaration.

"The Site C dam has never had the free, prior and informed consent of all impacted First Nations, and proceeding with the project is a clear infringement of the treaty rights of the West Moberly First Nation," the UBCIC's secretary treasurer said.

Kukpi7 Judy Wilson said the UN's Committee on the Elimination of Racial Discrimination has called for a suspension of the project until it has the consent of Indigenous peoples.

"B.C. did not even attempt to engage First Nations about the safety risks associated with the stability of the dam in the recent reviews," she said.

"It is unfathomable that such clear human rights violations are somehow OK by this government."

Chief Roland Wilson of the West Moberly First Nation said he was disappointed the province didn’t consult his and other communities prior to making this announcement. In an interview with CTV News, he said he was offered an opportunity to join a call this morning.

“We signed a treaty in 1814,” he said. “Our treaty rights are being trampled on.”

Wilson said his nation has ongoing concerns about safety issues and the plans to flood the Peace Valley. West Moberly is in a bitter court battle with the province.

At the BC Legislature, Green Party Leader Sonia Furstenau slammed the government’s decision.

“It is an astonishingly terrible business case in any circumstances, but considering that we lose the agricultural land, the biodiversity, the traditional treaty lands of Treaty 8, this is particularly catastrophic,” she told reporters.

She went on to accuse the NDP government of keeping bad news from the public. She alleged the NDP knew of serious problems before last fall’s unscheduled election, but chose not to release information.

Prior to the decision former BC Hydro president and a former federal fisheries minister are among those who added their voices to calls to halt work on the dam.

They were among 18 Canadians who wrote an open letter to the province calling for an independent team of experts to explore geotechnical problems at the site.

In the letter, signed in September, the group that also included Grand Chief Stewart Phillip of the UBCIC wrote that going ahead would be a "costly and potentially catastrophic mistake." 

According to Friday's update, independent experts have confirmed the site is safe, though improvements have been recommended to enhance oversight and risk management.

Earlier in the project, a B.C. First Nation claimed it was a $1-billion treaty violation, though an agreement was reached in 2020 after the province promised to improve land management and restore traditional place names in areas of cultural significance.

The Prophet River First Nation will also receive payments while the site is operating, and some Crown land will be transferred to the nation as part of the agreement. 

Additionally, residents of a tiny community not far from the site is suing the province over two slow-moving landslides they claim caused property values to plummet.

Nearly three dozen residents of Old Fort are behind the allegations of negligence and breach of their charter right to security of person. The claim is tied to two landslides, in 2018 and 2020, that the group alleges were caused by ground destabilization from construction related to Site C.

One of the landslides damaged the only road into the community, leaving residents under evacuation for a month.

 

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