New security introduced to counter rising theft

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Safeguard Security Holdings, Inc., a provider of corporate, industrial and residential security solutions, announces today that its subsidiary, SYSTEMSgroup Protective Services, implements new security technology services with its largest utility client.

R. Michael Lagow, CEO for Safeguard, stated, “We work closely with our client to mitigate certain types of theft. Due to the rising cost in copper, certain facilities are at significant security risks. Our team has designed a security technology solution to help reduce the threat and diminish its effects ongoing power utility operations. We are pleased to announce implementation of this program as it will significantly shrink losses in their remote facilities located throughout Texas.”

Shelly Anderson, Vice President, Operations, added, “We continue to expand our services in all areas including investigations, background checks, security staffing and security technology. Last quarter, we invoiced approximately $400,000 in additional security services outside of our base contract. Our services continue to expand with our client’s needs on an ongoing basis.”

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Renewable power surpasses fossil fuels for first time in Europe

EU Renewable Power Overtakes Fossil Fuels, reflecting a greener energy mix as wind, solar, and hydro expand, cutting CO2 emissions and curbing coal while negative prices rise amid pandemic-driven demand drops.

 

Key Points

A milestone as renewables surpass fossil power in the EU, driven by wind, solar, hydro growth and pandemic demand.

✅ 40% renewables vs 34% fossil in H1 across 27 EU states

✅ Wind, solar, hydro rose; coal generation fell 32% year-on-year

✅ Lower demand, carbon prices, grid priority boosted clean output

 

Renewable power for the first time contributed a bigger share in the European generation mix than fossil fuels, as described in Europe's green surge as the fallout from the pandemic cut energy demand.

About 40 percent of the electricity in the first half in the 27 EU countries came from renewable sources, exceeding the global renewables share reported elsewhere, compared with 34 percent from plants burning fossil fuels, according to environmental group Ember in London. As a result, carbon dioxide emissions from the power sector fell 23 percent.

The rise is significant and encouraging for law makers as Europe prepares to spend billions of euros to recover from the virus, with wind power investments underscoring the momentum, and set the bloc on track to neutralize its carbon footprint by the middle of the century.

“This marks a symbolic moment ​in the transition of Europe’s electricity sector,” said Dave Jones, an electricity analyst at Ember. “For countries like Poland and Czech Republic grappling with how to get off coal, there is now a clear way out.”

While power demand slumped, output from wind and solar farms increased, reflecting global wind and solar gains, because more plants came online in breezy and sunny weather. At the same time, wet conditions boosted hydro power in Iberia and the Nordic markets.

Those conditions helped renewables become a rare bright spot throughout the economic tumult this year. In many areas, renewable sources of electricity have priority to the grid, meaning they could keep growing even as demand shrank and other power plants were turned off.

Electricity demand in the EU fell 7 percent overall. Fossil-fuel power generation plunged 18 percent in the first half compared with a year earlier. Renewable generation grew by 11 percent, according to Ember.

Coal was by far the biggest loser in 2020. It’s one of the most-polluting sources of power and its share is slumping in Europe as the price of carbon increases, with renewables surpassing coal in the US illustrating the broader shift, and governments move to cut emissions. Power from coal fell 32 percent across the EU.

Despite the economics, the decision to shut off coal for good will come down to political agreements between producers and governments, while reducing reliance on Russian energy reshapes policy debates.

One consequence of the jump in renewables is that negative prices have increased, as solar is reshaping prices in Northern Europe in similar ways. On particularly windy or sunny days when there isn’t much demand, the grid can be flooded with power. That’s leading wind farms to be shut off and customers to be paid to consume electricity.

 

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COVID-19: Daily electricity demand dips 15% globally, says report

COVID-19 Impact on Electricity Demand, per IEA data, shows 15% global load drop from lockdowns, with residential use up, industrial and service sectors down; fossil fuel generation fell as renewables and photovoltaics gained share.

 

Key Points

An overview of how lockdowns cut global power demand, boosted residential use, and increased the renewable share.

✅ IEA review shows at least 15% dip in daily global electricity load

✅ Lockdowns cut commercial and industrial demand; homes used more

✅ Fossil fuels fell as renewables and PV generation gained share

 

The daily demand for electricity dipped at least 15 per cent across the globe, according to Global Energy Review 2020: The impacts of the COVID-19 crisis on global energy demand and CO2 emissions, a report published by the International Energy Agency (IEA) in April 2020, even as global power demand surged above pre-pandemic levels.

The report collated data from 30 countries, including India and China, that showed partial and full lockdown measures adopted by them were responsible for this decrease.

Full lockdowns in countries — including France, Italy, India, Spain, the United Kingdom where daily demand fell about 10% and the midwest region of the United States (US) — reduced this demand for electricity.

 

Reduction in electricity demand after lockdown measures (weather corrected)


 

Source: Global Energy Review 2020: The impacts of the COVID-19 crisis on global energy demand and CO2 emissions, IEA


Drivers of the fall

There was, however, a spike in residential demand for electricity as a result of people staying and working from home. This increase in residential demand, though, was not enough to compensate for reduced demand from industrial and commercial operations.

The extent of reduction depended not only on the duration and stringency of the lockdown, but also on the nature of the economy of the countries — predominantly service- or industry-based — the IEA report said.

A higher decline in electricity demand was noted in countries where the service sector — including retail, hospitality, education, tourism — was dominant, compared to countries that had industrial economies.

The US, for example — where industry forms only 20 per cent of the economy — saw larger reductions in electricity demand, compared to China, where power demand dropped as the industry accounts for more than 60 per cent of the economy.

Italy — the worst-affected country from COVID-19 — saw a decline greater than 25 per cent when compared to figures from last year, even as power demand held firm in parts of Europe during later lockdowns.

The report said the shutting down of the hospitality and tourism sectors in the country — major components of the Italian economy — were said to have had a higher impact, than any other factor, for this fall.

 

Reduced fossil fuel dependency

Almost all of the reduction in demand was reportedly because of the shutting down of fossil fuel-based power generation, according to the report. Instead, the share of electricity supply from renewables in the entire portfolio of energy sources, increased during the pandemic, reflecting low-carbon electricity lessons observed during COVID-19.

This was due to a natural increase in wind and photovoltaic power generation compared to 2019 along with a drop in overall electricity demand that forced electricity producers from non-renewable sources to decrease their supplies, before surging electricity demand began to strain power systems worldwide.

The Power System Operation Corporation of India also reported that electricity production from coal — India’s primary source of electricity — fell by 32.2 per cent to 1.91 billion units (kilowatt-hours) per day, in line with India's electricity demand decline reported during the pandemic, compared to the 2019 levels.

 

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Electrifying Manitoba: How hydro power 'absolutely revolutionized' the province

Manitoba Electrification History charts arc lights, hydroelectric dams, Winnipeg utilities, transmission lines, rural electrification, and Manitoba Hydro to today's wind, solar, and EV transition across the provincial power grid, driving modernization and reliability.

 

Key Points

Manitoba's power evolution from arc lights to hydro and rural electrification, advancing wind and solar on a modern grid.

✅ 1873 Winnipeg arc light predates Edison and Bell.

✅ 1919 Act built transmission lines, rural electrification.

✅ Hydroelectric dams reshaped lands and affected First Nations.

 

The first electric light in Manitoba was turned on in Winnipeg in 1873, but it was a century ago this year that the switch was flipped on a decision that would bring power to the fingertips of people across the province.

On March 12, 1873, Robert Davis — who owned the Davis House hotel on Main Street, about a block from Portage Avenue — used an electric arc light to illuminate the front of his building, according to A History of Electric Power in Manitoba, published by Manitoba Hydro.

That type of light used an an inert gas in a glass container to create an electric arc between two metal electrodes.

"The lamp in front of the Davis Hotel is quite an institution," a Manitoba Free Press report from the day said. "It looks well and guides the weary traveller to a haven of rest, billiards and hot drinks."

A ladder crew from the Winnipeg Electric Street Railway Company working on an electric trolley line in 1905. (I.F. Allen/Manitoba Hydro archives)

The event took place six years before Thomas Edison's first incandescent lamp was invented and three years before the first complete sentence was spoken over the telephone by Alexander Graham Bell.

"Electrification probably had a bigger influence on the lives of Manitobans than virtually anything else," said Gordon Goldsborough, head researcher with the Manitoba Historical Society.

"It's one of the most significant changes in the lives of Manitobans ever, because basically it transformed so many aspects of their lives. It wasn't just one thing — it touched pretty much every aspect of life."

 

Winnipeg gets its 1st street lamps

In the pioneer days of lighting and street railway transportation in Winnipeg, multiple companies formed in an effort to take advantage of the new utility: Winnipeg Gas Company, Winnipeg General Power Company, Manitoba Electric and Gas Light Company, and The North West Electric Light and Power Company.

In October 1882, the first four street lamps, using electric arc lights, were turned on along Main Street from Broadway to the CPR crossing over the Assiniboine River.

They were installed privately by P.V. Carroll, who came from New York to establish the Manitoba Electric Light & Power Company and try to win a contract for illuminating the rest of the city's streets.

He didn't get it. Newspaper reports from the time noted many outages and other problems and general disappointment in the quality of the light.

Instead, the North West Electric Light and Power Company won that contract and in June 1883 it lit up the streets.

Workers erect a wooden hydro pole beside the Belmont Hotel in 1936. Belmont is a small community southeast of Brandon. (Manitoba Hydro archives)

Over the years, other companies would bring power to the city as it became more reliable, including the Winnipeg Electric Street Railway Company (WERCo), which built the streetcar system and sold electric heat, light and power.

But it was the Brandon Electric Light Company that first tapped into a new source of power — hydro. In 1900, a dam was built across the Minnedosa River (now known as the Little Saskatchewan River) in western Manitoba, and the province's first hydroelectric generating station was created.

The first transmission line was also built, connecting the station with Brandon.

By 1906, WERCo had taken over the Winnipeg General Power Company and the Manitoba Electric and Gas Light Company, and changed its name to the Winnipeg Electric Railway Company. Later, it became the Winnipeg Electric Company, or WECo.

It also took a cue from Brandon, building a hydroelectric plant to provide more power. The Pinawa dam site operated until 1951 and is now a provincial park.

The Minnedosa River plant was the first hydroelectric generating station in Manitoba. (Manitoba Hydro archives)

The City of Winnipeg Hydroelectric System was also formed in 1906 as a public utility to combat the growing power monopoly held by WECo, and to get cheaper power. The city had been buying its supply from the private company "and the City of Winnipeg didn't quite like that price," said Bruce Owen, spokesman for Manitoba Hydro.

So the city funded and built its own dam and generating station site on the Winnipeg River in Pointe du Bois — about 125 kilometres northeast of Winnipeg — which is still in operation today.

"All of a sudden, not only did we have street lights … businesses had lights, power was supplied to homes, people no longer had to cook on wood stoves or walk around with kerosene lanterns. This city took off," said Owen.

"It helped industry grow in the city of Winnipeg. Within a few short years, a second plant had to be built, at Slave Falls."

 

Lighting up rural Manitoba

While the province's two biggest cities enjoyed the luxury of electricity and the conveniences it brought, the patchwork of power suppliers had also created a jumble of contracts with differing rates and terms, spurring periodic calls for a western Canadian electricity grid to improve coordination.

Meanwhile, most of rural Manitoba remained in the dark.

The Pinawa Dam was built by the Winnipeg Electric Street Railway Company in 1906 and operated until 1951. (Manitoba Hydro archives)

The Pinawa Dam site now, looking like some old Roman ruins. (Darren Bernhardt/CBC)

That began to change in 1919 when the Manitoba government passed the Electric Power Transmission Act, with the aim of supplying rural Manitoba with electrical power. The act enabled the construction of transmission lines to carry electricity from the Winnipeg River generating stations to communities all over southern Manitoba.

It also created the Manitoba Power Commission, predecessor to today's Manitoba Hydro, to purchase power from the City of Winnipeg — and later WECo — to supply to those other communities.

The first transmission line, a 97-kilometre link between Winnipeg and Portage la Prairie, opened in late 1919, and modern interprovincial projects like Manitoba-Saskatchewan power line funding continue that legacy today. The power came from Pointe du Bois to a Winnipeg converter station that still stands at the corner of Stafford Street and Scotland Avenue, then went on to Portage la Prairie.

"That's the remarkable thing that started in 1919," said Goldsborough.

Every year after that, the list of towns connected to the power grid became longer "and gradually, over the early 20th century, the province became electrified," Goldsborough said.

"You'd see these maps that would spider out across the province showing the [lines] that connected each of these communities — a precursor to ideas like macrogrids — to each other, and it was really quite remarkable."

By 1928, 33 towns were connected to the Manitoba Power Commission grid. That rose to 44 by 1930 and 140 by 1939, according to the Manitoba Historical Society.

 

Power on the farm

Still, one group who could greatly use electricity for their operations — farmers — were still using lanterns, steam and coal for light, heat and power.

"The power that came to the [nearest] town didn't extend to them," said Goldsborough.

It was during the Second World War, as manual labour was hard to come by on farms, that the Manitoba Power Commission recognized the gap in its grid.

It met with farmers to explain the benefits electricity could bring and surveyed their interest. When the war ended in 1945, the farm electrification process got underway.

Employees, their spouses, and children pose for a photo outside of Great Falls generating station in 1923. (Manitoba Hydro archives)

Farmers were taught wiring techniques and about the use of motors for farm equipment, as well as about electric appliances and other devices to ease the burden of domestic life.

"The electrification of the 1940s and '50s absolutely revolutionized rural life," said Goldsborough.

"Farmers had to provide water for all those animals and in a lot of cases [prior to electrification] they would just use a hand pump, or sometimes they'd have a windmill. But these were devices that weren't especially reliable and they weren't high capacity."

Electric motors changed everything, from pumping water to handling grain, while electric heat provided comfort to both people and animals.

Workers build a hydro transmission line tower in an undated photo from Manitoba Hydro. (Manitoba Hydro archives)

"Now you could have heat lamps for your baby chickens. They would lose a lot of chickens normally, because they would simply be too cold," Goldsborough said.

Keeping things warm was important, but so too was refrigeration. In addition to being able to store meat in summer, it was "something to prolong the life of dairy products, eggs, anything," said Manitoba Hydro's Owen.

"It's all the things we take for granted — a flick of a switch to turn the lights on instead of walking around with a lantern, being able to have maybe a bit longer day to do routine work because you have light."

Agriculture was the backbone of the province but it was limited without electricity, said Owen.

Connecting it to the grid "brought it into the modern age and truly kick-started it to make it a viable part of our economy," he said. "And we still see that today."

In 1954, when the farm electrification program ended, Manitoba was the most wired of the western provinces, with 75 per cent of farms and 100,000 customers connected.

The success of the farm electrification program, combined with the post-war boom, brought new challenges, as the existing power generation could not support the new demand.

The three largest players — City Hydro, WECo and the Manitoba Power Commission, along with the provincial government  — created the Manitoba Hydro-Electric Board in 1949 to co-ordinate generation and distribution of power.

A float in a Second World War victory parade represents a hydroelectric dam and the electricity it generates to power cities. (Manitoba Hydro archives)

More hydroelectric generating stations were built and more reorganizations took place. WECo was absorbed by the board and its assets split into separate companies — Greater Winnipeg Gas and Greater Winnipeg Transit.

Its electricity distribution properties were sold to City Hydro, which became the sole distributor in central Winnipeg. The Manitoba Power Commission became sole distributor of electricity in the suburbs and the rest of Manitoba.

 

Impacts on First Nations

Even as the lives of many people in the province were made easier by the supply of electricity, many others suffered from negative impacts in the rush of progress.

Many First Nations were displaced by hydro dams, which flooded their ancestral lands and destroyed their traditional ways of life.

"And we hear stories about the potential abuses that occurred," said Goldsborough. "So you know, there are there pluses but there are definitely minuses."

In the late 1950s, the Manitoba Power Commission continued to grow and expand its reach, this time moving into the north by buying up private utilities in The Pas and Cranberry Portage.

In 1961, the provincial government merged the commission with the Manitoba Hydro-Electric Board to create Manitoba Hydro.

In 1973, 100 years after the first light went on at that Main Street hotel, the last of the independent power utilities in the province — the Northern Manitoba Power Company Ltd. — was taken over by Hydro.

Winnipeg Hydro, previously called City Hydro, joined the fold in 2002.

Today, Manitoba Hydro operates 15 generating stations and serves 580,262 electric power customers in the province, as well as 281,990 natural gas customers.

 

New era

And now, as happened in 1919, a new era in electricity distribution is emerging as alternative sources of power — wind and solar — grow in popularity, and as communities like Fort Frances explore integrated microgrids for resilience.

"There's a bit of a clean energy shift happening," said Owen, adding use of biomass energy — energy production from plant or animal material — is also expanding.

"And there's a technological change going on and that's the electrification of vehicles. There are only really several hundred [electric vehicles] in Manitoba on the streets right now. But we know at some point, with affordability and reliability, there'll be a switch over and the gas-powered internal combustion engine will start to disappear."

'We're just a little behind here': Manitoba electric vehicle owners call for more charging stations

That means electrical utilities around the world are re-examining their capabilities, as climate change increasingly stresses grids, said Owen.

"It's coming [and we need to know], are we in a position to meet it? What will be the demands on the system on a path to a net-zero grid by 2050 nationwide?" he said.

"It may not come in my lifetime, but it is coming."

 

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Can Europe's atomic reactors bridge the gap to an emissions-free future?

EU Nuclear Reactor Life Extension focuses on energy security, carbon-free electricity, and safety as ageing reactors face gas shortages, high power prices, and regulatory approvals across the UK and EU amid winter supply risks.

 

Key Points

EU Nuclear Reactor Life Extension is the policy to keep ageing reactors safely generating affordable, low-carbon power.

✅ Extends reactor operation via inspections and component upgrades

✅ Addresses gas shortages, price volatility, and winter supply risks

✅ Requires national regulator approval and cost-benefit analysis

 

Shaken by the loss of Russian natural gas since the invasion of Ukraine, European countries are questioning whether they can extend the lives of their ageing nuclear reactors to maintain the supply of affordable, carbon-free electricity needed for net-zero across the bloc — but national regulators, companies and governments disagree on how long the atomic plants can be safely kept running.

Europe avoided large-scale blackouts last winter despite losing its largest supplier of natural gas, and as Germany temporarily extended nuclear operations to bolster stability, but industry is still grappling with high electricity prices and concerns about supply.

Given warnings from the International Energy Agency that the coming winters will be particularly at risk from a global gas shortage, governments have turned their attention to another major energy source — even as some officials argue nuclear would do little to solve the gas issue in the near term — that would exacerbate the problem if it too is disrupted: Europe’s ageing fleet of nuclear power plants.

Nuclear accounts for nearly 10% of energy consumed in the European Union, with transport, industry, heating and cooling traditionally relying on coal, oil and natural gas.

Historically nuclear has provided about a quarter of EU electricity and 15% of British power, even as Germany shut down its last three nuclear plants recently, underscoring diverging national paths.

Taken together, the UK and EU have 109 nuclear reactors running, even as Europe is losing nuclear power in several markets, most of which were built in the 1970s and 1980s and were commissioned to last about 30 years.

That means 95 of those reactors — nearly 90% of the fleet — have passed or are nearing the end of their original lifespan, igniting debates over how long they can safely continue to be granted operating extensions, with some arguing it remains a needed nuclear option for climate goals despite age-related concerns.

Regulations differ across borders, with some countries such as Germany turning its back on nuclear despite an ongoing energy crisis, but life extension discussions are usually a once-a-decade affair involving physical inspections, cost/benefit estimates for replacing major worn-out parts, legislative amendments, and approval from the national nuclear safety authority.

 

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Clorox accelerates goal of achieving 100% renewable electricity in the U.S. and Canada to 2021

Clorox Enel 70 MW VPPA accelerates renewable energy, sourcing Texas solar from the Roadrunner project to support 100% renewable electricity, Scope 2 reductions, and grid decarbonization through a virtual power purchase agreement starting in 2021.

 

Key Points

A 12-year virtual power purchase agreement for 70 MW of Texas solar to advance Clorox's 100% renewable electricity goal.

✅ 12-year contract supporting 100% renewable electricity by 2021

✅ Supplies 70 MW from Enel's Roadrunner solar project in Texas

✅ Cuts Scope 2 emissions via grid-delivered virtual PPA

 

The Clorox Company and a wholly owned subsidiary of Enel Green Power North America announced today the signing of a 12-year, 70 megawatt (MW) virtual power purchase agreement (VPPA) for the purchase of renewable energy, aligned with carbon-free electricity investments across the power sector beginning in 2021. Representing about half of Clorox's 100% renewable electricity goal in its operations in the U.S. and Canada, this agreement is expected to help Clorox accelerate achieving its goal in 2021, four years ahead of the company's original plan.

"Climate change and rising greenhouse gas emissions pose a real threat to the health of our planet and ultimately the long-term well-being of people globally. That's why we've taken action for more than 10 years to measure and reduce the carbon footprint of our operations," said Benno Dorer, chair and CEO, The Clorox Company. "Our agreement with Enel helps to expand U.S. renewable energy infrastructure, reflecting our view that companies like Clorox play an important role in addressing global climate change, as landmark policies like the U.S. climate deal further accelerate the transition. We believe this agreement will significantly contribute toward Clorox achieving our goal of 100% renewable electricity in our operations in the U.S. and Canada in 2021, four years earlier than originally planned. Our commitment to climate stewardship is an important pillar of our new IGNITE strategy and part of our overall efforts to drive Good Growth – growth that's profitable, sustainable and responsible."

The 70MW VPPA between Clorox and Enel Green Power North America for the purchase of renewable energy delivered to the electricity grid is for the second phase of Enel's Roadrunner solar project to be built in Texas, and complement global clean energy collaborations such as Canada-Germany hydrogen cooperation announced recently. Roadrunner is a 497-direct current megawatt (MWdc) solar project that is being built in two phases. The first phase, currently under construction, comprises around 252 MWdc and is expected to be completed by the end of 2019, while the remaining 245 MWdc of capacity is expected to be completed by the end of 2020. Once fully operational, the solar plant could generate up to 1.2 terawatt-hours (TWh) of electricity annually, while avoiding an estimated 800,000 metric tons of carbon dioxide emissions per year.

Based on the U.S. Environmental Protection Agency Greenhouse Gas Equivalencies Calculator[i], this VPPA is estimated to avoid approximately 140,000 metric tons of CO2 emissions each year. This is equivalent to the annual impact that 165,000 acres of U.S. forest can have in removing CO2 from the atmosphere, and illustrates why cleaning up Canada's electricity is central to emissions reductions in the power sector, or the carbon impact of the electricity needed to power more than 24,000 U.S. homes annually.

"We are proud to support Clorox on their path towards 100% renewable electricity in its operations in the U.S. and Canada by helping them achieve about half their goal through this agreement," said Georgios Papadimitriou, head of Enel Green Power North America. "This agreement with Clorox reinforces the continued significance of renewable energy as a fundamental part of any company's sustainability strategy."

Schneider Electric Energy & Sustainability Services advised Clorox on this power purchase agreement and, amid heightened investor attention exemplified by the Duke Energy climate report, supported the company in its project selection, analysis, negotiations and deal execution.

 

Clorox Commits to Scope 1, 2 and 3 Science-Based Targets

For more than 10 years, Clorox has consistently achieved its goals to reduce greenhouse gas emissions in its operations. Clorox is focused on setting emissions reduction targets in line with climate science. As a participant in the Science Based Targets Initiative, Clorox has committed to setting and achieving science-based greenhouse gas emissions reduction targets in its operations (Scopes 1 and 2) and across its value chain (Scope 3), and consistent with national pathways such as Canada's net-zero 2050 target pursued by policymakers. The targets are considered "science-based" if they are in line with what the latest climate science says is necessary to meet the goals of the 2015 Paris Agreement – a global environmental accord to address climate change and its negative impacts.

Clorox's climate stewardship goals are part of its new integrated corporate strategy called IGNITE, which includes several other environmental, social and governance (ESG) goals and reflects lessons from Canada's electricity progress in scaling clean power. More comprehensive information about Clorox's IGNITE ESG goals can be found here. Information on Clorox's 2020 ESG strategy can be found in its fiscal year 2019 annual report.

 

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Japan to host one of world's largest biomass power plants

eRex Biomass Power Plant will deliver 300 MW in Japan, offering stable baseload renewable energy, coal-cost parity, and feed-in tariff independence through economies of scale, efficient fuel procurement, and utility-scale operations supporting RE100 demand.

 

Key Points

A 300 MW Japan biomass project targeting coal-cost parity and FIT-free, stable baseload renewable power.

✅ 300 MW capacity; enough for about 700,000 households

✅ Aims to skip feed-in tariff via economies of scale

✅ Targets coal-cost parity with stable, dispatchable output

 

Power supplier eRex will build its largest biomass power plant to date in Japan, hoping the facility's scale will provide healthy margins, a strategy increasingly seen among renewable developers pursuing diverse energy sources, and a means of skipping the government's feed-in tariff program.

The Tokyo-based electric company is in the process of selecting a location, most likely in eastern Japan. It aims to open the plant around 2024 or 2025 following a feasibility study. The facility will cost an estimated 90 billion yen ($812 million) or so, and have an output of 300 megawatts -- enough to supply about 700,000 households. ERex may work with a regional utility or other partner

The biggest biomass power plant operating in Japan currently has an output of 100 MW. With roughly triple that output, the new facility will rank among the world's largest, reflecting momentum toward 100% renewable energy globally that is shaping investment decisions.

Nearly all biomass power facilities in Japan sell their output through the government-mediated feed-in tariff program, which requires utilities to buy renewable energy at a fixed price. For large biomass plants that burn wood or agricultural waste, the rate is set at 21 yen per kilowatt-hour. But the program costs the Japanese public more than 2 trillion yen a year, and is said to hamper price competition.

ERex aims to forgo the feed-in tariff with its new plant by reaping economies of scale in operation and fuel procurement. The goal is to make the undertaking as economical as coal energy, which costs around 12 yen per kilowatt-hour, even as solar's rise in the U.S. underscores evolving benchmarks for competitive renewables.

Much of the renewable energy available in Japan is solar power, which fluctuates widely according to weather conditions, though power prediction accuracy has improved at Japanese PV projects. Biomass plants, which use such materials as wood chips and palm kernel shells as fuel, offer a more stable alternative.

Demand for reliable sources of renewable energy is on the rise in the business world, as shown by the RE100 initiative, in which 100 of the world's biggest companies, such as Olympus, have announced their commitment to get 100% of their power from renewable sources. ERex's new facility may spur competition.

 

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