Dispute raises doubts over Amazon dams

By Reuters


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Environmentalists were dismayed when Brazil approved construction of one of two dams planned in the Amazon, but possible legal challenges and a dispute between construction groups threaten to delay both projects.

The Brazilian government sees the dams on the Madeira river, one of the Amazon river's biggest tributaries, as crucial to prevent energy shortages in its fast-growing economy over the next decade.

Beyond that, the $13 billion Jirau and Santo Antonio projects are seen as a key step in regional integration, creating a waterway that would cut transport costs for Brazil's agriculture exports and for farming areas in Bolivia and Peru.

Brazil's new environment minister, Carlos Minc, who has vowed to slash the time taken to license big projects, attached 40 provisions to Monday's approval of the installation of the Santo Antonio dam.

But environmentalists see the dams as a potential disaster that will flood up to 494,200 acres of forest, dramatically changing the ecosystem. They say the government has not provided enough safeguards.

"Minc is blowing a lot of smoke and pretending his agency is demanding a lot of rigorous measures," said Glenn Switkes, Latin America Program Director for International Rivers Network, a California-based group that protects rivers and the communities that depend on them.

"We're dealing with a principal tributary of the Amazon... which has maybe the highest biodiversity of fish and among the highest biodiversity of birds in the world."

Environmentalists said the dams violate the Equator Principles on project finance that were signed by several banks potentially funding the projects, possibly opening the way for legal challenges.

But while conservationists have so far failed to hold up the licensing process, the separate consortiums building the dams have launched into a quarrel that has the government worried about a legal battle and possible delays.

The government threatened to reopen the auctions or take over the projects through state-controlled generator Eletrobras if the business groups did not resolve their differences.

Victor Paranhos, head of the Enersus group that won the Jirau concession, accused the rival group led by construction giant Odebrecht of espionage after it sent a report about Enersus's building plans to the environment agency.

Odebrecht responded by starting legal proceedings that could lead to a defamation case against Paranhos.

The report by Odebrecht was critical of Enersus's plans to move the Jirau dam six miles downriver, something that could affect the other dam's generation capacity. The relocation has not yet been approved by the government.

"If an accord does not happen, the government could take the initiative to build the two works through Eletrobras," Energy Minister Edison Lobao told reporters.

French utility Suez, which leads the Jirau group, threatened last month to stop new investments in the Brazilian power sector if Odebrecht kept up its complaint, raising the prospect of wider fallout from the row.

Any delay in the projects is likely to raise investor concerns about their profitability, already fed by regulatory uncertainty and pressure from Brazil's government for low consumer tariffs.

The Jirau consortium agreed to market electricity from the 3,300 megawatt project at a 21.5 percent discount compared with the auction's base price.

Erasto Almeida, an energy analyst at Eurasia Group in New York, played down the risk of major delays, however.

"The Brazilian government really wants to get these projects done because of concerns about potential power shortages," he said. "My sense of this is that both companies will defend their interests and you might have legal action but there'll be some kind of agreement."

The Santo Antonio consortium also includes an investment fund set up by Spain's Santander and Portugal's Banif, and Furnas, a subsidiary of Eletrobras.

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UK Renewable Energy Auction: Boost for Wind and Tidal Power

UK Wind and Tidal Power Auction signals strong CfD support for offshore wind, tidal stream projects, investor certainty, and clean electricity, accelerating the net-zero transition, boosting jobs, and strengthening UK energy security and grid integration.

 

Key Points

A CfD auction awarding contracts for wind and tidal projects to scale clean power and advance UK net-zero.

✅ Offshore wind dominates CfD awards

✅ Tidal stream gains predictable, reliable capacity

✅ Jobs, investment, and grid integration accelerate

 

In a significant development for the UK’s renewable energy sector, the latest auction for renewable energy contracts has underscored a transformative shift towards wind and tidal power. As reported by The Guardian, the auction results reveal a strong commitment to expanding these technologies, with new contracts adding 10 GW to the UK grid, marking a pivotal moment in the UK’s transition to cleaner energy sources.

The Auction’s Impact

The renewable energy auction, which took place recently, has allocated contracts for a substantial increase in wind and tidal power projects. This auction, part of the UK’s Contracts for Difference (CfD) scheme, is designed to support the development of low-carbon energy technologies by providing financial certainty to investors. By offering fixed prices for the electricity generated by these projects, the CfD scheme aims to stimulate investment and accelerate the deployment of renewable energy sources.

The latest results are particularly notable for the significant share of contracts awarded to offshore wind farms and tidal power projects, highlighting how offshore wind is powering up the UK as policy and investment priorities continue to shift. This marks a shift from previous auctions, where solar power and onshore wind were the dominant technologies. The move towards supporting offshore wind and tidal power reflects the UK’s strategic focus on harnessing its abundant natural resources to drive the transition to a low-carbon energy system.

Offshore Wind Power: A Major Contributor

Offshore wind power has emerged as a major player in the UK’s renewable energy landscape, within a global market projected to become a $1 trillion business over the coming decades. The recent auction results highlight the continued growth and investment in this sector.

The UK has been a global leader in offshore wind development, with several large-scale projects already operational and more in the pipeline. The auction has further cemented this position, underscoring what the U.S. can learn from the U.K. in scaling offshore wind capacity, with new projects set to contribute significantly to the country’s renewable energy capacity. These projects are expected to deliver substantial amounts of clean electricity, supporting the UK’s goal of achieving net-zero emissions by 2050.

Tidal Power: An Emerging Frontier

Tidal power, although less developed compared to wind and solar, is gaining momentum as a promising renewable energy source, with companies harnessing oceans and rivers to demonstrate practical potential. The auction results have allocated contracts to several tidal power projects, signaling growing recognition of the potential of this technology.

Tidal power harnesses the energy from tidal movements and currents, which are highly predictable and consistent, and a market outlook for wave and tidal energy points to emerging growth drivers and investment. This makes it a reliable complement to intermittent sources like wind and solar power. The inclusion of tidal power projects in the auction reflects the UK’s commitment to diversifying its renewable energy portfolio and exploring all available options for achieving energy security and sustainability.

Economic and Environmental Benefits

The expansion of wind and tidal power projects through the recent auction offers numerous economic and environmental benefits. From an economic perspective, these projects are expected to create thousands of jobs in construction, maintenance, and manufacturing. They also stimulate investment in local economies and support the growth of the green technology sector.

Environmentally, the increased deployment of wind and tidal power contributes to significant reductions in greenhouse gas emissions. Offshore wind farms and tidal power projects produce clean electricity with minimal environmental impact, helping to mitigate the effects of climate change and improve air quality.

Challenges and Future Outlook

Despite the positive outcomes of the auction, there are challenges to address. Offshore wind farms and tidal power projects require substantial upfront investment and face technical and logistical challenges. Issues such as grid integration, environmental impact assessments, and supply chain constraints need to be carefully managed to ensure the successful deployment of these projects.

Looking ahead, the UK’s renewable energy strategy will continue to evolve as new technologies and innovations emerge, and growth despite Covid-19 underscores sector resilience. The success of the latest auction demonstrates the growing confidence in wind and tidal power and sets the stage for further advancements in renewable energy.

The UK government’s commitment to supporting these technologies through initiatives like the CfD scheme is crucial for achieving long-term energy and climate goals. As the country progresses towards its net-zero target, the continued expansion of wind and tidal power will play a key role in shaping a sustainable and resilient energy future.

Conclusion

The latest renewable energy auction represents a significant milestone in the UK’s transition to a low-carbon energy system. By awarding contracts to wind and tidal power projects, the auction underscores the country’s commitment to harnessing diverse and reliable sources of renewable energy. The expansion of offshore wind and the emerging role of tidal power highlight the UK’s strategic approach to achieving energy security, reducing emissions, and driving economic growth. As the renewable energy sector continues to evolve, the UK remains at the forefront of global efforts to build a sustainable and clean energy future.

 

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There's a Russia-Sized Mystery in China's Electricity Sector

China Power Demand-Emissions Gap highlights surging grid demand outpacing renewables, with coal filling shortages despite record solar, wind, EV charging, and hydrogen growth, threatening decarbonization targets and net-zero pathways through 2030.

 

Key Points

China's power demand outpaces renewables, keeping coal dominant and raising emissions risk through the 2020s.

✅ Record solar and wind still lag fast grid demand growth

✅ Coal fills gaps as EV charging and hydrogen loads rise

✅ Forecasts diverge: CEC bullish vs IEA, BNEF conservative

 

Here’s a new obstacle that could prevent the world finally turning the corner on climate change: Imagine that over the coming decade a whole new economy the size of Russia were to pop up out of nowhere. With the world’s fourth-largest electricity sector and largest burden of power plant emissions after China, the U.S. and India, this new economy on its own would be enough to throw out efforts to halt global warming — especially if it keeps on growing through the 2030s.

That’s the risk inherent in China’s seemingly insatiable appetite for grid power, as surging electricity demand is putting systems under strain worldwide.

From the cracking pace of renewable build-out last year, you might think the country had broken the back of its carbon addiction. A record 55 gigawatts of solar power and 48 gigawatts of wind were connected — comparable to installing the generation capacity of Mexico in less than 12 months. This year will see an even faster pace, with 93 GW of solar and 50 GW of wind added, according to a report last week from the China Electricity Council, an industry association.

That progress could in theory see the country’s power sector emissions peak within months, rather than the late-2020s date the government has hinted at. Combined with a smaller quantity of hydro and nuclear, low-emissions sources will probably add about 310 terawatt-hours to zero-carbon generation this year. That 3.8% increase would be sufficient to power the U.K.

Countries that have reached China’s levels of per-capita electricity consumption (already on a par with most of Europe) typically see growth rates at less than half that level, even as global power demand has surged past pre-pandemic levels in recent years. Grid supply could grow at a faster pace than Brazil, Iran, South Korea or Thailand managed over the past decade without adding a ton of additional carbon to the atmosphere.

There’s a problem with that picture, however. If electricity demand grows at an even more headlong pace, there simply won’t be enough renewables to supply the grid. Fossil fuels, overwhelmingly coal, will fill the gap, a reminder of the iron law of climate dynamics in energy transitions.

Such an outcome looks distinctly possible. Electricity consumption in 2021 grew at an extraordinary rate of 10%, and will increase again by between 5% and 6% this year, according to the CEC. That suggests the country is on pace to match the CEC’s forecasts of bullish grid demand over the coming decade, with generation hitting 11,300 terawatt-hours in 2030. External analysts, such as the International Energy Agency and BloombergNEF, envisage a more modest growth to around 10,000 TWh. 

The difference between those two outlooks is vast — equivalent to all the electricity produced by Russia or Japan. If the CEC is right and the IEA and BloombergNEF are wrong, even the furious rate of renewable installations we’re seeing now won’t be enough to rein in China’s power-sector emissions.

Who’s correct? On one hand, it’s fair to say that power planners usually err on the side of overestimation. If your forecast for electricity demand is too high, state-owned generators will be less profitable than they otherwise would have been — but if it’s too low, you’ll see power cuts and shutdowns like China witnessed last autumn, with resulting power woes affecting supply chains beyond its borders.

On the other hand, the decarbonization of China’s economy itself should drive electricity demand well above what we’ve seen in the past, with some projections such as electricity meeting 60% of energy use by 2060 pointing to a profound shift. Some 3.3 million electric vehicles were sold in 2021 and BloombergNEF estimates a further 5.7 million will be bought in 2022. Every million EVs will likely add in the region of 2 TWh of load to the grid. Those sums quickly mounts up in a country where electric drivetrains are taking over a market that shifts more than 25 million new cars a year.

Decarbonizing industry, a key element on China’s road to zero emissions, could also change the picture. The IEA sees the country building 25 GW of electolysers to produce hydrogen by 2030, enough to consume some 200 TWh on their own if run close to full-time.

That’s still not enough to justify the scale of demand being forecast, though. China is already one of the least efficient countries in the world when it comes to translating energy into economic growth, and despite official pressure on the most wasteful, so called “dual-high” industries such as steel, oil refining, glass and cement, its targets for more thrifty energy usage remain pedestrian.

The countries that have decarbonized fastest are those, such as Germany, the U.K and the U.S., where Americans are using less electricity, that have seen power demand plateau or even decline, giving new renewable power a chance to swap out fossil-fired generators without chasing an ever-increasing burden on the grid. China’s inability to do this as its population peaks and energy consumption hits developed-country levels isn’t a sign of strength.

Instead, it’s a sign of a country that’s chronically unable to make the transition away from polluting heavy industry and toward the common prosperity and ecological civilization that its president keeps promising. Until China reins in that credit-fueled development model, the risks to its economy and the global climate will only increase.

 

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A new nuclear reactor in the U.S. starts up. It's the first in nearly seven years

Vogtle Unit 3 Initial Criticality marks the startup of a new U.S. nuclear reactor, initiating fission to produce heat, steam, and electricity, supporting clean energy goals, grid reliability, and carbon-free baseload power.

 

Key Points

Vogtle Unit 3 Initial Criticality is the first fission startup, launching power generation at a new U.S. reactor.

✅ First new U.S. reactor to reach criticality since 2016

✅ Generates carbon-free baseload power for the grid

✅ Faced cost overruns and delays during construction

 

For the first time in almost seven years, a new nuclear reactor has started up in the United States.

On Monday, Georgia Power announced that the Vogtle nuclear reactor Unit 3 has started a nuclear reaction inside the reactor as part of the first new reactors in decades now taking shape at the plant.

Technically, this is called “initial criticality.” It’s when the nuclear fission process starts splitting atoms and generating heat, Georgia Power said in a written announcement.

The heat generated in the nuclear reactor causes water to boil. The resulting steam spins a turbine that’s connected to a generator that creates electricity.

Vogtle’s Unit 3 reactor will be fully in service in May or June, Georgia Power said.

The last time a nuclear reactor reached the same milestone was almost seven years ago in May 2016 when the Tennessee Valley Authority started splitting atoms at the Watts Bar Unit 2 reactor in Tennessee, Scott Burnell, a spokesperson for the Nuclear Regulatory Commission, told CNBC.

“This is a truly exciting time as we prepare to bring online a new nuclear unit that will serve our state with clean and emission-free energy for the next 60 to 80 years,” Chris Womack, CEO of Georgia Power, said in a written statement. 

Including the newly turned-on Vogtle Unit 3 reactor, there are currently 93 nuclear reactors operating in the United States and, collectively, they generate 20% of the electricity in the country, although a South Carolina plant leak recently showed how outages can sideline a unit for weeks.

Nuclear reactors, which help combat global warming and support net-zero emissions goals, generate about half of the clean, carbon-free electricity generated in the U.S.

Most of the nuclear power reactors in the United States were constructed between 1970 and 1990, but construction slowed significantly after the accident at Three Mile Island near Middletown, Pennsylvania, on March 28, 1979, even as interest in next-gen nuclear power has grown in recent years. From 1979 through 1988, 67 nuclear reactor construction projects were canceled, according to the U.S. Energy Information Administration.

However, because nuclear energy is generated without releasing carbon dioxide emissions, which cause global warming, the increased sense of urgency in responding to climate change has given nuclear energy a chance at a renaissance as atomic energy heats up again globally.

The cost associated with building nuclear reactors is a major barrier to a potential resurgence in nuclear energy, however, even as nuclear generation costs have fallen to a ten-year low. And the new builds at Vogtle have become an epitome of that charge: The construction of the two Vogtle reactors has been plagued by cost overruns and delays.
 

 

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7 steps to make electricity systems more resilient to climate risks

Electricity System Climate Resilience underpins grid reliability amid heatwaves and drought, integrating solar, wind, hydropower, nuclear, storage, and demand response with efficient transmission, flexibility, and planning to secure power for homes, industry, and services.

 

Key Points

Power systems capacity to endure extreme weather and integrate clean energy, maintaining reliability and flexibility.

✅ Grid hardening, transmission upgrades, and digital forecasting.

✅ Flexible low-carbon supply: hydropower, nuclear, storage.

✅ Demand response, efficient cooling, and regional integration.

 

Summer is just half done in the northern hemisphere and yet we are already seeing electricity systems around the world struggling to cope with the severe strain of heatwaves and low rainfall.

These challenges highlight the urgent need for strong and well-planned policies and investments to improve the security of our electricity systems, which supply power to homes, offices, factories, hospitals, schools and other fundamental parts of our economies and societies. This means making our electricity systems more resilient to the effects of global warming – and more efficient and flexible as they incorporate rising levels of solar and wind power, as solar is now the cheapest electricity in history according to the IEA, which will be critical for reaching net-zero emissions in time to prevent even worse impacts from climate change.

A range of different countries, including the US, Canada and Iraq, have been hard hit by extreme weather recently in the form of unusually high temperatures. In North America, the heat soared to record levels in the Pacific Northwest. An electricity watchdog says that five US regions face elevated risks to the security of their electricity supplies this summer, underscoring US grid climate risks that could worsen, and that California’s risk level is even higher.

Heatwaves put pressure on electricity systems in multiple ways. They increase demand as people turn up air conditioning, driving higher US electricity bills for many households, and as some appliances work harder to maintain cool temperatures. At the same time, higher temperatures can also squeeze electricity supplies by reducing the efficiency and capacity of traditional thermal power plants, such as coal, natural gas and nuclear. Extreme heat can reduce the availability of water for cooling plants or transporting fuel, forcing operators to reduce their output. In some cases, it can result in power plants having to shut down, increasing the risk of outages. If the heat wave is spread over a wide geographic area, it also reduces the scope for one region to draw on spare capacity from its neighbours, since they have to devote their available resources to meeting local demand.

A recent heatwave in Texas forced the grid operator to call for customers to raise their thermostats’ temperatures to conserve energy. Power generating companies suffered outages at much higher rates than expected, providing an unwelcome reminder of February’s brutal cold snap when outages – primarily from natural gas power plants – left up to 5 million customers across the US without power over a period of four days.

At the same time, lower than average rainfall and prolonged dry weather conditions are raising concerns about hydropower’s electricity output in various parts of the world, including Brazil, China, India and North America. The risks that climate change brings in the form of droughts adds to the challenges faced by hydropower, the world’s largest source of clean electricity, highlighting the importance of developing hydropower resources sustainably and ensuring projects are climate resilient.

The recent spate of heatwaves and unusually long dry spells are fresh warnings of what lies ahead as our climate continues to heat up: an increase in the scale and frequency of extreme weather events, which will cause greater impacts and strains on our energy infrastructure.

Heatwaves will increase the challenge of meeting electricity demand while also decarbonizing the electricity supply. Today, the amount of energy used for cooling spaces – such as homes, shops, offices and factories – is responsible for around 1 billion tonnes of global CO2 emissions. In particular, energy for cooling can have a major impact on peak periods of electricity demand, intensifying the stress on the system. Since the energy demand used for air conditioners worldwide could triple by 2050, these strains are set to grow unless governments introduce stronger policy measures to improve the energy efficiency of air conditioning units.

Electricity security is crucial for smooth energy transitions
Many countries around the world have announced ambitious targets for reaching net-zero emissions by the middle of this century and are seeking to step up their clean energy transitions. The IEA’s recent Global Roadmap to Net Zero by 2050 makes it clear that achieving this formidable goal will require much more electricity, much cleaner electricity and for that electricity to be used in far more parts of our economies than it is today. This means electricity reaching much deeper into sectors such as transport (e.g. EVs), buildings (e.g. heat-pumps) and industry (e.g. electric-arc steel furnaces), and in countries like New Zealand's electrification plans it is accelerating broader efforts. As clean electricity’s role in the economy expands and that of fossil fuels declines, secure supplies of electricity become ever-more important. This is why the climate resilience of the electricity sector must be a top priority in governments’ policy agendas.

Changing climate patterns and more frequent extreme weather events can hit all types of power generation sources. Hydropower resources typically suffer in hot and dry conditions, but so do nuclear and fossil fuel power plants. These sources currently help ensure electricity systems have the flexibility and capacity to integrate rising shares of solar and wind power, whose output can vary depending on the weather and the time of day or year.

As governments and utilities pursue the decarbonization of electricity systems, mainly through growing levels of solar and wind, and carbon-free electricity options, they need to ensure they have sufficiently robust and diverse sources of flexibility to ensure secure supplies, including in the event of extreme weather events. This means that the possible decommissioning of existing power generation assets requires careful assessments that take into account the importance of climate resilience.

Ensuring electricity security requires long-term planning and stronger policy action and investment
The IEA is committed to helping governments make well-informed decisions as they seek to build a clean and secure energy future. With this in mind, here are seven areas for action for ensuring electricity systems are as resilient as possible to climate risks:

1. Invest in electricity grids to make them more resilient to extreme weather. Spending today is far below the levels needed to double the investment for cleaner, more electrified energy systems, particularly in emerging and developing economies. Economic recovery plans from the COVID-19 crisis offer clear opportunities for economies that have the resources to invest in enhancing grid infrastructure, but much greater international efforts are required to mobilize and channel the necessary spending in emerging and developing economies.

2. Improve the efficiency of cooling equipment. Cost-effective technology already exists in most markets to double or triple the efficiency of cooling equipment. Investing in higher efficiency could halve future energy demand and reduce investment and operating costs by $3 trillion between now and 2050. In advance of COP26, the Super-Efficient Equipment and Appliance Deployment (SEAD) initiative is encouraging countries to sign up to double the energy efficiency of equipment sold in their countries by 2030.

3. Enable the growth of flexible low-carbon power sources to support more solar and wind. These electricity generation sources include hydropower and nuclear, for countries who see a role for one or both of them in their energy transitions. Guaranteeing hydropower resilience in a warming climate will require sophisticated methods and tools – such as the ones implemented in Brazil – to calculate the necessary level of reserves and optimize management of reservoirs and hydropower output even in exceptional conditions. Batteries and other forms of storage, combined with solar or wind, can also provide important amounts of flexibility by storing power and releasing it when needed.

4. Increase other sources of electricity system flexibility. Demand-response and digital technologies can play an important role. The IEA estimates that only a small fraction of the huge potential for demand response in the buildings sector is actually tapped at the moment. New policies, which associate digitalization and financial behavioural incentives, could unlock more flexibility. Regional integration of electricity systems across national borders can also increase access to flexible resources.

5. Expedite the development and deployment of new technologies for managing extreme weather threats. The capabilities of electricity utilities in forecasting and situation awareness should be enhanced with the support of the latest information and communication technologies.

6. Make climate resilience a central part of policy-making and system planning. The interconnected nature of recent extreme weather events reminds us that we need to account for many contingencies when planning resilient power systems. Climate resilience should be integral to policy-making by governments and power system planning by utilities and relevant industries, and debates over Canadian climate policy underscore how grid implications must be considered. According to the recent IEA report on climate resilience, only nine out of 38 IEA member and association countries include concrete actions on climate adaptation and resilience for every segment of electricity systems.

7. Strengthen international cooperation on electricity security. Electricity underpins vital services and basic needs, such as health systems, water supplies and other energy industries. Maintaining a secure electricity supply is thus of critical importance. The costs of doing nothing in the face of growing climate threats are becoming abundantly clear. The IEA is working with all countries in the IEA family, as well as others around the world, by providing unrivalled data, analysis and policy advice on electricity security issues. It is also bringing governments together at various levels to share experiences and best practices, and identify how to hasten the shift to cleaner and more resilient energy systems.


 

 

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Western Canada drought impacting hydropower production as reservoirs run low

Western Canada Hydropower Drought strains British Columbia and Manitoba as reservoirs hit historic lows, cutting hydroelectric output and prompting power imports, natural gas peaking, and grid resilience planning amid climate change risks this winter.

 

Key Points

Climate-driven reservoir lows cut hydro in B.C. and Manitoba, prompting imports and backup gas to maintain reliability.

✅ Reservoirs at multi-year lows cut hydro generation capacity

✅ BC Hydro and Manitoba Hydro import electricity for reliability

✅ Natural gas turbines used; climate change elevates drought risk

 

Severe drought conditions in Western Canada are compelling two hydroelectricity-dependent provinces, British Columbia and Manitoba, to import power from other regions. These provinces, known for their reliance on hydroelectric power, are facing reduced electricity production due to low water levels in reservoirs this autumn and winter as energy-intensive customers encounter temporary connection limits.

While there is no immediate threat of power outages in either province, experts indicate that climate change is leading to more frequent and severe droughts. This trend places increasing pressure on hydroelectric power producers in the future, spurring interest in upgrading existing dams as part of adaptation strategies.

In British Columbia, several regions are experiencing "extreme" drought conditions as classified by the federal government. BC Hydro spokesperson Kyle Donaldson referred to these conditions as "historic," and a first call for power highlights the strain, noting that the corporation's large reservoirs in the north and southeast are at their lowest levels in many years.

To mitigate this, BC Hydro has been conserving water by utilizing less affected reservoirs and importing additional power from Alberta and various western U.S. states. Donaldson confirmed that these measures would persist in the upcoming months.

Manitoba is also facing challenges with below-normal levels in reservoirs and rivers. Since October, Manitoba Hydro has occasionally relied on its natural gas turbines to supplement hydroelectric production as electrical demand could double over the next two decades, a measure usually reserved for peak winter demand.

Bruce Owen, a spokesperson for Manitoba Hydro, reassured that there is no imminent risk of a power shortage. The corporation can import electricity from other regions, similar to how it exports clean energy in high-water years.

However, the cost implications are significant. Manitoba Hydro anticipates a financial loss for the current fiscal year, with more red ink tied to emerging generation needs, the second in a decade, with the previous one in 2021. That year, drought conditions led to a significant reduction in the company's power production capabilities, resulting in a $248-million loss.

The 2021 drought also affected hydropower production in the United States. The U.S. Department of Energy reported a 16% reduction in overall generation, with notable decreases at major facilities like Nevada's Hoover Dam, where production dropped by 25%.

Drought has long been a major concern for hydroelectricity producers, and they plan their operations with this risk in mind. Manitoba's record drought in 1940-41, for example, is a benchmark for Manitoba Hydro's operational planning to ensure sufficient electricity supply even in extreme low-water conditions.

Climate change, however, is increasing the frequency of such rare events, highlighting the need for more robust backup systems such as new turbine investments to enhance reliability. Blake Shaffer, an associate professor of economics at the University of Calgary specializing in electricity markets, emphasized the importance of hydroelectric systems incorporating the worsening drought forecasts due to climate change into their energy production planning.

 

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Nuclear helps Belgium increase electricity exports in 2019

Belgium Energy Mix 2019 shows strong nuclear output, rising offshore wind, net electricity exports, and robust interconnections, per Elia, as the nuclear phaseout drives 3.9GW new capacity needs after improved reactor availability.

 

Key Points

High nuclear share, offshore wind, net exports, interconnections; 3.9GW capacity needed amid nuclear phaseout.

✅ Nuclear supplied 48.8% of generation in 2019.

✅ Net exporter: 1.8 TWh, aided by interconnections.

✅ Elia projects 3.9GW new capacity for phaseout.

 

Belgium's electricity transmission system operator, Elia, said that the major trends in 2019 were a steady increase in (mainly offshore) renewable power generation, illustrated by EU wind and solar records across the bloc, better availability of nuclear-generating facilities and an increase in electricity exports.

In 2019, 48.8% of the power generated in Belgium came from nuclear plants. This was in line with the total for 2017 (50%) and significantly more than in 2018 (31.2%) when several reactors were unavailable amid stunted hydro and nuclear output in Europe as well.

Belgium exported more electricity in 2019, as neighbors like Germany saw renewables overtake coal and nuclear generation, with net exports of 1.8TWh (2.1% of the energy mix), in contrast to 2018 when Belgium imported 17.5TWh (20%).

Elia said this “should be viewed in its wider context, of declining nuclear capacity in Europe and regional market shifts, against the backdrop of an increasingly Europeanised market, and can be explained primarily by the good availability of Belgium's generating facilities (especially its nuclear power stations).”

The development of interconnections was also a key factor in the circulation of these electricity flows, as seen with Irish grid price spikes highlighting regional stress, Elia noted.

“Belgium had not been a net exporter of electricity for almost 10 years, the last time being in 2009 and 2010, when total net exports represented 2.8% and 0.2% respectively of Belgium’s energy mix,” it said.

Belgian has seven nuclear reactors – three at Tihange near Liege and four at Doel near Antwerp – and, regionally, nuclear-powered France faces outage risks that influence cross-border reliability.

In 2003, Belgium decided to phase out nuclear power and passed a law to that effect, with neighbors like Germany navigating a balancing act during their energy transition, which was reaffirmed in 2015 and 2018.

A commission appointed to assess the impact of the nuclear phaseout is scheduled to be completed in 2025 but has yet to report any findings.

Elia estimates that some 3.9GW of new power generating capacity will be needed to compensate for Belgium's nuclear phaseout.

 

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