A rare peek at green economics

By New York Times


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California regulators have approved contracts for more than 8,600 megawatts of renewable energy, to be generated mostly by big solar power plants for the stateÂ’s largest utilities.

But the details of those deals and the emerging economics of green energy often remain shrouded in secrecy, subject to confidentiality agreements.

That black box cracked open a bit recently, when the California Public Utilities Commission gave the green light to two 25-year power purchase agreements between Pacific Gas & Electric and BrightSource Energy, a solar power plant builder based in Oakland, Calif.

When approving contracts for 310 megawatts of solar electricity, the utilities commission also signed off on an apparently first-of-its-kind technology royalty agreement between BrightSource and PG&E.

Under the contracts that were approved, BrightSource will generate electricity from two of seven solar thermal power plants the company is building in the Mojave Desert, to supply PG&E with a total of 1,310 megawatts. In an unusual twist, the utility has agreed to pay BrightSource a higher electricity rate if the start-up fails to secure a Department of Energy loan guarantee to help finance the construction of the two power plants.

The loan guarantee program is designed to promote development of renewable energy by allowing companies like BrightSource to obtain lower-cost financing for the billions of dollars needed to build large-scale solar farms.

“Given the current credit crisis, new renewable energy projects face financing risk,” wrote the utility commissioners. “We believe that the milestones achieved to date on its D.O.E. Loan Guarantee application and BrightSource’s project development experience will put it at an advantage when seeking financing.”

The deal prompted an unsuccessful protest from the Division of Ratepayer Advocates, a state agency that promotes utility customersÂ’ interests. The ratepayer advocate argued that BrightSource did not receive such favorable terms when it agreed to provide 1,300 megawatts of electricity to Southern California Edison, another state utility, using the same technology.

Utility commissioners also approved an agreement between BrightSource and PG&E that calls for the start-up to pay the utility royalties based on the worldwide sales and licensing of BrightSource’s solar “power tower” technology.

A spokesman for BrightSource, Keely Wachs, said he could not provide any details of the royalty agreement or why it was struck due to confidentiality provisions of the deal.

This is the first royalty agreement PG&E has made in connection with a power-purchase agreement, according to Jennifer Zerwer, a spokeswoman for the utility. She said the utility could not disclose whether the royalty contract was tied to the electricity rates PG&E will pay BrightSource.

“We’re contractually not permitted to discuss the negotiated terms of the royalty agreement,” Ms. Zerwer wrote in an e-mail message.

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This kite could harness more of the world's wind energy

Autonomous Energy Kites harness offshore wind on floating platforms, using carbon fiber wings, tethers, and rotors to generate grid electricity; an airborne wind energy solution backed by Alphabet's Makani to cut turbine costs.

 

Key Points

Autonomous Energy Kites are tethered craft that capture winds with rotors, generating grid power from floating platforms.

✅ Flies circles on tethers; rotors drive generators to feed the grid.

✅ Operates over deep-sea winds where fixed turbines are impractical.

✅ Lighter, less visual impact, and lower installation costs offshore.

 

One company's self-flying energy kite may be the answer to increasing wind power around the world, alongside emerging wave power solutions as well.

California-based Makani -- which is owned by Google's parent company, Alphabet -- is using power from the strongest winds found out in the middle of the ocean, where the offshore wind sector has huge potential, typically in spots where it's a challenge to install traditional wind turbines. Makani hopes to create electricity to power communities across the world.

Despite a growing number of wind farms in the United States and the potential of this energy source, lessons from the U.K. underscore how to scale, yet only 6% of the world's electricity comes from wind due to the the difficulty of setting up and maintaining turbines, according to the World Wind Energy Association.

When the company's co-founders, who were fond of kiteboarding, realized deep-sea winds were largely untapped, they sought to make that energy more accessible. So they built an autonomous kite, which looks like an airplane tethered to a base, to install on a floating platform in water, as part of broader efforts to harness oceans and rivers for power across regions. Tests are currently underway off the coast of Norway.

"There are many areas around the world that really don't have a good resource for renewable power but do have offshore wind resources," Makani CEO Fort Felker told Rachel Crane, CNN's innovation correspondent. "Our lightweight kites create the possibility that we could tap that resource very economically and bring renewable power to hundreds of millions of people."

This technology is more cost-efficient than a traditional wind turbine, which is a lot more labor intensive and would require lots of machinery and installation.

The lightweight kite, which is made of carbon fiber, has an 85-foot wingspan. The kite launches from a base station and is constrained by a 1,400-foot tether as it flies autonomously in circles with guidance from computers. Crosswinds spin the kite's eight rotors to move a generator that produces electricity that's sent back to the grid through the tether.

The kites are still in the prototype phase and aren't flown constantly right now as researchers continue to develop the technology. But Makani hopes the kites will one day fly 24/7 all year round. When the wind is down, the kite will return to the platform and automatically pick back up when it resumes.

Chief engineer Dr. Paula Echeverri said the computer system is key for understanding the state of the kite in real time, from collecting data about how fast it's moving to charting its trajectory.

Echeverri said tests have been helpful in establishing what some of the challenges of the system are, and the team has made adjustments to get it ready for commercial use. Earlier this year, the team successfully completed a first round of autonomous flights.

Working in deeper water provides an additional benefit over traditional wind turbines, according to Felker. By being farther offshore, the technology is less visible from land, and the growth of offshore wind in the U.K. shows how coastal communities can adapt. Wind turbines can be obtrusive and impact natural life in the surrounding area. These kites may be more attractive to areas that wish to preserve their scenic coastlines and views.

It's also desirable for regions that face constraints related to installing conventional turbines -- such as island nations, where World Bank support is helping developing countries accelerate wind adoption, which have extremely high prices for electricity because they have to import expensive fossil fuels that they then burn to generate electricity.

Makani isn't alone in trying to bring novelty to wind energy. Several others companies such as Altaeros Energies and Vortex Bladeless are experimenting with kites of their own or other types of wind-capture methods, such as underwater kites that generate electricity, a huge oscillating pole that generates energy and a blimp tethered to the ground that gathers winds at higher altitudes.

 

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Hydroelectricity Under Pumped Storage Capacity

Pumped Storage Hydroelectricity balances renewable energy, stabilizes the grid, and provides large-scale energy storage using reservoirs and reversible turbines, delivering flexible peak power, frequency control, and rapid response to variable wind and solar generation.

 

Key Points

A reversible hydro system that stores energy by pumping water uphill, then generates flexible peak power.

✅ Balances variable wind and solar with rapid ramping

✅ Stores off-peak electricity in upper reservoirs

✅ Enhances grid stability, frequency control, and reserves

 

The expense of hydroelectricity is moderately low, making it a serious wellspring of sustainable power. The hydro station burns-through no water, dissimilar to coal or gas plants. The commonplace expense of power from a hydro station bigger than 10 megawatts is 3 to 5 US pennies for every kilowatt hour, and Niagara Falls powerhouse upgrade projects show how modernization can further improve efficiency and reliability. With a dam and supply it is likewise an adaptable wellspring of power, since the sum delivered by the station can be shifted up or down quickly (as meager as a couple of moments) to adjust to changing energy requests.

When a hydroelectric complex is developed, the task creates no immediate waste, and it for the most part has an extensively lower yield level of ozone harming substances than photovoltaic force plants and positively petroleum product fueled energy plants, with calls to invest in hydropower highlighting these benefits. In open-circle frameworks, unadulterated pumped storage plants store water in an upper repository with no normal inflows, while pump back plants use a blend of pumped storage and regular hydroelectric plants with an upper supply that is renewed to a limited extent by common inflows from a stream or waterway.

Plants that don't utilize pumped capacity are alluded to as ordinary hydroelectric plants, and initiatives focused on repowering existing dams continue to expand clean generation; regular hydroelectric plants that have critical capacity limit might have the option to assume a comparable function in the electrical lattice as pumped capacity by conceding yield until required.

The main use for pumped capacity has customarily been to adjust baseload powerplants, however may likewise be utilized to decrease the fluctuating yield of discontinuous fuel sources, while emerging gravity energy storage concepts broaden long-duration options. Pumped capacity gives a heap now and again of high power yield and low power interest, empowering extra framework top limit.

In specific wards, power costs might be near zero or once in a while negative on events that there is more electrical age accessible than there is load accessible to retain it; despite the fact that at present this is infrequently because of wind or sunlight based force alone, expanded breeze and sun oriented age will improve the probability of such events.

All things considered, pumped capacity will turn out to be particularly significant as an equilibrium for exceptionally huge scope photovoltaic age. Increased long-distance bandwidth, including hydropower imports from Canada, joined with huge measures of energy stockpiling will be a critical piece of directing any enormous scope sending of irregular inexhaustible force sources. The high non-firm inexhaustible power entrance in certain districts supplies 40% of yearly yield, however 60% might be reached before extra capaciy is fundamental.

Pumped capacity plants can work with seawater, despite the fact that there are extra difficulties contrasted with utilizing new water. Initiated in 1966, the 240 MW Rance flowing force station in France can incompletely function as a pumped storage station. At the point when elevated tides happen at off-top hours, the turbines can be utilized to pump more seawater into the repository than the elevated tide would have normally gotten. It is the main enormous scope power plant of its sort.

Alongside energy mechanism, pumped capacity frameworks help control electrical organization recurrence and give save age. Warm plants are substantially less ready to react to abrupt changes in electrical interest, and can see higher thermal PLF during periods of reduced hydro generation, conceivably causing recurrence and voltage precariousness.

Pumped storage plants, as other hydroelectric plants, including new BC generating stations, can react to stack changes in practically no time. Pumped capacity hydroelectricity permits energy from discontinuous sources, (for example, sunlight based, wind) and different renewables, or abundance power from consistent base-load sources, (for example, coal or atomic) to be put something aside for times of more popularity.

The repositories utilized with siphoned capacity are tiny when contrasted with ordinary hydroelectric dams of comparable force limit, and creating periods are regularly not exactly a large portion of a day. This technique produces power to gracefully high top requests by moving water between repositories at various heights.

Now and again of low electrical interest, the abundance age limit is utilized to pump water into the higher store. At the point when the interest gets more noteworthy, water is delivered once more into the lower repository through a turbine. Pumped capacity plans at present give the most monetarily significant methods for enormous scope matrix energy stockpiling and improve the every day limit factor of the age framework. Pumped capacity isn't a fuel source, and shows up as a negative number in postings.

 

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City of Vancouver named Clean Energy Champion for Bloedel upgrades

BC Hydro Clean Energy Champions highlights Vancouver's Bloedel Conservatory electrification with a massive heat pump, clean electricity, LED lighting, deep energy efficiency, and 90% greenhouse gas reductions advancing climate action across buildings and industry.

 

Key Points

A BC Hydro program honoring clean electricity adoption in homes, transport, and industry to replace fossil fuels.

✅ Vancouver's Bloedel Conservatory cut GHGs by 90% with a heat pump

✅ LEDs and electrification boost efficiency, comfort, and reliability

✅ Nominations open for residents, businesses, and Indigenous groups

 

The City of Vancouver has been selected as BC Hydro’s first Clean Energy Champion for energy efficient upgrades made at the Bloedel Conservatory that cut greenhouse gas emissions by 90 per cent, a meaningful step given concerns about 2050 greenhouse gas targets in B.C.

BC Hydro’s Clean Energy Champions program is officially being launched today to recognize residents, businesses, municipalities, Indigenous and community groups across B.C. that have made the choice to switch from using fossil fuels to using clean electricity in three primary areas: homes and buildings, transportation, and industry, even as drought challenges power generation in B.C. The City of Vancouver is being recognized as the first champion for demonstrating its commitment to using clean energy, including power from projects like Site C's electricity, to fight climate change at its landmark Bloedel Conservatory.

Earlier this year, the City of Vancouver installed a large air source heat pump at Bloedel Conservatory – more than 50 times the size of a heat pump used in a typical B.C. home – that uses electricity instead of natural gas to heat and cool the dome's interior, which is home to more than 500 exotic plants and flowers, and 100 exotic birds, aligning with citywide debates such as Vancouver’s reversal on gas appliances policy. It is the biggest heat pump the City of Vancouver has ever installed, with 210 tonnes of cooling capacity.

A heat pump that provides cooling in the summer and heating in the winter, helping reduce reliance on wasteful air conditioning that can drive up energy bills, is ideal for the conservatory, as its dome is completely made of glass, which can be challenging for temperature regulation. While the dome experiences a lot of heat loss in the colder months, its need for cooling in warmer weather is even greater to ensure the safety of the wildlife and plants that call it home.

The clean energy upgrades do not end there though. All lighting in the building has been upgraded to energy-efficient LEDs, reflecting conservation themes highlighted by 2018 Earth Hour electricity use discussions, and outside colour-changing LEDs now surround the perimeter and light up the dome at night.

BC Hydro is calling for nominations from B.C. residents, businesses, municipalities or Indigenous and community groups that have taken steps to lower their carbon footprint and adopt new clean energy technologies, and continues to support customers through programs like its winter payment plan during colder months. If you or someone you know is a Clean Energy Champion, nominate them at bchydro.com/cleanenergychampions.

 

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Florida PSC approves Gulf Power’s purchase of renewable energy produced at municipal solid waste plant

Gulf Power renewable energy contract underscores a Florida PSC-approved power purchase from Bay County's municipal solid waste plant, delivering 13.65 MW at a fixed price, boosting fuel diversity, lowering landfill waste, and saving customers money.

 

Key Points

A fixed-price PPA for 13.65 MW from Bay County's waste-to-energy plant, approved by Florida PSC to cut costs.

✅ Fixed-price purchase; pay only for energy produced.

✅ 13.65 MW from Bay County waste-to-energy facility.

✅ Cuts landfill waste and natural gas dependency.

 

The Florida Public Service Commission (PSC) approved Tuesday a contract under which Gulf Power Company will purchase all the electricity generated by the Bay County Resource Recovery Facility, a municipal solid waste plant, similar to SaskPower-Manitoba Hydro deal structures seen elsewhere, over the next six years.

“Gulf’s renewable energy purchase promotes Florida’s fuel diversity, further reducing our dependency on natural gas,” PSC Chairperson Julie Brown said. “This renewable energy option also reduces landfill waste, saves customers money, and serves the public interest.”

The contract provides for Gulf to acquire the Panama City facility’s 13.65 megawatts of renewable generation for its customers beginning in July 2017. Gulf will pay a fixed price, aligned with approaches in Alberta's clean electricity RFP programs, and only pays for the energy produced. The contract is expected to save approximately $250,000 and provides security for customers, a contrast to overruns at the Kemper power plant project, because if the plant does not supply energy, Gulf does not have to provide payment.

This contract is the third renewable energy contract between Gulf and Bay County, at a time when the Southern California plant closures may be postponed, continuing agreements approved in 2008 and 2014. In making the decision, the PSC considered Gulf’s need for power and developments such as the Turkey Point license renewal process, as well as the contract’s cost-effectiveness, payment provisions, and performance guarantees, as required by rule.

 

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Warren Buffett-linked company to build $200M wind power farm in Alberta

Rattlesnake Ridge Wind Project delivers 117.6 MW in southeast Alberta for BHE Canada, a Berkshire Hathaway Energy subsidiary, using 28 turbines near Medicine Hat under a long-term PPA, supplying renewable power to 79,000 homes.

 

Key Points

A 117.6 MW Alberta wind farm by BHE Canada supplying 79,000 homes via 28 turbines and a long-term PPA.

✅ 28 turbines near Medicine Hat, 117.6 MW capacity

✅ Long-term PPA with a major Canadian corporate buyer

✅ Developed with RES; no subsidies; competitive pricing

 

A company linked to U.S. investor Warren Buffett says it will break ground on a $200-million, 117.6-megawatt wind farm in southeastern Alberta next year.

In a release, Calgary-based BHE Canada, a subsidiary of Buffett's Berkshire Hathaway Energy, says its Rattlesnake Ridge Wind project will be located southwest of Medicine Hat and will produce enough energy to supply the equivalent of 79,000 homes.

"We felt that it was time to make an investment here in Alberta," said Bill Christensen, vice-president of corporate development for BHE Canada, in an interview with the Calgary Eyeopener.

"The structure of the markets here in Alberta, including frameworks for selling renewable energy, make it so that we can invest, and do it at a profit that works for us, and at a price that works for the off-taker," Christensen explained.

Berkshire Hathaway Energy also owns AltaLink, the regulated transmission company that supplies electricity to more than 85 per cent of the Alberta population.

BHE Canada says an unnamed large Canadian corporate partner has signed a long-term power purchase agreement, similar to RBC's solar purchase arrangements, for the majority of the energy output generated by the 28 turbines at Rattlesnake Ridge.

"If you look at just the raw power price that power is going for in Alberta right now, it's averaged around $55 a megawatt hour, or 5.5 cents a kilowatt hour. And we're selling the wind power to this customer at substantially less than that, reflecting wind power's competitiveness in the market, and there's been no subsidies," Christensen said.

 

Positive energy outlook

Christensen said he sees a good future for Alberta's renewable energy industry, not just in wind but also in solar power growth, particularly in the southeast of the province.

But he says BHE Canada is interested in making investments in traditional energy in Alberta, too, as the province is a powerhouse for both green energy and fossil fuels overall.

"It's not a choice of one or the other. I think there is still opportunity to make investments in oil and gas," he said.

"We're really excited about having this project and hope to be able to make other investments here in Alberta to help support the economy here, amid a broader renewable energy surge across the province."

The project is being developed by U.K.-based Renewable Energy Systems, part of a trend where more energy sources make better projects for developers, which is building two other Alberta wind projects totalling 134.6 MW this year and has 750 MW of renewable energy installed or currently under construction in Canada.

BHE Canada and RES are also looking for power purchase partners for the proposed Forty Mile Wind Farm in southeastern Alberta. They say that with generation capacity of 398.5 MW, it could end up being the largest wind power project in Canada.

 

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Hinkley C nuclear reactor roof lifted into place

Hinkley Point C dome lift marks a nuclear reactor milestone in Somerset, as EDF used Big Carl crane to place a 245-tonne steel roof, enabling 2027 startup amid costs, delays, and precision indoor welding.

 

Key Points

A 245-tonne dome lifted onto Hinkley Point C's first reactor, finishing the roof and enabling fit-out for a 2027 startup.

✅ 245-tonne steel dome lifted by Big Carl onto 44m-high reactor

✅ Indoor welding avoided weather defects seen at Flamanville

✅ Cost now £33bn; first power targeted by end of 2027

 

Engineers have lifted a steel roof onto a building which will house the first of two nuclear reactors at Hinkley Point in Somerset.

Hundreds of people helped with the delicate operation to get the 245-tonne steel dome into position.

It means the first reactor can be installed next year, ready to be switched on in June 2027.

Engineers at EDF said the "challenging job" was completed in just over an hour.

They first broke the ground on the new nuclear station in March 2017. Now, some 10,000 people work on what is Europe's largest building site.

Yet many analysts note that Europe is losing nuclear power even as demand for reliable energy grows.

They have faced delays from Covid restrictions and other recent setbacks, and the budget has doubled to £33bn, so getting the roof on the first of the two reactor buildings is a big deal.

EDF's nuclear island director Simon Parsons said it was a "fantastic night".

"Lifting the dome into place is a celebration of all the work done by a fantastic team. The smiles on people's faces this morning were something else.

"Now we can get on with the fitting of equipment, pipes and cables, including the first reactor which is on site and ready to be installed next year."

Nuclear minister Andrew Bowie hailed the "major milestone" in the building project, citing its role in the UK's green industrial revolution ambitions.

He said: "This is a key part of the UK Government's plans to revitalise nuclear."

But many still question whether Hinkley Point C will be worth all the money, especially after Hitachi's project freeze in Britain, with Roy Pumfrey of the Stop Hinkley campaign describing the project as "shockingly bad value".


Why lift the roof on?

The steel dome is bigger than the one on St Paul's Cathedral in London.

To lift it onto the 44-metre-high reactor building, they needed the world's largest land-based crane, dubbed Big Carl by engineers.

So why not just build the roof on top of the building?

The answer lies in a remote corner of Normandy in France, near a village called Flamanville.

EDF has been building a nuclear reactor there since 2007, ten years before they started in west Somerset.

The project is now a decade behind schedule and has still not been approved by French regulators.

Why? Because of cracks found in the precision welding on the roof of the reactor building.

In nuclear-powered France, they built the roof in situ, out in the open. 

Engineers have decided welding outside, exposed to wind and rain, compromised the high standards needed for a nuclear reactor.

So in Somerset they built a temporary workshop, which looks like a fair sized building itself. All the welding has been done inside, and then the completed roof was lifted into place.


Is it on time or on budget?

No, neither. When Hinkley C was first approved a decade ago, EDF said it would cost £14bn.

Four years later, in 2017, they finally started construction. By now the cost had risen to £19.5bn, and EDF said the plant would be finished by the end of 2025.

Today, the cost has risen to £33bn, and it is now hoped Hinkley C will produce electricity by the end of 2027.

"Nobody believes it will be done by 2027," said campaigner Roy Pumfrey.

"The costs keep rising, and the price of Hinkley's electricity will only get dearer," they added.

On the other hand, the increase in costs is not a problem for British energy bill payers, or the UK government.

EDF agreed to pay the full cost of construction, including any increases.

When I met Grant Shapps, then the UK Energy Secretary, at the site in April, he shrugged off the cost increases.

He said: "I think we should all be rather pleased it is not the British tax payer - it is France and EDF who are paying."

In return, the UK government agreed a set rate for Hinkley's power, called the Strike Price, back in 2013. The idea was this would guarantee the income from Hinkley Point for 35 years, allowing investors to get their money back.


Will it be worth the money?

Back in 2013, the Strike Price was set at £92.50 for each megawatt hour of power. At the time, the wholesale price of electricity was around £50/MWh, so Hinkley C looked expensive.

But since then, global shocks like the war in Ukraine have increased the cost of power substantially, and advocates argue next-gen nuclear could deliver smaller, cheaper, safer designs.

 

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