India's solar plan moves ahead

By United Press International


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The draft of India's ambitious National Solar Mission plan, aimed at reducing emissions and easing the country's crippling power shortages, was endorsed in principle by the prime minister's Council on Climate Change, Press Trust of India reports.

India, the world's fourth-largest emitter of greenhouse gases, would reduce its reliance on dirty coal under the plan. India's solar power generating capacity would jump from its current near-zero level to 20 gigawatts by 2020, to 100 gigawatts by 2030 and 200 gigawatts by 2050.

India's crippling power shortage represents one of the largest obstacles to economic growth, leaving some 400 million Indians without electricity amid daily blackouts. According to India's Power Ministry, electricity demand outstripped supply by 13.8 percent during peak hours in 2008-2009.

Under the draft plan, the cost of solar power would be reduced to the same level as fossil fuels. India has abundant supplies of coal but relies on imports for 70 percent of its crude oil and 50 percent of its gas.

The three-phase National Solar Mission "would be the most ambitious solar plan that any country has laid out so far," said Siddharth Pathak, a climate and energy campaigner for Greenpeace India, The New York Times reported in June.

Under the plan, India would spend $18.5 billion to $22.8 billion over a 30-year period, to be financed in part by taxes on government-subsidized gasoline and diesel.

According to the draft plan, the objective of Phase I (2009-2012), for example, "will be to achieve rapid scale up to drive down costs, to spur domestic manufacturing and to validate the technological and economic viability of different solar applications."

India's target is 1 million rooftop solar energy systems and solar lighting for 20 million households by 2020. The plan would involve micro-financing initiatives, including a payback system for surplus solar power fed back into the grid.

The National Solar Mission plan calls for India to invest $23 billion for developing, manufacturing and installing solar technology over the next 30 years.

India has the potential to reduce its emissions by almost 60 million tons a year under the plan and save approximately 1.05 billion liters of diesel, a billion liters of kerosene and 350 million liters of fuel oil each year by 2020.

"India's putting a very strong argument in front of developed countries that it has huge potential for renewable energy," said Pathak of Greenpeace, the Times of London reported.

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What to know about the big climate change meeting in Katowice, Poland

COP24 Climate Talks in Poland gather nearly 200 nations to finalize the Paris Agreement rulebook, advance the Talanoa Dialogue, strengthen emissions reporting and transparency, and align finance, technology transfer, and IPCC science for urgent mitigation.

 

Key Points

UNFCCC summit in Katowice to finalize Paris rules, enhance transparency, and drive stronger emissions cuts.

✅ Paris rulebook on reporting, transparency, markets, and timelines

✅ Talanoa Dialogue to assess gaps and raise ambition by 2020

✅ Finance and tech transfer for developing countries under UNFCCC

 

Delegates from nearly 200 countries have assembled this month in Katowice, Poland — the heart of coal country — to try to move the ball forward on battling climate change.

It’s now the 24th annual meeting, or “COP” — conference of the parties — under the landmark U.N. Framework Convention on Climate Change, which the United States signed under then-President George H.W. Bush in 1992. More significantly, it’s the third such meeting since nations adopted the Paris climate agreement in 2015, widely seen at the time as a landmark moment in which, at last, developed and developing countries would share a path toward cutting greenhouse gas emissions, as Obama's clean energy push sought to lock in momentum.

But the surge of optimism that came with Paris has faded lately. The United States, the second largest greenhouse gas emitter, said it would withdraw from the agreement, though it has not formally done so yet. Many other countries are off target when it comes to meeting their initial round of Paris promises — promises that are widely acknowledged to be too weak to begin with. And emissions have begun to rise after a brief hiatus that had lent some hope of progress.

The latest science, meanwhile, is pointing toward increasingly dire outcomes. The amount of global warming that the world already has seen — 1 degree Celsius, 1.8 degrees Fahrenheit — has upended the Arctic, is killing coral reefs and may have begun to destabilize a massive part of Antarctica. A new report from the U.N.'s Intergovernmental Panel on Climate Change (IPCC), requested by the countries that assembled in Paris to be timed for this year’s meeting, finds a variety of increasingly severe effects as soon as a rise of 1.5 degrees Celsius arrives — an outcome that can’t be avoided without emissions cuts so steep that they would require societal transformations without any known historical parallel, the panel found.

It’s in this context that countries are meeting in Poland, with expectations and stakes high.

So what’s on the agenda in Poland?

The answer starts with the Paris agreement, which was negotiated three years ago, has been signed by 197 countries and is a mere 27 pages long. It covers a lot, laying out a huge new regime not only for the world as a whole to cut its greenhouse gas emissions, but for each individual country to regularly make new emissions-cutting pledges, strengthen them over time, report emissions to the rest of the world and much more. It also addresses financial obligations that developed countries have to developing countries, including how to achieve clean and universal electricity at scale, and how technologies will be transferred to help that.

But those 27 pages leave open to interpretation many fine points for how it will all work. So in Poland, countries are performing a detailed annotation of the Paris agreement, drafting a “rule book” that will span hundreds of pages.

That may sound bureaucratic, but it’s key to addressing many of the flash points. For instance, it will be hard for countries to trust that their fellow nations are cutting emissions without clear standards for reporting and vetting. Not everybody is ready to accept a process like the one followed in the United States, which not only publishes its emissions totals but also has an independent review of the findings.

“A number of the developing countries are resisting that kind of model for themselves. They see it as an intrusion on their sovereignty,” said Alden Meyer, director of strategy and policy at the Union of Concerned Scientists and one of the many participants in Poland this week. “That’s going to be a pretty tough issue at the end of the day.”

It’s hardly the only one. Also unclear is what countries will do after the time frames on their current emissions-cutting promises are up, which for many is 2025 or 2030. Will all countries then start reporting newer and more ambitious promises every five years? Every 10 years?

That really matters when five years of greenhouse gas emissions — currently about 40 billion tons of carbon dioxide annually — are capable of directly affecting the planet’s temperature.

What can we expect each day?

The conference is in its second week, when higher-level players — basically, the equivalent of cabinet-level leaders in the United States — are in Katowice to advance the negotiations.

As this happens, several big events are on the agenda. On Tuesday and Wednesday is the “Talanoa Dialogue,” which will bring together world leaders in a series of group meetings to discuss these key questions: “Where are we? Where do we want to go? How do we get there?”

Friday is the last day of the conference, but pros know these events tend to run long. On Friday — or after — we will be waiting for an overall statement or decision from the meeting which may signal how much has been achieved.

What is the “Talanoa Dialogue”?

“Talanoa” is a word used in Fiji and in many other Pacific islands to refer to “the sharing of ideas, skills and experience through storytelling.” This is the process that organizers settled on to fulfill a plan formed in Paris in 2015.

That year, along with signing the Paris agreement, nations released a decision that in 2018 there should be a “facilitative dialogue" among the countries “to take stock” of where their efforts stood to reduce greenhouse gas emissions. This was important because going into that Paris meeting, it was already clear that countries' promises were not strong enough to hold global warming below a rise of 2 degrees Celsius (3.6 degrees Fahrenheit) above preindustrial temperatures.

This dialogue, in the Talanoa process, was meant to prompt reflection and maybe even soul searching about what more would have to be done. Throughout the year, “inputs” to the Talanoa dialogue — most prominently, the recent report by the United Nations' Intergovernmental Panel on Climate Change on the meaning and consequences of 1.5 degrees Celsius of warming —have been compiled and synthesized. Now, over two days in Poland, countries' ministers will assemble to share stories in small groups about what is working and what is not and to assess where the world as a whole is on achieving the required greenhouse gas emissions reductions.

What remains to be seen is whether this process will culminate in any kind of product or statement that calls clearly for immediate, strong ramping up of climate change promises across the world.

With the clock ticking, will countries do anything to increase their ambition at this meeting?

If negotiating the Paris rule book sounds disappointingly technical, well, you’re not the only one feeling that way. Pressure is mounting for countries to accomplish something more than that in Poland — to at minimum give a strong signal that they understand that the science is looking worse and worse, and the world’s progress on the global energy transition isn’t matching that outlook.

“The bigger issue is how we’re going to get to an outcome on greater ambition,” said Lou Leonard, senior vice president for climate and energy at the World Wildlife Fund, who is in Poland observing the talks. “And I think the first week was not kind on moving that part of the agenda forward.”

Most countries are not likely to make new emissions-cutting promises this week. But there are two ways that the meeting could give a strong statement that countries should — or will — come up with new promises at least by 2020. That’s when extremely dramatic emissions cuts would have to start, including progress toward net-zero electricity by mid-century, according to the recent report on 1.5 degrees Celsius of warming.

The first is the aforementioned “Talanoa dialogue” (see above). It’s possible that the outcome of the dialogue could be a statement acknowledging that the world isn’t nearly far enough along and calling for much stronger steps.

There will also be a decision text released for the meeting as a whole, which could potentially send a signal. Leonard said he hopes that would include details for the next steps that will put the world on a better course.

“We have to create milestones, and the politics around it that will pressure countries to do something that quite frankly they don’t want to do,” he said. “It’s not going to be easy. That’s why we need a process that will help make it happen. And make the most of the IPCC report that was designed to come out right now so it could do this for us. That’s why we have it, and it needs to serve that role.”

The United States says it will withdraw from the agreement, so what role is it playing in Poland?

Despite President Trump’s pledge to withdraw, the United States remains in the Paris agreement (for now) and has sent a delegation of 44 people to Poland, largely from the State Department but also from the Environmental Protection Agency, Energy Department and even the White House, while domestically a historic U.S. climate law has recently passed to accelerate clean energy. Many of these career government officials remain deeply engaged in hashing out details of the agreement.

Still, the country as a whole is being cast in an antagonistic role in the talks.

 

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Recommendations from BC Hydro review to keep electricity affordable

BC Hydro Review Phase 2 Recommendations advance affordable electricity rates, clean energy adoption, electrification, and demand response, supporting heat pumps, EV charging, and low-income programs to cut emissions and meet CleanBC climate targets.

 

Key Points

Policies to keep rates affordable and accelerate clean electrification via heat pump, EV, and demand response incentives.

✅ Optional rates, heat pump and EV charging incentives

✅ Demand response via controllable devices lowers peak loads

✅ Expanded support for lower-income customers and affordability

 

The Province and BC Hydro have released recommendations from Phase 2 of the BC Hydro Review to keep rates affordable, including through a provincial rate freeze initiative that supported households, and encourage greater use of clean, renewable electricity to reduce emissions and achieve climate targets.

“Keeping life affordable for people is a key priority of our government,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “Affordable electricity rates not only help British Columbians, they help ensure the price of electricity remains competitive with other forms of energy, supporting the transition away from fossil fuels to clean electricity in our homes and buildings, vehicles and businesses.”

While affordable rates have always been important to BC Hydro customers, amid proposals such as a modest rate increase under review, expectations are also changing as customers look to have more choice and control over their electricity use and opportunities to save money.

Guided by input from a panel of external energy industry experts, government and BC Hydro have developed recommendations under Phase 2 of the BC Hydro Review to reduce electricity costs for individuals and businesses, even as a 3.75% increase has been discussed, as envisioned by the CleanBC climate strategy. This is also in alignment with TogetherBC, the Province’s poverty reduction strategy, and its guiding principle of affordability.

“As we promote increased use of electricity in B.C. to achieve our climate targets, we need to continue to focus on keeping electricity rates affordable, especially for lower-income families,” said Nicholas Simons, Minister of Social Development and Poverty Reduction. “Through the BC Hydro Review, and continuing engagement with stakeholders and organizations to follow, we are committed to finding ways to keep rates affordable, so everyone has access to the benefits of B.C.’s clean, reliable electricity.”

Recommendations include having BC Hydro consider providing more support for lower-income BC Hydro customers, informed by a recent surplus report that highlighted funding opportunities. These include incentives and exploring optional rates for customers to adopt electric heat pumps, and facilitating customer adoption of controllable energy devices that provide BC Hydro the ability to offer incentives in return for helping to manage a customer’s electricity use. 

Electrification of B.C.’s economy helps customers reduce their carbon footprint and supports the Province’s CleanBC climate strategy, and is an important part of keeping electricity affordable even amid higher BC Hydro rates in recent periods. As more customers make the switch from fossil fuels to using clean electricity in their homes, vehicles and businesses, BC Hydro’s electricity sales will increase, providing more revenue that helps keep rates affordable for everyone.

“We’re making the transition to a cleaner future more affordable for people and businesses across British Columbia through our CleanBC plan,” said George Heyman, Minister of Environment and Climate Change Strategy. “By working with BC Hydro and other partners, we’re making sure everyone has access to clean, affordable electricity to power technologies like high-efficiency heat pumps and electric vehicles that will reduce harmful pollution and improve our homes, buildings and communities.”

Chris O’Riley, president and CEO, BC Hydro, said: “Given the impact of COVID-19 on British Columbians, affordability is more important than ever. That’s why we are committed to continuing to keep rates affordable and offering customers more options that allow them to save on their bills while using clean electricity.”

In July 2021, the Province announced a first set of recommendations from Phase 2 of the BC Hydro Review amid a 3% rate increase approved by regulators. The next announcement from Phase 2 will include recommendations to increase the number of electric vehicles on the road.

In addition, as part of the Draft Action Plan to advance the Declaration on the Rights of Indigenous Peoples Act, the Province is proposing to engage with Indigenous peoples to identify and support new clean energy opportunities related to CleanBC, the BC Hydro Review and the British Columbia Utilities Commission Indigenous Utilities Regulation Inquiry, and to consider lessons from Ontario's hydro policy experiences as appropriate.

B.C. is the cleanest electricity-generation jurisdiction in western North America, with an average of 98% of its electricity generation coming from clean or renewable resources.

 

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India's Solar Growth Slows with Surge in Coal Generation

India Solar Slowdown and Coal Surge highlights policy uncertainty, grid stability concerns, financing gaps, and land acquisition issues affecting renewable energy, emissions targets, energy security, storage deployment, and tendering delays across the solar value chain.

 

Key Points

Analysis of slowed solar growth and rising coal in India, examining policy, grid, finance, and emissions tradeoffs.

✅ Policy uncertainty and tender delays stall solar pipelines

✅ Grid bottlenecks, storage gaps, and curtailment risks persist

✅ Financing strains and DISCOM payment delays dampen investment

 

India, a global leader in renewable energy adoption where renewables surpassed coal in capacity recently, faces a pivotal moment as the growth of solar power output decelerates while coal generation sees an unexpected surge. This article examines the factors contributing to this shift, its implications for India's energy transition, and the challenges and opportunities it presents.

India's Renewable Energy Ambitions

India has set ambitious targets to expand its renewable energy capacity, including a goal to achieve 175 gigawatts (GW) of renewable energy by 2022, with a significant portion from solar power. Solar energy has been a focal point of India's renewable energy strategy, as documented in on-grid solar development studies, driven by falling costs, technological advancements, and environmental imperatives to reduce greenhouse gas emissions.

Factors Contributing to Slowdown in Solar Power Growth

Despite initial momentum, India's solar power growth has encountered several challenges that have contributed to a slowdown. These include policy uncertainties, regulatory hurdles, land acquisition issues, and financial constraints affecting project development and implementation, even as China's solar PV growth surged in recent years. Delays in tendering processes, grid connectivity issues, and payment delays from utilities have also hindered the expansion of solar capacity.

Surge in Coal Generation

Concurrently, India has witnessed an unexpected increase in coal generation in recent years. Coal continues to dominate India's energy mix, accounting for a significant portion of electricity generation due to its reliability, affordability, and existing infrastructure, even as wind and solar surpassed coal in the U.S. in recent periods. The surge in coal generation reflects the challenges in scaling up renewable energy quickly enough to meet growing energy demand and address grid stability concerns.

Implications for India's Energy Transition

The slowdown in solar power growth and the rise in coal generation pose significant implications for India's energy transition and climate goals. While renewable energy remains central to India's long-term energy strategy, and as global renewables top 30% of electricity generation worldwide, the persistence of coal-fired power plants complicates efforts to reduce carbon emissions and mitigate climate change impacts. Balancing economic development, energy security, and environmental sustainability remains a complex challenge for policymakers.

Challenges and Opportunities

Addressing the challenges facing India's solar sector requires concerted efforts to streamline regulatory processes, improve grid infrastructure, and enhance financial mechanisms to attract investment. Encouraging greater private sector participation, promoting technology innovation, and expanding renewable energy storage capacity are essential to overcoming barriers and accelerating solar power deployment, as wind and solar have doubled their global share in recent years, demonstrating the pace possible.

Policy and Regulatory Framework

India's government plays a crucial role in fostering a conducive policy and regulatory framework to support renewable energy growth and phase out coal dependence, particularly as renewable power is set to shatter records worldwide. This includes implementing renewable energy targets, providing incentives for solar and other clean energy technologies, and addressing systemic barriers that hinder renewable energy adoption.

Path Forward

To accelerate India's energy transition and achieve its renewable energy targets, stakeholders must prioritize integrated energy planning, grid modernization, and sustainable development practices. Investing in renewable energy infrastructure, promoting energy efficiency measures, and fostering international collaboration on technology transfer and capacity building are key to unlocking India's renewable energy potential.

Conclusion

India stands at a crossroads in its energy transition journey, balancing the need to expand renewable energy capacity while managing the challenges associated with coal dependence. By addressing regulatory barriers, enhancing grid reliability, and promoting sustainable energy practices, India can navigate towards a more diversified and resilient energy future. Embracing innovation, strengthening policy frameworks, and fostering public-private partnerships will be essential in realizing India's vision of a cleaner, more sustainable energy landscape for generations to come.

 

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Advanced Reactors Will Stand On The Shoulders Of Giants

Advanced Nuclear Reactors redefine nuclear energy with SMRs, diverse fuels, passive safety, digital control rooms, and flexible heat and power, pairing veteran operator expertise with cost-efficient, carbon-free electricity for a resilient grid.

 

Key Points

SMR-based advanced reactors with passive cooling and digital controls deliver flexible power and process heat.

✅ Veteran operators transfer proven safety culture and risk management.

✅ SMRs, passive safety, and digital controls simplify operations.

✅ Flexible output: electricity, process heat, and grid support.

 

Advanced reactors will break the mold of what we think next-gen nuclear power can accomplish: some will be smaller, some will use different kinds of fuel and others will do more than just make electricity. This new technology may seem like uncharted waters, but when operators, technicians and other workers start up the first reactors of the new generation, they will bring with them years of nuclear experience to run machines that have been optimized with lessons from the current fleet.

While advanced reactors are often portrayed as the future of nuclear energy, and atomic energy is heating up across markets, its our current plants that have paved the way for these exciting innovations and which will be workhorses for years to come.

 

Reactor Veterans Bring Their Expertise to New Designs

Many of the workers who will operate the next generation of reactors come from a nuclear background. Even though the design of an advanced reactor may be different, the experience and instincts these operators have gained from working at the current fleet will help new plants get off to a more productive start.

They have a questioning attitude; they are always exploring what could go wrong and always understanding the notion of risk management in nuclear operations, whether its the oldest design or the newest design, said Chip Pardee, the president of Terrestrial Energy USA, who is the former chief operating officer at two nuclear utilities, Exelon Corp. and the Tennessee Valley Authority.

They have respect for the technology and a bias towards conservative decision-making.

Jhansi Kandasamy, vice president of engineering at GE Hitachi Nuclear Energy, agrees. She said that the presence of industry veterans will benefit the new modelslike the 300 megawatt boiling water reactor her company is developing.

From the beginning, a new reactor will have people who have touched it, worked on it, and experienced it, she said.

Theyre going to be able to tell you if something doesnt look right, because theyve lived through it.

 

Experience Informs New Reactor Design

Advanced reactors are designed by engineers who are fully familiar with existing plants and can use that experience to optimize the new ones, like a family building a house and wanting the kitchen just so. New reactors will be simpler to operate because of insights gained from years of operations of the current fleet, and some designs even integrate molten salt energy storage to enhance flexibility.

NuScale Power LLC, for example, has a very different design from the current fleet amid an advanced nuclear push that is reshaping development: up to 12 small reactorsinstead of one or two large reactorsmanaged from a single digital control roominstead of one full of analog switches and dials. When the company designed its control room, it brought in industry veterans who had collectively worked at more than two dozen nuclear plants.

The experts that NuScale brought in critiqued everything, even down to the shape of the symbols on the computer screens to make them easier to read for operators who sometimes need to quickly interpret lots of incoming data. The control panels for NuScales small modular reactor (SMR) present information according to its importance and automatically call up appropriate procedures for operators.

Many advanced reactors are also smaller than those currently operating, which makes their components simpler and less expensive. Kandasamy pointed out that the giant mechanical pumps in todays reactors generate a lot of heat and require a lot of supporting systems, including air conditioning in the rooms that house them.

GE Hitachis SMR design relies more on passive cooling so it needs fewer pumps, and those that remain use magnets, so they generate less heat. Fewer, smaller pumps means a smaller building and less cost.

 

Advanced Nuclear Will Further the Work of Current Reactors

Advanced reactors promise improved flexibility and the ability to do more kinds of work, including nuclear beyond electricity applications, to displace carbon and stabilize the climate. And they will continue nuclear energys legacy of providing reliable, carbon-free electricity, as a recent new U.S. reactor startup illustrates in practice. As new designs come on line over the next decade, we will continue to rely on operating plants which provide nearly 55 percent of the countrys carbon-free electricity.

The world will need all the carbon-free generation it can get for many years to come, as companies, states and countries aim for zero emissions by mid-century and pursue strategies like the green industrial revolution to accelerate deployment. That means it will need wind, solar, advanced reactors and current plants.

 

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Calgary electricity retailer urges government to scrap overhaul of power market

Alberta Capacity Market Overhaul faces scrutiny over electricity costs, reliability targets, investor certainty, and AESO design, as UCP reviews NDP reforms, renewables integration, and deregulated energy-only alternatives impacting generators, ratepayers, and future power price volatility.

 

Key Points

A shift paying generators for capacity and energy to improve reliability; critics warn of higher electricity costs.

✅ UCP reviewing NDP plan and subsidies amid market uncertainty

✅ AESO cites reliability needs as coal retires, renewables grow

✅ Critics predict overprocurement and premature launch cost spikes

 

Jason Kenney's government is facing renewed pressure to cancel a massive overhaul of Alberta's power market that one player says will needlessly spike costs by hundreds of millions of dollars, amid an electricity sector in profound change today.

Nick Clark, who owns the Calgary-based electricity retailer Spot Power, has sent the Alberta government an open letter urging it to walk away from the electricity market changes proposed by the former NDP government.

"How can you encourage new industry to open up when one of their raw material costs will increase so dramatically?" Clark said. "The capacity market will add more costs to the consumer and it will be a spiral downwards."

But NDP Leader Rachel Notley, whose government ushered in the changes, said fears over dramatic cost increases are unfounded.

"There are some players within the current electricity regime who have a vested interest in maintaining the current situation," Notley said

Kenney's UCP vowed during the recent election to review the current and proposed electricity market options, as the electricity market heads for a reshuffle, with plans to report on its findings within 90 days.

The party also promised to scrap subsidies for renewable power, while ensuring "a market-based electricity system" that emphasizes competition in Alberta's electricity market for consumers.

The New Democrats had opted to scrap the current deregulated power market — in place since the Klein era — after phasing out coal-fired generation and ushering in new renewable power as part of changes in how Alberta produces and pays for electricity under their climate change strategy.

The Alberta Electric System Operator, which oversees the grid, says the province will need new sources of electricity to replace shuttered coal plants and backstop wind and solar generators, while meeting new consumer demand.

After consulting with power companies and investors, the AESO concluded in late 2016 the electricity market couldn't attract enough investment to build the needed power generation under the current model.

The AESO said at the time investors were concerned their revenues would be uncertain once new plants are running. It recommended what's known as a capacity market, which compensates power generators for having the ability to produce electricity, even when they're not producing it.

In other words, producers would collect revenue for selling electricity into the grid and, separately, for having the capacity to produce power as a backstop, ensuring the lights stay on. Power generators would use this second source of income to help cover plant construction costs.

Clark said the complex system introduces unnecessary costs, which he believes would hurt consumers in the end. He said what's preventing investment in the power market is uncertainty over how the market will be structured in the future.

"What investors need to see in this market is price certainty, regulatory ease, and where the money they're putting into the marketplace is not at risk," he said.

"They can risk their own money, but if in fact the government comes in and changes the policy as it was doing, then money stayed away from the province."

Notley said a capacity market would not increase power bills but would avoid big price swings, with protections like a consumer price cap on power bills also debated, while bringing greener sources of energy into Alberta's grid.

"Moving back to the [deregulated] energy-only market would make a lot of money for a few people, and put consumers, both industrial and residential, at great risk."

Clark disagrees, citing Enmax's recent submissions to the Alberta Utilities Commission, in which the utility argues the proposed design of the capacity market is flawed.

In its submissions to the commission, which is considering the future of Alberta's power market, Enmax says the proposed system would overestimate the amount of generation capacity the province will need in the future. It says the calculation could result in Alberta procuring too much capacity.

The City of Calgary-owned utility says this could drive up costs by anywhere from $147 million to $849 million a year. It says a more conservative calculation of future electricity demand could avoid the extra expense.

An analysis by a Calgary energy consulting firm suggests a different feature of the proposed power market overhaul could also lead to a massive spike in costs.

EDC Associates, hired by the Consumers' Coalition of Alberta, argues the proposal to launch the new system in November 2021 may be premature, because it could bring in additional supplies of electricity before they're needed.

The consultant's report, also filed with the Alberta Utilities Commission, estimates the early launch date could require customers to pay 40 per cent more for electricity amid rising electricity prices in the province — potentially an extra $1.4 billion — in 2021/22.

"The target implementation date is politically driven by the previous government," said Duane Reid-Carlson, president of EDC Associates.

Reid-Carlson recommends delaying the launch date by several years and making another tweak: reducing the proposed target for system reliability, which would scale back the amount of power generation needed to backstop renewable sources.

"You could get a result in the capacity market that would give a similar cost to consumers that the [deregulated] energy-only market design would have done otherwise," he said.

"You could have a better risk profile associated with the capacity market that would serve consumers better through lower cost, lower price volatility, and it would serve generators better by giving them better access to capital at lower costs."

The UCP government did not respond to a request for comment.

 

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Ontario energy minister asks for early report exploring a halt to natural gas power generation

Ontario Natural Gas Moratorium gains momentum as IESO weighs energy storage, renewables, and demand management to meet rising electricity demand, ensure grid reliability, and advance zero-emissions goals while long-term capacity procurements proceed.

 

Key Points

A proposed halt on new gas plants as IESO assesses storage and renewables to maintain reliability and cut emissions.

✅ Minister seeks interim IESO report by Oct. 7

✅ Near-term contracts extend existing gas plants for reliability

✅ Long-term procurements emphasize storage, renewables, conservation

 

Ontario's energy minister says he doesn't think the province needs any more natural gas generation and has asked the electricity system regulator to speed up a report exploring a moratorium.

Todd Smith had previously asked the Independent Electricity System Operator (IESO) to report back by November on the feasibility of a moratorium and a plan to get to zero emissions in the electricity sector.

He has asked them today for an interim report by Oct. 7 so he can make a decision on a moratorium before the IESO secures contracts over the long term for new power generation.

"I've asked the IESO to speed up that report back to us so that we can get the information from them as to what the results would be for our grid here in Ontario and whether or not we actually need more natural gas," Smith said Tuesday after question period.

"I don't believe that we do."

Smith said that is because of the "huge success" of two updates provided Tuesday by the IESO to its attempts to secure more electricity supply for both the near term and long term. Demand is growing by nearly two per cent a year, while Ontario is set to lose a significant amount of nuclear generation, including the planned shutdown of the Pickering nuclear station over the next few years.

'For the near term, we need them,' regulator says
The regulator today released a list of 55 qualified proponents for those long-term bids and while it says there is a significant amount of proposed energy storage projects on that list, there are some new gas plants on it as well.

Chuck Farmer, the vice-president of planning, conservation and resource adequacy at the IESO, said it's hoped that the minister makes a decision on whether or not to issue a moratorium on new gas generation before the regulator proceeds with a request for proposals for long-term contracts.

The IESO also announced six new contracts — largely natural gas, with a small amount of wind power and storage — to start in the next few years. Farmer noted that these contracts were specifically for existing generators whose contracts were ending, while the province is exploring new nuclear plants for the longer term.

"When you look at the pool of generation resources that were in that situation, the reality is most of them were actually natural gas plants, and that we are relying on the continued use of the natural gas plants in the transition," he said in an interview. 

"So for the near term, we need them for the reliability of the system."

The upcoming request for proposals for more long-term contracts hopes to secure 3,500 megawatts of capacity, as Ontario faces an electricity shortfall in the coming years, and Farmer said the IESO plans to run a series of procurements over the next few years.

Opposition slams reliance on natural gas
The NDP and Greens on Tuesday criticized Ontario's reliance in the near term on natural gas because of its environmental implications.

The IESO has said that due to natural gas, greenhouse gas emissions from the electricity sector are set to increase for the next two decades, but by about 2038 it projects the net reductions from electric vehicles will offset electricity sector emissions.

Green Party Leader Mike Schreiner said it makes no sense to ramp up natural gas, both for the climate and for people's wallets.

"The cost of wind and solar power is much lower than gas," he said.

Ontario quietly revises its plan for hitting climate change targets
"We're in a now-or-never moment to address the climate crisis and the government is failing to meet this moment."

Interim NDP Leader Peter Tabuns said Ontario wouldn't be in as much of a supply crunch if the Progressive Conservative government hadn't cancelled 750 green energy contracts during their first term.

The Tories argued the province didn't need the power and the contracts were driving up costs for ratepayers, amid debate over whether greening the grid would be affordable.

The IESO said it is also proposing expanding conservation and demand management programs, as a "highly cost-effective" way to reduce strain on the system, though it couldn't say exactly what is on the table until the minister accepts the recommendation.

 

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