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Pickering Nuclear Plant Extension faces CNSC approval as Ontario Power Generation pursues license renewal before the June 30, 2023 deadline, amid a 2025 capacity crunch and grid reliability risks from decommissioning and overlapping nuclear outages.

Key Points

A plan to run Pickering past 2024 to Sept 2026, pending CNSC license renewal to address Ontario's 2025 capacity gap.

✅ CNSC approval needed for operation beyond Dec 31, 2024

✅ OPG aims to file by June 30, 2023 deadline

✅ Extension targets grid reliability through 2026

Ontario’s electricity generator has yet to file an official application to extend the life of the Pickering nuclear power plant, more than eight months after the Ford government announced a plan to continue operating Pickering for longer.

As the province faces an electricity shortfall in 2025 and beyond, the Ford government scrambled to prolong the Pickering power plant until September 2026, in order to guarantee a steady supply of power as the province experiences a rise in demand and shutdowns at other nuclear power plants.

The life extension may come down to the wire, however, as the Canadian Nuclear Safety Commission (CNSC), the federal regulator tasked with approving or denying the extension, tells Global News the province has yet to file key paperwork.

The information is required for the application, including materials related to the proposed Pickering B refurbishment, and the government now has a month before the deadline runs out.

“The Commission requires that Ontario Power Generation submit specific information by June 30, 2023, if it intends to operate the Pickering Nuclear Generating Station beyond December 31, 2024,” the CNSC told Global News in a statement. “The Commission Registry has not yet received an application from Ontario Power Generation.”

If Ontario doesn’t receive the green light, the power plant which currently is responsible for 14 per cent of the province’s energy grid will be decommissioned in 2025, leaving the province with a significant electricity supply gap if replacement sources are not secured.

For its part, the Ford government doesn’t seem concerned about the impending timeline, even though the station was slated to close as planned, suggesting the Crown corporation responsible for the application will get it in on time.

“OPG is on track to submit their application before the end of June and has already started to submit supporting materials as part of the regulatory process toward clean power goals,” a spokesperson for energy minister Todd Smith said.

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Canada 2035 Gasoline Car Ban accelerates EV adoption, zero-emission transport, and climate action, with charging infrastructure, rebates, and industry investment supporting net-zero goals while addressing affordability, range anxiety, and consumer acceptance nationwide.

Key Points

A federal policy to end new gas car sales by 2035, boosting EV adoption, emissions goals, and charging infrastructure.

✅ Ends new gas car and light-truck sales by 2035

✅ Expands charging infrastructure and grid readiness

✅ Incentives, rebates, and industry investment drive adoption

Canada has set its sights on a bold and transformative goal: to ban the sale of new gasoline-powered passenger cars and light-duty trucks by the year 2035. This ambitious target, announced by the federal government, underscores Canada's commitment to combating climate change and accelerating the adoption of electric vehicles (EVs) nationwide, supported by forthcoming EV sales regulations from Ottawa.

The Federal Initiative

Under the leadership of Prime Minister Justin Trudeau, Canada aims to significantly reduce greenhouse gas emissions from the transportation sector, which accounts for a substantial portion of the country's carbon footprint. The initiative aligns with Canada's broader climate objectives, including achieving net-zero emissions by 2050.

Driving Forces Behind the Decision

The decision to phase out internal combustion engine vehicles reflects growing recognition of the urgency to transition towards cleaner transportation alternatives, even as 2019 electricity from fossil fuels still powered a notable share of Canada's grid. Minister of Environment and Climate Change Jonathan Wilkinson emphasizes the environmental benefits of electric vehicles, citing their potential to lower emissions and improve air quality in urban centers across the country.

Challenges and Opportunities

While the move towards electric vehicles presents promising opportunities for reducing emissions, it also poses challenges. Key considerations include infrastructure development, affordability, and consumer acceptance of EV technology, amid EV shortages and wait times that can influence buying decisions. Addressing these hurdles will require coordinated efforts from government, industry stakeholders, and consumers alike.

Industry Response

The automotive industry plays a crucial role in realizing Canada's EV ambitions. Automakers are increasingly investing in electric vehicle production and innovation to meet evolving consumer demand and regulatory requirements, including cross-border Canada-U.S. collaboration on supply chains. The transition offers opportunities for job creation, technological advancement, and economic growth in the clean energy sector.

Provincial Perspectives

Provinces across Canada are pivotal in facilitating the transition to electric vehicles. Some provinces have already implemented incentives such as rebates for EV purchases, charging infrastructure investments, and policy frameworks to support emissions reduction targets, even as Quebec's EV dominance push faces scrutiny from experts. Collaborative efforts between federal and provincial governments are essential in ensuring a cohesive approach to achieving national EV goals.

Consumer Considerations

For consumers, the shift towards electric vehicles represents a paradigm shift in transportation choices. Factors such as range anxiety, charging infrastructure availability, and upfront costs, with one EV cost survey citing price as the main barrier, remain considerations for prospective buyers. Government incentives and subsidies aim to alleviate some of these concerns and promote widespread EV adoption.

Looking Ahead

As Canada navigates towards a future without gasoline-powered vehicles, stakeholders must work together to overcome challenges and capitalize on opportunities presented by the electric vehicle revolution, even as critics of the 2035 mandate question its feasibility. Continued investments in infrastructure, innovation, and consumer education will be critical in paving the way for a sustainable and prosperous automotive industry.

Conclusion

Canada's commitment to phasing out gasoline-powered vehicles by 2035 marks a pivotal moment in the country's climate action agenda. By embracing electric vehicles, Canada aims to lead by example in combatting climate change, fostering innovation, and building a greener future for generations to come. The success of this ambitious initiative hinges on collective efforts to transform the automotive landscape and accelerate towards a sustainable transportation future.

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Ontario Electricity Supply Gap threatens growth as demand from EVs, heat pumps, industry, and greenhouses surges, pressuring the grid and IESO to add nuclear, renewables, storage, transmission, and imports while meeting net-zero goals.

Key Points

The mismatch as Ontario's electricity demand outpaces supply, driven by electrification, EVs, and industrial growth.

✅ Demand growth from EVs, heat pumps, and electrified industry

✅ Capacity loss from Pickering retirement and Darlington refurb

✅ Options: SMRs, renewables, storage, conservation, imports

Ontario electricity demand is forecast to soon outstrip supply as it confronts a shortage in the coming years, a problem that needs attention in the upcoming provincial election.

Forecasters say Ontario will need to double its power supply by 2050 as industries ramp up demand for low-emission clean power options and consumers switch to electric vehicles and space heating. But while the Ford government has made a flurry of recent energy announcements, including a hydrogen project at Niagara Falls and an interprovincial agreement on small nuclear reactors, it has not laid out how it intends to bulk up the province’s power supply.

“Ontario is entering a period of widening electricity shortfalls,” says the Ontario Chamber of Commerce. “Having a plan to address those shortfalls is essential to ensure businesses can continue investing and growing in Ontario with confidence.”

The supply and demand mismatch is coming because of brisk economic growth combined with increasing electrification to balance demand and emissions and meet Canada’s goal to reduce CO2 emissions by 40 per cent by 2030 and to net-zero by 2050.

Hamilton’s ArcelorMittal Dofasco and Algoma Steel in Sault Ste. Marie are leaders on this transformation. They plan to replace their blast furnaces and basic oxygen furnaces later this decade with electric arc furnaces (EAFs), reducing annual CO2 emissions by three million tonnes each.

Dofasco, which operates an EAF that is already the single largest electricity user in Ontario, plans to build a second EAF and a gas-fired ironmaking furnace, which can also be powered with zero-carbon hydrogen produced from electricity, once it becomes available.

Other new projects in the agriculture, mining and manufacturing sectors are also expected to be big power users, including the recently announced $5 billion Stellantis-LG electric vehicle battery plant in Windsor. Five new transmission lines will be built to service the plant and the burgeoning greenhouse industry in southwestern Ontario. The greenhouses alone will require enough additional electricity to power a city the size of Ottawa.

On top of these demands, growing numbers of Ontario drivers are expected to switch to electric vehicles and many homeowners and business owners are expected to convert from gas heating to heat pumps and electric heating.

Ontario is recognized as one of the cleanest electricity systems in the world, with over 90 per cent of its capacity from low-emission nuclear, hydro, wind and other renewable generation. Only nine per cent comes from CO2-emitting gas plants. But that’s about to get dirtier according to analysts.

Annual electricity demand is expected to grow from 140 terawatt hours (a terawatt hour is one trillion watts for one hour) currently to about 200 terawatt hours in 2042, according to the Independent Electricity System Operator, the agency that manages Ontario’s grid.

Demand is expected to outstrip currently contracted supply in 2026, reaching a growing supply gap of about 80 terawatt hours by 2042. A big part of this gap is due to the scheduled retirement of the Pickering nuclear station in 2025 and the current refurbishment of the Darlington nuclear station reactors. While the IESO doesn’t expect blackouts or brownouts, it forecasts the province will need to sharply increase expensive power imports and triple the amount of CO2-polluting gas-fired generation.

Without cleaner, lower-cost alternatives, this will mean “a vastly dirtier and more expensive electricity system,” York University researchers Mark Winfield and Collen Kaiser said in a recent commentary.

The party that wins the provincial election will have to make hard decisions on renewable energy, including new wind and solar projects, energy conservation, battery storage, new hydro plants, small nuclear reactors, gas generation and power imports from the U.S. and Quebec. In addition, the federal government is pressing the provinces to meet a new net-zero clean electricity standard by 2035. These decisions will have huge impact on Ontario’s future, with greening the grid costs highlighted in some reports as potentially very high.

With so much at stake, Ontario’s political parties need to tell voters during the upcoming campaign how they would address these enormous challenges.

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Barakah Unit 1 100 Percent Power signals the APR-1400 reactor delivering 1400MW of clean baseload electricity to the UAE grid, advancing decarbonisation, reliability, and Power Ascension Testing milestones ahead of commercial operations in early 2021.

Key Points

The milestone where Unit 1 reaches full 1400MW output to the UAE grid, providing clean, reliable baseload electricity.

✅ Delivers 1400MW from a single generator to the UAE grid

✅ Enables clean, reliable baseload power with zero operational emissions

✅ Completes key Power Ascension Testing before commercial operations

The Emirates Nuclear Energy Corporation, ENEC, has announced that its operating and maintenance subsidiary, Nawah Energy Company, Nawah, has successfully achieved 100% of the rated reactor power capacity for Unit 1 of the Barakah Nuclear Energy Plant. This major milestone, seen as a crucial step in Abu Dhabi towards completion, brings the Barakah plant one step closer to commencing commercial operations, scheduled in early 2021.

100% power means that Unit 1 is generating 1400MW of electricity from a single generator connected to the UAE grid for distribution. This milestone makes the Unit 1 generator the largest single source of electricity in the UAE.

The Barakah Nuclear Energy Plant is the largest source of clean baseload electricity in the country, capable of providing constant and reliable power in a sustainable manner around the clock. This significant achievement accelerates the decarbonisation of the UAE power sector, while also supporting the diversification of the Nation’s energy portfolio as it transitions to cleaner electricity sources, similar to the steady development in China of nuclear energy programs now underway.

The accomplishment follows shortly after the UAE’s celebration of its 49th National Day, providing a strong example of the country’s progress as it continues to advance towards a sustainable, clean, secure and prosperous future, having made the UAE the first Arab nation to open a nuclear plant as it charts this path. As the Nation looks towards the next 50 years of achievements, the Barakah plant will generate up to 25 percent of the country’s electricity, while also acting as a catalyst of the clean carbon future of the Nation.

Mohamed Ibrahim Al Hammadi, Chief Executive Officer of ENEC said: "We are proud to deliver on our commitment to power the growth of the UAE with safe, clean and abundant electricity. Unit 1 marks a new era for the power sector and the future of the clean carbon economy of the Nation, with the largest source of electricity now being generated without any emissions. I am proud of our talented UAE Nationals, working alongside international experts who are working to deliver this clean electricity to the Nation, in line with the highest standards of safety, security and quality." Nawah is responsible for operating Unit 1 and has been responsible for safely and steadily raising the power levels since it commenced the start-up process in July, and connection to the grid in August.

Achieving 100% power is one of the final steps of the Power Ascension Testing (PAT) phase of the start-up process for Unit 1. Nawah’s highly skilled and certified nuclear operators will carry out a series of tests before the reactor is safely shut down in preparation for the Check Outage. During this period, the Unit 1 systems will be carefully examined, and any planned or corrective maintenance will be performed to maintain its safety, reliability and efficiency prior to the commencement of commercial operations.

Ali Al Hammadi, Chief Executive Officer of Nawah, said: "This is a key achievement for the UAE, as we safely work through the start-up process for Unit 1 of the Barakah plant. Successfully reaching 100% of the rated power capacity in a safe and controlled manner, undertaken by our highly trained and certified nuclear operators, demonstrates our commitment to safe, secure and sustainable operations as we now advance towards our final maintenance activities and prepare for commercial operations in 2021." The Power Ascension Testing of Unit 1 is overseen by the independent national regulator – the Federal Authority for Nuclear Regulation (FANR), which has conducted 287 inspections since the start of Barakah’s development. These independent reviews have been conducted alongside more than 40 assessments and peer reviews by the International Atomic Energy Agency, IAEA, and World Association of Nuclear Operators, WANO, reflecting milestones at nuclear projects worldwide that benchmark safety and performance.

This is an important milestone for the commercial performance of the Barakah plant. Barakah One Company, ENEC’s subsidiary in charge of the financial and commercial activities of the Barakah project signed a Power Purchase Agreement, PPA, with the Emirates Water and Electricity Company, EWEC, in 2016 to purchase all of the electricity generated at the plant for the next 60 years. Electricity produced at Barakah feeds into the national grid in the same manner as other power plants, flowing to homes and business across the country.

This milestone has been safely achieved despite the challenges of COVID-19. Since the beginning of the global pandemic, ENEC, and subsidiaries Nawah and Barakah One Company, along with companies that form Team Korea, including Korea Hydro & Nuclear Power, with KHNP’s work in Bulgaria illustrating its global role, have worked closely together, in line with all national and local health authority guidelines, to ensure the highest standards for health and safety are maintained for those working on the project. ENEC and Nawah’s robust business continuity plans were activated, alongside comprehensive COVID-19 prevention and management measures, including access control, rigorous testing, and waste water sampling, to support health and wellbeing.

The Barakah Nuclear Energy Plant, located in the Al Dhafra region of the Emirate of Abu Dhabi, is one of the largest nuclear energy new build projects in the world, with four APR-1400 units. Construction of the plant began in 2012 and has progressed steadily ever since. Construction of Units 3 and 4 are in the final stages with 93 percent and 87 percent complete respectively, benefitting from the experience and lessons learned during the construction of Units 1 and 2, while the construction of the Barakah Plant as a whole is now more than 95 percent complete.

Once the four reactors are online, Barakah Plant will deliver clean, efficient and reliable electricity to the UAE grid for decades to come, providing around 25 percent of the country’s electricity and, as other nations like Bangladesh expand with IAEA assistance, reinforcing global decarbonisation efforts, preventing the release of up to 21 million tons of carbon emissions annually – the equivalent of removing 3.2 million cars off the roads each year.

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PJM Capacity Auction Price Drop signals PJM Interconnection capacity market shifts, with $50/MW-day clearing, higher renewables and nuclear participation, declining coal, natural gas pressure, and zone impacts in ComEd and EMAAC, amid 21% reserve margins.

Key Points

A decline to $50 per MW-day in PJM capacity prices, shifting resource mix, zonal rates, and reserve margins.

✅ Clearing price fell to $50/MW-day from $140 in 2018

✅ Renewables and nuclear up; coal units down across PJM

✅ Zonal prices: ComEd $68.96, EMAAC $97.86; 21% reserves

Power-plant owners serving the biggest U.S. grid will be paid 64% less next year for being on standby to keep the lights on from New Jersey to Illinois.

Suppliers to PJM Interconnection LLC’s grid, which serves more than 65 million people, will get $50 a megawatt-day to provide capacity for the the year starting June 2022, according to the results of an auction released Wednesday. That’s down sharply from $140 in the previous auction, held in 2018. Analysts had expected the price would fall to about $85.

“Renewables, nuclear and new natural gas generators saw the greatest increases in cleared capacity, while coal units saw the largest decrease,” PJM said in a statement.

The PJM auction is the single most important event for power generators across the eastern U.S., including Calpine Corp., NRG Energy Inc. and Exelon Corp., because it dictates a big chunk of their future revenue. It also plays a pivotal role in shaping the region’s electricity mix, determining how much the region is willing to stick with coal and natural gas plants or replace them with wind and solar even as the aging grid complicates progress nationwide.

The results showed that the capacity price for the Chicago-area zone, known as ComEd, was $68.96 compared with $195.55 in the last auction. The price for the Pennsylvania and New Jersey zone, known as EMAAC, fell to $97.86 percent, from $165.73. All told, 144,477 megawatts cleared, representing a reserve margin of 21%.

Exelon shares fell 0.4% after the results were released. Vistra fell 1.5%. NRG was unchanged.

Blackouts triggered by extreme weather in Texas and California over the last year have reignited a debate over whether other regions should institute capacity systems similar to the one used by PJM, and whether to adopt measures like emergency fuel stock programs in New England as well. The market, which pays generators to be on standby in case extra power is needed, has long been a source of controversy. While it makes the grid more reliable, the system drives up costs for consumers. In the area around Chicago, for instance, these charges total more than $1.7 billion per year, accounting for 20% of customer bills, according to the Illinois Clean Jobs Coalition.

In the 2018 auction, PJM contracted supplies that were about 22% in excess of the peak demand projection at the time. This year, the grid is projected to start summer with a reserve margin of about 26%, as COVID-19 demand shifts persist, according to the market monitor -- far higher than the 16% most engineers say is needed to prevent major outages.

“This certainly doesn’t seem fair to ratepayers,” said Ari Peskoe, director of Harvard Law School’s Electricity Law Initiative.

Fossil-Fuel Advantage
Heading into the auction, analysts expected coal and gas plants to have the advantage. Nuclear reactors and renewables, they said, were poised to struggle amid coal and nuclear disruptions nationwide.

That’s because this is the first PJM auction run under a major pricing change imposed by federal regulators during the Trump administration. The new structure creates a price floor for some bidders, effectively hobbling nuclear and renewables that receive state subsidies while making it easier for fossil fuels to compete.

Those rules triggered contentious wrangling between power providers, PJM and federal regulators, delaying the auction for two years. The new system, however, may be short lived. The Biden administration is moving to overhaul the rules in time for the next auction in December.

Also See: Biden Climate Goals to Take Backseat in Biggest U.S. Power Grid

Dominion Energy Inc., one of the biggest U.S. utility owners, pulled out of the market over the rules. The Virginia-based company, which has a goal to have net-zero carbon emissions by 2050, said the new PJM format will “make renewables more expensive” than delivering clean energy through alternative markets.

Illinois, New Jersey and Maryland have also threatened to leave the capacity market unless the new price floor is eliminated, and Connecticut is leading a market overhaul in New England as well. PJM has already launched a process to do it.

PJM is already one of the most fossil-fuel intensive grids, with 60% of its electricity coming from coal and gas. Power plants that bid into the auction rely on it for the bulk of their revenue. That means plants that win contracts have an incentive to continue operating for as long as they can, even amid a supply-chain crisis this summer.

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Northern Pass Hydropower Project Rehearing faces review by New Hampshire's Site Evaluation Committee as Eversource seeks approval for a 192-mile transmission line, citing energy cost relief, while Massachusetts eyes Central Maine Power as an alternative.

Key Points

A review of Eversource's halted NH transmission plan, weighing impacts, costs, and alternatives.

✅ SEC denied project, Eversource seeks rehearing

✅ 192-mile line to bring Canadian hydropower to NE

✅ Alternative bids include Central Maine Power corridor

Groups supporting and opposing the Northern Pass hydropower project in New Hampshire filed statements Friday in advance of a state committee’s meeting next week on whether it should rehear the project.

The Site Evaluation Committee rejected the transmission proposal last month over concerns about potential negative impacts. It is scheduled to deliberate Monday on Eversource’s request for a rehearing.

The $1.6 billion project would deliver hydropower from Canada, including Hydro-Quebec exports, to customers in southern New England through a 192-mile transmission line in New Hampshire.

If the Northern Pass project fails to ultimately win New Hampshire approval, the Massachusetts Department of Energy Resources has announced it will begin negotiating with a team led by Central Maine Power Co. for a $950 million project through a 145-mile Maine transmission line as an alternative.

Separately, construction later began on the disputed $1 billion electricity corridor despite ongoing legal and political challenges.

The Business and Industry Association voted last month to endorse the project after remaining neutral on it since it was first proposed in 2010. A letter sent to the committee Friday urges it to resume deliberations. The association said it is concerned about the severe impact the committee’s decision could have on New Hampshire’s economic future, even as Connecticut overhauls electricity market structure across New England.

“The BIA believes this decision was premature and puts New Hampshire’s economy at risk,” organization President Jim Roche wrote. “New Hampshire’s electrical energy prices are consistently 50-60 percent higher than the national average. This has forced employers to explore options outside New Hampshire and new England to obtain lower electricity prices. Businesses from outside New Hampshire and others now here are reversing plans to grow in New Hampshire due to the Site Evaluation Committee’s decision.”

The International Brotherhood of Electrical Workers and the Coos County Business and Employers Group also filed a statement in support of rehearing the project.

The Society to Protect New Hampshire Forests, which is opposed to the project, said Eversource’s request is premature because the committee hasn’t issued a final written decision yet. It also said Eversource hasn’t proven committee members “made an unlawful or unreasonable decision or mistakenly overlooked matters it should have considered.”

As part of its request for reconsideration, Eversource said it is offering up to $300 million in reductions to low-income and business customers in the state.

It also is offering to allocate $95 million from a previously announced $200 million community fund — $25 million to compensate for declining property values, $25 million for economic development and $25 million to promote tourism in affected areas. Another $20 million would fund energy efficiency programs.

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