PM hints heads could roll on reactor shutdown

By Toronto Star


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Prime Minister Stephen Harper says all sides will have to answer for their conduct in the wake of a reactor shutdown that deprived health facilities across Canada and around the world of medical isotopes vital for diagnostic tests.

The Senate fast-tracked emergency legislation, approved by MPs, to allow the Chalk River reactor to operate for 120 days and resume production of the isotopes.

But in question period, Harper made clear his frustration that it took the intervention of Parliament to solve a problem that had been brewing for more than a year.

"I think it is ridiculous that the government can only resolve an escalating dispute between these two agencies by actually coming to Parliament and passing a law," Harper said during question period.

He also signalled again that he's not happy with the performance of the Canadian Nuclear Safety Commission, the regulator that forced the shutdown by declaring the reactor was in violation of its operating licence.

He said commission members intended to resolve the problem "in their own sweet time," despite the growing shortage of isotopes needed for potentially life-saving medical procedures.

And in a comment that signalled personnel changes could be coming, Harper vowed there would be a full review when the dust settles.

"I can certainly assure the House that when this is all behind us the government will carefully examine the role of all actors in this incident and make sure that accountability is appropriately restored," he said.

On December 11, Harper blamed the problem on the "Liberal appointed" safety commission. More recently a federal official complained that the commission kept senior government officials in the dark about the looming crisis.

"We feel the situation should never have come to this. We received no note from the regulator in light of the severe isotope shortage this action caused," the official told the Star.

"It is understood we do not control the regulator but one would think the government would have been apprised of the situation."

The reactor was shut down by Atomic Energy of Canada Ltd. on Nov. 18 for routine maintenance. But an inspection by the regulatory staff found that mandatory safety upgrades – connecting vital cooling pumps to an emergency power supply – had not been done. That put the reactor in violation of its operating licence and AECL opted to keep it shut down, choking the supply of isotopes.

Liberal MPs pointed the finger at AECL for not making the required safety upgrades, work that should have been done by 2005. Yesterday, they demanded a special audit by Auditor General Sheila Fraser to investigate the problems, a position the Bloc said it would support.

"How do we know this problem won't happen again? The problem with the nuclear reactor is still not addressed," said Liberal MP Omar Alghabra (Mississauga—Erindale), the party's critic on the issue.

And the Liberals fired back with a partisan shot of their own, questioning whether Bob Strickert, the "independent" nuclear expert who advised MPs that the reactor could be safely restarted, was the executive vice-president of the Durham Conservative Association in the riding of International Development Minister Bev Oda.

Elections Canada records show that a Robert Strickert donated $270 to the riding association on April 5, 2005.

"The deputy minister provided those names," said Natural Resources Minister Gary Lunn. "We were happy that they went through extraordinary efforts last night to attend this Parliament to answer questions from all parties. We should be thanking all the people who came here, not laughing at them."

Meanwhile, some doctors and other players in the medical isotopes business expressed concern about the long-term effects on Canada's reputation as a reliable supplier of radioisotopes throughout North America and South America.

While Chalk River has been shut down, medical facilities have been getting their medical isotopes for cancer and heart treatments from the world's other major suppliers in Belgium and South Africa.

Shelley MacLean, a spokesperson with MDS Nordion, the private company that distributes the isotopes, said her company is "developing alternatives to our standard back-up relations" as a result of the Chalk River shutdown.

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UK breaks coal free energy record again but renewables still need more support

UK Coal-Free Grid Streak highlights record hours without coal, as renewable energy, wind and solar boost electricity generation, cutting CO2 emissions, reducing fossil fuel reliance, and accelerating grid decarbonization amid volatile gas markets.

 

Key Points

It is the UKs longest coal-free power run, driven by renewables, signaling decarbonization and reduced gas reliance.

✅ Record-breaking hours of electricity with zero coal generation

✅ Enabled by wind, solar, and growing offshore wind capacity

✅ Highlights need to cut gas use and expand renewable investment

 

Today is the fourth the UK has entered with not a watt of electricity generated by coal.

It’s the longest such streak since the 1880s and comes only days after the last modern era coal-free power record of 55 hours was set.

That represents good news for those of us who have children and would rather like there to be a planet for them to live on when we’re gone.

Coal generated power is dirty power, and not just through the carbon that gets pumped into the atmosphere when it burns.

The fact that the UK is increasingly able to call upon cleaner alternatives for its requirements, to the extent that records are being regularly broken and coal's share has fallen to record lows, is a welcome development.

The trouble is one of those alternatives is gas, and while it is better than coal it still throws off CO2, among other pollutants. The UK’s use of it, for electricity generation and most of its heating, comes with the added disadvantage of leaving it in hock to volatile international markets and producers that aren’t always friendly.

It was only last month, with the country in the middle of a cold snap, that the Grid was issuing a deficit warning (its first in eight years).

As I wrote at the time, we need to burn less of the stuff as low-carbon progress stalled in 2019 shows, too.

As such, Greenpeace’s call for more investment in renewable energy technology and generation, including solar, onshore wind and offshore wind, which is making an increasing contribution as wind beat coal in 2016 demonstrated, was well made.

Those who complain about onshore wind farms, particularly when they are built in windy places that are pretty, seem willfully blind to the pollution caused by gas.

The need to be listened to less. So do those, like British Gas owner Centrica, that bellyache about green taxes.

It bears repeating that fossil fuels are subsidised still more. It’s just that the subsidies are typically hidden.

A report issued last year by a coalition of environmental organisations found the UK provided $972m (£695m) of annual financing for fossil fuels on average between 2013 and 2015, compared with $172m for renewable energy.

But while they come up with wildly varying amounts as a result of wildly varying approaches, the OECD, the IMF and the International Energy Agency have all quantified substantial subsidies for fossils fuels. Their annual estimates have ranged from $160bn to $5.3tn (yes you read that rate and the number was the IMF’s) globally.

So by all means celebrate coal free days, and a full week without coal power as milestones. But we need more of them more quickly and we need more renewable energy to pick up the slack. As such, the philosophy and approach of government needs to change.

 

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Alberta Carbon tax is gone, but consumer price cap on electricity will remain

Alberta Electricity Rate Cap stays despite carbon tax repeal, keeping the Regulated Rate Option at 6.8 cents/kWh. Levy funds cover market gaps as the UCP reviews NDP policies to maintain affordable utility bills.

 

Key Points

Program capping RRO power at 6.8 cents/kWh, using levy funds to offset market prices while the UCP reviews policy.

✅ RRO cap fixed at 6.8 cents/kWh for eligible customers

✅ Levy funds pay generators when market prices exceed the cap

✅ UCP reviewing NDP policies to ensure affordable rates

 

Alberta's carbon tax has been cancelled, but a consumer price cap on electricity — which the levy pays for — is staying in place for now.

June electricity rates are due out on Monday, about four days after the new UCP government did away with the carbon charge on natural gas and vehicle fuel.

Part of the levy's revenue was earmarked by the previous NDP government to keep power prices at or below 6.8 cents per kilowatt hour under new electricity rules set by the province.

"The Regulated Rate Option cap of 6.8 cents/kWh was implemented by the previous government and currently remains in effect. We are reviewing all policies put in place by the former government and will make decisions that ensure more affordable electricity rates for job-creators and Albertans," said a spokesperson for Alberta's energy ministry in an emailed statement.

Albertans with regulated rate contracts and all City of Medicine Hat utility customers only pay that amount or less, though some Alberta ratepayers have faced deferral-related arrears.

If the actual market price rises above that, the difference is paid to generators directly from levy funds, a buffer that matters as experts warn prices are set to soar later this year.

The government has paid more than $55 million to utilities over the past year ending in March 2019, due to that electricity price cap being in place.

Alberta Energy says the price gap program will continue, at least for the time being, amid electricity policy changes being considered.

 

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DBRS Confirms Ontario Power Generation Inc. at A (low)/R-1 (low), Stable Trends

OPG Credit Rating affirmed by DBRS at A (low) issuer and unsecured debt, R-1 (low) CP, Stable trends, backed by a supportive regulatory regime, strong leverage metrics, and provincial support; monitor Darlington Refurbishment costs.

 

Key Points

It is DBRS's confirmation of OPG at A (low) issuer and unsecured, R-1 (low) CP, with Stable outlooks.

✅ Stable trends; strong cash flow-to-debt and capital ratios

✅ Provincial financing via OEFC; Fair Hydro Trust ring-fenced

✅ Darlington Refurbishment on budget; cost overruns remain risk

 

DBRS Limited (DBRS) confirmed the Issuer Rating and the Unsecured Debt rating of Ontario Power Generation Inc. (OPG or the Company) at A (low) and the Commercial Paper (CP) rating at R-1 (low), amid sector developments such as Hydro One leadership efforts to repair government relations and measures like staff lockdowns at critical sites.

All trends are Stable. The ratings of OPG continue to be supported by (1) the reasonable regulatory regime in place for the Company's regulated generation facilities, including stable pricing signals for large users, (2) strong cash flow-to-debt and debt-to-capital ratios and (3) continuing financial support from its shareholder, the Province of Ontario (the Province; rated AA (low) with a Stable trend by DBRS). The Province, through its agent, the Ontario Electricity Financial Corporation (rated AA (low) with a Stable trend by DBRS), provides most of OPG's financing (approximately 43% of consolidated debt). The Company's remaining debt includes project financing (31%), including projects such as a battery energy storage system proposed near Woodstock, non-recourse debt issued by Fair Hydro Trust (Senior Notes rated AAA (sf), Under Review with Negative Implications by DBRS; 11%), CP (2%) and Senior Notes issued under the Medium Term Note Program (12%).

In March 2019, the Province introduced 'Bill 87, Fixing the Hydro Mess Act, 2019' which includes winding down the Fair Hydro Plan, and later introduced electricity relief to mitigate customer bills during the COVID-19 pandemic. OPG will remain as the Financial Services Manager for the outstanding Fair Hydro Trust debt, which will become obligations of the Province. DBRS does not expect this development to have a material impact on the Company as (1) the Fair Hydro Trust debt will continue to be bankruptcy-remote and ring-fenced from OPG (all debt is non-recourse to the Company) and (2) the credit rating on the Company's investment in the Subordinated Notes (rated AA (sf), Under Review with Negative Implications by DBRS) will likely remain investment grade while the Junior Subordinated Notes (rated A (sf), Under Review with Developing Implications by DBRS) will not necessarily be negatively affected by this change (see the DBRS press release, 'DBRS Maintains Fair Hydro Trust, Series 2018-1 and Series 2018-2 Notes Under Review,' dated March 26, 2019, for more details).

OPG's key credit metrics improved in 2018, following the approval of its 2017-2021 rates application by the Ontario Energy Board in December 2017, alongside the Province's energy-efficiency programs that shape demand. The Company's profitability strengthened significantly, with corporate return on equity (ROE) of 7.8% (adjusted for a $205 million gain on sale of property; 5.1% in 2017) closer to the regulatory allowed ROE of 8.78%. However, DBRS continues to view a positive rating action as unlikely in the short term because of the ongoing large capital expenditures program, including the $12.8 billion Darlington Refurbishment project, amid ongoing oversight following the nuclear alert investigation in Ontario. However, a downgrade could occur should there be significant cost overruns with the Darlington Refurbishment project that result in stranded costs. DBRS notes that the Darlington Refurbishment project is currently on budget and on schedule.

 

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Americans aren't just blocking our oil pipelines, now they're fighting Hydro-Quebec's clean power lines

Champlain Hudson Power Express connects Hydro-Québec hydropower to the New York grid via a 1.25 GW high voltage transmission line, enabling renewable energy imports, grid decarbonization, storage synergy, and reduced fossil fuel generation.

 

Key Points

A 1.25 GW cross-border transmission project delivering Hydro-Québec hydropower to New York City to displace fossil power.

✅ 1.25 GW buried HV line from Quebec to Astoria, Queens

✅ Supports renewable imports and grid decarbonization in NYC

✅ Enables two-way trade and reservoir storage synergy

 

Last week, Quebec Premier François Legault took to Twitter to celebrate after New York State authorities tentatively approved the first new transmission line in three decades, the Champlain Hudson Power Express, that would connect Quebec’s vast hydroelectric network to the northeastern U.S. grid.

“C’est une immense nouvelle pour l’environnement. De l’énergie fossile sera remplacée par de l’énergie renouvelable,” he tweeted, or translated to English: “This is huge news for the environment. Fossil fuels will be replaced by renewable energy.”

The proposed construction of a 1.25 gigawatt transmission line from southern Quebec to Astoria, Queens, known as the Champlain Hudson Power Express, ties into a longer term strategy by Hydro Québec: in the coming decade, as cities such as New York and Boston look to transition away from fossil fuel-generated electricity and decarbonize their grids, Hydro-Québec sees opportunities to supply them with energy from its vast network of 61 hydroelectric generating stations and other renewable power, as Quebec has closed the door on nuclear power in recent years.

Already, the provincial utility is one of North America’s largest energy producers, generating $2.3 billion in net income in 2020, and planning to increase hydropower capacity over the near term. Hydro-Quebec has said it intends to increase exports and had set a goal of reaching $5.2 billion in net income by 2030, though its forecasts are currently under review.

But just as oil and gas companies have encountered opposition to nearly every new pipeline, Hydro-Québec is finding resistance as it seeks to expand its pathways into major export markets, which are all in the U.S. northeast. Indeed, some fossil fuel companies that would be displaced by Hydro-Québec are fighting to block the construction of its new transmission lines.

“Linear projects — be it a transmission line or a pipeline or highway or whatever — there’s always a certain amount of public opposition,” Gary Sutherland, director of strategic affairs and stakeholder relations for Hydro-Québec, told the Financial Post, “which is a good thing because it makes the project developer ask the right questions.”

While Sutherland said he isn’t expecting opposition to the line into New York, he acknowledged Hydro-Québec also didn’t fully anticipate the opposition encountered with the New England Clean Energy Connect, a 1.2 gigawatt transmission line that would cost an estimated US$950 million and run from Quebec through Maine, eventually connecting to Massachusetts’ grid.

In Maine, natural gas and nuclear energy companies, which stand to lose market share, and also environmentalists, who oppose logging through sensitive habitat, both oppose the project.

In August, Maine’s highest court invalidated a lease for the land where the lines were slated to be built, throwing permits into question. Meanwhile, Calpine Corporation and Vistra Energy Corp., both Texas-based companies that operate natural gas plants in Maine, formed a political action committee called Mainers for Local Power. It has raised nearly US$8 million to fight the transmission line, according to filings with the Maine Ethics Commission.

Neither Calpine nor Vistra could be reached for comment by the time of publication.

“It’s been 30 years since we built a transmission line into the U.S. northeast,” said Sutherland. “In that time we have increased our exports significantly … but we haven’t been able to build out the corresponding transmission to get that energy from point A to point B.”

Indeed, since 2003, Hydro-Québec’s exports outside the province have grown from roughly two terrawatts per year to more than 30 terrawatts, including recent deals with NB Power to move more electricity into New Brunswick. The provincial utility produces around 210 terrawatts annually, but uses less than 178 terrawatts in Quebec.

Linear projects — be it a transmission line or a pipeline or highway or whatever — there’s always a certain amount of public opposition

In Massachusetts, it has signed contracts to supply 9.4 terrawatts annually — an amount roughly equivalent to 8 per cent of the New England region’s total consumption. Meanwhile, in New York, Hydro-Québec is in the final stages of negotiating a 25-year contract to sell 10.4 terawatts — about 20 per cent of New York City’s annual consumption.

In his tweets, Legault described the New York contract as being worth more than $20 billion over 25 years, although Hydro Québec declined to comment on the value because the contract is still under negotiation and needs approval by New York’s Public Services Commission — expected by mid-December.

Both regions are planning to build out solar and wind power to meet their growing clean energy needs and reach ambitious 2030 decarbonization targets. New York has legislated a goal of 70 per cent renewable power by that time, while Massachusetts has called for a 50 per cent reduction in emissions in the same period.

Hydro-Quebec signage is displayed on a manhole cover in Montreal. PHOTO BY BRENT LEWIN/BLOOMBERG FILES
According to a 2020 paper titled “Two Way Trade in Green Electrons,” written by three researchers at the Center for Energy and Environmental Policy Research at the Massachusetts’ Institute for Technology, Quebec’s hydropower, which like fossil fuels can be dispatched, will help cheaply and efficiently decarbonize these grids.

“Today transmission capacity is used to deliver energy south, from Quebec to the northeast,” the researchers wrote, adding, “…in a future low-carbon grid, it is economically optimal to use the transmission to send energy in both directions.”

That is, once new transmission lines and wind and solar power are built, New York and Massachusetts could send excess energy into Quebec where it could be stored in hydroelectric reservoirs until needed.

“This is the future of this northeast region, as New York state and New England are decarbonizing,” said Sutherland. “The only renewable energies they can put on the grid are intermittent, so they’re going to need this backup and right to the north of them, they’ve got Hydro-Québec as backup.”

Hydro-Québec already sells roughly 7 terrawatts of electricity per year into New York on the spot market, but Sutherland says it is constrained by transmission constraints that limit additional deliveries.

And because transmission lines can cost billions of dollars to build, he said Hydro-Québec needs the security of long-term contracts that ensure it will be paid back over time, aligning with its broader $185-billion transition strategy to reduce reliance on fossil fuels.

Sutherland expressed confidence that the Champlain Hudson Power Express project would be constructed by 2025. He noted its partners, Blackstone-backed Transmission Developers, have been working on the project for more than a decade, and have already won support from labour unions, some environmental groups and industry.

The project calls for a barge to move through Lake Champlain and the Hudson River, and dig a trench while unspooling and burying two high voltage cables, each about 10-12 centimetres in diameter. In certain sections of the Hudson River, known to have high concentrations of PCP pollutants, the cable would be buried underground alongside the river.

 

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Quebec premier inaugurates La Romaine hydroelectric complex

La Romaine Hydroelectric Complex anchors Quebec's hydropower expansion, showcasing Hydro-Québec ingenuity, clean energy, electrification, and grid capacity gains along the North Shore's Romaine River to power industry and nearly 470,000 homes.

 

Key Points

A four-station, $7.4B hydro project on Quebec's Romaine River producing 8 TWh a year for electrification and industry.

✅ Generates 8 TWh yearly, powering about 470,000 homes

✅ Largest Quebec hydro build since James Bay project

✅ Key to clean energy, grid capacity, and electrification

 

Quebec Premier François Legault has inaugurated the la Romaine hydroelectric complex on the province's North Shore.

The newly inaugurated Romaine hydroelectric complex could serve as a model for future projects, such as the Carillon Generating Station investment now planned in the province, Legault said.

"It brings me a lot of pride. It is truly the symbol of Quebec ingenuity," he said as he opened the vast power plant.

Legault was accompanied at today's event by Jean Charest, who was Quebec premier when construction began in 2009, as well as Hydro-Québec president and CEO Michael Sabia. 

La Romaine is comprised of four power stations and is the largest hydro project constructed in the province since the Robert Bourassa generation facility, which was commissioned in 1979. It is the biggest hydro installation since the James Bay project, bolstering Hydro-Québec's hydropower capacity across the grid today.

The construction work for Romaine-4 was supposed to finish in 2020, but it was delayed the COVID-19 pandemic, the death of four workers due to security flaws and soil decomposition problems. 

The $7.4-billion la Romaine complex can produce eight terawatt hours of electricity per year, enough to power nearly 470,000 homes.

It generates its power from the Romaine River, located north of Havre-St-Pierre, Que., near the Labrador border, where long-standing Newfoundland and Labrador tensions over Quebec's projects sometimes resurface today.

Legault said that Quebec still doesn't have enough electricity to meet demand from industry, including recent allocations of electricity for industrial projects across the province, and Quebecers need to consider more ways to boost the province's ability to power future projects. The premier has said previously that demand is expected to surge by an additional 100 terawatt-hours by 2050 — half the current annual output of the provincially owned utility.

Legault's environmental plan of reducing greenhouse gases and achieving carbon neutrality by 2050 hinges on increased electrification and a strategy to wean off fossil fuels provincewide, so the electricity needs for transport and industry will be massive.

An updated strategic plan from Hydro-Quebec will be presented in November outlining those needs, president and CEO Michael Sabia told reporters on Thursday, after recent deals with NB Power underscored interprovincial demand.

Legault said the report will trigger a broader debate on energy transition and how the province can be a leader in the green economy. He said he wasn't ruling out any potential power sources — except for a return to nuclear power at this stage.

 

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Abengoa, Acciona to start work on 110MW Cerro Dominador CSP plant in Chile

Cerro Dominador CSP Plant delivers 110MW concentrated solar power in Chile's Atacama Desert, with 10,600 heliostats, 17.5-hour molten salt storage, and 24/7 dispatchable energy; built by Acciona and Abengoa within a 210MW complex.

 

Key Points

A 110MW CSP solar-thermal plant in Chile with heliostats and 17.5h molten salt storage, delivering 24/7 dispatchable clean power.

✅ 110MW CSP with 17.5h molten salt for 24/7 dispatch

✅ 10,600 heliostats; part of a 210MW hybrid CSP+PV complex

✅ Built by Acciona and Abengoa; first of its kind in LatAm

 

A consortium formed by Spanish groups Abengoa and Acciona, as Spain's renewable sector expands with Enel's 90MW wind build activity, has signed a contract to complete the construction of the 110MW Cerro Dominador concentrated solar power (CSP) plant in Chile.

The consortium received notice to proceed to build the solar-thermal plant, which is part of the 210MW Cerro Dominador solar complex.

Under the contract, Acciona, which has 51% stake in the consortium and recently launched a 280 MW Alberta wind farm, will be responsible for building the plant while Abengoa will act as the technological partner.

Expected to be the first of its kind in Latin America upon completion, the plant is owned by Cerro Dominador, which in turn is owned by funds managed by EIG Global Energy Partners.

The project will add to a Abengoa-built 100MW PV plant, comparable to California solar projects in scope, which was commissioned in February 2018, to form a 210MW combined CSP and PV complex.

Spread across an area of 146 hectares, the project will feature 10,600 heliostats and will have capacity to generate clean and dispatachable energy for 24 hours a day using its 17.5 hours of molten salt storage technology, a field complemented by battery storage advances.

Expected to prevent 640,000 tons of CO2 emission, the plant is located in the commune of María Elena, in the Atacama Desert, in the Antofagasta Region.

“In total, the complex will avoid 870,000 tons of carbon dioxide emissions into the atmosphere every year and, in parallel with Enel's 450 MW U.S. wind operations, will deliver clean energy through 15-year energy purchase agreements with distribution companies, signed in 2014.

“The construction of the solarthermal plant of Cerro Dominador will have an important impact on local development, with the creation of more than 1,000 jobs in the area during its construction peak, and that will be priority for the neighbors of the communes of the region,” Acciona said in a statement.

The Cerro Dominador plant represents Acciona’s fifth solar thermal plant being built outside of Spain. The firm has constructed 10 solarthermal plants with total installed capacity of 624MW.

Acciona has been operating in Chile since 1993. The company, through its Infrastructure division, executed various construction projects for highways, hospitals, hydroelectric plants and infrastructures for the mining sector.

 

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