Gezhouba Group wins Filipino hydropower order

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CGGC International Limited, a controlling subsidiary of China Gezhouba Group Company Limited, has signed a $600 million contract with Philippine Green Energy Management Company Limited for the Diduyon hydropower project in Manila on December 18, as the Board of Directors of CGGC announced.

The Diduyon hydropower project lies on Diduyon River, a tributary of Cagayan River in the north of Luzon Island.

According to the contract, CGGC will build the project in engineering, procurement and construction mode. The scope of works includes a 103-meter, high-rolling compaction concrete dam; an 11-kilometer intake tunnel; a 332-megawatt powerhouse and associated switchyard; a 45-kilometer transmission line; and a 40-kilometer permanent highway. The total amount of the contract will be $600,787,561. The total construction period will be 60 months, starting with the order for commencement from the owner.

As announced, the project will be financed by loans from a Chinese bank. Effectiveness of the contract is subject to the approval of the financing agreement.

As the listed flagship of China Gezhouba Group Corporation, a large enterprise group directly affiliated to the state-owned Assets Supervision and Administration Commission of the State Council, CGGC is initially established for the construction of Gezhouba Dam, the first hydropower project built on the mainstream of the Yangtze River, in 1970, and is now a leading contractor for hydropower and infrastructures in China.

CGGC also has been actively engaged in expanding the overseas market. So far, CGGC has taken on more than 30 contracts in hydroelectric projects, highways, and water supply in the Middle East, South Asia, Southeast Asia and Africa. With rapid growth in the number of international contracts and turnover in the past years, CGGC has become one of the fastest-growing international contractors and has been consecutively listed in ENR's Top 225 International Contractors. Business income of CGGC reached $2.82 billion in 2008.

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German coalition backs electricity subsidy for industries

Germany Industrial Electricity Price Subsidy weighs subsidies for energy-intensive industries to bolster competitiveness as Germany shifts to renewables, expands grid capacity, and debates free-market tax cuts versus targeted relief and long-term policies.

 

Key Points

Policy to subsidize power for energy-intensive industry, preserving competitiveness during the energy transition.

✅ SPD backs 5-7 cents per kWh for 10-15 years

✅ FDP prefers tax cuts and free-market pricing

✅ Scholz urges cheap renewables and grid expansion first

 

Germany’s three-party coalition is debating whether electricity prices for energy-intensive industries should be subsidised in a market where rolling back European electricity prices can be tougher than it appears, to prevent companies from moving production abroad.

Calls to reduce the electricity bill for big industrial producers are being made by leading politicians, who, like others in Germany, fear the country could lose its position as an industrial powerhouse as it gradually shifts away from fossil fuel-based production, amid historic low energy demand and economic stagnation concerns.

“It is in the interest of all of us that this strong industry, which we undoubtedly have in Germany, is preserved,” Lars Klingbeil, head of Germany’s leading government party SPD (S&D), told Bayrischer Rundfunk on Wednesday.

To achieve this, Klingbeil is advocating a reduced electricity price for the industry of about 5 to 7 cents per Kilowatt hour, which the federal government would subsidise. This should be introduced within the next year and last for about 10 to 15 years, he said.

Under the current support scheme, which was financed as part of the €200 billion “rescue shield” against the energy crisis, energy-intensive industries already pay 13 cents per Kilowatt hour (KWh) for 70% of their previous electricity needs, which is substantially lower than the 30 to 40 cents per KWh that private consumers pay.

“We see that the Americans, for example, are spending $450 billion on the Inflation Reduction Act, and we see what China is doing in terms of economic policy,” Klingbeil said.

“If we find out in 10 years that we have let all the large industrial companies slip away because the investments are not being made here in Germany or Europe, and jobs and prosperity and growth are being lost here, then we will lose as a country,” he added.

However, not everyone in the German coalition favours subsidising electricity prices.

Finance Minister Christian Lindner of the liberal FDP (Renew), for example, has argued against such a step, instead promoting free-market principles and, amid rising household energy costs, reducing taxes on electricity for all.

“Privileging industrial companies would only be feasible at the expense of other electricity consumers and taxpayers, for example, private households or the small trade sector,” Lindner wrote in an op-ed for Handelsblatt on Tuesday.

“Increasing competitiveness for some would mean a loss of competitiveness for others,” he added.

Chancellor Olaf Scholz, himself a member of SPD, was more careful with his words, amid ongoing EU electricity reform debates in Brussels.

Asked about a subsidised electricity price for the industry at a town hall event on Monday, Scholz said he does not “want to make any promises now”.

“First of all, we have to make sure that we have cheap electricity in Germany in the first place,” Scholz said, promoting the expansion of renewable energy such as wind and solar, as local utilities cry for help, as well as more electricity grid infrastructure.

“What we will not be able to do as an economy, even as France’s new electricity pricing scheme advances, is to subsidise everything that takes place in normal economic activity,” Scholz said. “We should not get into the habit of doing that,” he added.

 

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UCP scraps electricity price cap, some will see $7 bill increase this month

Edmonton Electricity Rate Increase signals Alberta RRO changes as the UCP ends the NDP price cap; kilowatt-hour rises to 7.5 cents, raising energy bills for typical households by 3.9 percent in December.

 

Key Points

The end of Alberta’s RRO cap lifts kWh to 7.5 cents, raising an average Edmonton home’s bill about 3.9% in December.

✅ RRO price cap scrapped; kWh set at 7.5 cents in December.

✅ Average 600 kWh home pays about $7.37 more vs November.

✅ UCP ends NDP-era cap after stakeholder and consumer feedback.

 

Electricity will be more expensive for some Edmontonians in December after the UCP government scrapped a program that capped rates amid prices spiking in Alberta this year.

Effective Nov. 30, the province got rid of the consumer price cap program for Regulated Rate Option customers.

In 2017, the NDP government capped the kilowatt per hour price at 6.8 cents under a consumer price cap policy, meaning Edmontonians would pay the market rate and not more than the capped price.

In December, kWh will cost 7.5 cents amid expert warnings to lock in rates across Alberta. Typical Edmonton homes use an average of 600 kWh, increasing bills by $7.37, or 3.9 per cent, compared to November.

In Calgary, electricity bills have been rising as well, reflecting similar market pressures.

The NDP created the capacity system to bring price stability to Albertans, though a Calgary retailer urged scrapping the market overhaul at the time.

Energy Minister Sonya Savage said the UCP decided to scrap it after "overwhelming" feedback from consumers and industry stakeholders, as the province introduced new electricity rules earlier this year. 

 

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Why Canada's Energy Security Hinges on Renewables

Renewable Energy Security strengthens affordability and grid reliability through electrification, wind, and solar, reducing fossil fuel volatility exposed by the Ukraine crisis, aligning with IEA guidance and the Paris Agreement to deliver resilient, low-cost power.

 

Key Points

Renewable energy security is reliable, affordable power from electrification, wind and solar, cutting fossil fuel risk.

✅ Wind and solar now outcompete gas for new power capacity.

✅ Diversifies supply and reduces fossil price volatility.

✅ Requires grid flexibility, storage, and demand response.

 

Oil, gas, and coal have been the central pillar of the global energy system throughout the 20th century. And for decades, these fossil fuels have been closely associated with energy security.  

The perception of energy security, however, is rapidly changing. Renewables form an increasing share of energy sectors worldwide as countries look to deliver on the Paris Agreement and mitigate the effects of climate change, with IEA clean energy investment now significantly outpacing fossil fuels. Moreover, Russia’s invasion of Ukraine has demonstrated how relying on fossil fuels for power, heating, and transport has left many countries vulnerable or energy insecure.  

The International Energy Agency (IEA) defines energy security as “the uninterrupted availability of energy sources at an affordable price” (IEA, 2019a). This definition hardly describes today’s global energy situation, with the cancellation of natural gas deliveries and skyrocketing prices for oil and gas products, and with supply chain challenges in clean energy that also require attention. These circumstances have cascading effects on electricity prices in countries like the United Kingdom that rely heavily on natural gas to produce electricity. In Europe, energy insecurity has been even further amplified since the Russian corporation Gazprom recently cut off gas supplies to several countries.  

As a result, energy security has gained new urgency in Canada and worldwide, creating opportunities in the global electricity market for Canada. Recent events provide a stark reminder of the volatility and potential vulnerability of global fossil fuel markets and supply chains. Even in Canada, as one of the largest producers of oil and gas in the world, the price of fuels depends on global and regional market forces rather than government policy or market design. Thus, the average monthly price for gasoline in Canada hit a record high of CAD 2.07 per litre in May 2022 (Figure 1), and natural gas prices surged to a record CAD 7.54 per MMBtu in May 2022 (Figure 2).  

Energy price increases of this magnitude are more than enough to strain Canadian household budgets. But on top of that, oil and gas prices have accelerated inflation more broadly as it has become more expensive to produce, transport, and store goods, including food and other basic commodities (Global News, 2022).  

 

Renewable Energy Is More Affordable 

In contrast to oil and gas, renewable energy can reliably deliver affordable energy, as shown by falling wholesale electricity prices in markets with growing clean power. This is a unique and positive aspect of today’s energy crisis compared to historical crises: options for electrification and renewable-based electricity systems are both available and cost-effective.  

For new power capacity, wind and solar are now cheaper than any other source, and wind power is making gains as a competitive source in Canada. According to Equinor (2022), wind and solar were already cheaper than gas-based power in 2020. This means that renewable energy was already the cheaper option for new power before the recent natural gas price spikes. As illustrated in Figure 3, the cost of new renewable energy has dropped so dramatically that, for many countries, it is cheaper to install new solar or wind infrastructure than to keep operating existing fossil fuel-based power plants (International Renewable Energy Agency, 2021). This means that replacing fossil-based electricity generation with renewables would save money and reduce emissions. Wind and solar prices are expected to continue their downward trends as more countries increase deployment and learn how to best integrate these sources into the grid. 

 

Renewable Energy Is Reliable 

To deliver on the uninterrupted availability side of the energy security equation, renewable power must remain reliable even as more variable energy sources, like wind and solar, are added to the system, and regional leaders such as the Prairie provinces will help anchor this transition. For Canada and other countries to achieve high energy security through electrification, grid system operations must be able to support this, and pathways to zero-emissions electricity by 2035 are feasible.  

 

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Rolls-Royce expecting UK approval for mini nuclear reactor by mid-2024

Rolls-Royce SMR UK Approval underscores nuclear innovation as regulators review a 470 MW factory-built modular reactor, aiming for grid power by 2029 to boost energy security, cut fossil fuels, and accelerate decarbonization.

 

Key Points

UK regulatory clearance for Rolls-Royce's 470 MW modular reactor, targeting grid power by 2029 to support clean energy.

✅ UK design approval expected by mid 2024

✅ First 470 MW unit aims for grid power by 2029

✅ Modular, factory-built; est. £1.8b per 10-acre site

 

A Rolls-Royce (RR.L) design for a small modular nuclear reactor (SMR) will likely receive UK regulatory approval by mid-2024, reflecting progress seen in the US NRC safety evaluation for NuScale as a regulatory benchmark, and be able to produce grid power by 2029, Paul Stein, chairman of Rolls-Royce Small Modular Reactors.

The British government asked its nuclear regulator to start the approval process in March, in line with the UK's green industrial revolution agenda, having backed Rolls-Royce’s $546 million funding round in November to develop the country’s first SMR reactor.

Policymakers hope SMRs will help cut dependence on fossil fuels and lower carbon emissions, as projects like Ontario's first SMR move ahead in Canada, showing momentum.

Speaking to Reuters in an interview conducted virtually, Stein said the regulatory “process has been kicked off, amid broader moves such as a Canadian SMR initiative to coordinate development, and will likely be complete in the middle of 2024.

“We are trying to work with the UK Government, and others to get going now placing orders, echoing expansions like Darlington SMR plans in Ontario, so we can get power on grid by 2029.”

In the meantime, Rolls-Royce will start manufacturing parts of the design that are most unlikely to change, while advancing partnerships like a MoU with Exelon to support deployment, Stein added.

Each 470 megawatt (MW) SMR unit costs 1.8 billion pounds ($2.34 billion) and would be built on a 10-acre site, the size of around 10 football fields, though projects in New Brunswick SMR debate have prompted questions about costs and timelines.

Unlike traditional reactors, SMRs are cheaper and quicker to build and can also be deployed on ships and aircraft. Their “modular” format means they can be shipped by container from the factory and installed relatively quickly on any proposed site.

 

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Russian Strikes on Western Ukraine Cause Power Outages

Ukraine Energy Grid Attacks intensify as missile strikes and drone raids hit power plants, substations, and transmission lines, causing blackouts, disrupted logistics, and humanitarian strain during winter, despite repairs, air defense, and allied aid.

 

Key Points

Missile and drone strikes on Ukraine's power grid to force blackouts, strain civilians, and disrupt military logistics.

✅ Targets: power plants, substations, transmission lines

✅ Impacts: blackouts, heating loss, hospital strain

✅ Goals: erode morale, disrupt logistics, force aid burdens

 

Russia’s continued strikes on Ukraine have taken a severe toll on the country’s critical infrastructure, particularly its energy grid, as Ukraine continues to keep the lights on despite sustained bombardment. In recent months, Western Ukraine has increasingly become a target of missile and drone attacks, leading to widespread power outages and compounding the challenges faced by the civilian population. These strikes aim to cripple Ukraine's resilience during a harsh winter season and disrupt its wartime operations.

Targeting Energy Infrastructure

Russian missile and drone assaults on Ukraine’s energy grid are part of a broader strategy to weaken the country’s morale and capacity to sustain the war effort. The attacks have primarily focused on power plants, transmission lines, and substations. Western Ukraine, previously considered a relative safe haven due to its distance from front-line combat zones, is now experiencing the brunt of this campaign.

The consequences of these strikes are severe. Rolling blackouts and unplanned outages have disrupted daily life for millions of Ukrainians, though authorities say there are electricity reserves that could stabilize supply if no new strikes occur, leaving homes without heating during freezing temperatures, hospitals operating on emergency power, and businesses struggling to maintain operations. The infrastructure damage has also affected water supplies and public transportation, further straining civilian life.

Aimed at Civilian and Military Impact

Russia’s targeting of Ukraine’s power grid has dual purposes. On one hand, it aims to undermine civilian morale by creating hardships during the cold winter months, even as Ukraine works to keep the lights on this winter through contingency measures. On the other, it seeks to hinder Ukraine’s military logistics and operations, which heavily rely on a stable energy supply for transportation, communications, and manufacturing of military equipment.

These attacks coincide with a broader strategy of attritional warfare, where Moscow hopes to exhaust Ukraine’s resources and diminish its ability to continue its counteroffensive operations. By disrupting critical infrastructure, Russia increases pressure on Ukraine's allies to step up humanitarian and military aid, stretching their capacities.

Humanitarian Consequences

The impact of these power cuts on the civilian population is profound. Millions of Ukrainians are enduring freezing temperatures without consistent access to electricity or heating. Vulnerable populations, such as the elderly, children, and those with disabilities, face heightened risks of hypothermia and other health issues.

Hospitals and healthcare facilities are under immense strain, relying on backup generators that cannot sustain prolonged use. In rural areas, where infrastructure is already weaker, the effects are even more pronounced, leaving many communities isolated and unable to access essential services.

Humanitarian organizations have ramped up efforts to provide aid, including distributing generators, warm clothing, and food supplies, while many households pursue new energy solutions to weather blackouts. However, the scale of the crisis often outpaces the resources available, leaving many Ukrainians to rely on their resilience and community networks.

Ukraine's Response

Despite the challenges, Ukraine has demonstrated remarkable resilience in the face of these attacks. The government and utility companies are working around the clock to repair damaged infrastructure and restore power to affected areas. Mobile repair teams and international assistance have played crucial roles in mitigating the impact of these strikes.

Ukraine’s Western allies have also stepped in to provide support. The European Union, the United States, and other countries have supplied Ukraine with energy equipment, financial aid, and technical expertise to help rebuild its energy grid, though recent decisions like the U.S. ending support for grid restoration complicate planning and procurement. Additionally, advanced air defense systems provided by Western nations have helped intercept some of the incoming missiles and drones, though not all attacks can be thwarted.

Russia’s Escalation Strategy

Russia’s focus on Western Ukraine reflects a shift in its strategy. Previously, attacks were concentrated on front-line areas and major urban centers in the east and south. However, by targeting the western regions, Moscow seeks to disrupt the relatively stable zones where displaced Ukrainians and critical supply chains are located.

Western Ukraine is also a hub for receiving and distributing international aid and military supplies. Striking this region not only undermines Ukraine’s internal stability but also sends a message to its allies about Russia’s willingness to escalate the conflict further.

Broader Implications

The attacks on Ukraine’s energy grid have broader geopolitical implications. By targeting infrastructure, Russia intensifies the pressure on Ukraine’s allies to continue providing support, even as Kyiv has at times helped Spain amid blackouts when capacity allowed, testing their unity and resolve. The destruction also poses long-term challenges for Ukraine’s post-war recovery, as rebuilding a modern and resilient energy system will require significant investments and time.

Moreover, these attacks highlight the vulnerability of civilian infrastructure in modern warfare, echoing that electricity is civilization amid winter conditions. The deliberate targeting of non-combatant assets underscores the need for international efforts to strengthen the protection of critical infrastructure and address the humanitarian consequences of such tactics.

The Russian attacks on Western Ukraine's power grid are a stark reminder of the devastating human and economic costs of the ongoing conflict. While Ukraine continues to demonstrate resilience and adaptability, the scale of destruction underscores the need for sustained international support. As the war drags on, the focus must remain on mitigating civilian suffering, rebuilding critical infrastructure, and pursuing a resolution that ends the violence and stabilizes the region.

 

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Clean-energy generation powers economy, environment

Atlin Hydro and Transmission Project delivers First Nation-led clean energy via hydropower to the Yukon grid, replacing diesel, cutting emissions, and creating jobs, with a 69-kV line from Atlin, B.C., supplying about 35 GWh annually.

 

Key Points

A First Nation-led 8.5 MW hydropower and 69-kV line supplying clean energy to the Yukon, reducing diesel use.

✅ 8.5 MW capacity; ~35 GWh annually to Yukon grid

✅ 69-kV, 92 km line links Atlin to Jakes Corner

✅ Creates 176 construction jobs; cuts diesel and emissions

 

A First Nation-led clean-power generation project for British Columbia’s Northwest will provide a significant economic boost and good jobs for people in the area, as well as ongoing revenue from clean energy sold to the Yukon.

“This clean-energy project has the potential to be a win-win: creating opportunities for people, revenue for the community and cleaner air for everyone across the Northwest,” said Premier John Horgan. “That’s why our government is proud to be working in partnership with the Taku River Tlingit First Nation and other levels of government to make this promising project a reality. Together, we can build a stronger, cleaner future by producing more clean hydropower to replace fossil fuels – just as they have done here in Atlin.”

The Province is contributing $20 million toward a hydroelectric generation and transmission project being developed by the Taku River Tlingit First Nation (TRTFN) to replace diesel electricity generation in the Yukon, which is also supported by the Government of Yukon and the Government of Canada, and comes as BC Hydro demand fell during COVID-19 across the province.

“Renewable-energy projects are helping remote communities reduce the use of diesel for electricity generation, which reduces air pollution, improves environmental outcomes and creates local jobs,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “This project will advance reconciliation with TRTFN, foster economic development in Atlin and support intergovernmental efforts to reduce greenhouse gas emissions.”

TRTFN is based in Atlin with territory in B.C., the Yukon, and Alaska. TRTFN is an active participant in clean-energy development and, since 2009, has successfully replaced diesel-generated electricity in Atlin with a 2.1-megawatt (MW) hydro facility amid oversight issues such as BC Hydro misled regulator elsewhere in the province today.

TRTFN owns the Tlingit Homeland Energy Limited Partnership (THELP), which promotes economic development through clean energy. THELP plans to expand its hydro portfolio by constructing the Atlin Hydro and Transmission Project and selling electricity to the Yukon via a new transmission line, in a landscape shaped by T&D rates decisions in jurisdictions like Ontario for cost recovery.

The Government of Yukon is requiring its Yukon Energy Corporation (YEC) to generate 97% of its electricity from renewable resources by 2030. This project provides an opportunity for the Yukon government to reduce reliance on diesel generators and to meet future load growth, at a time when Manitoba Hydro's debt pressures highlight utility cost challenges.

The new transmission line between Atlin and the Yukon grid will include a fibre-optic data cable to support facility operations, with surplus capacity that can be used to bring high-speed internet connectivity to Atlin residents for the first time.

“Opportunities like this hydroelectricity project led by the Taku River Tlingit First Nation is a great example of identifying and then supporting First Nations-led clean-energy opportunities that will support resilient communities and provide clean economic opportunities in the region for years to come. We all have a responsibility to invest in projects that benefit our shared climate goals while advancing economic reconciliation.” said George Heyman, Minister of Environment and Climate Change Strategy.

“Thank you to the Government of British Columbia for investing in this important project, which will further strengthen the connection between the Yukon and Atlin. This ambitious initiative will expand renewable energy capacity in the North in partnership with the Taku River Tlingit First Nation while reducing the Yukon’s emissions and ensuring energy remains affordable for Yukoners.“ said Sandy Silver, Premier of Yukon.

“The Atlin Hydro Project represents an important step toward meeting the Yukon’s growing electricity needs and the renewable energy targets in the Our Clean Future strategy. Our government is proud to contribute to the development of this project and we thank the Government of British Columbia and all partners for their contributions and commitment to renewable energy initiatives. This project demonstrates what can be accomplished when communities, First Nations and federal, provincial and territorial governments come together to plan for a greener economy and future.” said John Streicker, Minister Responsible for the Yukon Development Corporation. 

“Atlin has enjoyed clean and renewable energy since 2009 because of our hydroelectric project. Over its lifespan, Atlin’s hydro opportunity will prevent more than one million tonnes of greenhouse gases from being created to power the southern Yukon. We are looking forward to the continuation of this project. Our collective dream is to meet our environmental and economic goals for the region and our local community within the next 10 years. We are so grateful to all our partners involved for their financial support, as we continue onward in creating an energy efficient and sustainable North.” said Charmaine Thom, Taku River Tlingit First Nation spokesperson.

Quick Facts:

  • The 8.5-MW project is expected to provide an average of 35 gigawatt hours of energy annually to the Yukon. To accomplish this, TRTFN plans to leverage the existing water storage capability of Surprise Lake, add new infrastructure, and send power 92 km north to Jakes Corner, Yukon, along a new 69-kilovolt transmission line.
  • The project is expected to cost $253 - 308.5 million, the higher number reflecting recently estimated impacts of inflation and supply chain cost escalation, alongside sector accounting concerns such as deferred BC Hydro costs noted in recent reports.
  • The project is expected to have a positive impact on local and provincial economic development in the form of, even as governance debates like Manitoba Hydro board changes draw attention elsewhere:
  • 176 full-time positions during construction;
  • six to eight full-time positions in operations and maintenance over 40 years; and
  • increased business for B.C. contractors.
  • Territorial and federal funders have committed $151.1 million to support the project, most recently the $32.2 million committed in the 2022 federal bdget.

 

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