Does NB Power deal serve Canada?

Calgary Electricity Price Increase signals higher ENMAX bills as grid demand surges; wholesale market volatility, fixed vs floating rates, kWh costs, and transmission charges drive above-average pricing across Alberta this winter.

Key Points

A market-led rise in Calgary power rates as grid demand and wholesale volatility affect fixed and floating plans.

✅ ENMAX warns of higher winter prices amid record grid demand

✅ Fixed rates hedge wholesale volatility; floating tracks spot market

✅ Transmission and distribution fees rise 5-10 percent annually

Calgarians should expect to be charged more for their electricity bills amid significant demand on the grid and a transition to above-average rates across Alberta.

ENMAX, one of the most-used electricity providers in the city, has sent an email to customers notifying them of higher prices for the rest of the winter months.

“Although fluctuations in electricity market prices are normal, we have seen a general trend of increasing rates over time,” the email to customers read.

“The price volatility we are forecasting is due to market factors beyond a single energy provider, including but not limited to expectations for a colder-than-normal winter and changes in electricity supply and demand in Alberta’s wholesale market. ”

Earlier this month, the province set a record for electricity usage during a bitterly cold stretch of weather.

According to energy comparison website energyrates.ca, Alberta’s energy prices have increased by 34 per cent between November 2020 and 2021.

“One of the reasons that this increase seems so significant is we’re actually coming off of a low period in the market,” the site’s founder Joel MacDonald told Global News. “You’re seeing rates well below average transitioning to well above average.”

According to ENMAX’s rate in January, the price of electricity currently sits at 15.9 cents per kilowatt-hour, with an electricity price spike from 7.9 cents per kilowatt-hour last year.

MacDonald said prices for electricity have been relatively low since 2018 but a swing in the price of oil has created more activity in the province’s industrial sector, and in turn more demand on the power grid.

According to MacDonald, the price increase can also be attributed to the removal of a consumer price cap that limited regulated rates to 6.8 cents per kilowatt-hour for households and small businesses with lower demand, which, after the carbon tax was repealed, initially remained in place.

Although the cap was scrapped by the UCP three years ago, he said energy bills now depend on the rate set by the market.

“What’s increased now recently is actually the price per kilowatt, and the (transmission and distribution) charges have only increased, but annually they increase between five and 10 per cent,” MacDonald said. “So the portion of your bill that’s increasing is different than what Albertans are typically used to, or at least in recent memory.”

But Albertans do have options, MacDonald said.

As part of its email to customers, ENMAX sent a list of energy saving tips to reduce energy consumption in people’s homes, including using cold water for laundry and avoiding dryer use, energy-efficient lightbulbs and unplugging electronics when they are not in use.

Retailers also offer contracts with floating or fixed rates for consumers.

“Fixed rates, obviously, you’re going to pick your price. It’s going to be the same each and every single month,” MacDonald said. “Floating rate is based off the wholesale spot market, and that has been exceptionally high the last few months.”

He said consumers looking to save money when electricity prices are high should look into a fixed rate.

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U.S. Energy Crunch disrupts fuel and power markets, driving natural gas price spikes, coal resurgence, utility mix shifts, supply chain strains for EV batteries, and inflation pressures, complicating climate policy, OPEC outreach and LNG trade

Key Points

Supply-demand gaps raise fuel costs, revive coal, strain EV materials, and complicate U.S. climate policy and plans.

✅ Natural gas spikes shift generation from gas to coal

✅ Supply chain shortages hit nickel, silicon, and chips

✅ Policy tensions between price relief and decarbonization

A global energy crunch is creating pain for people struggling to fill their tanks and heat their homes, as well as roiling the utility industry’s plans to change its mix of generation and complicating the Biden administration’s plans to tackle climate change.

The ripple effects of a surge in natural gas prices include a spike in coal use and emissions that counter clean energy targets. High fossil fuel prices also are translating into high prices and a supply crunch for key minerals like silicon used in clean energy projects. On a call with investors yesterday, a Tesla Inc. executive said the company is having a hard time finding enough nickel for batteries.

The crisis could pose political problems for the Biden administration, which spent the last few months fending off criticism about rising fuel prices and inflation (Energywire, Oct. 14).

“Energy issues at this moment are as salient to the American public as they have been in quite some time,” said Christopher Borick, who directs the Muhlenberg College Institute of Public Opinion in Pennsylvania, where Biden stopped yesterday to pitch his infrastructure plan.

While gasoline prices have gotten headlines all summer, natural gas prices have risen faster than motor fuels, more than doubling from an average $1.92 per thousand cubic feet in September 2020 to $5.16 last month. By comparison, gasoline prices have risen about 55 percent in the last year, to $3.36 per gallon nationwide this week, according to AAA.

The roots of the problem go back to the beginning of the pandemic and the recession in 2020. Oil and gas prices fell so fast then that many producers, particularly in the U.S., simply stopped drilling.

Oil companies began predicting a few months later that the abrupt shutdown would eventually lead to shortages and price spikes when the economy recovered. Those predictions turned out to be accurate.

With the economy beginning to recover, demand for gas has gone up, but there’s not enough supply to go around.

While the U.S. energy crunch isn’t as severe as Europe’s energy crisis today, and analysts predict that gas prices will gradually fall next year, consumers could be in for a rough couple of months.

Here’s four ways the global energy crisis is impacting the United States, from the electricity sector to the political landscape:

What are the political repercussions?
For the Biden administration, the energy price hikes come amid fears of rising inflation and persistent supply bottlenecks at the nation’s ports as its climate ambitions face headwinds in Congress.

“The confluence of energy prices, logistical challenges and the need to move on climate have raised this to the top tier,” said Borick, who in the past has polled on energy and environmental issues in Pennsylvania.

Borick noted the administration is facing counterpressures: Even as it pushes to decarbonize the nation’s electric system, it wants to keep gas prices in check. High gasoline prices have been linked to declining political approval ratings, including for presidents, even if much of the price hikes are beyond their control.

White House press secretary Jen Psaki said earlier this month that the administration can take steps to address what it called “short-term supply issues,” but also needs to focus on the long term — and climate.

In hopes of capping prices, the White House has spoken with members of OPEC about increasing oil production — though OPEC has little control over natural gas prices. And earlier this month, the administration talked to U.S. oil and gas producers about helping to bring down prices.

That comes even as environmentalists have pushed Biden to ban federal fossil fuel leasing and drilling and stop new projects.

The moves to curb prices have prompted ridicule from Republicans, who have accused Biden of declaring war on U.S. energy by canceling the Keystone XL pipeline.

“The Biden administration won’t say it out loud, yet let’s admit it: There is a crisis,” Sen. John Barrasso (R-Wyo.) said this week on the Senate floor. “It is one that Joe Biden and his administration has created. It is a crisis of Joe Biden’s own making.”

The situation has also resurfaced comparisons to former President Carter, who struggled politically in the 1970s with gasoline shortages and other energy pressures. Some political scientists say, though, the comparison between the two isn’t apples to apples.

"In 1979, the crisis began with the Iranian Revolution, producing a supply shortage. In the USA, some states rationed the supply. That’s not occurring now. Oil prices were also regulated, another difference, “ said Terry Madonna, a senior fellow in residence for political affairs at Millersville University.

A Morning Consult poll released yesterday carried warning signs for Democrats with worries about the economy on the rise across the political spectrum.

Voters, however, were evenly split on how Biden is handling energy. Forty-two percent of respondents approve of Biden’s energy policy, compared with 45 percent who disapproved. The margin of error is 2 percentage points.

Will the electricity mix change?
Higher gas prices are giving coal a boost in some markets.

Atlanta-based Southern Co. told CNBC earlier this week, for instance, that coal was about 17 percent of the company’s power mix last year. That has changed in 2021.

“The unintended consequence of high gas prices is that coal becomes more economic, and so my sense is … our coal production has bumped up above 20 percent,” Southern CEO Tom Fanning said. “Now, how long that’ll persist, I don’t know.”

Fanning said “what we’re seeing right now, and the real challenge in America, is this notion of energy in transition.”

But the U.S. power sector has been evolving for years, with more renewables and less coal on the grid, and experts say the current energy crunch won’t change long-term utility trends in the industry.

“In general, I wouldn’t place too much emphasis on short-term fluctuations,” Jay Apt, a professor at Carnegie Mellon University, said in an email. “There is still a robust supply chain for most components needed for low-pollution power, including renewables.”

In fact, elevated fossil fuel prices, and high natural gas prices in particular, could accelerate the move toward wind, solar and batteries in some areas. That’s because power plants that run on coal and natural gas can be affected by rising and volatile fuel prices, as illustrated by the recent move in commodities globally. That means higher costs to run the facilities, even if power prices often climb along with gas prices.

“If I were a utility planner, this would cause me to double down on new generation from [wind] and solar and storage as opposed to building additional natural gas plants where, you know, I could be having these super high and volatile operating costs,” said Bri-Mathias Hodge, an associate professor in the Department of Electrical, Computer and Energy Engineering at the University of Colorado, Boulder.

Ed Hirs, an energy fellow at the University of Houston, said the current global situation doesn’t change the U.S. power sector’s overall move toward generation with lower operating costs.

For example, he said nuclear and coal plants can require hundreds of employees, and both have fuel costs. Hirs said a gas facility also needs fuel and may need dozens of employees. Wind and solar facilities often need a smaller number of workers and don’t require fuel in their operations, he noted.

“Eventually the cheap wins out,” Hirs said.

That isn’t even factoring in climate change — the reason world leaders are seeking to slash greenhouse gas emissions. Indeed, lowering emissions remains a priority among many states and big companies in the U.S.

Over the next 10 to 15 years, Hirs said, a key question will be whether battery technology can compete economically in terms of backing up renewables. He said a national carbon price, if enacted, would aid renewables and enhance returns on batteries.

“The real battle is going to be between natural gas and battery storage,” Hirs said.

Apt and M. Granger Morgan, who’s also a Carnegie Mellon professor, noted in a Hill piece last month that the U.S. gets about 40 percent of its power from carbon-free sources, including nuclear.

“Modelers and many power system operators agree that it is possible that renewables can cost-effectively make up roughly 80% of electricity generation,” the professors wrote, adding that other sources could include “storage and gas turbines powered with hydrogen, synfuels, or natural gas with carbon capture.”

What about EVs and renewables?
As for electric vehicles, executives with Tesla said on a call yesterday that supply-chain problems are the major brake on production for both vehicles and batteries.

Chief Financial Officer Zachary Kirkhorn said that the company’s factories aren’t running at full capacity because of an ongoing shortage of semiconductor chips. Customers are waiting longer for vehicles, he said, and wait lists are growing.

The challenges extend to raw materials. In batteries, Kirkhorn said, the company is having trouble finding enough nickel, and in vehicles, it is scrounging for aluminum. He said the problem is "not small," and that prices may rise as supply contracts come up for renewal.

The supply problems are creating "cost headwinds," he said, and so are rising labor costs. Tesla is not immune from the worker shortages that are plaguing the entire U.S. economy.

The production woes aren’t limited to Tesla: Automakers around the world have have had their output crimped by the chip shortage that accompanied the economic rebound after pandemic lockdowns. Unlike many other automakers, Tesla hasn’t been forced to pause its factory lines.

Tesla said it is poised to greatly expand its production of batteries for the electric grid — with a caveat.

Last month, Tesla broke ground on a new California factory to make Megapack, its 3 megawatt-per-hour lithium-ion batteries for use by power companies. That future factory’s capacity, 40 gigawatt per hour a year, is vastly more than the 3 GWh it made in the last calendar year.

However, today’s supply-chain problems are braking the making of both Megapack and Powerwall, Tesla’s battery for homes, Kirkhorn said. He added that production will increase "as soon as parts allow us."

Other advocates for EVs and renewable power expressed little concern about the supply crunch’s meaning for their industries, noting that higher prices alone don’t automatically trigger a broader green revolution on their own.

Those problems likely wouldn’t change the immediate course of the energy transition, researchers said.

"Short-term trends, week to week or even month to month, don’t matter much for investors or policy makers," wrote John Graham, a former budget official with the Bush administration and professor at Indiana University’s O’Neill School of Public and Environmental Affairs, in an email to E&E News.

The crunch may give policymakers a glimpse of the future, however, according to one minerals analyst.

"This isn’t going to be an outlier. I think increasingly you’re going to see pockets of the world start to feel these strains," said Andrew Miller, product director at Benchmark Mineral Intelligence, which focuses its research on battery minerals and battery supply chains.

The U.S. and its allies are only now beginning to develop their own supply chains for batteries and other key clean energy technologies, he noted. "The issue you’re facing, and this is one coming over time, is to have the platform in place. You have to have the supply chain of raw materials," he said.

"I think you’re going to see the most turbulence over the coming decade. … It’s not going to be a smooth transition,” added Miller.

How long will gas prices stay high?
The gap between natural gas demand and supply has led to severe price spikes in Europe, where utilities and other gas buyers have to compete against China for cargoes of liquefied natural gas, according to a research note from IHS Markit Ltd.

Here in the U.S., the causes are the same, but the results aren’t as extreme. Less than 10 percent of domestic gas production is exported as LNG, so American customers don’t have to compete as much against overseas buyers.

Instead, gas-hungry sectors of the economy have run into another problem, IHS analyst Matthew Palmer said in an interview. Gas producers have been cautious about increasing their output, largely because of pressure from investors to limit their spending.

“That theme has really put a governor on production,” he said.

The disconnect will likely mean higher home gas bills and higher electric prices this winter, although deep freeze events or warm weather could disrupt the trend, he said. The U.S. Energy Information Administration is predicting that average heating bills for homes that use gas furnaces will rise 30 percent this winter.

This comes as U.S. gas supply remains high, according to a biennial assessment from the Potential Gas Committee, a group of volunteer geoscientists, engineers and other experts.

Including reserves, future gas supply in the U.S. stands at a record 3,863 trillion cubic feet, up 25 tcf from levels reported in 2019, the group said Tuesday at an event co-hosted with the American Gas Association.

Of that total, so-called technically recoverable resources — or those in the ground but not yet recovered — are 3,368 tcf, the PGC said, down less than 0.2 percent from the last assessment.

The amount of technically recoverable gas went relatively unchanged from year-end 2018 for several reasons, including a lack of company activity in exploration efforts last year due to COVID, said Alexei Milkov, the group’s executive director.

Another factor is that basins mature and shale plays “cannot increase in resources forever,” said Milkov, also a professor of geology and geological engineering at the Colorado School of Mines.

Still, Milkov added, “We cannot tell you right now if we are on a new plateau, or if we are going to start seeing more growth in gas resources again, right, because it’s a complex issue.”

The EIA predicts that gas production will increase and prices will begin to drop in 2022.

David Flaherty, CEO of the Republican polling firm Magellan Strategies in Colorado, said prices could particularly hit seniors. But he said he expected the energy crunch to ease in the U.S. well before the election.

“By early summer, this is likely to be behind us,” he said.

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Nighttime thermoradiative power converts outgoing infrared radiation into electricity using semiconductor photodiodes, leveraging negative illumination and sky cooling to harvest renewable energy from Earth-to-space heat flow when solar panels rest, regardless of weather.

Key Points

Nighttime thermoradiative power converts Earth's outgoing infrared heat into electricity using semiconductor diodes.

✅ Uses negative illumination to tap Earth-to-space heat flow

✅ Infrared semiconductor photodiodes generate small nighttime current

✅ Theoretical output ~4 W/m^2; lab demo reached 64 nW/m^2

There's a stark contrast between the freezing temperatures of space and the relatively balmy atmosphere of Earth, and that contrast could help generate electricity, scientists say – and alongside concepts such as space-based solar power, utilizing the same optoelectronic physics used in solar panels. The obvious difference this would have compared with solar energy is that it would work during the night time, a potential source of renewable power that could keep on going round the clock and regardless of weather conditions.

Solar panels are basically large-scale photodiodes - devices made out of a semiconducting material that converts the photons (light particles) coming from the Sun into electricity by exciting electrons in a material such as silicon, while concepts like space solar beaming could complement them during adverse weather.

In this experiment, the photodiodes work 'backwards': as photons in the form of infrared radiation - also known as heat radiation - leave the system, a small amount of energy is produced, similar to how raindrop electricity harvesting taps ambient fluxes in other experiments.

This way, the experimental system takes advantage of what researchers call the "negative illumination effect" – that is, the flow of outgoing radiation as heat escapes from Earth back into space. The setup explained in the new study uses an infrared semiconductor facing into the sky to convert this flow into electrical current.

"The vastness of the Universe is a thermodynamic resource," says one of the researchers, Shanhui Fan from Stanford University in California.

"In terms of optoelectronic physics, there is really this very beautiful symmetry between harvesting incoming radiation and harvesting outgoing radiation."

It's an interesting follow-up to a research project Fan participated in last year: a solar panel that can capture sunlight while also allowing excess heat in the form of infrared radiation to escape into space.

In the new study, this "energy harvesting from the sky" process can produce a measurable amount of electricity, the researchers have shown – though for the time being it's a long way from being efficient enough to contribute to our power grids, but advances in peer-to-peer energy sharing could still make niche deployments valuable.

In the team's experiments they were able to produce 64 nanowatts per square metre (10.8 square feet) of power – only a trickle, but an amazing proof of concept nevertheless. In theory, the right materials and conditions could produce a million times more than that, and analyses of cheap abundant electricity show how rapidly such advances compound, reaching about 4 watts per square metre.

"The amount of power that we can generate with this experiment, at the moment, is far below what the theoretical limit is," says one of the team, Masashi Ono from Stanford.

When you consider today's solar panels are able to generate up to 100-200 watts per square metre, and in China solar is cheaper than grid power across every city, this is obviously a long way behind. Even in its earliest form, though, it could be helpful for keeping low-power devices and machines running at night: not every renewable energy device needs to power up a city.

Now that the researchers have proved this can work, the challenge is to improve the performance of the experimental device. If it continues to show promise, the same idea could be applied to capture energy from waste heat given off by machinery, and results in humidity-powered generation suggest ambient sources are plentiful.

"Such a demonstration of direct power generation of a diode facing the sky has not been previously reported," explain the researchers in their published paper.

"Our results point to a pathway for energy harvesting during the night time directly using the coldness of outer space."

The research has been published in Applied Physics Letters.

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Ontario ICI Electricity Pricing Freeze helps Industrial Conservation Initiative (ICI) participants by stabilizing Global Adjustment charges, suspending peak hours curtailment, and reducing COVID-19-related electricity cost volatility to support large employers returning operations to full capacity.

Key Points

A two-year policy stabilizing GA costs and pausing peak-hour cuts to aid industrial and commercial recovery.

✅ GA cost share frozen for two years

✅ No peak-hour curtailment obligations

✅ Supports industrial and commercial restart

The Ontario government is helping large industrial and commercial companies return to full levels of operation without the fear of electricity costs spiking by providing more stable electricity pricing for two years. Effective immediately, companies that participate in the Industrial Conservation Initiative (ICI) will not be required to reduce their electricity usage during peak hours or shift some load to ultra-low overnight pricing where applicable, as their proportion of Global Adjustment (GA) charges for these companies will be frozen.

"Ontario's industrial and commercial electricity consumers continue to experience unprecedented economic challenges during COVID-19, with electricity relief for households and small businesses introduced to help," said Greg Rickford, Minister of Energy, Northern Development and Mines. "Today's announcement will allow large industrial employers to focus on getting their operations up and running and employees back to work, instead of adjusting operations in response to peak electricity demand hours."

Due to COVID-19, electricity consumption in Ontario has been below average as fall in demand as people stayed home across the province, and the province is forecast to have a reliable supply of electricity, supported by the system operator's staffing contingency plans during the pandemic, to accommodate increased usage. Peak hours generally occur during the summer when the weather is hot and electricity demand from cooling systems is high.

"Today's action will reduce the burden of anticipating and responding to peak hours for more than 1,300 ICI participants with 2,000 primarily industrial facilities in Ontario," said Bill Walker, Associate Minister of Energy. "Now these large employers can focus on getting their operations back up and running at full tilt and explore new energy-efficiency programs to manage costs."

The government previously announced it was providing temporary relief for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan (RPP) by deferring a portion of GA charges for April, May and June 2020 and by extending off-peak rates for many customers, as well as a disconnect moratorium extension for residential electricity users.

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EU Electrification Strategy 2050 outlines shifting transport, buildings, and industry to clean power, accelerating EV adoption, heat pumps, and direct electrification to meet targets, reduce emissions, and replace fossil fuels with renewables and low-carbon grids.

Key Points

EU plan to cut emissions 95% by 2050 by electrifying transport, buildings and industry with clean power.

✅ 60% of final energy from electricity by 2050

✅ EVs dominate transport; up to 63% electric share

✅ Heat pumps electrify buildings; industry to 50% direct

The European Union has one of the most ambitious carbon emission reduction goals under the global Paris Agreement on climate change – a 95% reduction by 2050.

It seems that everyone has an idea for how to get there. Some are pushing nuclear energy. Others are pushing for a complete phase-out of fossil fuels and a switch to renewables.

Today the European electricity industry came out with their own plan, amid expectations of greater electricity price volatility in Europe in the coming years. A study published today by Eurelectric, the trade body of the European power sector, concludes that the 2050 goal will not be possible without a major shift to electricity in transport, buildings and industry.

The study finds that for the EU to reach its 95% emissions reduction target, electricity needs to cover at least 60 percent of final energy consumption by 2050. This would require a 1.5 percent year-on-year growth of EU electricity use, with evidence that EVs could raise electricity demand significantly in other markets, while at the same time reducing the EU’s overall energy consumption by 1.3 percent per year.

#google#

Transport is one of the areas where electrification can deliver the most benefit, because an electric car causes far less carbon emissions than a conventional vehicle, with e-mobility emerging as a key driver of electricity demand even if that electricity is generated in a fossil fuel power plant.

In the most ambitious scenario presented by the study, up to 63 percent of total final energy consumption in transport will be electric by 2050, and some analyses suggest that mass adoption of electric cars could occur much sooner, further accelerating progress.

Building have big potential as well, according to the study, with 45 to 63 percent of buildings energy consumption could be electric in 2050 by converting to electric heat pumps. Industrial processes could technically be electrified with up to 50 percent direct electrification in 2050, according to the study. The relative competitiveness of electricity against other carbon-neutral fuels will be the critical driver for this shift, but grid carbon intensity differs across markets, such as where fossil fuels still supply a notable share of generation.

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UK Energy Networks Coronavirus Contingency outlines ESO's lockdown electricity demand forecast, reduced industrial and commercial load, rising domestic use, Ofgem guidance needs, grid resilience, control rooms, mutual aid, and backup centers.

Key Points

A coordinated plan with ESO forecasts, safeguards, and mutual aid to keep power and gas services during a lockdown.

✅ ESO forecasts lower industrial use, higher domestic demand

✅ Control rooms protected; backup sites and cross-trained staff

✅ Mutual aid and Ofgem coordination bolster grid resilience

National Grid ESO is predicting a reduction in electricity demand, consistent with residential use trends observed during the pandemic, in the case of the coronavirus spread prompting a lockdown across the country.

Its analysis shows the reduction in commercial and industrial use would outweigh an upsurge in domestic demand, mirroring Ontario demand data seen as people stayed home, according to similar analyses.

The prediction was included in an update from the Energy Networks Association (ENA), in which it sought to reassure the public that contingency plans are in place, reflecting utility disaster planning across electric and gas networks, to ensure services are unaffected by the coronavirus spread.

The body, which represents the UK's electricity and gas network companies, said "robust measures" had been put in place to protect control rooms and contact centres, similar to staff lockdown protocols considered by other system operators, to maintain resilience. To provide additional resilience, engineers have been trained across multiple disciplines and backup centres exist should operations need to be moved if, for example, deep cleaning is required, the ENA said.

Networks also have industry-wide mutual aid arrangements, similar to grid response measures outlined in the U.S., for people and the equipment needed to keep gas and electricity flowing.

ENA chief executive, David Smith, said, echoing system reliability assurances from other markets: "The UK's electricity and gas network is one of the most reliable in the world and network operators are working with the authorities to ensure that their contingency plans are reviewed and delivered in accordance with the latest expert advice. We are following this advice closely and reassuring customers that energy networks are continuing to operate as normal for the public."

Utility Week spoke to a senior figure at one of the networks who reiterated the robust measures in place to keep the lights on, even as grid alerts elsewhere highlight the importance of contingency planning. However, they pleaded for more clarity from Ofgem and government on how its workers will be treated if the coronavirus spread becomes a pandemic in the UK.

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