Privatization plans ready for a power trip

By Globe and Mail


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It's not as flashy as gambling or booze. But if Ontario's government decides to go the privatization route, the smart money is on energy transmission.

If it were just a matter of principle, that wouldn't be the case. The government has a natural role to play in ensuring the public has a steady supply of energy; steady access to a blackjack table or a decent bottle of scotch, not so much. But it's practical considerations that will dictate what, if anything, gets sold. Dalton McGuinty's Liberals can't afford the perception that they're responding to their $24.7-billion deficit with a fire sale. So even if they're largely motivated by short-term interests, they'll have to be able to make a long-term case for privatization, in terms of how it will affect both service delivery and the government's bottom line.

To unload either the Liquor Control Board of Ontario or the Ontario Lottery and Gaming Corporation, both of which are major generators of annual revenue, would run the risk of adding to the province's structural deficit. And even if the government were able to get past that concern (a 2005 report concluded that, if done properly, selling the LCBO could actually generate more annual revenue), there are other disincentives.

Private liquor sales would be very popular in downtown Toronto, where they would probably create better options for consumers.

But that wouldn't be the case in small-town or rural Ontario, where the LCBO provides a much better range of products than those markets would otherwise demand. In other words, service in much of the province would get considerably worse - a message the LCBO's powerful union is already gearing up to deliver.

OLG is a better candidate for privatization down the road, particularly if Mr. McGuinty - a straight-laced sort who doesn't seem thrilled with being in the vice business - gets a third term. But it would be difficult to unload in the next year or two, partly because a ton of complex regulatory issues would need to be worked out. No less important is that OLG has all sorts of structural and management problems that would hurt its market value.

Unless it's looking to sell low, the government will give new corporation chair Paul Godfrey some time to fix it up.

Hydro One doesn't need fixing up. The province's energy transmission utility, which has been run competently, is already an attractive commodity. What it needs is a significant infusion of capital, which could allow Mr. McGuinty to make the case for its privatization.

From the government's perspective, the most attractive aspect of a Hydro One sale would be its bottom-line impact: Although Hydro One would fetch a higher price than either OLG or the LCBO, its annual profits are lower. But if Mr. McGuinty is prepared to exhibit more faith in capitalism than he has previously, he could make the argument that the real upside would be better service down the road.

By that line of thinking, private owners would be better positioned to spend the billions of dollars needed to upgrade the transmission system in the years ahead, as the province tries to improve its energy efficiency and facilitate green energy expansion.

To sell Ontarians on all this, Mr. McGuinty would need to overcome skepticism about the private sector's commitment to acting in the public interest.

It helps that the purchaser would almost certainly be one of the province's big pension funds, which have a public dimension to them. But the key would be in negotiating a very clear set of expectations, and penalties for failing to meet them.

There are many Liberals at Queen's Park who advise against any privatization at all. Mr. McGuinty already has more than enough on his plate trying to sell the new harmonized sales tax; it may be too much for him to also become the champion of privatization that he railed against during his opposition days.

The Liberals who argue for privatization aren't pretending it'll be easy.

But those familiar with the files generally agree that selling Hydro One would be easier than the other options, even though it provides the more essential public service.

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Cost of US nuclear generation at ten-year low

US Nuclear Generating Costs 2017 show USD33.50/MWh for nuclear energy, the lowest since 2008, as capital expenditures, fuel costs, and operating costs declined after license renewals and uprates, supporting a reliable, low-carbon grid.

 

Key Points

The 2017 US nuclear average was USD33.50/MWh, lowest since 2008, driven by reduced capital, fuel, and operating costs.

✅ Average cost USD33.50/MWh, lowest since 2008

✅ Capital, fuel, O&M costs fell sharply since 2012 peak

✅ License renewals, uprates, market reforms shape competitiveness

 

Average total generating costs for nuclear energy in 2017 in the USA were at their lowest since 2008, according to a study released by the Nuclear Energy Institute (NEI), amid a continuing nuclear decline debate in other regions.

The report, Nuclear Costs in Context, found that in 2017 the average total generating cost - which includes capital, fuel and operating costs - for nuclear energy was USD33.50 per megawatt-hour (MWh), even as interest in next-generation nuclear designs grows among stakeholders. This is 3.3% lower than in 2016 and more than 19% below 2012's peak. The reduction in costs since 2012 is due to a 40.8% reduction in capital expenditures, a 17.2% reduction in fuel costs and an 8.7% reduction in operating costs, the organisation said.

The year-on-year decline in capital costs over the past five years reflects the completion by most plants of efforts to prepare for operation beyond their initial 40-year licence. A few major items - a series of vessel head replacements; steam generator replacements and other upgrades as companies prepared for continued operation, and power uprates to increase output from existing plants - caused capital investment to increase to a peak in 2012. "As a result of these investments, 86 of the [USA's] 99 operating reactors in 2017 have received 20-year licence renewals and 92 of the operating reactors have been approved for uprates that have added over 7900 megawatts of electricity capacity. Capital spending on uprates and items necessary for operation beyond 40 years has moderated as most plants are completing these efforts," it says.

Since 2013, seven US nuclear reactors have shut down permanently, with the Three Mile Island debate highlighting wider policy questions, and another 12 have announced their permanent shutdown. The early closure for economic reasons of reliable nuclear plants with high capacity factors and relatively low generating costs will have long-term economic consequences, the report warns: replacement generating capacity, when needed, will produce more costly electricity, fewer jobs that will pay less, and, for net-zero emissions objectives, more pollution, it says.

NEI Vice President of Policy Development and Public Affairs John Kotek said the "hardworking men and women of the nuclear industry" had done an "amazing job" reducing costs through the institute's Delivering the Nuclear Promise campaign and other initiatives, in line with IAEA low-carbon lessons from the pandemic. "As we continue to face economic headwinds in markets which do not properly compensate nuclear plants, the industry has been doing its part to reduce costs to remain competitive," he said.

"Some things are in urgent need of change if we are to keep the nation's nuclear plants running and enjoy their contribution to a reliable, resilient and low-carbon grid. Namely, we need to put in place market reforms that fairly compensate nuclear similar to those already in place in New York, Illinois and other states," Kotek added.

Cost information in the study was collected by the Electric Utility Cost Group with prior years converted to 2017 dollars for accurate historical comparison.

 

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UN: Renewable Energy Ambition in NDCs must Double by 2030

NDC Renewable Energy Ambition drives COP25 calls to align with the Paris Agreement, as IRENA urges 2030 targets toward 7.7 TW, accelerating decarbonization, energy transition, socio-economic benefits, and scalable renewables in Nationally Determined Contributions.

 

Key Points

Raised 2030 renewable targets in NDCs to meet Paris goals, reaching 7.7 TW efficiently and speeding decarbonization.

✅ Double current NDC renewables to align with 7.7 TW by 2030

✅ Cost effective pathway with jobs, growth, welfare gains

✅ Accelerates decarbonization and energy access per UN goals

 

We need an oracle to get us out of this debacle. The UN climate group has met for the 25th time. Will anything ever change?

Countries are being urged to significantly raise renewable energy ambition and adopt targets to transform the global energy system in the next round of Nationally Determined Contributions (NDCs), according to a new IRENA report by the International Renewable Energy Agency (IRENA) that will be released at the UN Climate Change Conference (COP25) in Madrid.

The report will show that renewable energy ambition within NDCs would have to more than double by 2030 to put the world in line with the Paris Agreement goals, cost-effectively reaching 7.7 terawatts (TW) of globally installed capacity by then. Today’s renewable energy pledges under the NDCs are falling short of this, targeting only 3.2 TW, even as over 30% of global electricity is already generated from renewables.

The reportNDCs in 2020: Advancing Renewables in the Power Sector and Beyondwill be released at IRENA’s official side event on enhancing NDCs and raising ambition on 11 December 2019.It will state that with over 2.3 TW installed renewable capacity today, following a record year for renewables in 2016, almost half of the additional renewable energy capacity foreseen by current NDCs has already been installed.

The analysis will also highlight that delivering on increased renewable energy ambition can be achieved in a cost-effective way and with considerable socio-economic benefits across the world.

“Increasing renewable energy targets is absolutely necessary,” said IRENA’s Director-General Francesco La Camera. “Much more is possible. There is a decisive opportunity for policy makers to step up climate action, including a fossil fuel lockdown, by raising ambition on renewables, which are the only immediate solution to meet rising energy demand whilst decarbonizing the economy and building resilience.

“IRENA’s analysis shows that a pathway to a decarbonised economy is technologically possible and socially and economically beneficial,” continued Mr. La Camera.

“Renewables are good for growth, good for job creation and deliver significant welfare benefits. With renewables, we can also expand energy access and help eradicate energy poverty by ensuring clean, affordable and sustainable electricity for all in line with the UN Sustainable Development Agenda 2030.

IRENA will promote knowledge exchange, strengthen partnerships and work with all stakeholders to catalyse action on the ground. We are engaging with countries and regions worldwide, from Ireland's green electricity push to other markets, to facilitate renewable energy projects and raise their ambitions”.

NDCs must become a driving force for an accelerated global energy transformation toward 100% renewable energy globally. The current pledges reflect neither the past decade’s rapid growth nor the ongoing market trends for renewables. Through a higher renewable energy ambition, NDCs could serve to advance multiple climate and development objectives.

 

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No time to be silent on NZ's electricity future

New Zealand Renewable Energy Strategy examines decarbonisation, GHG emissions, and net energy as electrification accelerates, expanding hydro, geothermal, wind, and solar PV while weighing intermittency, storage, materials, and energy security for a resilient power system.

 

Key Points

A plan to expand electricity generation, balancing decarbonisation, net energy limits, and energy security.

✅ Distinguishes decarbonisation targets from renewable capacity growth

✅ Highlights net energy limits, intermittency, and storage needs

✅ Addresses materials, GHG build-out costs, and energy security

 

The Electricity Authority has released a document outlining a plan to achieve the Government’s goal of more than doubling the amount of electricity generated in New Zealand over the next few decades.

This goal is seen as a way of both reducing our greenhouse gas (GHG) emissions overall, as everything becomes electrified, and ensuring we have a 100 percent renewable energy system at our disposal. Often these two goals are seen as being the same – to decarbonise we must transition to more renewable energy to power our society.

But they are quite different goals and should be clearly differentiated. GHG emissions could be controlled very effectively by rationing the use of a fossil fuel lockdown approach, with declining rations being available over a few years. Such a direct method of controlling emissions would ensure we do our bit to remain within a safe carbon budget.

If we took this dramatic step we could stop fretting about how to reduce emissions (that would be guaranteed by the rationing), and instead focus on how to adapt our lives to the absence of fossil fuels.

Again, these may seem like the same task, but they are not. Decarbonising is generally thought of in terms of replacing fossil fuels with some other energy source, signalling that a green recovery must address more than just wind capacity. Adapting our lives to the absence of fossil fuels pushes us to ask more fundamental questions about how much energy we actually need, what we need energy for, and the impact of that energy on our environment.

MBIE data indicate that between 1990 and 2020, New Zealand almost doubled the total amount of energy it produced from renewable energy sources - hydro, geothermal and some solar PV and wind turbines.

Over this same time period our GHG emissions increased by about 25 percent. The increase in renewables didn’t result in less GHG emissions because we increased our total energy use by almost 50 percent, mostly by using fossil fuels. The largest fossil fuel increases were used in transport, agriculture, forestry and fisheries (approximately 60 percent increases for each).

These data clearly demonstrate that increasing renewable energy sources do not necessarily result in reduced GHG emissions.

The same MBIE data indicate that over this same time period, the amount of Losses and Own Use category for energy use more than doubled. As of 2020 almost 30 percent of all energy consumed in New Zealand fell into this category.

These data indicate that more renewable energy sources are historically associated with less energy actually being available to do work in society.

While the category Losses and Own Use is not a net energy analysis, the large increase in this category makes the call for a system-wide net energy analysis all the more urgent.

Net energy is the amount of energy available after the energy inputs to produce and deliver the energy is subtracted. There is considerable data available indicating that solar PV and wind turbines have a much lower net energy surplus than fossil fuels.

And there is further evidence that when the intermittency and storage requirements are engineered into a total renewable energy system, the net energy of the entire system declines sharply. Could the Losses and Other Uses increase over this 30-year period be an indication of things to come?

Despite the importance of net energy analysis in designing a national energy system which is intended to provide energy security and resilience, there is not a single mention of net energy surplus in the EA reference document.

So over the last 30 years, New Zealand has doubled its renewable energy capacity, and at the same time increased its GHG emissions and reduced the overall efficiency of the national energy system.

And we are now planning to more than double our renewable energy system yet again over the next 30 years, even as zero-emissions electricity by 2035 is being debated elsewhere. We need to ask if this is a good idea.

How can we expand New Zealand’s solar PV and wind turbines without using fossil fuels? We can’t.

How could we expand our solar PV and wind turbines without mining rare minerals and the hidden costs of clean energy they entail, further contributing to ecological destruction and often increasing social injustices? We can't.

Even if we could construct, deliver, install and maintain solar PV and wind turbines without generating more GHG emissions and destroying ecosystems and poor communities, this “renewable” infrastructure would have to be replaced in a few decades. But there are at least two major problems with this assumed scenario.

The rare earth minerals required for this replacement will already be exhausted by the initial build out. Recycling will only provide a limited amount of replacements.

The other challenge is that a mostly “renewable” energy system will likely have a considerably lower net energy surplus. So where, in 2060, will the energy come from to either mine or recycle the raw materials, and to rebuild, reinstall and maintain the next iteration of a renewable energy system?

There is currently no plan for this replacement. It is a serious misnomer to call these energy technologies “renewable”. They are not as they rely on considerable raw material inputs and fossil energy for their production and never ending replacement.

New Zealand is, of course, blessed with an unusually high level of hydro electric and geothermal power. New Zealand currently uses over 170 GJ of total energy per capita, 40 percent of which is “renewable”. This provides approximately 70 GJ of “renewable” energy per capita with our current population.

This is the average global per capita energy level from all sources across all nations, as calls for 100% renewable energy globally emphasize. Several nations operate with roughly this amount of total energy per capita that New Zealand can generate just from “renewables”.

It is worth reflecting on the 170 GJ of total energy use we currently consume. Different studies give very different results regarding what levels are necessary for a good life.

For a complex industrial society such as ours, 100 GJ pc is said to be necessary for a high levels of wellbeing, determined both subjectively (life satisfaction/ happiness measures), and objectively (e.g. infant mortality levels, female morbidity as an index of population health, access to nutritious food and educational and health resources, etc). These studies do not take into account the large amount of energy that is wasted either through inefficient technologies, or frivolous use, which effective decarbonization strategies seek to reduce.

Other studies that consider the minimal energy needed for wellbeing suggest a much lower level of per capita energy consumption is required. These studies take a different approach and focus on ensuring basic wellbeing is maintained, but not necessarily with all the trappings of a complex industrial society. Their results indicate a level of approximately 20 GJ per capita is adequate.

In either case, we in New Zealand are wasting a lot of energy, both in terms of the efficiency of our technologies (see the Losses and Own Use info above), and also in our uses which do not contribute to wellbeing (think of the private vehicle travel that could be done by active or public transport – if we had good infrastructure in place).

We in New Zealand need a national dialogue about our future. And energy availability is only one aspect. We need to discuss what our carrying capacity is, what level of consumption is sustainable for our population, and whether we wish to make adjustments in either our per capita consumption or our population. Both together determine whether we are on the sustainable side of carrying capacity. Currently we are on the unsustainable side, meaning our way of life cannot endure. Not a good look for being a good ancestor.

The current trajectory of the Government and Electricity Authority appears to be grossly unsustainable. At the very least they should be able to answer the questions posed here about the GHG emissions from implementing a totally renewable energy system, the net energy of such a system, and the related environmental and social consequences.

Public dialogue is critical to collectively working out our future. Allowing the current profit-driven trajectory to unfold is a recipe for disasters for our children and grandchildren.

Being silent on these issues amounts to complicity in allowing short-term financial interests and an addiction to convenience jeopardise a genuinely secure and resilient future. Let’s get some answers from the Government and Electricity Authority to critical questions about energy security.

 

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BC Hydro completes major milestone on Site C transmission line work

Site C 500 kV transmission lines strengthen the BC Hydro grid, linking the new substation and Peace Canyon via a 75 kilometre right-of-way to deliver clean energy, with 400 towers built and both circuits energized.

 

Key Points

High-voltage lines connecting Site C substation to the BC Hydro grid, delivering clean energy via Peace Canyon.

✅ Two 75 km circuits between Site C and Peace Canyon

✅ Connect new 500 kV substation to BC Hydro grid

✅ Over 400 towers built along existing right-of-way

 

The second and final 500 kilovolt, 75 kilometre transmission line on the Site C project, which has faced stability questions in recent years, has been completed and energized.

With this milestone, the work to connect the new Site C substation to the BC Hydro grid, amid treaty rights litigation that has at times shaped schedules, is complete. Once the Site C project begins generating electricity, much like when the Maritime Link first power flowed between Newfoundland and Nova Scotia, the transmission lines will help deliver clean energy to the rest of the province.

The two 75 kilometre transmission lines run along an existing right-of-way between Site C and the Peace Canyon generating station, a route that has seen community concerns from some northerners. The project’s first 500 kilovolt, 75 kilometre transmission line – along with the Site C substation – were both completed and energized in the fall of 2020.

BC Hydro awarded the Site C transmission line construction contract to Allteck Line Contractors Inc. (now Allteck Limited Partnership) in 2018. Since construction started on this part of the project in summer 2018, crews have built more than 400 towers and strung lines, even as other interties like the Manitoba-Minnesota line have faced scheduling uncertainty, over a total of 150 kilometres.

The two transmission lines are a major component of the Site C project, comparable to initiatives such as the New England Clean Power Link in scale, which also consists of the new 500 kilovolt substation and expanding the existing Peace Canyon 500 kilovolt gas-insulated switchgear to incorporate the two new 500 kilovolt transmission line terminals.

Work to complete three other 500 kilovolt transmission lines that will span one kilometre between the Site C generating station and Site C substation, similar to milestones on the Maritime Link project, is still underway. This work is expected to be complete in 2023.

 

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The Evolution of Electric Vehicle Charging Infrastructure in the US

US EV Charging Infrastructure is evolving with interoperable NACS and CCS standards, Tesla Supercharger access, federal funding, ultra-fast charging, mobile apps, and battery advances that reduce range anxiety and expand reliable, nationwide fast-charging access.

 

Key Points

Nationwide network, standards, and funding enabling fast, interoperable EV charging access for drivers across the US.

✅ NACS and CCS interoperability expands cross-network access

✅ Tesla Superchargers opening to more brands accelerate adoption

✅ Federal funding builds fast chargers along highways and communities

 

The landscape of electric vehicle (EV) charging infrastructure in the United States is rapidly evolving, driven by technological advancements, collaborative efforts between automakers and charging networks across the country, and government initiatives to support sustainable transportation.

Interoperability and Collaboration

Recent developments highlight a shift towards interoperability among charging networks, even as control over charging continues to be contested across the market today. The introduction of the North American Charging Standard (NACS) and the adoption of the Combined Charging System (CCS) by major automakers underscore efforts to standardize charging protocols. This move aims to enhance convenience for EV drivers by allowing them to use multiple charging networks seamlessly.

Tesla's Role and Expansion

Tesla, a trailblazer in the EV industry, has expanded its Supercharger network to accommodate other EV brands. This initiative represents a significant step towards inclusivity, addressing range anxiety and supporting the broader adoption of electric vehicles. Tesla's expansive network of fast-charging stations across the US continues to play a pivotal role in shaping the EV charging landscape.

Government Support and Infrastructure Investment

The federal government's commitment to infrastructure development is crucial in advancing EV adoption. The Bipartisan Infrastructure Law allocates substantial funding for EV charging station deployment along highways and in underserved communities, while automakers plan 30,000 chargers to complement public investment today. These investments aim to expand access to charging infrastructure, promote economic growth, and reduce greenhouse gas emissions associated with transportation.

Technological Advancements and User Experience

Technological innovations in EV charging, including energy storage and mobile charging solutions, continue to improve user experience and efficiency. Ultra-fast charging capabilities, coupled with user-friendly interfaces and mobile apps, simplify the charging process for consumers. Advancements in battery technology also contribute to faster charging times and increased vehicle range, enhancing the practicality and appeal of electric vehicles.

Challenges and Future Outlook

Despite progress, challenges remain in scaling EV charging infrastructure to meet growing demand. Issues such as grid capacity constraints are coming into sharp focus, alongside permitting processes and funding barriers that necessitate continued collaboration between stakeholders. Addressing these challenges is crucial in supporting the transition to sustainable transportation and achieving national climate goals.

Conclusion

The evolution of EV charging infrastructure in the United States reflects a transformative shift towards sustainable mobility solutions. Through interoperability, government support, technological innovation, and industry collaboration, stakeholders are paving the way for a robust and accessible charging ecosystem. As investments and innovations continue to shape the landscape, and amid surging U.S. EV sales across 2024, the trajectory of EV infrastructure development promises to accelerate, ensuring reliable and widespread access to charging solutions that support a cleaner and greener future.

 

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Negative Electricity Prices Amid Renewable Energy Surplus

France Negative Electricity Prices highlight surplus renewables as solar and wind output exceeds demand, driving grid flexibility, demand response, and storage signals while reshaping energy markets, lowering emissions, and improving economic efficiency and energy security.

 

Key Points

They occur when surplus solar and wind push wholesale power prices below zero, signaling flexible, low-carbon grids.

✅ Surplus solar and wind outpace demand, flipping price signals

✅ Incentivizes demand response, storage, and flexible loads

✅ Enhances decarbonization, energy security, and market efficiency

 

In a remarkable feat for renewable energy, France has recently experienced negative electricity prices due to an abundant supply of solar and wind power. This development highlights the country's progress towards sustainable energy solutions and underscores the potential of renewables to reshape global energy markets.

The Surge in Renewable Energy Supply

France's electricity grid benefited from a surplus of renewable energy generated by solar panels and wind turbines. During periods of peak production, such as sunny and windy days, the supply of electricity exceeded demand, leading to negative prices and reflecting how solar is reshaping price dynamics in Northern Europe.

Implications for Energy Markets

The occurrence of negative electricity prices reflects a shift towards a more flexible and responsive energy system. It demonstrates the capability of renewables to meet substantial portions of electricity demand reliably and economically, with evidence of falling wholesale prices in many markets, challenging traditional notions of energy supply and pricing dynamics.

Technological Advancements and Policy Support

Technological advancements in renewable energy infrastructure, coupled with supportive government policies and incentives, have played pivotal roles in France's achievement. Investments in solar farms, wind farms, and grid modernization, including the launch of France's largest battery storage platform by TagEnergy, have enhanced the efficiency and reliability of renewable energy integration into the national grid.

Economic and Environmental Benefits

The adoption of renewable energy sources not only reduces greenhouse gas emissions but also fosters economic growth and energy independence. By harnessing abundant solar and wind resources, France strengthens its energy security and reduces reliance on fossil fuels, contributing to long-term sustainability goals and reflecting a continental shift as renewable power has surpassed fossil fuels for the first time.

Challenges and Future Outlook

While France celebrates the success of negative electricity prices, challenges remain in scaling renewable energy deployment and optimizing grid management. Balancing supply and demand, integrating intermittent renewables, and investing in energy storage technologies are critical for ensuring grid stability and maximizing the benefits of renewable energy, particularly in addressing clean energy's curtailment challenge across modern grids.

Global Implications

France's experience with negative electricity prices serves as a model for other countries striving to transition to clean energy economies. It underscores the potential of renewables to drive economic prosperity, mitigate climate change impacts, and reshape global energy markets towards sustainability, as seen in Germany where solar-plus-storage is now cheaper than conventional power in several contexts.

Conclusion

France's achievement of negative electricity prices driven by renewable energy surplus marks a significant milestone in the global energy transition. By leveraging solar and wind power effectively, France demonstrates the feasibility and economic viability of renewable energy integration at scale. As countries worldwide seek to reduce carbon emissions and enhance energy resilience, France's example provides valuable insights and inspiration for advancing renewable energy agendas and accelerating towards a sustainable energy future.

 

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