Canada's heavy-water reactors can run on spent fuel from most light-water reactors

By Toronto Star


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The international potential of Candu nuclear reactors may not be obvious to some, but rising uranium prices and heightened concern over nuclear-waste disposal could soon shine a light on this made-in-Canada technology.

Nobody sees this more than Myung Seung Yang of South Korea's atomic energy institute. Yang and his fellow nuclear scientists have spent the past 15 years exploring ways of using Candu reactors to recycle highly radioactive waste, or "spent fuel," from a majority of the world's nuclear reactors.

The approach, Yang wrote in an email message to the Star, "would have many benefits when practically implemented." South Korea is determined to try.

It's little known – at least outside the nuclear power industry – that the heavy-water reactor technology that lies at the heart of Candu's design can, with some technical tinkering, directly use waste fuel from most rival light-water reactors.

Candu developer Atomic Energy of Canada Ltd. calls this the DUPIC process – standing for the Direct Use of Spent Pressurized Water Reactor Fuel in Candus. In 1991, the Canadian government established a joint research program with the Korean Atomic Energy Research Institute to investigate the approach, and both sides have demonstrated that it technically works.

The long-term implications, if DUPIC processing can be done safely and economically, are potentially enormous. There are hundreds of pressurized light-water reactors (PWRs) around the world being used to generate electricity and propel submarines and aircraft carriers.

In the United States alone, two-thirds of the 104 reactors in operation are based on PWR designs, according to the U.S. Energy Information Administration. This has led over the years to the accumulation of 36,000 metric tonnes of spent fuel, which is kept in temporary storage at dozens of locations until a safe permanent-storage site can be found.

With DUPIC processing, that waste can be turned into a reusable fuel. This can significantly reduce a country's dependence on uranium, which many analysts predict will rise above $100 (U.S.) per pound by the end of next year – a tenfold price increase since January 2001.

Perhaps most important, the spent light-water fuel that eventually comes out of a Candu reactor will contain less toxic material than the fuel that goes in, shrinking the amount of radioactive waste that must ultimately go into long-term storage.

"The DUPIC fuel cycle could reduce a country's need for used PWR fuel disposal by 70 per cent while reducing fresh uranium requirements by 30 per cent," according to the World Nuclear Association.

It's for this reason South Korea is keen on the DUPIC process. It currently has 20 operating reactors – 16 PWRs and four Candus. Another eight PWRs are on order or being built. It sees the reuse of spent fuel in Candus as a key strategy for managing radioactive waste.

"The accumulation of spent fuel is an urgent issue that should be resolved," Yang and his colleagues wrote in a briefing document that was presented at the 15th Pacific Nuclear Conference in Australia last October. They called the eventual commercial development of the DUPIC process "an extremely important turning point in the history of nuclear power development."

David Torgerson, chief technology officer and senior vice-president of Atomic Energy of Canada, says the way uranium resources are used by power generators is driven by cost and supply. During the 1990s, for example, uranium prices were so low that it made more economic sense to just use it once and then stick the spent fuels in wet or dry storage.

But some countries don't have their own uranium resources, leaving them dependent on imports from other, potentially hostile jurisdictions. As uranium prices rise, the economics of the once-through fuel cycle also become less appealing when measured against the costs of waste management and disposal.

"As the nuclear renaissance takes off and more reactors are built, it's likely the price of uranium will increase (even more), and people will be looking at ways of getting more value out of that uranium," says Torgerson.

"Any time you can convert a waste into an asset, then you're going in the right direction."

He's quick to point out that the DUPIC process is also "proliferation resistant," meaning there is no chemical separation of the spent uranium's more dangerous components, primarily plutonium, which could be used by extremists or rogue nations to produce nuclear weapons. Only mechanical processing is required to change the shape of the spent fuel rods into shorter Candu rods.

Mechanical reprocessing, while it has some safety and transportation issues, could be cheaper than conventional chemical reprocessing.

"Because this is so much simpler, you have to expect the economics are going to be so much better," says Torgerson, pointing out that the South Koreans studied the economics of the DUPIC fuel cycle in the 1990s and found it could compete against other fuel options. "This is one of the characteristics we're certainly pushing."

For countries such as China, which already have Candu reactors in their fleet, it's an approach that could prove attractive. AECL estimates that waste fuel from three light-water reactors would be enough to fuel one Candu.

Daune Bratt, a political science instructor and expert on Canadian nuclear policy at Calgary's Mount Royal College, says he can envision two revenue streams going to Candu operators that choose to embrace the DUPIC process.

One stream would be the revenue that comes in through the generation and sale of electricity; the other would come from a tipping fee that operators of light-water reactors would pay to unload their spent fuel.

"These (Candu) operators wouldn't be buying the spent fuel, they'd be paid to use the spent fuel for environmental reasons," says Bratt. "If you can minimize the waste, you bring tremendous value."

The economic incentive could even be enough to convince China and other countries with light-water reactors to consider building new Candu reactors as part of a waste-management strategy. The approach, however, is not without its risks.

First, a DUPIC processing facility would need to be built to safely receive and store the spent fuel, mechanically process and reshape it and then send it off to a Candu customer. The fuel, throughout the whole process, remains hot and highly radioactive. Special equipment, procedures and reactor modifications would be required to handle the material, and safety systems would need to be reassessed.

This is the main reason why South Korea's biggest utility, Korean Electric Power Corp., has been somewhat skeptical of the DUPIC option. It fears, most of all, that workers who load the hot fuel into Candu reactors could expose themselves to high levels of radiation.

Another major concern is moving the fuel between different locations. As one former executive at AECL put it: "Transporting spent fuel is a political nightmare." It's risky enough transporting such material between reactor sites within a country, but the possibility of moving material between neighbouring countries adds a new dimension to the problem.

Canada, for example, could theoretically strike a deal that would see light-water fuel waste from the U.S. burned in Candu reactors in Ontario, Quebec and New Brunswick. Such an arrangement would not only eliminate the need for natural uranium fuel in Canada, but would represent a major revenue stream for Canada while limiting the growth of waste stockpiles in North America.

"The bigger deal is the possibility of traffic accidents," says Bratt. "What you need to do is design storage trucks where there isn't spilled waste if it rolls over." But agreeing to such a deal would be political suicide, he concedes. "I can just imagine the protests at the border crossing in Windsor."

In cases where a Candu reactor is built to handle light-water waste, the best approach would be to cluster the reactors in the same location and construct a DUPIC facility on site to limit transportation.

The potential of the DUPIC process raises the question of whether Ontario should get in the game and develop an expertise it can export around the world. Doing so, however, would mean building a PWR light-water reactor in Candu country – yet another political hot potato.

"In Canada, there would be both money to be made and a good environmental case to be put for a two-technology-plus-fuel-recycling model, if someone decided to see this as an opportunity, not a threat," says one nuclear-industry executive who asked not to be named.

France's Areva SA, Westinghouse Electric Co. and General Electric Co. all produce PWR light-water reactors and all want to build one in Ontario, which said last year it will consider foreign designs in pursing any new reactor builds.

Armand Laferrere, president of Areva Canada, has argued that Ontario could diversify its engineering skills base if it built a new nuclear plant based on a foreign design. By coupling such a plant with a DUPIC processing facility, the province could develop a nuclear waste management technology that could be sold globally in an international market dominated by light-water reactors.

Some have even suggested that a company such as Areva, if it purchased all or part of AECL's commercial business, could sell hybrid light- and heavy-water reactor fleets along with DUPIC processing in fast-growing markets such as China.

But Bratt dismisses the possibility. "Ontario is not a big enough market to run two different parallel systems. Shifting systems would be an incredible risk both short and long term," he says.

"The more conservative route – and not necessarily the better route – is to maintain the Candu system. So I would be stunned if Ontario went with another design."

Which leaves all eyes on South Korea, the only jurisdiction with both Candu and PWR reactors that considers the commercial development of DUPIC a fruitful – albeit challenging – endeavour.

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Wyoming wind boost for US utility

Black Hills Energy Corriedale Wind Farm Expansion earns regulatory approval in Wyoming, boosting capacity to over 52MW near Cheyenne with five turbines, supporting Renewable Ready customers and wind power goals under PUC and PSC oversight.

 

Key Points

An approved Wyoming wind project upgrade to over 52MW, adding five turbines to serve Renewable Ready customers.

✅ Adds 12.5MW via five new wind turbines near Cheyenne

✅ Cost increases to $79m; prior estimate $57m

✅ Approved by SD PUC after Wyoming PSC review

 

US company Black Hills Energy has received regulatory approval to increase the size of its Corriedale wind farm in Wyoming, where Wyoming wind exports to California are advancing, to over 52MW from 40MW previously.

The South Dakota Public Utilities Commission approved the additional 12.5MW capacity after the Wyoming Public Service Commission determined the boost was within commission rules, as federal initiatives like DOE wind energy awards continue to support the sector.

Black Hills Energy will install five additional turbines, raising the project cost to $79m from $57m, amid growing heartland wind investment across the region.
Corriedale will be built near Cheyenne and is expected to be placed in service in late 2020.

Similar market momentum is seen in Canada, where a Warren Buffett-linked Alberta wind farm is planned to expand capacity across the region.

Black Hills said that during the initial subscription period for its Renewable Ready program, applications of interest from eligible commercial, industrial and governmental agency customers were received in excess of the program's 40MW, underscoring the view that more energy sources can make stronger projects.

Black Hills Corporations chief executive and president Linden Evans said: “We are pleased with the opportunity to expand our Renewable Ready program, allowing us to meet our customers’ interest in renewable wind energy, which co-op members increasingly support.

“This innovative program expands our clean energy portfolio while meeting our customers’ evolving needs, particularly around cleaner and more sustainable energy, as projects like new energy generation coming online demonstrate.”

 

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Washington County planning officials develop proposed recommendations for solar farms

Washington County solar farm incentives aim to steer projects to industrial sites with tax breaks, underground grid connections, decommissioning bonds, and wildlife corridors, balancing zoning, historic preservation, and Maryland renewable energy mandates.

 

Key Points

Policies steer solar to industrial sites with tax breaks, buried lines, and bonds, aligning with zoning and state goals.

✅ Tax breaks to favor rooftops and parking canopies

✅ Bury new grid lines to shift projects to industrial parks

✅ Require decommissioning bonds and wildlife corridors

 

Incentives for establishing solar farms at industrial spaces instead of on prime farmland are among the ideas the Washington County Planning Commission is recommending for the county to update its policies regarding solar farms.

Potential incentives would include tax breaks on solar equipment and requiring developers to put power-grid connections and line extensions underground, a move tied to grid upgrade cost debates in other regions, Planning Commission members said during a Monday meeting.

The tax break could make it more attractive for a developer to put a solar farm on a roof or over a parking lot, similar to California's building-solar requirement policies that favor rooftop generation, which could cost more than putting it on farmland, said Commission member Dave Kline, who works for FirstEnergy.

Requiring a company to bury new transmission lines could steer them to industrial or business parks where, theoretically, transmission lines are more readily available, Kline said Wednesday in a phone interview.

Chairman Clint Wiley suggested talking to industrial property owners to create a list of industrial sites that make sense for a solar site, which could generate extra income for the property owner.

Commission members also talked about requiring a wildlife corridor. Anne Arundel County requires such a corridor if a solar site is over 15 acres, according to Jill Baker, deputy director of planning and zoning. The solar site is broken into sections so animals such as deer can get through, she said.

However, that means the solar farm would take up more agricultural land, Commission member Jeremiah Weddle said. Weddle, a farmer, has repeatedly voiced concerns about solar farms using prime farmland.

County zoning law already states solar farms are prohibited in Rural Legacy Areas, Priority Preservation Areas, and within Antietam Overlay zones that preserve the Antietam National Battlefield viewshed. They also cannot be built on land with permanent preservation easements, Baker said.

However, a big reason county officials are looking to strengthen county policies for solar generating systems, or solar farms, is a recent court decision that ruled the Maryland Public Service Commission can preempt county zoning law when it comes to large solar farms.

County zoning law defines a solar energy generating system as a solar facility, with multiple solar arrays, tied into the power grid and whose primary purpose is to generate power to distribute and/or sell into the public utility grid rather than consuming that power on site.

The Maryland Court of Appeals ruled in July that the Public Service Commission can preempt local zoning regarding solar farms larger than 2 megawatts. But the ruling also stated local government is a "significant participant in the process" and the state commission must give "due consideration" to local zoning laws.

County officials are looking at recommendations for solar farms, whether they are over 2 megawatts or not.

Solar farms are a popular issue statewide, especially with Maryland solar subscriptions expanding, and were discussed at a recent Maryland Association of Counties meeting for planners, Planning and Zoning Director Stephen Goodrich said.

The thinking is the best way for counties to express their opinions about a solar project is to participate in the state commission's local public hearings, where issues like how solar owners are paid often arise, Goodrich said. Another popular idea is for the county to continue to follow its process, which requires a public hearing for a special exception to establish a solar farm. That will help the county form an opinion, on individual cases, to offer the state commission, he said.

Recommendations discussed by the Planning Commission include:

A break on personal property taxes, which is on equipment, including affordable battery storage that can firm output, to steer developers away from areas where the county doesn't want solar farms. The Board of County Commissioners have been split on tax-break agreements for solar farms, with a majority recently granting a few.

 

Protecting valuable historic sites.

Requiring a decommissioning bond for removing the equipment at the end of the solar farm's life. The bond is protection in case the company goes bankrupt. The county commissioners have been making such a bond a requirement when granting recent tax breaks.

Looking at allowing solar farms in stormwater-management areas.

Other counties, particularly in Western Maryland and on the Eastern Shore, are having issues with solar farms even as research to improve solar and wind advances, because land is cheaper and there are wide-open spaces, Goodrich said.

Many solar projects are being developed or proposed because state lawmakers passed legislation requiring 50% of electricity produced in the state to come from renewable sources by 2030, and a federal plan to expand solar is also shaping expectations. Of that 50%, 14.5% is to come from solar energy.

In Maryland, the average number of homes that can be powered by 1 megawatt of solar energy is about 110, according to the Solar Energy Industries Association's website.

 

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Ontario to Provide New and Expanded Energy-Efficiency Programs

Ontario CDM Programs expand energy efficiency, demand response, and DER incentives via IESO's Save on Energy, cutting peak demand, lowering bills, and supporting electrification, retrofits, and LED lighting to meet Ontario's growing electricity needs.

 

Key Points

Ontario CDM Programs are IESO incentives that cut peak demand and energy use via demand response, retrofits and DERs.

✅ Delivered by IESO's Save on Energy to reduce peak demand

✅ Incentives for demand response, retrofits, LEDs, and DER solutions

✅ Help homes, businesses, and greenhouses lower bills and emissions

 

Ontario will be making available four new and expanded energy-efficiency programs, also known as Conservation and Demand Management (CDM) programs, to ensure a reliable, affordable, and clean electricity system, including ultra-low overnight pricing options to power the province, drive electrification and support strong economic growth. As there will be a need for additional electricity capacity in Ontario beginning in 2025, and continuing through the decade, CDM programs are among the fastest and most cost-effective ways of meeting electricity system needs.

 

Conservation and Demand Management

The Ontario government launched the 2021-2024 CDM Framework on January 1, 2021. The framework focuses on cost-effectively meeting the needs of Ontario’s electricity system, including by focusing on the achievement of provincial peak demand reductions and initiatives such as extended off-peak electricity rates, as well as on targeted approaches to address regional and/or local electricity system needs.

CDM programs are delivered by the Independent Electricity System Operator (IESO), which implemented staff lockdown measures during COVID-19, through the Save on Energy brand. These programs address electricity system needs and help consumers reduce their electricity consumption to lower their bills. CDM programs and incentives are available for homeowners, small businesses, large businesses, and contractors, and First Nations communities.

 

New and Expanded Programs

The four new and expanded CDM programs will include:

A new Residential Demand Response Program for homes with existing central air conditioning and smart thermostats to help deliver peak demand reductions. Households who meet the criteria could voluntarily enroll in this program and, alongside protections like disconnection moratoriums for residential customers, be paid an incentive in return for the IESO being able to reduce their cooling load on a select number of summer afternoons to reduce peak demand. There are an estimated 600,000 smart thermostats installed in Ontario.
Targeted support for greenhouses in Southwest Ontario, including incentives to install LED lighting, non-lighting measures or behind-the-meter distributed energy resources (DER), such as combined solar generation and battery storage.
Enhancements to the Save On Energy Retrofit Program for business, municipalities, institutional and industrial consumers to include custom energy-efficiency projects. Examples of potential projects could include chiller and other HVAC upgrades for a local arena, building automation and air handling systems for a hospital, or building envelope upgrades for a local business.
Enhancements to the Local Initiatives Program to reduce barriers to participation and to add flexibility for incentives for DER solutions.
It is the government’s intention that the new and expanded CDM programs will be available to eligible electricity customers beginning in Spring 2023.

The IESO estimates that the new program offers will deliver total provincial peak electricity demand savings of 285 megawatts (MW) and annual energy savings of 1.1 terawatt hours (TWh) by 2025, reflecting pandemic-era electricity usage shifts across Ontario. Savings will persist beyond 2025 with a total reduction in system costs by approximately $650 million over the lifetime of the measures, and will support economic recovery, as seen with electricity relief during COVID-19 measures, decarbonization and energy cost management for homes and businesses.

These enhancements will have a particular impact in Southwest Ontario, with regional peak demand savings of 225 MW, helping to alleviate electricity system constraints in the region and foster economic development, supported by stable electricity pricing for industrial and commercial companies in Ontario.

The overall savings from this CDM programming will result in an estimated three million tonnes of greenhouse gas emissions reductions over the lifetime of the energy-efficiency measures to help achieve Ontario’s climate targets and protect the environment for the future.

The IESO will be updating the CDM Framework Program Plan, which provides a detailed breakdown of program budgets and energy savings and peak demand targets expected to be achieved.

 

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Energy prices trigger EU inflation, poor worst hit

EU Energy Price Surge is driving up electricity and gas costs, inflation, and cost of living across the EU, prompting tax cuts, price caps, subsidies, and household support measures in France, Italy, Spain, and Germany.

 

Key Points

A surge in EU gas and electricity costs driving inflation and prompting government subsidies, tax cuts, and price caps.

✅ Low-income EU households now spend 50-70 percent more on energy.

✅ Governments deploy tax cuts, price caps, and direct subsidies.

✅ Gas-dependent power markets drive electricity price spikes.

 

Higher energy prices, including for natural gas, are pushing up electricity prices and the cost of living for households across the EU, prompting governments to cut taxes and provide financial support to the tune of several billion euros.

In the United Kingdom, households are bracing for high winter energy bills this season.

A series of reports published by Cambridge Econometrics in October and November 2022 found that households in EU countries are spending much more on energy than in 2020 and that governments are spending billions of euros to help consumers pay bills and cut taxes.

In France, for example, the poorest households now spend roughly one-third more on energy than in 2020. Between August 2020 and August 2022, household energy prices increased by 37 percent, while overall inflation increased by 9.2 percent.

“We estimate that the increase in household energy prices make an average French household €410 worse off in 2022 compared to 2020, mostly due to higher gas prices,” said the report.

In response to rising energy prices, the French government has adopted price caps and support measures forecast to cost over €71 billion, equivalent to 2.9 percent of French GDP, according to the U.K.-based consultancy.

In Italy, fossil fuels alone were responsible for roughly 30 percent of the country’s annual rate of inflation during spring 2022, according to Cambridge Econometrics. Unlike in other European countries, retail electricity prices have outpaced other energy prices in Italy and were 112 percent higher in July 2022 than in August 2020, the report found. Over the same time period, retail petrol prices were up 14 percent, diesel up 22 percent, and natural gas up 42 percent.

We estimate that households in the lowest-income quintile now spend about 50 percent more on energy than in 2020.

“We estimate that before government support, an average Italian household will be spending around €1,400 more on energy and fuel bills this year than in 2020,” the report said. “Low-income households are worse affected by the increasing energy prices: we estimate that households in the lowest-income quintile now spend about 50 percent more on energy than in 2020.”

Electricity production in Italy is dominated by natural gas, which has also led to a spike in wholesale electricity prices. In 2010, natural gas accounted for 50 percent of all electricity production. The share of natural gas fell to 33 percent in 2014, but then rose again, reaching 48 percent in 2021, and 56 percent in the first half of 2022, according to the report, as gas filled the gap of record low hydro power production in 2022.

In Spain, where electricity prices have seen extreme spikes, low-income households are now spending an estimated 70% more on energy than in 2020, according to Cambridge Econometrics.


Low-income squeeze
In Spain, low-income households are now spending an estimated 70% more on energy than in 2020, according to Cambridge Econometrics. It noted that the Spanish government has intervened heavily in energy markets by cutting taxes, introducing cash transfers for households, and capping the price of natural gas for power generators. The latter has led to lower electricity prices than in many other EU countries.

These support measures are forecast to cost the Spanish government over €35 billion, equivalent to nearly 3 percent of Spain’s GDP. Yet consumers will still feel the burden of higher costs of living, and rolling back electricity prices may prove difficult in the near term.

In March, electricity prices alone were responsible for 45 percent of year-on-year inflation in Spain but prices have since fallen as a result of government intervention, Cambridge Econometrics said. Between May and July, fossil fuels prices accounted for 19-25 percent of the overall inflation rate, and electricity prices for 16 percent.


Support measures
Rising inflation is also a real challenge in Germany, Europe’s largest economy, where German power prices have surged this year, adding pressure. Also there, higher gas prices are to blame.

“We estimate that the increase in energy prices currently make an average household €735 worse off in 2022 compared to 2020, mostly due to higher gas prices,” Cambridge Econometrics said, in a report focused on Germany.

The German government has introduced a number of support measures in order to help households, businesses and industry to pay energy bills, amid rising heating and electricity costs for consumers, including price caps that are expected to take effect in March next year. Moreover, households’ energy bills for December this year will be paid by the state. According to the report, these interventions will mitigate the impact of higher prices “to some extent”, but the aid measures are forecast to cost the government nearly 5 percent of GDP.


Fossil-fuel effect
In addition to gas, higher coal prices have also pushed up inflation in some countries, and U.S. electricity prices have reached multi-decade highs as inflation endures.

In Poland, which is heavily dependent on coal for electricity generation, fossil fuels accounted for roughly 40 percent of Poland’s overall year-on-year inflation rate in June 2022, which stood at over 14 percent, the consultancy said.

The price of household coal, which is widely used in heating Polish homes, increased by 157 percent between August 2021 and August 2022.

Higher energy prices in Poland are partly due to Polish and EU sanctions against Russian gas and coal. Other drivers are the weakening of the Polish zloty against the U.S. dollar and the euro, and the uptick in global demand after COVID-19 lockdowns, said Cambridge Econometrics.

Electricity prices have risen at a much slower pace than energy for transport and heating, with an annualized increase of 5.1 percent.

 

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Planning for our electricity future should be led by an independent body

Nova Scotia Integrated Resource Plan evaluates NSPI supply options, UARB oversight, Muskrat Falls imports, coal retirements, wind and biomass expansion, transmission upgrades, storage, and least-cost pathways to decarbonize the grid for ratepayers.

 

Key Points

A 25-year roadmap assessing supply, imports, costs, and emissions to guide least-cost decarbonization for Nova Scotia.

✅ Compares wind, biomass, gas, imports, and storage costs

✅ Addresses coal retirements, emissions caps, and reliability

✅ Recommends transmission upgrades and Muskrat Falls utilization

 

Maintaining a viable electricity network requires good long-term planning and, as a recent grid operations report notes, ongoing operational improvements. The existing stock of generating assets can become obsolete through aging, changes in fuel prices or environmental considerations. Future changes in demand must be anticipated.

Periodically, an integrated resource plan is created to predict how all this will add up during the ensuing 25 years. That process is currently underway and is led by Nova Scotia Power Inc. (NSPI) and will be submitted for approval to the Utilities and Review Board (UARB).

Coal-fired plants are still the largest single source of electricity in Nova Scotia. They need to be replaced with more environmentally friendly sources when they reach the end of their useful lives. Other sources include wind, hydroelectricity from rivers, biomass, as seen in increased biomass use by NS Power, natural gas and imports from other jurisdictions.

Imports are used sparingly today but will be an important source when the electricity from Muskrat Falls comes on stream. That project has big capacity. It can produce all the power needed in Newfoundland and Labrador (NL), where Quebec's power ambitions influence regional flows, plus the amount already committed to Nova Scotia, and still have a lot left over.

Some sources of electricity are more valuable than others. The daily amount of power from wind and solar cannot be controlled. Fuel-based sources and hydro can.

Utilities make their profits by providing the capital necessary to build infrastructure. Most of the money is borrowed but a portion, typically 30 per cent, usually comes from NSPI or a sister company. On that they receive a rate of return of nine per cent. Nova Scotia can borrow money today at less than two per cent.

The largest single investment of that type is the $1.577-billion Maritime Link connecting power from Newfoundland to Nova Scotia. It continues through to the New Brunswick border to facilitate exports to the United States. NSPI’s sister company, NSP Maritime Link Inc. (NSPML), is making nine per cent on $473 million of the cost.

There is little unexploited hydro capacity in Nova Scotia and there will not be any new coal-fired plants. Large-scale solar is not competitive in Nova Scotia’s climate. Nova Scotia’s needs would not accommodate the amount of nuclear capacity needed to be cost-effective, even as New Brunswick explores small reactors in its strategy.

So the candidates for future generating resources are wind, natural gas, biomass (though biomass criticism remains) and imports from other jurisdictions. Tidal is a promising opportunity but is still searching for a commercially viable technology. 

NSPI is commendably transparent about its process (irp.nspower.ca). At this stage there is little indication of the conclusions they are reaching but that will presumably appear in due course.

The mountains of detail might obscure the fact that NSPI is not an unbiased arbiter of choices for the future.

It is reported that they want to prematurely close the Trenton 5 coal plant in 2023-25. It is valued at $88.5 million. If it is closed early, ratepayers will still have to pay off the remaining value even though the plant will be idle. NSPI wants to plan a decommissioning of five of its other seven plants. There is a federal emissions constraint but retiring coal plants earlier than needed will cost ratepayers a lot.

Whenever those plants are closed, there will be a need for new sources of power. NSPI is proposing to plan for new investments in new transmission infrastructure to facilitate imports. Other possibilities would be additional wind farms, consistent with the shift to more wind and solar projects, thermal plants that burn natural gas or biomass, or storage for excess wind power that arrives before it can be used. The investment in storage could be anywhere from $20 million to $200 million.

These will add to the asset burden funded by ratepayers, even as industrial customers seek discounts while still paying for shuttered coal infrastructure.

External sources of new power will not provide NSPI the same opportunity: wind power by independent producers might be less expensive because they are willing to settle for less than nine per cent or because they are more efficient. Buying more power from Muskrat Falls will use transmission infrastructure we are already paying for. If a successful tidal technology is found, it will not be owned by NSPI or a sister company, which are no longer trying to perfect the technology.

This is not to suggest that NSPI would misrepresent the alternatives. But they can tilt the discussion in their favour. How tough will they be negotiating for additional Muskrat Falls power when it hurts their profits? Arguing for premature coal retirement on environmental grounds is fair game but whether the cost should be accepted is a political choice. 

NSPI is in a conflict of interest. We need a different process. An independent body should author the integrated resource plan. They should be fully informed about NSPI’s views.

They should communicate directly with Newfoundland and Labrador for Muskrat power, with independent wind producers, and with tidal power companies. The UARB cannot do any of these things.

The resulting plan should undergo the same UARB review that NSPI’s version would. This enhances the likelihood that Nova Scotians will get the least-cost alternative.

 

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Britain got its cleanest electricity ever during lockdown

UK Clean Electricity Record as wind, solar, and biomass boost renewable energy output, slashing carbon emissions and wholesale power prices during lockdown, while lower demand challenges grid balancing and drives a drop to 153 g/kWh.

 

Key Points

A milestone where wind, solar and biomass lifted renewables, cutting carbon intensity to 153 g/kWh during lockdown.

✅ Carbon intensity averaged 153 g/kWh in Q2 2020.

✅ Renewables output rose 32% via wind, solar, biomass.

✅ Wholesale power prices slumped 42% amid lower demand.

 

U.K electricity has never been cleaner. As wind, solar and biomass plants produced more power than ever in the second quarter, with a new wind generation record set, carbon emissions fell by a third from a year earlier, according to Drax Electric Insight’s quarterly report. Power prices slumped 42 per cent as demand plunged during lockdown. Total renewable energy output jumped 32 per cent in the period, as wind became the main source of electricity at times.

“The past few months have given the country a glimpse into the future for our power system, with higher levels of renewable energy, as wind led the power mix, and lower demand making for a difficult balancing act,”said  Iain Staffell, from Imperial College London and lead author of the report.

The findings of the report point to the impact energy efficiency can have on reducing emissions, as coal's share fell to record lows across the electricity system. Millions of people furloughed or working from home and shuttered shops up and down the country resulted in daily electricity demand dropping about 10% and being about four gigawatts lower than expected in the three months through June.

Average carbon emissions fell to a new low of 153 grams per kWh of electricity consumed over the quarter, as coal-free generation records were extended, even though low-carbon generation stalled in 2019, according to the report.

 

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