Cheap uranium equity valuations could lead to acquisition

By Financial Post


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One of the same reasons Cameco Corp. received an upgrade may be behind future acquisitions for the worldÂ’s largest publicly-traded uranium company.

RBC Capital Markets analyst H. Fraser Phillips upgraded Cameco to “outperform” from “sector perform” due to the recent correction in its share price and the stabilization of spot uranium prices. He also pointed to the expressions from the company’s management during their year-end conference call that lower uranium equity valuations were approaching good value.

“Diversification of production sources through an acquisition would be a positive, though shareholder dilution is a risk,” Mr. Phillips told clients in a note.

As for prices, his analysis shows that the uranium market remains very tight. RBC expects prices will rebound in 2008.

Meanwhile, Cameco appears to be recovering from the contaminated soil-related shutdown of its Port Hope uranium conversion plant, flooding at the giant Cigar Lake deposit, and dealings with the Canadian Nuclear Safety Commission, Mr. Phillips said.

But uncertainty remains, particularly with the expected production date of 2011 at Cigar Lake and negotiations with Russia regarding highly enriched uranium, he added.

While the analyst believes both could lead to volatility, he thinks the downside risk is already reflected in CamecoÂ’s share price. He has a $48 price target on the stock, which represents upside of 36%.

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China's Path to Carbon Neutrality

China Unified Power Market enables carbon neutrality through renewable integration, cross-provincial electricity trading, smart grid upgrades, energy storage, and market reform, reducing coal dependence and improving grid flexibility, efficiency, and emissions mitigation.

 

Key Points

A national power market integrating renewables and grids to cut coal use and accelerate carbon neutrality.

✅ Harmonizes pricing and cross-provincial electricity trading.

✅ Boosts renewable integration with storage and smart grids.

✅ Improves dispatch efficiency, reliability, and emissions cuts.

 

China's ambitious goal to achieve carbon neutrality has become a focal point in global climate discussions around the global energy transition worldwide, with experts emphasizing the pivotal role of a unified power market in realizing this objective. This article explores China's commitment to carbon neutrality, the challenges it faces, and how a unified power market could facilitate the transition to a low-carbon economy.

China's Commitment to Carbon Neutrality

China, as the world's largest emitter of greenhouse gases, has committed to achieving carbon neutrality by 2060. This ambitious goal signals a significant shift towards reducing carbon emissions and mitigating climate change impacts. Achieving carbon neutrality requires transitioning away from fossil fuels, including investing in carbon-free electricity pathways and enhancing energy efficiency across sectors such as industry, transportation, and residential energy consumption.

Challenges in China's Energy Landscape

China's energy landscape is characterized by its heavy reliance on coal, which accounts for a substantial portion of electricity generation and contributes significantly to carbon emissions. Transitioning to renewable energy sources such as wind, solar, hydroelectric, and nuclear power is essential to reducing carbon emissions and achieving carbon neutrality. However, integrating these renewable sources into the existing energy grid poses technical, regulatory, and financial challenges that often hinge on adequate clean electricity investment levels and policy coordination.

Role of a Unified Power Market

A unified power market in China could play a crucial role in facilitating the transition to a low-carbon economy. By integrating regional power grids and promoting cross-provincial electricity trading, a unified market can optimize the use of renewable energy resources, incorporate lessons from decarbonizing electricity grids initiatives to enhance grid stability, and reduce reliance on coal-fired power plants. This market mechanism encourages competition among energy producers, incentivizes investment in renewable energy projects, and improves overall efficiency in electricity generation and distribution.

Benefits of a Unified Power Market

Implementing a unified power market in China offers several benefits in advancing its carbon neutrality goals. It promotes renewable energy development by providing a larger market for electricity generated from wind, solar, and other clean sources that underpin the race to net-zero in many economies. It also enhances grid flexibility, enabling better management of fluctuations in renewable energy supply and demand. Moreover, a unified market encourages innovation in energy storage technologies and smart grid infrastructure, essential components for integrating variable renewable energy sources.

Policy and Regulatory Considerations

Achieving a unified power market in China requires coordinated policy efforts and regulatory reforms. This includes harmonizing electricity pricing mechanisms, streamlining administrative procedures for electricity trading across provinces, and ensuring fair competition among energy producers. Clear and consistent policies that support renewable energy deployment and grid modernization, and align with insights on climate policy and grid implications from other jurisdictions, are essential to attracting investment and fostering a sustainable energy transition.

International Collaboration and Leadership

China's commitment to carbon neutrality presents opportunities for international collaboration and leadership in climate action. Engaging with global partners, sharing best practices, and promoting technology transfer, as seen with Canada's 2050 net-zero target commitments, can accelerate progress towards a low-carbon future. By demonstrating leadership in clean energy innovation and climate resilience, China can contribute to global efforts to mitigate climate change and achieve sustainable development goals.

Conclusion

China's pursuit of carbon neutrality by 2060 represents a monumental endeavor that requires transformative changes in its energy sector. A unified power market holds promise as a critical enabler in this transition, facilitating the integration of renewable energy sources, enhancing grid flexibility, and optimizing energy efficiency. By prioritizing policy coherence, regulatory reform, and international cooperation, China can pave the way towards a sustainable energy future while addressing global climate challenges.

 

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Electric vehicle sales triple in Australia despite lack of government support

Australian Electric Vehicle Sales tripled in 2019 amid expanding charging infrastructure and more models, but market share remains low, constrained by limited government policy, weak incentives, and absent emissions standards despite growing ultra-fast chargers.

 

Key Points

EV units sold in Australia; in 2019 they tripled to 6,718, but market share was just 0.6%.

✅ Sales rose from 2,216 (2018) to 6,718 (2019); ~80% were BEVs.

✅ Public charging sites reached 2,307; fast chargers up 40% year-on-year.

✅ Policy gaps and absent standards limit model supply and EV uptake.

 

Sales of electric vehicles in Australia tripled in 2019 despite a lack of government support, according to the industry’s peak body.

The country’s network of EV charging stations was also growing, the Electric Vehicle Council’s annual report found, including a rise in the number of faster charging stations that let drivers recharge a car in about 15 minutes.

But the report, released on Wednesday, found the market share for electric vehicles was still only 0.6% of new vehicle sales – well behind the 2.5% to 5% in other developed countries.

The chief executive of the council, Behyad Jafari, said the rise in sales was down to more models becoming available. There are now 28 electric models on sale, with eight priced below $65,000.

Six more were due to arrive before the end of 2021, including two priced below $50,000, the council’s report said.

“We have repeatedly heard from car companies that they were planning to bring vehicles here, but Australia doesn’t have that policy support.”

The Morrison government promised a national electric vehicle strategy would be finalised by the middle of this year, but the policy has been delayed. The prime minister, Scott Morrison, last year accused Labor of wanting to “end the weekend” and force people out of four-wheel drives after the opposition set a target of 50% of new car sales being electric by 2030.

Jafari cited the Kia e-Niro – an award-winning electric SUV that was being prepared for an Australian launch, but is now reportedly on hold because the manufacturer favoured shipping to countries with emissions standards.

The council’s members include BMW, Nissan, Hyundai and Harley Davidson, as well as energy, technology and charging infrastructure companies.

Sales of electric vehicles – which include plug-in hybrids – went from 2,216 in 2018 to 6,718 in 2019, the report said. Jafari said about 80% of those sales were all-electric vehicles.

There have been 3,226 electric vehicles sold in 2020, the report said, despite an overall drop of 20% in vehicle sales due to the Covid-19 pandemic, while U.S. EV sales have surged into 2024.

Jafari said: “Our report is showing that Australian consumers want these cars.

“There is no controversy that the future of the industry is electric, but at the moment the industry is looking at different markets. We want policies that show [Australia] is going on this journey.”

Government agency data has forecast that half the new cars sold will be electric by 2035, underscoring that the age of electric cars is arriving even if there is no policy to support their uptake.

Manufacturers currently selling electric cars in Australia are Nissan, Hyundai, Mitsubishi, Tesla, Volvo, Porsche, Audi, BMW, Mercedes, Jaguar and Renault, the report said.

Jafari said most G20 countries had emissions standards in place for vehicles sold and incentives in place to support electric vehicles, such as rebates or exemptions from charges. This hadn’t happened in Australia, he said.

The report said: “Globally, carmakers are rolling out more electric vehicle models as the electric car market expands, but so far production cannot keep up with demand. This means that without policy signals, Australians will continue to be denied access to the full global range of electric vehicles.”

On Tuesday, one Australian charging provider, Evie Networks, opened an ultra-fast station at a rest stop at Campbell Town in Tasmania – between Launceston and Hobart.

The company said the station would connect EV owners in the state’s north and south and the two 350kW chargers could recharge a vehicle in 15 minutes, highlighting whether grids have the power to charge EVs at scale. Two more sites were planned for Tasmania, the company said.

A Tasmanian government grant to support electric vehicle charging had helped finance the site. Evie was also supported with a $15m grant from the federal government’s Australian Renewable Energy Agency.

According to the council report, Australia now has 2,307 public charging stations, including 357 fast chargers – a rise of 40% in the past year.

A survey of 2,900 people in New South Wales, the ACT, Victoria and South Australia, carried out by NRMA, RACV and RAA on behalf of the council, found the main barriers to buying an electric vehicle were concerns over access to charging points, higher prices and uncertainty over driving range.

Consumers favoured electric vehicles because of their environmental footprint, lower maintenance costs and vehicle performance.

The report said the average battery range of electric vehicles available in Australia was 400km, but almost 80% of people thought the average was less.

According to the survey, 56% of Australians would consider an electric car when they next bought a vehicle, and in the UK, EV inquiries soared during a fuel supply crisis.

“We are far behind, but it is surmountable,” Jafari said.

The council report also rated state and territories on the policies that supported its industry and found the ACT was leading, followed by NSW and Queensland.

A review of commercial electric vehicle use found public electric bus trials were planned or under way in Queensland, NSW, WA, Victoria and ACT. There are now more than 400,000 electric buses in use around the globe.

 

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A tenth of all electricity is lost in the grid - superconducting cables can help

High-Temperature Superconducting Cables enable lossless, high-voltage, underground transmission for grid modernization, linking renewable energy to cities with liquid nitrogen cooling, boosting efficiency, cutting emissions, reducing land use, and improving resilience against disasters and extreme weather.

 

Key Points

Liquid-nitrogen-cooled power cables delivering electricity with near-zero losses, lower voltage, and greater resilience.

✅ Near-lossless transmission links renewables to cities efficiently

✅ Operate at lower voltage, reducing substation size and cost

✅ Underground, compact, and resilient to extreme weather events

 

For most of us, transmitting power is an invisible part of modern life. You flick the switch and the light goes on.

But the way we transport electricity is vital. For us to quit fossil fuels, we will need a better grid, with macrogrid planning connecting renewable energy in the regions with cities.

Electricity grids are big, complex systems. Building new high-voltage transmission lines often spurs backlash from communities, as seen in Hydro-Que9bec power line opposition over aesthetics and land use, worried about the visual impact of the towers. And our 20th century grid loses around 10% of the power generated as heat.

One solution? Use superconducting cables for key sections of the grid. A single 17-centimeter cable can carry the entire output of several nuclear plants. Cities and regions around the world have done this to cut emissions, increase efficiency, protect key infrastructure against disasters and run powerlines underground. As Australia prepares to modernize its grid, it should follow suit with smarter electricity infrastructure initiatives seen elsewhere. It's a once-in-a-generation opportunity.


What's wrong with our tried-and-true technology?
Plenty.

The main advantage of high voltage transmission lines is they're relatively cheap.

But cheap to build comes with hidden costs later. A survey of 140 countries found the electricity currently wasted in transmission accounts for a staggering half-billion tons of carbon dioxide—each year.

These unnecessary emissions are higher than the exhaust from all the world's trucks, or from all the methane burned off at oil rigs.

Inefficient power transmission also means countries have to build extra power plants to compensate for losses on the grid.

Labor has pledged A$20 billion to make the grid ready for clean energy, and international moves such as US-Canada cross-border approvals show the scale of ambition needed. This includes an extra 10,000 kilometers of transmission lines. But what type of lines? At present, the plans are for the conventional high voltage overhead cables you see dotting the countryside.

System planning by Australia's energy market operator shows many grid-modernizing projects will use last century's technologies, the conventional high voltage overhead cables, even as Europe's HVDC expansion gathers pace across its network. If these plans proceed without considering superconductors, it will be a huge missed opportunity.


How could superconducting cables help?
Superconduction is where electrons can flow without resistance or loss. Built into power cables, it holds out the promise of lossless electricity transfer, over both long and short distances. That's important, given Australia's remarkable wind and solar resources are often located far from energy users in the cities.

High voltage superconducting cables would allow us to deliver power with minimal losses from heat or electrical resistance and with footprints at least 100 times smaller than a conventional copper cable for the same power output.

And they are far more resilient to disasters and extreme weather, as they are located underground.

Even more important, a typical superconducting cable can deliver the same or greater power at a much lower voltage than a conventional transmission cable. That means the space needed for transformers and grid connections falls from the size of a large gym to only a double garage.

Bringing these technologies into our power grid offers social, environmental, commercial and efficiency dividends.

Unfortunately, while superconductors are commonplace in Australia's medical community (where they are routinely used in MRI machines and diagnostic instruments) they have not yet found their home in our power sector.

One reason is that superconductors must be cooled to work. But rapid progress in cryogenics means you no longer have to lower their temperature almost to absolute zero (-273℃). Modern "high temperature" superconductors only need to be cooled to -200℃, which can be done with liquid nitrogen—a cheap, readily available substance.

Overseas, however, they are proving themselves daily. Perhaps the most well-known example to date is in Germany's city of Essen. In 2014, engineers installed a 10 kilovolt (kV) superconducting cable in the dense city center. Even though it was only one kilometer long, it avoided the higher cost of building a third substation in an area where there was very limited space for infrastructure. Essen's cable is unobtrusive in a meter-wide easement and only 70cm below ground.

Superconducting cables can be laid underground with a minimal footprint and cost-effectively. They need vastly less land.

A conventional high voltage overhead cable requires an easement of about 130 meters wide, with pylons up to 80 meters high to allow for safety. By contrast, an underground superconducting cable would take up an easement of six meters wide, and up to 2 meters deep.

This has another benefit: overcoming community skepticism. At present, many locals are concerned about the vulnerability of high voltage overhead cables in bushfire-prone and environmentally sensitive regions, as well as the visual impact of the large towers and lines. Communities and farmers in some regions are vocally against plans for new 85-meter high towers and power lines running through or near their land.

Climate extremes, unprecedented windstorms, excessive rainfall and lightning strikes can disrupt power supply networks, as the Victorian town of Moorabool discovered in 2021.

What about cost? This is hard to pin down, as it depends on the scale, nature and complexity of the task. But consider this—the Essen cable cost around $20m in 2014. Replacing the six 500kV towers destroyed by windstorms near Moorabool in January 2020 cost $26 million.

While superconducting cables will cost more up front, you save by avoiding large easements, requiring fewer substations (as the power is at a lower voltage), and streamlining approvals.


Where would superconductors have most effect?
Queensland. The sunshine state is planning four new high-voltage transmission projects, to be built by the mid-2030s. The goal is to link clean energy production in the north of the state with the population centers of the south, similar to sending Canadian hydropower to New York to meet demand.

Right now, there are major congestion issues between southern and central Queensland, and subsea links like Scotland-England renewable corridors highlight how to move power at scale. Strategically locating superconducting cables here would be the best location, serving to future-proof infrastructure, reduce emissions and avoid power loss.

 

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An NDP government would make hydro public again, end off-peak pricing, Horwath says in Sudbury

Ontario NDP Hydro Plan proposes ending time-of-use pricing, buying back Hydro One, lowering electricity rates, curbing rural delivery fees, and restoring public ownership to ease household bills amid debates with PCs and Liberals over costs.

 

Key Points

A plan to end time-of-use pricing, buy back Hydro One, and cut bills via public ownership and fair delivery fees.

✅ End time-of-use pricing; normal schedules without penalties

✅ Repurchase Hydro One; restore public ownership

✅ Cap rural delivery fees; address oversupply to cut rates

 

Ontario NDP leader Andrea Horwath says her party’s hydro plan will reduce families’ electricity bills, a theme also seen in Manitoba Hydro debates and the NDP is the only choice to get Hydro One back in public hands.

Howarth outlined the plan Saturday morning outside the home of a young family who say they struggle with their electricity bills — in particular over the extra laundry they now have after the birth of their twin boys.

An NDP government would end time-of-use pricing, which charges higher rates during peak times and lower rates after hours, “so that people aren’t punished for cooking dinner at dinner time,” Horwath said at a later campaign stop in Orillia, “so people can live normal lives and still afford their hydro bill.”

#google#

An NDP government would end time-of-use pricing, which gives lower rates for off-peak usage, Howarth said, separate from a recent subsidized hydro plan during COVID-19. The change would mean families wouldn't be "forced to wait until night when the pricing is lower to do laundry," and wouldn't have to rearrange their lives around chores.

The pricing scheme was supposed to lower prices and help smooth out demand for electricity, especially during peak times, but has failed, she said.

In order to lower hydro bills, Horwath said an NDP government would buy back shares of Hydro One sold off under the Wynne government, which she said has led to high prices and exorbitant executive pay among executives. The NDP plan would also make sure rural families do not pay more in delivery fees than city dwellers, and curb the oversupply of energy to bring prices down.

Critics have said the NDP plan is too costly and will take a long time to implement, and investors see too many unknowns about Hydro One.

"The NDP's plan to buy back Hydro One and continue moving forward with a carbon tax will cost taxpayers billions," said Melissa Lantsman, a spokesperson for PC Leader Doug Ford.

"Only Doug Ford has a plan to reduce hydro rates and put money back in people's pockets. We'll reduce your hydro bill by 12 per cent."

Ford has said he will fire Hydro One CEO Mayo Schmidt, and has dubbed him the $6-million-dollar man.

Horwath has said both Ford and Liberal Leader Kathleen Wynne will end up costing Ontarians more in electricity if one of them is elected come June 7. Their "hydro scheme is the wrong plan," she said.

 

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UK families living close to nuclear power stations could get free electricity

UK Nuclear Free Electricity Incentive proposes community benefits near reactors, echoing France, supporting net zero goals, energy security, and streamlined planning, while addressing regulation and judicial review challenges for Sizewell C and future nuclear projects.

 

Key Points

A proposed policy to give free power to residents near reactors, supporting net zero and energy security.

✅ Free power for communities near nuclear plants

✅ Aligns with net zero and energy security goals

✅ Seeks streamlined planning and fewer approvals

 

UK Business Secretary Jacob Rees-Mogg has endorsed a French-style nuclear system that sees people living near nuclear power stations receive free electricity.

Speaking at an event organised by Policy Exchange think tank, Jacob Rees-Mogg said: “Nuclear power is just fundamental. There’s no way we can get to net zero emissions, or even have an intelligent electricity strategy and grid reform in the UK, without nuclear.”

Highlighting that this was his view and not a government policy announcement, he said: “We should copy the French. As I understand, if you live near a nuclear power station in France, you get free electricity and that’s great because then, I’ll have two in my garden if I get free electricity for my children as well.

“I think you want to recognise that things you do that are in the national interest, such as a state-owned generation company, must benefit those who make the sacrifice for the national interest.”

Earlier Mr Rees-Mogg stressed that he would like to see a simpler development consent process for new nuclear power plants to enable the next waves of reactors in the UK, amid concerns that Europe is losing nuclear power just when it really needs energy.

He said: “That’s a lot of regulation around that, as seen when nuclear plant plans collapsed in Wales and impacted the local economy. Did you know that Sizewell C will require 140 individual approvals from arms of the state, each one of which is potentially subject to judicial review.”

 

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Baltic States Disconnect from Russian Power Grid, Join EU System

Baltic States EU Grid Synchronization strengthens energy independence and electricity security, ending IPS/UPS reliance. Backed by interconnectors like LitPol Link, NordBalt, and Estlink, it aligns with NATO interests and safeguards against subsea infrastructure threats.

 

Key Points

A shift by Estonia, Latvia, and Lithuania to join the EU grid, boosting energy security and reducing Russian leverage.

✅ Synchronized with EU grid on Feb 9, 2025 after islanding tests.

✅ New interconnectors: LitPol Link, NordBalt, Estlink upgrades.

✅ Reduces IPS/UPS risks; bolsters NATO and critical infrastructure.

 

In a landmark move towards greater energy independence and European integration, the Baltic nations of Estonia, Latvia, and Lithuania have officially disconnected from Russia's electricity grid, a path also seen in Ukraine's rapid grid link to the European system. This decisive action, completed in February 2025, not only ends decades of reliance on Russian energy but also enhances the region's energy security and aligns with broader geopolitical shifts.

Historical Context and Strategic Shift

Historically, the Baltic states were integrated into the Russian-controlled IPS/UPS power grid, a legacy of their Soviet past. However, in recent years, these nations have sought to extricate themselves from Russian influence, aiming to synchronize their power systems with the European Union (EU) grid. This transition gained urgency following Russia's annexation of Crimea in 2014 and further intensified after the invasion of Ukraine in 2022, as demonstrated by Russian strikes on Ukraine's grid that underscored energy vulnerability.

The Disconnection Process

The process culminated on February 8, 2025, when Estonia, Latvia, and Lithuania severed their electrical ties with Russia. For approximately 24 hours, the Baltic states operated in isolation, conducting rigorous tests to ensure system stability and resilience, echoing winter grid protection efforts seen elsewhere. On February 9, they successfully synchronized with the EU's continental power grid, marking a historic shift towards European energy integration.

Geopolitical and Security Implications

This transition holds significant geopolitical weight. By disconnecting from Russia's power grid, the Baltic states reduce potential leverage that Russia could exert through energy supplies. The move also aligns with NATO's strategic interests, enhancing the security of critical infrastructure in the region, amid concerns about Russian hacking of US utilities that highlight cyber risks.

Economic and Technical Challenges

The shift was not without challenges. The Baltic states had to invest heavily in infrastructure to ensure compatibility with the EU grid and navigate regional market pressures such as a Nordic grid blockade affecting transmission capacity. This included constructing new interconnectors and upgrading existing facilities. For instance, the LitPol Link between Lithuania and Poland, the NordBalt cable connecting Lithuania and Sweden, and the Estlink between Estonia and Finland were crucial in facilitating this transition.

Impact on Kaliningrad

The disconnection has left Russia's Kaliningrad exclave isolated from the Russian power grid, relying solely on imports from Lithuania. While Russia claims to have measures in place to maintain power stability in the region, the long-term implications remain uncertain.

Ongoing Security Concerns

The Baltic Sea region has experienced heightened security concerns, particularly regarding subsea cables and pipelines. Increased incidents of damage to these infrastructures have raised alarms about potential sabotage, including a Finland cable damage investigation into a suspected Russian-linked vessel. Authorities continue to investigate these incidents, emphasizing the need for robust protection of critical energy infrastructure.

The successful disconnection and synchronization represent a significant step in the Baltic states' journey towards full integration with European energy markets. This move is expected to enhance energy security, promote economic growth, and solidify geopolitical ties with the EU and NATO. As the region continues to modernize its energy infrastructure, ongoing vigilance against security threats will be paramount, as recent missile and drone attacks on Kyiv's grid demonstrate.

The Baltic states' decision to disconnect from Russia's power grid and synchronize with the European energy system is a pivotal moment in their post-Soviet transformation. This transition not only signifies a break from historical dependencies but also reinforces their commitment to European integration and collective security. As these nations continue to navigate complex geopolitical landscapes, their strides towards energy independence serve as a testament to their resilience and strategic vision.

 

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