Thirst for green energy has its cost

By Toronto Star


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Forget about feeling smug just because you drive an electric hybrid car or fill the tank of the family sedan with ethanol.

Scientists say such energy-saving efforts could contribute to an even bigger environmental problem by adding pressure on North American's dwindling water resources.

In turn, this could lead to renewed U.S. demand for Canadian water, one expert warned here at the annual meeting of the American Association for the Advancement of Science.

This new dark side of going green emerged at a symposium that portrayed energy and water as conjoined twins.

University of Texas professor Michael Webber, an environmental policy specialist, said so-called green fuels for vehicles all require much more water to produce than ordinary gasoline. Conventional oil refineries use comparatively modest amounts of water, largely for cooling.

Webber said the water required for an alternate fuel vehicle to travel a certain distance can be up to 100 times that required for a gas-powered vehicle.

This extra water use stems from the irrigation of crops like corn that are turned into ethanol, or in the production of the electricity for recharging hybrids.

Webber ranked the water requirements for existing hybrid electric and ethanol-fuelled vehicles, as well as hydrogen-powered vehicles of the future, and said they range from 10 to 130 times worse than today's gasoline-powered vehicles.

"I don't know of anybody who shops for fuels based on their water intensity," he said. "But as river levels continue to drop and aquifers dry up, this link between water and energy is going to become an issue at a higher government level."

Webber also pointed out that the water requirements of alternate fuels would be reduced if the electricity involved came from wind or solar power.

Further water savings could be had if ethanol was produced using non-irrigated materials such as lumber mill waste.

And he had a warning for Canada.

"Right now Canadians don't care about this because you're the most water-rich nation in the world.

"But you might care if the U.S. starts coming after your water because we're in trouble from the energy-water connection," he said.

Another researcher, Peter Gleick, said the energy-water link pervades modern society.

"We use a lot of water to produce energy and we use a lot of energy to move and treat water," said Gleick, who directs an institute in Oakland, Calif., that studies development, environment and security.

Yet government policies seldom treat energy and water in an integrated way, leading to serious problems, he said, citing nuclear power plants losing power capacity after rising river temperatures affected water used as a coolant.

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Effort to make Philippines among best power grids in Asia

NGCP-SGCC Partnership drives transmission grid modernization in the Philippines, boosting high-voltage capacity, reliability, and resilience, while developing engineering talent via the Trailblazers Program to meet Southeast Asia best practices and utility standards.

 

Key Points

A partnership to modernize the Philippines' grid, boost high-voltage capacity, and upskill NGCP engineers.

✅ Modernizes transmission assets and grid reliability nationwide

✅ Trailblazers Program develops NGCP's engineering leadership

✅ SGCC knowledge transfer on UHV, high-voltage, and best practices

 

The National Grid Corp. of the Philippines (NGCP) is building on its partnership with State Grid Corp of China (SGCC) to expand and modernize transmission facilities, as well as enhance the capabilities of its personnel to advance the country's grid network, aligning with smart grid transformation in Egypt seen in other markets. NGCP Internal Affairs Department head Edwin Natividad said the grid operator is implementing various development programs with SGCC to make the country's power grid among the best power utilities in Asia.

"We have to look at policies aligned with best global practices, including smart grid solutions increasingly adopted worldwide, that we can choose in adopting in the Philippines too," he said. One of NGCP's flagship development program is the Trailblazers Program, the company's strategy to further develop engineers "who will not just be technical experts, but also be the change agents and movers in the NGCP organization as well as in the Philippines' power sector," Natividad said.

"Having the support of the largest utility in the world gives us comfort that this program is designed and implemented by the best in the power industry," he said. Under the program, high performing personnel participating will be prepared for bigger roles later on in their careers at NGCP.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1 "The advantage of such a pool is that it provides flexibility and, eventually, organizational self-sufficiency around the current and future talent needs of NGCP," Natividad said. Now on its third edition, the Trailblazers Program has already sent 76 personnel since it started in November 2016. Natividad said more than 16 of those who previously attended similar programs have already assumed higher roles in NGCP.

Apart from technical skills development, NGCP's partnership with SGCC also provides technical development to improve on the physical transmission assets. "If you will compare the facilities being handled by SGCC with other countries, in terms of handling high voltage capability, SGCC is way ahead.

The higher the voltage it's going to be more difficult to handle," Natividad said, adding they can handle more power to distribute to power distributors. As an example, SGCC's transmission facilities can handle high voltage to as much as 1,000 kiloVolts (kV), whereas the Philippines only has one high voltage facility, the interconnection between Luzon and Visayas, which can handle 500 kV, echoing proposals for macrogrids in Canada to improve reliability.

Natividad said NGCP was the first and biggest investment of SGCC outside of China before it made investments in other parts of the world, even as cybersecurity concerns in Britain have influenced supplier choices. A consortium among businessmen Henry Sy Jr., Robert Coyuito Jr., and SGCC as technical partner, NGCP holds a 25-year concession contract to operate and maintain the country's transmission grid.

Earlier, Sy, NGCP president and CEO, said the company is targeting to become the best utility firm in Southeast Asia. Since it took over the operations and maintenance of the country's power transmission network in 2009, the grid operator has introduced major physical and technological upgrades to ageing state-owned lines and facilities, while in Great Britain an independent operator model is being advanced to reshape system operations.

 

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Hydro-Quebec begins talks for $185-billion strategy to wean the province off fossil fuels

Hydro-Québec $185-Billion Clean Energy Plan accelerates hydroelectric upgrades, wind power expansion, solar and battery storage, pumped storage, and 5,000 km transmission lines to decarbonize Quebec, boost grid resilience, and attract bond financing and Indigenous partnerships.

 

Key Points

Plan to grow renewables, harden the grid, and fund Quebec's decarbonization with major investments.

✅ $110B new generation, $50B grid resilience by 2035

✅ Triple wind, add solar, batteries, and pumped storage

✅ 5,000 km lines, bond financing, Indigenous partnerships

 

Hydro-Québec is in the preliminary stages of dialogue with various financiers and potential collaborators to strategize the implementation of a $185-billion initiative aimed at transitioning Quebec away from fossil fuel dependency.

As the leading hydroelectric power producer in Canada, Hydro-Québec is set to allocate up to $110 billion by 2035 towards the development of new clean energy facilities, building on its hydropower capacity expansion in recent years, with an additional $50 billion dedicated to enhancing the resilience of its power grid, as revealed in a strategy announced last November. The remainder of the projected expenditure will cover operational costs.

This ambitious initiative has garnered significant interest from the financial sector, with the province's recent electricity for industrial projects also drawing attention, as noted by CEO Michael Sabia during a conference call with journalists where the utility's annual financial outcomes were discussed. Sabia reported receiving various proposals to fund the initiative, though specific partners were not disclosed. He expressed confidence in securing the necessary capital for the project's success.

Sabia highlighted three immediate strategies to increase power output: identifying new sites for hydroelectric projects while upgrading turbines at existing facilities, such as the Carillon Generating Station upgrade now underway for enhanced efficiency, expanding wind energy production threefold, and promoting energy conservation among consumers to optimize current power usage.

Additionally, Hydro-Québec aims to augment its solar and battery energy production and is planning to establish a pumped-storage hydroelectric plant to support peak demand periods. The utility also intends to construct 5,000 kilometers of new transmission lines, address Quebec-to-U.S. transmission constraints where feasible, and is set to double its capital expenditure to $16 billion annually, a significant increase from the investment levels during the James Bay hydropower project construction in the 1970s and 1980s.

To fund part of this expansive plan, Hydro-Québec will continue to access the bond market, having issued $3.7 billion in notes to investors last year despite facing several operational hurdles due to adverse weather conditions.

For the year 2023, Hydro-Québec reported a net income of $3.3 billion, marking a 28% decrease from the previous year's record of $4.56 billion. Factors such as insufficient snow cover, reduced spring runoff, and higher temperatures resulted in lower water levels in reservoirs, leading to a reduction in power exports and a $547-million decrease in external market sales compared to the previous year.

The utility experienced its lowest export volume in a decade but managed to leverage hedging strategies to secure 10.3 cents per kWh for exported power to markets including New Brunswick via recent NB Power agreements that expand interprovincial deliveries, nearly twice the average market rate, through forward contracts that cover up to half of its export volume for about a year in advance.

The success of Sabia's plan will partly depend on the cooperation of First Nations communities, as the proposed infrastructure developments are likely to traverse their ancestral territories. Relationships with some communities are currently tense, exemplified by the Innu of Labrador's $4-billion lawsuit against Hydro-Québec for damages related to land flooding for reservoir construction, and broader regional tensions in Newfoundland and Labrador that persist in the power sector.

Sabia has committed to involving First Nations and Inuit communities as partners in clean energy ventures, offering them ongoing financial benefits rather than one-off settlements, a principle he refers to as "economic reconciliation."

Recently, the Quebec government reached an agreement with the Innu of Pessamit, pledging $45 million to support local community development. This agreement outlines solutions for managing a nearby hydropower reservoir, such as the La Romaine complex in the region, and includes commitments for wind energy development.

Sabia is optimistic about building stronger, more positive relationships with various Indigenous communities, anticipating significant progress in the coming months and viewing this year as a potential milestone in transforming these relationships for the better.

 

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Buyer's Remorse: Questions about grid modernization affordability

Grid Modernization drives utilities to integrate DER, AMI, and battery storage while balancing reliability, safety, and affordability; regulators pursue cost-benefit analyses, new rate design, and policy actions to guide investment and protect customer-owned resources.

 

Key Points

Upgrading the grid to manage DER with digital tools, while maintaining reliability, safety, and customer affordability.

✅ Cost-benefit analyses guide prudent grid investments

✅ AMI and storage deployments enable DER visibility and control

✅ Rate design reforms support customer-owned resources

 

Utilities’ pursuit of a modern grid, including the digital grid concept, to maintain the reliability and safety pillars of electricity delivery has raised a lot of questions about the third pillar — affordability.

Utilities are seeing rising penetrations of emerging technologies, highlighted in recent grid edge trends reports, like distributed solar, behind-the-meter battery storage, and electric vehicles. These new distributed energy resources (DER) do not eliminate utilities' need to keep distribution systems safe and reliable.

But the need for modern tools to manage DER imposes costs on utilities, prompting calls to invest in smarter infrastructure even as some regulators, lawmakers and policymakers are concerned those costs could drive up electricity rates.

The result is an increasing number of legislative and regulatory grid modernization actions aimed at identifying what is necessary to serve the coming power sector transformation and address climate change risks across the grid.

 

The rise of grid modernization

Grid modernization, which is supported by both conservatives and distributed energy resources advocates, got a lot of attention last year. According to the 2017 review of grid modernization policy by the North Carolina Clean Energy Technology Center (NCCETC), 288 grid modernization policy actions were proposed, pending or enacted in 39 states.

These numbers from NCCETC's first annual review of policy activity set a benchmark against which future years' activity can be measured.

The most common type of state actions, by far, were those that focused on the deployment of advanced metering infrastructure (AMI) and battery energy storage. Those are two of the 2017 trends identified in NCCETC’s 50 States of Grid Modernization report. But deployment of those technologies, while foundational to an updated grid, only begins to prepare distribution systems for the coming power sector transformation.

Bigger advances, including the newest energy system management tools, are being held back by 2017’s other policy actions requiring more deliberation and fact-finding, even as grid vulnerability report cards underscore the risks that modernization seeks to mitigate.

Utilities’ proposals to more fully prepare their grids to deliver 21st century technologies are being met with questions about completeness and cost.

Utilities are being asked to address these questions in comprehensive, public utility commission-led cost-benefit analyses and studies. This is also one of NCCETC’s top 2017 policy action trends for grid modernization. The outcome to date appears to be an increased, but still incomplete, understanding of what is needed to build a 21st century grid.

Among the top objectives of those driving the policy actions are resolving questions about private sector participation in grid modernizaton buildouts and developing new rate designs to protect and support customer-owned distributed energy resources. Actions on those topics are also on NCCETC’s list of 2017 policy trends.

Altogether, the trend list is dominated by actions that do not lead to completion of grid modernization but to more work on it.

 

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Philippines Ranks Highest in Coal-Generated Power Dependency

Philippines coal dependency underscores energy transition challenges, climate change risks, and air pollution, as rising electricity demand, fossil fuels, and emissions shape policy shifts toward renewable energy, grid reliability, and sustainable development.

 

Key Points

It is rising reliance on coal for power, driven by demand and cost, with climate, air pollution, and policy risks.

✅ Driven by rising demand, affordability, and grid reliability.

✅ Worsens emissions, air pollution, and public health burdens.

✅ Policy shifts aim at renewable energy, efficiency, and standards.

 

In a striking development, the Philippines has surpassed China and Indonesia to become the nation most dependent on coal-generated power in recent years. This shift highlights significant implications for the country's energy strategy, environmental policies, and its commitment to sustainable development, and comes as global power demand continues to surge worldwide.

Rising Dependency on Coal

The Philippines' increasing reliance on coal-generated power is driven by several factors, including rapid economic growth, rising electricity demand, and regional uncertainties in China's electricity sector that influence fuel markets, and the perceived affordability and reliability of coal as an energy source. Coal has historically been a key component of the Philippines' energy mix, providing a stable supply of electricity to support industrialization and urbanization efforts.

Environmental and Health Impacts

Despite its economic benefits, coal-generated power comes with significant environmental and health costs, especially as soaring electricity and coal use amplifies exposure to pollution. Coal combustion releases greenhouse gases such as carbon dioxide, contributing to global warming and climate change. Additionally, coal-fired power plants emit pollutants such as sulfur dioxide, nitrogen oxides, and particulate matter, which pose health risks to nearby communities and degrade air quality.

Policy and Regulatory Landscape

The Philippines' energy policies have evolved to address the challenges posed by coal dependency while promoting sustainable alternatives. The government has introduced initiatives to encourage renewable energy development, improve energy efficiency, and, alongside stricter emissions standards on coal-fired power plants, is evaluating nuclear power for inclusion in the energy mix to meet future demand. However, balancing economic growth with environmental protection remains a complex and ongoing challenge.

International and Domestic Pressures

Internationally, there is growing pressure on countries to reduce reliance on fossil fuels and transition towards cleaner energy sources as part of global climate commitments under the Paris Agreement, illustrated by the United Kingdom's plan to end coal power within its grid. The Philippines' status as the most coal-dependent nation underscores the urgency for policymakers to accelerate the shift towards renewable energy and reduce carbon emissions to mitigate climate impacts.

Challenges and Opportunities

Transitioning away from coal-generated power presents both challenges and opportunities for the Philippines. Challenges include overcoming entrenched interests in the coal industry, addressing energy security concerns, and navigating the economic implications of energy transition, particularly as clean energy investment in developing nations has recently declined, adding financial headwinds. However, embracing renewable energy offers opportunities to diversify the energy mix, reduce dependence on imported fuels, create green jobs, and improve energy access in remote areas.

Community and Stakeholder Engagement

Engaging communities and stakeholders is crucial in shaping the Philippines' energy transition strategy. Local residents, environmental advocates, industry leaders, and policymakers play essential roles in fostering dialogue, raising awareness about the benefits of renewable energy, and advocating for policies that promote sustainable development and protect public health.

Future Outlook

The Philippines' path towards reducing coal dependency and advancing renewable energy is critical to achieving long-term sustainability and resilience against climate change impacts. By investing in renewable energy infrastructure, enhancing energy efficiency measures, and fostering innovation in clean technologies, as renewables poised to eclipse coal indicate broader momentum, the country can mitigate environmental risks, improve energy security, and contribute to global efforts to combat climate change.

Conclusion

As the Philippines surpasses China and Indonesia in coal-generated power dependency, the nation faces pivotal decisions regarding its energy future. Balancing economic growth with environmental stewardship requires strategic investments in renewable energy, robust policy frameworks, and proactive engagement with stakeholders to achieve a sustainable and resilient energy system. By prioritizing clean energy solutions, the Philippines can pave the way towards a greener and more sustainable future for generations to come.

 

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Cancelling Ontario's wind project could cost over $100M, company warns

White Pines Project cancellation highlights Ontario's wind farm contract dispute in Prince Edward County, involving IESO approvals, Progressive Conservatives' legislation, potential court action, and costs to ratepayers amid green energy policy shifts.

 

Key Points

The termination effort for Ontario's White Pines wind farm contract, triggering legal, legislative, and cost disputes.

✅ Contract with IESO dates to 2009; final approval during election

✅ PCs seek legislation insulating taxpayers from litigation

✅ Cancellation could exceed $100M; cost impact on ratepayers

 

Cancelling an eastern Ontario green energy project that has been under development for nearly a decade could cost more than $100 million, the president of the company said Wednesday, warning that the dispute could be headed to the courts.

Ontario's governing Progressive Conservatives said this week that one of their first priorities during the legislature's summer sitting would be to cancel the contract for the White Pines Project in Prince Edward County.

Ian MacRae, president of WPD Canada, the company behind the project, said he was stunned by the news given that the project is weeks away from completion.

"What our lawyers are telling us is we have a completely valid contract that we've had since 2009 with the (Independent Electricity System Operator). ... There's no good reason for the government to breach that contract," he said.

The government has also not reached out to discuss the cancellation, he said. Meanwhile, construction on the site is in full swing, he said.

"Over the last couple weeks we've had an average of 100 people on site every day," he said. "The footprint of the project is 100 per cent in. So, all the access roads, the concrete for the base foundations, much of the electrical infrastructure. The sub-station is nearing completion."

The project includes nine wind turbines meant to produce enough electricity to power just over 3,000 homes annually, even as Ontario looks to build on an electricity deal with Quebec for additional supply. All of the turbines are expected to be installed over the next three weeks, with testing scheduled for the following month.

MacRae couldn't say for certain who would have to pay for the cancellation, electricity ratepayers or taxpayers.

"Somehow that money would come from IESO and it would be my assumption that would end up somehow on the ratepayers, despite legislation to lower electricity rates now in place," he said. "We just need to see what the government has in mind and who will foot the bill."

Progressive Conservative house leader Todd Smith, who represents the riding where the project is being built, said the legislation to cancel the project will also insulate taxpayers from domestic litigation over the dismantling of green energy projects.

"This is something that the people of Prince Edward County have been fighting ... for seven years," he said. "This shouldn't have come as a surprise to anybody that this was at the top of the agenda for the incoming government, which has also eyed energy independence in recent decisions."

Smith questioned why Ontario's Independent Electricity System Operator gave the final approval for the project during the spring election campaign.

"There's a lot of questions about how this ever got greenlighted in the first place," he said. "This project was granted its notice to proceed two days into the election campaign ... when (the IESO) should have been in the caretaker mode."

Terry Young, the IESO's vice president of policy, engagement and innovation, said the agency could not comment because of the pending introduction of legislation to cancel the deal, following a recent auditor-regulator dispute that drew attention to oversight.

NDP Leader Andrea Horwath said the new Tory government is behaving like the previous Liberal government by cancelling energy projects and tearing up contracts amid ongoing debates over Ontario's hydro mess and affordability. She likened the Tory plan to the Liberal gas plant scandal that saw the government relocate two plants at a substantial cost to taxpayers.

 

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Report call for major changes to operation of Nova Scotia's power grid

Nova Scotia Energy Modernization Act proposes an independent system operator, focused energy regulation, coal phase-out by 2030, renewable integration, transmission upgrades, and competitive market access to boost consumer trust and grid reliability across the province.

 

Key Points

Legislation to create an independent system operator and energy regulator, enabling coal phase-out and renewable integration.

✅ Transfers grid control from Nova Scotia Power to an ISO

✅ Establishes a focused energy regulator for multi-sector oversight

✅ Accelerates coal retirement, renewables build-out, and grid upgrades

 

Nova Scotia is poised for a significant overhaul in how its electricity grid operates, with the electricity market headed for a reshuffle as the province vows changes, following a government announcement that will strip the current electric utility of its grid access control. This move is part of a broader initiative to help the province achieve its ambitious energy objectives, including the cessation of coal usage by 2030.

The announcement came from Tory Rushton, the Minister of Natural Resources, who highlighted the recommendations from the Clean Electricity Task Force's report to make the electricity system more accountable to Nova Scotians according to the authors. The report suggests the creation of two distinct entities: an autonomous system operator for energy system planning and an independent body for energy regulation.

Minister Rushton expressed the government's agreement with these recommendations, while the premier had earlier urged regulators to reject a 14% rate hike to protect customers, stating plans to introduce a new Energy Modernization Act in the next legislative session.

Under the proposed changes, Nova Scotia Power, a privately-owned entity, will retain its operational role but will relinquish control over the electricity grid. This responsibility will shift to an independent system operator, aiming to foster competitive practices essential for phasing out coal—currently a major source of the province’s electricity.

Additionally, the existing Utility and Review Board, which recently approved a 14% rate increase despite political opposition, will undergo rebranding to become the Nova Scotia Regulatory and Appeals Board, reflecting a broader mandate beyond energy. Its electricity-related duties will be transferred to the newly proposed Nova Scotia Energy Board, which will oversee various energy sectors including electricity, natural gas, and retail gasoline.

The task force, led by Alison Scott, a former deputy energy minister, and John MacIsaac, an ex-executive of Nalcor Energy, was established by the province in April 2023 to determine the needs of the electrical system in meeting Nova Scotia's environmental goals.

Minister Rushton praised the report for providing a clear direction towards achieving the province's 2030 environmental targets and beyond. He estimated that establishing the recommended bodies would take 18 months to two years, and noted the government cannot order the utility to cut rates under current law, promising job security for current employees of Nova Scotia Power and the Utility and Review Board throughout the transition.

The report advocates for the new system operator to improve consumer trust by distancing electricity system decisions from Nova Scotia Power's corporate interests. It also critiques the current breadth of the Utility and Review Board's mandate as overly extensive for addressing the energy transition's long-term requirements.

Nova Scotia Power's president, Peter Gregg, welcomed the recommendations, emphasizing their role in the province's shift towards renewable energy, as neighboring jurisdictions like P.E.I. explore community generation to build resilience, he highlighted the importance of a focused energy regulator and a dedicated system operator in advancing essential projects for reliable customer service.

The task force's 12 recommendations also include the requirement for Nova Scotia Power to submit an annual asset management plan for regulatory approval and to produce reports on vegetation and wood pole management. It suggests the government assess Ontario's hydro policies for potential adaptation in Nova Scotia and calls for upgrades to the transmission grid infrastructure, with projected costs detailed by Stantec.

Alison Scott remarked on the comparative expense of coal power against renewable sources like wind, suggesting that investments in the grid to support renewables would be economically beneficial in the long run.

 

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