Medical isotope power struggle deepens

By Toronto Star


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The nuclear reactor that produces vital medical isotopes for Canada and the world was shut down for 27 days in late November largely because a legacy of mistrust and power struggles between the operator and the regulator turned a few communication gaffes into a political powder keg.

In effect, the Canadian Nuclear Safety Commission, the regulator, suspected that Atomic Energy of Canada Ltd., the operator, had tried to pull a fast one. In turn, AECL thought the CNSC hadn't been listening to it. Yet, when the National Research Universal reactor at Chalk River was turned off in November and December over ostensible safety concerns, it was in fact statistically less vulnerable to a serious nuclear accident than at any point in its 50-year history – thanks to $32 million of safety improvements made since 1993.

When it was restarted in mid-December, it was safer still. And a final safety upgrade put in place earlier this month has further reduced the probable risk of a nuclear accident that could affect the public.

The reactor's updated design now yields a 1 in 500,000 risk of a serious accident, which experts say is the best that can be achieved without tearing down and rebuilding it.

Not that new research reactors necessarily perform more safely than old ones. Australia's $320 million OPAL, opened proudly last May, has been shut down since July because of problems with the nuclear fuel bundles.

Bill Garland, a professor of nuclear engineering at McMaster University, posed the obvious question.

"Why did this suddenly flare up as an issue?" he asked in an email. "Individual personalities aside, there should be enough checks and balances built into the CNSC and AECL to approximate rational behaviour – well at least it should prevent sudden irrational behaviour. Maybe a tipping point was reached."

Relations between the safety commission and Atomic Energy of Canada have been stressed in recent years:

In August 2000, safety commission official Barclay Howden said in a public meeting that losses of senior Atomic Energy staff meant the reactor no longer had "the depth to fix the problems or prevent them." Howden heads the CNSC directorate that directly oversees operations at Chalk River.

In May 2001, a safety commission report complained that Atomic Energy of Canada had deliberately concealed test failures of a vital emergency shutdown system at the trouble-plagued new reactors intended to take over isotope production from NRU. Observers said the incident was the most serious breakdown in federal nuclear safety regulation since the 1950s.

In June 2005, a report from Howden's unit fired a verbal broadside at Atomic Energy. The reactor was being run by people prone to "overconfidence," "complacency" and "deficiencies in management oversight and safety culture." Repeated problems at the reactor "erode confidence in the licensee's qualification to safely manage the work," the report concluded in some of the strongest language ever used by the safety commission.

While acknowledging many of the facts in the commission reports, top Atomic Energy officials like Brian McGee, the company's chief nuclear officer, vigorously defended the competence of NRU staff and insisted the reactor had always operated safely.

Although both deal in nuclear matters, AECL and the CNSC are different beasts. Atomic Energy is a federal Crown corporation, which designs and sells nuclear power reactors in the competitive market and also operates extensive research facilities at the sprawling Chalk River site.

The nuclear safety commission is an arm's-length independent regulatory agency, similar to the federal bodies that oversee air safety or telecommunications. Its chief responsibilities are nuclear power reactors, uranium mines, commercial uses of radioisotopes and research reactors, mostly at universities.

Both AECL and CNSC have large numbers of engineers on the payroll who sometimes switch employment between the two places. The volumes of written exchanges between the two also provide several instances of AECL dismissing CNSC concerns as unfounded, sometimes coming close to implying that the regulators didn't fully understand what they were talking about.

Little wonder the air bristled with electricity whenever officials from the safety commission and Atomic Energy of Canada sat at adjacent tables in front of the CNSC tribunal, the government-appointed body that has the final say on licensing nuclear facilities. Only two of the current seven tribunal members work full-time, fired president Linda Keen and her replacement, career public servant Michael Binder. The five other part-time members include two university professors, an engineer, a former N.B. cabinet minister and a physician.

That electric atmosphere ignited Dec. 6 when CNSC officials explained that the reactor had operated for the past two years without two vital cooling pumps being connected to a third power supply – one specifically intended to keep delivering electricity in the event of an earthquake.

Without those pumps connected, safety commission officials considered Atomic Energy was in violation of the reactor's operating licence.

AECL considered connecting the pumps a safety "enhancement" to be added over the next few years, not something that had to be done by the end of 2005 as a licence condition.

Here lies the crux of the misunderstanding between the two bodies. Each one thought the other had agreed with its interpretation of the licensing requirements as presented in numerous letters, reports, studies and face-to-face meetings. In fact, they held diametrically opposed views that ultimately led to the very public showdown.

At the Dec. 6 meeting, a visibly upset Keen tongue-lashed Atomic Energy of Canada for suggesting that connecting the pumps was optional and not a licence requirement.

"This is absolutely revisionist," Keen admonished McGee, AECL's senior vice-president.

The two cooling pumps triggered such a hubbub because they are the foot soldiers in the reactor's last line of defence against "catastrophic" fuel failure. Despite movie depictions of the China Syndrome, such a failure means simply that the uranium fuel bundle splits open, probably from overheating. Scores of other things would have to go wrong before even the slightest risk of a core meltdown.

Here's how the cooling pumps work: The reactor has eight pumps that force heavy water into a "header" in the vessel bottom that channels the cool water up through scores of rods holding the radioactive fuel and isotopes. The water carries away heat generated by the nuclear fission, heat that would be dangerous if it built up. That hot water is then cooled in heat exchangers and recirculates. All eight pumps run on AC power from the Ontario grid.

As a first line of defence, four of those eight pumps are also equipped with DC motors so they can continue forcing through cooling water even if the grid fails. That DC electricity comes from a backup power system consisting of racks of heavy-duty batteries that are automatically recharged by diesel generators.

But the reactor's original DC power backup wasn't built to withstand fires, floods or earthquakes. That's why a new "qualified" emergency power supply was included in seven planned safety upgrades.

Two of the four heavy-water pumps that can run on both AC and DC, numbers 104 and 105, are even more important, constituting a final line of defence.

They are the only pumps with pipe connections to allow them to draw water from the bottom of the reactor, as well as from the top, which is where the other six pumps draw from. If the water level inside the reactor vessel drops because something goes wrong, only pumps 104 and 105 can keep working and avert overheating that might cause a potential fuel failure.

Those two pumps are also critical to another safety upgrade called the New Emergency Core Cooling, which kicks in if all of the heavy water drains from NRU in what is known as a "loss of coolant accident." The safety commission says only 104 and 105 are hooked up to recirculate any spilled heavy water that is caught in a sump underneath the reactor vessel and also to handle ordinary water that could be injected into the cooling circuit in an emergency.

Considering their importance, it is not surprising AECL agreed as far back as 1993 that pumps 104 and 105 had to be connected to the Emergency Power System once the EPS was ready. Three years later, AECL and the safety commission both agreed that connection should be made through earthquake-resistant motor starters.

The reliability of the pump connection depends on having such motor starters in the electrical circuit.

If the motor in a reactor cooling pump has slowed or stopped because of a power interruption, the motor starter gets it going again.

It is this final link that had not been hooked up in November for the simple reason that AECL had not purchased the motor starters, which cost about $500,000 each and fill a metal cabinet roughly the size of two school lockers.

"It's all seismically qualified because, as you know, the weakest link in the chain is the thing that is going to do you," says the safety commission's Howden.

"Do you" in the case of a nuclear reactor means an accident causing harm to a member of the public who is outside the nuclear facility. For modern reactors, the emerging international standard is a design that ensures the probability of such an accident in any one year is less than one in a million.

This is often – and not as accurately – said to be the risk of one such serious accident in a million years.

But the reactor was designed in a different era with different risk expectations. By 1990, with various upgrades, the accident risk at the reactor was likely in the range of one in 10,000.

That wasn't going to be good enough for the 21st century.

Safety upgrades became necessary in the late 1990s when AECL realized it wouldn't be able to close down the reactor as planned in 2000. The reactor had to be patched up and kept running because the company could not meet the launch date for two replacement isotope-producing reactors called MAPLE. They are still not operating today.

In addition, the federal government had turned a deaf ear to AECL requests for a $600 million replacement nuclear facility to test fuel for Candu reactors to allow researchers to probe the innermost structure of materials – two other roles of the multi-tasking NRU.

So the safety upgrades went ahead. They included projects such as flood protection for pumps, a second independent system to automatically shut down the reactor, the emergency core cooling set-up, barriers to confine liquid spills, a "qualified" emergency water supply and the "qualified" new Emergency Power Supply (EPS).

Together, they were supposed to move NRU to a risk range of about one in 500,000, still below the expectations for new reactors but considered good for such an old facility.

Documents that passed between CNSC and AECL are contradictory and even ambiguous about whether connecting the EPS to the reactor's two most critical cooling pumps was an integral part of the safety upgrades. The top legal firm Heenan Blaikie weighed in on AECL's behalf and the whole licensing controversy could still wind up in the courts.

AECL's interpretation was that the pump connection was a nice-to-have, not a need-to-have. This opinion should be seen against the safety commission's attitude toward this particular safety improvement. After both sides had agreed on the necessity of upgraded power backups for pumps 104 and 105 the CNSC nonetheless allowed AECL almost 10 years to make the changes.

As well, there is no indication the documents that CNSC staff based at Chalk River carried out eyeball inspections at the reactor after December 2005 to verify that those two allegedly crucial pumps had been properly connected.

Not until last November did the commission's on-site officials learn the work had not been done – by spotting a chance reference in an operating manual.

What had begun as probably innocent miscommunication rapidly escalated into an institutional and personal standoff. Parliament finally intervened with a law that bypassed the safety commission and authorized AECL to restart the reactor with only one of the two crucial pumps in full safety operating mode.

On Dec. 14, AECL engineers hooked up pump 105 to the Emergency Power System through the earthquake-resistant motor starter, which had been purchased, installed and tested in fewer than three weeks. On Dec. 16, the reactor restarted with only one cooling pump that had a high chance of continuing to operate after a magnitude-6 earthquake, estimated to shake the Ottawa Valley once in 1,000 years.

Was that a safe thing to do?

"Everyone likes the word safety because it's a word people are more comfortable with, whereas what we are looking at is, with that current (NRU) configuration, what was the risk being posed?" says the CNSC's Howden.

Questions about risk, or safety, cannot be answered definitively because the three key reports on the safety of the reactor are being withheld from public view, with both organizations citing federal security prohibitions. These are the Safety Analysis Report, now in its third version; the Probabilistic Safety Assessment, also done previously; and the recently completed Severe Accident Assessment, carried out for the first time.

Without access to these reports, the public can never independently check the risk statistics cited by either AECL or the safety commission, such as Keen's controversial contention that NRU faced a 1 in 1,000 risk of a nuclear fuel failure at the time it was shut down.

Yet Canadians have seen the very public fallout from the dispute, which this week claimed its second high-profile victim.

Brian McGee, AECL's point man on the NRU, announced he was leaving the company at the end of May. McGee had said that both he and the company had performed poorly in the safety pump matter.

Meanwhile, the country's besieged nuclear regulator and the operator of the world's oldest nuclear research reactor appear to be mending fences in the aftermath of the reactor crisis.

Rather than continue with planned separate post-mortems, they've agreed to bring in outside experts and co-operate on a single what-went-wrong report to be made public in the spring.

As well, on April 11 the 120-day hands-off period imposed under Parliament's emergency legislation expires. That means commission inspectors formally regain legal authority to verify the quality of AECL's work on both cooling pump hook-ups, including pump 104, which was finally connected during a maintenance shut-down that ended Feb. 1.

But a regularly scheduled CNSC meeting Thursday heard that AECL has invited the inspectors to carry out those checks right away, rather than wait.

Said the CNSC's new president Michael Binder: "It would be really nice if we could start a new chapter on April 11."

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By Land and Sea, Clean Electricity Needs to Lead the Way

Martha's Vineyard 100% Renewable Energy advances electrification across EVs, heat pumps, distributed solar, offshore wind, microgrids, and battery storage, cutting emissions, boosting efficiency, and strengthening grid resilience for storms and sea-level rise.

 

Key Points

It is an islandwide plan to electrify transport and buildings using wind, solar, storage, and a modern resilient grid.

✅ Electrify transport: EV adoption and SSA hybrid-electric ferries.

✅ Deploy heat pumps for efficient heating and cooling in buildings.

✅ Modernize the grid: distributed solar, batteries, microgrids, VPP.

 

Over the past year, it has become increasingly clear that climate change is accelerating. Here in coastal New England, annual temperatures and precipitation have risen more quickly than expected, tidal flooding is now commonplace, and storms have increased in frequency and intensity. The window for avoiding the worst consequences of a climate-changed planet is closing.

At their recent special town meeting, Oak Bluffs citizens voted to approve the 100 per cent renewable Martha’s Vineyard warrant article; now, all six towns have adopted the same goals for fossil fuel reduction and green electricity over the next two decades. Establishing these targets for the adoption of renewable energy, though, is only an initial step. Town and regional master plans for energy transformation are being developed, but this is a whole-community effort as well. Now is the time for action.

There is much to do to combat climate change, but our most important task is to transition our energy system from one heavily dependent on fossil fuels to one that is based on clean electricity. The good news is that this can be accomplished with currently available technology, and can be done in an economically efficient manner.

Electrification not only significantly lowers greenhouse gas emissions, but also is a powerful energy efficiency measure. So even though our detailed Island energy model indicates that eliminating all (or almost all) fossil fuel use will mean our electricity use will more than double, posing challenges for state power grids in some regions, our overall annual energy consumption will be significantly lower.

So what do we specifically need to do?

The primary targets for electrification are transportation (roughly 60 peer cent of current fossil fuel use on Martha’s Vineyard) and building heating and cooling (40 per cent).

Over the past two years, the increase in the number of electric vehicle models available across a wide range of price points has been remarkable — sedans, SUVs, crossovers, pickup trucks, even transit vans. When rebates and tax credits are considered, they are affordable. Range anxiety is being addressed both by increases in vehicle performance and the growing availability of charging locations (other than at home, which will be the predominant place for Islanders to refuel) and, over time, enable vehicle-to-grid support for our local system. An EV purchase should be something everyone should seriously consider when replacing a current fossil vehicle.

The elephant in the transportation sector room is the Steamship Authority. The SSA today uses roughly 10 per cent of the fossil fuel attributable to Martha’s Vineyard, largely but not totally in the ferries. The technology needed for fully electric short-haul vessels has been under development in Scandinavia for a number of years and fully electric ferries are in operation there. A conservative approach for the SSA would be to design new boats to be hybrid diesel-electric, retrofittable to plug-in hybrids to allow for shoreside charging infrastructure to be planned and deployed. Plug-in hybrid propulsion could result in a significant reduction in emissions — perhaps as much as 95 per cent, per the long-range plan for the Washington State ferries. While the SSA has contracted for an alternative fuel study for its next boat, given the long life of the vessels, an electrification master plan is needed soon.

For building heating and cooling, the answer for electrification is heat pumps, both for new construction and retrofits. These devices move heat from outside to inside (in the winter) or inside to outside (summer), and are increasingly integrated into connected home energy systems for smarter control. They are also remarkably efficient (at least three times more efficient than burning oil or propane), and today’s technology allows their operation even in sub-zero outside temperatures. Energy costs for electric heating via heat pumps on the Vineyard are significantly below either oil or propane, and up-front costs are comparable for new construction. For new construction and when replacing an existing system, heat pumps are the smart choice, and air conditioning for the increasingly hot summers comes with the package.

A frequent objection to electrification is that fossil-fueled generation emits greenhouse gases — thus a so-called green grid is required in order to meet our targets. The renewable energy fraction of our grid-supplied electricity is today about 30 per cent; by 2030, under current legislation that fraction will reach 54 per cent, and by 2040, 77 per cent. Proposed legislation will bring us even closer to our 2040 goals. The Vineyard Wind project will strongly contribute to the greening of our electricity supply, and our local solar generation (almost 10 per cent of our overall electricity use at this point) is non-negligible.

A final important facet of our energy system transformation is resilience. We are dependent today on our electricity supply, and this dependence will grow. As we navigate the challenges of climate change, with increasingly more frequent and more serious storms, 2021 electricity lessons underscore that resilience of electricity supply is of paramount importance. In many ways, today’s electricity distribution system is basically the same approach developed by Edison in the late 19th century. In partnership with our electric utility, we need to modernize the grid to achieve our resiliency goals.

While the full scope of this modernization effort is still being developed, the outline is clear. First, we need to increase the amount of energy generated on-Island — to perhaps 25 per cent of our total electricity use. This will be via distributed energy resources (in the form of distributed solar and battery installations as well as community solar projects) and the application of advanced grid control systems. For emergency critical needs, the concept of local microgrids that are detachable from the main grid when that grid suffers an outage are an approach that is technically sound and being deployed elsewhere. Grid coordination of distributed resources by the utility allows for handling of peak power demand; in the early 2030s this could result in what is known as a virtual power plant on the Island.

The adoption of the 100 renewable Martha’s Vineyard warrant articles is an important milestone for our community. While the global and national efforts in the climate crisis may sometimes seem fraught, we can take some considerable pride in what we have accomplished so far and will accomplish in coming years. As with many change efforts, the old catch-phrase applies: think globally, act locally.
 

 

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Cooperation agreement for Rosatom and Russian Academy

Rosatom-RAS Cooperation drives joint R&D in nuclear energy, nuclear medicine, fusion, particle accelerators, laser technologies, fuel cycle safety, radioactive waste management, and supercomputing, aligning strategic planning and standards to accelerate innovation across Russia's nuclear sector.

 

Key Points

A pact uniting Rosatom and RAS on nuclear R&D, fusion, and medicine to advance nuclear technologies across Russia.

✅ Joint R&D in fusion, accelerators, lasers, and new materials

✅ Focus on fuel cycle closure, safety, and waste management

✅ Shared strategic planning, standards, and expert evaluation

 

Russian state atomic energy corporation Rosatom and the Russian State Academy of Sciences are to cooperate on joint scientific, technical and innovative activities in areas including nuclear energy, nuclear medicine and other areas of the electricity sector under an agreement signed in Moscow on 7 February.

The cooperation agreement was signed by Rosatom Director General Alexei Likhachov and President of the Russian Academy of Sciences Alexander Sergeev during a joint meeting to mark Russian Science Day. Under its terms, the partners will cooperate in organising research and development activities aimed at providing technological advantages in various sectors of the domestic industry, as well as creating and developing interdisciplinary scientific and technological centres and organisations supporting energy sector training and innovation. They will also jointly develop strategic planning documents, improve the technical and scientific regulatory and legal framework, and carry out expert evaluations of scientific and technical projects and scientific consultations.

Rosatom said the main areas of cooperation in the agreement are: the development of laser technologies and particle accelerators; the creation of modern diagnostic equipment, nuclear medicine and radiation therapy; controlled thermonuclear fusion; nuclear energy of the future; new materials; the nuclear fuel cycle and its closure; safety of nuclear energy and power sector pandemic response preparedness; environmental aspects of radioactive waste management; modern supercomputers, databases, application packages, and import-substituting codes; and also X-ray astronomy and nuclear planetology.

Likhachov said joint activities between Rosatom and the Academy would strengthen the Russian nuclear industry's "leadership" in the world and allow the creation of new technologies that would shape the future image of the nuclear industry in Russia. "Within the framework of the Agreement, we intend to expand work on the entire spectrum of advanced scientific research. The most important direction of our cooperation will be the integration of fundamental, exploratory and applied scientific research, including in the interests of the development of the nuclear industry. We will work together to form the nuclear energy industry of the future, and enhance grid resilience, to create new materials, new radiation technologies,” he said.

Sergeyev noted the "rich history" of cooperation between the Academy of Sciences and the nuclear industry, including modern safety practices such as arc flash training that support operations. “All major projects in the field of military and peaceful nuclear energy were carried out jointly by scientists and specialists of our organisations, which largely ensured their timeliness and success," he said.

 

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Can California Manage its Solar Boom?

California Duck Curve highlights midday solar oversupply and steep evening peak demand, stressing grid stability. Solutions include battery storage, demand response, diverse renewables like wind, geothermal, nuclear, and regional integration to reduce curtailment.

 

Key Points

A mismatch between midday solar surplus and evening demand spikes, straining the grid without storage and flexibility.

✅ Midday solar oversupply forces curtailment and wasted clean energy.

✅ Evening ramps require fast, fossil peaker plants to stabilize load.

✅ Batteries, demand response, regional trading flatten the curve.

 

California's remarkable success in adopting solar power, including a near-100% renewable milestone, has created a unique challenge: managing the infamous "duck curve." This distinctive curve illustrates a growing mismatch between solar electricity generation and the state's energy demands, creating potential problems for grid stability and ultimately threatening to slow California's progress in the fight against climate change.


The Shape of the Problem

The duck curve arises from a combination of high solar energy production during midday hours and surging energy demand in the late afternoon and evening when solar power declines. During peak solar hours, the grid often has an overabundance of electricity, and curtailments are increasing as a result, while as the sun sets, demand surges when people return home and businesses ramp up operations. California's energy grid operators must scramble to make up this difference, often relying on fast-acting but less environmentally friendly power sources.


The Consequences of the Duck Curve

The increasing severity of the duck curve has several potential consequences for California:

  • Grid Strain: The rapid ramp-up of power sources to meet evening demand puts significant strain on the electrical grid. This can lead to higher operational costs and potentially increase the risk of blackouts during peak demand times.
  • Curtailed Energy: To avoid overloading the grid, operators may sometimes have to curtail excess solar energy during midday, as rising curtailment reports indicate, essentially wasting clean electricity that could have been used to displace fossil fuel generation.
  • Obstacle to More Solar: The duck curve can make it harder to add new solar capacity, as seen in Alberta's solar expansion challenges, for fear of further destabilizing the grid and increasing the need for fossil fuel-based peaking plants.


Addressing the Challenge

California is actively seeking solutions to mitigate the duck curve, aligning with national decarbonization pathways that emphasize practicality. Potential strategies include:

  • Energy Storage: Deploying large-scale battery storage can help soak up excess solar electricity during the day and release it later when demand peaks, smoothing out the duck curve.
  • Demand Flexibility: Encouraging consumers to shift their energy use to off-peak hours through incentives and smart grid technologies can help reduce late-afternoon surges in demand.
  • Diverse Power Sources: While solar is crucial, a balanced mix of energy sources, including geothermal, wind, and nuclear, can improve grid stability and reduce reliance on rapid-response fossil fuel plants.
  • Regional Cooperation: Integrating California's grid with neighboring states can aid in balancing energy supply and demand across a wider geographical area.


The Ongoing Solar Debate

The duck curve has become a central point of debate about the future of California's energy landscape. While acknowledging the challenge, solar advocates argue for continued expansion, backed by measures like a bill to require solar on new buildings, emphasizing the urgent need to transition away from fossil fuels. Grid operators and some utility companies call for a more cautious approach, emphasizing grid reliability and potential costs if the problem isn't effectively managed.


Balancing California's Needs and its Green Ambitions

Finding the right path forward is essential; it will determine whether California can continue to lead the way in solar energy adoption while ensuring a reliable and affordable electricity supply. Successfully navigating the duck curve will require innovation, collaboration, and a strong commitment to building a sustainable energy system, as wildfire smoke impacts on solar continue to challenge generation predictability.

 

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The Phillipines wants nuclear power to be included in the country's energy mix as the demand for electricity is expected to rise.

Philippines Nuclear Energy Policy aims to add nuclear power to the energy mix via executive order, meeting rising electricity demand with 24/7 baseload while balancing safety, renewables, and imported fuel dependence in the Philippines.

 

Key Points

A government plan to include nuclear power in the energy mix to meet demand, ensure baseload, and uphold safety.

✅ Executive order proposed by Energy Secretary Alfonso Cusi

✅ Targets 24/7 baseload, rising electricity demand

✅ Balances safety, renewables, and energy security

 

Phillipines Presidential spokesman Salvador Panelo said Energy Secretary Alfonso Cusi made the proposal during last Monday's Cabinet meeting in Malacaaang. "Secretary Cusi likewise sought the approval of the issuance of a proposed executive order for the inclusion of nuclear power, including next-gen nuclear options in the country's energy mix as the Philippines is expected to the rapid growth in electricity and electricity demand, in which, 24/7 power is essential and necessary," Panelo said in a statement.

Panelo said Duterte would study the energy chief's proposal, as China's nuclear development underscores regional momentum. In the 1960s until the mid 80s, the late president Ferdinand Marcos adopted a nuclear energy program and built the Bataan Nuclear Plant.

The nuclear plant was mothballed after Corazon Aquino became president in 1986. There have been calls to revive the nuclear plant, saying it would help address the Philippines' energy supply issues. Some groups, however, said such move would be expensive and would endanger the lives of people living near the facility, citing Three Mile Island as a cautionary example.

Panelo said proposals to revive the Bataan Nuclear Plant were not discussed during the Cabinet meeting, even as debates like California's renewable classification continue to shape perceptions. Indigenous energy sources natural gas, hydro, coal, oil, geothermal, wind, solar, biomassand ethanol constitute more than half or 59.6%of the Philippines' energy mix.

Imported oil make up 31.7% while imported coal, reflecting the country's coal dependency, contribute about 8.7%.

Imported ethanol make up 0.1% of the energy mix, even as interest in atomic energy rises globally.

In 2018, Duterte said safety should be the priority when deciding whether to tap nuclear energy for the country's power needs, as countries like India's nuclear restart proceed with their own safeguards.

 

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China power cuts: What is causing the country's blackouts?

China Energy Crisis drives electricity shortages, power cuts, and blackouts as coal prices surge, carbon-neutrality rules tighten, and manufacturing hubs ration energy, disrupting supply chains and industrial output ahead of winter demand peaks.

 

Key Points

A power shortfall from costly coal, price caps, and emissions targets, causing blackouts and industrial rationing.

✅ Coal prices soar while electricity tariffs are capped

✅ Factories in northeast hubs face rationing and downtime

✅ Supply chains risk delays ahead of winter demand

 

China is struggling with a severe shortage of electricity which has left millions of homes and businesses hit by power cuts.

Blackouts are not that unusual in the country but this year a number of factors have contributed to a perfect storm for electricity suppliers, including surging electricity demand globally.

The problem is particularly serious in China's north eastern industrial hubs as winter approaches - and is something that could have implications for the rest of the world.

Why has China been hit by power shortages?
The country has in the past struggled to balance electricity supplies with demand, which has often left many of China's provinces at risk of power outages.

During times of peak power consumption in the summer and winter the problem becomes particularly acute.

But this year a number of factors have come together to make the issue especially serious.

As the world starts to reopen after the pandemic, demand for Chinese goods is surging and the factories making them need a lot more power, highlighting China's electricity appetite in recent months.

Rules imposed by Beijing as it attempts to make the country carbon neutral by 2060 have seen coal production slow, even as the country still relies on coal for more than half of its power and as low-emissions generation is set to cover most global demand growth.

And as electricity demand has risen, the price of coal has been pushed up.

But with the government strictly controlling electricity prices, coal-fired power plants are unwilling to operate at a loss, with many drastically reducing their output instead.

Who is being affected by the blackouts?
Homes and businesses have been affected by power cuts as electricity has been rationed in several provinces and regions.

A coal-burning power plant can be seen behind a factory in China"s Inner Mongolia Autonomous Region

The state-run Global Times newspaper said there had been outages in four provinces - Guangdong in the south and Heilongjiang, Jilin and Liaoning in the north east. There are also reports of power cuts in other parts of the country.

Companies in major manufacturing areas have been called on to reduce energy usage during periods of peak demand or limit the number of days that they operate.

Energy-intensive industries such as steel-making, aluminium smelting, cement manufacturing and fertiliser production are among the businesses hardest hit by the outages.

What has the impact been on China's economy?
Official figures have shown that in September 2021, Chinese factory activity shrunk to the lowest it had been since February 2020, when power demand dropped as coronavirus lockdowns crippled the economy.

Concerns over the power cuts have contributed to global investment banks cutting their forecasts for the country's economic growth.

Goldman Sachs has estimated that as much as 44% of the country's industrial activity has been affected by power shortages. It now expects the world's second largest economy to expand by 7.8% this year, down from its previous prediction of 8.2%.

Globally, the outages could affect supply chains, including solar supply chains as the end-of-the-year shopping season approaches.

Since economies have reopened, retailers around the world have already been facing widespread disruption amid a surge in demand for imports.

China's economic planner, the National Development and Reform Commission (NDRC), has outlined a number of measures to resolve the problem, with energy supplies in the northeast of the country as its main priority this winter.

The measures include working closely with generating firms to increase output, ensuring full supplies of coal and promoting the rationing of electricity.

The China Electricity Council, which represents generating firms, has also said that coal-fired power companies were now "expanding their procurement channels at any cost" in order to guarantee winter heat and electricity supplies.

However, finding new sources of coal imports may not be straightforward.

Russia is already focused on its customers in Europe, Indonesian output has been hit by heavy rains and nearby Mongolia is facing a shortage of road haulage capacity,

Are energy shortages around the world connected?
Power cuts in China, UK petrol stations running out of fuel, energy bills jumping in Europe, near-blackouts in Japan and soaring crude oil, natural gas and coal prices on wholesale markets - it would be tempting to assume the world is suddenly in the grip of a global energy drought.

However, it is not quite as simple as that - there are some distinctly different issues around the world.

For example, in the UK petrol stations have run dry as motorists rushed to fill up their vehicles over concerns that a shortage of tanker drivers would mean fuel would soon become scarce.

Meanwhile, mainland Europe's rising energy bills and record electricity prices are due to a number of local factors, including low stockpiles of natural gas, weak output from the region's windmills and solar farms and maintenance work that has put generating operations out of action.
 

 

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Tesla (TSLA) Wants to Become an Electricity Retailer

Tesla Energy Ventures Texas enters the deregulated market as a retail electricity provider, leveraging ERCOT, battery storage, solar, and grid software to enable virtual power plants and customer energy trading with Powerwall and Megapack assets.

 

Key Points

Tesla Energy Ventures Texas is Tesla's retail power unit selling grid and battery energy and enabling solar exports.

✅ ERCOT retail provider; sells grid and battery-stored power

✅ Uses Powerwall/Megapack; supports virtual power plants

✅ Targets Tesla owners; enables solar export and trading

 

Last week, Tesla Energy Ventures, a new subsidiary of electric car maker Tesla Inc. (TSLA), filed an application to become a retail electricity provider in the state of Texas. According to reports, the company plans to sell electricity drawn from the grid to customers and from its battery storage products. Its grid transaction software may also enable customers for its solar panels to sell excess electricity back to the smart grid in Texas.1

For those who have been following Tesla's fortunes in the electric car industry, the Palo Alto, California-based company's filing may seem baffling. But the move dovetails with Tesla's overall ambitions for its renewable energy business, as utilities face federal scrutiny of climate goals and electricity rates.

Why Does Tesla Want to Become an Electricity Provider?
The simple answer to that question is that Tesla already manufactures devices that produce and store power. Examples of such devices are its electric cars, which come equipped with lithium ion batteries, and its suite of battery storage products for homes and enterprises. Selling power generated from these devices to consumers or to the grid is a logical next step.


Tesla's move will benefit its operations. The filing states that it plans to build a massive battery storage plant near its manufacturing facility in Austin. The plant will provide the company with a ready and cheap source of power to make its cars.

Tesla's filing should also be analyzed in the context of the Texas grid. The state's electricity market is fully deregulated, unlike regions debating grid privatization approaches, and generated about a quarter of its overall power from wind and solar in 2020.2 The Biden administration's aggressive push toward clean energy is only expected to increase that share.

After a February fiasco in the state grid resulted in a shutdown of renewable energy sources and skyrocketing natural gas prices, Texas committed to boosting the role of battery storage in its grid. The Electricity Reliability Council of Texas (ERCOT), the state's grid operator, has said it plans to install 3,008 MW of battery storage by the end of 2022, a steep increase from the 225 MW generated at the end of 2020.3 ERCOT's proposed increase in installation represents a massive market for Tesla's battery unit.

Tesla already has considerable experience in this arena. It has built battery storage plants in California and Australia and is building a massive battery storage unit in Houston, according to a June Bloomberg report.4 The unit is expected to service wholesale power producers. Besides this, the company plans to "drum up" business among existing customers for its batteries through an app and a website that will allow them to buy and sell power among themselves, a model also being explored by Octopus Energy in international talks.

Tesla Energy Ventures: A Future Profit Center?
Tesla's foray into becoming a retail electricity provider could boost the top line for its energy services business, even as issues like power theft in India highlight retail market challenges. In its last reported quarter, the company stated that its energy generation and storage business brought in $810 million in revenues.

Analysts have forecast a positive future for its battery storage business. Alex Potter from research firm Piper Sandler wrote last year that battery storage could bring in more than $200 billion per year in revenue and grow up to a third of the company's overall business.5

Immediately after the news was released, Morningstar analyst Travis Miller wrote that Tesla does not represent an immediate threat to other major players in Texas's retail market, where providers face strict notice obligations illustrated when NT Power was penalized for delayed disconnection notices, such as NRG Energy, Inc. (NRG) and Vistra Corp. (VST). According to him, the company will initially target its own customers to "complement" its offerings in electric cars, battery, charging, and solar panels.6

Further down the line, however, Tesla's brand name and resources may work to its advantage. "Tesla's brand name recognition gives it an advantage in a hypercompetitive market," Miller wrote, adding that the car company's entry confirmed the firm's view that consumer technology or telecom companies will try to enter retail energy markets, where policy shifts like Ontario rate reductions can shape customer expectations.

 

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