Nuclear power will bolster the economy

Germany Nuclear Phase-Out drives policy amid gas supply risks, Nord Stream 1 shutdown fears, Russia dependency, and energy security planning, as Robert Habeck rejects extending reactors, favoring coal backup, storage, and EU diversification strategies.

Key Points

Ending Germany's last reactors by year end despite gas risks, prioritizing storage, coal backup, and EU diversification.

✅ Reactors' legal certification expires at year end

✅ Minimal gas savings from extending nuclear capacity

✅ Nord Stream 1 cuts amplify energy security risks

Germany’s vice-chancellor has defended the government’s commitment to ending the use of nuclear power at the end of this year, amid fears that Russia may halt natural gas supplies entirely.

Vice-Chancellor Robert Habeck, who is also the economy and climate minister and is responsible for energy, argued that keeping the few remaining reactors running would do little to address the problems caused by a possible natural gas shortfall.

“Nuclear power doesn’t help us there at all,” Habeck, said at a news conference in Vienna on Tuesday. “We have a heating problem or an industry problem, but not an electricity problem – at least not generally throughout the country.”

The main gas pipeline from Russia to Germany shut down for annual maintenance on Monday, as Berlin grew concerned that Moscow may not resume the flow of gas as scheduled.

The Nord Stream 1 pipeline, Germany’s main source of Russian gas, is scheduled to be out of action until July 21 for routine work that the operator says includes “testing of mechanical elements and automation systems”.

But German officials are suspicious of Russia’s intentions, particularly after Russia’s Gazprom last month reduced the gas flow through Nord Stream 1 by 60 percent.

Gazprom cited technical problems involving a gas turbine powering a compressor station that partner Siemens Energy sent to Canada for overhaul.

Germany’s main opposition party has called repeatedly to extend nuclear power by keeping the country’s last three nuclear reactors online after the end of December. There is some sympathy for that position in the ranks of the pro-business Free Democrats, the smallest party in Chancellor Olaf Scholz’s governing coalition.

In this year’s first quarter, nuclear energy accounted for 6 percent of Germany’s electricity generation and natural gas for 13 percent, both significantly lower than a year earlier. Germany has been getting about 35 percent of its gas from Russia.

Habeck said the legal certification for the remaining reactors expires at the end of the year and they would have to be treated thereafter as effectively new nuclear plants, complete with safety considerations and the likely “very small advantage” in terms of saving gas would not outweigh the complications.

Fuel for the reactors also would have to be procured and Scholz has said that the fuel rods are generally imported from Russia.

Opposition politicians have argued that Habeck’s environmentalist Green party, which has long strongly supported the nuclear phase-out, is opposing keeping reactors online for ideological reasons, even as some float a U-turn on the nuclear phaseout in response to the energy crisis.

Reducing dependency on Russia
Germany and the rest of Europe are scrambling to fill the gas storage in time for the northern hemisphere winter, even as Europe is losing nuclear power at a critical moment and reduce their dependence on Russian energy imports.

Prior to the Russian invasion of Ukraine, Berlin had said it considered nuclear energy dangerous and in January objected to European Union proposals that would let the technology remain part of the bloc’s plans for a climate-friendly future that includes a nuclear option for climate change pathway.

“We consider nuclear technology to be dangerous,” government spokesman Steffen Hebestreit told reporters in Berlin, noting that the question of what to do with radioactive waste that will last for thousands of generations remains unresolved.

While neighbouring France aimed to modernise existing reactors, Germany stayed on course to switch off its remaining three nuclear power plants at the end of this year and phase out coal by 2030.

Last month, Germany’s economy minister said the country would limit the use of natural gas for electricity production and make a temporary recourse to coal generation to conserve gas.

“It’s bitter but indispensable for reducing gas consumption,” Robert Habeck said.

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Ontario Electricity Rates update: OEB sets time-of-use and tiered pricing for residential customers, with kWh charges for peak, mid-peak, and off-peak periods reflecting COVID-19 impacts on demand, supply costs, and pricing.

Key Points

Ontario Electricity Rates are OEB-set time-of-use and tiered prices that set per-kWh costs for residential customers.

✅ Time-of-use: 21.7 peak, 15.0 mid-peak, 10.5 off-peak cents/kWh

✅ Tiered: 12.6 cents/kWh up to 1000 kWh, then 14.6 cents/kWh

✅ Average 700 kWh home pays about $2.24 more per month

Energy bills for the typical Ontario home are going up by about two per cent with fixed pricing coming to an end on Nov. 1, the Ontario Energy Board says. 

The province's electricity regulator has released new time-of-use pricing and says the rate for the average residential customer using 700 kWh per month will increase by about $2.24.

The change comes as Ontario stretches into its eight month of the COVID-19 pandemic with new case counts reaching levels higher than ever seen before.

Time-of-use pricing had been scrapped for residential bills for much for the pandemic with a single fixed COVID-19 hydro rate set for all hours of the day. The move, which came into effect June 1, was meant "to support families, small business and farms while Ontario plans for the safe and gradual reopening of the province," the OEB said at the time.

Ontario later set the off-peak price until February 7 around the clock to provide additional relief.

Fixed pricing meant customers' bills reflected how much power they used, rather than when they used it. Customers were charged 12.8 cents/kWh under the COVID-19 recovery rate no matter their time of use.

Beginning November, the province says customers can choose between time-of-use and tiered pricing options. Rates for time-of-use plans will be 21.7 cents/kWh during peak hours, 15 cents/kWh for mid-peak use and 10.5 cents/kWh for off-peak use. 

Customers choosing tiered pricing will pay 12.6 cents/kWh for the first 1000 kWh each month and then 14.6 cents/kWh for any power used beyond that.

The energy board says the increase in pricing reflects "a combination of factors, including those associated with the COVID-19 pandemic, that have affected demand, supply costs and prices in the summer and fall of 2020."

Asked for his reaction to the move Tuesday, Premier Doug Ford said, "I hate it," adding the province inherited an energy "mess" from the previous Liberal government and are "chipping away at it."

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California Blackouts expose grid reliability risks as PG&E deenergizes lines during high winds. Mandated solar and wind displace dispatchable natural gas, straining ISO load balancing, transmission maintenance, and battery storage planning amid escalating wildfire liability.

Key Points

California grid shutoffs stem from wildfire risk, renewables, and deferred transmission maintenance under mandates.

✅ PG&E deenergizes lines to reduce wildfire ignition during high winds.

✅ Mandated solar and wind displace dispatchable gas, raising balancing costs.

✅ Storage, reliability pricing, and grid upgrades are needed to stabilize supply.

California is again facing widespread blackouts this season. Politicians are scrambling to assign blame to Pacific Gas & Electric (PG&E) a heavily regulated utility that can only do what the politically appointed regulators say it can do. In recent years this has meant building a bunch of solar and wind projects, while decommissioning reliable sources of power and scrimping on power line maintenance and upgrades.

The blackouts are connected with the legal liability from old and improperly maintained power lines being blamed for sparking fires—in hopes that deenergizing the grid during high winds reduces the likelihood of fires. 

How did the land of Silicon Valley and Hollywood come to have developing world electricity?

California’s Democratic majority, from Gov. Gavin Newsom to the solidly progressive legislature, to the regulators they appoint, have demanded huge increases in renewable energy. Renewable electricity targets have been pushed up, and policymakers are weighing a revamp of electricity rates to clean the grid, with the state expected to reach a goal of 33% of its power from renewable sources, mostly solar and wind, by next year, and 60% of its electricity from renewables by 2030.

In 2018, 31% of the electricity Californians purchased at the retail level came from approved renewables. But when rooftop solar is added to the mix, about 34% of California’s electricity came from renewables in 2018. Solar photovoltaic (PV) systems installed “behind-the-meter” (BTM) displace utility-supplied generation, but still affect the grid at large, as electricity must be generated at the moment it is consumed. PV installations in California grew 20% from 2017 to 2018, benefiting from the state’s Self-Generation Incentive Program that offers hefty rebates through 2025, as well as a 30% federal tax credit.

Increasingly large amounts of periodic, renewable power comes at a price—the more there is, the more difficult it is to keep the power grid stable and energized. Since electricity must be consumed the instant it is generated, and because wind and solar produce what they will whenever they do, the rest of the grid’s power producers—mostly natural gas plants—have to make up any differences between supply and immediate demand. This load balancing is vital, because without it, the grid will crash and widespread blackouts will ensue.

California often produces a surplus of mandated solar and wind power, generated for 5 to 8 cents per kilowatt hour. This power displaces dispatchable power from natural gas, coal and nuclear plants, resulting in reliable power plants spending less time online and driving up electricity prices as the plants operate for fewer hours of the day. Subsidized and mandated solar power, along with a law passed in California in 2006 (SB 1638) that bans the renewal of coal-fired power contracts, has placed enormous economic pressure on the Western region’s coal power plants—among them, the nation’s largest, Navajo Generating Station. As these plants go off line, the Western power grid will become increasingly unstable. Eventually, the states that share their electric power in the Western Interconnect may have to act to either subsidize dispatchable power or place a value on reliability—something that was taken for granted in the growth of the America’s electrical system and its regulatory scheme.

California law regarding electricity explicitly states that “a violation of the Public Utilities Act is a crime” and that it is “…the intent of the Legislature to provide for the evolution of the ISO (California’s Independent System Operator—the entity that manages California’s grid) into a regional organization to promote the development of regional electricity transmission markets in the western states.” In other words, California expects to dictate how the Western grid operates.

One last note as to what drives much of California’s energy policy: politics. California State Senator Kevin de León (the author served with him in the State Assembly) drafted SB 350, the Clean Energy and Pollution Reduction Act. It became law in 2015. Sen. de León followed up with SB 100 in 2018, signed into law weeks before the 2018 election. SB 100 increased California’s renewable portfolio standard to 60% by 2030 and further requires all the state’s electricity to come from carbon-free sources by 2045, a capstone of the state’s climate policies that factor into the blackout debate.  

Sen. de León used his environmental credentials to burnish his run for the U.S. Senate against Sen. Dianne Feinstein, eventually capturing the endorsements of the California Democratic Party and billionaire environmentalist Tom Steyer, now running for president. Feinstein and de León advanced to the general in California’s jungle primary, where Feinstein won reelection 54.2% to 45.8%.

De León may have lost his race for the U.S. Senate, but his legacy will live on in increasingly unaffordable electricity and blackouts, not only in California, but in the rest of the Western United States—unless federal or state regulators begin to place a value on reliability. This could be done by requiring utility scale renewable power providers to guarantee dispatchable power, as policymakers try to avert a looming shortage of firm capacity, either through purchase agreements with thermal power plants or through the installation of giant and costly battery farms or other energy storage means.

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India Solar Slowdown and Coal Surge highlights policy uncertainty, grid stability concerns, financing gaps, and land acquisition issues affecting renewable energy, emissions targets, energy security, storage deployment, and tendering delays across the solar value chain.

Key Points

Analysis of slowed solar growth and rising coal in India, examining policy, grid, finance, and emissions tradeoffs.

✅ Policy uncertainty and tender delays stall solar pipelines

✅ Grid bottlenecks, storage gaps, and curtailment risks persist

✅ Financing strains and DISCOM payment delays dampen investment

India, a global leader in renewable energy adoption where renewables surpassed coal in capacity recently, faces a pivotal moment as the growth of solar power output decelerates while coal generation sees an unexpected surge. This article examines the factors contributing to this shift, its implications for India's energy transition, and the challenges and opportunities it presents.

India's Renewable Energy Ambitions

India has set ambitious targets to expand its renewable energy capacity, including a goal to achieve 175 gigawatts (GW) of renewable energy by 2022, with a significant portion from solar power. Solar energy has been a focal point of India's renewable energy strategy, as documented in on-grid solar development studies, driven by falling costs, technological advancements, and environmental imperatives to reduce greenhouse gas emissions.

Factors Contributing to Slowdown in Solar Power Growth

Despite initial momentum, India's solar power growth has encountered several challenges that have contributed to a slowdown. These include policy uncertainties, regulatory hurdles, land acquisition issues, and financial constraints affecting project development and implementation, even as China's solar PV growth surged in recent years. Delays in tendering processes, grid connectivity issues, and payment delays from utilities have also hindered the expansion of solar capacity.

Surge in Coal Generation

Concurrently, India has witnessed an unexpected increase in coal generation in recent years. Coal continues to dominate India's energy mix, accounting for a significant portion of electricity generation due to its reliability, affordability, and existing infrastructure, even as wind and solar surpassed coal in the U.S. in recent periods. The surge in coal generation reflects the challenges in scaling up renewable energy quickly enough to meet growing energy demand and address grid stability concerns.

Implications for India's Energy Transition

The slowdown in solar power growth and the rise in coal generation pose significant implications for India's energy transition and climate goals. While renewable energy remains central to India's long-term energy strategy, and as global renewables top 30% of electricity generation worldwide, the persistence of coal-fired power plants complicates efforts to reduce carbon emissions and mitigate climate change impacts. Balancing economic development, energy security, and environmental sustainability remains a complex challenge for policymakers.

Challenges and Opportunities

Addressing the challenges facing India's solar sector requires concerted efforts to streamline regulatory processes, improve grid infrastructure, and enhance financial mechanisms to attract investment. Encouraging greater private sector participation, promoting technology innovation, and expanding renewable energy storage capacity are essential to overcoming barriers and accelerating solar power deployment, as wind and solar have doubled their global share in recent years, demonstrating the pace possible.

Policy and Regulatory Framework

India's government plays a crucial role in fostering a conducive policy and regulatory framework to support renewable energy growth and phase out coal dependence, particularly as renewable power is set to shatter records worldwide. This includes implementing renewable energy targets, providing incentives for solar and other clean energy technologies, and addressing systemic barriers that hinder renewable energy adoption.

Path Forward

To accelerate India's energy transition and achieve its renewable energy targets, stakeholders must prioritize integrated energy planning, grid modernization, and sustainable development practices. Investing in renewable energy infrastructure, promoting energy efficiency measures, and fostering international collaboration on technology transfer and capacity building are key to unlocking India's renewable energy potential.

Conclusion

India stands at a crossroads in its energy transition journey, balancing the need to expand renewable energy capacity while managing the challenges associated with coal dependence. By addressing regulatory barriers, enhancing grid reliability, and promoting sustainable energy practices, India can navigate towards a more diversified and resilient energy future. Embracing innovation, strengthening policy frameworks, and fostering public-private partnerships will be essential in realizing India's vision of a cleaner, more sustainable energy landscape for generations to come.

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Ontario electricity shortage is looming, RBC and IESO warn, as EV electrification surges, Pickering nuclear faces delays, and gas plants backstop expiring renewables, raising GHG emissions and grid reliability concerns across the province.

Key Points

A projected supply shortfall as demand rises from electrification, expiring contracts, and delayed nuclear capacity.

✅ RBC warns shortages as early as 2026, significant by 2030

✅ IESO sees EV-driven demand; 5,000-15,000 MW by 2035

✅ Gas reliance boosts GHGs; Pickering life extension assessed

In a fit of ideological pique, Doug Ford’s government spent more than $200 million to scrap more than 700 green energy projects soon after winning the 2018 election, amid calls to make clean, affordable power a central issue, portraying them as “unnecessary and expensive energy schemes.”

A year later, then Associate Energy Minister Bill Walker defended the decision, declaring, “Ontario has an adequate supply of power right now.”

Well, life moves fast. At the time, scrapping the renewable energy projects was criticized as short-sighted and wasteful, raising doubts about whether Ontario was embracing clean power in a meaningful way. It seems especially so now as Ontario confronts the reality of being short of electricity in the coming years.

How short? A recent report by RBC calls the situation “urgent,” saying that Canada’s most populous province could face energy shortages as early as 2026. As contracts for non-hydro renewables and gas plants expire, the shortages could be “significant” by 2030, the bank report said, with grid greening costs adding to the challenge.

The Independent Electricity System Operator (IESO), which manages the electrical supply in Ontario, says demand for electricity could rise at rates not seen in many years, as the government moves to add new gas plants to boost capacity. “Economic growth coming out of the pandemic, along with electrification in many sectors, is driving energy use up,” the agency said in a December assessment.

The good news is that demand is being driven, in part, by the transition to “green” power – carbon-emission-free electricity – by sectors such as transportation and manufacturing. That will help reduce emissions. Yet meeting that demand presents some challenges, prompting the province to outline a plan to address growing needs across the system. The shift to electric vehicles alone is expected to cause a spike in demand starting in 2030. By 2035, the province could need an additional 5,000 to 15,000 megawatts of electricity, the IESO estimates.

It was perhaps no surprise then to see the province announce last week that it wants to delay the long-planned closing of the Pickering nuclear plant by a year to 2026, even as others note the station is slated to close as planned. Operations beyond that would require refurbishing the facility. The province said it’s taking a fresh look at whether that would make sense to extend its life by another 30 years.

In the interim, the province will be forced to dramatically ramp up its reliance on natural gas plants for electricity generation – and, as analysts warn, Ontario’s power mix could get dirtier even before new non-emitting capacity is built, and in the process, increase greenhouse gas emissions from the energy grid by 400 per cent. Broader electrification is expected to produce “significant” GHG emissions reductions in Ontario over the next two decades, according to the IESO. Still, it’s working at cross-purposes if your electric car is charged by electricity generated by fossil fuels.

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Iran Bushehr Earthquake rattles southern province near the Bushehr nuclear power plant, USGS reports M5.1 at 38 km depth; seismic activity along major fault lines raises safety, damage, and monitoring concerns.

Key Points

A magnitude 5.1 quake near Bushehr nuclear plant at 38 km depth, with no damage reported, per USGS.

✅ USGS lists magnitude 5.1 at 38 km depth

✅ Near Bushehr nuclear power plant; built for stronger quakes

✅ Iran lies on major fault lines; quake risk is frequent

A magnitude 5 earthquake struck southern Iran early Friday near the Islamic Republic's only nuclear power plant. There were no immediate reports of damage or injuries as Iran continues combined-cycle conversions across its power sector.

The quake hit Iran's Bushehr province at 5:23 a.m., according to the U.S. Geological Survey. It put the magnitude at 5.1 and the depth of the earthquake at 38 kilometres (24 miles), in a province tied to efforts to transmit electricity to Europe in coming years.

Iranian state media did not immediately report on the quake. However, the Bushehr nuclear power plant was designed to withstand much stronger earthquakes, a notable consideration as Iraq plans nuclear power plants to address shortages.

A magnitude 5 earthquake can cause considerable damage, including power disruptions that have seen blackouts spark protests in some Iranian cities.

Iran sits on major fault lines and is prone to near-daily earthquakes, yet it remains a key player in regional power, with Iran-Iraq energy cooperation ongoing. In 2003, a 6.6-magnitude quake flattened the historic city of Bam, killing 26,000 people, and today Iran supplies 40% of Iraq's electricity through cross-border power deals. Bam is near the Bushehr nuclear plant, which wasn’t damaged at that time, while more recently Iran finalized deals to rehabilitate Iraq's power grid to improve resilience.

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