Drax stalls biomass facility at UK coal plant

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The UK's largest coal-fired power station will not contain a biomass plant on the site, following a decision by Drax Group plc to stall the project.

The company has already invested £80 million (US $124 million) to build a biomass plant at the 4,000-megawatt power plant in North Yorkshire, which generates enough electricity for more than six million homes. However, the company has decided not to implement the station fully in protest against poor support from the government for biomass projects. In addition, the company also has threatened that it may not proceed with a planned £2 billion (US $3.1 billion) investment in three more biomass projects.

The biomass facility at what is the country's largest polluter would have allowed Drax to reduce its CO2 emissions by up to 3.5 million tonnes, or 17.5%, a year. If Drax does not fully implement the biomass facility, it will jeopardize the UK's ability to reach its European Union obligations for reducing emissions.

Drax has claimed that under the current government scheme, it is cheaper for the plant to burn coal and buy extra carbon credits from the European Trading Scheme (ETS) than to burn biomass.

"We are not confident that the [subsidy] regime for what is one of the cheapest forms of renewable energy will support operating the biomass unit at full load, said Dorothy Thompson, Drax's chief executive, speaking to The Times. "The UK is missing out massively on the potential for renewable energy from biomass. We want to run in a low-carbon way, but policy is against us. I think they simply have not put enough expertise into biomass. Wind is not a silver bullet; its benefits have been overstated."

According to Drax, the cost of generating a megawatt-hour of electricity from coal is £31 ($48), compared to £40 ($62) from biomass. The company has already purchased two million tonnes of biomass for the plant but said it is now considering selling the material abroad.

The UK government has come under fire in recent weeks over its poor support for biomass projects, with the Renewable Energy Association stating that several biomass projects have been put on hold because of the government's lack of support. Biomass plant developers receive fixed subsidies for only four years, compared to 20 years for wind farm developers.

The Department of Energy and Climate change (DECC) has pledged to review its support mechanism by the end of March.

"I am aware that our current policy not to grandfather the support given for biomass electricity under the Renewables Obligation has caused significant investment concerns within the industry," said Secretary of State for Energy and Climate Change Ed Miliband. "Given the risk that investment will not come forward, DECC will review the policy on grandfathering and prepare a statement before the end of March."

The REA has welcomed the statement. Gaynor Hartnell, director of policy for the REA, said: "We welcome Government's clear desire to resolve the hiatus in financing of biomass and bioenergy projects as swiftly as it can. We recognize that the process for changing the Renewables Obligation legislation is very restrictive, precisely in order to give investors confidence. One consequence of this is that when a change needs to be made swiftly (in this case for the benefit of investors' confidence) it cannot be done immediately. We therefore look forward to the planned statement before the end of March."

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Westinghouse AP1000 Nuclear Plant Breaks A First Refueling Outage Record

AP1000 Refueling Outage Record showcases Westinghouse nuclear power excellence as Sanmen Unit 2 completes its first reactor refueling in 28.14 days, highlighting safety, reliability, outage optimization, and economic efficiency in China.

 

Key Points

It is the 28.14-day initial refueling at Sanmen Unit 2, a global benchmark achieved with Westinghouse AP1000 technology.

✅ 28.14-day first refueling at Sanmen Unit 2 sets global benchmark

✅ AP1000 design simplifies systems, improves safety and reliability

✅ Outage optimization by Westinghouse and CNNC accelerates schedules

 

Westinghouse Electric Company China operations today announced that Sanmen Unit 2, one of the world's first AP1000® nuclear power plants, has set a new refueling outage record in the global nuclear power industry, completing its initial outage in 28.14 days.

"Our innovative AP1000 technology allows for simplified systems and significantly reduces the amount of equipment, while improving the safety, reliability and economic efficiency of this nuclear power plant, reflecting global nuclear milestones reached recently," said Gavin Liu, president of the Westinghouse Asia Operating Plant Services Business. "We are delighted to see the first refueling outage for Sanmen Unit 2 was completed in less than 30 days. This is a great achievement for Sanmen Nuclear Power Company and further demonstrates the outstanding performance of AP1000 design."

All four units of the AP1000 nuclear power plants in China have completed their first refueling outages in the past 18 months, aligning with China's nuclear energy development momentum across the sector.  The duration of each subsequent outage has fallen significantly - from 46.66 days on the first outage to 28.14 days on Sanmen Unit 2.

"During the first AP1000 refueling outage at the Sanmen site in December 2019, a Westinghouse team of experts worked side-by-side with the Sanmen outage team to partner on outage optimization, and immediately set a new standard for a first-of-a-kind outage, while major refurbishments like the Bruce refurbishment moved forward elsewhere," said Miao Yamin, chairman of CNNC Sanmen Nuclear Power Company Limited. "Lessons learned were openly exchanged between our teams on each subsequent outage, which has built to this impressive achievement."

Westinghouse provided urgent technical support on critical issues during the outage, as international programs such as Barakah Unit 1 achieved key milestones, to help ensure that work was carried out on schedule with no impact to critical path.

In addition to the four AP1000 units in China, two units are under construction at the Vogtle expansion near Waynesboro, Georgia, USA.

Separately, in the United States, a new reactor startup underscored renewed momentum in nuclear generation this year.

 

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Canadian Solar and Tesla contribute to resilient electricity system for Puerto Rico school

SunCrate Solar Microgrid delivers resilient, plug-and-play renewable power to Puerto Rico schools, combining Canadian Solar PV, Tesla Powerwall battery storage, and Black & Veatch engineering to ensure off-grid continuity during outages and disasters.

 

Key Points

A compact PV-and-battery system for resilient, diesel-free power and microgrid backup at schools and clinics.

✅ Plug-and-play, modular PV, inverter, and battery architecture

✅ Tesla Powerwall storage; Canadian Solar 325 W panels

✅ Scales via daisy-chain for higher loads and microgrids

 

Eleven months since their three-building school was first plunged into darkness by Hurricane Maria, 140 students in Puerto Rico’s picturesque Yabucoa district have reliable power. Resilient electricity service was provided Saturday to the SU Manuel Ortiz school through an innovative scalable, plug-and-play solar system pioneered by SunCrate Energy with Black & Veatch support. Known as a “SunCrate,” the unit is an effective mitigation measure to back up the traditional power supply from the grid. The SunCrate can also provide sustainable power in the face of ongoing system outages and future natural disasters without requiring diesel fuel.

The humanitarian effort to return sustainable electricity to the K-8 school, found along the island’s hard-hit southeastern coast, drew donated equipment and expertise from a collection of North American companies. Additional support for the Yabucoa project came from Tesla, Canadian Solar and Lloyd Electric, reflecting broader efforts to build a solar-powered grid in Puerto Rico after Hurricane Maria.

“We are grateful for this initiative, which will equip this school with the technology needed to become a resilient campus and not dependent on the status of the power grid. This means that if we are hit with future harmful weather events, the school will be able to open more quickly and continue providing services to students,” Puerto Rico Secretary of Education Julia Keleher said.

The SunCrate harnesses a scalable rapid-response design developed by Black & Veatch and manufactured by SunCrate Energy. Electricity will be generated by an array of 325-W CS6U-Poly modules from Canadian Solar. California-based Tesla contributed advanced battery energy storage through various Powerwall units capable of storing excess solar power and delivering it outside peak generation periods, with related experience from a virtual power plant in Texas informing deployment.  Lloyd Electric Co. of Wichita Falls, Texas, partnered to support delivery and installation of the SunCrate.

“As families in the region begin to prepare for the school year, this community is still impacted by the longest U.S. power outage in history,” said Dolf Ivener, a Midwestern entrepreneur who owns King of Trails Construction and SunCrate Energy, which is donating the SunCrate. “SunCrate, with its rapid deployment and use of renewable energy, should give this school peace of mind and hopefully returns a touch of long-overdue normalcy to students and their parents. When it comes to consistent power, SunCrate is on duty.”

The SunCrate is a portable renewable energy system conceived by Ivener and designed and tested by Black & Veatch. Its modular design uses solar PV panels, inverters and batteries to store and provide electric power in support of critical services such as police, fire, schools, clinics and other community level facilities.

A SunCrate can generate 23 to 156 kWh per day, and store 10 kWh to 135 kWh depending on configuration. A SunCrate’s power generation and storage capacity can be easily scaled through daisy-chained configurations to accommodate larger buildings and loads. Leveraging resources from Tesla, Canadian Solar, Lloyd Electric and Lord Electric, the unit in Yabucoa will provide an estimated 52 kWh of storable power without requiring use of costlier diesel-powered generators and cutting greenhouse gas emissions. Its capabilities allow the school to strengthen its function as a designated Community Emergency Response Center in the event of future natural disasters.

“Canadian Solar has a long history of using solar power to support humanitarian efforts aiding victims of social injustice and natural disasters, including previous donations to Puerto Rico after Hurricane Maria,” said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. “We are pleased to make the difference for these schoolchildren in Yabucoa who have been without reliable power for too long.”

The SunCrate will also substantially lower the school’s ongoing electricity costs by providing a reliable source of renewable energy on site, as falling costs of solar batteries improve project economics overall.

“Through our experience providing engineering services in Puerto Rico for nearly 50 years, including dozens of specialized projects for local government and industrial clients, we see great potential for SunCrate as a source of resilient power for the Commonwealth’s remote schools and communities at large, underscoring the importance of electricity resilience across critical infrastructure,” said Charles Moseley, a Program Director in Black & Veatch’s water business. “We hope that the deployment of the SunCrate in Yabucoa sets a precedent for facility and municipal level migro-grid efforts on the island and beyond.”

SunCrate also has broad potential applications in conflict/post-conflict environments and in rural electrification efforts in the developing world, serving as a resilient source of electricity within hours of its arrival on site and could enable peer-to-peer energy within communities. Of particular benefit, the system’s flexibility cuts fuel costs to a fraction of a generator’s typical consumption when they are used around the clock with maintenance requirements.

 

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Tariff Threats Boost Support for Canadian Energy Projects

Canadian Energy Infrastructure Tariffs are reshaping pipelines, deregulation, and energy independence, as U.S. trade tensions accelerate approvals for Alberta oil sands, Trans Mountain expansion, and CAPP proposals amid regulatory reform and market diversification.

 

Key Points

U.S. tariff threats drive approvals, infrastructure, and diversification to strengthen Canada energy security.

✅ Tariff risk boosts support for pipelines and export routes

✅ Faster project approvals and deregulation gain political backing

✅ Diversifying markets reduces reliance on U.S. buyers

 

In recent months, the Canadian energy sector has experienced a shift in public and political attitudes toward infrastructure projects, particularly those related to oil and gas production. This shift has been largely influenced by the threat of tariffs from the United States, as well as growing concerns about energy independence and U.S.-Canada trade tensions more broadly.

Scott Burrows, the CEO of Pembina Pipeline Corp., noted in a conference call that the potential for U.S. tariffs on Canadian energy imports has spurred a renewed sense of urgency and receptiveness toward energy infrastructure projects in Canada. With U.S. President Donald Trump’s proposed tariffs Trump tariff threat on Canadian imports, particularly a 10% tariff on energy products, there is increasing recognition within Canada that these projects are essential for the country’s long-term economic and energy security.

While the direct impact of the tariffs is not immediate, industry leaders are optimistic about the long-term benefits of deregulation and faster project approvals, even as some see Biden as better for Canada’s energy sector overall. Burrows highlighted that while it will take time for the full effects to materialize, there are significant "tailwinds" in favor of faster energy infrastructure development. This includes the possibility of more streamlined regulatory processes and a shift toward more efficient project timelines, which could significantly benefit the Canadian energy sector.

This changing landscape is particularly important for Alberta’s oil production, which is one of the largest contributors to Canada’s energy output. The Canadian Association of Petroleum Producers (CAPP) has responded to the growing tariff threat by releasing an “energy platform,” outlining recommendations for Ottawa to help mitigate the risks posed by the evolving trade situation. The platform includes calls for improved infrastructure, such as pipelines and transportation systems, and priorities like clean grids and batteries, to ensure that Canadian energy can reach global markets more effectively.

The tariff threat has also sparked a wider conversation about the need for Canada to strengthen its energy infrastructure and reduce its dependency on the U.S. for energy exports. With the potential for escalating trade tensions, there is a growing push for Canadian energy resources to be processed and utilized more domestically, though cutting Quebec’s energy exports during a tariff war. This has led to increased political support for projects like the Trans Mountain pipeline expansion, which aims to connect Alberta’s oil sands to new markets in Asia via the west coast.

However, the energy sector’s push for deregulation and quicker approvals has raised concerns among environmental groups and Indigenous communities. Critics argue that fast-tracking energy projects could lead to inadequate environmental assessments and greater risks to local ecosystems. These concerns underscore the tension between economic development and environmental protection in the energy sector.

Despite these concerns, there is a clear consensus that Canada’s energy industry needs to evolve to meet the challenges posed by shifting trade dynamics, even as polls show support for energy and mineral tariffs in the current dispute. The proposed U.S. tariffs have made it increasingly clear that the country’s energy infrastructure needs significant investment and modernization to ensure that Canada can maintain its status as a reliable and competitive energy supplier on the global stage.

As the deadline for the tariff decision approaches, and as Ford threatens to cut U.S. electricity exports, Canada’s energy sector is bracing for the potential fallout, while also preparing to capitalize on any opportunities that may arise from the changing trade environment. The next few months will be critical in determining how Canadian policymakers, businesses, and environmental groups navigate the complex intersection of energy, trade, and regulatory reform.

While the threat of U.S. tariffs may be unsettling, it is also serving as a catalyst for much-needed changes in Canada’s energy policy. The push for faster approvals and deregulation may help address some of the immediate concerns facing the sector, but it will be crucial for the government to balance economic interests with environmental and social considerations as the country moves forward in its energy transition.

 

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Quebec Halts Crypto Mining Electricity Requests

Hydro-Quebec Crypto Mining Pause signals a temporary halt as blockchain power requests surge; energy regulator review will weigh electricity demand, winter peak constraints, tariffs, investments, and local jobs to optimize grid stability and revenues.

 

Key Points

A provincial halt on new miner power requests as Hydro-Quebec sets rules to safeguard demand, winter peaks, and rates.

✅ Temporary halt on new electricity sales to crypto miners

✅ Regulator to rank projects by jobs, investment, and revenue

✅ Winter peak demand and tariffs central to new framework

 

Major Canadian electricity provider Hydro-Québec will temporarily stop processing requests from cryptocurrency miners in order for the company to fulfil its obligations to supply energy to the entire province, while its global ambitions adjust to changing demand, according to a press release published June 7.

Hydro-Québec is experiencing “unprecedented” demand from blockchain companies, which reportedly exceeds the electric utility’s short and medium-term capacity. In this regard, the Quebec provincial government has ordered Hydro-Québec to halt electric power sales to cryptocurrency miners, and, following the New Hampshire rejection of Northern Pass announced a new framework for this category of electricity consumers.

In the coming days, Hydro-Québec will reportedly file an application to local energy regulator Régie de l'énergie, proposing a selection process for blockchain industry projects so as “not to miss the opportunities offered by this industry.” Regulators will reportedly target companies which can offer the province the most profitable economic advantages, including investments and local job creation.

#google#

Régie de l'énergie is instructed to consider “the need for a reserved block of energy for this category of consumers, the possibility of maximizing Hydro-Québec's revenues, and issues related to the winter peak period” as well as interprovincial arrangements like the Ontario-Québec electricity deal under discussion. Éric Filion, President of Hydro-Québec Distribution, said:

"The blockchain industry is a promising avenue for Hydro-Québec. Guidelines are nevertheless required to ensure that the development of this industry maximizes spinoffs for Québec without resulting in rate increases for our customers. We are actively participating in the Régie de l'énergie's process so that these guidelines can be produced as quickly as possible."

With this move, the government of Québec deviates from its decision to reportedly open the electricity market to miners at the end of last month, even as an Ontario-Quebec energy swap helps manage electricity demands. In March, the government said it was not interested in providing cheap electricity to Bitcoin miners, stating that cryptocurrency mining at a discount without any sort of “added value” for the local economy was unfavorable.

 

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Energy prices trigger EU inflation, poor worst hit

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

 

Key Points

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

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

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

✅ Gas-dependent power markets drive electricity price spikes.

 

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

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

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

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

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

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

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

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

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

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

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


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

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

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


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

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

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


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

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

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

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

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

 

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Calgary electricity retailer urges government to scrap overhaul of power market

Alberta Capacity Market Overhaul faces scrutiny over electricity costs, reliability targets, investor certainty, and AESO design, as UCP reviews NDP reforms, renewables integration, and deregulated energy-only alternatives impacting generators, ratepayers, and future power price volatility.

 

Key Points

A shift paying generators for capacity and energy to improve reliability; critics warn of higher electricity costs.

✅ UCP reviewing NDP plan and subsidies amid market uncertainty

✅ AESO cites reliability needs as coal retires, renewables grow

✅ Critics predict overprocurement and premature launch cost spikes

 

Jason Kenney's government is facing renewed pressure to cancel a massive overhaul of Alberta's power market that one player says will needlessly spike costs by hundreds of millions of dollars, amid an electricity sector in profound change today.

Nick Clark, who owns the Calgary-based electricity retailer Spot Power, has sent the Alberta government an open letter urging it to walk away from the electricity market changes proposed by the former NDP government.

"How can you encourage new industry to open up when one of their raw material costs will increase so dramatically?" Clark said. "The capacity market will add more costs to the consumer and it will be a spiral downwards."

But NDP Leader Rachel Notley, whose government ushered in the changes, said fears over dramatic cost increases are unfounded.

"There are some players within the current electricity regime who have a vested interest in maintaining the current situation," Notley said

Kenney's UCP vowed during the recent election to review the current and proposed electricity market options, as the electricity market heads for a reshuffle, with plans to report on its findings within 90 days.

The party also promised to scrap subsidies for renewable power, while ensuring "a market-based electricity system" that emphasizes competition in Alberta's electricity market for consumers.

The New Democrats had opted to scrap the current deregulated power market — in place since the Klein era — after phasing out coal-fired generation and ushering in new renewable power as part of changes in how Alberta produces and pays for electricity under their climate change strategy.

The Alberta Electric System Operator, which oversees the grid, says the province will need new sources of electricity to replace shuttered coal plants and backstop wind and solar generators, while meeting new consumer demand.

After consulting with power companies and investors, the AESO concluded in late 2016 the electricity market couldn't attract enough investment to build the needed power generation under the current model.

The AESO said at the time investors were concerned their revenues would be uncertain once new plants are running. It recommended what's known as a capacity market, which compensates power generators for having the ability to produce electricity, even when they're not producing it.

In other words, producers would collect revenue for selling electricity into the grid and, separately, for having the capacity to produce power as a backstop, ensuring the lights stay on. Power generators would use this second source of income to help cover plant construction costs.

Clark said the complex system introduces unnecessary costs, which he believes would hurt consumers in the end. He said what's preventing investment in the power market is uncertainty over how the market will be structured in the future.

"What investors need to see in this market is price certainty, regulatory ease, and where the money they're putting into the marketplace is not at risk," he said.

"They can risk their own money, but if in fact the government comes in and changes the policy as it was doing, then money stayed away from the province."

Notley said a capacity market would not increase power bills but would avoid big price swings, with protections like a consumer price cap on power bills also debated, while bringing greener sources of energy into Alberta's grid.

"Moving back to the [deregulated] energy-only market would make a lot of money for a few people, and put consumers, both industrial and residential, at great risk."

Clark disagrees, citing Enmax's recent submissions to the Alberta Utilities Commission, in which the utility argues the proposed design of the capacity market is flawed.

In its submissions to the commission, which is considering the future of Alberta's power market, Enmax says the proposed system would overestimate the amount of generation capacity the province will need in the future. It says the calculation could result in Alberta procuring too much capacity.

The City of Calgary-owned utility says this could drive up costs by anywhere from $147 million to $849 million a year. It says a more conservative calculation of future electricity demand could avoid the extra expense.

An analysis by a Calgary energy consulting firm suggests a different feature of the proposed power market overhaul could also lead to a massive spike in costs.

EDC Associates, hired by the Consumers' Coalition of Alberta, argues the proposal to launch the new system in November 2021 may be premature, because it could bring in additional supplies of electricity before they're needed.

The consultant's report, also filed with the Alberta Utilities Commission, estimates the early launch date could require customers to pay 40 per cent more for electricity amid rising electricity prices in the province — potentially an extra $1.4 billion — in 2021/22.

"The target implementation date is politically driven by the previous government," said Duane Reid-Carlson, president of EDC Associates.

Reid-Carlson recommends delaying the launch date by several years and making another tweak: reducing the proposed target for system reliability, which would scale back the amount of power generation needed to backstop renewable sources.

"You could get a result in the capacity market that would give a similar cost to consumers that the [deregulated] energy-only market design would have done otherwise," he said.

"You could have a better risk profile associated with the capacity market that would serve consumers better through lower cost, lower price volatility, and it would serve generators better by giving them better access to capital at lower costs."

The UCP government did not respond to a request for comment.

 

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