Renewables to be excluded from budget cuts

By Associated Press


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Colorado House Speaker Terrance Carroll likens lawmakers' work this session to sometimes-painful surgery.

"We're cutting past the bone. We're cutting bone marrow," Carroll, a Denver Democrat, said of the $1.5 billion gap in next fiscal year's $18 billion budget.

"Bone marrow is where the body gets immunity. You limit the body's ability to heal itself. But we have to go there."

As they begin their 120-day session, legislators will take a second look at the public schools budget, the state bureaucracy, and even tax credits that could help carry Colorado out of recession.

Gov. Bill Ritter has proposed a $260 million cut in funding for kindergarten through 12th-grade schools. He also wants to raise $312 million by charging sales tax on candy and soda and by eliminating or suspending a dozen tax breaks.

Senate President Brandon Shaffer, D-Longmont, said lawmakers could start by voting to rescind $110 million that they had set aside for schools. Lawmakers agreed last year to include the money for schools in the budget — but hold on to it to see how the economy, and state revenues fared after they adjourned.

Shaffer said he wants to find ways to increase jobs through retraining and requiring utilities to get more power from renewable energy. Right now, investor-owned utilities must obtain 20 percent of their power from renewable sources by 2020.

"The road out of this is an economic recovery and an economic recovery starts with a good job," he said.

Senate Minority Leader Josh Penry, R-Fruita, is introducing a bill to combine state agencies and offer financial incentives to school districts to cut costs. His bill would abolish the position of executive director of the Department of Local Affairs and give those responsibilities to the lieutenant governor, whose only real duty is overseeing Indian affairs.

"We cannot get our fiscal house in order without getting rid of the redundancy and excess in state government. This bill will do just that," Penry said.

Ritter told lawmakers he wants to eliminate 13 tax breaks and credits to balance this year's budget. Some lawmakers say there are 87 other tax breaks that can be considered, including conservation tax easements.

Under a plan Ritter submitted to legislators, some business-specific tax breaks would be eliminated or suspended, including a sales tax exemption on agricultural compounds and bull semen, worth $1.5 million a year.

Ritter's call to limit conservation easement credits for three years would raise $13 million annually.

House Minority Leader Mike May, R-Parker, said it makes no sense to offer tax breaks to farmers and ranchers not to build on their property because few people can afford to spend money on development in the current economy.

Environmentalists say the tax credit is one of the only meaningful tools available in Colorado to promote private land conservation and reduce the impact of population growth on habitat and species.

Ritter also plans to make promotion of renewable energy a key issue again this year. Environmentalists say that will help the economy.

"This session is about improving the lives of people across Colorado. Strengthening our renewable electricity standard is exactly what we need to create jobs in these tough economic times," said Pam Kiely of Environment Colorado.

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China's Path to Carbon Neutrality

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

 

Key Points

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

✅ Harmonizes pricing and cross-provincial electricity trading.

✅ Boosts renewable integration with storage and smart grids.

✅ Improves dispatch efficiency, reliability, and emissions cuts.

 

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

China's Commitment to Carbon Neutrality

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

Challenges in China's Energy Landscape

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

Role of a Unified Power Market

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

Benefits of a Unified Power Market

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

Policy and Regulatory Considerations

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

International Collaboration and Leadership

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

Conclusion

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

 

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Tunisia invests in major wind farm as part of longterm renewable energy plan

Sidi Mansour Wind Farm Tunisia will deliver 30 MW as an IPP, backed by UPC Renewables and CFM, under a STEG PPA, supporting 2030 renewable energy targets, grid connection, job creation, and CO2 emissions reduction.

 

Key Points

A 30 MW wind IPP by UPC and CFM in Sidi Mansour, supplying STEG and advancing Tunisia's 2030 renewable target.

✅ 30 MW capacity under STEG PPA, first wind IPP in Tunisia

✅ Co-developed by UPC Renewables and Climate Fund Managers

✅ Cuts CO2 by up to 56,645 t and creates about 100 jobs

 

UPC Renewables (UPC) and the Climate Fund Managers (CFM) have partnered to develop a 30 megawatt wind farm in Sidi Mansour, Tunisia, which, amid regional wind expansion efforts, will help the country meet its 30% renewable energy target by 2030.

Tunisia announced the launch of its solar energy plan in 2016, with projects like the 10 MW Tunisian solar park aiming to increase the role of renewables in its electricity generation mix ten-fold to 30%,

This Sidi Mansour Project will help Tunisia meet its goals, reducing its reliance on imported fossil fuels and, mirroring 90 MW Spanish wind build milestones, demonstrating to the world that it is serious about further development of renewable energy investment.

“Chams Enfidha”, the first solar energy station in Tunisia with a capacity of 1 megawatt and located in the Enfidha region. (Ministry of Energy, Mines and Energy Transition Facebook page)

This project will also be among the country’s first Independent Power Producers (IPP). CFM is acting as sponsor, financial adviser and co-developer on the project, in a landscape shaped by IRENA-ADFD funding in developing countries, while UPC will lead the development with its local team. The team will be in charge of permitting, grid connection, land securitisation, assessment of wind resources, contract procurement and engineering.

UPC was selected under the “Authorisation Scheme” tender for the project in 2016, similar to utility-scale developments like a 450 MW U.S. wind farm, and promptly signed a power purchase agreement with Société Tunisienne Electricité et du Gaz (STEG).

Brian Caffyn, chairman of UPC Group, said: “We can start the construction of the Sidi Mansour wind farm in 2020, helping stimulate the Tunisian economy, create local jobs and a social plan for local communities while respecting international environmental protection guidelines.”

Sebastian Surie, CFM’s regional head of Africa, added: “CFM is thrilled to partner with a leading wind developer in the Sidi Mansour Wind Project to assist Tunisia in meeting its renewable energy goals. As potentially the first Wind IPP in Tunisia, this Project will be a testament to how CI1’s full life-cycle financing solution can unlock investment in renewable energy in new markets, as seen in an Irish offshore wind project globally.”

The project will not only provide electricity, but also reduce CO2 emissions by up to 56,645 tonnes and create some 100 new jobs.

Wind turbine in El Haouaria, Tunisia, highlighting advances such as a huge offshore wind turbine that can power 18,000 homes. (Reuters)

Tunisia’s first power station, “Chams Enfidha,” inaugurated at the beginning of July, has a capacity of one megawatt, with an estimated cost of 3.3 million dinars ($1.18 million). The state invested 2.3 million dinars into the project ($820,000), with the remaining 1 million dinars ($360,000) provided by a private investor.

 

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Manitoba Hydro's burgeoning debt surpasses $19 billion

Manitoba Hydro Debt Load surges past $19.2B as the Crown corporation faces shrinking net income, restructuring costs, and PUB rate decisions, driven by Bipole III, Keeyask construction, aging infrastructure, and rising interest rate risks.

 

Key Points

Manitoba Hydro Debt Load refers to the utility's escalating borrowings exceeding $19B, pressuring rates and finances.

✅ Debt rose to $19.2B; projected near $25B within five years.

✅ Major drivers: Bipole III, Keeyask, aging assets, restructuring.

✅ Rate hikes sought; PUB approved 3.6% vs 7.9% request.

 

Manitoba Hydro's debt load now exceeds $19 billion as the provincial Crown corporation grapples with a shrinking net income amid ongoing efforts to slay costs.

The utility's annual report, to be released publicly on Tuesday, also shows its total consolidated net income slumped from $71 million in 2016-2017 to $37 million in the last fiscal year, mirroring a Hydro One profit drop as electricity revenue fell.

It said efforts to restructure the utility and reduce costs are partly to blame for the $34 million drop in year-over-year income.

These earnings come nowhere close, however, to alleviating Hydro's long-term debt problem, a dynamic also seen in a BC Hydro deferred costs report about customer exposure. The figure is pegged at $19.2 billion this fiscal year, up from $16.1 billion the previous year and $14.2 billion in 2016.

The utility projects its debt will grow to about $25 billion in the next five years. Its largest expenses include finishing the Bipole III line, working on the Keeyask Generating System that is halfway done and rebuilding aging wood poles and substations, the report said.

"This level of debt increases the potential financial exposure from risks facing the corporation and is a concern for both

the corporation and our customers who may be exposed to higher rate increases in the event of rising interest rates, a prolonged drought or a major system failure," outgoing president and CEO Kelvin Shepherd wrote.

The income drop is primarily a result of the $50 million spent in the form of restructuring charges associated with the utility's efforts to streamline the organization and drive down costs, amid NDP criticism of Hydro changes related to government policy.

Those efforts included the implementation of buyouts for employees through what the utility dubbed its "voluntary departure program."

Among the changes, Manitoba Hydro reduced its workforce by 800 employees, which is expected to save the utility over $90 million per year. It also reduced its management positions by 26 per cent, a Monday news release said, while Hydro One leadership upheaval in Ontario drove its shares down during comparable governance turmoil.

To improve its financial situation, Hydro has applied for rate increases, even as the Consumers Coalition pushes to have the proposal rejected. The Public Utilities Board offered a 3.6 per cent average rate hike, instead of the 7.9 per cent jump the utility asked for.

In May, when the PUB rendered its decision, it made several recommendations as an alternative to raising rates, including receiving a share of carbon tax revenue and asking the government to help pay for Bipole III.

Hydro is projecting a net income of $70 million for 2018-2019, which includes the impact of the recent rate increase. That total reflects an approximately 20 per cent reduction in net income from 2017-18 after restructuring costs are calculated.

 

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Ottawa sets out to protect its hydro heritage

Ottawa Hydro Substation Heritage Designation highlights Hydro Ottawa's 1920s architecture, Art Deco facades, and municipal utility history, protecting key voltage-reduction sites in Glebe, Carling-Merivale, Holland, King Edward, and Old Ottawa South.

 

Key Points

A city plan to protect Hydro Ottawa's 1920s substations for architecture, utility role, and civic electrical heritage.

✅ Protects five operating voltage-reduction sites citywide

✅ Recognizes Art Deco and early 20th century utility architecture

✅ Allows emergency demolition to ensure grid safety

 

The city of Ottawa is looking to designate five hydro substations built nearly a century ago as heritage structures, a move intended to protect the architectural history of Ottawa's earliest forays into the electricity business, even as Ottawa electricity consumption has shifted in recent years.

All five buildings are still used by Hydro Ottawa to reduce the voltage coming from transmission lines before the electricity is transmitted to homes and businesses, and when severe weather causes outages, Sudbury Hydro crews work to reconnect service across communities.

Electricity came to Ottawa in 1882 when two carbon lamps were installed on LeBreton Flats, heritage planner Anne Fitzpatrick told the city's built heritage subcommittee on Tuesday. It became a lucrative business, and soon a privately owned monopoly that drew public scrutiny similar to debates over retroactive charges in neighboring jurisdictions.

In 1905, city council held a special meeting to buy the electrical company, which led to a dramatic drop in electricity rates for residents, a contrast with recent discussions about peak hydro rates for self-isolating customers.

The substations are now owned by Hydro Ottawa, which agreed to the heritage designations on the condition it not be prevented from emergency demolitions if it needs to address incidents such as damaging storms in Ontario while it works to "preserve public safety and the continuity of critical hydro electrical services."

Built in 1922, the substation at the intersection of Glebe and Bronson avenues was the first to be built by the new municipal electrical department, long before modern battery storage projects became commonplace on Ontario's grid.

The largest of the substations being protected dates back to 1929 and is found at the corner of Carling Avenue and Merivale Road. It was built to accommodate a growing population in areas west of downtown including Hintonburg and Mechanicsville.

The substation on Holland Avenue near the Queensway is different from the others because it was built in 1924 to serve the Ottawa Electric Railway Company. The streetcar company operated from 1891 to 1959, and urban electrical infrastructure can face failures such as the Hydro-Québec manhole fire that left thousands without power.

This substation on King Edward Avenue was built in 1931 and designed by architect William Beattie, who also designed York Street Public School in Lowertown and the substation on Carling Avenue. 

The last substation to be built in a 'bold and decorative style' is at 39 Riverdale Ave. in Old Ottawa South, according to city staff. It was designed in an Art Deco style by prominent architect J. Albert Ewart, who was also behind the Civic Hospital and nearby Southminster Church on Bank Street.

 

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Canada to spend $2M on study to improve Atlantic region's electricity grid

Atlantic Clean Power Superhighway outlines a federally backed transmission grid upgrade for Atlantic Canada, adding 2,000 MW of renewable energy via interprovincial ties, improved hydro access from Quebec and Newfoundland and Labrador, with utility-regulator funding.

 

Key Points

A federal-provincial plan upgrading Atlantic Canada's grid to deliver 2,000 MW of renewables via interprovincial links.

✅ $2M technical review to rank priority transmission projects

✅ Target: add 2,000 MW renewable power to Atlantic grid

✅ Cost-sharing by utilities, regulators, and federal-provincial funding

 

The federal government will spend $2 million on an engineering study to improve the Atlantic region's electricity grid.

The study was announced Friday at a news conference held by 10 federal and provincial politicians at a meeting of the Atlantic Growth Strategy in Halifax, which includes ongoing regulatory reform efforts for cleaner power in Atlantic Canada.

The technical review will identify the most important transmission projects including inter-provincial ties needed to move electricity across the region.

Nova Scotia Premier Stephen McNeil said the results are expected in July.

Provinces will apply to the federal government for federal funding to build the infrastructure. Utilities in each province will be expected to pay some portion of the cost by applying to respective regulators, but what share falls to ratepayers is not known.

​Federal Intergovernmental Affairs Minister Dominic LeBlanc characterized the grid improvements as something that will cost hundreds of millions of dollars.

He said the study was the first step toward "a clean power superhighway across the region.

"We have a historic opportunity to quickly get to work on upgrading ultimately a whole series of transmission links of inter-provincial ties. That's something that the government of Canada would be anxious to work with in terms of collaborating with the provinces on getting that right."

Premier McNeil referred specifically to improving hydro access from Quebec and Newfoundland and Labrador.

For context, a massive cross-border hydropower line to New York is planned, illustrating the scale of projects under consideration.

 

Goal of 2,000 megawatts

McNeil said the goal was to bring an additional 2,000 megawatts of renewable electricity into the region.

"I can't stress to you enough how critical this will be for the future economic success and stability of Atlantic Canada, especially as Atlantic grids face intensifying storms," he said.

Federal Immigration Minister Ahmed Hussen also announced a pilot project to attract immigrant workers will be extended by two years to the end of 2021.

International graduate students will be given 24 months to apply under the program — a one-year increase.

 

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BC Hydro says three LNG companies continue to demand electricity, justifying Site C

BC Hydro LNG Load Forecast signals rising electricity demand from LNG Canada, Woodfibre, and Tilbury, aligning Site C dam capacity with BCUC review, hydroelectric supply, and a potential fourth project in feasibility study British Columbia.

 

Key Points

BC Hydro's projection of LNG-driven power demand, guiding Site C capacity, BCUC review, and grid planning.

✅ Includes LNG Canada, Woodfibre, and Tilbury load requests

✅ Aligns Site C hydroelectric output with industrial electrification

✅ Notes feasibility study for a fourth LNG project

 

Despite recent project cancellations, such as the Siwash Creek independent power project now in limbo, BC Hydro still expects three LNG projects — and possibly a fourth, which is undergoing a feasibility study — will need power from its controversial and expensive Site C hydroelectric dam.

In a letter sent to the British Columbia Utilities Commission (BCUC) on Oct. 3, BC Hydro’s chief regulatory officer Fred James said the provincially owned utility’s load forecast includes power demand for three proposed liquefied natural gas projects because they continue to ask the company for power.

The letter and attached report provide some detail on which of the LNG projects proposed in B.C. are more likely to be built, given recent project cancellations.

The documents are also an attempt to explain why BC Hydro continues to forecast a surge in electricity demand in the province, as seen in its first call for power in 15 years driven by electrification, even though massive LNG projects proposed by Malaysia’s state owned oil company Petronas and China’s CNOOC Nexen have been cancelled.

An explanation is needed because B.C.’s new NDP government had promised the BCUC would review the need for the $9-billion Site C dam, which was commissioned to provide power for the province’s nascent LNG industry, amid debates over alternatives like going nuclear among residents. The commission had specifically asked for an explanation of BC Hydro’s electric load forecast as it relates to LNG projects by Wednesday.

The three projects that continue to ask BC Hydro for electricity are Shell Canada Ltd.’s LNG Canada project, the Woodfibre LNG project and a future expansion of FortisBC’s Tilbury LNG storage facility.

None of those projects have officially been sanctioned but “service requests from industrial sector customers, including LNG, are generally included in our industrial load forecast,” the report noted, even as Manitoba Hydro warned about energy-intensive customers in a separate notice.

In a redacted section of the report, BC Hydro also raises the possibility of a fourth LNG project, which is exploring the need for power in B.C.

“BC Hydro is currently undertaking feasibility studies for another large LNG project, which is not currently included in its Current Load Forecast,” one section of the report notes, though the remainder of the section is redacted.

The Site C dam, which has become a source of controversy in B.C. and was an important election issue, is currently under construction and, following two new generating stations recently commissioned, is expected to be in service by 2024, a timeline which had been considered to provide LNG projects with power by the time they are operational.

BC Hydro’s letter to the BCUC refers to media and financial industry reports that indicate global LNG markets will require more supply by 2023.

“While there remains significant uncertainty, global LNG demand will continue to grow and there is opportunity for B.C. LNG,” the report notes.

 

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