Legal challenge may stall wind projects

By Toronto Star


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One day in the summer of 2008, Ian Hanna went to an open house in Prince Edward County about the possible health effects on wind turbines on people who live near them.

He came away worried.

His worries grew to the point that later this month his lawyer will be in a Toronto courtroom, arguing a case that could put further wind power development in Ontario on hold.

That could put a crimp in OntarioÂ’s just-announced long-term energy plan, which foresees a significant expansion of wind-generated electricity.

Hanna is challenging to a provincial regulation that requires large wind turbines to be set back at least 550 metres from any residence.

“There appears to be significant scientific uncertainty about the question of an appropriate setback distance between industrial wind turbines and peoples’ homes,” says Hanna’s lawyer, Eric Gillespie.

That, he says runs against the “precautionary principle.”

“The precautionary principle simply says: Until that uncertainty is resolved, we should not be proceeding with further development.”

Wind opponents say the turbines can cause sleep disorders, hearing problems and a host of associated health effects.

“The fact that the government is setting these things back already more than half a kilometers demonstrates that the government is aware there is a risk,” says Gillespie.

Hanna moved to Prince Edward County from Richmond Hill in 2003 and runs a wine importing business from his home on Big Island, just off the shore.

After he bought his property, a developer proposed a wind project on the island and Hanna started asking questions about the impact on local residents. The project was ultimately withdrawn because of a nearby military airstrip.

“It became apparent to me there were a lot of unknowns, and that worried me very much,” he said in an interview.

That Thanksgiving, he started circulating a petition. In his travels, he met Dr. Robert McMurtry, a former dean of medicine at the University of Western Ontario, who also owns property in Prince Edward County.

McMurtry shared HannaÂ’s concerns and had the professional heft to command attention. McMurtry has given expert evidence on the case, along with two other doctors.

A spokeswoman for OntarioÂ’s environment ministry said the ministry cannot comment on the case because of the imminent court date.

But last May – months after Hanna had filed his challenge – Ontario’s chief medical officer of health Arlene King published a report on wind turbines.

“The scientific evidence available to date does not demonstrate a direct causal link between wind turbine noise and adverse health effects,” the report says.

Although the sound may be “annoying,” they are “well below the pressure sound levels at which known health effects occur.”

Hanna is not persuaded. He says he has talked to many people whose health has been ruined by nearby turbines.

“I’ve spent time with people who have suffered unbelievably from living too close to these things,” he said in an interview.

“Their lives have become a living hell. I think maybe sleep deprivation does this to people. They’re in such terrible condition. I could never walk away from it now.”

He figures he needs $250,000 to see the case through, and has about $200,000 now – partly his own money, partly donations. None of the money, he says, comes from companies competing with wind power producers in the energy market.

In a written reply to questions, the Canadian Wind Energy Association says Ontario’s 550-metre setback is “clearly among the more stringent setback requirements for wind turbines in North America.”

If Hanna’s action succeeds, it “would increase uncertainty in the wind energy project approval process and potentially have a significant negative impact on the workers and communities currently benefiting and poised to benefit from wind energy development in the province,” the association says.

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Why Fort Frances wants to build an integrated microgrid to deliver its electricity

Fort Frances Microgrid aims to boost reliability in Ontario with grid-connected and island modes, Siemens feasibility study, renewable energy integration, EV charging expansion, and resilience modeled after First Nations projects and regional biomass initiatives.

 

Key Points

A community microgrid in Fort Frances enabling grid and island modes to improve reliability and integrate renewables.

✅ Siemens-led feasibility via FedNor funding

✅ Grid-connected or islanded for outage resilience

✅ Integrates renewables, EV charging, and industry growth

 

When the power goes out in Fort Frances, Ont., the community may be left in the dark for hours.

The hydro system's unreliability — caused by its location on the provincial power grid — has prompted the town to seek a creative solution: its own self-contained electricity grid with its own source of power, known as a microgrid. 

Located more than 340 kilometres west of Thunder Bay, Ont., on the border of Minnesota, near the Great Northern Transmission Line corridor, Fort Frances gets its power from a single supply point on Ontario's grid. 

"Sometimes, it's inevitable that we have to have like a six- to eight-hour power outage while equipment is being worked on, and that is no longer acceptable to many of our customers," said Joerg Ruppenstein, president and chief executive officer of Fort Frances Power Corporation.

While Ontario's electrical grid serves the entire province, and national efforts explore macrogrids, a microgrid is contained within a community. Fort Frances hopes to develop an integrated, community-based electric microgrid system that can operate in two modes:

  • Grid-connected mode, which means it's connected to the provincial grid and informed by western grid planning approaches
  • Island mode, which means it's disconnected from the provincial grid and operates independently

The ability to switch between modes allows flexibility. If a storm knocks down a line, the community will still have power.

The town has been given grant funding from the Federal Economic Development Agency for Northern Ontario (FedNor), echoing smart grid funding in Sault Ste. Marie initiatives, for the project. On Monday night, council voted to grant a request for proposal to Siemens Canada Limited to conduct a feasibility study into a microgrid system.

The study, anticipated to be completed by the end of 2023 or early 2024, will assess what an integrated community-based microgrid system could look like in the town of just over 7,000 people, said Faisal Anwar, chief administrative officer of Fort Frances. A timeline for construction will be determined after that. 

The community is still reeling from the closure of the Resolute Forest Products pulp and paper mill in 2014 and faces a declining population, said Ruppenstein. It's hoped the microgrid system will help attract new industry to replace those lost workers and jobs, drawing on Manitoba's hydro experience as a model.

This gives the town a competitive advantage.

"If we were conceivably to attract a larger industrial player that would consume a considerable amount of energy, it would result in reduced rates for everyone…we're the only utility really in Ontario that can offer that model," Ruppenstein said.

The project can also incorporate renewable energy like solar or wind power, as seen in B.C.'s clean energy shift efforts, into the microgrid system, and support the growth of electric vehicles, he said. Many residents fill their gas tanks in Minnesota because it's cheaper, but Fort Frances has the potential to become a hub for electric vehicle charging.

A few remote First Nations have recently switched to microgrid systems fuelled by green energy, including Gull Bay First Nation and Fort Severn First Nation. These are communities that have historically relied on diesel fuel either flown in, which is incredibly expensive, or transported via ice roads, which are seeing shorter seasons each year.

Natural Resources Minister Jonathan Wilkinson was in Thunder Bay, Ont., to announce $35 million for a biomass generation facility in Whitesand First Nation, complementing federal funding for the Manitoba-Saskatchewan transmission line elsewhere in the region.

 

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Senate Democrats push for passage of energy-related tax incentives

Senate Renewable Energy Tax Credits face Finance Committee scrutiny, with Democrats urging action on tax extenders, clean energy incentives, and climate policy, while Republicans cite prior wins in wind, biodiesel, and EV credits.

 

Key Points

Legislative incentives debated in the Senate Finance Committee to extend and align clean energy tax benefits.

✅ Democrats press hearings and action on energy tax policy

✅ Focus on clean energy, EVs, wind, biodiesel, and resilience

✅ Grassley cites prior extenders; disputes push for bigger subsidies

 

A group of 27 Democratic senators is calling for action in the Senate Finance Committee on extending energy-related tax credits and examining new tax proposals, especially those that incentivize renewable energy projects and align with FERC action on aggregated DERs across the grid.

Sen. Ron Wyden, D-Ore., the ranking Democrat on the Senate Finance Committee, who recently introduced a wildfire-resilient grid bill with Sen. Merkley, led the group of Democrats in writing a letter Tuesday to Sen. Charles Grassley, R-Iowa, who chairs the committee.

“Despite numerous opportunities, including in the recent tax extenders package, the Finance Committee has failed to take action on the dozens of energy tax proposals pending before it,” they wrote. “It is critical that the Committee move to address these issues in a timely manner, along with much needed policy changes that heed warnings on regulatory rollbacks to combat the damage and growing dangers caused by global climate change.”

The number of Americans ages 65 and over is projected to nearly double by 2060. And most would prefer to age in place and hiresenior caregivers if needed.

They pointed out that the Senate Finance Committee hasn’t held a single hearing on energy tax policy during the previous congressional term, and has yet to hold one in the current one.

“The sole energy tax-related recommendation of the Committee’s temporary policy task forces was ignored in the tax extender legislation passed in December 2019, along with nearly all proposals put forward in members’ legislation this Congress,” they wrote. “This Committee must fulfill its role in examining members’ energy tax proposals and in bolstering our nation’s efforts to combat climate change, including a clean electricity standard approach that sets firm targets.”

They noted that In 2019, the global average temperature was the second highest ever recorded and the past decade was the hottest ever. The lawmakers pointed to raging wildfires and increased flooding in the western part of the U.S., as well as challenges in California’s power system during the transition, causing unprecedented destruction over the past several years. They called for tax incentives for renewable energy to help combat climate change.

“Gaps in the tax code have disadvantaged complementary technologies that could improve climate resiliency and provide additional emissions reductions,” they wrote. “While power sector emissions continue to decrease, emissions from transportation, heavy industry and agriculture have stayed level or increased over the past 10 years, even amid $5 gas not spurring a green shift in consumer behavior. The United States is not on pace to meet its international climate commitments, to say nothing of the reductions necessary to stave off the worst potential outcomes of global warming.”

Grassley reacted to the letter, noting that he had worked to get tax extenders legislation passed, even as some states consider bans on clean energy use by utilities. "I begged Democrats for a year to help me get an extenders package passed, about half of which were green energy policies, so this rings hollow," he said in a statement Tuesday. "We wouldn’t have a wind energy credit or a biodiesel credit but for me, let alone an extension of either. Democrats were holding up these green energy provisions in an attempt to get a big expansion of taxpayer subsidies for rich Tesla owners."

 

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Announces Completion of $16 Million Project to Install Smart Energy-Saving Streetlights in Syracuse

Smart Street Lighting NY delivers Syracuse-wide LED retrofits with smart controls, Wi-Fi, and sensors, saving $3.3 million annually and cutting nearly 8,500 tons of greenhouse gases, improving energy efficiency, safety, and maintenance.

 

Key Points

A NYPA-backed program replacing streetlights with LED and controls to cut costs and emissions across New York by 2025.

✅ Syracuse replaced 17,500 fixtures with LED and smart controls.

✅ Saves $3.3M yearly; cuts 8,500 tons CO2e; improves safety.

✅ NYPA financing and maintenance support enable Smart City sensors.

 

Governor Andrew M. Cuomo today announced the completed installation of energy-efficient LED streetlights throughout the City of Syracuse as part of the Governor's Smart Street Lighting NY program. Syracuse, through a partnership with the New York Power Authority, replaced all of its streetlights with the most comprehensive set of innovative Smart City technologies in the state, saving the city $3.3 million annually and reducing greenhouse gas emissions by nearly 8,500 tons a year--the equivalent of taking more than 1,660 cars off the road. New York has now replaced more than 100,000 of its streetlights with LED fixtures, reflecting broader state renewable ambitions across the country, a significant milestone in the Governor's goal to replace at least 500,000 streetlights with LED technology by 2025 under Smart Street Lighting NY.

Today's announcement directly supports the goals of the Climate Leadership and Community Protection Act, the most aggressive climate change law in the nation, through the increased use of energy efficiency, exemplified by Seattle City Light's program that helps customers reduce bills, to annually reduce electricity demand by three percent--equivalent to 1.8 million New York households--by 2025.

"As we move further into the 21st century, it's critical we make the investments necessary for building smarter, more sustainable communities and that's exactly what we are doing in Syracuse," Governor Cuomo said. "Not only is the Smart Street Lighting NY program reducing the city's carbon footprint, but millions of taxpayer dollars will be saved thanks to a reduction in utility costs. Climate change is not going away and it is these types of smart, forward-thinking programs which will help communities build towards the future."

The more than $16 million cutting-edge initiative, implemented by NYPA, includes the replacement of approximately 17,500 streetlights throughout the city with SMART, LED fixtures, improving lighting quality and neighborhood safety while saving energy and maintenance costs. The city's streetlights are now outfitted with SMART controls that provide programmed dimming ability, energy metering, fault monitoring, and additional tools for emergency services through on-demand lighting levels.

"The completion of the replacement of LED streetlights in Syracuse is part of our overall efforts to upgrade more than 100,000 streetlights across the state," Lieutenant Governor Kathy Hochul said. "The new lights will save the city $3.3 million annually, helping to reduce cost for energy and maintenance and reducing greenhouse gas emissions. These new light fixtures will also help to improve safety and provide additional tools for emergency services. The conversion of streetlights statewide to high-tech LED fixtures will help local governments and taxpayers save money, while increasing efficiency and safety as we work to build back better and stronger for the future."

NYPA provided Syracuse with a $500,000 Smart Cities grant for the project. The city utilized the additional funding to support special features on the streetlights that demonstrate the latest in Smart City technologies, focused on digital connectivity, environmental monitoring and public safety. These features are expected to be fully implemented in early 2021.

Connectivity: The city is planning to deploy exterior Wi-Fi at community centers and public spaces, including in neighborhoods in need of expanded digital network services.

Environmental Monitoring: Ice and snow detection systems that assist city officials in pinpointing streets covered in ice or snow and require attention to prevent accidents and improve safety. The sensors provide data that can tell the city where salt trucks and plows are most needed instead of directing trucks to drive pre-determined routes. Flood reporting and monitoring systems will also be installed.

Public Safety and Property Protection: Illegal dumping and vandalism detection sensors will be installed at strategic locations to help mitigate these disturbances. Vacant house monitoring will also be deployed by the city. The system can monitor for potential fires, detect motion and provide temperature and humidity readings of vacant homes. Trash bin sensors will be installed at various locations throughout the city that will detect when a trash bin is full and alert local officials for pick-up.

NYPA President and CEO Gil C. Quiniones said, "Syracuse is truly a pioneer in its exploration of using SMART technologies to improve public services and the Power Authority was thrilled to partner with the city on this innovative initiative. Helping our customers bring their streetlights into the future further advances NYPA's reputation as a first-mover in the energy-sector."

New York State Public Service Commission Chair John B. Rhodes said, "Governor Cuomo signed legislation making it easier for municipalities to purchase and upgrade their street lighting systems. With smart projects like these, cities such as Syracuse can install state-of-the-art, energy efficient lights and take control over their energy use, lower costs to taxpayers and protect the environment."

Mayor Ben Walsh said, "Governor Cuomo and the New York Power Authority have helped power Syracuse to the front of the pack of cities in the U.S., leveraging SMART LED lighting to save money and make life better for our residents. Because of our progress, even in the midst of a global pandemic, the Syracuse Surge, our strategy for inclusive growth in the New Economy, continues to move forward. Syracuse and all of New York State are well positioned to lead the nation and the world because of NYPA's support and the Governor's leadership."

To date, NYPA has installed more than 50,000 LED streetlights statewide, with more than 115,000 lighting replacements currently implemented. Some of the cities and towns that have already converted to LED lights, in collaboration with NYPA, include Albany, Rochester, and White Plains. In addition, the Public Service Commission, whose ongoing retail energy markets review informs consumer protections, in conjunction with investor-owned utilities around the state, has facilitated the installation of more than 50,000 additional LED lights.

The NYPA Board of Trustees, in support of the Smart Street Lighting NY program, authorized at its September meeting the expenditure of $150 million over the next five years to secure the services of Candela Systems in Hawthorne, D&M Contracting in Elmsford and E-J Electric T&D in Wallingford, Connecticut, while in other regions, city officials take a clean energy message to Georgia Power and the PSC to spur utility action. All three firms will work on behalf of NYPA to continue to implement LED lighting replacements throughout New York State to meet the Governor's goal of 500,000 LED streetlights installed by 2025.

Smart Street Lighting NY: Energy Efficient and Economically Advantageous

NYPA is working with cities, towns, villages and counties throughout New York to fully manage and implement a customer's transition to LED streetlight technology. NYPA provides upfront financing for the project, and during emergencies, New York's utility disconnection moratorium helps protect customers while payments to NYPA are made in the years following from the cost-savings created by the reduced energy use of the LED streetlights, which are 50 to 65 percent more efficient than alternative street lighting options.

Through this statewide street lighting program, NYPA's government customers are provided a wide-array of lighting options to help meet their individual needs, including specifications on the lights to incorporate SMART technology, which can be used for dozens of other functions, such as cameras and other safety features, weather sensors, Wi-Fi and energy meters.

To further advance the Governor's effort to replace existing New York street lighting, in 2019, NYPA launched a new maintenance service to provide routine and on-call maintenance services for LED street lighting fixtures installed by NYPA throughout the state, and during the COVID-19 response, New York and New Jersey suspended utility shut-offs to protect customers and maintain essential services. The new service is available to municipalities that have engaged NYPA to implement a LED street lighting conversion and have elected to install an asset management controls system on their street lighting system, reducing the number of failures and repairs needed after installation is complete.

To learn more about the Smart Street Lighting NY program, visit the program webpage on NYPA's website.

 

New York State's Nation-Leading Climate Plan

Governor Cuomo's nation-leading climate plan is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State builds back better as it recovers from the COVID-19 pandemic. Enshrined into law through the CLCPA, New York is on a path to reach its mandated goals of economy wide carbon neutrality and achieving a zero-carbon emissions electricity sector by 2040, similar to Ontario's clean electricity regulations that advance decarbonization, faster than any other state. It builds on New York's unprecedented ramp-up of clean energy including a $3.9 billion investment in 67 large-scale renewable projects across the state, the creation of more than 150,000 jobs in New York's clean energy sector, a commitment to develop over 9,000 megawatts of offshore wind by 2035, and 1,800 percent growth in the distributed solar sector since 2011. New York's Climate Action Council is working on a scoping plan to build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 40 percent of the benefits of clean energy investments benefit disadvantaged communities, and advancing progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 TBtus.

 

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Manitoba Hydro seeks unpaid days off to trim costs during pandemic

Manitoba Hydro unpaid leave plan offers unpaid days off to curb workforce costs amid COVID-19, avoiding temporary layoffs and pay cuts, targeting $5.7M savings through executive, manager, and engineer participation, with union options under discussion.

 

Key Points

A cost-saving measure offering unpaid days off to avert layoffs and pay cuts, targeting $5.7M savings amid COVID-19.

✅ 3 unpaid days for executives, managers, engineers

✅ Targets $5.7M total; $1.4M from non-union staff

✅ Avoids about 240 layoffs over a four-month period

 

The Manitoba government's Crown energy utility is offering workers unpaid days off as an alternative to temporary layoffs or pay cuts, even as residential electricity use rises due to more working from home.

In an email to employees, Manitoba Hydro president Jay Grewal says executives, managers, and engineers will take three unpaid days off before the fiscal year ends next March.

She says similar options are being discussed with other employee groups, which are represented by unions, as the Saskatchewan COVID-19 crisis reshaped workforces across the Prairies.

The provincial government ordered Manitoba Hydro to reduce workforce costs during the COVID-19 pandemic, as some power operators considered on-site staffing plans, and at one point the utility said it was looking at 600 to 700 temporary layoffs.

The organization said it’s looking for targeted savings of $5.7 million, down from $11 million previously estimated, while peers like BC Hydro’s Site C began reporting COVID-19 updates.

A spokesperson for Manitoba Hydro said non-unionized staff taking three days of unpaid leave will save $1.4 million of the $5.7 million savings.

“Three days of unpaid leave for every employee would eliminate layoffs entirely,” the spokesperson said in an email. “For comparison, approximately 240 layoffs would have to occur over a four-month period, while measures like Alberta's worker transition fund aim to support displaced workers, to achieve savings of $4.3 million.”

Grewal says the unpaid days off were a preferred option among the executives, managers, and engineers in an industry that recently saw a Hydro One worker injury case.

She says unions representing the other workers have been asked to respond by next Wednesday.

 

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Ontario to Rely on Battery Storage to Meet Rising Energy Demand

Ontario Battery Energy Storage anchors IESO strategy, easing peak demand and boosting grid reliability. Projects like Oneida BESS (250MW) and nearly 3GW procurements integrate renewables, wind and solar, enabling flexible, decarbonized power.

 

Key Points

Provincewide grid batteries help IESO manage peaks, integrate renewables, and strengthen reliability across Ontario.

✅ IESO forecasts 1,000MW peak growth by 2026

✅ Oneida BESS adds 250MW with 20-year contract

✅ Nearly 3GW storage procured via LT1 and other RFPs

 

Ontario’s electricity grid is facing increasing demand amid a looming supply crunch, prompting the province to invest heavily in battery energy storage systems (BESS) as a key solution. The Ontario Independent Electricity System Operator (IESO) has highlighted that these storage technologies will be crucial for managing peak demand in the coming years.

Ontario's energy demands have been on the rise, driven by factors such as population growth, electric vehicle manufacturing, data center expansions, and heavy industrial activity. The IESO's latest assessment, and its work on enabling storage, covering the period from April 2025 to September 2026, indicates that peak demand will increase by approximately 1,000MW between the summer of 2025 and 2026. This forecasted rise in energy use is attributed to the acceleration of various sectors within the province, underscoring the need for reliable, scalable energy solutions.

A significant portion of this solution will be met by large-scale energy storage projects. Among the most prominent is the Oneida BESS, a flagship project that will contribute 250MW of storage capacity. This project, developed by a consortium including Northland Power and NRStor, will be located on land owned by the Six Nations of the Grand River. Expected to be operational soon, it will play a pivotal role in ensuring grid stability during high-demand periods. The project benefits from a 20-year contract with the IESO, guaranteeing payments that will support its financial viability, alongside additional revenue from participating in the wholesale energy market.

In addition to Oneida, Ontario has committed to acquiring nearly 3GW of energy storage capacity through various procurement programs. The 2023 Expedited Long-Term 1 (LT1) request for proposals (RfP) alone secured 881MW of storage, with additional projects in the pipeline. A notable example is the Hagersville Battery Energy Storage Park, which, upon completion, will be the largest such project in Canada. The success of these procurement efforts highlights the growing importance of BESS in Ontario's energy strategy.

The IESO’s proactive approach to energy storage is not only a response to rising demand but also a step toward decarbonizing the province’s energy system. As Ontario transitions away from traditional fossil fuels, BESS will provide the necessary flexibility to accommodate increasing renewable energy generation, a clean energy solution widely recognized in jurisdictions like New York, particularly from intermittent sources like wind and solar. By storing excess energy during periods of low demand and dispatching it when needed, these systems will help maintain grid stability, and as many utilities see benefits even without mandates, reduce reliance on fossil fuel-based power plants.

Looking ahead, Ontario's energy storage capacity is expected to grow significantly, complemented by initiatives such as the Hydrogen Innovation Fund, with projects from the 2023 LT1 RfP expected to come online by 2027. As more storage resources are integrated into the grid, the province is positioning itself to meet its rising energy needs while also advancing its environmental goals.

Ontario’s increasing reliance on battery energy storage is a clear indication of the province’s commitment to a sustainable and resilient energy future, aligning with perspectives from Sudbury sustainability advocates on the grid's future. With substantial investments in storage technology, Ontario is not only addressing current energy challenges but also paving the way for a cleaner, more reliable energy system in the years to come.

 

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Opinion: Nuclear Beyond Electricity

Nuclear decarbonization leverages low-carbon electricity, process heat, and hydrogen from advanced reactors and SMRs to electrify industry, buildings, and transport, supporting net-zero strategies and grid flexibility alongside renewables with dispatchable baseload capacity.

 

Key Points

Nuclear decarbonization uses reactors to supply low-carbon power, heat, and hydrogen, cutting emissions across industry.

✅ Advanced reactors and SMRs enable high-temperature process heat

✅ Nuclear-powered electrolysis and HTSE produce low-carbon hydrogen

✅ District heating from reactors reduces pollution and coal use

 

By Dr Henri Paillere, Head of the Planning and Economics Studies Section of the IAEA

Decarbonising the power sector will not be sufficient to achieving net-zero emissions, with assessments indicating nuclear may be essential across sectors. We also need to decarbonise the non-power sectors - transport, buildings and industry - which represent 60% of emissions from the energy sector today. The way to do that is: electrification with low-carbon electricity as much as possible; using low-carbon heat sources; and using low-carbon fuels, including hydrogen, produced from clean electricity.
The International Energy Agency (IEA) says that: 'Almost half of the emissions reductions needed to reach net zero by 2050 will need to come from technologies that have not reached the market today.' So there is a need to innovate and push the research, development and deployment of technologies. That includes nuclear beyond electricity.

Today, most of the scenario projections see nuclear's role ONLY in the power sector, despite ongoing debates over whether nuclear power is in decline globally, but increased electrification will require more low-carbon electricity, so potentially more nuclear. Nuclear energy is also a source of low-carbon heat, and could also be used to produce low-carbon fuels such as hydrogen. This is a virtually untapped potential.

There is an opportunity for the nuclear energy sector - from advanced reactors, next-gen nuclear small modular reactors, and non-power applications - but it requires a level playing field, not only in terms of financing today's technologies, but also in terms of promoting innovation and supporting research up to market deployment. And of course technology readiness and economics will be key to their success.

On process heat and district heating, I would draw attention to the fact there have been decades of experience in nuclear district heating. Not well spread, but experience nonetheless, in Russia, Hungary and Switzerland. Last year, we had two new projects. One floating nuclear power plant in Russia (Akademik Lomonosov), which provides not only electricity but district heating to the region of Pevek where it is connected. And in China, the Haiyang nuclear power plant (AP1000 technology) has started delivering commercial district heating. In China, there is an additional motivation to reducing emissions, namely to cut air pollution because in northern China a lot of the heating in winter is provided by coal-fired boilers. By going nuclear with district heating they are therefore cutting down on this pollution and helping with reducing carbon emissions as well. And Poland is looking at high-temperature reactors to replace its fleet of coal-fired boilers and so that's a technology that could also be a game-changer on the industry side.

There have also been decades of research into the production of hydrogen using nuclear energy, but no real deployment. Now, from a climate point of view, there is a clear drive to find substitute fuels for the hydrocarbon fuels that we use today, and multiple new nuclear stations are seen by industry leaders as necessary to meet net-zero targets. In the near term, we will be able to produce hydrogen with electrolysis using low-carbon electricity, from renewables and nuclear. But the cheapest source of low-carbon power is from the long-term operation of existing nuclear power plants which, combined with their high capacity factors, can give the cheapest low-carbon hydrogen of all.

In the mid to long term, there is research on-going with processes that are more efficient than low-temperature electrolysis, which is high temperature steam electrolysis or thermal splitting of water. These may offer higher efficiencies and effectiveness but they also require advanced reactors that are still under development. Demonstration projects are being considered in several countries and we at the IAEA are developing a publication that looks into the business opportunities for nuclear production of hydrogen from existing reactors. In some countries, there is a need to boost the economics of the existing fleet, especially in the electricity systems where you have low or even negative market prices for electricity. So, we are looking at other products that have higher values to improve the competitiveness of existing nuclear power plants.

The future means not only looking at electricity, but also at industry and transport, and so integrated energy systems. Electricity will be the main workhorse of our global decarbonisation effort, but through heat and hydrogen. How you model this is the object of a lot of research work being done by different institutes and we at the IAEA are developing some modelling capabilities with the objective of optimising low-carbon emissions and overall costs.

This is just a picture of what the future might look like: a low-carbon power system with nuclear lightwater reactors (large reactors, small modular reactors and fast reactors) drawing on the green industrial revolution reactor waves in planning; solar, wind, anything that produces low-carbon electricity that can be used to electrify industry, transport, and the heating and cooling of buildings. But we know there is a need for high-temperature process steam that electricity cannot bring but which can be delivered directly by high-temperature reactors. And there are a number of ways of producing low-carbon hydrogen. The beauty of hydrogen is that it can be stored and it could possibly be injected into gas networks that could be run in the future on 100% hydrogen, and this could be converted back into electricity.

So, for decarbonising power, there are many options - nuclear, hydro, variable renewables, with renewables poised to surpass coal in global generation, and fossil with carbon capture and storage - and it's up to countries and industries to invest in the ones they prefer. We find that nuclear can actually reduce the overall cost of systems due to its dispatchability and the fact that variable renewables have a cost because of their intermittency. There is a need for appropriate market designs and the role of governments to encourage investments in nuclear.

Decarbonising other sectors will be as important as decarbonising electricity, from ways to produce low-carbon heat and low-carbon hydrogen. It's not so obvious who will be the clear winners, but I would say that since nuclear can produce all three low-carbon vectors - electricity, heat and hydrogen - it should have the advantage.
We at the IAEA will be organising a webinar next month with the IEA looking at long-term nuclear projections in a net-zero world, building on IAEA analysis on COVID-19 and low-carbon electricity insights. That will be our contribution from the point of view of nuclear to the IEA's special report on roadmaps to net zero that it will publish in May.

 

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