OPG is the real test for pay-cut call

Expanded Hoa Binh Hydropower Plant increases EVN capacity with 480MW turbines, commercial loan financing, grid stability, flood control, and Da River reliability, supported by PECC1 feasibility work and CMSC collaboration on site clearance.

Key Points

A 480MW EVN expansion on the Da River to enhance grid stability, flood control, and seasonal water supply in Vietnam.

✅ 480MW, two turbines, EVN-led financing without guarantees

✅ Improves frequency modulation and national grid stability

✅ Supports flood control and dry-season water supply

The extended Hoa Binh Hydropower Plant, which is expected to break ground in October 2020, is considered the largest power project to be constructed this year, even as Vietnam advances a mega wind project planned for 2025.

Covering an area of 99.2 hectares, the project is invested by Electricity of Vietnam (EVN). Besides, Vietnam Electricity Power Projects Management Board No.1 (EVNPMB1) is the representative of the investor and Power Engineering Consulting JSC 1 (EVNPECC1) is in charge of building the feasibility report for the project. The expanded Hoa Binh Hydro Power Plant has a total investment of VND9.22 trillion ($400.87 million), 30 per cent of which is EVN’s equity and the remaining 70 per cent comes from commercial loans without a government guarantee.

According to the initial plan, EVN will begin the construction of the project in the second quarter of this year and is expected to take the first unit into operation in the third quarter of 2023, a timeline reminiscent of Barakah Unit 1 reaching full power, and the second one in the fourth quarter of the same year.

Chairman of the Committee for Management of State Capital at Enterprises (CMSC) Nguyen Hoang Anh said that in order to start the construction in time, CMSC will co-operate with EVN to work with partners as well as local and foreign banks to mobilise capital, reflecting broader nuclear project milestones across the energy sector.

In addition, EVN will co-operate with Hoa Binh People’s Committee to implement site clearance, remove Ba Cap port and select contractors.

Once completed, the project will contribute to preventing floods in the rainy season and supply water in the dry season. The plant expansion will include two turbines with the total capacity of 480MW, similar in scale to the 525-MW hydropower station China is building on a Yangtze tributary, and electricity output of about 488.3 million kWh per year.

In addition, it will help improve frequency modulation capability and stabilise the frequency of the national electricity system through approaches like pumped storage capacity, and reduce the working intensity of available turbines of the plant, thus prolonging the life of the equipment and saving maintenance and repair costs.

Built in the Da River basin in the northern mountainous province of Hoa Binh, at the time of its conception in 1979, Hoa Binh was the largest hydropower plant in Southeast Asia, while projects such as China’s Lawa hydropower station now dwarf earlier benchmarks.

The construction was supported by the Soviet Union all the way through, designing, supplying equipment, supervising, and helping it go on stream. Construction began in November 1979 and was completed 15 years later in December 1994, when it was officially commissioned, similar to two new BC generating stations recently brought online.

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UK Clean Electricity Record as wind, solar, and biomass boost renewable energy output, slashing carbon emissions and wholesale power prices during lockdown, while lower demand challenges grid balancing and drives a drop to 153 g/kWh.

Key Points

A milestone where wind, solar and biomass lifted renewables, cutting carbon intensity to 153 g/kWh during lockdown.

✅ Carbon intensity averaged 153 g/kWh in Q2 2020.

✅ Renewables output rose 32% via wind, solar, biomass.

✅ Wholesale power prices slumped 42% amid lower demand.

U.K electricity has never been cleaner. As wind, solar and biomass plants produced more power than ever in the second quarter, with a new wind generation record set, carbon emissions fell by a third from a year earlier, according to Drax Electric Insight’s quarterly report. Power prices slumped 42 per cent as demand plunged during lockdown. Total renewable energy output jumped 32 per cent in the period, as wind became the main source of electricity at times.

“The past few months have given the country a glimpse into the future for our power system, with higher levels of renewable energy, as wind led the power mix, and lower demand making for a difficult balancing act,”said  Iain Staffell, from Imperial College London and lead author of the report.

The findings of the report point to the impact energy efficiency can have on reducing emissions, as coal's share fell to record lows across the electricity system. Millions of people furloughed or working from home and shuttered shops up and down the country resulted in daily electricity demand dropping about 10% and being about four gigawatts lower than expected in the three months through June.

Average carbon emissions fell to a new low of 153 grams per kWh of electricity consumed over the quarter, as coal-free generation records were extended, even though low-carbon generation stalled in 2019, according to the report.

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MidAmerican Energy Wind XI expands Iowa wind power with the Beaver Creek and Prairie farms, 169 turbines and 338 MW, delivering renewable energy, grid reliability, rural jobs, and long-term tax revenue through major investment.

Key Points

MidAmerican Energy Wind XI is a $3.6B Iowa wind buildout adding 2,000 MW to enhance reliability, jobs, and tax revenue.

✅ 169 turbines at Beaver Creek and Prairie deliver 338 MW.

✅ Wind supplies 36.6 percent of Iowa electricity generation.

✅ Projects forecast $62.4M in property taxes over 20 years.

Power company MidAmerican Energy recently announced the beginning of operations at two huge wind farms in the US state of Iowa.

The two projects, called Beaver Creek and Prairie, total 169 turbines and have a combined capacity of 338 megawatts (MW), enough to meet the annual electricity needs of 140,000 homes in the state.

“We’re committed to providing reliable service and outstanding value to our customers, and wind energy accomplishes both,” said Mike Fehr, vice president of resource development at MidAmerican. “Wind energy is good for our customers, and it’s an abundant, renewable resource that also energizes the economy.”

The wind farms form part of MidAmerican Energy’s major Wind XI project, which will see an extra 2,000MW of wind power built, and $3.6 billion invested amid notable wind farm acquisitions shaping the market by the end of 2019. The company estimates it is the largest economic development project in Iowa’s history.

Iowa is something of a hidden powerhouse in American wind energy. The technology provides an astonishing 36.6 percent of the state’s entire electricity generation and plays a growing role in the U.S. electricity mix according to the American Wind Energy Association (AWEA). It also has the second largest amount of installed capacity in the nation at 6917MW; Texas is first with over 21,000MW.

Along with capital investment, wind power brings significant job opportunities and tax revenues for the state. An estimated 9,000 jobs are supported by the industry, something a U.S. wind jobs forecast stated could grow to over 15,000 within a couple of years.

MidAmerican Energy is also keen to stress the economic benefits of its new giant projects, claiming that they will bring in $62.4 million of property tax revenue over their 20-year lifetime.

Tom Kiernan, AWEA’s CEO, revealed last year that, as the most-used source of renewable electricity in the U.S., wind energy is providing more than five states in the American Midwest with over 20 percent of electricity generation, “a testament to American leadership and innovation”.

“For these states, and across America, wind is welcome because it means jobs, investment, and a better tomorrow for rural communities”, he added.

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BC Hydro COVID-19 Bill Relief offers pandemic support with bill credits, rate cuts, and deferred payments for residential, small business, and industrial customers across B.C., easing utilities costs during COVID-19 economic hardship.

Key Points

COVID-19 bill credits, a rate cut, and deferred payments for eligible B.C. homes, small businesses, and industrial customers.

✅ Non-repayable credits equal to 3 months of average bills.

✅ Small businesses closed can skip bills for three months.

✅ Large industry may defer 50% of electricity costs.

B.C. residents who have lost their jobs or had their wages cut will get a three-month break on BC Hydro bills, while small businesses, amid commercial consumption plummets during COVID-19, are also eligible to apply for similar relief.

Premier John Horgan said Wednesday the credit for residential customers will be three times a household’s average monthly bill over the past year and does not have to be repaid as part of the government’s support package during the COVID-19 pandemic, as BC Hydro demand down 10% highlights the wider market pressures.

He said small businesses that are closed will not have to pay their power bills for three months, and in Ontario an Ontario COVID-19 hydro rebate complemented similar relief, and large industrial customers, including those operating mines and pulp mills, can opt to have 50 per cent of their electricity costs deferred, though a deferred costs report warned of long-term liabilities.

BC Hydro rates will be cut for all customers by one per cent as of April 1, a move similar to Ontario 2021 rate reductions that manufacturers supported lower rates at the time, after the B.C. Utilities Commission provided interim approval of an application the utility submitted last August.

Eligible residential customers can apply for bill relief starting next week and small business applications will be accepted as of April 14, while staying alert to BC Hydro scam attempts during this period, with the deadline for both categories set at June 30.

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Ontario Hydro Rate Relief Plan delivers short-term electricity bill cuts, while leaked cabinet forecasts show inflation-linked hikes, borrowing costs, and a Clean Energy Adjustment under the province's long-term energy plan.

Key Points

A provincial plan that cuts bills now but defers costs, projecting rate hikes and adding a Clean Energy Adjustment.

✅ 25% cut now, after 8% HST relief; extra 17% reduction applied.

✅ Forecast: inflation-linked hikes later; borrowing adds long-term costs.

✅ Clean Energy Adjustment line to repay deferred system costs.

The short-term gain of a 25 per cent hydro rate cut this summer could lead to long-term pain as a leaked cabinet document forecasts prices jumping again in five years.

In the briefing materials leaked and obtained by the Progressive Conservatives, rates will start rising 6.5 per cent a year in 2022 and top out at 10.5 per cent in 2028, when average monthly bills hit $215.

That would be up from $123 this year once the rate cut — the subject of long-awaited legislation to lower electricity rates unveiled Thursday by Energy Minister Glenn Thibeault — takes full effect. There will be another 17-per-cent cut in addition to the 8 per cent taken off bills in January when the provincial portion of the HST was waived.

The leaked papers overshadowed Thibeault’s efforts to tout the price break, which will be followed with four years of hydro rate increases at 2 per cent, roughly the rate of inflation.

Thibeault charged that the Conservatives used an “outdated” document to distract from the fact that they are the only major party without a plan for dealing with skyrocketing hydro rates, with a year to go until next June’s provincial election.

“It’s not a coincidence,” he told reporters, denying any plans for an eventual 10.5-per-cent rate hike and promising the government’s new long-term energy plan, due in a few months, will have better numbers.

“We are working hard right now to continue to pull costs out of the system.”

Opposition parties said the Liberal plan doesn’t deal with the underlying problems that have made electricity expensive and simply borrows money to spread the costs over a longer period of time, with $25 billion in interest charges over 30 years.

Some observers also noted that a deal with Quebec would not reduce hydro bills, highlighting concerns about lasting affordability.

“The price of electricity is going to skyrocket after the next election,” warned Conservative MPP Todd Smith (Prince Edward—Hastings).

“The government isn’t being honest with the people of Ontario when it comes to the price of electricity.”

The documents show average monthly bills peaking at $231 in the year 2047, before falling back to $210 the following year once the 30 years of interest payments are over.

Conservative sources say they obtained the papers stamped “confidential cabinet document” from a whistleblower after Thibeault’s rate cut plan was presented to cabinet ministers at a meeting in early March.

There is no date on the document, which the energy minister alternately dismissed as “inaccurate” or possibly one of many that have been prepared with different options in mind.

“We’ve had hundreds of briefings with hundreds of documents … I can’t comment on one graph when we’ve been looking at hundreds of scenarios.”

New Democrats, who have proposed a scheme to cut rates, if elected, also called the government plan an election ploy with Liberals lagging in the polls.

“We’re going to take on a huge debt so (Premier) Kathleen Wynne can look good on the hustings in the next few months, and for decades we’re going to pay for it,” said MPP Peter Tabuns (Toronto-Danforth).

Thibeault acknowledged the Liberal plan will start repaying borrowed money in the mid- or late 2020s and it will show up separately on hydro bills as the “Clean Energy Adjustment”, a kind of electricity recovery rate that could raise costs.

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U.S. Offshore Wind Capacity is set to exceed 1 GW by 2024, driven by BOEM approvals, federal leases, and resilient supply chains, with eastern states scaling renewable energy, turbines, and content despite COVID-19 disruptions.

Key Points

Projected gigawatt-scale offshore wind growth enabled by BOEM approvals, federal leases, and East Coast state demand.

✅ 17+ GW leased; only 1,870 MW in announced first phases.

✅ BOEM approvals are critical to reach >1 GW by 2024.

✅ Local supply chains mitigate COVID-19 impacts and lower costs.

Offshore wind in the U.S. will exceed 1 GW of capacity by 2024 and add more than 1 GW annually by 2027, a trajectory consistent with U.S. offshore wind power trends, according to a report released last week by Navigant Research.

The report calculated over 17 GW of offshore state and federal leases for wind production, reflecting forecasts that $1 trillion offshore wind market growth is possible. However, the owners of those leases have only announced first phase plans for 1,870 MW of capacity, leaving much of the projects in early stages with significant room to grow, according to senior research analyst Jesse Broehl.

The Business Network for Offshore Wind (BNOW) believes it is possible to hit 1 GW by 2023-24, according to CEO Liz Burdock. While the economy has taken a hit from the coronavirus pandemic, she said the offshore wind industry can continue growing as "the supply chain from Asia and Europe regains speed this summer, and the administration starts clearing" plans of construction.

BNOW is concerned with the economic hardship imposed on secondary and tertiary U.S. suppliers due to the global spread of COVID-19.

Offshore wind has been touted by many eastern states and governors as an opportunity to create jobs, with U.S. wind employment expected to expand, according to industry forecasts. Analysts see the growing momentum of projects as a way to further lower costs by creating a local supply chain, which could be jeopardized by a long-term shutdown and recession.

"The federal government must act now — today, not in December — and approve project construction and operation plans," a recent BNOW report said. Approving any of the seven projects before BOEM, which has recently received new lease requests, currently would allow small businesses to get to work "following the containment of the coronavirus," but approval of the projects next year "may be too late to keep them solvent."

The prospects for maintaining momentum in the industry falls largely to the Department of the Interior's Bureau of Ocean Energy Management (BOEM). The industry cannot hit the 1 GW milestone without project approvals by BOEM, which is revising processes to analyze federal permit applications in the context of "greater build out of offshore wind capacity," according to its website.

"It is heavily dependent on the project approval success," Burdock told Utility Dive.

Currently, seven projects are awaiting determinations from BOEM on their construction operation plans in Massachusetts, New York, where a major offshore wind farm was recently approved, New Jersey and Maryland, with more to be added soon, a BNOW spokesperson told Utility Dive.

To date, only one project has received BOEM approval for development in federal waters, a 12 MW pilot by Dominion Energy and Ørsted in Virginia. The two-turbine project is a stepping stone to a commercial-scale 2.6 GW project the companies say could begin installation as soon as 2024, and gave the developers experience with the permitting process.

In the U.S., developers have the capacity to develop 16.9 GW of offshore wind in federal U.S. lease areas, even as wind power's share of the electricity mix surges nationwide, Broehl told Utility Dive, but much of that is in early stages. The Navigant report did not address any impacts of coronavirus on offshore wind, he said.

Although Massachusetts has legislation in place to require utilities to purchase 1.6 GW of wind power by 2026, and several other projects are in early development stages, Navigant expects the first large offshore wind projects in the U.S. (exceeding 200 MW) will come online in 2022 or later, and the first projects with 400 MW or more capacity are likely to be built by 2024-2025, and lessons from the U.K.'s experience could help accelerate timelines. The U.S. would add about 1.2 GW in 2027, Broehl said.

The federal leasing activities along with the involvement from Eastern states and utilities "virtually guarantees that a large offshore wind market is going to take off in the U.S.," Broehl said.

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