Playing electrical Russian roulette

By Reuters


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Not everybody in military-ruled Myanmar is cursing the blackouts.

Thieves in the former Burma's main city, Yangon, are taking advantage of outages often lasting for more than 20 hours a day to steal the copper power cables, police said.

Sometimes, of course, they get unlucky.

"The thieves are risking their lives as it is impossible to know exactly when the power is going to be restored. It's just like playing Russian roulette," said one Yangon police officer who did not want to be named.

"I've seen a few cases in which thieves were electrocuted. In April, a 16-year-old boy was found dead, holding a broken cable from a lamppost. Only God knows for sure whether he was a thief or not."

Innocent passers-by are also falling victim.

"In one case, the broken cable end left by the thief dangled into a puddle and a woman jogger was killed when she stepped into it," he said.

Four decades of military rule and economic mismanagement have turned Myanmar - the world's number one rice exporter when it won independence from Britain in 1948 - into one of Asia's biggest basket cases.

Despite huge off-shore natural gas reserves, the southeast Asian nation's 53 million people have access to less than 10 percent of the electricity per capita of neighboring Thailand.

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Berlin Geothermal Plant in El Salvador Set to Launch This Year

El Salvador Geothermal Expansion boosts renewable energy with a 7 MW Berlin binary ORC plant, upgrades at Ahuachapan, and pipeline projects, strengthening clean power capacity, grid reliability, and sustainable growth in Central America.

 

Key Points

A national push adding binary-cycle capacity at Berlin and Ahuachapan, boosting geothermal supply and advancing sites.

✅ 7 MW Berlin binary ORC plant entering service.

✅ Ahuachapan upgrade adds 2 MW, total geothermal 204 MW.

✅ Next: Chinameca, San Miguel, San Vicente, World Bank backed.

 

El Salvador is set to expand its renewable energy capacity with the inauguration of the 7-MW Berlin binary geothermal power plant, slated to go online later this year. This new addition marks a significant milestone in the country’s geothermal energy development, highlighting its commitment to sustainable energy solutions. The plant, which has already been installed and is currently undergoing testing, is expected to boost the nation’s geothermal capacity, contributing to its growing renewable energy portfolio.

The Role of Geothermal Energy in El Salvador’s Energy Mix

Geothermal energy plays a pivotal role in El Salvador's energy landscape. With the combined output from the Ahuachapan and Berlin geothermal plants, geothermal energy now accounts for about 21% of the country's net electricity supply. This makes geothermal the second-largest source of energy generation in El Salvador, underscoring its importance as a reliable and sustainable energy resource alongside emerging options like advanced nuclear microreactor technologies in the broader low-carbon mix.

In addition to the Berlin plant, El Salvador has made significant improvements to its Ahuachapan geothermal power plant. Recent upgrades have increased its generation capacity by 2 MW, further enhancing the country’s geothermal energy output. Together, the Ahuachapan and Berlin plants bring the total installed geothermal capacity to 204 MW, positioning El Salvador as a regional leader in geothermal energy development.

The Berlin Binary Geothermal Plant: A Technological Milestone

The Berlin binary geothermal power plant is especially noteworthy for several reasons. It is the first geothermal power plant to be constructed in El Salvador since 2007, marking a significant step in the country's ongoing efforts to expand its renewable energy infrastructure while reinforcing attention to risk management in light of Hawaii geothermal safety concerns reported elsewhere. The plant utilizes a binary cycle geothermal system, which is known for its efficiency in extracting energy from lower temperature geothermal resources, making it an ideal solution for regions like Berlin, where geothermal resources are abundant but at lower temperatures.

The plant was built by Turboden, an Italian company specializing in organic Rankine cycle (ORC) technology. The binary cycle system operates by transferring heat from the geothermal fluid to a secondary fluid, which then drives a turbine to generate electricity. This system allows for the efficient use of geothermal resources that might otherwise be too low in temperature for traditional geothermal plants, enabling pairing with thermal storage demonstration solutions to optimize output.

Future Geothermal Developments in El Salvador

El Salvador is not stopping with the Berlin geothermal plant. The country is actively working on other geothermal projects, including those in Chinameca, San Miguel, and San Vicente. These developments are expected to add 50 MW of additional capacity in their first phase, reflecting a broader shift as countries pursue hydrogen-ready power plants to reduce emissions, with a second phase, supported by the World Bank, planned to add another 100 MW.

The Chinameca, San Miguel, and San Vicente projects represent the next wave of geothermal development in El Salvador. When completed, these plants will significantly increase the country’s geothermal capacity, further diversifying its energy mix and reducing reliance on fossil fuels, and will require ongoing grid upgrades, a task complicated elsewhere by Germany grid expansion challenges highlighted in Europe.

International Support and Collaboration

El Salvador’s geothermal development efforts are supported by various international partners, including the World Bank, which has been instrumental in financing the expansion of geothermal projects, as utilities such as SaskPower geothermal plans in Canada explore comparable pathways. This collaboration highlights the global recognition of El Salvador’s potential in geothermal energy and its efforts to position itself as a hub for geothermal energy development in Central America.

Additionally, the country’s expertise in geothermal energy, especially in binary cycle technology, has attracted international attention. El Salvador’s progress in the geothermal sector could serve as a model for other countries in the region that are looking to harness their geothermal resources to reduce energy costs and promote sustainable energy development.

The upcoming launch of the Berlin binary geothermal power plant is a testament to El Salvador’s commitment to sustainable energy. As the country continues to expand its geothermal capacity, it is positioning itself as a leader in renewable energy in the region. The binary cycle technology employed at the Berlin plant not only enhances energy efficiency but also demonstrates El Salvador’s ability to adapt and innovate within the renewable energy sector.

With the continued development of projects in Chinameca, San Miguel, and San Vicente, and ongoing international collaboration, El Salvador’s geothermal energy sector is set to play a crucial role in the country’s energy future. As global demand for clean energy grows, exemplified by U.S. solar capacity additions this year, El Salvador’s investments in geothermal energy are helping to build a more sustainable, resilient, and energy-independent future.

 

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Group of premiers band together to develop nuclear reactor technology

Small Modular Reactors in Canada are advancing through provincial collaboration, offering nuclear energy, clean power and carbon reductions for grids, remote communities, and mines, with factory-built modules, regulatory roadmaps, and pre-licensing by the nuclear regulator.

 

Key Points

Compact, factory-built nuclear units for clean power, cutting carbon for grids, remote communities, and industry.

✅ Provinces: Ontario, Saskatchewan, New Brunswick collaborate

✅ Targets coal replacement, carbon cuts, clean baseload power

✅ Modular, factory-made units; 5-10 year deployment horizon

 

The premiers of Ontario, Saskatchewan and New Brunswick have committed to collaborate on developing nuclear reactor technology in Canada. 

Doug Ford, Scott Moe and Blaine Higgs made the announcement and signed a memorandum of understanding on Sunday in advance of a meeting of all the premiers. 

They will be working on the research, development and building of small modular reactors as a way to help their individual provinces reduce carbon emissions and move away from non-renewable energy sources like coal. 

Small modular reactors are easy to construct, are safer than large reactors and are regarded as cleaner energy than coal, the premiers say. They can be small enough to fit in a school gym. 

SMRs are actually not very close to entering operation in Canada, though Ontario broke ground on its first SMR at Darlington recently, signaling early progress. Natural Resources Canada released an "SMR roadmap" last year, with a series of recommendations about regulation readiness and waste management for SMRs.

In Canada, about a dozen companies are currently in pre-licensing with the Canadian Nuclear Safety Commission, which is reviewing their designs.

"Canadians working together, like we are here today, from coast to coast, can play an even larger role in addressing climate change in Canada and around the world," Moe said.  

Canada's Paris targets are to lower total emissions 30 per cent below 2005 levels by 2030, and nuclear's role in climate goals has been emphasized by the federal minister in recent remarks. Moe says the reactors would help Saskatchewan reach a 70 per cent reduction by that year.

The provinces' three energy ministries will meet in the new year to discuss how to move forward and by the fall a fully-fledged strategy for the reactors is expected to be ready.

However, don't expect to see them popping up in a nearby field anytime soon. It's estimated it will take five to 10 years before they're built. 

Ford lauds economic possibilities
The provincial leaders said it could be an opportunity for economic growth, estimating the Canadian market for this energy at $10 billion and the global market at $150 billion.

Ford called it an "opportunity for Canada to be a true leader." At a time when Ottawa and the provinces are at odds, Higgs said it's the perfect time to show unity. 

"It's showing how provinces come together on issues of the future." 

P.E.I. premier predicts unity at Toronto premiers' meeting
No other premiers have signed on to the deal at this point, but Ford said all are welcome and "the more, the merrier."

But developing new energy technologies is a daunting task. Higgs admitted the project will need national support of some kind, though he didn't specify what. The agreement signed by the premiers is also not binding. 

About 8.6 per cent of Canada's electricity comes from coal-fired generation. In New Brunswick that figure is much higher — 15.8 per cent — and New Brunswick's small-nuclear debate has intensified as New Brunswick Premier Blaine Higgs has said he worries about his province's energy producers being hit by the federal carbon tax.

Ontario has no coal-fired power plants, and OPG's SMR commitment aligns with its clean electricity strategy today. In Saskatchewan, burning coal generates 46.6 per cent of the province's electricity.

How would it work?
The federal government describes small modular reactors (SMRs) as the "next wave of innovation" in nuclear energy technology, and collaborations like the OPG and TVA partnership are advancing development efforts, and an "important technology opportunity for Canada."

Traditional nuclear reactors used in Canada typically generate about 800 megawatts of electricity, and Ontario is exploring new large-scale nuclear plants alongside SMRs, or enough to power about 600,000 homes at once (assuming that 1 megawatt can power about 750 homes).

The International Atomic Energy Agency (IAEA), the UN organization for nuclear co-operation, considers a nuclear reactor to be "small" if it generates under 300 megawatts.

Designs for small reactors ranging from just 3 megawatts to 300 megawatts have been submitted to Canada's nuclear regulator, the Canadian Nuclear Safety Commission, for review as part of a pre-licensing process, while plans for four SMRs at Darlington outline a potential build-out pathway that regulators will assess.

Ford rallying premiers to call for large increase in federal health transfers
Such reactors are considered "modular" because they're designed to work either independently or as modules in a bigger complex (as is already the case with traditional, larger reactors at most Canadian nuclear power plants). A power plant could be expanded incrementally by adding additional modules.

Modules are generally designed to be small enough to make in a factory and be transported easily — for example, via a standard shipping container.

In Canada, there are three main areas where SMRs could be used:

Traditional, on-grid power generation, especially in provinces looking for zero-emissions replacements for CO2-emitting coal plants.
Remote communities that currently rely on polluting diesel generation.
Resource extraction sites, such as mining and oil and gas.
 

 

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Told "no" 37 times, this Indigenous-owned company brought electricity to James Bay anyway

Five Nations Energy Transmission Line connects remote First Nations to the Ontario power grid, delivering clean, reliable electricity to Western James Bay through Indigenous-owned transmission infrastructure, replacing diesel generators and enabling sustainable community growth.

 

Key Points

An Indigenous-owned grid link providing reliable power to Western James Bay First Nations, replacing polluting diesel.

✅ Built by five First Nations; fully Indigenous-owned utility

✅ 270 km line connecting remote James Bay communities

✅ Ended diesel dependence; enabled sustainable development

 

For the Indigenous communities along northern Ontario’s James Bay — the ones that have lived on and taken care of the lands as long as anyone can remember — the new millenium marked the start of a diesel-less future, even as Ontario’s electricity outlook raised concerns about getting dirtier in policy debates. 

While the southern part of the province took Ontario’s power grid for granted, despite lessons from Europe’s power crisis about reliability, the vast majority of these communities had never been plugged in. Their only source of power was a handful of very loud diesel-powered generators. Because of that, daily life in the Attawapiskat, Kashechewan and Fort Albany First Nations involved deliberating a series of tradeoffs. Could you listen to the radio while toasting a piece of bread? How many Christmas lights could you connect before nothing else was usable? Was there enough power to open a new school? 

The communities wanted a safe, reliable, clean alternative, with Manitoba’s clean energy illustrating regional potential, too. So did their chiefs, which is why they passed a resolution in 1996 to connect the area to Ontario’s grid, not just for basic necessities but to facilitate growth and development, and improve their communities’ quality of life. 

The idea was unthinkable at the time — scorned and dismissed by those who held the keys to Ontario’s (electrical) power, much like independent power projects can be in other jurisdictions. Even some in the community didn’t fully understand it. When the idea was first proposed at a gathering of Nishnawbe Aski Nation, which represents 49 First Nations, one attendee said the only way he could picture the connection was as “a little extension cord running through the bush from Moosonee.” 

But the leadership of Attawapiskat, Kashechewan and Fort Albany First Nations had been dreaming and planning. In 1997, along with members of Taykwa Tagamou and Moose Cree First Nations, they created the first, and thus far only, fully Indigenous-owned energy company in Canada: Five Nations Energy Inc., as partnerships like an OPG First Nation hydro project would later show in action, too. 

Over the next five years, the organization built Omushkego Ishkotayo, the Cree name for the Western James Bay transmission line: “Omushkego” refers to the Swampy Cree people, and “Ishkotayo” to hydroelectric power, while other regions were commissioning new BC generating stations in parallel. The 270-kilometre-long transmission line is in one of the most isolated regions of Ontario, one that can only be accessed by plane, except for a few months in winter when ice roads are strong enough to drive on. The project went online in 2001, bringing reliable power to over 7,000 people who were previously underserved by the province’s energy providers. It also, somewhat controversially, enabled Ontario’s first diamond mine in Attawapiskat territory.

The future the First Nations created 25 years ago is blissfully quiet, now that the diesel generators are shut off. “When the power went on, you could hear the birds,” Patrick Chilton, the CEO of Five Nations Energy, said with a smile. “Our communities were glowing.”

Power, politics and money: Five Nations Energy needed government, banks and builders on board
Chilton took over in 2013 after the former CEO, his brother Ed, passed away. “This was all his idea,” Chilton told The Narwhal in a conversation over Zoom from his office in Timmins, Ont. The company’s story has never been told before in full, he said, because he felt “vulnerable” to the forces that fought against Omushkego Ishkotayo or didn’t understand it, a dynamic underscored by Canada’s looming power problem reporting in recent years. 

The success of Five Nations Energy is a tale of unwavering determination and imagination, Chilton said, and it started with his older brother. “Ed was the first person who believed a transmission line was possible,” he said.

In a Timmins Daily Press death notice published July 2, 2013, Ed Chilton is described as having “a quiet but profound impact on the establishment of agreements and enterprises benefitting First Nations peoples and their lands.” Chilton doesn’t describe him that way, exactly. 

“If you knew my brother, he was very stubborn,” he said. A certified engineering technologist, Ed was a visionary whose whole life was defined by the transmission line. He was the first to approach the chiefs with the idea, the first to reach out to energy companies and government officials and the one who persuaded thousands of people in remote, underserved communities that it was possible to bring power to their region.

After that 1996 meeting of Nishnawbe Aski Nation, there came a four-year-long effort to convince the rest of Ontario, and the country, the project was possible and financially viable. The chiefs of the five First Nations took their idea to the halls of power: Queen’s Park, Parliament Hill and the provincial power distributor Hydro One (then Ontario Hydro). 

“All of them said no,” Chilton said. “They saw it as near to impossible — the idea that you could build a transmission line in the ‘swamp,’ as they called it.” The Five Nations Energy team kept a document at the time tracking how many times they heard no; it topped out at 37. 

One of the worst times was in 1998, at a meeting on the 19th floor of the Ontario Hydro building in the heart of downtown Toronto. There, despite all their preparation and planning, a senior member of the Ontario Hydro team told Chilton, Martin and other chiefs “you’ll build that line over my dead body,” Chilton recalled. 

At the time, Chilton said, Ontario Hydro was refusing to cooperate: unwilling to let go of its monopoly over transmission lines, but also saying it was unable to connect new houses in the First Nations to diesel generators it said were at maximum capacity. (Ontario Hydro no longer exists; Hydro One declined to comment.)

“There’s always naysayers no matter what you’re doing,” Martin said. “What we were doing had never been done before. So of course people were telling us how we had never managed something of this size or a budget of this size.” 

“[Our people] basically told them to blow it up your ass. We can do it,” Chilton said.

So the chiefs of the five nations did something they’d never done before: they went to all of the big banks and many, many charitable foundations trying to get the money, a big ask for a project of this scale, in this location. Without outside support, their pitch was that they’d build it themselves.

This was the hardest part of the process, said Lawrence Martin, the former Grand Chief of Mushkegowuk Tribal Council and a member of the Five Nations Energy board. “We didn’t know how to finance something like this, to get loans,” he told The Narwhal. “That was the toughest task for all of us to achieve.”

Eventually, they got nearly $50 million in funding from a series of financial organizations including the Bank of Montreal, Pacific and Western Capital, the Northern Ontario Heritage Fund Corporation (an Ontario government agency) and the engineering and construction company SNC Lavalin, which did an assessment of the area and deemed the project viable. 

And in 1999, Ed Chilton, other members of the Chilton family and the chiefs were able to secure an agreement with Ontario Hydro that would allow them to buy electricity from the province and sell it to their communities. 

 

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A tenth of all electricity is lost in the grid - superconducting cables can help

High-Temperature Superconducting Cables enable lossless, high-voltage, underground transmission for grid modernization, linking renewable energy to cities with liquid nitrogen cooling, boosting efficiency, cutting emissions, reducing land use, and improving resilience against disasters and extreme weather.

 

Key Points

Liquid-nitrogen-cooled power cables delivering electricity with near-zero losses, lower voltage, and greater resilience.

✅ Near-lossless transmission links renewables to cities efficiently

✅ Operate at lower voltage, reducing substation size and cost

✅ Underground, compact, and resilient to extreme weather events

 

For most of us, transmitting power is an invisible part of modern life. You flick the switch and the light goes on.

But the way we transport electricity is vital. For us to quit fossil fuels, we will need a better grid, with macrogrid planning connecting renewable energy in the regions with cities.

Electricity grids are big, complex systems. Building new high-voltage transmission lines often spurs backlash from communities, as seen in Hydro-Que9bec power line opposition over aesthetics and land use, worried about the visual impact of the towers. And our 20th century grid loses around 10% of the power generated as heat.

One solution? Use superconducting cables for key sections of the grid. A single 17-centimeter cable can carry the entire output of several nuclear plants. Cities and regions around the world have done this to cut emissions, increase efficiency, protect key infrastructure against disasters and run powerlines underground. As Australia prepares to modernize its grid, it should follow suit with smarter electricity infrastructure initiatives seen elsewhere. It's a once-in-a-generation opportunity.


What's wrong with our tried-and-true technology?
Plenty.

The main advantage of high voltage transmission lines is they're relatively cheap.

But cheap to build comes with hidden costs later. A survey of 140 countries found the electricity currently wasted in transmission accounts for a staggering half-billion tons of carbon dioxide—each year.

These unnecessary emissions are higher than the exhaust from all the world's trucks, or from all the methane burned off at oil rigs.

Inefficient power transmission also means countries have to build extra power plants to compensate for losses on the grid.

Labor has pledged A$20 billion to make the grid ready for clean energy, and international moves such as US-Canada cross-border approvals show the scale of ambition needed. This includes an extra 10,000 kilometers of transmission lines. But what type of lines? At present, the plans are for the conventional high voltage overhead cables you see dotting the countryside.

System planning by Australia's energy market operator shows many grid-modernizing projects will use last century's technologies, the conventional high voltage overhead cables, even as Europe's HVDC expansion gathers pace across its network. If these plans proceed without considering superconductors, it will be a huge missed opportunity.


How could superconducting cables help?
Superconduction is where electrons can flow without resistance or loss. Built into power cables, it holds out the promise of lossless electricity transfer, over both long and short distances. That's important, given Australia's remarkable wind and solar resources are often located far from energy users in the cities.

High voltage superconducting cables would allow us to deliver power with minimal losses from heat or electrical resistance and with footprints at least 100 times smaller than a conventional copper cable for the same power output.

And they are far more resilient to disasters and extreme weather, as they are located underground.

Even more important, a typical superconducting cable can deliver the same or greater power at a much lower voltage than a conventional transmission cable. That means the space needed for transformers and grid connections falls from the size of a large gym to only a double garage.

Bringing these technologies into our power grid offers social, environmental, commercial and efficiency dividends.

Unfortunately, while superconductors are commonplace in Australia's medical community (where they are routinely used in MRI machines and diagnostic instruments) they have not yet found their home in our power sector.

One reason is that superconductors must be cooled to work. But rapid progress in cryogenics means you no longer have to lower their temperature almost to absolute zero (-273℃). Modern "high temperature" superconductors only need to be cooled to -200℃, which can be done with liquid nitrogen—a cheap, readily available substance.

Overseas, however, they are proving themselves daily. Perhaps the most well-known example to date is in Germany's city of Essen. In 2014, engineers installed a 10 kilovolt (kV) superconducting cable in the dense city center. Even though it was only one kilometer long, it avoided the higher cost of building a third substation in an area where there was very limited space for infrastructure. Essen's cable is unobtrusive in a meter-wide easement and only 70cm below ground.

Superconducting cables can be laid underground with a minimal footprint and cost-effectively. They need vastly less land.

A conventional high voltage overhead cable requires an easement of about 130 meters wide, with pylons up to 80 meters high to allow for safety. By contrast, an underground superconducting cable would take up an easement of six meters wide, and up to 2 meters deep.

This has another benefit: overcoming community skepticism. At present, many locals are concerned about the vulnerability of high voltage overhead cables in bushfire-prone and environmentally sensitive regions, as well as the visual impact of the large towers and lines. Communities and farmers in some regions are vocally against plans for new 85-meter high towers and power lines running through or near their land.

Climate extremes, unprecedented windstorms, excessive rainfall and lightning strikes can disrupt power supply networks, as the Victorian town of Moorabool discovered in 2021.

What about cost? This is hard to pin down, as it depends on the scale, nature and complexity of the task. But consider this—the Essen cable cost around $20m in 2014. Replacing the six 500kV towers destroyed by windstorms near Moorabool in January 2020 cost $26 million.

While superconducting cables will cost more up front, you save by avoiding large easements, requiring fewer substations (as the power is at a lower voltage), and streamlining approvals.


Where would superconductors have most effect?
Queensland. The sunshine state is planning four new high-voltage transmission projects, to be built by the mid-2030s. The goal is to link clean energy production in the north of the state with the population centers of the south, similar to sending Canadian hydropower to New York to meet demand.

Right now, there are major congestion issues between southern and central Queensland, and subsea links like Scotland-England renewable corridors highlight how to move power at scale. Strategically locating superconducting cables here would be the best location, serving to future-proof infrastructure, reduce emissions and avoid power loss.

 

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Ontario Provides Stable Electricity Pricing for Industrial and Commercial Companies

Ontario ICI Electricity Pricing Freeze helps Industrial Conservation Initiative (ICI) participants by stabilizing Global Adjustment charges, suspending peak hours curtailment, and reducing COVID-19-related electricity cost volatility to support large employers returning operations to full capacity.

 

Key Points

A two-year policy stabilizing GA costs and pausing peak-hour cuts to aid industrial and commercial recovery.

✅ GA cost share frozen for two years

✅ No peak-hour curtailment obligations

✅ Supports industrial and commercial restart

 

The Ontario government is helping large industrial and commercial companies return to full levels of operation without the fear of electricity costs spiking by providing more stable electricity pricing for two years. Effective immediately, companies that participate in the Industrial Conservation Initiative (ICI) will not be required to reduce their electricity usage during peak hours or shift some load to ultra-low overnight pricing where applicable, as their proportion of Global Adjustment (GA) charges for these companies will be frozen.

"Ontario's industrial and commercial electricity consumers continue to experience unprecedented economic challenges during COVID-19, with electricity relief for households and small businesses introduced to help," said Greg Rickford, Minister of Energy, Northern Development and Mines. "Today's announcement will allow large industrial employers to focus on getting their operations up and running and employees back to work, instead of adjusting operations in response to peak electricity demand hours."

Due to COVID-19, electricity consumption in Ontario has been below average as fall in demand as people stayed home across the province, and the province is forecast to have a reliable supply of electricity, supported by the system operator's staffing contingency plans during the pandemic, to accommodate increased usage. Peak hours generally occur during the summer when the weather is hot and electricity demand from cooling systems is high.

"Today's action will reduce the burden of anticipating and responding to peak hours for more than 1,300 ICI participants with 2,000 primarily industrial facilities in Ontario," said Bill Walker, Associate Minister of Energy. "Now these large employers can focus on getting their operations back up and running at full tilt and explore new energy-efficiency programs to manage costs."

The government previously announced it was providing temporary relief for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan (RPP) by deferring a portion of GA charges for April, May and June 2020 and by extending off-peak rates for many customers, as well as a disconnect moratorium extension for residential electricity users.

 

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Surging electricity demand is putting power systems under strain around the world

Global Electricity Demand Surge strains power markets, fuels price volatility, and boosts coal and gas generation as renewables lag, driving emissions, according to the IEA, with grids and clean energy investment crucial through 2024.

 

Key Points

A surge in power use that strained supply, raised prices, and drove power-sector CO2 emissions to record highs.

✅ 6% demand growth in 2021; largest absolute rise ever

✅ Coal up 9%; gas +2%; renewables +6% could not meet demand

✅ Prices doubled vs 2020; volatility hit EU, China, India

 

Global electricity demand surged above pre-pandemic levels in 2021, creating strains in major markets, pushing prices to unprecedented levels and driving the power sector’s emissions to a record high. Electricity is central to modern life and clean electricity is pivotal to energy transitions, but in the absence of faster structural change in the sector, rising demand over the next three years could result in additional market volatility and continued high emissions, according an IEA report released today.

Driven by the rapid economic rebound, and more extreme weather conditions than in 2020, including a colder than average winter, last year’s 6% rise in global electricity demand was the largest in percentage terms since 2010 when the world was recovering from the global financial crisis. In absolute terms, last year’s increase of over 1 500 terawatt-hours was the largest ever, according to the January 2022 edition of the IEA’s semi-annual Electricity Market Report.

The steep increase in demand outstripped the ability of sources of electricity supply to keep pace in some major markets, with shortages of natural gas and coal leading to volatile prices, demand destruction and negative effects on power generators, retailers and end users, notably in China, Europe and India. Around half of last year’s global growth in electricity demand took place in China, where demand grew by an estimated 10%, highlighting that Asia is set to use half of global electricity by 2025 according to the IEA. China and India suffered from power cuts at certain points in the second half of the year because of coal shortages.

“Sharp spikes in electricity prices in recent times have been causing hardship for many households and businesses around the world and risk becoming a driver of social and political tensions,” said IEA Executive Director Fatih Birol. “Policy makers should be taking action now to soften the impacts on the most vulnerable and to address the underlying causes. Higher investment in low-carbon energy technologies including renewables, energy efficiency and nuclear power – alongside an expansion of robust and smart electricity grids – can help us get out of today’s difficulties.”

The IEA’s price index for major wholesale electricity markets almost doubled compared with 2020 and was up 64% from the 2016-2020 average. In Europe, average wholesale electricity prices in the fourth quarter of 2021 were more than four times their 2015-2020 average, and wind and solar generated more electricity than gas in the EU during the year.  Besides Europe, there were also sharp price increases in Japan and India, while they were more moderate in the United States where gas supplies were less perturbed.

Electricity produced from renewable sources grew by 6% in 2021, but it was not enough to keep up with galloping demand. Coal-fired generation grew by 9%, with soaring electricity and coal use serving more than half of the increase in demand and reaching a new all-time peak as high natural gas prices led to gas-to-coal switching. Gas-fired generation grew by 2%, while nuclear increased by 3.5%, almost reaching its 2019 levels. In total, carbon dioxide (CO2) emissions from power generation rose by 7%, also reaching a record high, after having declined the two previous years.

“Emissions from electricity need to decline by 55% by 2030 to meet our Net Zero Emissions by 2050 Scenario, but in the absence of major policy action from governments, those emissions are set to remain around the same level for the next three years,” said Dr Birol. “Not only does this highlight how far off track we currently are from a pathway to net zero emissions by 2050, but it also underscores the massive changes needed for the electricity sector to fulfil its critical role in decarbonising the broader energy system.”

For 2022-2024, the report anticipates electricity demand growing 2.7% a year on average, although the Covid-19 pandemic and high energy prices bring some uncertainty to this outlook. Renewables are set to grow by 8% per year on average, and low-emissions sources are expected to serve more than 90% of net demand growth during this period. We expect nuclear-based generation to grow by 1% annually during the same period.

As a consequence of slowing electricity demand growth and significant renewables additions, fossil fuel-based generation is expected to stagnate in the coming years, and renewables are set to surpass coal by 2025 with coal-fired generation falling slightly as phase-outs and declining competitiveness in the United States and Europe are balanced by growth in markets like China, where electricity demand trends remain a puzzle in recent analyses, and India. Gas-fired generation is seen growing by around 1% a year.

 

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