Carbon tax would raise bills – except in Quebec

By Edmonton Sun


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While Stephane Dion promises the Liberals' proposed $15-billion environmental tax would provide riches for the poor and tax cuts for all, he fails to mention consumers in most parts of the country would be in for some shocking electricity bills.

In Ontario, for instance, government figures show Dion's plan would add at least 20% to the overall annual cost of generating electricity across the province.

The impact would be as bad or even worse in Alberta, Saskatchewan, Manitoba and much of the Maritimes, regions with generating stations powered by fossil fuels - coal, oil and gas.

The giant Ontario Power Generation Corp., the province's main electrical utility, claims no one really knows how much Dion's tax scheme would drive up the average family's cost of keeping the lights on.

A spokesman says the utility would not comment on any political party's proposed policy, but "obviously someone would have to pay for increased costs."

One thing is certain: Under Dion's plan to impose a tax of $40 per tonne on greenhouse gas emissions, the increased costs to industry and ultimately consumers would be onerous.

For example, last year, Ontario's five generating stations that run on fossil fuels produced just over 28 million tonnes of greenhouse gas emissions.

As a result, Dion's scheme would slap a whopping tax of $1.1 billion just on those five power stations, increasing the cost of operating them by a staggering 80% or more.

As the spokesman for Ontario Power says, someone would have to pay.

In this case, that would be either Ontario consumers or provincial taxpayers who would be zapped for more than $1 billion a year, an increase of at least 20% in the operating costs of the utility, including its nuclear and hydro-electric facilities.

Environmentalists argue with some reason that the aging fossil-fuel generating stations are eco-monsters whose belching smokestacks should have been capped long ago.

In fact, Environment Canada lists the Nanticoke station on Lake Erie as the worst single source of greenhouse gas emissions anywhere in Canada.

The latest figures we have show Nanticoke alone belched over 16 million tonnes of emissions into the air in 2006, roughly the equivalent of half of all the regular cars in the country.

The problem is Nanticoke and the other four eco-offending facilities also generate about 30% of Ontario Power's total annual output of electricity, and throwing the switch on them anytime soon would leave much of the province in the dark.

Alberta would be even harder hit by the Dion tax plan with more than half of the promised $15 billion in annual revenues coming from that one oil-producing province.

Much of that would be from the oilsands - two Syncrude plants alone would have been smacked last year with over $1 billion in Dion's "green shift" taxes.

But like Ontario, ordinary Alberta families would be hit with soaring electrical bills to cover the environmental taxes on coal and oil-burning generating plants.

According to federal figures, seven electrical generation facilities in Alberta together produce almost 80% more greenhouse gas emissions than Ontario's worst five.

Were Dion's tax applied, Albertans would be stuck covering almost $1.8 billion on their monthly electricity bills.

By coincidence, the one province where electricity bills won't be touched by Dion's plan is the one with all that hydro power - Quebec.

Imagine that.

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A new nuclear reactor in the U.S. starts up. It's the first in nearly seven years

Vogtle Unit 3 Initial Criticality marks the startup of a new U.S. nuclear reactor, initiating fission to produce heat, steam, and electricity, supporting clean energy goals, grid reliability, and carbon-free baseload power.

 

Key Points

Vogtle Unit 3 Initial Criticality is the first fission startup, launching power generation at a new U.S. reactor.

✅ First new U.S. reactor to reach criticality since 2016

✅ Generates carbon-free baseload power for the grid

✅ Faced cost overruns and delays during construction

 

For the first time in almost seven years, a new nuclear reactor has started up in the United States.

On Monday, Georgia Power announced that the Vogtle nuclear reactor Unit 3 has started a nuclear reaction inside the reactor as part of the first new reactors in decades now taking shape at the plant.

Technically, this is called “initial criticality.” It’s when the nuclear fission process starts splitting atoms and generating heat, Georgia Power said in a written announcement.

The heat generated in the nuclear reactor causes water to boil. The resulting steam spins a turbine that’s connected to a generator that creates electricity.

Vogtle’s Unit 3 reactor will be fully in service in May or June, Georgia Power said.

The last time a nuclear reactor reached the same milestone was almost seven years ago in May 2016 when the Tennessee Valley Authority started splitting atoms at the Watts Bar Unit 2 reactor in Tennessee, Scott Burnell, a spokesperson for the Nuclear Regulatory Commission, told CNBC.

“This is a truly exciting time as we prepare to bring online a new nuclear unit that will serve our state with clean and emission-free energy for the next 60 to 80 years,” Chris Womack, CEO of Georgia Power, said in a written statement. 

Including the newly turned-on Vogtle Unit 3 reactor, there are currently 93 nuclear reactors operating in the United States and, collectively, they generate 20% of the electricity in the country, although a South Carolina plant leak recently showed how outages can sideline a unit for weeks.

Nuclear reactors, which help combat global warming and support net-zero emissions goals, generate about half of the clean, carbon-free electricity generated in the U.S.

Most of the nuclear power reactors in the United States were constructed between 1970 and 1990, but construction slowed significantly after the accident at Three Mile Island near Middletown, Pennsylvania, on March 28, 1979, even as interest in next-gen nuclear power has grown in recent years. From 1979 through 1988, 67 nuclear reactor construction projects were canceled, according to the U.S. Energy Information Administration.

However, because nuclear energy is generated without releasing carbon dioxide emissions, which cause global warming, the increased sense of urgency in responding to climate change has given nuclear energy a chance at a renaissance as atomic energy heats up again globally.

The cost associated with building nuclear reactors is a major barrier to a potential resurgence in nuclear energy, however, even as nuclear generation costs have fallen to a ten-year low. And the new builds at Vogtle have become an epitome of that charge: The construction of the two Vogtle reactors has been plagued by cost overruns and delays.
 

 

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LOC Renewables Delivers First MWS Services To China's Offshore Wind Market

Pinghai Bay Offshore Wind Farm MWS advances marine warranty survey best practices, risk management, and international standards in Fujian, with Haixia Goldenbridge Insurance and reinsurer-aligned audits supporting safer offshore wind construction and logistics.

 

Key Points

An MWS program ensuring Pinghai Bay Phase 2 meets standards via audits, risk controls, and vetted procedures.

✅ First MWS delivered in China's offshore wind market

✅ Audits, risk consultancy, and reinsurer-aligned standards

✅ Supports 250MW Phase 2 at Pinghai Bay, Fujian

 

LOC Renewables has announced it is to carry out marine warranty survey (MWS) services for the second phase of the Pinghai Bay Offshore Wind Farm near Putian, Fujian province, China, on behalf of Haixia Goldenbridge Insurance Co., Ltd. The agreement represents the first time MWS services have been delivered to the Chinese offshore wind market.

China’s installed offshore capacity jumped more than 60% in 2017, and its growing offshore market is aiming for a total grid-connected capacity of 5GW by 2020, as the sector globally advances toward a $1 trillion industry over the coming decades. Much of this future offshore development is slated to take place in Jiangsu, Zhejiang, Guangdong and Fujian provinces. As developers becoming increasingly aware of the need for stringent risk management and value that internationally accepted standards can bring to projects, Pinghai Bay will be the first Chinese offshore wind farm to employ MWS to ensure it meets the highest technical standards and minimise project risk. The agreement will see LOC Renewables carry out audit and risk consultancy services for the project from March until the end of 2018.

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In recent years, as Chinese offshore wind projects have grown in scale and complexity the need for international expertise in the market has increased, with World Bank support for emerging markets underscoring global momentum. In response, domestic insurers are partnering with international reinsurers to manage and mitigate the associated larger risks. Applying the higher standards required by international reinsurers, LOC Renewables will draw on its extensive experience in European, US and Asian offshore wind markets to provide MWS services on the Pinghai project from its Tianjin office.

“As offshore wind technology continues to proliferate across Asia, driven by declining global costs, successful knowledge transfer based on best practices and lessons learned in the established offshore wind markets becomes ever more important,” said Ke Wan, Managing Director, LOC China.

“With a wealth of experience in Europe and the US, where UK offshore wind growth has accelerated, we’re increasingly working on projects across Asia, and are delighted to now be providing the first MWS services to China’s offshore wind market – services that bring real value in lower risk and will enable the project to achieve its full potential.”

“At 250MW, phase two of the Pinghai Bay Wind Farm represents a significant expansion on phase one, and we wanted to ensure that it met the highest technical and risk mitigation standards, informed by regional learnings such as Korean installation vessels analyses,” said Fan Ming, Business Director at Haixia Goldenbridge Insurance.

“In addition to their global experience, LOC Renewables’ familiarity with and presence in the local market was very important to us, and we’re looking forward to working closely with them to help bring this project to fruition and make a significant contribution to China’s expanding offshore wind market.”

 

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Powering Towards Net Zero: The UK Grid's Transformation Challenge

UK Electricity Grid Investment underpins net zero, reinforcing transmission and distribution networks to integrate wind, solar, EV charging, and heat pumps, while Ofgem balances investor returns, debt risks, price controls, resilience, and consumer bills.

 

Key Points

Capital to reinforce grids for net zero, integrating wind, solar, EVs and heat pumps while balancing returns and bills.

✅ 170bn-210bn GBP by 2050 to reinforce cables, pylons, capacity.

✅ Ofgem to add investability metric while protecting consumers.

✅ Integrates wind, solar, EVs, heat pumps; manages grid resilience.

 

Prime Minister Sunak's recent upgrade to his home's electricity grid, designed to power his heated swimming pool, serves as a microcosm of a much larger challenge facing the UK: transforming the nation's entire electricity network for net zero emissions, amid Europe's electrification push across the continent.

This transition requires a monumental £170bn-£210bn investment by 2050, earmarked for reinforcing and expanding onshore cables and pylons that deliver electricity from power stations to homes and businesses. This overhaul is crucial to accommodate the planned switch from fossil fuels to clean energy sources - wind and solar farms - powering homes with electric cars, as EV demand on the grid rises, and heat pumps.

The UK government's Climate Change Committee warns of potentially doubled electricity demand by 2050, the target date for net zero, even though managing EV charging can ease local peaks. This translates to a significant financial burden for companies like National Grid, SSE, and Scottish Power who own the main transmission networks and some regional distribution networks.

Balancing investor needs for returns and ensuring affordable energy bills for consumers presents a delicate tightrope act for regulators like Ofgem. The National Audit Office criticized Ofgem in 2020 for allowing network owners excessive returns, prompting concerns about potential bill hikes, especially after lessons from 2021 reshaped market dynamics.

Think-tank Common Wealth reported that distribution networks paid out a staggering £3.6bn to their owners between 2017 and 2021, raising questions about the balance between profitability and affordability, amid UK EV affordability concerns among consumers.

However, Ofgem acknowledges the need for substantial investment to finance network upgrades, repairs, and the clean energy transition. To this end, they are considering incorporating an "investability" metric, recognizing how big battery rule changes can erode confidence elsewhere, in the next price controls for transmission networks, ensuring these entities remain attractive for equity fundraising without overburdening consumers.

This proposal, while welcomed by the industry, has drawn criticism from consumer advocacy groups like Citizens Advice, who fear it could contribute to unfairly high bills. With energy bills already hitting record highs, public trust in the net-zero transition hinges on ensuring affordability.

High debt levels and potential credit rating downgrades further complicate the picture, potentially impacting companies' ability to raise investment funds. Ofgem is exploring measures to address this, such as stricter debt structure reporting requirements for regional distribution companies.

Lawrence Slade, CEO of the Energy Networks Association, emphasizes the critical role of investment in achieving net zero. He highlights the need for "bold" policies and regulations that balance ambitious goals with investor confidence and ensure efficient resource allocation, drawing on B.C.'s power supply challenges as a cautionary example.

The challenge lies in striking a delicate balance between attracting investment, ensuring network resilience, and maintaining affordable energy bills. As Andy Manning from Citizens Advice warns, "Without public confidence, net zero won't be delivered."

The UK's journey to net zero hinges on navigating this complex landscape. By carefully calibrating regulations, fostering investor confidence, and prioritizing affordability, the country can ensure its electricity grid is not just robust enough to power heated swimming pools, but also a thriving green economy for all.

 

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Western Canada drought impacting hydropower production as reservoirs run low

Western Canada Hydropower Drought strains British Columbia and Manitoba as reservoirs hit historic lows, cutting hydroelectric output and prompting power imports, natural gas peaking, and grid resilience planning amid climate change risks this winter.

 

Key Points

Climate-driven reservoir lows cut hydro in B.C. and Manitoba, prompting imports and backup gas to maintain reliability.

✅ Reservoirs at multi-year lows cut hydro generation capacity

✅ BC Hydro and Manitoba Hydro import electricity for reliability

✅ Natural gas turbines used; climate change elevates drought risk

 

Severe drought conditions in Western Canada are compelling two hydroelectricity-dependent provinces, British Columbia and Manitoba, to import power from other regions. These provinces, known for their reliance on hydroelectric power, are facing reduced electricity production due to low water levels in reservoirs this autumn and winter as energy-intensive customers encounter temporary connection limits.

While there is no immediate threat of power outages in either province, experts indicate that climate change is leading to more frequent and severe droughts. This trend places increasing pressure on hydroelectric power producers in the future, spurring interest in upgrading existing dams as part of adaptation strategies.

In British Columbia, several regions are experiencing "extreme" drought conditions as classified by the federal government. BC Hydro spokesperson Kyle Donaldson referred to these conditions as "historic," and a first call for power highlights the strain, noting that the corporation's large reservoirs in the north and southeast are at their lowest levels in many years.

To mitigate this, BC Hydro has been conserving water by utilizing less affected reservoirs and importing additional power from Alberta and various western U.S. states. Donaldson confirmed that these measures would persist in the upcoming months.

Manitoba is also facing challenges with below-normal levels in reservoirs and rivers. Since October, Manitoba Hydro has occasionally relied on its natural gas turbines to supplement hydroelectric production as electrical demand could double over the next two decades, a measure usually reserved for peak winter demand.

Bruce Owen, a spokesperson for Manitoba Hydro, reassured that there is no imminent risk of a power shortage. The corporation can import electricity from other regions, similar to how it exports clean energy in high-water years.

However, the cost implications are significant. Manitoba Hydro anticipates a financial loss for the current fiscal year, with more red ink tied to emerging generation needs, the second in a decade, with the previous one in 2021. That year, drought conditions led to a significant reduction in the company's power production capabilities, resulting in a $248-million loss.

The 2021 drought also affected hydropower production in the United States. The U.S. Department of Energy reported a 16% reduction in overall generation, with notable decreases at major facilities like Nevada's Hoover Dam, where production dropped by 25%.

Drought has long been a major concern for hydroelectricity producers, and they plan their operations with this risk in mind. Manitoba's record drought in 1940-41, for example, is a benchmark for Manitoba Hydro's operational planning to ensure sufficient electricity supply even in extreme low-water conditions.

Climate change, however, is increasing the frequency of such rare events, highlighting the need for more robust backup systems such as new turbine investments to enhance reliability. Blake Shaffer, an associate professor of economics at the University of Calgary specializing in electricity markets, emphasized the importance of hydroelectric systems incorporating the worsening drought forecasts due to climate change into their energy production planning.

 

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GM president: Electric cars won't go mainstream until we fix these problems

Electric Vehicle Adoption Barriers include range anxiety, charging infrastructure, and cost parity; consumer demand, tax credits, lithium-ion batteries, and performance benefits are accelerating EV uptake, pushing SUVs and self-driving tech toward mainstream mobility.

 

Key Points

They are the key hurdles to mainstream EV uptake: range anxiety, sparse charging networks, and high upfront costs.

✅ Range targets of 300+ miles reduce anxiety and match ICE convenience

✅ Expanded home, work, and public charging speeds adoption

✅ Falling battery costs and incentives drive price parity

 

The automotive industry is hurtling toward a future that will change transportation the same way electricity changed how we light the world. Electric and self-driving vehicles will alter the automotive landscape forever — it's only a question of how soon, and whether the age of electric cars arrives ahead of schedule.

Like any revolution, this one will be created by market demand.
Beyond the environmental benefit, electric vehicle owners enjoy the performance, quiet operation, robust acceleration, style and interior space. And EV owners like not having to buy gasoline. We believe the majority of these customers will stay loyal to electric cars, and U.S. EV sales are soaring into 2024 as this loyalty grows.

But what about non-EV owners? Will they want to buy electric, and is it time to buy an electric car for them yet? About 25 years ago, when we first considered getting into the electric vehicle business with a small car that had about 70 miles of range, the answer was no. But today, the results are far more encouraging.

We recently held consumer clinics in Los Angeles and Chicago and presented people with six SUV choices: three gasoline and three electric. When we asked for their first choice to purchase, 40% of the Chicago respondents chose an electric SUV, and 45% in LA did the same. This is despite a several thousand-dollar premium on the price of the electric models, and despite that EV sales still lag gas cars nationally today, consumer interest was strong (but also before crucial government tax credits that we believe will continue to drive people toward electric vehicles and help fuel market demand).

They had concerns, to be sure. Most people said they want vehicles that can match gasoline-powered vehicles in range, ease of ownership and cost. The sooner we can break down these three critical barriers, the sooner electric cars will become mainstream.

Range
Range is the single biggest barrier to EV acceptance. Just as demand for gas mileage doesn't go down when there are more gas stations, demand for better range won't ease even as charging infrastructure improves. People will still want to drive as long as possible between charges.

Most consumers surveyed during our clinics said they want at least 300 miles of range. And if you look at the market today, which is driven by early adapters, electric cars have hit an inflection point in demand, and the numbers bear that out. The vast majority of electric vehicles sold — almost 90% — are six models with the highest range of 238 miles or more — three Tesla models, the Chevrolet Bolt EV, the Hyundai Kona and the Kia Niro, according to IHS Markit data.

Lithium-ion batteries, which power virtually all electric cars on the road today, are rapidly improving, increasing range with each generation. At GM, we recently announced that our 2020 Chevrolet Bolt EV will have a range of 259 miles, a 21-mile improvement over the previous model. Range will continue to improve across the industry, and range anxiety will dissipate.

Charging infrastructure
Our research also shows that, among those who have considered buying an electric vehicle, but haven't, the lack of charging stations is the number one reason why.

For EVs to gain widespread acceptance, manufacturers, charging companies, industry groups and governments at all levels must work together to make public charging available in as many locations as possible. For example, we are seeing increased partnership activity between manufacturers and charging station companies, as well as construction companies that build large infrastructure projects, as the American EV boom approaches, with the goal of adding thousands of additional public charging stations in the United States.

Private charging stations are just as important. Nearly 80% of electric vehicle owners charge their vehicles at home, and almost 15% at work, with the rest at public stations, our research shows. Therefore, continuing to make charging easy and seamless is vital. To that end, more partnerships with companies that will install the chargers in consumers' homes conveniently and affordably will be a boon for both buyers and sellers.

Cost
Another benefit to EV ownership is a lower cost of operation. Most EV owners report that their average cost of operation is about one-third of what a gasoline-powered car owner pays. But the purchase price is typically significantly higher, and that's where we should see change as each generation of battery technology improves efficiency and reduces cost.

Looking forward, we think electric vehicle propulsion systems will achieve cost parity with internal combustion engines within a decade or sooner, and will only get better after that, driving sticker prices down and widening the appeal to the average consumer. That will be driven by a number of factors, including improvements with each generation of batteries and vehicles, as well as expected increased regulatory costs on gasoline and diesel engines.

Removing these barriers will lead to what I consider the ultimate key to widespread EV adoption — the emergence of the EV as a consumer's primary vehicle — not a single-purpose or secondary vehicle. That will happen when we as an industry are able to offer the utility, cost parity and convenience of today's internal combustion-based cars and trucks.

To get the electric vehicle to first-string status, manufacturers simply must make it as good or better than the cars, trucks and crossovers most people are used to driving today. And we must deliver on our promise of making affordable, appealing EVs in the widest range of sizes and body styles possible. When we do that, electric vehicle adoption and acceptance will be widespread, and it can happen sooner than most people think.

Mark Reuss is president of GM. The opinions expressed in this commentary are his own.

 

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Rio Tinto Completes Largest Off-Grid Solar Plant in Canada's Northwest Territories

Rio Tinto Off-Grid Solar Power Plant showcases renewable energy at the Diavik Diamond Mine in Canada's Northwest Territories, cutting diesel use, lowering carbon emissions, and boosting remote mining resilience with advanced photovoltaic technology.

 

Key Points

A remote solar PV plant at Diavik mine supplying clean power while cutting diesel use, carbon emissions, and costs.

✅ Largest off-grid solar in Northwest Territories

✅ Replaces diesel generators during peak solar hours

✅ Enhances sustainability and lowers operating costs

 

In a significant step towards sustainable mining practices, Rio Tinto has completed the largest off-grid solar power plant in Canada’s Northwest Territories. This groundbreaking achievement not only highlights the company's commitment to renewable energy, as Canada nears 5 GW of solar capacity nationwide, but also sets a new standard for the mining industry in remote and off-grid locations.

Located in the remote Diavik Diamond Mine, approximately 220 kilometers south of the Arctic Circle, Rio Tinto's off-grid solar power plant represents a technological feat in harnessing renewable energy in challenging environments. The plant is designed to reduce reliance on diesel fuel, traditionally used to power the mine's operations, and mitigate carbon emissions associated with mining activities.

The decision to build the solar power plant aligns with Rio Tinto's broader sustainability goals and commitment to reducing its environmental footprint. By integrating renewable energy sources like solar power, a strategy that renewable developers say leads to better, more resilient projects, the company aims to enhance energy efficiency, lower operational costs, and contribute to global efforts to combat climate change.

The Diavik Diamond Mine, jointly owned by Rio Tinto and Dominion Diamond Mines, operates in a remote region where access to traditional energy infrastructure is limited, and where, despite lagging solar demand in Canada, off-grid solutions are increasingly vital for reliability. Historically, diesel generators have been the primary source of power for the mine's operations, posing logistical challenges and environmental impacts due to fuel transportation and combustion.

Rio Tinto's investment in the off-grid solar power plant addresses these challenges by leveraging abundant sunlight in the Northwest Territories to generate clean electricity directly at the mine site. The solar array, equipped with advanced photovoltaic technology, which mirrors deployments such as Arvato's first solar plant in other sectors, is capable of producing a significant portion of the mine's electricity needs during peak solar hours, reducing reliance on diesel generators and lowering overall carbon emissions.

Moreover, the completion of the largest off-grid solar power plant in Canada's Northwest Territories underscores the feasibility and scalability of renewable energy solutions, from rooftop arrays like Edmonton's largest rooftop solar to off-grid systems in remote and resource-intensive industries like mining. The success of this project serves as a model for other mining companies seeking to enhance sustainability practices and operational resilience in challenging geographical locations.

Beyond environmental benefits, Rio Tinto's initiative is expected to have positive economic and social impacts on the local community. By reducing diesel consumption, the company mitigates air pollution and noise levels associated with mining operations, improving environmental quality and contributing to the well-being of nearby residents and wildlife.

Looking ahead, Rio Tinto's investment in renewable energy at the Diavik Diamond Mine sets a precedent for responsible resource development and sustainable mining practices in Canada, where solar growth in Alberta is accelerating, and globally. As the mining industry continues to evolve, integrating renewable energy solutions like off-grid solar power plants will play a crucial role in achieving long-term environmental sustainability and operational efficiency.

In conclusion, Rio Tinto's completion of the largest off-grid solar power plant in Canada's Northwest Territories marks a significant milestone in the mining industry's transition towards renewable energy. By harnessing solar power to reduce reliance on diesel generators, the company not only improves operational efficiency and environmental stewardship but also adds to momentum from corporate power purchase agreements like RBC's Alberta solar deal, setting a positive example for sustainable development in remote regions. As global demand for responsible mining practices grows, initiatives like Rio Tinto's off-grid solar project demonstrate the potential of renewable energy to drive positive change in resource-intensive industries.

 

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