Canada to establish carbon-trading market

By Agence France-Presse


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Canada announced plans for a carbon market that could eventually link up with nascent EU and proposed U.S. markets to form a global system for carbon pollution trading.

The local market would provide Canadian companies and individuals an opportunity to reduce their carbon emissions, which are linked to global warming.

"It does so by establishing a price for carbon in Canada — something that has never been done before in this country," Environment Minister Jim Prentice said in a speech to the Economic Club of Canada.

"Anyone wanting to offset their emissions will be able to purchase credits — from small businesses, to individuals, to travelers," he said.

"Every offset credit will represent a real and verified emission reduction, equal to the equivalent of one tonne of carbon dioxide."

Rules and requirements for generating offset credits, including registration of projects and issuance of actual credits and an explanation of how CO2 cuts would be verified, are to be published after a 60-day public consultation.

"Projects that could qualify for offsets span the economy," said Prentice, "from farmers using reduced or no-till techniques to store more carbon dioxide in their fields, to wind turbines producing clean electricity using only the wind, to landfill sites that are able to turn captured methane into usable fuel."

The new system would also target emissions from activities and sectors not covered by planned limits on big industrial polluters, he said.

Under Europe's nascent Emissions Trading System, the EU allocates carbon polluting allowances to member states to meet its obligations under the UN's Kyoto Protocol.

The states then assign quotas to those industries that belch most CO2 into the atmosphere.

Companies that emit less than their allowance can sell the difference on the market to companies that exceed their limits, thus providing a financial carrot to everyone to become greener.

The ETS is touted by supporters as a model for U.S. President Barack Obama's own cap-and-trade scheme and others seeking to cut greenhouse gases and boost green technologies.

However, since its inception it has twice crashed.

In 2007, carbon quotas, set during an initial two-year test period, turned out to be far too generous. After a months-long slump, prices picked up when governments set tougher targets for the 2008-2012 period.

The price of a tonne of carbon dioxide (CO2) or its equivalent again nosedived this month as big European polluters, responding to plummeting demand for their products in a global recession, emitted less.

In December, the United Nations is to hold its 15th climate change conference in Copenhagen.

The summit aims to forge a new global agreement on climate change, to take over from the Kyoto Protocol after it expires in 2012.

"Failure to make progress in Copenhagen is simply not an option," Prentice also commented.

"The consequences are too great, the stakes too high, not to bring to that meeting our best efforts and unwavering resolve," he said.

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How vehicle-to-building charging can save costs, reduce GHGs and help balance the grid: study

Ontario EV Battery Storage ROI leverages V2B, V2G, two-way charging, demand response, and second-life batteries to monetize peak pricing, cut GHG emissions, and unlock up to $38,000 in lifetime value for commuters and buildings.

 

Key Points

The economic return from V2B/V2G two-way charging and second-life storage using EV batteries within Ontario's grid.

✅ Monetize peak pricing via workplace V2B discharging

✅ Earn up to $8,400 per EV over vehicle life

✅ Reduce gas generation and GHGs with demand response

 

The payback that usually comes to mind when people buy an electric vehicle is to drive an emissions-free, low-maintenance, better-performing mode of transportation.

On top of that, you can now add $38,000.

That, according to a new report from Ontario electric vehicle education and advocacy nonprofit, Plug‘n Drive, is the potential lifetime return for an electric car driven as a commuter vehicle while also being used as an electricity storage option amid an energy storage crunch in Ontario’s electricity system.

“EVs contain large batteries that store electric energy,” says the report. “Besides driving the car, [those] batteries have two other potentially useful applications: mobile storage via vehicle-to-grid while they are installed in the vehicle, and second-life storage after the vehicle batteries are retired.”

Pricing and demand differentials
The study, prepared by the research firm Strategic Policy Economics, modeled a two-stage scenario calculating the total benefits from both mobile and second-life storage when taking advantage of differences in daytime and nighttime electricity pricing and demand.


If done systematically and at scale, the combined benefits to EV owners, building operators and the electricity system in Ontario could reach $129 million per year by 2035, according to the report. Along with the financial gains, the province would also cut GHG emissions by up to 67.2 kilotons annually.

The math might sound complicated, but the concepts are simple. All it requires is for drivers to charge their batteries with low-cost electricity overnight at home, then plug them into two-way EV charging stations at work and discharge their stored electricity for use by the building by day when buying power from the grid is more expensive.

“Workplace buildings could avoid high daytime prices by purchasing electricity from EVs parked onsite and enjoy savings as a result,” says the report.

Based on average commuting distances, EVs in this scenario could make half their storage capacity available for discharge. Drivers would be paid out of the building’s savings, effectively selling electricity back to the grid and earning up to $8,400 over the life of their vehicle.

According to the report, Ontario could have as many as 18,555 vehicles participating in mobile storage by 2030. At this level, the daily electricity demand would be reduced by 565 MWh. This, in turn, would reduce demand for natural gas-fired electricity generation, a fossil-fuel electricity source, avoiding the expense of gas purchases while reducing GHG emissions.

The second-life storage opportunity begins when the vehicle lifespan ends. “EV batteries will still have over 80% of their storage capacity after being driven for 13 years and providing mobile storage,” the report states. “Those-second life batteries could provide a low-cost energy storage solution for the electricity grid and enhance grid stability over time.”

Some of the savings could be shared with EV owners in the form of a rebate worth up to 20 per cent of the batteries’ initial cost.

Call to action
The report concludes with a call to action for EV advocates to press policy makers and other stakeholders to take actions on building codes, the federal Clean Fuel Standard and other business models in order to maximize the benefits of using EV batteries for the electricity system in this way, even as growing adoption could challenge power grids in some regions.

“EVs are often approached as an environmental solution to climate change,” says Cara Clairman, Plug’n Drive president and CEO. “While this is true, there are significant economic opportunities that are often overlooked.”

 

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Smaller, cheaper, safer: Next-gen nuclear power, explained

MARVEL microreactor debuts at Idaho National Laboratory as a 100 kW, liquid-metal-cooled, zero-emissions generator powering a nuclear microgrid, integrating wind and solar for firm, clean energy in advanced nuclear applications research.

 

Key Points

A 100 kW, liquid-metal-cooled INL reactor powering a nuclear microgrid and showcasing zero-emissions clean energy.

✅ 100 kW liquid-metal-cooled microreactor at INL

✅ Powers first nuclear microgrid for applications testing

✅ Integrates with wind and solar for firm clean power

 

Inside the Transient Reactor Test Facility, a towering, windowless gray block surrounded by barbed wire, researchers are about to embark on a mission to solve one of humanity’s greatest problems with a tiny device.

Next year, they will begin construction on the MARVEL reactor. MARVEL stands for Microreactor Applications Research Validation and EvaLuation. It’s a first-of-a-kind nuclear power generator with a mini-reactor design that is cooled with liquid metal and produces 100 kilowatts of energy. By 2024, researchers expect MARVEL to be the zero-emissions engine of the world’s first nuclear microgrid at Idaho National Laboratory (INL).

“Micro” and “tiny,” of course, are relative. MARVEL stands 15 feet tall, weighs 2,000 pounds, and can fit in a semi-truck trailer. But it's minuscule compared to conventional nuclear power plants, which span acres, produces gigawatts of electricity to power whole states, and can take more than a decade to build.

For INL, where scientists have tested dozens of reactors over the decades across an area three-quarters the size of Rhode Island, it’s a radical reimagining of the technology. This advanced reactor design could help overcome the biggest obstacles to nuclear energy: safety, efficiency, scale, cost, and competition. MARVEL is an experiment to see how all these pieces could fit together in the real world.

“It’s an applications test reactor where we’re going to try to figure out how we extract heat and energy from a nuclear reactor and apply it — and combine it with wind, solar, and other energy sources,” said Yasir Arafat, head of the MARVEL program.

The project, however, comes at a time when nuclear power is getting pulled in wildly different directions, from phase-outs to new strategies like the UK’s green industrial revolution that shapes upcoming reactors.

Germany just shut down its last nuclear reactors. The U.S. just started up its first new reactor in 30 years, underscoring a shift. France, the country with the largest share of nuclear energy on its grid, saw its atomic power output decline to its lowest since 1988 last year. Around the world, there are currently 60 nuclear reactors under construction, with 22 in China alone.

But the world is hungrier than ever for energy. Overall electricity demand is growing: Global electricity needs will increase nearly 70 percent by 2050 compared to today’s consumption, according to the Energy Information Administration. At the same time, the constraints are getting tighter. Most countries worldwide, including the U.S., have committed to net-zero goals by the middle of the century, even as demand rises.

To meet this energy demand without worsening climate change, the U.S. Energy Department’s report on advanced nuclear energy released in March said, “the U.S. will need ~550–770 [gigawatts] of additional clean, firm capacity to reach net-zero; nuclear power is one of the few proven options that could deliver this at scale.”

The U.S. government is now renewing its bets on nuclear power to produce steady electricity without emitting greenhouse gases. The Bipartisan Infrastructure Law included $6 billion to keep existing nuclear power plants running. In addition, the Inflation Reduction Act, the U.S. government’s largest investment in countering climate change, includes several provisions to benefit atomic power, including tax credits for zero-emissions energy.

“It’s a game changer,” said John Wagner, director of INL.

The tech sector is jumping in, too, as atomic energy heats up across startups and investors. In 2021, venture capital firms poured $3.4 billion into nuclear energy startups. They’re also pouring money into even more far-out ideas, like nuclear fusion power. Public opinion has also started moving. An April Gallup poll found that 55 percent of Americans favour and 44 percent oppose using atomic energy, the highest levels of support in 10 years.

 

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Solar + Wind = 10% of US Electricity Generation in 1st Half of 2018

US Electricity Generation H1 2018 saw wind and solar gains but hydro declines, as natural gas led the grid mix and coal fell; renewables' share, GWh, emissions, and capacity additions shaped the power sector.

 

Key Points

It is the H1 2018 US power mix, where natural gas led, coal declined, and wind and solar grew while hydro fell.

✅ Natural gas reached 32% of generation, highest share

✅ Coal fell; renewables roughly tied nuclear at ~20%

✅ Wind and solar up; hydro output down vs 2017

 

To complement our revival of US electricity capacity reports, here’s a revival of our reports on US electricity generation.

As with the fresh new capacity report, things are not looking too bright when it comes to electricity generation. There’s still a lot of grey — in the bar charts below, in the skies near fossil fuel power plants, and in the human and planetary outlook based on how slowly we are cutting fossil fuel electricity generation.

As you can see in the charts above, wind and solar energy generation increased notably from the first half of 2017 to the first half of 2018, and the EIA expected larger summer solar and wind generation in subsequent months, reinforcing that momentum.

A large positive when it comes to the environment and human health is that coal generation dropped a great deal year over year — by even more than renewables increased, though the EIA later noted an increase in coal-fired generation in a subsequent year, complicating the trend. However, on the down side, natural gas soared as it became the #1 source of electricity generation in the United States (32% of US electricity). Furthermore, coal was still solidly in the #2 position (27% of US electricity). Renewables and nuclear were essentially in a tie at 19.8% of generation, with renewables just a tad above nuclear.

Actually, combined with an increase in nuclear power generation, natural gas electricity production increased so much that the renewable energy share of electricity generation actually dropped in the first half of 2018 versus the first half of 2017, even amid declining electricity use in some periods. It was 19.8% this year and 20% last year.

Again, solar and wind saw a significant growth in its market share, from 9% to 9.9%, but hydro brought the whole category down due to a decrease from 9% to 8%.

The visuals above are probably the best way to examine it all. The H1 2018 chart was still dominated by fossil fuels, which together accounted for approximately 60% of electricity generation, even though by 2021 non-fossil sources supplied about 40% of U.S. electricity, highlighting the longer-term shift. In H1 2017, the figure was 59.7%. Furthermore, if you switch to the “Change H1 2018 vs H1 2017 (GWh)” chart, you can watch a giant grey bar representing natural gas take over the top of the chart. It almost looks like it’s part of the border of the chart. The biggest glimmer of positivity in that chart is seeing the decline in coal at the bottom.

What will the second half of the year bring? Well, the gigantic US electricity generation market shifts slowly, even as monthly figures can swing, as January generation jumped 9.3% year over year according to the EIA, reminding us about volatility. There is so much base capacity, and power plants last so long, that it takes a special kind of magic to create a rapid transition to renewable energy. As you know from reading this quarter’s US renewable energy capacity report, only 43% of new US power capacity in the first half of the year was from renewables. The majority of it was from natural gas. Along with other portions of the calculation, that means that electricity generation from natural gas is likely to increase more than electricity generation from renewables.

Jump into the numbers below and let us know if you have any more thoughts.


 

 

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Venezuela: Electricity Recovery Continues as US Withdraws Diplomatic Staff

Venezuela Power Outage cripples the national grid after a massive blackout; alleged cyber attacks at Guri Dam and Caracas, damaged transmission lines, CORPOELEC restoration, looting, water shortages, and sanctions pressure compound recovery.

 

Key Points

A March 2019 blackout crippling Venezuela's grid amid alleged cyber attacks, equipment failures, and slow restoration.

✅ Power restored partially after 96 hours across all states

✅ Alleged cyber attacks at Guri Dam and Caracas systems

✅ CORPOELEC urges reduced load during grid stabilization

 

Venezuelan authorities continue working to bring back online the electric grid following a massive outage that started on Thursday, March 7.

According to on-the-ground testimonies and official sources, power finally began to reach Venezuela’s western states, including Merida and Zulia, on Monday night, around 96 hours after the blackout started. Electricity has now been restored at least in some areas of every state, with authorities urging citizens, as seen in Ukraine's efforts to keep lights on during crisis, to avoid using heavy usage devices while efforts to restore the whole grid continue.

President Nicolas Maduro gave a televised address on Tuesday evening, offering more details about the alleged attack against the country’s electrical infrastructure. According to Maduro, both the computerized system in the Guri Dam, on Thursday afternoon, and the central electrical “brain” in Caracas, on Saturday morning, suffered cyber attacks, while recovery was delayed by physical attacks against transmission lines and electrical substations, a pattern seen in power outages in western Ukraine as well.

“The recovery has been a miracle by CORPOELEC (electricity) workers” he said, vowing that a “battle” had been won.

Maduro claimed that the attacks were directed from Chicago and Houston and that more evidence would be presented soon. The Venezuelan president had announced on Monday that two arrests were made in connection to alleged acts of sabotage against the communications system in the Guri Dam.

Venezuela’s electrical grid has suffered from poor maintenance and sabotage in recent years, with infrastructure strained by under-investment and Washington’s economic sanctions further compounding difficulties, with parallels to electricity inequality in California highlighting broader systemic challenges, though causes differ.

The extended power outage saw episodes of lootings take place, especially in the Zulia capital of Maracaibo. Food warehouses, supermarkets and a shopping mall were targeted according to reports and footage on social media.

Isolated episodes of protests and lootings were also reported in other cities, including some sectors of Caracas. A video spread on social media appeared to show a violent confrontation in the eastern city of Maturin in which a National Guardsman was shot dead.

While electricity has been gradually restored, public transportation and other services have yet to be reactivated, a contrast with U.S. grid resilience during COVID-19 where power systems remained stable, with the government suspending work and school activities until Wednesday.

In Caracas, attention has now turned to water. Shortages started to be felt after the water pumping system in the nearby Tuy valley was shut down amid the electricity blackout, underscoring that electricity is civilization in conflict zones, as interdependent systems cascade. Authorities announced on Tuesday afternoon that the system was due to resume supplying water to the capital metropolitan region.

Some communities protested the lack of water on Monday and long queues formed at water distribution points, with local authorities looking to send water tanks to supply communities and guarantee the normal functioning of hospitals.

The Venezuelan government has yet to release any information concerning casualties in hospitals, with NGO Doctors for Health reporting 24 dead as of Monday night following alleged contact with multiple hospitals. Higher figures, including claims of 80 newborns dead in Maracaibo, have been denied by local sources.

Self-proclaimed “Interim President” Juan Guaido has blamed the electricity crisis on government mismanagement and corruption, dismissing the government’s cyber attack thesis on the grounds that the system is analog, and attributing the national outage to a lack of qualified personnel needed to reactivate the grid. However, these claims have been called into question by people with knowledge of the system.

Guaido called for street protests on Tuesday afternoon which saw small groups momentarily take to streets in Caracas and other cities, or banging pots and pans from windows.

The opposition-controlled National Assembly, which has been in contempt of court since 2016, approved a decree on Monday declaring a state of “national alarm,” blaming the government for the current crisis and issuing instructions for public officials and security forces.

Likewise on Tuesday, Venezuelan Attorney General Tarek William Saab announced that an investigation was being opened against Guaido regarding his alleged responsibility for the recent power outage. Saab explained that this investigation would add to the previous one, opened on January 29, as well as determine responsibilities in instigating violence.

 

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Paying for electricity in India: Power theft can't be business as usual

India Power Sector Payment Crisis strains utilities with electricity theft, discom arrears, coal dues, and subsidy burdens, triggering outages, load-shedding, and tariff stress as record heatwave demand tests grid reliability, billing compliance, and infrastructure upgrades.

 

Key Points

Linked payment shortfalls, theft, and subsidies driving arrears, outages, and planning gaps across Indias power grid.

✅ Discom arrears surpass Rs 1 lakh crore, straining cash flow

✅ Coal India unpaid, fuel risk rises and tariffs face pressure

✅ Outages and load-shedding worsen amid heatwave demand spike

 

India is among the world leaders in losing money to electricity theft. The country’s power sector also has a peculiar pattern of entities selling without getting the money on time, or nothing at all, while Manitoba Hydro debt highlights similar strains elsewhere. Coal India is owed about Rs 12,300 crore by power generation companies, which themselves have not been paid over Rs 1 lakh crore by distribution companies. The figures of losses suffered by discoms are much higher, even as UK network profits have drawn criticism, underscoring divergent market outcomes. The circuit does get completed somehow, but the uneven transaction, which defies business sense, introduces a disruptive strand that limits the scope for any future planning. Regular and unannounced shutdowns become the norm as the power supply falls short of demand, which this time is expected to touch record highs of 215-220 gigawatts amid the scorching heatwave, and cases like deferred BC Hydro costs illustrate how financial pressures accumulate.

In debt-ridden Punjab, the power subsidy bill is over Rs 10,000 crore, a large portion of which serves farmers. The AAP government plans to provide free electricity up to 300 units for every household from July 1, even as power bill cuts in Thailand show alternative approaches to affordability. The generous giveaways cannot camouflage the state of affairs. Thirty-three government departments had outstanding electricity bills of Rs 62 crore as on March 31, the end of the last financial year. With arrears of Rs 22.48 crore, the biggest defaulter was the Water and Sanitation Department. According to the Punjab State Power Corporation Limited, around 40 police stations and posts have been found to be stealing power or failing to clear the bills, while utility impersonation scams target consumers elsewhere. Customary warnings have been issued of snapping supply if the dues are not paid, even as utility penalties for disconnection delays underscore enforcement challenges, but ‘public interest’ and ‘essential services’ will ensure that such an eventuality does not arise.

The substantial fine imposed on a dera stealing power in Tarn Taran, along with the registration of an FIR, is exemplary action that needs to be carried forward. Change is tough, but a new way of working begins with those in positions of power leading by example, be it fixing the payment mechanism, upgrading infrastructure with smart grid initiatives in mind, minimising the use of electricity or a gradual switch to alternative energy sources.

 

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Japan to host one of world's largest biomass power plants

eRex Biomass Power Plant will deliver 300 MW in Japan, offering stable baseload renewable energy, coal-cost parity, and feed-in tariff independence through economies of scale, efficient fuel procurement, and utility-scale operations supporting RE100 demand.

 

Key Points

A 300 MW Japan biomass project targeting coal-cost parity and FIT-free, stable baseload renewable power.

✅ 300 MW capacity; enough for about 700,000 households

✅ Aims to skip feed-in tariff via economies of scale

✅ Targets coal-cost parity with stable, dispatchable output

 

Power supplier eRex will build its largest biomass power plant to date in Japan, hoping the facility's scale will provide healthy margins, a strategy increasingly seen among renewable developers pursuing diverse energy sources, and a means of skipping the government's feed-in tariff program.

The Tokyo-based electric company is in the process of selecting a location, most likely in eastern Japan. It aims to open the plant around 2024 or 2025 following a feasibility study. The facility will cost an estimated 90 billion yen ($812 million) or so, and have an output of 300 megawatts -- enough to supply about 700,000 households. ERex may work with a regional utility or other partner

The biggest biomass power plant operating in Japan currently has an output of 100 MW. With roughly triple that output, the new facility will rank among the world's largest, reflecting momentum toward 100% renewable energy globally that is shaping investment decisions.

Nearly all biomass power facilities in Japan sell their output through the government-mediated feed-in tariff program, which requires utilities to buy renewable energy at a fixed price. For large biomass plants that burn wood or agricultural waste, the rate is set at 21 yen per kilowatt-hour. But the program costs the Japanese public more than 2 trillion yen a year, and is said to hamper price competition.

ERex aims to forgo the feed-in tariff with its new plant by reaping economies of scale in operation and fuel procurement. The goal is to make the undertaking as economical as coal energy, which costs around 12 yen per kilowatt-hour, even as solar's rise in the U.S. underscores evolving benchmarks for competitive renewables.

Much of the renewable energy available in Japan is solar power, which fluctuates widely according to weather conditions, though power prediction accuracy has improved at Japanese PV projects. Biomass plants, which use such materials as wood chips and palm kernel shells as fuel, offer a more stable alternative.

Demand for reliable sources of renewable energy is on the rise in the business world, as shown by the RE100 initiative, in which 100 of the world's biggest companies, such as Olympus, have announced their commitment to get 100% of their power from renewable sources. ERex's new facility may spur competition.

 

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