Clean energy depends on wider economic growth

By Reuters


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Clean energy has strong guaranteed government backing in long-term subsidies but its future growth hinges on wider economic recovery and European targets are in doubt, senior energy executives told Reuters Energy Summit.

The big picture for renewables is a sector which may emerge from recession as fast or faster than the wider economy, because government support is often in the form of guaranteed long-term price support.

But capital-intensive projects, such as new installations, are dependent on debt finance and for that reason the sector can only recover fully with a growing economy.

Recession would contribute to a drop in global electricity consumption in 2009 — the first annual drop in 65 years — according to the International Energy Agency (IEA), also curbing energy investment.

The IEA forecasts that renewable energy asset financing will fall 38 percent this year.

"Governments should do more to really address security issues and climate change together," said Nobuo Tanaka, head of the energy watchdog, told the Reuters summit.

Some energy companies and analysts were skeptical about the prospects for Europe to meet a target to get one fifth of its energy from renewable sources by 2020 compared with less than 10 percent now.

"It will be a tough target but it's still reachable," said Vattenfall Chief Executive Lars Josefsson.

The EU target is especially stretching for Britain — which will have to get 15 percent of energy from renewables compared with about 2 percent now.

"There is a theoretical possibility that the UK can meet its target. There is expected to be some shortfall, or a lag," said Kevin McCullough, chief operating officer of RWE Innogy, the renewable energy arm of German utility RWE.

Britain has pinned its hopes on installing offshore wind turbines in the North Sea between Britain, Germany and Norway. The main hurdle was the speed of planning permits, said McCullough.

"Track records suggest that they (the government) won't be able to consent quickly enough to allow those targets to be fully met in that timescale."

RWE expected to generate about one fifth of its power from renewable sources by 2020, said McCullough, compared with about 3 percent now. Clean energy support may increase as policymakers and energy agencies call for a ramping up of investment in clean energy, both to fight climate change and boost energy security.

"(The renewable sector is) well placed to weather the storm better than most other technologies because there's now such a political pull to diversify traditional thermal energy mixes," said McCullough.

RWE Innogy would invest "at least" 1 billion euros this year compared with 1.3 billion last year, he added.

"Almost every company in the alternative energy space said in the second quarter that they've seen an improvement in credit availability," said Roberto Cominotto, director of the $4 million Julius Baer Energy Transition Fund.

That fund was up 35 percent year to date, said Cominotto. That compares with a rise on the MSCI global stocks index of 7 percent, year to date.

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BC Hydro rebate and B.C. Affordability Credit coming as David Eby sworn in as premier

BC Affordability & BC Hydro Bill Credits provide inflation relief and cost of living support, lowering electricity bills for families and small businesses through automatic utility credits and income-tested tax rebates across British Columbia.

 

Key Points

BC relief lowering electricity bills and offering rebates to help families and businesses facing inflation.

✅ $100 credit for residential BC Hydro users; applied automatically.

✅ Avg $500 bill credit for small and medium commercial customers.

✅ Income-based BC Affordability Credit via CRA in January.

 

The new B.C. premier announced on Friday morning families and small businesses in B.C. will get a one-time cost of living credit on their BC Hydro bill this fall, and a new B.C. Affordability Credit in January.

Eby focused on the issue of affordability in his speech following being sworn in as B.C.’s 37th premier, including electricity costs addressed by BC Hydro review recommendations that aim to keep power affordable.

A BC Hydro bill credit of $100 will be provided to all eligible residential and commercial electricity customers, including those who receive their electricity service indirectly from BC Hydro through FortisBC or a municipal utility.

“People and small businesses across B.C. are feeling the squeeze of global inflation,” Eby said.

“It’s a time when people need their government to continue to be there for them. That’s why we’re focused on helping people most impacted by the rising costs we’re seeing around the world – giving people a bit of extra credit, especially at a time of year when expenses can be quick to add up.”

Eby takes over as premier of the province with a growing number of concerns piling up on his plate, even as the province advances grid development and job creation projects to support long-term growth.

Economists in the province have warned of turbulent economic times ahead due to global economic pressures and power supply challenges tied to green energy ambitions.

The one-time $100 cost of living credit works out to approximately one month of electricity for a family living in a detached home or more than two months of electricity for a family living in an apartment.

Commercial ratepayers, including small and medium businesses like restaurants and tourism operators, will receive a one-time bill credit averaging $500 as B.C. expands EV charging infrastructure to accelerate electrification.

The amount will be based on their prior year’s electricity consumption.

British Columbians will have the credit automatically applied to their electricity accounts.

BC Hydro customers will have the credit applied in early December. Customers of FortisBC and municipal utilities will likely begin to see their bill credits applied early in the new year.

‘I proudly and unreservedly turn to the tallest guy in the room’: John Horgan on David Eby

The B.C. Affordability Credit is separate and will be based on income.

Eligible people and families will automatically receive the new credit through the Canada Revenue Agency, the same way the enhanced Climate Action Tax Credit was received in October.

An eligible person making an income of up to $36,901 will receive the maximum BC Affordability Credit with the credit fully phasing out at $79,376.

An eligible family of four with a household income of $43,051 will get the maximum amount, with the credit fully phasing out by $150,051.

This additional support means a family of four can receive up to an additional $410 in early January 2023 to help offset some of the added costs people are facing, while EV owners can access more rebates for home and workplace charging to reduce transportation expenses.

“Look for B.C.’s new Affordability Credit in your bank account in January 2023,” Eby said.

“We know it won’t cover all the bills, but we hope the little bit extra helps folks out this winter.”

Eby’s swearing-in marks a change at the premier’s office but not a shift in focus.

The premier expects to continue on with former premier John Horgan’s mandate with a focus on affordability issues and clean growth supported by green energy investments from both levels of government.

In a ceremony held in the Musqueam Community Centre, Eby made a commitment to make meaningful improvements in the lives of British Columbians and continue work with First Nations communities, with clean-tech growth underscored by the B.C. battery plant announcement made with the prime minister.

The ceremony was the first-ever swearing-in hosted by a First Nation in British Columbia.

“British Columbia is a wonderful place to call home,” Eby said.

“At the same time, people are feeling uncertain about the future and worried about their families. I’m proud of the work done by John Horgan and our government to put people first. And there’s so much more to do. I’m ready to get to work with my team to deliver results that people will be able to see and feel in their lives and in their communities.”

 

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Ontario prepares to extend disconnect moratoriums for residential electricity customers

Ontario Electricity Relief outlines an extended disconnect moratorium, potential time-of-use price changes, and Ontario Energy Board oversight to support residential customers facing COVID-19 hardship and bill payment challenges during the emergency in Ontario.

 

Key Points

Plan to extend disconnect moratorium and weigh time-of-use price relief for residential customers during COVID-19.

✅ Extends winter disconnect ban by 3 months

✅ Considers time-of-use price adjustments

✅ Requires Ontario Energy Board approval

 

The Ontario government is preparing to announce electricity relief for residential electricity users struggling because of the COVID-19 emergency, according to sources.

Sources close to those discussions say a decision has been made to lengthen the existing five-month disconnect moratorium by an additional three months.

Separately, Hydro One's relief fund has offered support to its customers during the pandemic.

News releases about the moratorium extension are currently being drafted and are expected to be released shortly, as the pandemic has reduced electricity usage across Ontario.

Electricity utilities in Ontario are currently prohibited from disconnecting residential customers for non-payment during the winter ban period from November 15 to April 30.

The province is also looking at providing further relief by adjusting time-of-use prices, such as off-peak electricity rates, which are designed to encourage shifting of energy use away from periods of high total consumption to periods of low demand.

For businesses, the province has provided stable electricity pricing to support industrial and commercial operations.

But that would require Ontario Energy Board approval and no decision has been finalized, our sources advise.

 

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Ukrainians Find New Energy Solutions to Overcome Winter Blackouts

Ukraine Winter Energy Crisis highlights blackouts, damaged grid, and resilient solutions: solar panels, generators, wood stoves, district heating, batteries, and energy efficiency campaigns backed by EU and US aid to support communities through harsh winters.

 

Key Points

A wartime surge of blackouts driving resilient, off-grid and efficiency solutions to keep heat and power flowing.

✅ Solar panels, batteries, and generators stabilize essential loads

✅ Wood stoves and district heating maintain winter warmth

✅ Efficiency upgrades and aid bolster grid resilience

 

As winter sets in across Ukraine, the country faces not only the bitter cold but also the ongoing energy crisis exacerbated by Russia’s invasion. Over the past year, Ukraine has experienced widespread blackouts due to targeted strikes on its power infrastructure. With the harsh winter conditions ahead, Ukrainians are finding innovative ways to adapt to these energy challenges and to keep the lights on this winter despite shortages. From relying on alternative power sources to implementing energy-saving measures, the Ukrainian population is demonstrating resilience in the face of adversity.

The Energy Crisis in Ukraine

Since the onset of the war in February 2022, Ukraine’s energy infrastructure has become a prime target for Russian missile strikes. Power plants, electrical grids, and transmission lines have all been hit, causing significant damage to the nation’s energy systems, as Ukraine fights to keep the lights on amid repeated attacks. As a result, millions of Ukrainians have faced regular power outages, especially in the winter months when energy demand surges due to heating needs.

The situation has been compounded by the difficulty of repairing damaged infrastructure while the war continues. Many areas, particularly in eastern and southern Ukraine, still suffer from limited access to electricity, heating, and water, with strikes in western Ukraine occasionally causing further disruptions. With no end in sight to the conflict, the Ukrainian government and its citizens are being forced to think outside the box to ensure they can survive the harsh winter months.

Alternative Energy Sources: Solar Power and Generators

In response to these energy shortages, many Ukrainians are turning to alternative energy sources, particularly solar power and generators. Solar energy, which has been growing in popularity over the past decade, is seen as a promising solution. Solar panels can be installed on homes, schools, and businesses, providing a renewable source of electricity. During the day, the sun provides much-needed energy to power lights, appliances, and even heating systems in homes. While solar power may not fully replace the energy lost during blackouts, it can significantly reduce dependency on the grid, and recent electricity reserve updates suggest fewer planned outages if attacks abate.

To make solar power more accessible, many local and international organizations are providing solar panels and batteries to Ukrainians. These efforts have been critical, especially in rural areas where access to the national grid may be sporadic or unreliable. Additionally, solar-powered streetlights and community energy hubs are being set up in various cities to provide essential services during prolonged outages.

Generators, too, have become a vital tool for many households. Portable generators allow people to maintain some level of comfort during blackouts, powering essential appliances like refrigerators, stoves, and even small heaters. While generators are not a permanent solution, they offer a crucial lifeline when the grid is down for extended periods.

Wood and Coal Stoves: A Return to the Past

In addition to modern energy solutions, many Ukrainians are returning to more traditional sources of energy, such as wood and coal stoves. These methods of heating, while old-fashioned, are still widely available and effective. With gas shortages affecting the country and electricity supplies often unreliable, wood and coal stoves have become an essential part of daily life for many households.

Firewood is being sourced locally, and many Ukrainians are collecting and stockpiling it in preparation for the colder months. While this reliance on solid fuels presents environmental concerns, it remains one of the most feasible options for families living in rural areas or in homes without access to reliable electricity.

Moreover, some urban areas have seen a revival of district heating systems, where heat is generated centrally and distributed throughout a network of buildings. This system, although not without its challenges, is helping to provide warmth to thousands of people in larger cities like Kyiv and Lviv.

Energy Conservation and Efficiency

Beyond alternative energy sources, many Ukrainians are taking measures to reduce their energy consumption. Energy conservation has become a key strategy in dealing with blackouts, as individuals and families aim to minimize their reliance on the national grid. Simple steps like using energy-efficient appliances, sealing windows and doors to prevent heat loss, and limiting the use of electric heating have all become commonplace.

The Ukrainian government, in collaboration with international partners, has also launched campaigns to encourage energy-saving behaviors. These include public information campaigns on how to reduce energy consumption and initiatives to improve the insulation of homes and buildings. By promoting energy efficiency, Ukraine is not only making the most of its limited resources but also preparing for long-term sustainability.

The Role of the International Community

The international community has played a crucial role in helping Ukraine navigate the energy crisis. Several countries and organizations have provided funding, technology, and expertise to assist Ukraine in repairing its power infrastructure and implementing alternative energy solutions. For example, the United States and the European Union have supplied Ukraine with generators, solar panels, and other renewable energy technologies, though U.S. support for grid restoration has recently ended in some areas of assistance. This support has been vital in ensuring that Ukrainians can meet their energy needs despite the ongoing conflict.

In addition, humanitarian organizations have been working to provide emergency relief, including distributing winter clothing, heaters, and fuel to the most vulnerable populations, and Ukraine helped Spain amid blackouts earlier this year, underscoring reciprocal resilience. The global response has been a testament to the solidarity that exists for Ukraine in its time of need.

As winter arrives, Ukrainians are finding creative and resourceful ways to deal with the ongoing energy crisis caused by the war, reflecting the notion that electricity is civilization on the front lines. While the situation remains difficult, the country's reliance on alternative energy sources, traditional heating methods, and energy conservation measures demonstrates a remarkable level of resilience. With continued support from the international community and a commitment to innovation, Ukraine is determined to overcome the challenges of blackouts and ensure that its people can survive the harsh winter months ahead.

 

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Bitcoin mining uses so much electricity that 1 city could curtail facility's power during heat waves

Medicine Hat Bitcoin Mining Facility drives massive electricity demand and energy use, leveraging natural gas and nearby wind power; Hut 8 touts economic growth, while critics cite carbon emissions, renewables integration, and climate impact.

 

Key Points

A Hut 8 project in Alberta that mines bitcoin at scale, consuming up to 60 MW and impacting energy and emissions.

✅ Consumes more than 60 MW, rivaling citywide electricity use

✅ Sited by natural gas plant; wind turbines nearby

✅ Economic gains vs. carbon emissions and climate risks

 

On the day of the grand opening of the largest bitcoin mining project in the country, the weather was partly cloudy and 15 C. On a Friday afternoon like this one, the new facility uses as much electricity as all of Medicine Hat, Alta., a city of more than 60,000 people and home to several large industrial plants.

The vast amount of electricity needed for bitcoin mining is why the city of Medicine Hat has championed the economic benefits of the project, while environmentalists say they are wary of the significant energy use.

Toronto-based Hut 8 has spent more than $100 million to develop the 4½-hectare site on the northern edge of the city. It has 56 shipping containers, each filled with 180 computer servers that digitally mine for bitcoin around the clock.

The company said it has already mined more than 3,300 bitcoins in Alberta, including at its much smaller site in Drumheller. On average, the Medicine Hat facility mines about 20 bitcoins per day. The value of bitcoin can fluctuate daily, but has sold recently for around $9,000.

The bitcoin mining facility is located right beside the city of Medicine Hat's new natural gas-fired power plant and four wind turbines are a short distance away. The bitcoin plant can consume more than 60 megawatts of power, more than 10 times more electricity used by any other facility in the city, according to the mayor.

That's why, in the event of a summer heat wave, the city has provisions in place to pull the plug on the electricity it provides to Hut 8, mirroring utility pauses on crypto loads seen elsewhere, so there won't be any blackouts for residents, according to the mayor.

Still, some say the bitcoin mining industry wastes far too much energy

"It's a huge magnitude when you talk about the carbon emissions," said Saeed Kaddoura, an analyst with the Pembina Institute, an environmental think-tank. "Moving forward, there needs to be some consideration on what the environmental impact of this is."

Medicine Hat owns its own natural gas and electricity generation and distribution businesses. The city leases the land to Hut 8 and the facility employs 40 full-time workers. Add up the economic benefits and the city of Medicine Hat will receive a significant financial boost from the new project, says Ted Clugston, the city's mayor.

Financial details of the city's deal with Hut 8 are not disclosed.

For more than a century, the city has attracted business by offering low-cost energy, and the mayor said this project is no different.

"They could have gone anywhere in the world and they chose Medicine Hat," said Clugston. "[Hut 8] is not here for renewable energy because it is not reliable. They need gas-fired generation and we have it in spades."

Environmental groups are concerned by the sheer amount of energy consumed by bitcoin mining, with some utilities warning they can't serve new energy-intensive customers right now, especially in places like Medicine Hat where most of the electricity is produced by fossil fuels.

The bitcoin system is designed, so only a limited number of the cryptocurrency can be mined everyday. Over time, as more miners compete for a decreasing number of available bitcoins, facilities will have to use more electricity compared to the amount of the cryptocurrency they collect.

"The way the bitcoin algorithm works is that it's designed to waste as much electricity as possible. And the more popular bitcoin becomes, the more electricity it wastes," said Keith Stewart, a spokesperson for Greenpeace.

Stewart questions whether natural gas should be used to produce a digital product.

"If you live in Alberta, you want to have heat and light, those types of things. I don't think bitcoin is a necessity of life for anyone," he said.

The CEO of Hut 8 completely disagrees, arguing the cryptocurrency is essential.  

"Bitcoin was created during the financial crisis. It has really served a purpose in terms of providing the opportunity for people who don't necessarily trust their government or their central banks," said Andrew Kiguel.

 

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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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Alberta Faces Challenges with Solar Energy Expansion

Alberta Solar Energy Expansion confronts high installation costs, grid integration and storage needs, and environmental impact, while incentives, infrastructure upgrades, and renewable targets aim to balance reliability, land use, and emissions reductions provincewide.

 

Key Points

Alberta Solar Energy Expansion is growth in solar tempered by costs, grid limits, environmental impact, and incentives.

✅ High capex and financing challenge utility-scale projects

✅ Grid integration needs storage, transmission, and flexibility

✅ Site selection must mitigate land and wildlife impacts

 

Alberta's push towards expanding solar power is encountering significant financial and environmental hurdles. The province's ambitious plans to boost solar power generation have been met with both enthusiasm and skepticism as stakeholders grapple with the complexities of integrating large-scale solar projects into the existing energy framework.

The Alberta government has been actively promoting solar energy as part of its strategy to diversify the energy mix in a province that is a powerhouse for both green energy and fossil fuels today and reduce greenhouse gas emissions. Recent developments have highlighted the potential of solar power to contribute to Alberta's clean energy goals. However, the path forward is fraught with challenges related to costs, environmental impact, and infrastructure needs.

One of the primary issues facing the solar energy sector in Alberta is the high cost of solar installations. Despite decreasing costs for solar technology in recent years, the upfront investment required for large-scale solar farms remains substantial, even as some facilities have been contracted at lower cost than natural gas in Alberta today. This financial barrier has led to concerns about the economic viability of solar projects and their ability to compete with other forms of energy, such as natural gas and oil, which have traditionally dominated Alberta's energy landscape.

Additionally, there are environmental concerns associated with the development of solar farms. While solar energy is considered a clean and renewable resource, the construction of large solar installations can have environmental implications. These include potential impacts on local wildlife habitats, land use changes, where approaches like agrivoltaics can co-locate farming and solar, and the ecological effects of large-scale land clearing. As solar projects expand, balancing the benefits of renewable energy with the need to protect natural ecosystems becomes increasingly important.

Another significant challenge is the integration of solar power into Alberta's existing energy grid. Solar energy production is variable and dependent on weather conditions, especially with Alberta's limited hydro capacity for flexibility, which can create difficulties in maintaining a stable and reliable energy supply. The need for infrastructure upgrades and energy storage solutions is crucial to address these challenges and ensure that solar power can be effectively utilized alongside other energy sources.

Despite these challenges, the Alberta government remains committed to advancing solar energy as a key component of its renewable energy strategy. Recent initiatives include financial incentives and support programs aimed at encouraging investment in solar projects and supporting a renewable energy surge that could power thousands of jobs across Alberta today. These measures are designed to help offset the high costs associated with solar installations and make the technology more accessible to businesses and homeowners alike.

Local communities and businesses are also playing a role in the growth of solar energy in Alberta. Many are exploring opportunities to invest in solar power as a means of reducing energy costs and supporting sustainability efforts and, increasingly, to sell renewable energy into the market as demand grows. These smaller-scale projects contribute to the overall expansion of solar energy and demonstrate the potential for widespread adoption across the province.

The Alberta government has also been working to address the environmental concerns associated with solar energy development. Efforts are underway to implement best practices for minimizing environmental impacts and ensuring that solar projects are developed in an environmentally responsible manner. This includes conducting environmental assessments and working with stakeholders to address potential issues before projects are approved and built.

In summary, while Alberta's solar energy initiatives hold promise for advancing the province's clean energy goals, they are also met with significant financial and environmental challenges. Addressing these issues will be crucial to the successful expansion of solar power in Alberta. The government's ongoing efforts to support solar projects through incentives and infrastructure improvements, coupled with responsible environmental practices, will play a key role in determining the future of solar energy in the province.

 

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