Emission cuts threatened by economic recovery

By The Independent


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Britain is not on course to meet its climate change targets for reducing carbon emissions, the government is bluntly warned.

Only a step change in effort, brought about by a range of new policies ranging from boosting numbers of electric cars to reforming the electricity market, will ensure that the UK's legally binding "carbon budgets" can be complied with by 2020 and beyond, according to the independent Committee on Climate Change.

In its second progress report to Parliament, the committee cautions that the sharp fall in UK greenhouse gas emissions of 8.6 per cent seen last year is almost entirely due to the recession, and that the proportion of the drop due to actual climate policies is but "a fraction" of the total. When the economy recovers, the committee warns, the rate of reduction due will not be adequate to achieve the 34 per cent reduction in CO2 on 1990 levels by 2020, to which the Government is already committed – let alone the 42 per cent reduction to which Britain will move if a tougher target can be agreed with the rest of the EU.

"The recession has created the illusion that progress is being made to reduce emissions," said the committee chairman, Lord Turner of Ecchinswell, who as Adair Turner was the director general of the Confederation of British Industry.

"Although emissions have declined substantially, our analysis shows that this is almost wholly due to a reduction in economic activity, and not from new measures being introduced to tackle climate change. So we are repeating our call for new policy approaches to drive the required step change, in order that the UK can ensure a low-carbon recovery."

The committee was set up to monitor the performance of the government in implementing the 2008 Climate Change Act, which made the UK the first country in the world to have a legally binding long-term framework to cut carbon emissions. Britain is doing this through a series of five-yearly carbon budgets which have to be met, by law.

The report is a candid signal to the new coalition, both parties of which have stressed their commitment to tackling global warming , that unless it acts decisively and quickly with a range of new initiatives, it will fail. Four areas in particular are highlighted: electric cars, buildings insulation, agriculture and reform of the energy market. The committee would like to see Britain running a fleet of 1.7m electric cars, which have zero CO2 emissions, by 2020 – at present there are thought to be only a few hundred electric vehicles on the roads.

Yet it is concerned that £260m in the budget of the Department for Transport, earmarked for price support for buyers, and for setting up a battery-charging network, may be swept away on the forthcoming cuts to reduce the deficit. "We would like to keep that funding for the electric car market," said the committee secretary, David Kennedy.

Secondly, the committee would like to see new rules for how farmers apply nitrogen fertilizers to the land - which can release nitrogen oxides, themselves greenhouse gases. Thirdly, it wants a comprehensive program of home insulation, which addresses all the barriers stopping people investing in domestic energy efficiency.

And fourthly, it would like to see a reorganization of the current, liberalized energy market to make it more attractive to investors to put their money in low-carbon power generation, including a government-supported minimum price for carbon.

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IEA praises Modi govt for taking electricity to every village; calls India 'star performer'

India Village Electrification hailed by the IEA in World Energy Outlook 2018 showcases rapid energy access progress, universal village power, clean cooking advances via LPG, and Modi-led initiatives, inspiring Indonesia, Bangladesh, and Sub-Saharan Africa.

 

Key Points

A national push to power every Indian village, praised by the IEA for boosting energy access and clean cooking.

✅ Electrified 597,464 villages ahead of schedule in April 2018.

✅ IEA hails India in World Energy Outlook 2018 as star performer.

✅ LPG connections surge via Ujjwala, aiding clean cooking access.

 

The global energy watchdog International Energy Agency (IEA) has called India's electrification of every village the greatest success story of 2018. In its latest report, World Energy Outlook 2018, the IEA has called India a "star performer" in terms of achieving the big milestone of the providing power to each village. "In particular, one of the greatest success stories in access to energy in 2018 was India completing the electrification of all of its villages," said the IEA. It added that countries like Indonesia and Bangladesh have also achieved the commendable electrification rate of 95% (up from 50% in 2000), and 80% (up from 20% in 2000), respectively, even as Europe's electrification push continues as part of broader transitions.

This 643-page report by the IEA says over 120 million people worldwide gained access to electricity in 2017 and charts growth in the electric car market as part of broader energy trends. For the first time ever, the total number of people without access fell below 1 billion, it said.  The mega plan of providing electricity to 597,464 villages in India was announced by Prime Minister Narendra Modi during his Independence Day speech in 2015. On April 28, 2018, PM Modi confirmed that India had achieved its goal ahead of schedule. "This is one of the greatest achievements in the history of energy," said the IEA.

Praising the Narendra Modi government for making efforts towards lighting up every village in India, the agency said: "Since 2000 around half a billion people have gained access to electricity in India, with political effort over the last five years significantly accelerating progress."

India's achievement of providing universal household electricity access will improve the lives of over 230 million people, said the IEA, even as analyses like a Swedfund report debate some poverty outcomes in electrified areas. For a start, electric lighting makes the use of candles, kerosene and other polluting fuels for lighting redundant, not only saving money (and providing more light) but also seriously improving health, it said.

Though the global energy agency has called India "a success story", and a "bright spot for energy access", it says huge challenges remain in other regions of the world where over 670 million people still live without electricity access. "90% of these people are concentrated in sub-Saharan Africa, with countries such as Nigeria facing severe shortages," said the report.

Seven decades after independence and nearly three decades after India's economic liberalisation, the Modi government achieved the historic milestone of giving power to every single village of India, 12 days ahead of the deadline set by PM Modi. Leisang in Manipur became the last village to be connected to the grid, while a Delhi energy storage project explores ways to balance supply and demand.

The agency also praised India for tackling a related problem: access to clean cooking facilities. "While an estimated 780 million people in India rely on biomass for cooking, progress is emerging, as India is one of the few countries in the world targeting this "blind spot" of energy policy," it said.

Around 36 million LPG connections have been made since Prime Minister Modi and Minister for Petroleum and Natural Gas, Dharmendra Pradhan, launched the Pradhan Mantri Ujjwala Yojana scheme in May 2016 to provide free connections to families living below the poverty line. In India, around 50 million free LPG stoves and initial refills have been provided to poor households via this scheme since 2015. The government has set a target of providing LPG connections to 80 million households by 2020.

 

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Two new BC generating stations officially commissioned

BC Hydro Site C and Clean Energy Policy shapes B.C.'s power mix, affecting run-of-river hydro, net metering for rooftop solar, independent power producers, and surplus capacity forecasts tied to LNG Canada demand.

 

Key Points

BC Hydro's strategy centers on Site C, limiting new run-of-river projects and tightening net metering amid surplus power

✅ Site C adds long-term capacity with lower projected rates.

✅ Run-of-river IPP growth paused amid surplus forecasts.

✅ Net metering limits deter oversized rooftop solar.

 

Innergex Renewable Energy Inc. is celebrating the official commissioning today of what may be the last large run-of-river hydro project in B.C. for years to come.

The project – two new generating stations on the Upper Lillooet River and Boulder Creek in the Pemberton Valley – actually began producing power in 2017, but the official commissioning was delayed until Friday September 14.

Innergex, which earlier this year bought out Vancouver’s Alterra Power, invested $491 million in the two run-of-river hydro-electric projects, which have a generating capacity of 106 megawatts of power. The project has the generating capacity to power 39,000 homes.

The commissioning happened to coincide with an address by BC Hydro CEO Chris O’Riley to the Greater Vancouver Board of Trade Friday, in which he provided an update on the progress of the $10.7-billion Site C dam project.

That project has put an end, for the foreseeable future, of any major new run-of-river projects like the Innergex project in Pemberton.

BC Hydro expects the new dam to produce a surplus of power when it is commissioned in November 2024, so no new clean energy power calls are expected for years to come.

Independent power producers aren’t the only ones who have seen a decline in opportunities to make money in B.C. providing renewable power, as the Siwash Creek project shows. So will homeowners who over-build their own solar power systems, in an attempt to make money from power sales.

There are about 1,300 homeowners in B.C. with rooftop solar systems, and when they produce surplus power, they can sell it to BC Hydro.

BC Hydro is amending the net metering program to discourage homeowners from over-building. In some cases, some howeowners have been generating 40% to 50% more power than they need.

“We were getting installations that were massively over-sized for their load, and selling this big quantity of power to us,” O’Riley said. “And that was never the idea of the program.”

Going forward, BC Hydro plans to place limits on how much power a homeowner can sell to BC Hydro.

BC Hydro has been criticized for building Site C when the demand for power has been generally flat, and reliance on out-of-province electricity has drawn scrutiny. But O’Riley said the dam isn’t being built for today’s generation, but the next.

“We’re not building Site C for today,” he said. “We have an energy surplus for the short term. We’re not even building it for 2024. We’re building it for the next 100 years.”

O’Riley acknowledged Site C dam has been a contentious and “extremely challenging” project. It has faced numerous court challenges, a late-stage review by the BC Utilities Commission, cost overruns, geotechnical problems and a dispute with the main contractors.

In a separate case, the province was ordered to pay $10 million over the denial of a Squamish power project, highlighting broader legal risk.

But those issues have been resolved, O’Riley said, and the project is back on track with a new construction schedule.

“As we move forward, we have a responsibility to deliver a project on time and against the new revised budget, and I’m confident the changes we’ve made are set up to do that,” O’Riley said.

Currently, there are about 3,300 workers employed on the dam project.

Despite criticisms that BC Hydro is investing in a legacy mega-project at a time when cost of wind and solar have been falling, O’Riley insisted that Site C was the best and lowest cost option.

“First, it’s the lowest cost option,” he said. “We expect over the first 20 years of Site C’s operating life, our customers will see rates 7% to 10% below what it would otherwise be using the alternatives.”

BC Hydro missed a critical window to divert the Peace River, something that can only be done in September, during lower river flows. That added a full year’s delay to the project.

O’Riley said BC Hydro had built in a one-year contingency into the project, so he expects the project can still be completed by 2024 – the original in-service target date. But the delay will add more than $2 billion to the last budget estimate, boosting the estimated capital cost from $8.3 billion to $10.7 billion.

Meeting the 2024 in-service target date could be important, if Royal Dutch Shell and its consortium partners make a final investment decision this year on the $40 billion LNG Canada project.

That project also has a completion target date of 2024, and would be a major new industrial customer with a substantial power draw for operations.

“If they make a decision to go forward, they will be a very big customer of BC Hydro,” O’Riley told Business in Vancouver. “They would be in our top three or four biggest customers.”

 

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Dubai Planning Large-Scale Solar Powered Hydrogen Production

Dubai Green Hydrogen advances electrolysis at the Mohammed Bin Rashid Al Maktoum Solar Park, with DEWA and Siemens enabling clean energy storage, re-electrification, and fuel-cell mobility for Expo 2020 Dubai and public transport.

 

Key Points

Dubai Green Hydrogen is a DEWA-Siemens project making solar hydrogen for storage, mobility, and reelectrification.

✅ Electrolysis at Mohammed Bin Rashid Al Maktoum Solar Park

✅ Partners: DEWA and Siemens; public-private demonstration plant

✅ Hydrogen for buses, re-electrification, and energy storage

 

Something you hear frequently if you are a clean tech aficionado is that excess solar and wind power can be used to split water into oxygen and hydrogen. The Dubai Supreme Council of Energy, the 2020 Dubai Higher Committee and the Dubai Electricity and Water Authority broke ground in early February on a solar power hydrogen electrolysis facility located in the Mohammed Bin Rashid Al Maktoum Solar Park, and related initiatives like the Solar Decathlon Middle East underscore Dubai's clean energy focus. Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai Supreme Council of Energy and chairman of the Expo 2020 Dubai Higher Committee, participated in the groundbreaking ceremony, according to a report by Khaleej Times.

Saeed Mohammed Al Tayer, CEO of DEWA, said at the groundbreaking ceremony the project is important to understanding the limits of green hydrogen technology and how it can contribute to the UAE’s vision of clean energy, and aligns with DEWA's latest renewable initiatives now progressing in the emirate. “This pioneering project is a role model for strategic partnerships between the public and private sectors. It will contribute to developing the green economy concept in the UAE and explore the potential of green hydrogen technology. The hydrogen produced at the facility will be stored and deployed for re-electrification, transportation and other uses.”

Siemens is providing much of the technology that will be used at the demonstration facility, while DEWA expands its China outreach to woo renewable energy firms that can contribute to the ecosystem. Joe Kaeser, president and CEO of Siemens, said the UAE was the perfect location for Siemens to test the technology, building on advances in offshore green hydrogen the company is pursuing. One of the primary uses of the hydrogen produced will be to power Dubai’s public transportation system.

“We are aware of the stress that is placed on vehicles in this region due to the high levels of heat; with hydrogen cells, you are not putting as much strain on the vehicle and that improves its longevity,” Kaeser said. “However, this is only the first step and we are eager to explore more ways in which we can adapt the technology to other sectors. The interest from various companies and partners has been immense and we are eager to work with all interested parties.”

“Dewa, Expo 2020 Dubai and Siemens are working together to help realize His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai’s, vision to identify new energy resources and provide sustainable power as part of a balanced approach that prioritizes the environment. Our aim is to make Dubai a model of energy efficiency and safety,” said Sheikh Ahmed.

Expo 2020 Dubai intends to use the hydrogen generated at the facility to transport visitors to the Expo 2020 Dubai and the Mohammed bin Rashid Al Maktoum Solar Park, reflecting regional momentum such as Saudi Arabia's clean energy plans over the next decade, in hydrogen fuel cell powered vehicles. Live data of the green hydrogen electrolysis will be displayed at Expo 2020 Dubai to help inform broader efforts like hydrogen hubs in the United States.

 

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Renewable energy now cheapest option for new electricity in most of the world: Report

Renewable Energy Cost Trends highlight IRENA data showing solar and wind undercut coal, as utility-scale projects drive lower levelized electricity costs worldwide, with the Middle East and UAE advancing mega solar parks.

 

Key Points

They track how solar and wind undercut new fossil fuels as utility-scale costs drop and investment accelerates.

✅ IRENA reports renewables cheapest for new installations

✅ Solar and wind LCOE fell sharply since 2010

✅ Middle East and UAE scale mega utility projects

 

Renewable energy is now the cheapest option for new electricity installation in most of the world, a report from the International Renewable Energy Agency (IRENA) on Tuesday said.

Renewable power projects have undercut traditional coal fuel plants, with solar and wind power costs in particular falling as record-breaking growth continues worldwide.

“Installing new renewables increasingly costs less than the cheapest fossil fuels. With or without the health and economic crisis, dirty coal plants were overdue to be consigned to the past, said Francesco La Camera, director-general of IRENA said in the report.

In 2019, renewables accounted for around 72 percent of all new capacity added worldwide, IRENA said, following a 2016 record year that highlighted the momentum, with lowering costs and technological improvements in solar and wind power helping this dynamic. For solar energy, IRENA notes that the cost for electricity from utility-scale plants fell by 82 percent in the decade between 2010 and 2019, as China's solar PV growth underscored in 2016.

“More than half of the renewable capacity added in 2019 achieved lower electricity costs than new coal, while new solar and wind projects are also undercutting the cheapest and least sustainable of existing coal-fired plants,” Camera added.

Costs for solar and wind power also fell year-on-year by 13 and 9 percent, respectively, with offshore wind costs showing steep declines as well. In 2019, more than half of all newly commissioned utility-scale renewable power plants provided electricity cheaper than the lowest cost of a new fossil fuel plant.

The Middle East

In mid-May, a report by UK-based law firm Ashurst suggested the Middle East is the second most popular region for renewable energy investment after North America, at a time when clean energy investment is outpacing fossil fuels.

The region is home to some of the largest renewable energy bets in the world, with Saudi wind expansion gathering pace. The UAE, for instance, is currently developing the Mohammed Bin Rashid Solar Park, the world’s largest concentrated solar power project in the world.

Around 26 percent of Middle East respondents in Ashurst’s survey said that they were presently investing in energy transition, marking the region as the most popular for current investment in renewables, while 11 percent added that they were considering investing.

In North America, the most popular region, 28 percent said that they were currently investing, with 11 percent stating they are considering investing.

 

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Energy storage poised to tackle grid challenges from rising EVs as mobile chargers bring new flexibility

EV Charging Grid Readiness addresses how rising EV adoption, larger batteries, and fast charging affect electric utilities, using vehicle-to-grid, energy storage, mobile and temporary chargers, and smart charging to mitigate distribution stress.

 

Key Points

Planning and tech to manage EV load growth with V2G, storage and smart charging to avoid overloads on distribution grids.

✅ Lithium-ion costs may drop 60%, enabling new charger models

✅ Mobile and temporary chargers buffer local distribution peaks

✅ Smart charging and V2G defer transformer and feeder upgrades

 

The impacts of COVID-19 likely mean flat electric vehicle (EV) sales this year, but a trio of new reports say the long-term outlook is for strong growth — which means the electric grid and especially state power grids will need to respond.

As EV adoption grows, newer vehicles will put greater stress on the electric grid due to their larger batteries and capacity for faster charging, according to Rhombus Energy Solutions, while a DOE lab finds US electricity demand could rise 38% as EV adoption scales. A new white paper from the company predicts the cost of lithium-ion batteries will drop by 60% over the next decade, helping enable a new set of charging solutions.

Meanwhile, mobile and temporary EV charging will grow from 0.5% to 2% of the charging market by 2030, according to new Guidehouse research. The overall charging market is expected to reach reach almost $16 billion in revenues in 2020 and more than $60 billion by 2030. ​A third report finds long-range EVs are growing their share of the market as well, and charging them could cause stress to electric distribution systems. 

"One can expect that the number of EVs in fleets will grow very rapidly over the next ten years," according to Rhombus' report. But that means many fleet staging areas will have trouble securing sufficient charging capacity as electric truck fleets scale up.

"Given the amount of time it takes to add new megawatt-level power feeds in most cities (think years), fleet EVs will run into a significant 'power crisis' by 2030," according to Rhombus.

"Grid power availability will become a significant problem for fleets as they increase the number of electric vehicles they operate," Rhombus CEO Rick Sander said in a statement. "Integrating energy storage with vehicle-to-grid capable chargers and smart [energy management system] solutions as seen in California grid stability efforts is a quick and effective mitigation strategy for this issue."

Along with energy storage, Guidehouse says a new, more flexible approach to charger deployment enabled by grid coordination strategies will help meet demand. That means chargers deployed by a van or other mobile stations, and "temporary" chargers that can help fleets expand capacity. 

According to Guidehouse, the temporary units "are well positioned to de-risk large investments in stationary charging infrastructure" while also providing charge point networks and service providers "with new capabilities to flexibly supply predictable changes in EV transportation behaviors and demand surges."

"Mobile charging is a bit of a new area in the EV charging scene. It primarily leverages batteries to make chargers mobile, but it doesn't necessarily have to," Guidehouse Senior Research Analyst Scott Shepard told Utility Dive. 

"The biggest opportunity is with the temporary charging format," said Shepard. "The bigger units are meant to be located at a certain site for a period of time. Those units are interesting because they create a little more scale-ability for sites and a little risk mitigation when it comes to investing in a site."

"Utilities could use temporary chargers as a way to provide more resilient service, using these chargers in line with on-site generation," Shepard said.

Increasing rates of EV adoption, combined with advances in battery size and charging rates, "will impact electric utility distribution infrastructure at a higher rate than previously projected," according to new analysis from FleetCarma.

The charging company conducted a study of over 3,900 EVs, illustrating the rapid change in vehicle capabilities in just the last five years. According to FleetCarma, today's EVs use twice as much energy and draw it at twice the power level. The long-range EV has increased as a proportion of new electric vehicle sales from 14% in 2014 to 66% in 2019 in the United States, it found.

Long-range EVs "are very different from older electric vehicles: they are driven more, they consume more energy, they draw power at a higher level and they are less predictable," according to FleetCarma.

Guidehouse analysts say grid modernization efforts and energy storage can help smooth the impacts of charging larger vehicles. 

Mobile and temporary charging solutions can act as a "buffer" to the distribution grid, according to Guidehouse's report, allowing utilities to avoid or defer some transmission and distribution upgrade costs that could be required due to stress on the grid from newer vehicles.

"At a high level, there's enough power and energy to supply EVs with proper management in place," said Shepard. "And in a lot of different locations, those charging deployments will be built in a way that protects the grid. Public fast charging, large commercial sites, they're going to have the right infrastructure embedded."

"But for certain areas of the grid where there is low visibility, there is the potential for grid disruption and questions about whether the UK grid can cope with EV demand," said Shepard. "This has been on the mind of utilities but never realized: overwhelming residential transformers."

As EVs with higher charging and energy capacities are connected to the grid, Shepard said, "you are going to start to see some of those residential systems come under pressure, and probably see increased incidences of having to upgrade transformers." Some residential upgrades can be deferred through smarter charging programs, he added.

 

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Idaho Power Settlement Could Close Coal Plant, Raise Rates

Idaho Power Valmy Settlement outlines early closure of the North Valmy coal-fired plant in Nevada, accelerated depreciation recovery, a 1.17% base-rate increase, and impacts for customers, NV Energy co-ownership, and Idaho Public Utilities Commission review.

 

Key Points

A proposed agreement to close North Valmy early, recover costs via a 1.17% rate hike, and seek PUC approval.

✅ Unit 1 closes 2019; Unit 2 closes 2025 in Nevada.

✅ 1.17% base-rate hike; about $1.20 per 1,000 kWh monthly bill.

✅ Idaho PUC comment deadline May 25; NV Energy co-owner.

 

State regulators have set a May 25 deadline for public comment on a proposed settlement related to the early closure of a coal-fired plant co-owned by Idaho Power, even as some utilities plan to keep a U.S. coal plant running indefinitely in other jurisdictions.

The settlement calls for shuttering Unit 1 of the North Valmy Power Plant in Nevada in 2019, with Unit 2 closing in 2025, amid regional coal unit retirements debates. The units had been slated for closure in 2031 and 2035, respectively.

If approved by the Idaho Public Utilities Commission, the settlement would increase base rates by approximately $13.3 million, or 1.17 percent, in order to allow the company to recover its investment in the plant on an accelerated basis.

That equates to an additional $1.20 on the monthly bill of the typical residential customer using 1,000 kilowatt-hours of energy per month.

Idaho Power, which co-owns the plant with NV Energy, maintains that closing Valmy early rather than continuing to operate it until it is fully depreciated in 2035, will ultimately save customers $103 million in today's dollars.

The company said a significant decrease in market prices for electricity has made it uneconomic to operate the plant except during extremely cold or hot weather, when the demand for energy peaks, a trend underscored by transactions involving the San Juan Generating Station deal elsewhere. The company also said plant balances have increased by approximately $70 million since its last general rate case in 2011, due to routine maintenance and repairs, as well as investments required to meet environmental regulations.

The proposed settlement reflects a number of changes to Idaho Power's original proposal regarding Valmy, and comes in the wake of discussions with interested parties in February and April, against the backdrop of a broader energy debate over plant closures and reliability.

In its initial application, filed in October, Idaho Power proposed closing both units in 2025. The original proposal would have increased base rates by $28.5 million, or about 2.5 percent, in order to allow the company to recover its costs associated with the plant's accelerated depreciation, decommissioning and anticipated investments, with cautionary examples such as the Kemper power plant costs illustrating potential risks.

Concurrently, Idaho Power asked for commission approval to adjust depreciation rates for its other plants and equipment based on the result of a study it conducts every five years, as outlined in Case IPC-E-16-23. The adjustment would have led to a $6.7 million increase to base rates.

The two requests filed in October would have increased customer costs by a total of $35.2 million or 3.1 percent, leading to a $3.08 increase on the bills of the typical residential customer who uses 1,000 kilowatt-hours per month.

The proposed settlement submitted to the Commission on May 4 calls for $13,285,285 to be recovered from all customer classes through base rates until 2028, all related to the Valmy shutdown. That is an increase of 1.17 percent and would result in a $1.20 increase on the bills of the typical residential customer who uses 1,000 kilowatt-hours per month.

 

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