Frito Lay rolls out EVs into delivery fleet

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Frito Lay says it is the first food manufacturer in Canada to integrate emissions-free electric vehicles into its delivery fleet.

The company has taken delivery of six electric vehicles, which are being deployed at Frito Lay Canada's distribution centres in Brampton which will receive three, Ottawa, Surrey and Laval.

The vehicles were built by Smith Electric Vehicles. Each has a 60-km per day range, which Frito Lay says meets the requirements of most of its routes. The delivery vehicles will be powered by electricity from the grid and will be recycled when they reach the end of the batteries life cycle of three to five years or longer.

"Electric vehicles are good for the environment because they do not use fossil fuels and they do not produce greenhouse gas or particulate emissions during operation," says Helmi Ansari, sustainability leader, Frito Lay Canada. "We've been striving to reduce our footprint on the planet for many years and energy conservation has long been a strategic initiative for the company. Today's introduction of electric vehicles to our fleet brings us one step closer to our vision of a fleet that's comprised of several types of highly-efficient vehicles that meet our various route needs and driving distances across the country."

The use of electric delivery vehicles is just one of many environmental undertakings by the company. It's also focusing on using less water, electricity and fuel while reducing waste from everything it makes, moves and sells.

Frito Lay says to date it has: reduced the total distance travelled by its trucks by 3 one million kilometres by optimizing delivery routes reduced manufacturing fuel consumption by more than 20 since 1999 per kilogram of snacks produced reduced water consumption by more than 30 since 1999, saving 5.4 billion litres of water through changes at manufacturing plants reused about 40 million shipping cartons since 1999, equivalent to saving more than 300,000 trees per year and in 2009 the company says it diverted more than 92 of its manufacturing waste from landfills into recycling and re-use streams, just short of its 99 landfill diversion target. Frito Lay also lays claim to producing the world's first 100 compostable chip bag, introduced with the SunChips brand.

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Berlin urged to remove barriers to PV

Germany Solar Cap Removal would accelerate photovoltaics, storage, and renewables, replacing coal and nuclear during phaseout with 10GW per year toward 162GW by 2030, boosting grid resilience, O&M jobs, and domestic clean energy growth.

 

Key Points

A policy change to scrap the 52GW limit, enabling 10GW/year PV and storage to replace coal and nuclear capacity.

✅ Scrap 52GW cap to prevent post-2020 market slump

✅ Add 10GW PV annually; scale residential, commercial, grid storage

✅ Create jobs in planning, installation, and O&M through 2030

 

The German Solar Association (BSW) has called on the government to remove barriers to the development of new solar power capacity in Germany and storage capacity needed to replace coal and nuclear generation that is being phased out.

A 52GW cap should be scrapped, otherwise there is a risk that a market slump will occur in the solar industry after 2020, BSW said, especially as U.S. solar expansion plans signal accelerating global demand.

BSW managing director Carsten Körnig said: “Time is running out, and further delays are irresponsible. The 52GW mark will already be reached within a few months.”
A new report from BSW, in cooperation with Bonn-based marketing and social research company EuPD Research and The smarter E Europe initiative, said 10GW a year is needed as well as an increase in battery storage capacity.

This would lead to cumulative photovoltaic capacity of 162GW and 15GW residential, commercial and grid storage systems by 2030, in line with global renewable records being set, leading to new job opportunities.

The number of jobs in the domestic photovoltaic and storage industries could increase to 78,000 by the end of the next decade from today’s level of 26,400, aligning with forecasts of wind and solar reaching 50% by mid-century, said 'The Energy Transition in the Context of the Nuclear and Coal Phaseout – Perspectives in the Electricity Market to 2040' study.

Job growth would take place for the most part in the fields of planning, installation and operations and maintenance of PV systems, as solar uptake in Poland increases, the report said.

In maintenance alone, employment would increase from 9,200 to 26,000, with additional opened up by tapping into the market potential of medium- to long-term storage systems, alongside changing electricity prices in Northern Europe that favor flexibility, it said.

The report added that industry revenue could grow from €5bn to €12.5bn in the coming decade.

The report was supported by BayWa Re E3/DC, Fronius, Goldbeck Solar, IBC Solar, Panasonic, Sharp, Siemens, Sonnen, Suntech, Tesvolt and Varta.

 

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EPA Policy to limit telework emerges during pandemic

EPA Telework Policy restricts remote work, balancing work-from-home guidance during the COVID-19 pandemic with flexible schedules, union contracts, OMB guidance, and federal workforce rules, impacting managers, SES staff, and non-bargaining employees nationwide.

 

Key Points

A directive limiting many EPA staff to two telework days weekly, with pandemic exceptions and flexible schedules.

✅ Limits telework to two days per week for many employees

✅ Allows flexible schedules, including maxiflex, during emergencies

✅ Aligns with OMB, OPM, CDC guidance; honors union agreements

 

EPA has moved forward on a new policy that would restrict telework even as agency leadership has encouraged staff to work from home during the coronavirus outbreak.

The new EPA order obtained by E&E News would require employees to report to the office at least three days every week.

"Full-time employees are expected to report to the official worksite and duty station a minimum of three (3) days per week," says the order, dated as approved on Feb. 27. It went into effect March 15 — that night, EPA Administrator Andrew Wheeler authorized telework for the entire agency due to the pandemic.

The order focuses on EPA employees' work schedules and gives them new flexibilities that could come in handy during a public health emergency like the COVID-19 virus, when parts of the power sector consider on-site staffing to ensure continuity.

It also stipulates a deep reduction in EPA employees' capability to work remotely, leaving them with two days of telework per week. An agency order on telework, issued in January 2016, said staff could telework full time.

"The EPA supports the use of telework," said that order. "Regular telework may range from one day per pay period up to full time."

An EPA spokeswoman said the new order doesn't change the agency's guidance to staff to work from home during the pandemic.

"The health and safety of our employees is our top priority, and that is why we have requested that all employees telework, even as residential electricity use increases with more people at home, until at least April 3. There is no provision in the work schedules policy, telework policy or collective bargaining agreement that limits this request," said the spokeswoman.

"While EPA did implement the national work schedule policy effective 3/15/2020, it was implemented in order to provide increased work schedule flexibilities for non-bargaining unit employees who were not previously afforded flexible schedules, including maxiflex," she added.

"The implementation of the policy does not currently impact telework opportunities for EPA employees, and EPA has strongly encouraged all staff to telework," she said.

Still, the new order has caused consternation among EPA employees.

One EPA manager described it as another move by the Trump administration to restrict telework across the government.

"Amidst the COVID-19 crisis, this policy seems particularly ill-timed and unwise. It doesn't even give the administration the chance to evaluate the situation once the COVID-19 pandemic passes," said the manager.

"I think this is a dramatic change in the flexibilities available to the EPA employees without any data to support such a drastic move," the manager said. "It has huge ramifications for employees, many of whom commute over an hour each way to the office, increasing air pollution in the process."

Another EPA staffer said, "I honestly think such an order, given current circumstances, would elicit little more than a scoff and a smirk."

The person added, "How tone-deaf and heavy-handed can one administration be?"

Inside EPA first reported on the new order. E&E News obtained the memo independently.

The recently issued policy applies only to non-bargaining-unit employees, including "full-time and part-time" agency staff as well as "supervisors and managers in the competitive, excepted, Senior Level, Scientific and Professional, and Senior Executive Service positions."

In addition, the order covers "Public Health Service Officers, Schedule C, Administratively Determined employees and non-EPA employees serving on Intergovernmental Personnel Act assignments to EPA."

Nevertheless, EPA employees covered under union contracts must adhere to those contracts if the policy runs counter to them.

"If provisions of this order conflict with the provisions of a collective bargaining agreement, the provisions of the agreement must be applied," the order says.

EPA has taken a more restrictive approach with the agency's largest union, American Federation of Government Employees Council 238, which represents about 7,500 EPA employees. EPA imposed a contract on the council's bargaining unit employees last July that limited them to one day of telework per week, among other changes that triggered union protests.

EPA and AFGE have since relaunched contract negotiations, and how to handle telework is one of the issues under discussion. Both sides committed to complete those bargaining talks by April 15 and work with the Federal Service Impasses Panel if needed (Greenwire, Feb. 27).

 

Both sides of the telework debate
EPA's new order has been under consideration for some time.

E&E News obtained a draft version last year. The agency had circulated it for comment in July, noting the proposal "limits the number of days an employee may telework per week," among other changes (Greenwire, Sept. 12, 2019).

EPA, like other federal agencies under the Trump administration, has sought to reduce employees' telework. That effort, though, has run into the headwinds of a global pandemic, with a U.S. grid warning highlighting broader risks, leading agency leaders to reverse course and now encourage staff to work remotely in order to stop the spread of the COVID-19 virus.

Wheeler in an email last week told staff that he authorized telework for employees across the country. Federal worker unions had sought the opportunity for remote work on behalf of EPA employees, and the agency had already relaxed telework policies at various offices the prior week where the coronavirus had begun to take hold.

The EPA spokeswoman said the agency moved toward telework after guidance from other agencies.

"Consistent with [Office of Management and Budget], [Centers for Disease Control and Prevention] and [Office of Personnel Management] guidance, along with state and local directives, we have taken swift action in regions and at headquarters to implement telework for all employees. We continue to tell all employees to telework," said the spokeswoman.

Wheeler said in a later video message that his expectation was most EPA employees were working from home.

"I understand that this is a difficult and scary time for all of us," said the EPA administrator.

The coronavirus has become a real challenge for EPA, and utilities like BC Hydro Site C updates illustrate broader operational adjustments.

Agency staff have been exposed to the virus while some have tested positive, and nuclear plant workers have raised similar concerns, according to internal emails. That has led to employees self-quarantining while their colleagues worry they may next fall ill (Greenwire, March 20).

One employee said that since EPA's operations have been maintained with staff working from home, even as household electricity bills rise for many, it's harder for the Trump administration to justify restricting remote work.

"With the current climate, I think employees have shown we can keep the agency going with nearly 95% teleworking full time. It makes their argument hard to justify in light of things," said the EPA employee.

The Trump administration overall has pushed for more remote work by the federal workforce in the battle with the COVID-19 virus. The Office of Management and Budget issued guidance to agencies last week "to minimize face-to-face interactions" and "maximize telework across the nation."

Lawmakers have also pushed to expand telework for federal workers due to the virus.

Democratic senators sent a letter last week urging President Trump to issue an executive order directing agencies to use telework.

In addition, Sens. James Lankford (R-Okla.), Chris Van Hollen (D-Md.) and Kyrsten Sinema (D-Ariz.) introduced legislation that would allow federal employees to telework full time during the pandemic.

Some worry EPA's new order could further sour morale at the agency after the pandemic passes, as other utilities consider measures like unpaid days off to trim costs. Employees may leave if they can't work from home more.

"People will quit EPA over something like this. Maybe that's the goal," said the EPA manager.

 

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Gulf Power to Provide One-Time Bill Decrease of 40%

Gulf Power 40% One-Time Bill Decrease approved by the Florida Public Service Commission delivers a May fuel credit and COVID-19 relief, cutting residential and business costs across rate classes while supporting budgeting and energy savings.

 

Key Points

PSC-approved fuel credit cutting May electric bills about 40% for homes and 40-55% for businesses as COVID-19 relief.

✅ One-time May fuel credit on customer bills

✅ Residential cut ~40%; business savings 40-55% by rate class

✅ Online tools show daily usage and projected bill

 

Gulf Power announced that the Florida Public Service Commission unanimously approved its request to issue a one-time decrease of approximately 40% for the typical residential customer bill beginning May 1, similar to recent Georgia Power bill reductions seen elsewhere. Business customers will also see a significant one-time decrease of approximately 40-55% in May, depending on usage and rate class.

"We are pleased that the Florida Public Service Commission has approved our request to deliver this savings to our customers when they need it most. We felt that this was the right thing to do, especially during times like these," said Gulf Power President Marlene Santos. "Our customers and communities now more than ever count on the reliable and affordable energy we deliver, and we are pleased that May bills will reflect this additional, significant savings for our customers."

In Florida, fuel savings are typically refunded to customers over the remainder of the year to provide level, predictable bills. However, given the emergent and significant financial challenges facing many customers due to COVID-19, Gulf Power instead sought approval to give customers the total annual savings in their May bill, similar to a lump-sum electricity credit approach, which will be reflected as a line-item fuel credit on their May statement.

New tools to help save energy and money

Many customers are working from home and, in general, staying at home more. More time and extra people in the home will likely increase power usage, which could lead to higher monthly bills.

Gulf Power recently added new tools to our customers' online account portal to help them better understand and manage their energy usage, including their monthly projected bill amount and a breakdown of daily energy usage, which is available for most residential customers*. Customers can now see their previous day's energy usage using their online account portal to help them more easily understand how their previous day's activities impacted energy usage, allowing them to quickly make adjustments to keep bills low. The new projected bill feature is a valuable tool to assist customers in budgeting for their next month's energy bill.

Additional energy-saving tips that can be implemented with no additional cost or equipment are also available. As always, Gulf Power's free online Energy Checkup tool will provide customers with a customized report based on their home's actual energy use.

Helping customers pay their bills

Gulf Power has a long history of working with its customers during difficult times, including periods of pandemic-related energy insecurity, and will continue to do so. Gulf Power encourages customers that are having difficulty paying their energy bill to visit GulfPower.com/help to view available resources that can provide assistance to qualifying customers.

Customers are encouraged to pay their electric bill balance each month to avoid building up a large balance, which they will continue to bear responsibility for. Gulf Power will work with the customer's personal situation and assist with a solution, similar to how utilities in Texas have waived fees during this period, to help customers fulfill their personal responsibility for their Gulf Power balance.

Those who can afford or want to help others who may need assistance with their energy bill can make a donation to Project SHARE in your online customer portal. Project SHARE donations are added to a customer's monthly bill and all contributions are distributed to local offices of The Salvation Army. Customers in need of utility bill assistance can apply for Project SHARE assistance at The Salvation Army office in their county.

Supporting our communities

The Gulf Power Foundation gave $500,000 to United Way organizations across Northwest Florida to assist those most vulnerable during this time, which has helped support food, housing and other essential needs throughout the region. In addition, the Foundation recently made a $10,000 donation to Feeding the Gulf Coast and launched an employee donation campaign to provide food for our neighbors in need, while Entergy emergency relief fund offers a similar example of industry support. In total, Gulf Power and its fellow NextEra Energy companies and employees have so far committed more than $4 million in COVID-19 emergency assistance funds that will be distributed directly to those in need and to partner organizations working on the frontlines of the crisis to provide critical support to the most vulnerable members of the community.

Lower fuel costs are enabling Gulf Power to issue a one-time decrease of approximately 40% for the typical residential customer bill in May, even as FPL faces a hurricane surcharge controversy in the state
- a significant savings amid the ongoing COVID-19 pandemic

Gulf Power will deliver savings to customers through a one-time bill decrease, rather than the standard practice of spreading out savings over the remainder of the year, even as FPL proposes multi-year rate hikes elsewhere

 

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France Demonstrates the Role of Nuclear Power Plants

France Nuclear Power Strategy illustrates a low-carbon, reliable baseload complementing renewables in the energy transition, enhancing grid reliability, energy security, and emissions reduction, offering actionable lessons for Germany on infrastructure, policy, and public acceptance.

 

Key Points

France's nuclear strategy is a low-carbon baseload model supporting renewables, grid reliability, and energy security.

✅ Stable low-carbon baseload complements intermittent renewables

✅ Enhances grid reliability and national energy security

✅ Requires long-term investment, safety, and waste management

 

In recent months, France has showcased the critical role that nuclear power plants can play in an energy transition, offering valuable lessons for Germany and other countries grappling with their own energy challenges. As Europe continues to navigate its path towards a sustainable and reliable energy system, France's experience with nuclear energy underscores its potential benefits and the complexities involved, including outage risks in France that operators must manage effectively.

France, a long-time proponent of nuclear energy, generates about 70% of its electricity from nuclear power, making it one of the most nuclear-dependent countries in the world. This high reliance on nuclear energy has allowed France to maintain a stable and low-carbon electricity supply, which is increasingly significant as nations aim to reduce greenhouse gas emissions, even as Europe's nuclear capacity declines in several markets, and combat climate change.

Recent events in France have highlighted several key aspects of nuclear power's role in energy transition:

  1. Reliability and Stability: During periods of high renewable energy generation or extreme weather events, nuclear power plants have proven to be a stable and reliable source of electricity. Unlike solar and wind power, which are intermittent and depend on weather conditions, nuclear plants provide a consistent and continuous supply of power. This stability is crucial for maintaining grid reliability and ensuring that energy demand is met even when renewable sources are not producing electricity.

  2. Low Carbon Footprint: France’s commitment to nuclear energy has significantly contributed to its low carbon emissions. By relying heavily on nuclear power, France has managed to reduce its greenhouse gas emissions substantially compared to many other countries. This achievement is particularly relevant as Europe strives to meet ambitious climate targets, with debates over a nuclear option in Germany highlighting climate trade-offs, and reduce overall carbon footprints. The low emissions associated with nuclear power make it an important tool for achieving climate goals and transitioning away from fossil fuels.

  3. Energy Security: Nuclear power has played a vital role in France's energy security. The country’s extensive network of nuclear power plants ensures a stable and secure supply of electricity, reducing its dependency on imported energy sources. This energy security is particularly important in the context of global energy market fluctuations and geopolitical uncertainties. France’s experience demonstrates how nuclear energy can contribute to a nation’s energy independence and resilience.

  4. Economic Benefits: The nuclear industry in France also provides significant economic benefits. It supports thousands of jobs in construction, operation, and maintenance of power plants, as well as in the supply chain for nuclear fuel and waste management. Additionally, the stable and relatively low cost of nuclear-generated electricity can contribute to lower energy prices for consumers and businesses, enhancing economic stability.

Germany, in contrast, has been moving away from nuclear energy, particularly following the Fukushima disaster in 2011. The country has committed to phasing out its nuclear reactors by 2022 and focusing on expanding renewable energy sources such as wind and solar power. While Germany's renewable energy transition has made significant strides, it has also faced challenges related to grid stability, as Germany's energy balancing act illustrates for policymakers, energy storage, and maintaining reliable power supplies during periods of low renewable generation.

France’s experience with nuclear energy offers several lessons for Germany and other nations considering their own energy strategies:

  • Balanced Energy Mix: A diverse energy mix that includes nuclear power alongside renewable sources can help ensure a stable and reliable electricity supply, as ongoing discussions about a nuclear resurgence in Germany emphasize for policymakers today. While renewable energy is essential for reducing carbon emissions, it can be intermittent and may require backup from other sources to maintain grid reliability. Nuclear power can complement renewable energy by providing a steady and consistent supply of electricity.

  • Investment in Infrastructure: To maximize the benefits of nuclear energy, investment in infrastructure is crucial. This includes not only the construction and maintenance of power plants but also the development of waste management systems and safety protocols. France’s experience demonstrates the importance of long-term planning and investment to ensure the safe and effective use of nuclear technology.

  • Public Perception and Policy: Public perception of nuclear energy can significantly impact its adoption and deployment, and ongoing Franco-German nuclear disputes show how politics shape outcomes across borders. Transparent communication, rigorous safety standards, and effective waste management are essential for addressing public concerns and building trust in nuclear technology. France’s successful use of nuclear power is partly due to its emphasis on safety and regulatory compliance.

In conclusion, France's experience with nuclear power provides valuable insights into the role that this technology can play in an energy transition. By offering a stable, low-carbon, and reliable source of electricity, nuclear power complements renewable energy sources and supports overall energy security. As Germany and other countries navigate their energy transitions, France's example underscores the importance of a balanced energy mix, robust infrastructure, and effective public engagement in harnessing the benefits of nuclear power while addressing associated challenges, with industry voices such as Eon boss on nuclear debate underscoring the sensitivity of cross-border critiques.

 

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Electricity subsidies to pulp and paper mills to continue, despite NB Power's rising debt

NB Power Pulp and Paper Subsidies lower electricity rates for six New Brunswick mills using firm power benchmarks and interruptible discounts, while government mandates, utility debt, ratepayer impacts, and competitiveness pressures shape provincial energy policy.

 

Key Points

Provincial mandates that buy down firm electricity rates for six mills to a national average, despite NB Power's debt.

✅ Mandated buy-down to match national firm electricity rates

✅ Ignores large non-firm interruptible power discounts

✅ Raises equity concerns amid NB Power debt and rate pressure

 

An effort to fix NB Power's struggling finances that is supposed to involve a look at "all options" will not include a review of the policy that requires the utility to subsidize electricity prices for six New Brunswick pulp and paper mills, according to the Department of Natural Resources and Energy Development.

The program is meant "to enable New Brunswick's pulp and paper companies have access to competitive priced electricity,"  said the department's communications officer Nick Brown in an email Monday 

"Keeping our large industries competitive with other Canadian jurisdictions, amid Nova Scotia rate hike opposition debates elsewhere, is important," he wrote, knocking down the idea the subsidy program might be scrutinized for shortcomings like other NB Power expenses.

Figures released last week show NB Power paid out $9.7 million in rate subsidies to the mills under the program in the fiscal year ended in March 2021, even though the utility was losing $4 million for the year and falling deeper into debt, amid separate concerns about old meter issues affecting households.

Subsidies went to three mills owned by J.D. Irving Ltd. including two in Saint John and one in Lake Utopia, two owned by the AV group in Nackawic and Atholville and the Twin Rivers pulp mill in Edmundston.

The New Brunswick government has made NB Power subsidize pulp and paper mills like Twin Rivers Paper Company since 2012, and is requiring the program to continue despite financial problems at the utility. (CBC)
It was NB Power's second year in a row of financial losses, while it is supposed to pay down $500 million of its $4.9 billion debt load in the next five years to prepare for the refurbishment of the Mactaquac dam, a burden comparable to customers in Newfoundland paying for Muskrat Falls elsewhere under separate policies, under a directive issued by the province

NB Power president Keith Cronkhite said he was "very disappointed" with debt increasing last year instead of  falling and senior vice president and chief financial officer Darren Murphy said everything would be under the microscope this year to turn the utility's finances around.  

"We need to do better," said Murphy on Thursday

"We need to step back and make sure we're considering all options, including approaches like Newfoundland's ratepayer shield agreement on megaproject overruns, to achieve that objective because the objective is quickly closing in on us."

However, reviewing the subsidy program for the six pulp and paper mills is apparently off limits.

The subsidy program requires NB Power to buy down the cost of "firm" electricity bought by pulp and paper mills to a national average that is calculated by the Department of Natural Resources and Energy Development.

Last year the province declared the price mills in New Brunswick pay to be an average of  7.536 cents per kilowatt hour (kwh).  It is higher than rates in five other provinces that have mills, which the province points to as justification for the subsidies, even as Nova Scotia's 14% rate hike approval highlights broader upward pressure, although the true significance of that difference is not entirely clear.

In British Columbia, the large forest products company Paper Excellence operates five pulp and paper mills which are charged 17.2 per cent less for firm electricity than the six mills in New Brunswick.

The Paper Excellence Paper Mill in Port Alberni, B.C. pays lower electricity prices than mills in New Brunswick, a benefit largely offset by higher property taxes. It's a factor New Brunswick does not count in calculating subsidies NB Power must pay. (Paper Excellence)
However, local property taxes on the five BC mills are a combined $7.8 million higher than the six New Brunswick plants, negating much of that difference.

The province's subsidy formula does not account for differences like that or for the fact New Brunswick mills buy a high percentage of their electricity at cheap non-firm prices.

Not counting the subsidies, NB Power already sells high volumes of what it calls interruptible and surplus power to industry at deep discounts on the understanding it can be cut off and redeployed elsewhere on short notice when needed.

Actual interruptions in service are rare.  Last year there were none, but NB Power sold 837 million kilowatt hours of the discounted power to industry at an average price of 4.9 cents per kwh.   

NB Power does not disclose how much of the $22 million or more in savings went to the six mills, but the price was 35 per cent below NB Power's posted rate for the plants and rivaled firm prices big mills receive anywhere in Canada, including Quebec.

Asked why the subsidy program ignores large amounts of discounted interruptible power used by New Brunswick mills in making comparisons between provinces, Brown said regulations governing the program require a comparison of firm prices only.

"The New Brunswick average rate is based on NB Power's published large industrial rate for firm energy, as required by the Electricity from Renewable Resources regulation," he wrote.

The subsidy program itself was imposed on NB Power by the province in 2012 to aid companies suffering after years of poor markets for forest products following the 2008 financial collapse and recession.  

Providing subsidies has cost NB Power $100 million so far and has continued even as markets for pulp products improved significantly and NB Power's own finances worsened.

Report warned against subsidies
NB Power has never directly criticized the program, but in a matter currently in front the of the New Brunswick Energy and Utilities Board looking at how NB Power might restructure its rates, including proposals such as seasonal rates that could prompt backlash, an independent consultant hired by the utility suggested rate subsidies to large export oriented manufacturing facilities, like pulp and paper mills, is generally a poor idea.

"We do not recommend offering subsidies to exporters," says the report by Christensen Associates Energy Consulting of Madison, Wis.

"There are two serious economic problems with subsidizing exports. The first is that the benefits may be less than the costs. The second problem is that subsidies tend to last forever, even if the circumstances that initially justified the subsidies have disappeared."

The Christensen report did not directly assess the merits of the current subsidy for pulp and paper mills but it addressed the issue because it said in the design of new rates "one NB Power business customer has raised the possibility that their electricity-intensive business ought to be granted subsidies because of the potential to generate extra benefits for the Province through increases in their exports"

That, said Christensen, rarely benefits the public.

"The direct costs of the subsidies are the subsidies themselves, a part of which ends up in the pockets of out-of-province consumers of the exported goods," said the report.  

"But there are also indirect costs due to the fact that the subsidies are financed through higher electricity prices, which means that other electricity customers have less money to spend on services provided by local businesses, thus putting a drag on the local economy."

The province does not agree.

Asked whether it has any studies or cost-benefit reviews that show the subsidy program is a net benefit to New Brunswick, the department cited none but maintained it is an important initiative, even as elsewhere governments have offered electricity bill credit relief to ratepayers.

"The program was designed to give large industrial businesses the ability to compete on a level energy field," wrote Brown.
 

 

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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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