BCUC reduces BC Hydro rates

By BC Hydro


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VANCOUVER – Minister of Energy and Mines Rich Coleman recently announced the British Columbia Utilities Commission BCUC has been directed by the provincial government to reduce BC Hydro's rate increases over three years by 50 per cent. This is consistent with 2011's BC Hydro review.

The 2011-12 increase will stay at eight percent as previously directed by the BCUC on an interim basis and implemented by BC Hydro on May 1. For 2012-13, rates have gone up by 7.1 per cent, allowing BC Hydro to pay down its deferral and regulatory accounts at an accelerated pace. This increase was also recommended by the BCUC and put in place on April 1, 2012. An average household has seen bills change by about $5.40 per month.

On April 1, 2013, rates will be kept to a minimum, rising by only 1.44 per cent or $1.20 for an average monthly bill. The total rate increase over three years will be about 17 per cent, ensuring that British Columbian families pay among the lowest electricity rates in North America.

The provincial government and BC Hydro have achieved this rate reduction by lowering BC HydroÂ’s costs and by the Province forgoing $75 million in dividends over three years.

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Energy Ministry may lower coal production target as Chinese demand falls

Indonesia Coal Production Cuts reflect weaker China demand, COVID-19 impacts, falling HBA reference prices, and DMO sales to PLN, pressuring thermal coal output, miner budgets, and investment plans under the 2020 RKAB.

 

Key Points

Planned 2020 coal output reductions from China demand slump, lower HBA prices, and DMO constraints impacting miners.

✅ China demand drop reduces exports and thermal coal shipments.

✅ HBA reference price decline pressures margins and cash flow.

✅ DMO sales to PLN limit revenue; investment plans may slow.

 

The Energy and Mineral Resources (ESDM) Ministry is considering lowering the coal production target this year as demand from China has shown a significant decline, with China power demand drops reported, since the start of the outbreak of the novel coronavirus in the country late last year, a senior ministry official has said.

The ministry’s coal and mineral director general Bambang Gatot Ariyono said in Jakarta on March 12 that the decline in the demand had also caused a sharp drop in coal prices on the world market, and China's plan to reduce coal power has further weighed on sentiment, which could cause the country’s miners to reduce their production.

The 2020 minerals and coal mining program and budget (RKAB) has set a current production goal of 550 million tons of coal, a 10 percent increase from last year’s target. As of March 6, 94.7 million tons of coal had been mined in the country in the year.

“With the existing demand, revision to this year’s production is almost certain,” he said, adding that the drop in demand had also caused a decline in coal prices.

Indonesia’s thermal coal reference price (HBA) fell by 26 percent year-on-year to US$67.08 per metric ton in March, according to a Standards & Poor press release on March 5.  At home, the coal price is also unattractive for local producers. Under the domestic market obligation (DMO) policy, miners are required to sell a quarter of their production to state-owned electricity company PLN at a government-set price, even as imported coal volumes rise in some markets. This year’s coal reference price is $70 per metric ton, far below the internal prices before the coronavirus outbreak hit China.

The ministry’s expert staff member Irwandy Arif said China had reduced its coal demand by 200,000 tons so far, as six of its coal-fired power plants had suspended operation due to the significant drop in electricity demand. Many factories in the country were closed as the government tried to halt the spread of the new coronavirus, which caused the decline in energy demand and created electric power woes for international supply chains.

“At present, all mines in Indonesia are still operating normally, while India is rationing coal supplies amid surging electricity demand. But we have to see what will happen in June,” he said.

The ministry predicted that the low demand would also result in a decline in coal mining investment, as clean energy investment has slipped across many developing nations.

The ministry set a $7.6 billion investment target for the mining sector this year, up from $6.17 billion last year, even as Israel reduces coal use in its power sector, which may influence regional demand. The year’s total investment realization was $192 million as of March 6, or around 2.5 percent of the annual target. 

 

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Daimler Details Gigantic Scope of Its Electrification Plan

Daimler Electric Strategy drives EV adoption with global battery factories, Mercedes-Benz electrified models, battery cells procurement, and major investments spanning vans, buses, trucks, and production capacity across Europe, Asia, and the USA.

 

Key Points

Daimler Electric Strategy is a multi-billion EV roadmap for batteries, factories, and 130 electrified Mercedes models.

✅ Eight battery factories across three continents

✅ EUR 10B for EV lineup; EUR 20B for battery cells

✅ 130 electrified variants plus vans, buses, trucks

 

Throughout 2018, we all witnessed the unprecedented volume of promises for a better future made by the giants of the auto industry. All say they've committed billions so that, within a decade, combustion engines will be on their way out.

The most active of all companies when talking about promises is Volkswagen, which, amid German plant closures, time and time again has said it will do this or that and completely change the meaning of car in the coming years. But there are other planning the same thing, possibly with even vaster resources.

Planning to end the year on a high note, Daimler detailed its plan for the electric future once again on Tuesday, this time making no secret of its gigantic size and scope.

As announced before, Daimler plans to build electric cars, but also manufacture electric batteries for its own and others’ use, and has launched a US energy storage company to support this strategy. These batteries will eventually be produced by Daimler in eight factories on three continents.

Batteries are already rolling off the lines in Kamenz, and a second facility will begin doing so next year. Two more factories will be built in Stuttgart-Untertürkheim, one at the company’s Sindelfingen site, and one each at the sites in Beijing (China), Bangkok (Thailand) and Tuscaloosa (USA).

In all, one billion EUR will be invested in the expansion of the global battery production network, but that is nothing compared to the 10 billion to be poured into the expansion of the Mercedes-Benz car fleet.

On top of that, 20 billion EUR will go towards the purchase of battery cells from producers all around the world, echoing other automakers' battery sourcing strategies worldwide over the next 12 years.

“After investing billions of euros in the development of the electric fleet and the expansion of our global battery network, we are now taking the next step,” said in a statement Dieter Zetsche, Daimler chairman of the board.

“With the purchase of battery cells for more than 20 billion euros, we are systematically pushing forward with the transformation into the electric future of our company.”

By 2022, the carmaker plans to launch 130 electrified variants of its cars, as cheaper, more powerful batteries become available, adding to them electric vans, buses and trucks. That pretty much means all the models and variants sold by Daimler globally will be at least partially powered by electricity.

 

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'Transformative change': Wind-generated electricity starting to outpace coal in Alberta

Alberta wind power surpasses coal as AESO reports record renewable energy feeding the grid, with natural gas conversions, solar growth, energy storage, and decarbonization momentum lowering carbon intensity across Alberta's electricity system.

 

Key Points

AESO data shows wind surpassing coal in Alberta, driven by coal retirements, gas conversions, and growing renewables.

✅ AESO reports wind output above coal several times this week

✅ Coal units retire or convert to natural gas, boosting renewables

✅ Carbon intensity falls; storage and solar improve grid reliability

 

Marking a significant shift in Alberta energy history, wind generation trends provided more power to the province's energy grid than coal several times this week.

According to data from the Alberta Energy System Operator (AESO) released this week, wind generation units contributed more energy to the grid than coal at times for several days. On Friday afternoon, wind farms contributed more than 1,700 megawatts of power to the grid, compared to around 1,260 megawatts from coal stations.

"The grid is going through a period of transformative change when we look at the generation fleet, specifically as it relates to the coal assets in the province," Mike Deising, AESO spokesperson, told CTV News in an interview.

The shift in electricity generation comes as more coal plants come offline in Alberta, or transition to cleaner energy through natural gas generation, including the last of TransAlta's units at the Keephills Plant west of Edmonton.

Only three coal generation stations remain online in the province, at the Genesee plant southwest of Edmonton, as the coal phase-out timeline advances. Less available coal power, means renewable energy like wind and solar make up a greater portion of the grid.

 

EVOLUTION OF THE GRID
"Our grid is changing, and it's evolving," Deising said, adding that more units have converted to natural gas and companies are making significant investments into solar and wind energy.

For energy analyst Kevin Birn with IHS Markit, that trend is only going to continue.

"What we've seen for the last 24 to 36 months is a dramatic acceleration in ambition, policy, and projects globally around cleaner forms of energy or lower carbon forms of energy," Birn said.

Birn, who is also chief analyst of Canadian Oil Markets, added that not only has the public appetite for cleaner energy helped fuel the shift, but technological advancements have made renewables like wind and solar more cost-efficient.

"Alberta was traditionally heavily coal-reliant," he said. "(Now) western Canada has quite a diverse energy base."


LESS CARBON-INTENSIVE
According to Birn, the shift in energy production marks a significant reduction in carbon emissions as Alberta progresses toward its last coal plant closure milestone.

Ten years ago, IHS Markit estimates that Alberta's grid contributed about 900 kilograms of carbon dioxide equivalent per megawatt-hour of energy generation.

"That (figure is) really representing the dominance and role of coal in that grid," Birn said.

Current estimates show that figure is closer to 600 kilograms of CO2 equivalent.

"That means the power you and I are using is less carbon-intensive," Birn said, adding that figure will continue to fall over the next couple of years.


RENEWABLES HERE TO STAY
While many debate whether Alberta's energy is getting clean enough fast enough, Birn believes change is coming.

"It's been a half-decade of incredible price volatility in the oil market which had really dominated this sector and region," the analyst said.

"When I think of the future, I see the power sector building on large-scale renewables, which means decarbonization, and that provides an opportunity for those tech companies looking for clean energy places to land facilities."

Coal and natural gas are considered baseline assets by the AESO, where generation capacity does not shift dramatically, though some utilities report declining coal returns in other markets.

"Wind is a variable resource. It will generate when the wind is blowing, and it obviously won't when the wind is not," Deising said. "Wind and solar can ramp quickly, but they can drop off quite quickly, and we have to be prepared.

"We factor that into our daily planning and assessments," he added. "We follow those trends and know where the renewables are going to show up on the system, how many renewables are going to show up."

Deising says one wind plant in Alberta currently has an energy storage capacity to preserve renewably generated electricity during summer demand records and peak hours as needed. As the technology becomes more affordable, he expects more plants to follow suit.

"As a system operator, our job is to make sure as (the grid) is evolving we can continue to provide reliable power to Albertans at every moment every day," Deising said. "We just have to watch the system more carefully." 

 

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China's nuclear energy on steady development track, say experts

China Nuclear Power Expansion accelerates with reactor approvals, Hualong One and CAP1400 deployments, rising gigawatts, clean energy targets, carbon neutrality goals, and grid reliability benefits to meet coastal demand and reduce emissions.

 

Key Points

An accelerated reactor buildout to add clean capacity, curb emissions, and improve grid reliability nationwide.

✅ Approvals surge for Hualong One and CAP1400 third-gen reactors

✅ Capacity targets approach 100 GW installed by 2030

✅ Supports carbon neutrality, energy security, and lower costs

 

While China has failed to accomplish its 2020 nuclear target of 58 gigawatts under operation and 30 GW under construction, insiders are optimistic about prospects for the nonpolluting energy resource in China over the next five years as the country has stepped up nuclear approvals and construction since 2020.

China expects to record 49 operating nuclear facilities and capacity of more than 51 GW as of the end of 2020. Nuclear power currently makes up around 2.4 percent of the country's total installed energy capacity, said the China Nuclear Energy Association. There are 19 facilities that have received approval and are under construction, with capacity exceeding 20 GW, ranking top globally as nuclear project milestones worldwide continue, it said.

"With surging power demand from coastal regions, more domestic technology, including next-gen nuclear, will be adopted with installations likely nearing 100 GW by the end of 2030," said Wei Hanyang, a power market analyst at Bloomberg New Energy.

Following the Fukushima nuclear reactor disaster in 2011 in Japan, China has, like many countries including Japan, Germany and Switzerland, suspended nuclear power project approvals for a period, including construction of the pilot project of Shidaowan nuclear power plant in Shandong province that uses CAP1400 technology, based on third-generation Westinghouse AP1000 reactor technology.

As China promotes greener development and prioritizes safety and security of nuclear power plant construction, it has pledged to hit peak emissions before 2030 and achieve carbon neutrality by 2060, with electricity meeting 60% of energy use by 2060 according to Shell, the Shidaowan plant, originally scheduled to launch construction in 2014 and enter service in 2018, is expected to start fuel loading and begin operations this year.

Joseph Jacobelli, an independent energy analyst and executive vice-president for Asia business at Cenfura Ltd, a smart energy services company, said recent developments confirm China's ongoing commitment to further boost the country's nuclear sector.

"The nuclear plants can help meet China's goal of reducing greenhouse gas emissions as the country reduces coal power production and provide air pollution-free energy at a lower cost to consumers. China's need for clean energy means that nuclear power generation definitely has an important place in the long-term energy mix," Jacobelli said.

He added that Chinese companies' cost control capabilities and technological advancements, and operational performance improvements such as the AP1000 refueling outage record, are also likely to continue providing domestic companies with advantages, as the cost per kilowatt-hour is very important, especially as solar, wind and other clean energy solutions become even cheaper over the next few years.

China approved two nuclear projects in 2020- Hainan Changjiang nuclear power plant unit 2 and Zhejiang San'ao nuclear power plant unit 1. This is after the country launched three new nuclear power plants in 2019 in the provinces of Shandong, Fujian and Guangdong, which marked the end of a moratorium on new projects.

The Zhejiang San'ao nuclear power plant saw concrete poured for unit 1 on Dec 31, according to its operator China General Nuclear. It will be the first of six Hualong One pressurized water reactors to be built at the site as well as the first Chinese nuclear power plant project to involve private capital.

Jointly invested, constructed and operated by CGN, Zheneng Electric Power, Wenzhou Nuclear Energy Development, Cangnan County Haixi Construction Development and Geely Maijie Investment, the project creates a new model of mixed ownership of nuclear power enterprises, said CGN.

The world's first Hualong One reactor at unit 5 of China National Nuclear Corp's Fuqing nuclear plant in Fujian province was connected to the grid in November. With the start of work on San'ao unit 1, China now has further seven Hualong One units under construction, including Fuqing 6, which is scheduled to go online this year.

CNNC is also constructing one unit at Taipingling in Guangdong and two at Zhangzhou in Fujian province. CGN is building two at its Fangchenggang site in Guangxi Zhuang autonomous region. In addition, two Hualong One units are under construction at Karachi in Pakistan, while CGN proposes to use a UK version of the Hualong One at Bradwell in the United Kingdom, aligning with the country's green industrial revolution strategy.

 

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Nuclear alert investigation won't be long and drawn out, minister says

Pickering Nuclear False Alert Investigation probes Ontario's emergency alert system after a provincewide cellphone, radio, and TV warning, assessing human error, Pelmorex safeguards, Emergency Management Ontario oversight, and communication delays.

 

Key Points

An Ontario probe into the erroneous Pickering nuclear alert, focusing on human error, system safeguards, and oversight.

✅ Human error during routine testing suspected

✅ Pelmorex safeguards and EMO protocols under review

✅ Two-hour all-clear delay prompts communication fixes

 

An investigation into a mistaken Pickering alert warning of an incident at the Pickering Nuclear Generating Station will be completed fairly quickly, Ontario's solicitor general said.

Sylvia Jones tapped the chief of Emergency Management Ontario to investigate how the alert warning of an unspecified problem at the facility was sent in error to cellphones, radios and TVs across the province at about 7:30 a.m. Sunday.

"It's very important for me, for the people of Ontario, to know exactly what happened on Sunday morning," said Jones. "Having said that, I do not anticipate this is going to be a long, drawn-out investigation. I want to know what happened and equally important, I want some recommendations on insurances and changes we can make to the system to make sure it doesn't happen again."


Initial observations suggest human error was responsible for the alert that was sent out during routine tests of the emergency alert, Jones said.

"This has never happened in the history of the tests that they do every day, twice a day, but I do want to know exactly all of the issues related to it, whether it was one human error or whether it was a series of things."

Martin Belanger, the director of public alerting for Pelmorex, a company that operates the alert system, said there are a number of safeguards built in, including having two separate platforms for training and live alerts.

"The software has some steps and some features built in to minimize that risk and to make sure that users will be able to know whether or not they're sending an alert through the...training platform or whether they're accessing the live system in the case of a real emergency," he said.

Only authorized users have access to the system and the province manages that, Belanger said. Once in the live system, features make the user aware of which platform they are using, with various prompts and messages requiring the user's confirmation. There is a final step that also requires the user to confirm their intent of issuing an alert to cellphones, radio and TVs, Belanger said.

On Sunday, a follow-up alert was sent to cellphones nearly two hours after the original notification, and similar grid alerts in Alberta underscore timing and public expectations.

NDP energy critic Peter Tabuns is critical of that delay, noting that ongoing utility scam warnings can further erode public trust.

"That's a long time for people to be waiting to find out what's really going on," he said. "If people lose confidence in this system, the ability to use it when there is a real emergency will be impaired. That's dangerous."

Treasury Board President Peter Bethlenfalvy, who represents the riding of Pickering-Uxbridge, said getting that alert Sunday morning was "a shock to the system," and he too wants the investigation to address the reason for the all-clear delay.

"We all have a lot of questions," he said. "I think the public has every right to know exactly what went on and we feel exactly the same way."

People in the community know the facility is safe, Bethlenfalvy said.

"We have some of the safest nuclear assets in the world -- the safest -- at 60 per cent of Ontario's electricity," he said.

A poll released Monday found that 82 per cent of Canadians are concerned about spills from nuclear reactors contaminating drinking water and 77 per cent are concerned about neighbourhood safety and security risks for those living close to nuclear plants. Oraclepoll Research surveyed 2,094 people across the country on behalf of Friends of the Earth between Jan. 2 and 12, the day of the false alert. The have a margin of error of plus or minus 2.1 per cent, 19 times out of 20.

The wording of Sunday's alert caused much initial confusion, and events like a power outage in London show how morning disruptions can amplify concern, warning residents within 10 kilometres of the plant of "an incident," though there was no "abnormal" release of radioactivity and residents didn't need to take protective steps, but emergency crews were responding.

In the event of a real emergency, the wording would be different, Jones said.

"There are a number of different alerts that are already prepared and are ready to go," she said. "We have the ability to localize it to the communities that are impacted, but because this was a test, it went provincewide."

Jones said she expects the results of the probe to be made public.

The Pickering nuclear plant has been operating since 1971, and had been scheduled to be decommissioned this year, but the former Liberal government -- and the current Progressive Conservative government -- committed to keeping it open until 2024. Decommissioning is now set to start in 2028.

It operates six CANDU reactors, generates 14 per cent of Ontario's electricity and is responsible for 4,500 jobs across the region, according to OPG, and OPG's credit rating remains stable.

During the COVID-19 pandemic, Hydro One employees supported the Province of Ontario in the fight against COVID-19.

The Green party is calling on the province to use this opportunity to review its nuclear emergency response plan, including pandemic staffing contingencies, last updated in 2017 and subject to review every five years.

Toronto Mayor John Tory praised Ontario for swiftly launching an investigation, but said communication between city and provincial officials wasn't what it should have been under the circumstances.

"It was a poor showing and I think everybody involved knows that," he said. "We've got to make sure it's not repeated."

 

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Biden administration pushes to revitalize coal communities with clean energy projects

Coal-to-Clean Energy Hubs leverage Bipartisan Infrastructure Law and Inflation Reduction Act funding to repurpose mine lands with microgrids, advanced nuclear, carbon capture, and rare earth processing, boosting energy security, jobs, and grid modernization.

 

Key Points

They are federal projects converting coal communities and mine lands into clean energy hubs, repurposing infrastructure.

✅ DOE demos on mine lands: microgrids, nuclear, carbon capture.

✅ Funding from BIL, CHIPS and IRA targets energy communities.

✅ Rare earths from coal waste bolster EV supply chains.

 

The Biden administration is channeling hundreds of millions of dollars in clean energy funding from recent legislation into its efforts to turn coal communities into clean energy hubs, the White House said.

The administration gave an update on its push across agencies to kick-start projects nationwide with funding Congress approved during Biden’s first two years in office. The effort includes $450 million from the Bipartisan Infrastructure Law that the Department of Energy will allocate to an array of new clean energy demonstration projects on former mine lands.

“These projects could focus on a range of technologies from microgrids to advanced nuclear to power plans with carbon capture,” Energy Secretary Jennifer Granholm said on a call with reporters Monday. “They’ll prove out the potential to reactivate or repurpose existing infrastructure like transmission lines and substations across an aging U.S. power grid, and these projects could spur new economic development in these communities.”

Among the projects the White House highlighted, it said $16 million from the infrastructure law will go to the University of North Dakota and West Virginia University to create design studies for the first-ever full-scale refinery facility in the U.S. that could extract and separate rare earth elements and minerals from coal mine waste streams. The materials are critical for electric vehicle-battery components that are currently heavily sourced from outside the U.S.

“Those efforts will pave the way toward building a first of its kind facility that produces essential materials for solar panels, wind turbines, EVs and more while cleaning up polluted land and water and creating good-paying jobs for local workers,” Granholm said.

Biden created an interagency working group focused on revitalizing coal-power communities through federal investments when he took office. In 2021, the group selected 25 priority areas ranging from West Virginia to Wyoming to focus on development, as high natural gas prices strengthened the case for clean electricity. There are nearly 18,000 identified mine sites across 1.5 million acres in the United States, according to the White House.

The massive effort fits into a broader Biden administration push to both fight climate change and support communities that have lost economic activity during a transition away from fossil fuel sources such as coal. While Biden’s most ambitious clean energy plans fell flat in Congress in the face of opposition from Republicans and some Democrats after the previous administration’s power plant overhaul, three major laws still unlocked funding for his administration to deploy.

Many of the initiatives are made possible through the Bipartisan Infrastructure Law, Chips and Science Act and the Inflation Reduction Act, even without a clean electricity standard on the books. The task force aims to make sure communities most affected by the changing energy landscape are taking maximum advantage of the federal benefits.

“Those new and expanded operations are coming to energy communities and creating good paying jobs,” Biden’s senior advisor for clean energy innovation and implementation John Podesta said on the call. “These laws can provide substantial federal support to energy communities like capping abandoned oil and gas wells, extracting critical minerals, building battery factories and launching demonstration projects in carbon capture or green hydrogen.”

The administration touted the potential benefits of the Inflation Reduction Act, a bill passed by Democrats to spur clean energy investments last year, even as early assessments show mixed results to date. At the time, U.S. consumers were dealing with decades-high inflation fueled in part by an energy crisis and high gas prices that drove debate — a point Republicans emphasized as the plan moved through Congress.

Deputy Treasury Secretary Wally Adeyemo said the Inflation Reduction Act aims to both “lower the deficit, as well as promote our energy security, lowering energy costs for consumers and combatting climate change.”

“As the Treasury works to implement the law, we’re focused on ensuring that all Americans benefit from the growth of the clean energy economy, particularly those who live in communities that have been dependent on the energy sector for job for a long time,” Adeyemo told reporters. “Economic growth and productivity are higher when all communities are able to reach their full potential.”

 

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