Niagara tunnel project could be three years late

By Toronto Star


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Ontario Power Generation confirmed today that its Niagara tunnel project could be three years late in a worst-case scenario, but the province-owned power producer denied reports that the cost of the hydroelectric venture is at risk of more than doubling.

The tunnel is being built to divert more water from Niagara Falls to the Adam Beck power station, which will be able to generate enough additional electricity to power 160,000 homes.

But Big Becky, the massive boring machine that's digging the 10-kilometre, 14-metre wide tunnel has run into some dangerous rock conditions and is behind schedule. OPG disclosed late last year that the project will be late and over budget, but the details are still under review.

Global News, citing an interview with John Murphy, OPG's executive vice-president of hydro, reported that the project could cost $1.6 billion and be three years late under a worst-case scenario. It also reported the original cost estimate as $600 million.

However, OPG spokesperson Ted Gruetzner told the Star that the original estimate was $985 million. He doesn't dispute the $1.6 billion figure, just the suggestion it's more than doubling the cost of the project. In reality it would represent a 62 per cent increase.

Gruetzner also said it's unclear how much of that additional costs, if any, will be borne by electricity ratepayers. OPG is still negotiating its contract with Strabag AG, the Austrian company leading the project. A dispute review board is expected to determine who will bear the cost or whether it should be shared between the two parties.

"Once we do get the final timelines we'll announce that," said Gruetzner, adding that the update could come next month.

OPG says that even in a worst-case scenario the project is still economical because the tunnel will deliver clean electricity for more than 90 years. But critics say the company should have known about the rock conditions before committing to such a complex engineering project.

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Customers on the hook for $5.5 billion in deferred BC Hydro operating costs: report

BC Hydro Deferred Regulatory Assets detail $5.5 billion in costs under rate-regulated accounting, to be recovered from ratepayers, highlighting B.C. Utilities Commission oversight, audit scrutiny, financial reporting impacts, and public utility governance.

 

Key Points

BC Hydro defers costs as regulatory assets to recover from ratepayers, influencing rates and financial reporting.

✅ $5.5B in deferred costs recorded as net regulatory assets

✅ Rate impacts tied to B.C. Utilities Commission oversight

✅ Auditor General to assess accounting and governance

 

Auditor General Carol Bellringer says BC Hydro has deferred $5.5 billion in expenses that it plans to recover from ratepayers in the future, as rates to rise by 3.75% over two years.

Bellringer focuses on the deferred expenses in a report on the public utility's use of rate-regulated accounting to control electricity rates for customers.

"As of March 31, 2018, BC Hydro reported a total net regulatory asset of $5.455 billion, which is what ratepayers owe," says the report. "BC Hydro expects to recover this from ratepayers in the future. For BC Hydro, this is an asset. For ratepayers, this is a debt."

She says rate-regulated accounting is used widely across North America, but cautions that Hydro has largely overridden the role of the independent B.C. Utilities Commission to regulate rates.

"We think it's important for the people of B.C. and our members of the legislative assembly to better understand rate-regulated accounting in order to appreciate the impact it has on the bottom line for BC Hydro, for government as a whole, for ratepayers and for taxpayers, especially following a three per cent rate increase in April 2018," Bellringer said in a conference call with reporters.

Last June, the B.C. government launched a two-phase review of BC Hydro to find cost savings and look at the direction of the Crown utility, amid calls for change from advocates.

The review came shortly after a planned government rate freeze was overturned by the utilities commission, which resulted in a three per cent rate increase in April 2018.

A statement by BC Hydro and the government says a key objective of the review due this month is to enhance the regulatory oversight of the commission.

Bellringer's office will become BC Hydro's auditor next year — and will be assessing the impact of regulation on the utility's financial reporting.

"It is a complex area and confidence in the regulatory system is critical to protect the public interest," wrote Bellringer.

 

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Climate change: Greenhouse gas concentrations again break records

Rising Greenhouse Gas Concentrations drive climate change, with CO2, methane, and nitrous oxide surging; WMO data show higher radiative forcing, elevated pre-industrial baselines, and persistent atmospheric concentrations despite Paris Agreement emissions pledges.

 

Key Points

Increasing atmospheric CO2, methane, and nitrous oxide levels that raise radiative forcing and drive warming.

✅ WMO data show CO2 at 407.8 ppm in 2018, above decade average

✅ Methane and nitrous oxide surged, elevating total radiative forcing

✅ Concentrations differ from emissions; sinks absorb about half

 

The World Meteorological Organization (WMO) says the increase in CO2 was just above the average rise recorded over the last decade.

Levels of other warming gases, such as methane and nitrous oxide, have also surged by above average amounts.

Since 1990 there's been an increase of 43% in the warming effect on the climate of long lived greenhouse gases.

The WMO report looks at concentrations of warming gases in the atmosphere rather than just emissions.

The difference between the two is that emissions refer to the amount of gases that go up into the atmosphere from the use of fossil fuels, such as burning coal for coal-fired electricity generation and from deforestation.

Concentrations are what's left in the air after a complex series of interactions between the atmosphere, the oceans, the forests and the land. About a quarter of all carbon emissions are absorbed by the seas, and a similar amount by land and trees, while technologies like carbon capture are being explored to remove CO2.

Using data from monitoring stations in the Arctic and all over the world, researchers say that in 2018 concentrations of CO2 reached 407.8 parts per million (ppm), up from 405.5ppm a year previously.

This increase was above the average for the last 10 years and is 147% of the "pre-industrial" level in 1750.

The WMO also records concentrations of other warming gases, including methane and nitrous oxide, and some countries have reported declines in certain potent gases, as noted in US greenhouse gas controls reports, though global levels remain elevated. About 40% of the methane emitted into the air comes from natural sources, such as wetlands, with 60% from human activities, including cattle farming, rice cultivation and landfill dumps.

Methane is now at 259% of the pre-industrial level and the increase seen over the past year was higher than both the previous annual rate and the average over the past 10 years.

Nitrous oxide is emitted from natural and human sources, including from the oceans and from fertiliser-use in farming. According to the WMO, it is now at 123% of the levels that existed in 1750.

Last year's increase in concentrations of the gas, which can also harm the ozone layer, was bigger than the previous 12 months and higher than the average of the past decade.

What concerns scientists is the overall warming impact of all these increasing concentrations. Known as total radiative forcing, this effect has increased by 43% since 1990, and is not showing any indication of stopping.

There is no sign of a slowdown, let alone a decline, in greenhouse gases concentration in the atmosphere despite all the commitments under the Paris agreement on climate change and the ongoing global energy transition efforts," said WMO Secretary-General Petteri Taalas.

"We need to translate the commitments into action and increase the level of ambition for the sake of the future welfare of mankind," he added.

"It is worth recalling that the last time the Earth experienced a comparable concentration of CO2 was three to five million years ago. Back then, the temperature was 2-3C warmer, sea level was 10-20m higher than now," said Mr Taalas.

The UN Environment Programme will report shortly on the gap between what actions countries are taking to cut carbon, for example where Australia's emissions rose 2% recently, and what needs to be done to keep under the temperature targets agreed in the Paris climate pact.

Preliminary findings from this study, published during the UN Secretary General's special climate summit last September, indicated that emissions continued to rise during 2018, although global emissions flatlined in 2019 according to the IEA.

Both reports will help inform delegates from almost 200 countries who will meet in Madrid next week for COP25, following COP24 in Katowice the previous year, the annual round of international climate talks.

 

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Trump's Proposal to Control Ukraine's Nuclear Plants Sparks Controversy

US Control of Ukraine Nuclear Plants sparks debate over ZNPP, Zaporizhzhia, sovereignty, safety, ownership, and international cooperation, as Washington touts utility expertise, investment, and modernization to protect critical energy infrastructure amid conflict.

 

Key Points

US management proposal for Ukraine's nuclear assets, notably ZNPP, balancing sovereignty, safety, and investment.

✅ Ukraine retains ownership; any transfer requires parliament approval.

✅ ZNPP safety risks persist amid occupation near active conflict.

✅ International reactions split: sovereignty vs. cooperation and investment.

 

In a recent phone call with Ukrainian President Volodymyr Zelenskyy, U.S. President Donald Trump proposed that the United States take control of Ukraine's nuclear power plants, including the Zaporizhzhia Nuclear Power Plant (ZNPP), which has been under Russian occupation since early in the war and where Russia is reportedly building power lines to reactivate the plant amid ongoing tensions. Trump suggested that American ownership of these plants could be the best protection for their infrastructure, a proposal that has sparked controversy in policy circles, and that the U.S. could assist in running them with its electricity and utility expertise.

Ukrainian Response

President Zelenskyy promptly addressed Trump's proposal, stating that while the conversation focused on the ZNPP, the issue of ownership was not discussed. He emphasized that all of Ukraine's nuclear power plants belong to the Ukrainian people and that any transfer of ownership would require parliamentary approval . Zelenskyy clarified that while the U.S. could invest in and help modernize the ZNPP, ownership would remain with Ukraine.

Security Concerns

The ZNPP, Europe's largest nuclear facility, has been non-operational since its occupation by Russian forces in 2022. The plant's location near active conflict zones raises significant safety risks that the IAEA has warned of in connection with attacks on Ukraine's power grids, and its future remains uncertain. Ukrainian officials have expressed concerns about potential Russian provocations, such as explosions, especially after UN inspectors reported mines at the Zaporizhzhia plant near key facilities, if and when Ukraine attempts to regain control of the plant.

International Reactions

The proposal has elicited mixed reactions both within Ukraine and internationally. Some Ukrainian officials view it as an opportunistic move by the U.S. to gain control over critical infrastructure, while others see it as a potential avenue for modernization and investment, alongside expanding wind power that is harder to destroy in wartime. The international community remains divided on the issue, with some supporting Ukraine's sovereignty over its nuclear assets and others advocating for a possible agreement on power plant attacks to ensure the plant's safety and future operation.

President Trump's proposal to have the U.S. take control of Ukraine's nuclear power plants has sparked significant controversy. While the U.S. offers expertise and investment, Ukraine maintains that ownership of its nuclear assets is a matter of national sovereignty, even as it has resumed electricity exports to bolster its economy. The situation underscores the complex interplay between security, sovereignty, and international cooperation in conflict zones.

 

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US Grid Gets an Overhaul for Renewables

FERC Transmission Planning Overhaul streamlines interregional grid buildouts, enabling high-voltage lines, renewable integration, and grid reliability to scale, cutting fossil reliance while boosting decarbonization, climate resilience, and affordability across regions facing demand and extreme weather.

 

Key Points

Federal rule updating interregional grid planning to integrate renewables, share costs, and improve reliability.

✅ Accelerates high-voltage, interregional lines for renewable transfer

✅ Optimizes transmission planning and cost allocation frameworks

✅ Boosts grid reliability, resilience, and emissions reductions

 

The US took a significant step towards a cleaner energy future on May 13th, 2024. The Federal Energy Regulatory Commission (FERC) approved the first major update to the country's electric transmission policy in over a decade, while congressional Democrats continue to push for action on aggregated DERs within FERC's remit today. This overhaul aims to streamline the process of building new power lines, specifically those that connect different regions. This improved connectivity is crucial for integrating more renewable energy sources like wind and solar into the national grid.

The current system faces challenges in handling the influx of renewables, and the aging U.S. grid amplifies those hurdles today. Renewable energy sources are variable by nature – the sun doesn't always shine, and the wind doesn't always blow. Traditionally, power grids have relied on constantly running power plants, like coal or natural gas, to meet electricity demands. These plants can be easily adjusted to produce more or less power as needed. However, renewable energy sources require a different approach.

The new FERC policy focuses on building more interregional transmission lines. These high-voltage power lines would allow electricity generated in regions with abundant solar or wind power, and even enable imports of green power from Canada in certain corridors, to be transmitted to areas with lower renewable energy resources. For example, solar energy produced in sunny states like California could be delivered to meet peak demand on the East Coast during hot summer days.

This improved connectivity offers several advantages. Firstly, it allows for a more efficient use of renewable resources. Secondly, it reduces the need for fossil fuel-based power plants, leading to cleaner air and lower greenhouse gas emissions. Finally, a more robust grid is better equipped to handle extreme weather events, which are becoming increasingly common due to climate change, and while Biden's climate law shows mixed results on decarbonization, stronger transmission supports resilience.

The need for an upgrade is undeniable. The Biden administration has set ambitious goals for decarbonizing the power sector by 2035, including proposals for a clean electricity standard as a pathway to those targets. A study by the US Department of Energy estimates that achieving this target will require more than doubling the country's regional transmission capacity and increasing interregional capacity by more than fivefold. The aging US grid is already struggling to keep up with current demands, and without significant improvements, it could face reliability issues in the future.

The FERC's decision has been met with praise from environmental groups and renewable energy companies. They see it as a critical step towards achieving a clean energy future. However, some stakeholders, including investor-owned utilities, have expressed concerns about the potential costs associated with building new transmission lines, citing persistent barriers to development identified in recent Senate testimony. Finding the right balance between efficiency, affordability, and environmental responsibility will be key to the success of this initiative.

The road ahead won't be easy. Building new power lines is a complex process that can face opposition from local communities, and broader disputes over electricity pricing changes often complicate planning and approvals. However, the potential benefits of a modernized grid are significant. By investing in this overhaul, the US is taking a crucial step towards a more reliable, sustainable, and cleaner energy future.

 

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EU draft shows plan for more fixed-price electricity contracts

EU Electricity Market Reform advances two-way CfDs, PPAs, and fixed-price tariffs to cut volatility, support renewables and nuclear, stabilize investor revenues, and protect consumers from price spikes across wholesale power markets.

 

Key Points

An EU plan expanding two-way CfDs, PPAs, and fixed-price contracts to curb price swings and support low-carbon power.

✅ Two-way CfDs return excess revenues to consumers

✅ Boosts PPAs and fixed-price retail options

✅ Targets renewables, nuclear; limits fossil exposure

 

The European Union wants to expand the use of contracts that pay power plants a fixed price for electricity, a draft proposal showed, as part of an electricity market revamp to shield European consumers from big price swings.

The European Commission pledged last year to reform the EU's electricity market rules, after record-high gas prices, caused by cuts to Russian flows, sent power prices soaring, prompting debates over gas price cap strategies in response.

A draft of the EU executive's proposal, seen by Reuters on Tuesday and due to be published on Mar. 16, steered clear of the deep redesign of the electricity market that some member states have called for, even as nine EU countries opposed sweeping reforms as a fix earlier in the crisis, suggesting instead limited changes to nudge countries towards more predictable, fixed-price power contracts.

If EU countries want to support new investments in wind, solar, geothermal, hydropower and nuclear electricity, for example - a point over which France and Germany have wrestled - they should use a two-way contract for difference (CfD) or an equivalent contract, the draft said.

The aim is to provide a stable revenue stream to investors, and help make consumers' energy bills less volatile, even though rolling back electricity prices is tougher than it appears. Restricting this support to renewable and low-carbon electricity also aims to speed up Europe's shift away from fossil fuels.

Two-way CfDs offer generators a fixed "strike price" for their electricity, regardless of the price in short-term energy markets. If the market price is above the CfD strike price, then the extra revenue the generator receives should be handed out to final electricity consumers, the draft EU document said.

Countries should also make it easier for power buyers to sign power purchase agreements (PPA) - another type of long-term contract to directly buy electricity from a generator.

Governments should also make sure consumers have access to fixed-price electricity contracts - echoing France's new electricity pricing scheme to reassure Brussels - giving them the option to avoid a contract that would expose them to volatile prices swings in energy markets, the draft said.

If European energy prices were to spike to extreme levels again, the Commission suggested allowing national governments to temporarily intervene to fix prices while weighing emergency measures to limit prices where needed, and offer consumers and small businesses a share of their electricity at a lower price.

 

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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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