Natural gas, deregulation blamed for high prices

Saamis Solar Park advances Medicine Hat's renewable energy strategy, as DP Energy secures AUC approval for North America's largest urban solar, repurposing contaminated land; capacity phased from 325 MW toward an initial 75 MW.

Key Points

A 325 MW solar project in Medicine Hat, Alberta, repurposing contaminated land; phased to 75 MW under city ownership.

✅ City acquisition scales capacity to 75 MW in phased build

✅ AUC approval enables construction and grid integration

✅ Reuses phosphogypsum-impacted land near fertilizer plant

DP Energy, an Irish renewable energy developer, has finalized the sale of the Saamis Solar Park—a 325 megawatt (MW) solar project—to the City of Medicine Hat in Alberta, Canada. This transaction marks the development of North America's largest urban solar initiative, while mirroring other Canadian clean-energy deals such as Canadian Solar project sales that signal market depth.

Project Development and Approval

DP Energy secured development rights for the Saamis Solar Park in 2017 and obtained a development permit in 2021. In 2024, the Alberta Utilities Commission (AUC) granted approval for construction and operation, reflecting Alberta's solar growth trends in recent years, paving the way for the project's advancement.

Strategic Acquisition by Medicine Hat

The City of Medicine Hat's acquisition of the Saamis Solar Park aligns with its commitment to enhancing renewable energy infrastructure. Initially, the project was slated for a 325 MW capacity, which would significantly bolster the city's energy supply. However, the city has proposed scaling the project to a 75 MW capacity, focusing on a phased development approach, and doing so amid challenges with solar expansion in Alberta that influence siting and timing. This adjustment aims to align the project's scale with the city's current energy needs and strategic objectives.

Utilization of Contaminated Land

An innovative aspect of the Saamis Solar Park is its location on a 1,600-acre site previously affected by industrial activity. The land, near Medicine Hat's fertilizer plant, was previously compromised by phosphogypsum—a byproduct of fertilizer production. DP Energy's decision to develop the solar park on this site exemplifies a productive reuse of contaminated land, transforming it into a source of clean energy.

Benefits to Medicine Hat

The development of the Saamis Solar Park is poised to deliver multiple benefits to Medicine Hat:

• Energy Supply Enhancement: The project will augment the city's energy grid, much like municipal solar projects that provide local power, providing a substantial portion of its electricity needs.

• Economic Advantages: The city anticipates financial savings by reducing carbon tax liabilities, as lower-cost solar contracts have shown competitiveness, through the generation of renewable energy.

• Environmental Impact: By investing in renewable energy, Medicine Hat aims to reduce its carbon footprint and contribute to global sustainability efforts.

DP Energy's Ongoing Commitment

Despite the sale, DP Energy maintains a strong presence in Canada, where Indigenous-led generation is expanding, with a diverse portfolio of renewable energy projects, including solar, onshore wind, storage, and offshore wind initiatives. The company continues to focus on sustainable development practices, striving to minimize environmental impact while maximizing energy production efficiency.

The transfer of the Saamis Solar Park to the City of Medicine Hat represents a significant milestone in renewable energy development. It showcases effective land reutilization, strategic urban planning, and a shared commitment to sustainable energy solutions, aligning with federal green electricity procurement that reinforces market demand. This project not only enhances the city's energy infrastructure but also sets a precedent for integrating large-scale renewable energy projects within urban environments.

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Small Modular Reactors in Canada are advancing through provincial collaboration, offering nuclear energy, clean power and carbon reductions for grids, remote communities, and mines, with factory-built modules, regulatory roadmaps, and pre-licensing by the nuclear regulator.

Key Points

Compact, factory-built nuclear units for clean power, cutting carbon for grids, remote communities, and industry.

✅ Provinces: Ontario, Saskatchewan, New Brunswick collaborate

✅ Targets coal replacement, carbon cuts, clean baseload power

✅ Modular, factory-made units; 5-10 year deployment horizon

The premiers of Ontario, Saskatchewan and New Brunswick have committed to collaborate on developing nuclear reactor technology in Canada. 

Doug Ford, Scott Moe and Blaine Higgs made the announcement and signed a memorandum of understanding on Sunday in advance of a meeting of all the premiers. 

They will be working on the research, development and building of small modular reactors as a way to help their individual provinces reduce carbon emissions and move away from non-renewable energy sources like coal. 

Small modular reactors are easy to construct, are safer than large reactors and are regarded as cleaner energy than coal, the premiers say. They can be small enough to fit in a school gym. 

SMRs are actually not very close to entering operation in Canada, though Ontario broke ground on its first SMR at Darlington recently, signaling early progress. Natural Resources Canada released an "SMR roadmap" last year, with a series of recommendations about regulation readiness and waste management for SMRs.

In Canada, about a dozen companies are currently in pre-licensing with the Canadian Nuclear Safety Commission, which is reviewing their designs.

"Canadians working together, like we are here today, from coast to coast, can play an even larger role in addressing climate change in Canada and around the world," Moe said.  

Canada's Paris targets are to lower total emissions 30 per cent below 2005 levels by 2030, and nuclear's role in climate goals has been emphasized by the federal minister in recent remarks. Moe says the reactors would help Saskatchewan reach a 70 per cent reduction by that year.

The provinces' three energy ministries will meet in the new year to discuss how to move forward and by the fall a fully-fledged strategy for the reactors is expected to be ready.

However, don't expect to see them popping up in a nearby field anytime soon. It's estimated it will take five to 10 years before they're built. 

Ford lauds economic possibilities
The provincial leaders said it could be an opportunity for economic growth, estimating the Canadian market for this energy at $10 billion and the global market at $150 billion.

Ford called it an "opportunity for Canada to be a true leader." At a time when Ottawa and the provinces are at odds, Higgs said it's the perfect time to show unity. 

"It's showing how provinces come together on issues of the future." 

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No other premiers have signed on to the deal at this point, but Ford said all are welcome and "the more, the merrier."

But developing new energy technologies is a daunting task. Higgs admitted the project will need national support of some kind, though he didn't specify what. The agreement signed by the premiers is also not binding. 

About 8.6 per cent of Canada's electricity comes from coal-fired generation. In New Brunswick that figure is much higher — 15.8 per cent — and New Brunswick's small-nuclear debate has intensified as New Brunswick Premier Blaine Higgs has said he worries about his province's energy producers being hit by the federal carbon tax.

Ontario has no coal-fired power plants, and OPG's SMR commitment aligns with its clean electricity strategy today. In Saskatchewan, burning coal generates 46.6 per cent of the province's electricity.

How would it work?
The federal government describes small modular reactors (SMRs) as the "next wave of innovation" in nuclear energy technology, and collaborations like the OPG and TVA partnership are advancing development efforts, and an "important technology opportunity for Canada."

Traditional nuclear reactors used in Canada typically generate about 800 megawatts of electricity, and Ontario is exploring new large-scale nuclear plants alongside SMRs, or enough to power about 600,000 homes at once (assuming that 1 megawatt can power about 750 homes).

The International Atomic Energy Agency (IAEA), the UN organization for nuclear co-operation, considers a nuclear reactor to be "small" if it generates under 300 megawatts.

Designs for small reactors ranging from just 3 megawatts to 300 megawatts have been submitted to Canada's nuclear regulator, the Canadian Nuclear Safety Commission, for review as part of a pre-licensing process, while plans for four SMRs at Darlington outline a potential build-out pathway that regulators will assess.

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Such reactors are considered "modular" because they're designed to work either independently or as modules in a bigger complex (as is already the case with traditional, larger reactors at most Canadian nuclear power plants). A power plant could be expanded incrementally by adding additional modules.

Modules are generally designed to be small enough to make in a factory and be transported easily — for example, via a standard shipping container.

In Canada, there are three main areas where SMRs could be used:

Traditional, on-grid power generation, especially in provinces looking for zero-emissions replacements for CO2-emitting coal plants.
Remote communities that currently rely on polluting diesel generation.
Resource extraction sites, such as mining and oil and gas.
 

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UK Energy Price Cap Cut 2024 signals relief as wholesale gas prices fall; Ofgem price cap drops per Cornwall Insight, aided by LNG supply, mild winter, despite Red Sea tensions and Ukraine conflict impacts.

Key Points

A forecast cut to Great Britain's Ofgem price cap as wholesale gas falls, easing typical annual household bills in 2024.

✅ Cap falls from £1,928 to £1,620 in April 2024

✅ Forecast £1,497 in July, then about £1,541 from October

✅ Drivers: lower wholesale gas, LNG supply, mild winter

Households in Great Britain are set to experience a significant reduction in energy costs this spring, with bills projected to drop by over £300 annually. This decrease is primarily due to a decline in wholesale gas prices, offering some respite to those grappling with the cost of living crisis.

Cornwall Insight, a well-regarded industry analyst, predicts a 16% reduction in average bills from the previous quarter, potentially reaching the lowest levels since the onset of the Ukraine conflict.

The industry’s price cap, indicative of the average annual bill for a typical household, is expected to decrease from the current £1,928, set earlier this month, to £1,620 in April – a reduction of £308 and £40 less than previously forecasted in December, as ministers consider ending the gas-electricity price link to improve market resilience.

Concerns about escalating tensions in the Red Sea, where Houthi rebels have disrupted global shipping, initially led analysts to fear an increase in wholesale oil prices and subsequent impact on household energy costs.

Contrary to these concerns, oil prices have remained relatively stable, and European gas reserves have been higher than anticipated during a mild winter, with European gas prices returning to pre-Ukraine war levels since November.

Cornwall Insight anticipates that energy prices will continue to be comparatively low through 2024. They predict a further decline to £1,497 for a typical annual bill from July, followed by a slight increase to £1,541 starting in October.

This forecast is a welcome development for Britons who have been dealing with increased expenses across various sectors, from food to utilities, amidst persistently high inflation rates, with energy-driven EU inflation hitting lower-income households hardest across member states.

Energy bills saw a steep rise in 2021, which escalated further due to the Ukraine conflict in 2022, driving up wholesale gas prices. This surge prompted government intervention to subsidize bills, with the UK price cap estimated to cost around £89bn to the public purse, capping costs to a typical household at £2,500.

Cornwall Insight noted that the supply of liquified natural gas to Europe had not been as adversely affected by the Red Sea disruptions as initially feared. Moreover, the UK has been well-supplied with gas from the US, which has become a more significant supplier since the Ukraine war, even as US electricity prices have risen to multi-decade highs. Contributing factors also include lower gas prices in Asia, mild weather, and robust gas availability.

Craig Lowrey, a principal consultant at Cornwall Insight, remarked that concerns about Red Sea events driving up energy prices have not materialized, allowing households to expect a reduction in prices.

On Monday, the next-month wholesale gas price dropped by 4% to 65p a therm.

However, Lowrey cautioned that a complete return to pre-crisis energy bill levels remains unlikely due to ongoing market impacts from shifting away from Russian energy sources and persistent geopolitical tensions, as well as policy changes such as Britain’s Energy Security Bill shaping market reforms.

Richard Neudegg, director of regulation at Uswitch, welcomed the potential further reduction of the price cap in April. However, he pointed out that this offers little solace to households currently struggling with high winter energy costs during the winter. Neudegg urged Ofgem, the energy regulator, to prompt suppliers to reintroduce more competitive and affordable fixed-price deals.

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Jordan-Saudi Electricity Linkage Project connects NEPCO and Saudi National Electricity Company to launch feasibility studies, advancing cross-border grid interconnection, Arab electricity linkage goals, and enhancing power reliability, stability, and energy security in both countries.

Key Points

A bilateral grid interconnection by NEPCO and Saudi Electricity Co. to improve reliability and stability.

✅ Enables joint technical and financial feasibility studies

✅ Improves cross-border grid reliability and stability

✅ Part of Arab electricity linkage; supports energy security

The Jordanian Cabinet on has approved the memorandum of understanding to implement the electricity linkage project between Jordan and Saudi Arabia, echoing regional steps such as Lebanon's electricity sector reform to modernize power governance.

The memo will be signed between the National Electric Power Company(NEPCO) and the Saudi National Electricity Company, mirroring cross-border efforts like CEA-Mexico electricity cooperation to strengthen regional interconnections.

The agreement will enable the two sides to initiate technical and financial feasibility studies for the project, which aims to enhance the stability and reliability of electricity networks in both countries, aligning with measures to secure power such as Ireland's electricity supply plan pursued internationally.

The initial feasibility studies, which came as part of the comprehensive Arab electricity linkage issued by the Arab League in 2014, had shown the possibility of implementing the Jordanian-Saudi linkage, as electricity markets evolve in places like Alberta electricity market changes toward new designs.

Regional developments, including a Lebanon electricity goodwill gesture that sowed discord, underscore the complexities of power-sector reform.

Also on Wednesday, the Government approved the third amendment to the grant agreement provided by the EU for a programme of financial inclusion through improving the governance and the spread of micro-financing in Jordan.

Jordan and the EU signed the grant agreement on December 14, 2014 to support the general budget.

The Cabinet also approved the recommendations of the ministerial team tasked with overseeing the annual and financial plans of public credit funds in the Kingdom.

The recommendations included establishing a guidance office to introduce the governmental lending programmes and windows within Iradah centres affiliated with the Planning and International Cooperation Ministry.

The Council of Ministers decided to oblige the government institutions to execute all of their correspondences to the Jordan Customs Department (JCD) electronically.

The decision also includes cancelling the provision of 55 JCD services by conventional paper works and to be provided only online.

The council also approved the outcomes of the study to restructure the governmental body.

The outcomes proposed activating the Higher Health Council, cancelling the independence of the Vocational and Technical Employment Training Fund transferring its functions to the Employment and Development Fund, and activating the National ICT Centre.

The government has cancelled the National Fund to Support Sports and the Scientific Support Fund.

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Mercury Energy Tilt Renewables acquisition signals a trans-Tasman energy push as PowAR and Mercury split assets via a scheme of arrangement, offering $7.80 per share and a $2.96b valuation across Australia and New Zealand.

Key Points

A PowAR-Mercury deal to buy Tilt Renewables, splitting Australian and New Zealand assets via a court-approved scheme.

✅ $7.80 per share, valuing Tilt at $2.96b

✅ PowAR takes AU assets; Mercury gets NZ business

✅ Infratil and Mercury to vote for the scheme

Mercury Energy and an Australian partner appear to have won the race to buy Tilt Renewables, an Australasian wind farm developer which was spun out of TrustPower, bidding almost $3 billion, amid wider utility consolidation such as the Peterborough Distribution sale to Hydro One.

Yesterday Tilt Renewables announced that it had entered a scheme implementation agreement under which it was proposed that PowAR would acquire its Australian business and Mercury would acquire the New Zealand business, mirroring cross-border approvals where U.S. antitrust clearance shaped Hydro One's bid for Avista.

Conducted through a scheme of arrangement, Tilt shareholders will be offered $7.80 a share, valuing Tilt at $2.96b.

Yesterday morning shares in Tilt opened about 18 per cent up at $7.65, though regulatory outcomes can swing valuations as seen when Hydro One-Avista reconsideration of a U.S. order came into play.

In early December Infratil, which owns around two thirds of Tilt's shares, announced it was undertaking a review of its investment after receiving approaches, with investor sentiment sensitive to governance shifts as when Hydro One shares fell after leadership changes in Ontario.

According to a report in the Australian Financial Review, the transtasman bid beat out other parties including ASX-listed APA Group, Canadian pension fund CDPQ and Australian fund manager Infrastructure Capital Group, as Canadian investors like Ontario Teachers' Plan pursue similar infrastructure deals.

“This compelling acquisition proposal is a result of Tilt Renewables’ constant focus on delivering long-term value for shareholders and the board is pleased that, with these new owners, the transition to renewables in Australia and New Zealand will continue to accelerate,” Tilt’s chairman Bruce Harker said.

Comparable community-led clean energy partnerships, such as initiatives with British Columbia First Nations highlighted in clean-energy generation, underscore the broader momentum.

Just prior to the announcement, Tilt shares had been trading for less than $4. Such repricing reflects how utilities can face perceived uncertainties, as one investor argued too many unknowns at the time.

Mercury is already Tilt’s second largest shareholder, at just under 20 per cent. Both Infratil and Mercury have agreed to vote in favour of the scheme. The deal values Tilt’s New Zealand business at $770m, however the value of Mercury’s existing shareholding is around $585m, meaning the company will increase debt by around $185m.

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Hinkley Point C dome lift marks a nuclear reactor milestone in Somerset, as EDF used Big Carl crane to place a 245-tonne steel roof, enabling 2027 startup amid costs, delays, and precision indoor welding.

Key Points

A 245-tonne dome lifted onto Hinkley Point C's first reactor, finishing the roof and enabling fit-out for a 2027 startup.

✅ 245-tonne steel dome lifted by Big Carl onto 44m-high reactor

✅ Indoor welding avoided weather defects seen at Flamanville

✅ Cost now £33bn; first power targeted by end of 2027

Engineers have lifted a steel roof onto a building which will house the first of two nuclear reactors at Hinkley Point in Somerset.

Hundreds of people helped with the delicate operation to get the 245-tonne steel dome into position.

It means the first reactor can be installed next year, ready to be switched on in June 2027.

Engineers at EDF said the "challenging job" was completed in just over an hour.

They first broke the ground on the new nuclear station in March 2017. Now, some 10,000 people work on what is Europe's largest building site.

Yet many analysts note that Europe is losing nuclear power even as demand for reliable energy grows.

They have faced delays from Covid restrictions and other recent setbacks, and the budget has doubled to £33bn, so getting the roof on the first of the two reactor buildings is a big deal.

EDF's nuclear island director Simon Parsons said it was a "fantastic night".

"Lifting the dome into place is a celebration of all the work done by a fantastic team. The smiles on people's faces this morning were something else.

"Now we can get on with the fitting of equipment, pipes and cables, including the first reactor which is on site and ready to be installed next year."

Nuclear minister Andrew Bowie hailed the "major milestone" in the building project, citing its role in the UK's green industrial revolution ambitions.

He said: "This is a key part of the UK Government's plans to revitalise nuclear."

But many still question whether Hinkley Point C will be worth all the money, especially after Hitachi's project freeze in Britain, with Roy Pumfrey of the Stop Hinkley campaign describing the project as "shockingly bad value".

Why lift the roof on?

The steel dome is bigger than the one on St Paul's Cathedral in London.

To lift it onto the 44-metre-high reactor building, they needed the world's largest land-based crane, dubbed Big Carl by engineers.

So why not just build the roof on top of the building?

The answer lies in a remote corner of Normandy in France, near a village called Flamanville.

EDF has been building a nuclear reactor there since 2007, ten years before they started in west Somerset.

The project is now a decade behind schedule and has still not been approved by French regulators.

Why? Because of cracks found in the precision welding on the roof of the reactor building.

In nuclear-powered France, they built the roof in situ, out in the open. 

Engineers have decided welding outside, exposed to wind and rain, compromised the high standards needed for a nuclear reactor.

So in Somerset they built a temporary workshop, which looks like a fair sized building itself. All the welding has been done inside, and then the completed roof was lifted into place.

Is it on time or on budget?

No, neither. When Hinkley C was first approved a decade ago, EDF said it would cost £14bn.

Four years later, in 2017, they finally started construction. By now the cost had risen to £19.5bn, and EDF said the plant would be finished by the end of 2025.

Today, the cost has risen to £33bn, and it is now hoped Hinkley C will produce electricity by the end of 2027.

"Nobody believes it will be done by 2027," said campaigner Roy Pumfrey.

"The costs keep rising, and the price of Hinkley's electricity will only get dearer," they added.

On the other hand, the increase in costs is not a problem for British energy bill payers, or the UK government.

EDF agreed to pay the full cost of construction, including any increases.

When I met Grant Shapps, then the UK Energy Secretary, at the site in April, he shrugged off the cost increases.

He said: "I think we should all be rather pleased it is not the British tax payer - it is France and EDF who are paying."

In return, the UK government agreed a set rate for Hinkley's power, called the Strike Price, back in 2013. The idea was this would guarantee the income from Hinkley Point for 35 years, allowing investors to get their money back.

Will it be worth the money?

Back in 2013, the Strike Price was set at £92.50 for each megawatt hour of power. At the time, the wholesale price of electricity was around £50/MWh, so Hinkley C looked expensive.

But since then, global shocks like the war in Ukraine have increased the cost of power substantially, and advocates argue next-gen nuclear could deliver smaller, cheaper, safer designs.

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