Power potpourri helps Puget Energy profit

By McClatchy Tribune News


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Puget Energy's push to increase its wind, coal and natural-gas generation paid off last quarter with a slightly higher profit even as a shortfall in regional hydropower crimped earnings at most utilities.

The winter's unusually cold weather caused a spike in demand among consumers, but it also resulted in an unyielding snowpack. As a result, the Bellevue company's hydro plants generated 37 percent less power than last year due to smaller runoffs.

Spokane-based Avista also reported lower-than-expected hydroelectric generation.

But Puget Energy's other sources, which included a recently acquired natural-gas-fired plant in Goldendale, Klickitat County, produced 21.7 percent more electricity than last year. The increase allowed the company to buy 7 percent less power in the more expensive open market, shoring up profits.

Puget Energy's net income grew 0.9 percent to $79.8 million, the company said in a recent filing. Electricity margins jumped 12.9 percent million to $222 million, in part due to higher sales. Net earnings per share, however, fell 10.3 percent to 61 cents, because an increase in the number of outstanding shares diluted profits.

The expensive campaign to increase its own power-generating capacity helped lead Puget Energy, which runs Washington's largest utility, to sell itself to a group of Australian and Canadian investors for $7.4 billion. The company expects state and federal agencies to approve the deal in the fourth quarter.

Puget has requested permission from the Washington Utilities and Transportation Commission to raise rates of 12 percent for electric-residential customers and 6 percent for residential gas users in November to compensate for capital investments and higher operating costs.

A $293 million equity infusion by the acquiring group, led by Australian investment bank Macquarie, in December increased the number of shares by nearly 11 percent. The quarterly results were "in line" with Wall Street expectations, said McAdams Wright Ragen analyst Paul Latta. He added that Puget Energy usually sees its strongest results in the first and fourth quarters.

Regulated utilities' income is influenced by rates controlled by state authorities, but also by factors such as prices for coal and gas, operating efficiency, and weather. Natural gas margins rose 11.3 percent to $123 million, as the utility spent less on gas purchases. The company, a regulated monopoly that provides natural gas and electricity to the Eastside and natural gas to Seattle, reported a 1.7 percent increase in electric customers and 2.4 percent increase in gas customers. Puget Energy is saving money by generating more of its own electricity and by paying less for natural gas, which it stockpiled last summer, when it was cheaper.

But it is paying more for maintenance, and fuel costs have nearly doubled. The utility also had higher depreciation costs than last year. A settlement with the operators of a coal-based power plant in Montana cost the company some $6.9 million after taxes. In total, operating expenses rose to 5.6 percent to $893 million.

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Avista Commissions Largest Solar Array in Washington

Adams Nielson Solar Array, a 28 MW DC utility-scale project in Lind, WA, spans 200 acres with 81,700 panels, powering about 4,000 homes, supporting Avista’s Solar Select program and renewable energy, sustainability, and carbon reduction.

 

Key Points

Adams Nielson Solar Array is a 28 MW DC facility in Lind, WA, powering ~4,000 homes via Avista’s Solar Select.

✅ 81,700 panels across 200 acres in Eastern Washington

✅ Offsets emissions equal to removing 7,300 cars annually

✅ Collaboration by Avista, Strata Solar, WUTC, WSU Energy

 

Official commissioning of the Adams Nielson solar array located in Lind, WA occurred today. The 28 Megawatt DC array is comprised of 81,700 panels that span 200 acres and generates enough electricity to supply the equivalent of approximately 4,000 homes annually, similar to a new co-op solar project serving South Metro members.

“Avista’s interest in the development of Solar Select, a voluntary commercial solar program reflecting broader corporate adoption such as a corporate solar power plant commissioned by Arvato, is consistent with the Company’s ongoing commitment to provide customers with renewable energy choices at reasonable cost,” said Dennis Vermillion, president, Avista Corporation. “In recent years, an increasing number of Avista customers have expressed their expectations and challenges in acquiring renewable energy. Avista is pleased to lead this effort and develop renewable energy products that meet our customers’ needs today and into the future.” This interest is being generated by a mix of local and national customers across a variety of industries, including Huckleberry’s, Gonzaga University, Community Colleges of Spokane, Hotstart, Central Pre-Mix Concrete, a CRH Co., independently owned McDonald's franchise locations, Spokane City, Main Market and Community Building and VA Medical Center.

Jim Simon, director of sustainability at Gonzaga University said, “The Solar Select program helps Gonzaga University move even closer to achieving its goal of climate neutrality by 2050 by continuing to prioritize renewables in our energy portfolio, as other communities add projects like a municipal solar project to boost local supply. We are grateful for Avista’s leadership in this project and look forward to other opportunities to reduce our greenhouse gas emissions.”

Spokane Mayor David Condon said, “The City of Spokane is pleased to partner with Avista through the Solar Select Program, as we continue to seek out opportunities that are both environmentally and financially responsible. The City already is a net producer of energy, generating more clean, green energy than our use of electricity, natural gas, and fuel, a milestone also seen with North Carolina's first wind farm now fully operational. We are excited to add even more clean energy to power City Hall.”

The Solar Select program created a cost-effective structure to bring solar energy to large business customers in Eastern Washington, allowing them to advance their desired sustainability goals and benefiting from industry service innovations led by companies like Omnidian expanding their global reach. The array is projected to deliver the environmental benefit equivalent of more than 7,300 cars removed from the road each year. This renewable energy program was made possible through a collaboration of Avista, Strata Solar, the Washington Utilities and Transportation Commission, and the WSU Energy Program. 

 

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Construction of expanded Hoa Binh Hydropower Plant to start October 2020

Expanded Hoa Binh Hydropower Plant increases EVN capacity with 480MW turbines, commercial loan financing, grid stability, flood control, and Da River reliability, supported by PECC1 feasibility work and CMSC collaboration on site clearance.

 

Key Points

A 480MW EVN expansion on the Da River to enhance grid stability, flood control, and seasonal water supply in Vietnam.

✅ 480MW, two turbines, EVN-led financing without guarantees

✅ Improves frequency modulation and national grid stability

✅ Supports flood control and dry-season water supply

 

The extended Hoa Binh Hydropower Plant, which is expected to break ground in October 2020, is considered the largest power project to be constructed this year, even as Vietnam advances a mega wind project planned for 2025.

Covering an area of 99.2 hectares, the project is invested by Electricity of Vietnam (EVN). Besides, Vietnam Electricity Power Projects Management Board No.1 (EVNPMB1) is the representative of the investor and Power Engineering Consulting JSC 1 (EVNPECC1) is in charge of building the feasibility report for the project. The expanded Hoa Binh Hydro Power Plant has a total investment of VND9.22 trillion ($400.87 million), 30 per cent of which is EVN’s equity and the remaining 70 per cent comes from commercial loans without a government guarantee.

According to the initial plan, EVN will begin the construction of the project in the second quarter of this year and is expected to take the first unit into operation in the third quarter of 2023, a timeline reminiscent of Barakah Unit 1 reaching full power, and the second one in the fourth quarter of the same year.

Chairman of the Committee for Management of State Capital at Enterprises (CMSC) Nguyen Hoang Anh said that in order to start the construction in time, CMSC will co-operate with EVN to work with partners as well as local and foreign banks to mobilise capital, reflecting broader nuclear project milestones across the energy sector.

In addition, EVN will co-operate with Hoa Binh People’s Committee to implement site clearance, remove Ba Cap port and select contractors.

Once completed, the project will contribute to preventing floods in the rainy season and supply water in the dry season. The plant expansion will include two turbines with the total capacity of 480MW, similar in scale to the 525-MW hydropower station China is building on a Yangtze tributary, and electricity output of about 488.3 million kWh per year.

In addition, it will help improve frequency modulation capability and stabilise the frequency of the national electricity system through approaches like pumped storage capacity, and reduce the working intensity of available turbines of the plant, thus prolonging the life of the equipment and saving maintenance and repair costs.

Built in the Da River basin in the northern mountainous province of Hoa Binh, at the time of its conception in 1979, Hoa Binh was the largest hydropower plant in Southeast Asia, while projects such as China’s Lawa hydropower station now dwarf earlier benchmarks.

The construction was supported by the Soviet Union all the way through, designing, supplying equipment, supervising, and helping it go on stream. Construction began in November 1979 and was completed 15 years later in December 1994, when it was officially commissioned, similar to two new BC generating stations recently brought online.

 

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CT leads New England charge to overhaul electricity market structure

New England Grid Reform Initiative aligns governors with ISO New England to reshape market design, boost grid reliability, accelerate renewable energy and offshore wind, explore carbon pricing and forward clean energy markets, and bolster accountability.

 

Key Points

Five states aim to reform ISO New England markets, prioritize renewables and reliability, and test carbon pricing.

✅ Governors seek market design aligned with clean energy mandates

✅ ISO-NE accountability and stakeholder engagement prioritized

✅ Explore carbon pricing and forward clean energy market options

 

Weeks after initiating a broad overhaul of utility regulation within its borders, Connecticut has recruited four New England states, as Maine debates a 145-mile transmission line project to rework the regional grid that is overseen by ISO New England, the independent system operator charged with ensuring a reliable supply of electricity from power plants.

In a written statement Thursday morning, Gov. Ned Lamont said the current structure “has actively hindered” states’ efforts to phase out polluting power plants in favor of renewable sources like wind turbines and solar panels, while increasing costs “to fix market design failures” in his words. Lamont’s energy policy chief Katie Dykes has emerged as a vocal critic of ISO New England’s structure and priorities, in her role as commissioner of the Connecticut Department of Energy and Environmental Protection.

“When Connecticut opted to deregulate our electricity market, we wanted the benefits of competition — to achieve lower-cost energy, compatible with meeting our clean-energy goals,” Dykes said in a telephone interview Thursday afternoon. “We have a partner [in] ISO New England, to manage this grid and design a market that is not thwarting our clean-energy goals, but achieving them; and not ignoring consumers’ concerns. ... That’s really what we are looking to do — reclaim the benefits of competition and regional cooperation.”

Lamont and his counterparts in Massachusetts, Rhode Island, Vermont and Maine plan to release a “vision document” in their words on Friday through the New England States Committee on Electricity, after New Hampshire rejected a Quebec-Massachusetts transmission proposal that sought to import Canadian hydropower.

The initial documents made no mention of New Hampshire, which likewise obtains electricity through the wholesale markets managed by ISO New England and has seen clashes over the Northern Pass hydropower project in recent years; and whose Seabrook Station is one two nuclear power plants in New England alongside Dominion Energy’s Millstone Power Station in Waterford. Gov. Chris Sununu’s office did not respond immediately to a query on why New Hampshire is not participating.

Connecticut and the four other states outlined a few broad goals that they will hone over the coming months. Those include creating a better market structure and planning process supporting the conversion to renewables; improving grid reliability, with measures such as an emergency fuel stock program considered; and increasing the accountability of ISO New England to the states and by extension their ratepayer households and businesses.

ISO New England spokesperson Matt Kakley indicated the Holyoke, Mass.-based nonprofit will “engage with the states and our stakeholders” on the governors’ proposal, in an email response to a query. He did not elaborate on any immediate opportunities or challenges inherent in the governors’ proposal.

“Maintaining reliable, competitively-priced electricity through the clean energy transition will require broad collaboration,” Kakley stated. “The common vision of the New England governors will play an important role in the discussions currently underway on the future of the grid.”

 

Renewable revolution
ISO New England launched operations in 1999, running auctions through which power plant operators bid to supply electricity, including against long-term projections for future needs that can only be met through the construction or installation of new generation capacity.

ISO New England falls under the jurisdiction of the Federal Energy Regulatory Commission rather than the states whose electricity supplies it is tasked with ensuring. That has led to pointed criticism from Dykes and Connecticut legislators that ISO New England is out of touch with the state’s push to switch to renewable sources of electricity.

Entering October, ISO New England published an updated outlook that revealed 60 percent of proposed power generators in the region’s future “queue” are wind farms, primarily offshore installations like the proposed Park City Wind project of Avangrid and Revolution Wind from Eversource. But Dykes recently criticized as unnecessary an NTE Energy plant approved already by ISO New England for eastern Connecticut, which will be fueled by natural gas if all other regulatory approvals are granted.

The six New England states participate in the Regional Greenhouse Gas Initiative that caps carbon emissions by individual power plants, while allowing them to purchase unused allowances from each other with that revenue funneled to the states to support renewable energy and conservation programs. FERC is now considering the concept of carbon pricing, which would levy a tax on power plants based on their emissions, and it also faces pressure to act on aggregated DERs from lawmakers.

ISO New England is investigating the concepts of net carbon pricing and a “forward clean energy market” that would borrow elements of the existing forward capacity market, but designed to meet individual state objectives for the percentage of renewable power they want generated while ensuring adequate electricity is in place when weather does not cooperate.

The Connecticut Public Utilities Regulatory Authority is collecting on its own initiative industry input on modernization proposals, as New York regulators open a formal review of retail energy markets for comparison, that would add up to hundreds of millions of dollars, including utility-scale batteries to store power generated by offshore wind farms and solar arrays; and “smart” meters in homes and businesses to help electricity customers better manage their power use.

The New England Power Pool serves as a central forum for plant operators, commercial users and others like the Connecticut Office of Consumer Counsel, amid Massachusetts solar demand charge debates that affect distributed generation policy, with NEPOOL’s chair stating Thursday morning the group was still reviewing the governors’ announcement.

“NEPOOL has been engaged this year in meetings ... exploring the transition to a future grid in New England and potential pathways forward to support that transition,” stated Nancy Chafetz, chair of NEPOOL, in an email.

Connecticut’s issues with ISO New England boiled over this summer on the heels of a power-purchase agreement between Millstone owner Dominion and transmission grid operators Eversource and United Illuminating, which contributed to a sharp increase in customer bills.

A few weeks ago, Lamont signed into law a “Take Back the Grid” act that allows the Connecticut Public Utilities Regulatory Authority to factor in Eversource’s and Avangrid subsidiary United Illuminating’s past performance in maintaining electric reliability, in addition to any future needs for revenue based on needed upgrades. The law included an element for Connecticut to initiate a study of ISO New England’s role.

Eversource and Avangrid have voiced support for the switch to “performance-based” regulation in Connecticut. Eversource spokesperson Mitch Gross on Thursday cited the company’s view that any changes to the operation of New England’s wholesale power markets should occur within the existing ISO New England structure.

“We also recommend any examination of potential alternatives includes a thorough evaluation that ensures unfair costs would not be imposed on customers,” Gross stated in an email.

In a statement forwarded by Avangrid spokesperson Ed Crowder, the United Illuminating parent indicated it intends to have “a voice in this process” with the goal of continued grid reliability amid increased adoption of clean energy sources.

 

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Imported coal volumes up 17% during Apr-Oct as domestic supplies shrink

India Thermal Power Coal Imports surged 17.6% as CEA-monitored plants offset weaker CIL and SCCL supplies, driven by Saubhagya-led electricity demand, regional power deficits, and varied consumption across Uttar Pradesh, Bihar, Maharashtra, and Gujarat.

 

Key Points

Fuel volumes imported for Indian thermal plants, tracked by CEA, reflecting shifts in CIL/SCCL supply, demand, and regional power deficits.

✅ Imports up 17.6% as domestic CIL/SCCL deliveries lag targets

✅ Saubhagya-driven demand lifts generation in key beneficiary states

✅ Industrial slowdowns cut usage in Maharashtra, Tamil Nadu, Gujarat

 

The receipt of imported coal by thermal power plants, where plant load factors have risen, has shot up by 17.6 per cent during April-October. The coal import volumes refer to the power plants monitored by the Central Electricity Authority (CEA), and come amid moves to ration coal supplies as electricity demand surges, a power update report from CARE Ratings showed.

Imports escalated as domestic supplies by Coal India Ltd (CIL) and another state run producer- Singareni Collieries Company Ltd (SCCL) dipped in the period, after earlier shortages that have since eased in later months. Rate of supplies by the two coal companies to the CEA monitored power stations stood at 80.4 per cent, indicating a shortfall of 19.6 per cent against the allocated quantity.

According to the study by CARE Ratings, total coal supplied by CIL and SCCL to the power sector stood at 315.9 million tonnes (mt) during April-October as against 328.5 mt in the comparable period of last fiscal year.

The study noted that growth in power generation during the April-October 2019, with India now the third-largest electricity producer globally, was on account of higher demand from Pradhan Mantri Sahaj Bijli Har Ghar Yojana or Saubhagya Scheme beneficiary states. Providing connection to households in order to achieve 100% per cent electrification has in part helped the sector avert de-growth, as part of efforts to rewire Indian electricity and expand access.

Large states namely Uttar Pradesh, Bihar, Punjab, West Bengal and Rajasthan have recorded over five per cent growth in consumption of power. These states along with Odisha, Madhya Pradesh and Assam accounted for 75 per cent of the beneficiaries under the Saubhagya Scheme (Household Electrification Scheme). The ongoing economic downturn has led to a sharp fall in electricity demand from industrialised states. Maharashtra, which is also the largest power consuming state in India, recorded a decline in consumption of 5.6 per cent.

Other states namely Tamil Nadu, Telangana, Gujarat and Odisha too recorded fall in power consumed, echoing global dips in daily electricity demand seen later during the pandemic. These states house large clusters of mining, automobile, cement and other manufacturing industries, and a decline in these sectors led to fall in demand for power across these states. - The demand-supply gap or power deficit has remained at 0.6 per cent during the April-October 2019. North-East reported 4.8 per cent of power deficit followed by Northern Region at 1.3 per cent. Within Northern Region, Jammu & Kashmir and Uttar Pradesh accounted for 65 per cent and 30 per cent respectively of the regions power supply deficit.

 

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US Automakers Will Build 30,000 Electric Vehicle Chargers

Automaker EV Fast-Charging Network will deploy 30,000 DC fast chargers across US and Canada, supporting CCS and NACS, integrating Tesla compatibility, easing range anxiety, and expanding highway and urban charging infrastructure with amenities and uptime.

 

Key Points

A $1B joint venture by seven automakers to build 30,000 DC fast chargers with CCS and NACS across the US and Canada.

✅ 30,000 DC fast chargers by 2030 across US and Canada

✅ Supports CCS and NACS; Tesla compatibility planned

✅ Launching mid-2024; focus on highways, urban hubs, amenities

 

Seven major automakers announced a plan on Wednesday to nearly double the number of fast chargers in the United States in an effort to address one of the main reasons that people hesitate to buy electric cars, even as the age of electric cars accelerates.

The carmakers — BMW Group, General Motors, Honda, Hyundai, Kia, Mercedes-Benz Group and Stellantis — will initially invest at least $1 billion in a joint venture that will build 30,000 charging ports on major highways and other locations in the United States and Canada.

The United States and Canada have about 36,000 fast chargers — those that can replenish a drained battery in 30 minutes or less. In some sparsely populated areas, such chargers can be hundreds of miles apart. Surveys show that fear about not being able to find a charger during longer journeys is a major reason that some car buyers are reluctant to buy electric vehicles.

Sales of electric vehicles have risen quickly in the United States as the market hits an inflection point, but there are signs that demand is softening. As a result, Tesla, Ford and other carmakers have cut prices in recent months and are offering incentives. Popular models that had long waiting lists last year are now available in a few days or weeks.

Major carmakers are investing billions of dollars to manufacture electric vehicles and batteries and to establish supplier networks. Having staked their futures on the technology, they have a strong incentive to ensure that electric vehicles catch on with car buyers, even as gas-electric hybrids help bridge the transition.

The chargers installed by the joint venture will have plugs designed for the connections used by most carmakers other than Tesla, as well as the standard developed by Tesla, amid fights for control over charging, that Ford, G.M. and other companies have said they intend to switch to in 2025.

“The better experience people have, the faster E.V. adoption will grow,” Mary T. Barra, the chief executive of General Motors, said in a statement.

The seven automakers plan to formalize the joint venture and announce its name by the end of the year, Chris Martin, a Honda spokesman, said. The first chargers will begin operating around the middle of 2024, he said, with all 30,000 in place by the end of the decade.

The joint venture is open to adding other partners, he said. Among major automakers, Ford was a notable absence from the announcement on Wednesday. The company said in a statement on Wednesday that it would continue to iThe partnership also does not include Volkswagen. The company is a majority shareholder of Electrify America, one of the largest fast-charging providers.

Tesla accounts for more than half the fast chargers in the United States and has said it will open its networks to other car brands, though, so far, it has only made fewer than 100 ports available. Owners of Ford and G.M. vehicles, among others, will be able to connect to 12,000 Tesla fast chargers using an adapter beginning next year. In 2025, Ford and G.M. plan to make models designed to take the Tesla plug without an adapter.

The decision by the seven carmakers to form the joint venture is an indication that they do not intend to rely solely on Tesla, which dominates sales of electric vehicles, for charging.

The chargers being built by the joint venture will be concentrated in urban areas and along major highways, especially those used most heavily by vacationers and other travelers, the companies said in a joint statement. Charging stations will be close to restrooms, restaurants and other amenities. The partners said they would try to take advantage of federal and state funds available for charging infrastructure amid questions about whether the U.S. has the power to charge it at scale.

Most electric vehicle owners charge at home and rarely need to use public chargers. Home chargers typically replenish batteries overnight. Most public chargers, about 125,000 in the United States and Canada, also operate relatively slowly — taking four to 10 hours to do the job.nvest in its own network, which allows Ford owners to charge from a variety of providers with one mobile phone app.

 

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Canada will need more electricity to hit net-zero: IEA report

Canada Clean Electricity Expansion is urged by the IEA to meet net-zero targets, scaling non-emitting generation, electrification, EV demand, and grid integration across provinces to decarbonize industry, buildings, and transport while ensuring reliability and affordability.

 

Key Points

An IEA-backed pathway for Canada to scale non-emitting power, electrification, and grid links to meet net-zero goals.

✅ Double or triple clean generation to replace fossil fuels

✅ Integrate provincial grids to decarbonize dependent regions

✅ Manage EV and heating loads with reliability and affordability

 

Canada will need more electricity capacity if it wants to hit its climate targets, and cleaning up Canada's electricity will be critical, according to a new report from the International Energy Agency (IEA).

The report offers mainly a rosy picture of Canada's overall federal energy policy. But, the IEA draws attention to Canada's increasing future electricity demands, and ultimately, calls on Canada to leverage its non-emitting energy potential and expand renewable energy to hit its climate targets.  

"Canada's wealth of clean electricity and its innovative spirit can help drive a secure and affordable transformation of its energy system and help realize its ambitious goals," stated Fatih Birol, the IEA executive director, in a news release.

The IEA notes that Canada has one of the cleanest energy grids globally, with 83 per cent of electricity coming from non-emitting sources in 2020. But this reflects nationwide progress in electricity to date; the report warns this is not a reason for Canada to rest on its laurels. More electricity will be needed to displace fossil fuels if Canada wants to hit its 2030 targets, the report states, and "even deeper cuts" will be required to reach net-zero by 2050.

"Perhaps more significantly, however, Canada will need to ensure sufficient new clean generation capacity to meet the sizeable levels of electrification that its net-zero targets imply."

Investing in new coal, oil and gas projects must stop to hit climate goals, global energy agency says
The Liberals have promised to create a 100 percent net-zero-emitting electricity system by 2035, with regulating oil and gas emissions and electric car sales as part of the plan; by then, every new light-duty vehicle sold in Canada will be a zero-emission vehicle. The switch from gas guzzlers to plug-in electric vehicles will create new pressures on Canada's electrical grid, as will any turn away from fossil natural gas for home heating.

To meet these challenges, the IEA warns, Canada would need to double or triple the power generated from non-emitting sources compared to today, a shift whose cost could reach $1.4 trillion according to the Canadian Gas Association. 

"Such a shift will require significant regulatory action," the report states, highlighting the need for climate policy for electricity grids to guide implementation, and that will require the federal government to work closely with provinces and territories that control power generation and distribution.

The report notes that the further integration of territorial and provincial electrical grids could allow fossil fuel-dependent provinces, like Alberta, to decarbonize and electrify their economies.

The report, entitled Canada 2022 Energy Policy Review, offers what it calls an "in-depth" look at the commitments Canada has made to transform its energy policy. Since the IEA conducted its last review in 2015, Canada has committed to cutting greenhouse gas emissions by 40 to 45 per cent from 2005 levels by 2030 and achieving net-zero by 2050 under an extended national target.

The IEA is well-known for the production of its annual World Energy Outlook. The Paris-based autonomous intergovernmental organization provides analysis, data, and policy recommendations to promote global energy security and sustainability. Canada is a part of the intergovernmental body, which also conducts peer reviews of its members' energy policy.


Oil and gas emissions rising
Natural Resources Minister Jonathan Wilkinson responded to the report in the IEA news release.

"This report acknowledges Canada's ambitious efforts and historic investments to develop pathways to achieve net-zero emissions by 2050 and ensure a transition that aligns with our shared objective of limiting global warming to 1.5 degrees Celsius," Wilkinson's statement read.

The report notes that — despite that objective — absolute emissions from Canadian oil and gas extraction went up 26 per cent between 2000 and 2019, largely from increased production.

Minister of Natural Resources Jonathan Wilkinson responds to a question at a news conference after the federal cabinet was sworn in, in Ottawa, on Oct. 26, 2021. (Justin Tang/The Canadian Press)
"Canada will need to reconcile future growth in oil sands production with increasingly strict greenhouse gas requirements," the report states.

On the plus side, the IEA found emissions per barrel of oilsands crude have decreased by 20 per cent in the last decade from technical and operational improvements.

The improving carbon efficiency of the oilsands is a "trend that is expected to continue at even higher rates," said Ben Brunnen, vice-president of oilsands, fiscal and economic policy at the Canadian Association of Petroleum Producers.

That may become important, the IEA report notes, as energy investors and buyers look for low-carbon assets and more countries adopt net-zero policies.

Further innovation, such as carbon capture and storage, could help to turn things around for Canada's oil patch, the report says. The Liberals have also said they will place a hard cap on oil and gas emissions from production, but that does not include the burning of the fossil fuels. 

In 2021, the IEA released a report that determined to achieve net-zero by 2050, among many steps, investments needed to end in coal mines, oil and gas wells. Thursday's report, however, made no mention of that, which disappointed at least one environmental group.

"A glaring omission was that this assessment says nothing about production. We know that the most important thing we can do is to stop using and producing oil and gas," said Julia Levin, a senior climate and energy program manager at Environmental Defence.

"And yet that was absent from this report, and that really is a glaring omission, which is completely out of line with their [the IEA's] own work."

 

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