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UK Clean Energy Supply Chain Delays are slowing decarbonization as transformer lead times, grid infrastructure bottlenecks, and battery storage contractors raise costs and risk 2030 targets despite manufacturing expansions by Siemens Energy and GE Vernova.

Key Points

Labor and equipment bottlenecks delay transformers and grid upgrades, risking the UK's 2030 clean power target.

✅ Transformer lead times doubled or tripled, raising project costs

✅ Grid infrastructure and battery storage contractors in short supply

✅ Firms expand capacity cautiously amid uncertain demand signals

The United Kingdom's ambitious plans to transition to clean energy are encountering significant obstacles due to prolonged delays in obtaining essential equipment such as transformers and other electrical components. These supply chain challenges are impeding the nation's progress toward decarbonizing its power sector by 2030, even as wind leads the power mix in key periods.

Supply Chain Challenges

The global surge in demand for renewable energy infrastructure, including large-scale storage solutions, has led to extended lead times for critical components. For example, Statera Energy's storage plant in Thurrock experienced a 16-month delay for transformers from Siemens Energy. Such delays threaten the UK's goal to decarbonize power supplies by 2030.

Economic Implications

These supply chain constraints have doubled or tripled lead times over the past decade, resulting in increased costs and straining the energy transition as wind became the main source of UK electricity in a recent milestone. Despite efforts to expand manufacturing capacity by companies like GE Vernova, Hitachi Energy, and Siemens Energy, the sector remains cautious about overinvesting without predictable demand, and setbacks at Hinkley Point C have reinforced concerns about delivery risks.

Workforce and Manufacturing Capacity

Additionally, there is a limited number of companies capable of constructing and maintaining battery sites, adding to the challenges. These issues underscore the necessity for new factories and a trained workforce to support the electrification plans and meet the 2030 targets.

Government Initiatives

In response to these challenges, the UK government is exploring various strategies to bolster domestic manufacturing capabilities and streamline supply chains while supporting grid reform efforts underway to improve system resilience. Investments in infrastructure and workforce development are being considered to mitigate the impact of global supply chain disruptions and advance the UK's green industrial revolution for next-generation reactors.

The UK's energy transition is at a critical juncture, with supply chain delays posing substantial risks to achieving decarbonization goals, including the planned end of coal power after 142 years for the UK. Addressing these challenges will require coordinated efforts between the government, industry stakeholders, and international partners to ensure a sustainable and timely shift to clean energy.

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NT Power OEB Compliance Penalty highlights a $75,000 fine for improper disconnection notices, 14-day rule violations, process oversight failures, refunds, LEAP support, and corrective training to strengthen consumer protection and regulatory adherence in Ontario areas.

Key Points

A $75,000 OEB fine to NT Power for improper disconnection notices; refunds, LEAP support, and improved compliance.

✅ $75k administrative monetary penalty; $25k LEAP donation; refunds

✅ 870 notices misdated; 14-day rule training implemented

✅ 10 disconnects reconnected; $100 goodwill credits

The Ontario Energy Board recently ruled against Newmarket-Tay Power Distribution Ltd. (NT Power), fining them $75,000 for failing to issue timely disconnection notices to 870 customers between April and August 2022. These notices did not comply with the Ontario Energy Board's distribution system code, similar to standards reaffirmed in the OEB decision on Hydro One rates earlier this year, which mandates a minimum 14-day notice period before disconnection.

Out of the affected customers, ten had their electricity services disconnected, and six were additionally charged reconnection fees. However, NT Power has since reconnected all disconnected customers and refunded the reconnection fees, as confirmed by the Ontario Energy Board.

In response to these issues, NT Power has voluntarily accepted an assurance of compliance. This agreement stipulates that NT Power will pay a $75,000 administrative monetary penalty. Furthermore, they will make an additional payment of $25,000 to the Salvation Army's Northridge Community Church, which administers the Low-income Energy Assistance Program (LEAP) within NT Power's service area, aligning with broader efforts to reduce costs for industry highlighted by Canadian Manufacturers & Exporters recently, according to the association.

This is not the first time NT Power has faced compliance issues in this regard. The utility company admitted that this incident marks the second instance in three years where they failed to adhere to their disconnection-related obligations as outlined in the code, and sector governance debates, including the Manitoba Hydro board debate, underscore how oversight remains a national focus.

In a statement to NewmarketToday, NT Power acknowledged a similar issue three years ago when they were alerted to problems with their disconnection process. They promptly made adjustments to align their in-house procedures with the requirements of the Ontario Energy Board. Unfortunately, they neglected to implement a secondary check, leading to disconnect notices being dated a few days too early.

Alex Braletic, NT Power's Vice President of Engineering and Operation, clarified that no customers were actually disconnected prematurely, and debates over paying for electricity in India illustrate how enforcement challenges differ globally, but the issued letters contained inaccuracies. He added that NT Power has since instituted additional verification procedures to prevent such errors from occurring again.

The Ontario Energy Board emphasized that NT Power has assured them that corrective measures have been taken to ensure that their staff involved in the disconnection process receive proper training and management oversight, and recent market reactions such as Hydro One shares falling after leadership changes underscore the importance of strong governance to guarantee compliance with regulatory requirements.

Brian Hewson, Vice President of Consumer Protection and Industry Performance at the Ontario Energy Board, stated, referencing earlier Ontario rate reductions for businesses that complemented consumer protections, "As a result of the actions we have taken and NT Power’s assurance that it is aware of its obligations and has taken steps to improve its processes, consumers will be better protected."

Braletic encouraged NT Power's customers who are facing difficulties paying their electricity bills to reach out to their customer service department or visit their website. He emphasized that various programs and services are available to provide relief for bills, and amid ongoing Toronto Hydro impersonation scams customers should contact NT Power directly. NT Power is committed to collaborating with customers proactively and connecting them with assistance to avoid serving them with disconnection notices.

Furthermore, NT Power plans to send a letter to the ten affected customers and provide each of them with a $100 bill credit as a goodwill gesture.

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Ontario Hydro Rate Relief Plan delivers short-term electricity bill cuts, while leaked cabinet forecasts show inflation-linked hikes, borrowing costs, and a Clean Energy Adjustment under the province's long-term energy plan.

Key Points

A provincial plan that cuts bills now but defers costs, projecting rate hikes and adding a Clean Energy Adjustment.

✅ 25% cut now, after 8% HST relief; extra 17% reduction applied.

✅ Forecast: inflation-linked hikes later; borrowing adds long-term costs.

✅ Clean Energy Adjustment line to repay deferred system costs.

The short-term gain of a 25 per cent hydro rate cut this summer could lead to long-term pain as a leaked cabinet document forecasts prices jumping again in five years.

In the briefing materials leaked and obtained by the Progressive Conservatives, rates will start rising 6.5 per cent a year in 2022 and top out at 10.5 per cent in 2028, when average monthly bills hit $215.

That would be up from $123 this year once the rate cut — the subject of long-awaited legislation to lower electricity rates unveiled Thursday by Energy Minister Glenn Thibeault — takes full effect. There will be another 17-per-cent cut in addition to the 8 per cent taken off bills in January when the provincial portion of the HST was waived.

The leaked papers overshadowed Thibeault’s efforts to tout the price break, which will be followed with four years of hydro rate increases at 2 per cent, roughly the rate of inflation.

Thibeault charged that the Conservatives used an “outdated” document to distract from the fact that they are the only major party without a plan for dealing with skyrocketing hydro rates, with a year to go until next June’s provincial election.

“It’s not a coincidence,” he told reporters, denying any plans for an eventual 10.5-per-cent rate hike and promising the government’s new long-term energy plan, due in a few months, will have better numbers.

“We are working hard right now to continue to pull costs out of the system.”

Opposition parties said the Liberal plan doesn’t deal with the underlying problems that have made electricity expensive and simply borrows money to spread the costs over a longer period of time, with $25 billion in interest charges over 30 years.

Some observers also noted that a deal with Quebec would not reduce hydro bills, highlighting concerns about lasting affordability.

“The price of electricity is going to skyrocket after the next election,” warned Conservative MPP Todd Smith (Prince Edward—Hastings).

“The government isn’t being honest with the people of Ontario when it comes to the price of electricity.”

The documents show average monthly bills peaking at $231 in the year 2047, before falling back to $210 the following year once the 30 years of interest payments are over.

Conservative sources say they obtained the papers stamped “confidential cabinet document” from a whistleblower after Thibeault’s rate cut plan was presented to cabinet ministers at a meeting in early March.

There is no date on the document, which the energy minister alternately dismissed as “inaccurate” or possibly one of many that have been prepared with different options in mind.

“We’ve had hundreds of briefings with hundreds of documents … I can’t comment on one graph when we’ve been looking at hundreds of scenarios.”

New Democrats, who have proposed a scheme to cut rates, if elected, also called the government plan an election ploy with Liberals lagging in the polls.

“We’re going to take on a huge debt so (Premier) Kathleen Wynne can look good on the hustings in the next few months, and for decades we’re going to pay for it,” said MPP Peter Tabuns (Toronto-Danforth).

Thibeault acknowledged the Liberal plan will start repaying borrowed money in the mid- or late 2020s and it will show up separately on hydro bills as the “Clean Energy Adjustment”, a kind of electricity recovery rate that could raise costs.

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California Wildfire Smoke Impact on Solar reduces photovoltaic output, as particulate pollution, soot, and haze dim sunlight and foul panels, cutting utility-scale generation and grid reliability across CAISO during peak demand and heatwaves.

Key Points

How smoke and soot cut solar irradiance and foul panels, slashing PV generation and straining CAISO grid operations.

✅ Smoke blocks sunlight; soot deposition reduces panel efficiency.

✅ CAISO reported ~30% drop versus July during peak smoke.

✅ Longer fire seasons threaten solar reliability and capacity planning.

Smoke from California’s unprecedented wildfires was so bad that it cut a significant chunk of solar power production in the state, even as U.S. solar generation rose in 2022 nationwide. Solar power generation dropped off by nearly a third in early September as wildfires darkened the skies with smoke, according to the US Energy Information Administration.

Those fires create thick smoke, laden with particles that block sunlight both when they’re in the air and when they settle onto solar panels. In the first two weeks of September, soot and smoke caused solar-powered electricity generation to fall 30 percent compared to the July average, according to the California Independent System Operator (CAISO), which oversees nearly all utility-scale solar energy in California, where wind and solar curtailments have been rising amid grid constraints. It was a 13.4 percent decrease from the same period last year, even though solar capacity in the state has grown about 5 percent since September 2019.

California depends on solar installations for nearly 20 percent of its electricity generation, and has more solar capacity than the next five US states trailing it combined as it works to manage its solar boom sustainably. It will need even more renewable power to meet its goal of 100 percent clean electricity generation by 2045, building on a recent near-100% renewable milestone that underscored the transition. The state’s emphasis on solar power is part of its long-term efforts to avoid more devastating effects of climate change. But in the short term, California’s renewables are already grappling with rising temperatures.

Two records were smashed early this September that contributed to the loss of solar power. California surpassed 2 million acres burned in a single fire season for the first time (1.7 million more acres have burned since then). And on September 15th, small particle pollution reached the highest levels recorded since 2000, according to the California Air Resources Board. Winds that stoked the flames also drove pollution from the largest fires in Northern California to Southern California, where there are more solar farms.

Smaller residential and commercial solar systems were affected, too, and solar panels during grid blackouts typically shut off for safety, although smoke was the primary issue here. “A lot of my systems were producing zero power,” Steve Pariani, founder of the solar installation company Solar Pro Energy Systems, told the San Mateo Daily Journal in September.

As the planet heats up, California’s fire seasons have grown longer, and blazes are tearing through more land than ever before, while grid operators are also seeing rising curtailments as they integrate more renewables. For both utilities and smaller solar efforts, wildfire smoke will continue to darken solar energy’s otherwise bright future, even as it becomes the No. 3 renewable source in the U.S. by generation.

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Canada Wind Energy Costs are plunging as renewable energy auctions, CfD contracts, and efficient turbines drive prices to 2-4 cents/kWh across Alberta and Saskatchewan, outcompeting grid power via competitive bidding and improved capacity factors.

Key Points

Averaging 2-4 cents/kWh via auctions, CfD support, and bigger turbines, wind is now cost-competitive across Canada.

✅ Alberta CfD bids as low as 3.9 cents/kWh.

✅ Turbine outputs rose from 1 MW to 3.3 MW per tower.

✅ Competitive auctions cut costs ~70% over nine years.

It's taken a decade of technological improvement and a new competitive bidding process for electrical generation contracts, but wind may have finally come into its own as one of the cheapest ways to create power.

Ten years ago, Ontario was developing new wind power projects at a cost of 28 cents per kilowatt hour (kWh), the kind of above-market rate that the U.K., Portugal and other countries were offering to try to kick-start development of renewables. 

Now some wind companies say they've brought generation costs down to between 2 and 4 cents — something that appeals to provinces that are looking to significantly increase their renewable energy deployment plans.

The cost of electricity varies across Canada, by province and time of day, from an average of 6.5 cents per kWh in Quebec to as much as 15 cents in Halifax.

Capital Power, an Edmonton-based company, recently won a contract for the Whitla 298.8-megawatt (MW) wind project near Medicine Hat, Alta., with a bid of 3.9 cents per kWh, at a time when three new solar facilities in Alberta have been contracted at lower cost than natural gas, underscoring the trend. That price covers capital costs, transmission and connection to the grid, as well as the cost of building the project.

Jerry Bellikka, director of government relations, said Capital Power has been building wind projects for a decade, in the U.S., Alberta, B.C. and other provinces. In that time the price of wind generation equipment has been declining continually, while the efficiency of wind turbines increases.

Increased efficiency

"It used to be one tower was 1 MW; now each turbine generates 3.3 MW. There's more electricity generated per tower than several years ago," he said.

One wild card for Whitla may be steel prices — because of the U.S. and Canada slapping tariffs on one other's steel and aluminum products. Whitla's towers are set to come from Colorado, and many of the smaller components from China.

Canada introduces new surtaxes to curb flood of steel imports

"We haven't yet taken delivery of the steel. It remains to be seen if we are affected by the tariffs." Belikka said.

Another company had owned the site and had several years of meteorological data, including wind speeds at various heights on the site, which is in a part of southern Alberta known for its strong winds.

But the choice of site was also dependent on the municipality, with rural Forty Mile County eager for the development, Belikka said.

Alberta aims for 30% electricity from wind by 2030

Alberta wants 30 per cent of its electricity to come from renewable sources by 2030 and, as an energy powerhouse, is encouraging that with a guaranteed pricing mechanism in what is otherwise a market-bidding process.

While the cost of generating energy for the Alberta Electric System Operator (AESO) fluctuates hourly and can be a lot higher when there is high demand, the winners of the renewable energy contracts are guaranteed their fixed-bid price.

The average pool price of electricity last year in Alberta was 5 cents per kWh; in boom times it rose to closer to 8 cents. But if the price rises that high after the wind farm is operating, the renewable generator won't get it, instead rebating anything over 3.9 cents back to the government.

On the other hand, if the average or pool price is a low 2 cents kWh, the province will top up their return to 3.9 cents.

This contract-for-differences (CfD) payment mechanism has been tested in renewable contracts in the U.K. and other jurisdictions, including some U.S. states, according to AESO.

Competitive bidding in Saskatchewan

In Saskatchewan, the plan is to double its capacity of renewable electricity, to 50 per cent of generation capacity, by 2030, and it uses an open bidding system between the private sector generator and publicly owned SaskPower.

In bidding last year on a renewable contract, 15 renewable power developers submitted bids, with an average price of 4.2 cents per kWh.

One low bidder was Potentia with a proposal for a 200 MW project, which should provide electricity for 90,000 homes in the province, at less than 3 cents kWh, according to Robert Hornung of the Canadian Wind Energy Association.

"The cost of wind energy has fallen 70 per cent in the last nine years," he says. "In the last decade, more wind energy has been built than any other form of electricity."

Ontario remains the leading user of wind with 4,902 MW of wind generation as of December 2017, most of that capacity built under a system that offered an above-market price for renewable power, put in place by the previous Liberal government.

In June of last year, the new Conservative government of Doug Ford halted more than 700 renewable-energy projects, one of them a wind farm that is sitting half-built, even as plans to reintroduce renewable projects continue to advance.

The feed-in tariff system that offered a higher rate to early builders of renewable generation ended in 2016, but early contracts with guaranteed prices could last up to 20 years.

Hornung says Ontario now has an excess of generating capacity, as it went on building when the 2008-9 bust cut market consumption dramatically.

But he insists wind can compete in the open market, offering low prices for generation when Ontario needs new  capacity.

"I expect there will be competitive processes put in place. I'm quite confident wind projects will continue to go ahead. We're well positioned to do that."

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SaskPower Rate Hike 2022-2023 signals higher electricity rates in Saskatchewan as natural gas costs surge; the Rate Review Panel approved increases, affecting residential utility bills amid affordability concerns and government energy policy shifts.

Key Points

An 8% SaskPower electricity rate increase split 4% in Sept 2022 and 4% in Apr 2023, driven by natural gas costs.

✅ 4% increase Sept 1, 2022; +4% on Apr 1, 2023

✅ Panel-approved amid natural gas price surge and higher fuel costs

✅ Avg residential bill up about $5 per step; affordability concerns

The NDP Opposition is condemning the provincial government’s decision to approve the Saskatchewan Rate Review Panel’s recommendation to increase SaskPower’s rates for the first time since 2018, despite a recent 10% rebate pledge by the Sask. Party.

The Crown electrical utility’s rates will increase four per cent this fall, and another four per cent in 2023, a trajectory comparable to BC Hydro increases over two years. According to a government news release issued Thursday, the new rates will result in an average increase of approximately $5 on residential customers’ bills starting on Sept. 1, 2022, and an additional $5 on April 1, 2023.

“The decision to increase rates is not taken lightly and came after a thorough review by the independent Saskatchewan Rate Review Panel,” Minister Responsible for SaskPower Don Morgan said in a news release, amid Nova Scotia’s 14% hike this year. “World events have caused a significant rise in the price of natural gas, and with 42 per cent of Saskatchewan’s electricity coming from natural gas-fueled facilities, SaskPower requires additional revenue to maintain reliable operations.”

But NDP SaskPower critic Aleana Young says the rate hike is coming just as businesses and industries are struggling in an “affordability crisis,” even as Manitoba Hydro scales back a planned increase next year.

She called the announcement of an eight per cent increase in power bills on a summer day before the long weekend “a cowardly move” by the premier and his cabinet, amid comparable changes such as Manitoba’s 2.5% annual hikes now proposed.

“Not to mention the Sask. Party plans to hike natural gas rates by 17% just days from now,” said Young in a news release issued Friday, as Manitoba rate hearings get underway nearby. “If Scott Moe thinks his choices — to not provide Saskatchewan families any affordability relief, to hike taxes and fees, then compound those costs with utility rate hikes — are defensible, he should have the courage to get out of his closed-door meetings and explain himself to the people of this province.”

The province noted natural gas is the largest generation source in SaskPower’s fleet. As federal regulations require the elimination of conventional coal generation in Canada by 2030, SaskPower’s reliance on natural gas generation is expected to grow, with experts in Alberta warning of soaring gas and power prices in the region. Fuel and Purchased Power expense increases are largely driven by increased natural gas prices, and SaskPower’s fuel and purchased power expense is expected to increase from $715 million in 2020-21 to $1.069 billion in 2023-24. This represents a 50 per cent increase in fuel and purchased power expense over three years.

“In the four years since our last increase SaskPower has worked to find internal efficiencies, but at this time we require additional funding to continue to provide reliable and sustainable power,” SaskPower president & CEO Rupen Pandya said in the release “We will continue to be transparent about our rate strategy and the need for regular, moderate increases.”

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