Hydropower to become blue gold? Not likely

By Globe and Mail


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This is a big week for Canada's made-in-Washington energy and climate policy. The U.S. Senate is likely to finalize comprehensive energy legislation that will have a significant impact on our economy and environment.

As a Globe editorial pointed out, there are some troubling protectionist measures contained in the current draft of the legislation.

One protectionist measure that has not received as much attention as of yet are the rules surrounding the proposed National Renewable Electricity Standard (RES) that will require all U.S. utilities to purchase 15 per cent of their electricity from renewable sources by 2020 (the exact percentage covered by the RES is something a moving target).

The move by the U.S. federal government towards a national RES is seen in some quarters as a significant opportunity for Canadian provinces such as British Columbia, Manitoba and most importantly Quebec that have significant hydro reserves.

Premier Jean Charest said earlier this year that "today the richest societies in the world are those which have oil. Tomorrow, the richest societies will be those that will have clean, renewable energy." He added that he wants Quebec to be the "Alberta of hydro-electricity."

The only problem? The proposed RES only recognizes a very limited amount of incremental "hydro" as "renewable energy" (ie - most hydro is NOT considered renewable energy under the act) and does not contemplate allowing imported hydro to qualify towards meeting the obligations of utilities under the RES.

The American Wind Energy Association is blunt about why they lobby to exclude Canadian hydro.

"It is necessary to exclude large hydropower from the RPS [Note: a "RPS" and a RES are for all meaningful purpose synonyms] for several reasons. Though hydro brings public benefits in terms of avoiding the air emissions and wastes associated with conventional power plants, hydro is technologically mature, is fully commercialized (representing a significant share of the electricity market), and has limited development potential. Most importantly, including hydro in the RPS would create several intractable practical problems: (a) output from the large base of Canadian hydro projects could potentially be rerouted into the U.S. market and "flood" that market, depressing prices to levels too low to support non-hydro renewables; (b) the large year-to-year fluctuations in hydro output would make it difficult to meet a fixed standard each year and at the same time provide a predictable market for renewables; and (c) many hydro facilities have more than one use and have been built with the aid of large government subsidies."

It's not that their arguments are wrong (though obviously hypocritical given the "large government subsidies" that the wind industry is almost entirely dependant on). They do lay out the challenge facing the Canadian industry.

Realizing the problem at hand, the Quebec Natural Resources Minister is off to Hartford to lobby east coast governors to consider hydro as renewable energy. His timing is a bit odd - I'm not sure why he is lobbying governors who have already rejected his argument when their climate change scheme is very quickly being surplanted by federal legislation.

In the past, Quebec and Ontario have mused about a NAFTA challenge of these restrictions. I'm not a trade lawyer but one problem I see with these challenges is that neither province has anything even close to "free trade" in electricity domestically (no province really does). How do we insist that our utilities have a right under NAFTA to have their "renewable" energy included in the U.S. scheme when no Canadian province would allow U.S. based generators to bid their renewable energy into any of our programs?

Which means that this is likely to be added to a long, and growing, list of political issues that Canada will need to muddle through until we struggle to develop a coherent policy of our own.

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Energy authority clears TEPCO to restart Niigata nuclear plant

TEPCO Kashiwazaki-Kariwa restart plan clears NRA fitness review, anchored by a seven-point safety code, Niigata consent, Fukushima lessons, seismic risk analysis, and upgrades to No. 6 and No. 7 reactors, each rated 1.35 GW.

 

Key Points

TEPCO's plan to restart Kashiwazaki-Kariwa under NRA rules, pending Niigata consent and upgrades to Units 6 and 7.

✅ NRA deems TEPCO fit; legally binding seven-point safety code

✅ Local consent required: Niigata review of evacuation and health impacts

✅ Initial focus on Units 6 and 7; 1.35 GW each, seismic upgrades

 

Tokyo Electric Power Co. cleared a major regulatory hurdle toward restarting a nuclear power plant in Niigata Prefecture, but the utility’s bid to resume its operations still hangs in the balance of a series of political approvals.

The government’s nuclear watchdog concluded Sept. 23 that the utility is fit to operate the plant, based on new legally binding safety rules TEPCO drafted and pledged to follow, even as nuclear projects worldwide mark milestones across different regulatory environments today. If TEPCO is found to be in breach of those regulations, it could be ordered to halt the plant’s operations.

The Nuclear Regulation Authority’s green light now shifts the focus over to whether local governments will agree in the coming months to restart the Kashiwazaki-Kariwa plant.

TEPCO is keen to get the plant back up and running. It has been financially reeling from the closure of its nuclear plants in Fukushima Prefecture following the triple meltdown at the Fukushima No. 1 nuclear plant in 2011 triggered by the earthquake and tsunami disaster.

In parallel, Japan is investing in clean energy innovations such as a large hydrogen system being developed by Toshiba, Tohoku Electric Power and Iwatani.

The company plans to bring the No. 6 and No. 7 reactors back online at the Kashiwazaki-Kariwa nuclear complex, which is among the world’s largest nuclear plants, amid China’s nuclear energy continuing on a steady development track in the region.

The two reactors each boast 1.35 gigawatts in output capacity, while Kenya’s nuclear plant aims to power industry as part of that country’s expansion. They are the newest of the seven reactors there, first put into service between 1996 and 1997.

TEPCO has not revealed specific plans yet on what to do with the older five reactors.

In 2017, the NRA cleared the No. 6 and No. 7 reactors under the tougher new reactor regulations established in 2013 in response to the Fukushima nuclear disaster, while jurisdictions such as Ontario support continued operation at Pickering under strict oversight.

It also closely scrutinized the operator’s ability to run the Niigata Prefecture plant safely, given its history as the entity responsible for the nation’s most serious nuclear accident.

After several rounds of meetings with top TEPCO managers, the NRA managed to hold the utility’s feet to the fire enough to make it pledge, in writing, to abide by a new seven-point safety code for the Kashiwazaki-Kariwa plant.

The creation of the new code, which is legally binding, is meant to hold the company accountable for safety measures at the facility.

“As the top executive, the president of TEPCO will take responsibility for the safety of nuclear power,” one of the points reads. “TEPCO will not put the facility’s economic performance above its safety,” reads another.

The company promised to abide by the points set out in writing during the NRA’s examination of its safety regulations.

TEPCO also vowed to set up a system where the president is directly briefed on risks to the nuclear complex, including the likelihood of earthquakes more powerful than what the plant is designed to withstand. It must also draft safeguard measures to deal with those kinds of earthquakes and confirm whether precautionary steps are in place.

The utility additionally pledged to promptly release public records on the decision-making process concerning crucial matters related to nuclear safety, and to preserve the documents until the facility is decommissioned.

TEPCO plans to complete its work to reinforce the safety of the No. 7 reactor in December. It has not set a definite deadline for similar work for the No. 6 reactor.

To restart the Kashiwazki-Kariwa plant, TEPCO needs to obtain consent from local governments, including the Niigata prefectural government.

The prefectural government is studying the plant’s safety through a panel of experts, which is reviewing whether evacuation plans are adequate as off-limits areas reopen and the health impact on residents from the Fukushima nuclear disaster.

Niigata Governor Hideyo Hanazumi said he will not decide on the restart until the panel completes its review.

The nuclear complex suffered damage, including from fire at an electric transformer, when an earthquake it deemed able to withstand hit in 2007.

 

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China boosts wind energy, photovoltaic and concentrated solar power

China Renewable Energy Law drives growth in wind power, solar thermal, and photovoltaic capacity, supporting grid integration and five-year plans, even as China leads CO2 emissions, with policy incentives, compliance inspections, and national resource assessments.

 

Key Points

A legal framework that speeds wind, solar thermal, and PV growth in China via mandates, incentives, and grid rules.

✅ 2018 renewables: 1.87T kWh, 26.7% of national power

✅ Over 100 State Council policies enabling deployment

✅ Law inspections and regional oversight across six provinces

 

China leads renewable energies, installing more wind power, solar thermal and photovoltaic than any other country, as seen in the China solar PV growth reported in 2016, but also leads CO2 emissions, and much remains to be done.

The effective application of Chinas renewable energy law has boosted the use of renewable energy in the country and facilitated the rapid development of the sector, as solar parity across Chinese cities indicates, a report said.

The report on compliance with renewable energy law was presented today at the current bimonthly session of the Standing Committee of the National Peoples Assembly (APN).

Electricity generated by renewable energy amounted to about 1.87 trillion kilowatts per hour in 2018, representing 26.7 percent of Chinas total energy production in the year, aligning with trends where wind and solar doubling globally over five years, the report said.

Ding Zhongli, vice president of the NPC Standing Committee, presented the report to the legislators at the second plenary meeting of the session.

An inspection of the law enforcement was carried out from August to November, as U.S. renewables hit 28% record showed momentum elsewhere. A total of 21 members of the NPC Standing Committee and the NPC Environmental Protection and Resource Conservation Committee, as well as national legislators, traveled to six regions at the provincial level on inspection visits. Twelve legislative bodies at the provincial level inspected the law enforcement efforts in their jurisdictions.

The relevant State Council agencies have implemented more than 100 regulations and policies to foster a good policy environment for the development of renewable energy, as seen in markets where U.S. renewable electricity surpassed coal in 2022. Local regulations have also been formulated based on local conditions, according to the report.

In accordance with the law, a thorough investigation of the national conditions of renewable energy resources was undertaken.

In 2008 and 2014 atlas of solar energy resources and wind energy evaluation of China were issued. The relevant agencies of the State Council have also implemented five-year plans for the development of renewable energy, which have provided guidance to the sector, while countries like Ireland's one-third green power target remain in focus within four years.

The main provisions of the law have been met, the law has been effectively applied and the purpose of the legislation has been met, and this momentum is echoed abroad, with U.S. renewables near one-fourth according to projections, Ding said.

 

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Energy Ministry may lower coal production target as Chinese demand falls

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

 

Key Points

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

✅ China demand drop reduces exports and thermal coal shipments.

✅ HBA reference price decline pressures margins and cash flow.

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

 

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

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

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

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

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

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

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

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

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

 

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Kenya on Course for $5 Billion Nuclear Plant to Power Industry

Kenya Nuclear Power Plant Project advances with environmental impact assessment, selecting Tana River County under a build-operate-transfer model to boost grid capacity, support manufacturing growth, and assess reactor technology for reliable baseload energy.

 

Key Points

A $5B BOT nuclear facility in Tana River to expand Kenya's grid, aiming to start operations in about seven years.

✅ Environmental impact study published for public review by NEMA

✅ Preferred site: Tana River County near coast; grid integration

✅ BOT concession; reactor tech under evaluation for baseload

 

Kenya’s nuclear agency submitted impact studies for a $5 billion power plant, and said it’s on course to build and start operating the facility in about seven years, as markets like China's nuclear program continue steady expansion.

The government plans to expand its nuclear-power capacity fourfold by 2035, mirroring policy steps in India to revive the sector, the Nuclear Power and Energy Agency said in a report on the National Environment Management Authority’s website. The document is set for public scrutiny before the environmental watchdog can approve it, aligning with global green industrial strategies that weigh nuclear in decarbonization, and pave the way for the project to continue.

President Uhuru Kenyatta wants to ramp up installed generation capacity from 2,712 megawatts as of April to boost manufacturing in East Africa’s largest economy, noting milestones such as Barakah Unit 1 reaching 100% power as indicators of nuclear readiness. Kenya expects peak demand to top 22,000 megawatts by 2031, and other jurisdictions, such as Ontario's exploration of new nuclear, are weighing similar large-scale options, partly due to industrial expansion, a component in Kenyatta’s Big Four Agenda. The other three are improving farming, health care and housing.

The nuclear agency is assessing technologies “to identify the ideal reactor for the country,” it said in the report, including next-gen nuclear designs now being evaluated.

A site in Tana River County, near the Kenyan coast was preferred after studies across three regions, according to the report. The plant will be developed with a concessionaire under a build, operate and transfer model, with innovators such as mini-reactor concepts informing vendor options.

 

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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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Electricity bills on the rise in Calgary after

Calgary Electricity Price Increase signals higher ENMAX bills as grid demand surges; wholesale market volatility, fixed vs floating rates, kWh costs, and transmission charges drive above-average pricing across Alberta this winter.

 

Key Points

A market-led rise in Calgary power rates as grid demand and wholesale volatility affect fixed and floating plans.

✅ ENMAX warns of higher winter prices amid record grid demand

✅ Fixed rates hedge wholesale volatility; floating tracks spot market

✅ Transmission and distribution fees rise 5-10 percent annually

 

Calgarians should expect to be charged more for their electricity bills amid significant demand on the grid and a transition to above-average rates across Alberta.

ENMAX, one of the most-used electricity providers in the city, has sent an email to customers notifying them of higher prices for the rest of the winter months.

“Although fluctuations in electricity market prices are normal, we have seen a general trend of increasing rates over time,” the email to customers read.

“The price volatility we are forecasting is due to market factors beyond a single energy provider, including but not limited to expectations for a colder-than-normal winter and changes in electricity supply and demand in Alberta’s wholesale market. ”

Earlier this month, the province set a record for electricity usage during a bitterly cold stretch of weather.

According to energy comparison website energyrates.ca, Alberta’s energy prices have increased by 34 per cent between November 2020 and 2021.

“One of the reasons that this increase seems so significant is we’re actually coming off of a low period in the market,” the site’s founder Joel MacDonald told Global News. “You’re seeing rates well below average transitioning to well above average.”

According to ENMAX’s rate in January, the price of electricity currently sits at 15.9 cents per kilowatt-hour, with an electricity price spike from 7.9 cents per kilowatt-hour last year.

MacDonald said prices for electricity have been relatively low since 2018 but a swing in the price of oil has created more activity in the province’s industrial sector, and in turn more demand on the power grid.

According to MacDonald, the price increase can also be attributed to the removal of a consumer price cap that limited regulated rates to 6.8 cents per kilowatt-hour for households and small businesses with lower demand, which, after the carbon tax was repealed, initially remained in place.

Although the cap was scrapped by the UCP three years ago, he said energy bills now depend on the rate set by the market.

“What’s increased now recently is actually the price per kilowatt, and the (transmission and distribution) charges have only increased, but annually they increase between five and 10 per cent,” MacDonald said. “So the portion of your bill that’s increasing is different than what Albertans are typically used to, or at least in recent memory.”

But Albertans do have options, MacDonald said.

As part of its email to customers, ENMAX sent a list of energy saving tips to reduce energy consumption in people’s homes, including using cold water for laundry and avoiding dryer use, energy-efficient lightbulbs and unplugging electronics when they are not in use.

Retailers also offer contracts with floating or fixed rates for consumers.

“Fixed rates, obviously, you’re going to pick your price. It’s going to be the same each and every single month,” MacDonald said. “Floating rate is based off the wholesale spot market, and that has been exceptionally high the last few months.”

He said consumers looking to save money when electricity prices are high should look into a fixed rate.

 

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