TVA a part of nuclear simulation project

New England oil-fired generation surges as ISO New England manages a cold snap, dual-fuel switching, and a natural gas price spike, highlighting winter reliability challenges, LNG and pipeline limits, and rising CO2 emissions.

Key Points

Reliance on oil-burning power plants during winter demand spikes when natural gas is costly or constrained.

✅ Driven by dual-fuel switching amid high natural gas prices

✅ ISO-NE winter reliability rules encourage oil stockpiles

✅ Raises CO2 emissions despite coal retirements and renewables growth

New England is relying on oil-fired generators for the most electricity since 2018 as a frigid blast boosts demand for power and natural gas prices soar across markets. 

Oil generators were producing more than 4,200 megawatts early Thursday, accounting for about a quarter of the grid’s power supply, according to ISO New England. That was the most since Jan. 6, 2018, when oil plants produced as much as 6.4 gigawatts, or 32% of the grid’s output, said Wood Mackenzie analyst Margaret Cashman.  

Oil is typically used only when demand spikes, because of higher costs and emissions concerns. Consumption has been consistently high over the past three weeks as some generators switch from gas, which has surged in price in recent months. New England generators are producing power from oil at an average rate of almost 1.8 gigawatts so far this month, the highest for January in at least five years. 

Oil’s share declined to 16% Friday morning ahead of an expected snowstorm, which was “a surprise,” Cashman said. 

“It makes me wonder if some of those generators are aiming to reserve their fuel for this weekend,” she said.

During the recent cold snap, more than a tenth of the electricity generated in New England has been produced by power plants that haven’t happened for at least 15 years.

Burning oil for electricity was standard practice throughout the region for decades. It was once our most common fuel for power and as recently as 2000, fully 19% of the six-state region’s electricity came from burning oil, according to ISO-New England, more than any other source except nuclear power at the time.

Since then, however, natural gas has gotten so cheap that most oil-fired plants have been shut or converted to burn gas, to the point that just 1% of New England’s electricity came from oil in 2018, whereas about half our power came from natural gas generation regionally during that period. This is good because natural gas produces less pollution, both particulates and greenhouse gasses, although exactly how much less is a matter of debate.

But as you probably know, there’s a problem: Natural gas is also used for heating, which gets first dibs. Prolonged cold snaps require so much gas to keep us warm, a challenge echoed in Ontario’s electricity system as supply tightens, that there might not be enough for power plants – at least, not at prices they’re willing to pay.

After we came close to rolling brownouts during the polar vortex in the 2017-18 winter because gas-fired power plants cut back so much, ISO-NE, which has oversight of the power grid, established “winter reliability” rules. The most important change was to pay power plants to become dual-fuel, meaning they can switch quickly between natural gas and oil, and to stockpile oil for winter cold snaps.

We’re seeing that practice in action right now, as many dual-fuel plants have switched away from gas to oil, just as was intended.

That switch is part of the reason EPA says the region’s carbon emissions have gone up in the pandemic, from 22 million tons of CO2 in 2019 to 24 million tons in 2021. That reverses a long trend caused partly by closing of coal plants and partly by growing solar and offshore wind capacity: New England power generation produced 36 million tons of CO2 a decade ago.

So if we admit that a return to oil burning is bad, and it is, what can we do in future winters? There are many possibilities, including tapping more clean imports such as Canadian hydropower to diversify supply.

The most obvious solution is to import more natural gas, especially from fracked fields in New York state and Pennsylvania. But efforts to build pipelines to do that have been shot down a couple of times and seem unlikely to go forward and importing more gas via ocean tanker in the form of liquefied natural gas (LNG) is also an option, but hits limits in terms of port facilities.

Aside from NIMBY concerns, the problem with building pipelines or ports to import more gas is that pipelines and ports are very expensive. Once they’re built they create a financial incentive to keep using natural gas for decades to justify the expense, similar to moves such as Ontario’s new gas plants that lock in generation. That makes it much harder for New England to decarbonize and potentially leaves ratepayers on the hook for a boatload of stranded costs.

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Alberta Electricity Price Hikes spotlight grid reliability, renewable transition, coal phase-out, and energy poverty, as policy shifts and investor reports warn of rate increases, biomass trade-offs, and sustainability challenges impacting households and businesses.

Key Points

Projected power bill hikes from market reforms, renewables, coal phase-out, and reliability costs in Alberta.

✅ Investor report projects 3x-7x bills and $50B market transition costs

✅ Policy missteps cited in Ontario, Germany, Australia price spikes

✅ Debate: retain coal vs. speed renewables, storage, and grid upgrades

Since when did electricity become a scarce resource?

I thought all the talk about greening the grid was about having renewable, sustainable, less polluting options to fulfill our growing need for power. Yet, increasingly, we are faced with news stories that indicate using power is bad in and of itself, even as flat electricity demand worries utilities.

The implication, I guess, is that we should be using less of it. But, I don’t want to use less electricity. I want to be able to watch TV, turn my lights on when the sun sets at 4 p.m. in the winter, keep my food cold and power my devices.

We once had a consensus that a reliable supply of power was essential to a growing economy and a high quality of life, a point underscored by brownout risks in U.S. markets.

I’m beginning to wonder if we still have that consensus.

And more importantly, if our decision makers have determined electricity is a vice as opposed to an essential of life – as debates over Alberta electricity policy suggest – you know what is going to happen next. Prices are going to rise, forcing all of us to use less.

How much would it hurt your bottom line if your electricity bill went up three-fold? How about seven-fold? That is the grim picture that Todd Beasley painted for us on Tuesday’s show.

Last week, he launched a campaign on behalf of Albertans for Sustainable Electricity, called Stop the Shock. He shared the results of an internal investor report that concluded Alberta’s power market overhaul would cost an estimated $50 billion to implement and could result in a three to seven-fold increase in electricity bills.

Now, my typical power bill averages $70 a month. That would be like having it grow to $210 a month, or just over $2,500 a year. If it’s a seven-fold increase that would be more like $5,000 a year. That may be manageable for some families, but I can think of a lot of things I’d rather do with $5,000 than pay more to keep my fridge running so my food doesn’t spoil.

For low-income families that would be a real hardship.

Beasley said Ontario’s inept handling of its electricity market and the phase-out of coal power resulted in price spikes that left more than 70,000 individuals facing energy poverty.

Germany and Australia realized they made the same mistake and are returning some electricity to coal.

Beasley shared a long list of Canadian firms – including our own Canadian Pension Plan – that are investing in coal development around the world. Meanwhile, Canadian governments remain in a mad rush to phase it out here. That’s not the only hypocrisy.

Rupert Darwall, author of Green Tyranny: Exposing the Totalitarian Roots of the Climate Industrial Complex, revealed in a recent column what he calls “the scandal at the heart of the EU’s renewable policies.”

Turns out most of their expansion in renewable energy has come from biomass in the form of wood. Not only does burning wood produce more CO2, it also eliminates carbon sinks.

To meet the EU’s 2030 target would require cutting down trees equivalent to the combined harvest in Canada and the United States. As he puts it, “Whichever way you look at it, burning the world’s carbon sinks to meet the EU’s arbitrary renewable energy targets is environmentally insane.”

Beasley’s group is trying to bring some sanity back to the discussion. The goal should be to move to a greener grid while maintaining abundant, reliable and cheap power, and examples like Texas grid improvements show practical steps. He thinks to achieve all these goals, coal should remain part of the mix. What do you think?

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Brazil ICMS Tax Cap limits state VAT on fuels, natural gas, electricity, communications, and transit, promising short-term price relief amid inflation, with federal compensation to states and potential legal challenges affecting investments and ANP auctions.

Key Points

A policy capping state VAT at 17-18 percent on fuels, electricity, and services to temper prices and inflation.

✅ Caps VAT to 17-18% on fuels, power, telecom, transit

✅ Short-term relief; medium-long term impact uncertain

✅ Federal compensation; potential court challenges, investment risk

Brazil’s congress approved a bill that limits the ICMS tax rate that state governments can charge on fuels, natural gas, electricity, communications, and public transportation. 

Local lawyers told BNamericas that the measure may reduce fuel and power prices in the short term, similar to Brazil power sector relief loans seen during the pandemic, but it is unlikely to produce any major effects in the medium and long term. 

In most states the ceiling was set at 17% or 18% and the federal government will pay compensation to the states for lost tax revenue until December 31, via reduced payments on debts that states owe the federal government.

The bill will become law once signed by President Jair Bolsonaro, who pushed strongly for the proposal with an eye on his struggling reelection campaign for the October presidential election. Double-digit inflation has turned into a major election issue and fuel and electricity prices have been among the main inflation drivers, as seen in EU energy-driven inflation across the bloc this year. Congress’ approval of the bill is seen by analysts as political victory for the Brazilian leader.

How much difference will it make?

Marcus Francisco, tax specialist and partner at Villemor Amaral Advogados, said that in the formation of fuel and electricity prices there are other factors, including high natural gas prices, that drive increases.

“In the case of fuels, if the barrel of oil [price] increases, automatically the final price for the consumer will go up. For electricity, on the other hand, there are several subsidies and policy choices such as Florida rejecting federal solar incentives that are part of the price and that can increase the rate [paid],” he said. 

There is also a possibility that some states will take the issue to the supreme court since ICMS is a key source of revenue for them, Francisco added.

Tiago Severini, a partner at law firm Vieira Rezende, said the comparison between the revenue impact and the effective price reduction, based on the estimates made by the states and the federal government, seems disproportionate, and, as seen in Europe, rolling back European electricity prices is often tougher than it appears. 

“In other words, a large tax collection impact is generated, which is quite unequal among the different states, for a not so strong price reduction,” he said.

“Due to the lack of clarity regarding the precision of the calculations involved, it’s difficult even to assess the adequacy of the offsets the federal government has been considering, and international cases such as France's new electricity pricing scheme illustrate how complex it can be to align fiscal offsets with regulatory constraints, to cover the cost it would have with the compensation for the states” Severini added.

The compensation ideas that are known so far include hiking other taxes, such as the social contribution on net profits (CSLL) that is paid by oil and gas firms focused on exploration and production.

“This can generate severe adverse effects, such as legal disputes, reduced investments in the country, and reduced attractiveness of the new auctions by [sector regulator] ANP, and costly interventions like the Texas electricity market bailout after extreme weather events,” Severini said. 

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Tesla Electric UK Expansion signals retail energy entry, leveraging Powerwall VPPs for grid services, dynamic pricing, and energy trading, building on Texas success and Octopus Energy ties to buy and sell electricity automatically.

Key Points

Tesla's plan to launch Tesla Electric in the UK, using Powerwall VPPs to retail energy, trade power, and hedge peaks.

✅ Retail energy model built on Powerwall VPP aggregation

✅ Automated buy-sell arbitrage with dynamic pricing

✅ Leverages prior UK approval and Octopus Energy ties

According to a new job posting, Tesla Electric, Tesla’s new electric utility division, is preparing to expand in the United Kingdom as regions such as California grid planners look to electric vehicles for stability to manage demand.

Late last year, after gaining experience through its virtual power plants (VPPs), including response during California blackouts that pressured the grid, Tesla took things a step further with the launch of “Tesla Electric.”

Instead of reacting to specific “events” and providing services to your local electric utilities through demand response programs, as Tesla Powerwall owners have done in VPPs in California, Tesla Electric is actively and automatically buying and selling electricity for Tesla Powerwall owners – providing a buffer against peak prices.

The company is essentially becoming an energy retailer, aligning with a major future for its energy business envisioned by leadership.

Tesla Electric is currently only available to Powerwall owners in Texas, but the company has plans to expand its products through this new division.

We recently reported on Tesla Electric customers in Texas making as much as $150 a day selling electricity back to the grid through the program.

Now Tesla is looking to expand Tesla Electric to the UK, where grid capacity for rising EV demand remains a key consideration.

The company has listed a new job posting for a role called “Head of Operations, Tesla Electric – Retail Energy.”

This has been in the works for a while now. Tesla used to have a partnership with Octopus Energy in the UK for special electricity rates for its owners, during a period when UK EV inquiries surged amid a fuel supply crisis, but it seemed to be a stepping stone before it would itself become an energy provider in the market.

In 2020, Tesla was officially approved as an electricity retailer in the UK. Now it looks like Tesla is going to use this approval with the launch of Tesla Electric.
 

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UK low-carbon electricity 2019 saw stalled growth as renewables rose slightly, wind expanded, nuclear output fell, coal hit record lows, and net-zero targets demand faster deployment to cut CO2 intensity below 100gCO2/kWh.

Key Points

Low-carbon sources supplied 54% of UK power in 2019, up just 1TWh; wind grew, nuclear fell, and coal dropped to 2%.

✅ Wind up 8TWh; nuclear down 9TWh amid outages

✅ Fossil fuels 43% of generation; coal at 2%

✅ Net-zero needs 15TWh per year added to 2030

The amount of electricity generated by low-carbon sources in the UK stalled in 2019, Carbon Brief analysis shows.

Low-carbon electricity output from wind, solar, nuclear, hydro and biomass rose by just 1 terawatt hour (TWh, less than 1%) in 2019. It represents the smallest annual increase in a decade, where annual growth averaged 9TWh. This growth will need to double in the 2020s to meet UK climate targets while replacing old nuclear plants as they retire.

Some 54% of UK electricity generation in 2019 came from low-carbon sources, including 37% from renewables and 20% from wind alone, underscoring wind's leading role in the power mix during key periods. A record-low 43% was from fossil fuels, with 41% from gas and just 2% from coal, also a record low. In 2010, fossil fuels generated 75% of the total.

Carbon Brief’s analysis of UK electricity generation in 2019 is based on figures from BM Reports and the Department for Business, Energy and Industrial Strategy (BEIS). See the methodology at the end for more on how the analysis was conducted.

The numbers differ from those published earlier in January by National Grid, which were for electricity supplied in Great Britain only (England, Wales and Scotland, but excluding Northern Ireland), including via imports from other countries.

Low-carbon low
In 2019, the UK became the first major economy to target net-zero greenhouse gas emissions by 2050, increasing the ambition of its legally binding Climate Change Act.

To date, the country has cut its emissions by around two-fifths since 1990, with almost all of its recent progress coming from the electricity sector.

Emissions from electricity generation have fallen rapidly in the decade since 2010 as coal power has been almost phased out and even gas output has declined. Fossil fuels have been displaced by falling demand and by renewables, such as wind, solar and biomass.

But Carbon Brief’s annual analysis of UK electricity generation shows progress stalled in 2019, with the output from low-carbon sources barely increasing compared to a year earlier.

The chart below shows low-carbon generation in each year since 2010 (grey bars) and the estimated level in 2019 (red). The pale grey bars show the estimated future output of existing low-carbon sources after old nuclear plants retire and the pale red bars show the amount of new generation needed to keep electricity sector emissions to less than 100 grammes of CO2 per kilowatt hour (gCO2/kWh), the UK’s nominal target for the sector.

 Annual electricity generation in the UK by fuel, terawatt hours, 2010-2019. Top panel: fuel by fuel. Bottom panel: cumulative total generation from all sources. Source: BEIS energy trends, BM Reports and Carbon Brief analysis. Chart by Carbon Brief using Highcharts.
As the chart shows, the UK will require significantly more low-carbon electricity over the next decade as part of meeting its legally binding climate goals.

The nominal 100gCO2/kWh target for 2030 was set in the context of the UK’s less ambitious goal of cutting emissions to 80% below 1990 levels by 2050. Now that the country is aiming to cut emissions to net-zero by 2050, that 100gCO2/kWh indicator is likely to be the bare minimum.

Even so, it would require a rapid step up in the pace of low-carbon expansion, compared to the increases seen over the past decade. On average, low-carbon generation has risen by 9TWh each year in the decade since 2010 – including a rise of just 1TWh in 2019.

Given scheduled nuclear retirements and rising demand expected by the Committee on Climate Change (CCC) – with some electrification of transport and heating – low-carbon generation would need to increase by 15TWh each year until 2030, just to meet the benchmark of 100gCO2/kWh.

For context, the 3.2 gigawatt (GW) Hinkley C new nuclear plant being built in Somerset will generate around 25TWh once completed around 2026. The world’s largest offshore windfarm, the 1.2GW Hornsea One scheme off the Yorkshire coast, will generate around 5TWh each year.

The new Conservative government is targeting 40GW of offshore wind by 2030, up from today’s figure of around 8GW. If policies are put in place to meet this goal, then it could keep power sector emissions below 100gCO2/kWh, depending on the actual performance of the windfarms built.

However, new onshore wind and solar, further new nuclear or other low-carbon generation, such as gas with carbon capture and storage (CCS), is likely to be needed if demand is higher than expected, or if the 100gCO2/kWh benchmark is too weak in the context of net-zero by 2050.

The CCC says it is “likely” to “reflect the need for more rapid deployment” of low-carbon towards net-zero emissions in its advice on the sixth UK carbon budget for 2033-2037, due in September.

Trading places
Looking more closely at UK electricity generation in 2019, Carbon Brief’s analysis shows why there was so little growth for low-carbon sources compared to the previous year.

There was another increase for wind power in 2019 (up 8TWh, 14%), with record wind generation as several large new windfarms were completed including the 1.2GW Hornsea One project in October and the 0.6GW Beatrice offshore windfarm in Q2 of 2019. But this was offset by a decline for nuclear (down 9TWh, 14%), due to ongoing outages for reactors at Hunterston in Scotland and Dungeness in Kent.

(Analysis of data held by trade organisation RenewableUK suggests some 0.6GW of onshore wind capacity also started operating in 2019, including the 0.2GW Dorenell scheme in Moray, Scotland.)

As a result of these movements, the UK’s windfarms overtook nuclear for the first time ever in 2019, becoming the country’s second-largest source of electricity generation, and earlier, wind and solar together surpassed nuclear in the UK as momentum built. This is shown in the figure below, with wind (green line, top panel) trading places with nuclear (purple) and gas (dark blue) down around 25% since 2010 but remaining the single-largest source.

 Annual electricity generation in the UK by fuel, terawatt hours, 2010-2019. Top panel: fuel by fuel. Bottom panel: cumulative total generation from all sources. Source: BEIS energy trends, BM Reports and Carbon Brief analysis. Chart by Carbon Brief using Highcharts.
The UK’s currently suspended nuclear plants are due to return to service in January and March, according to operator EDF, the French state-backed utility firm. However, as noted above, most of the UK’s nuclear fleet is set to retire during the 2020s, with only Sizewell B in Suffolk due to still be operating by 2030. Hunterston is scheduled to retire by 2023 and Dungeness by 2028.

Set against these losses, the UK has a pipeline of offshore windfarms, secured via “contracts for difference” with the government, at a series of auctions. The most recent auction, in September 2019, saw prices below £40 per megawatt hour – similar to current wholesale electricity prices.

However, the capacity contracted so far is not sufficient to meet the government’s target of 40GW by 2030, meaning further auctions – or some other policy mechanism – will be required.

Coal zero
As well as the switch between wind and nuclear, 2019 also saw coal fall below solar for the first time across a full year, echoing the 2016 moment when wind outgenerated coal across the UK, after it suffered another 60% reduction in electricity output. Just six coal plants remain in the UK, with Aberthaw B in Wales and Fiddlers Ferry in Cheshire closing in March.

Coal accounted for just 2% of UK generation in 2019, a record-low coal share since centralised electricity supplies started to operate in 1882. The fuel met 40% of UK needs as recently as 2012, but has plummeted thanks to falling demand, rising renewables, cheaper gas and higher CO2 prices.

The reduction in average coal generation hides the fact that the fuel is now often not required at all to meet the UK’s electricity needs. The chart below shows the number of days each year when coal output was zero in 2019 (red line) and the two previous years (blue).

 Cumulative number of days when UK electricity generation from renewable sources has been higher than that from fossil fuels. Source: BEIS energy trends, BM Reports and Carbon Brief analysis. Chart by Carbon Brief using Highcharts.
The 83 days in 2019 with zero coal generation amount to nearly a quarter of the year and include the record-breaking 18-day stretch without the fuel.

Great Britain has been running for a record TWO WEEKS without using coal to generate electricity – the first time this has happened since 1882.

The country’s grid has been coal-free for 45% of hours in 2019 so far.https://www.carbonbrief.org/countdown-to-2025-tracking-the-uk-coal-phase-out …

Coal generation was set for significant reductions around the world in 2019 – including a 20% reduction for the EU as a whole – according to analysis published by Carbon Brief in November.

Notably, overall UK electricity generation fell by another 9TWh in 2019 (3%), bringing the total decline to 58TWh since 2010. This is equivalent to more than twice the output from the Hinkley C scheme being built in Somerset. As Carbon Brief explained last year, falling demand has had a similar impact on electricity-sector CO2 emissions as the increase in output from renewables.

This is illustrated by the fact that the 9TWh reduction in overall generation translated into a 9TWh (6%) cut in fossil-fuel generation during 2019, with coal falling by 10TWh and gas rising marginally.

Increasingly renewable
As fossil-fuel output and overall generation have declined, the UK’s renewable sources of electricity have continued to increase. Their output has risen nearly five-fold in the past decade and their share of the UK total has increased from 7% in 2010 to 37% in 2019.

As a result, the UK’s increasingly renewable grid is seeing more minutes, hours and days during which the likes of wind, solar and biomass collectively outpace all fossil fuels put together, and on some days wind is the main source as well.

The chart below shows the number of days during each year when renewables generated more electricity than fossil fuels in 2019 (red line) and each of the previous four years (blue lines). In total, nearly two-fifths of days in 2019 crossed this threshold.

 Cumulative number of days when the UK has not generated any electricity from coal. Source: BEIS energy trends, BM Reports and Carbon Brief analysis. Chart by Carbon Brief using Highcharts.
There were also four months in 2019 when renewables generated more of the UK’s electricity than fossil fuels: March, August, September and December. The first ever such month came in September 2018 and more are certain to follow.

National Grid, which manages Great Britain’s high-voltage electricity transmission network, is aiming to be able to run the system without fossil fuels by 2025, at least for short periods. At present, it sometimes has to ask windfarm operators to switch off and gas plants to start running in order to keep the electricity grid stable.

Note that biomass accounted for 11% of UK electricity generation in 2019, nearly a third of the total from all renewables. Some two-thirds of the biomass output is from “plant biomass”, primarily wood pellets burnt at Lynemouth in Northumberland and the Drax plant in Yorkshire. The remainder was from an array of smaller sites based on landfill gas, sewage gas or anaerobic digestion.

The CCC says the UK should “move away” from large-scale biomass power plants, once existing subsidy contracts for Drax and Lynemouth expire in 2027.

Using biomass to generate electricity is not zero-carbon and in some circumstances could lead to higher emissions than from fossil fuels. Moreover, there are more valuable uses for the world’s limited supply of biomass feedstock, the CCC says, including carbon sequestration and hard-to-abate sectors with few alternatives.

Methodology
The figures in the article are from Carbon Brief analysis of data from BEIS Energy Trends chapter 5 and chapter 6, as well as from BM Reports. The figures from BM Reports are for electricity supplied to the grid in Great Britain only and are adjusted to include Northern Ireland.

In Carbon Brief’s analysis, the BM Reports numbers are also adjusted to account for electricity used by power plants on site and for generation by plants not connected to the high-voltage national grid. This includes many onshore windfarms, as well as industrial gas combined heat and power plants and those burning landfill gas, waste or sewage gas.

By design, the Carbon Brief analysis is intended to align as closely as possible to the official government figures on electricity generated in the UK, reported in BEIS Energy Trends table 5.1.

Briefly, the raw data for each fuel is in most cases adjusted with a multiplier, derived from the ratio between the reported BEIS numbers and unadjusted figures for previous quarters.

Carbon Brief’s method of analysis has been verified against published BEIS figures using “hindcasting”. This shows the estimates for total electricity generation from fossil fuels or renewables to have been within ±3% of the BEIS number in each quarter since Q4 2017. (Data before then is not sufficient to carry out the Carbon Brief analysis.)

For example, in the second quarter of 2019, a Carbon Brief hindcast estimates gas generation at 33.1TWh, whereas the published BEIS figure was 34.0TWh. Similarly, it produces an estimate of 27.4TWh for renewables, against a BEIS figure of 27.1TWh.

National Grid recently shared its own analysis for electricity in Great Britain during 2019 via its energy dashboard, which differs from Carbon Brief’s figures.

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UAE Barakah Nuclear Plant connects Unit 1 to the grid, supplying clean electricity, nuclear baseload power, and lower carbon emissions, with IAEA oversight, FANR regulation, and South Korea collaboration, supporting energy security and economic diversification.

Key Points

The UAE Barakah Nuclear Plant is a four-reactor project delivering clean baseload power and reducing CO2.

✅ Unit 1 online; four reactors to supply 25% of UAE electricity

✅ Cuts 21 million tons CO2 annually; clean baseload for grid

✅ FANR-licensed; IAEA and WANO oversight ensure safety

Unit 1 of the UAE’s Barakah plant — the Arab world’s first nuclear energy plant in the region — has connected to the national power grid, in a historic moment enabling it to provide cleaner electricity to millions of residents and help reduce the oil-rich country’s reliance on fossil fuels. 

“This is a major milestone, we’ve been planning for this for the last 12 years now,” Mohamed Al Hammadi, CEO of Emirates Nuclear Energy Corporation (ENEC), told CNBC’s Dan Murphy in an exclusive interview ahead of the news.

Unit 1, which has reached 100% power as it steps closer to commercial operations, is the first of what will eventually be four reactors, which when fully operational are expected to provide 25% of the UAE’s electricity and reduce its carbon emissions by 21 million tons a year, according to ENEC. That’s roughly equivalent to the carbon emissions of 3.2 million cars annually.

The Gulf country of nearly 10 million is the newest member of a group of now 31 countries running nuclear power operations. It’s also the first new country to launch a nuclear power plant in three decades, the last being China’s nuclear energy program in 1990.

“The UAE has been growing from an electricity demand standpoint,”  Al Hammadi said. “That’s why we are trying to meet the demand (and) at the same time have it with less carbon emissions.”

The UAE’s electricity mix will continue to include gas and renewable energy, with “the baseload from nuclear,” including emerging next-gen nuclear designs, the CEO added, which he described as a “safe, clean and reliable source of electricity” for the country.

The project is also providing “highly compensated jobs” for the Emiratis and will introduce new industries for the country’s economy, Al Hammadi said. The company noted that it has awarded roughly 2,000 contracts worth more than $4.8 billion for local companies.

International collaboration
The UAE’s nuclear watchdog FANR, the Federal Authority for Nuclear Regulation, granted the operating license for Unit 1 in February, after an extensive inspection process to ensure the plant’s compliance with regulatory requirements. The license is expected to last 60 years. The program also involved collaboration with external bodies including the U.N.’s International Atomic Energy Agency (IAEA) and the government of South Korea, and its pre-start-up review was completed in January by the World Association of Nuclear Operators (WANO). The WANO and the IAEA have conducted over 40 inspection and review missions at Barakah.   

But the project has its critics, particularly some experts from the independent Nuclear Consulting Group non-profit, who have expressed concern about Barakah’s safety features and potential environmental risks.  

In response, ENEC said the “adherence to the highest standards of safety, quality and security is deeply embedded within the fabric of the UAE Peaceful Nuclear Energy Program.”

“The Barakah Plant meets all national and international regulatory requirements and standards for nuclear safety,” a  company statement said. It added that the reactor design had been certified by the Korea Institute of Nuclear Safety, FANR and the US-based Nuclear Regulatory Commission, “demonstrating the robustness of this design for safety and operating reliability.”

Worries of regional proliferation 
The achievement for the UAE is particularly significant given tensions in the wider region over nuclear proliferation. 

Some observers have warned of a regional arms race, though the UAE already partakes in what nuclear energy experts call the “gold standard” of civilian nuclear partnerships: The U.S.-UAE 123 Agreement for Peaceful Civilian Nuclear Energy Cooperation. It allows the UAE to receive nuclear materials, equipment and know-how from the U.S. while precluding it from developing dual-use technology by barring uranium enrichment and fuel reprocessing, the processes required for building a bomb.

By contrast, nearby Iran has suspended its compliance to the multilateral 2015 deal that regulated its nuclear power development and many fear its approach toward bomb-making capability. Meanwhile, Saudi Arabia has voiced its desire to develop a nuclear energy program without adhering to a 123 agreement.

And most recently, in the wake of a historic deal that has seen the UAE become the first Gulf country to normalize relations with Israel, Iran responded by warning the agreement would bring a “dangerous future” for the Emirati government. 

But ENEC and UAE officials emphasize the program’s commitment to safety, transparency and international cooperation, and its necessity for meeting growing electricity demand by cleaner means. 

“The nuclear industry is growing, with milestones around the world being reached, and the UAE is no exception. We are pursuing our electricity demand to meet that in a safe, secure and stable manner, and also doing it in an environmentally friendly way,” Al Hammadi said.

“Having four reactors that will provide 25% of electricity for the nation and will avoid us emitting 21 million tons of CO2 on an annual basis, as part of a broader green industrial revolution approach, is a very serious step to take — and the UAE is not talking about it, it is doing it, and we are reaping the benefits of it as we speak right now.”

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