UK watchdog to review some gas and electricity transmission projects

By Reuters


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Britain's electricity regulator has launched a review into some electricity and gas transmission projects planned by grid operator National Grid.

The regulator Ofgem, sets the amount of cash given to National Grid to maintain and improve the country's gas and electricity networks.

It said the review was needed to establish whether certain energy transmission projects were still needed and required funding.

"Following our consultation in November, Ofgem has today decided to launch a mid-period review into the 2013-2021 price controls which will be limited to National Grid Electricity Transmission and National Grid Gas Transmission," Ofgem said on Thursday.

Ofgem said since the review was targeted to a few projects it would not be re-opening the whole price control package.

"Ofgem's mid-period review announcement this morning should not concern investors, as it is focussed on reviewing 3 specific projects in Transmission," analysts at Bernsteil said in a research note.

"It is not a re-opening of the price control to change crucial aspects such as the allowed cost of capital," they added.

Gas and electricity network operator National Grid made 2.9 billion pounds $4.5 billion in pretax profit in the financial year ending March 31 2015.

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Sens. Wyden, Merkley Introduce Bill to Ensure More Wildfire Resilient Power Grid

Wildfire Resilient Power Grid Act proposes DOE grants for utility companies to fund wildfire mitigation, grid resilience upgrades, undergrounding power lines, fast-tripping protection, weather monitoring, and vegetation management, prioritizing rural electric cooperatives.

 

Key Points

A federal bill funding utility wildfire mitigation and grid hardening via DOE grants, prioritizing rural utilities.

✅ $1B DOE matching grants for grid upgrades and wildfire mitigation.

✅ Prioritizes rural utilities; supports undergrounding and hardening.

✅ Funds fast-tripping protection, weather stations, vegetation management.

 

U.S. Sens. Ron Wyden and Jeff Merkley today introduced new legislation, amid transmission barriers that persist, to incentivize utility companies to do more to reduce wildfire risks as aging power infrastructure ignite wildfires in Oregon and across the West.

Wyden and Merkley's Wildfire Resilient Power Grid Act of 2020 would ensure power companies do their part to reduce the risk of wildfires through power system upgrades, even as California utility spending crackdown seeks accountability, such as the undergrounding of power lines, fire safety equipment installation and proper vegetation management.

"First and foremost, this is a public safety issue. Fire after fire ignited this summer because the aging power grid could not withstand a major windstorm during the season's hottest and driest days," Wyden said. "Many utility companies are already working to improve the resiliency of their power grid, but the sheer costs of these investments must not come at the expense of equitable regulation for rural utility customers. Congress must do all that it can to stop the catastrophic wildfires decimating the West, and that means improving rural infrastructure. By partnering with utilities around the country, we can increase wildfire mitigation efforts at a modest cost -- a fire prevention investment that will pay dividends by saving lives, homes and businesses."

"When this year's unprecedented wildfire event hit, I drove hundreds of miles across our state to see the damage firsthand and to hear directly from impacted communities, so that I could go back to D.C. and work for the solutions they need," said Merkley. "What I saw was apocalyptic--and we have to do everything we can to reduce the risk of this happening again. That means we have to work with our power companies to get critical upgrades and safety investments into place as quickly as possible."

The Wildfire Resilient Power Grid Act of 2020:

* Establishes a $1 billion-per-year matching grant program for power companies through the Department of Energy, even as ACORE opposed DOE subsidy proposals, to reduce the risk of power lines and grid infrastructure causing wildfires.

* Gives special priority to smaller, rural electric companies to ensure mitigation efforts are targeted to forested rural areas.

* Promotes proven methods for reducing wildfire risks, including undergrounding of lines, installing fast-tripping protection systems, and constructing weather monitoring stations to respond to electrical system fire risks.

* Provides for hardening of overhead power lines and installation of fault location equipment where undergrounding of power lines is not a favorable option.

* Ensures fuels management activities of power companies are carried out in accordance with Federal, State, and local laws and regulations.

* Requires power companies to have "skin in the game" by making the program a 1-to-1 matching grant, with an exception for smaller utilities where the matching requirement is one third of the grant.

* Delivers accountability on the part of utilities and the Department of Energy by generating a report every two years on efforts conducted under the grant program.

Portland General Electric President and CEO Maria Pope: "We appreciate Senator Wyden's and Senator Merkley's leadership in proposing legislation to provide federal funding that will help protect Oregon from devastating wildfires. When passed, this will help make Oregon's electric system safer, faster, without increasing customer prices. That is especially important given the economy and hotter, drier summers and longer wildfire seasons that Oregon will continue to face."

Lane County Commission Chair Heather Butch: " In a matter of hours, the entire Lane County community of Blue River was reduced to ashes by the Holiday Farm Fire. Since the moment I first toured that devastation I've been committed to building it back better. I applaud Senators Wyden and Merkley for drafting the Wildfire Resilient Power Grid Act, as it could well provide the path towards meeting this important goal. Moreover, the resultant programs will better protect rural communities from the increasing dangers of wildfires through a number of preventative measures that would otherwise be difficult to implement."

Linn County Commissioner Roger Nyquist: "This legislation is a smart strategic investment for the future safety of our residents as well as the economic vitality of our community."

Marion County Commissioner Kevin Cameron: "After experiencing a traumatic evacuation during the Beachie Creek and Lion's Head wild fires, I understand the need to strengthen the utility Infrastructure. The improvements resulting from Senator Wyden and Merkley's bill will reduce disasters in the future, but improve everyday reliability for our citizens who live, work and protect the environment in potential wildfire areas."

Edison Electric Institute President Tom Kuhn: "EEI thanks Senator Wyden and Senator Merkley for their leadership in introducing the Wildfire Resilient Power Grid Act. This bill will help support and accelerate projects already planned and underway to enhance energy grid resiliency and mitigate the risk of wildfire damage to power lines. Electric companies across the country are committed to working with our government partners and other stakeholders on preparation and mitigation efforts that combat the wildfire threat and on the rapid deployment of technology solutions, including aggregated DERs at FERC, that address wildfire risks, while still maintaining the safe, reliable, and affordable energy we all need."

Oregon Rural Electric Cooperative Association Executive Director Ted Case: "Oregon's electric cooperatives support the Wildfire Resilient Power Grid Act and appreciate Senator Wyden's and Senator Merkley's leadership and innovative approach to wildfire mitigation, particularly for small, rural utilities. This legislation includes targeted assistance that will help us to continue to provide affordable, reliable and safe electricity to over 500,000 Oregonians."

Sustainable Northwest Director of Government Affairs & Program Strategy Dylan Kruse: "In recent years, the West has seen too many wildfires originate due to poorly maintained or damaged electric utility transmission and distribution infrastructure. This legislation plays an important role to ensure that power lines do not contribute to wildfire starts, while providing safe and reliable power to communities during wildfire events. Utilities must, even as Wyoming clean energy bill proposals emerge, live up to their legal requirements to maintain their infrastructure, but this bill provides welcome resources to expedite and prioritize risk reduction, while preventing cost increases for ratepayers."

Oregon Wild Wilderness Program Manager Erik Fernandez: "2020 taught Oregon the lesson that California learned in the Paradise Fire, and SCE wildfire lawsuits that followed underscore the stakes. Addressing the risk of unnaturally caused powerline fires is an increasingly important critical task. I appreciate Senator Ron Wyden's efforts to protect our homes and communities from powerline fires."

 

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Carbon capture: How can we remove CO2 from the atmosphere?

CO2 Removal Technologies address climate change via negative emissions, including carbon capture, reforestation, soil carbon, biochar, BECCS, DAC, and mineralization, helping meet Paris Agreement targets while managing costs, land use, and infrastructure demands.

 

Key Points

Methods to extract or sequester atmospheric CO2, combining natural and engineered approaches to limit warming.

✅ Includes reforestation, soil carbon, biochar, BECCS, DAC, mineralization

✅ Balances climate goals with costs, land, energy, and infrastructure

✅ Key to Paris Agreement targets under 1.5-2.0 °C warming

 

The world is, on average, 1.1 degrees Celsius warmer today than it was in 1850. If this trend continues, our planet will be 2 – 3 degrees hotter by the end of this century, according to the Intergovernmental Panel on Climate Change (IPCC).

The main reason for this temperature rise is higher levels of atmospheric carbon dioxide, which cause the atmosphere to trap heat radiating from the Earth into space. Since 1850, the proportion of CO2 in the air has increased, with record greenhouse gas concentrations documented, from 0.029% to 0.041% (288 ppm to 414 ppm).

This is directly related to the burning of coal, oil and gas, which were created from forests, plankton and plants over millions of years. Back then, they stored CO2 and kept it out of the atmosphere, but as fossil fuels are burned, that CO2 is released. Other contributing factors include industrialized agriculture and slash-and-burn land clearing techniques, and emissions from SF6 in electrical equipment are also concerning today.

Over the past 50 years, more than 1200 billion tons of CO2 have been emitted into the planet's atmosphere — 36.6 billion tons in 2018 alone, though global emissions flatlined in 2019 before rising again. As a result, the global average temperature has risen by 0.8 degrees in just half a century.


Atmospheric CO2 should remain at a minimum
In 2015, the world came together to sign the Paris Climate Agreement which set the goal of limiting global temperature rise to well below 2 degrees — 1.5 degrees, if possible.

The agreement limits the amount of CO2 that can be released into the atmosphere, providing a benchmark for the global energy transition now underway. According to the IPCC, if a maximum of around 300 billion tons were emitted, there would be a 50% chance of limiting global temperature rise to 1.5 degrees. If CO2 emissions remain the same, however, the CO2 'budget' would be used up in just seven years.

According to the IPCC's report on the 1.5 degree target, negative emissions are also necessary to achieve the climate targets.


Using reforestation to remove CO2
One planned measure to stop too much CO2 from being released into the atmosphere is reforestation. According to studies, 3.6 billion tons of CO2 — around 10% of current CO2 emissions — could be saved every year during the growth phase. However, a study by researchers at the Swiss Federal Institute of Technology, ETH Zurich, stresses that achieving this would require the use of land areas equivalent in size to the entire US.

Young trees at a reforestation project in Africa (picture-alliance/OKAPIA KG, Germany)
Reforestation has potential to tackle the climate crisis by capturing CO2. But it would require a large amount of space


More humus in the soil
Humus in the soil stores a lot of carbon. But this is being released through the industrialization of agriculture. The amount of humus in the soil can be increased by using catch crops and plants with deep roots as well as by working harvest remnants back into the ground and avoiding deep plowing. According to a study by the German Institute for International and Security Affairs (SWP) on using targeted CO2 extraction as a part of EU climate policy, between two and five billion tons of CO2 could be saved with a global build-up of humus reserves.


Biochar shows promise
Some scientists see biochar as a promising technology for keeping CO2 out of the atmosphere. Biochar is created when organic material is heated and pressurized in a zero or very low-oxygen environment. In powdered form, the biochar is then spread on arable land where it acts as a fertilizer. This also increases the amount of carbon content in the soil. According to the same study from the SWP, global application of this technology could save between 0.5 and two billion tons of CO2 every year.


Storing CO2 in the ground
Storing CO2 deep in the Earth is already well-known and practiced on Norway's oil fields, for example. However, the process is still controversial, as storing CO2 underground can lead to earthquakes and leakage in the long-term. A different method is currently being practiced in Iceland, in which CO2 is sequestered into porous basalt rock to be mineralized into stone. Both methods still require more research, however, with new DOE funding supporting carbon capture, utilization, and storage.

Capturing CO2 to be held underground is done by using chemical processes which effectively extract the gas from the ambient air, and some researchers are exploring CO2-to-electricity concepts for utilization. This method is known as direct air capture (DAC) and is already practiced in other parts of Europe.  As there is no limit to the amount of CO2 that can be captured, it is considered to have great potential. However, the main disadvantage is the cost — currently around €550 ($650) per ton. Some scientists believe that mass production of DAC systems could bring prices down to €50 per ton by 2050. It is already considered a key technology for future climate protection.

The inside of a carbon capture facility in the Netherlands (RWE AG)
Carbon capture facilities are still very expensive and take up a huge amount of space

Another way of extracting CO2 from the air is via biomass. Plants grow and are burned in a power plant to produce electricity. CO2 is then extracted from the exhaust gas of the power plant and stored deep in the Earth, with new U.S. power plant rules poised to test such carbon capture approaches.

The big problem with this technology, known as bio-energy carbon capture and storage (BECCS) is the huge amount of space required. According to Felix Creutzig from the Mercator Institute on Global Commons and Climate Change (MCC) in Berlin, it will therefore only play "a minor role" in CO2 removal technologies.


CO2 bound by rock minerals
In this process, carbonate and silicate rocks are mined, ground and scattered on agricultural land or on the surface water of the ocean, where they collect CO2 over a period of years. According to researchers, by the middle of this century it would be possible to capture two to four billion tons of CO2 every year using this technique. The main challenges are primarily the quantities of stone required, and building the necessary infrastructure. Concrete plans have not yet been researched.


Not an option: Fertilizing the sea with iron
The idea is use iron to fertilize the ocean, thereby increasing its nuturient content, which would allow plankton to grow stronger and capture more CO2. However, both the process and possible side effects are very controversial. "This is rarely treated as a serious option in research," concludes SWP study authors Oliver Geden and Felix Schenuit.

 

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Egypt Plans Power Link to Saudis in $1.6 Billion Project

Egypt-Saudi Electricity Interconnection enables cross-border power trading, 3,000 MW capacity, and peak-demand balancing across the Middle East, boosting grid stability, reliability, and energy security through an advanced electricity network, interconnector infrastructure, and GCC grid integration.

 

Key Points

A 3,000 MW grid link letting Egypt and Saudi Arabia trade power, balance peak demand, and boost regional reliability.

✅ $1.6B project; Egypt invests ~$600M; 2-year construction timeline

✅ 3,000 MW capacity; peak-load shifting; cross-border reliability

✅ Links GCC grid; complements Jordan and Libya interconnectors

 

Egypt will connect its electricity network to Saudi Arabia, joining a system in the Middle East that has allowed neighbors to share power, similar to the Scotland-England subsea project that will bring renewable power south.

The link will cost about $1.6 billion, with Egypt paying about $600 million, Egypt’s Electricity Minister Mohamed Shaker said Monday at a conference in Cairo, as the country pursues a smart grid transformation to modernize its network. Contracts to build the network will be signed in March or April, and construction is expected to take about two years, he said. In times of surplus, Egypt can export electricity and then import power during shortages.

"It will enable us to benefit from the difference in peak consumption,” Shaker said. “The reliability of the network will also increase.”

Transmissions of electricity across borders in the Gulf became possible in 2009, when a power grid connected Qatar, Kuwait, Saudi Arabia and Bahrain, a dynamic also seen when Ukraine joined Europe's grid under emergency conditions. The aim of the grid is to ensure that member countries of the Gulf Cooperation Council can import power in an emergency. Egypt, which is not in the GCC, may have been able to avert an electricity shortage it suffered in 2014 if the link with Saudi Arabia existed at the time, Shaker said.

The link with Saudi Arabia should have a capacity of 3,000 megawatts, he said. Egypt has a 450-megawatt link with Jordan and one with Libya at 200 megawatts, the minister said. Egypt will seek to use its strategic location to connect power grids in Asia, where the Philippines power grid efforts are raising standards, and elsewhere in Africa, he said.

In 2009, a power grid linked Qatar, Kuwait, Saudi Arabia and Bahrain, allowing the GCC states to transmit electricity across borders, much like proposals for a western Canadian grid that aim to improve regional reliability. 

 

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Bomb Cyclone Leaves Half a Million Without Power in Western Washington

Western Washington Bomb Cyclone unleashed gale-force winds, torrential rain, and coastal flooding, causing massive power outages from Seattle to Tacoma; storm surge, downed trees, and blocked roads hindered emergency response and infrastructure repairs.

 

Key Points

A rapidly deepening storm with severe winds, rain, flooding, and major power outages across Western Washington.

✅ Rapid barometric pressure drop intensified the system

✅ Gale-force winds downed trees and power lines

✅ Coastal flooding and storm surge disrupted transport

 

A powerful "bomb cyclone" recently hit Western Washington, causing widespread destruction across the region. The intense storm left more than half a million residents without power, similar to B.C. bomb cyclone outages seen to the north, with outages affecting communities from Seattle to Olympia. This weather phenomenon, marked by a rapid drop in atmospheric pressure, unleashed severe wind gusts, heavy rain, and flooding, causing significant disruption to daily life.

The bomb cyclone, which is a rapidly intensifying storm, typically features a sharp drop in barometric pressure over a short period of time. This creates extreme weather conditions, including gale-force winds, torrential rain, and coastal flooding, as seen during California storm impacts earlier in the season. In Western Washington, the storm struck just as the region was beginning to prepare for the winter season, catching many off guard with its strength and unpredictability.

The storm's impact was immediately felt as high winds downed trees, power lines, and other infrastructure. By the time the worst of the storm had passed, utility companies had reported widespread power outages, with more than 500,000 customers losing electricity. The outages were particularly severe in areas like Seattle, Tacoma, and the surrounding communities. Crews worked tirelessly in difficult conditions to restore power, but many residents faced extended outages, underscoring US grid climate vulnerabilities that complicate recovery efforts, with some lasting for days due to the scope of the damage.

The power outages were accompanied by heavy rainfall, leading to localized flooding. Roads were inundated, making it difficult for first responders and repair crews to reach affected areas. Emergency services were stretched thin as they dealt with downed trees, blocked roads, and flooded neighborhoods. In some areas, floodwaters reached homes, forcing people to evacuate. In addition, several schools were closed, and public transportation services were temporarily halted, leaving commuters stranded and businesses unable to operate.

As the storm moved inland, its effects continued to be felt. Western Washington’s coastal regions were hammered by high waves and storm surges, further exacerbating the damage. The combination of wind and rain also led to hazardous driving conditions, prompting authorities to advise people to stay off the roads unless absolutely necessary.

While power companies worked around the clock to restore electricity, informed by grid resilience strategies that could help utilities prepare for future events, challenges persisted. Fallen trees and debris blocked access to repair sites, and the sheer number of outages made it difficult for crews to restore power quickly. Some customers were left in the dark for days, forced to rely on generators, candles, and other makeshift solutions. The storm's intensity left a trail of destruction, requiring significant resources to address the damages and rebuild critical infrastructure.

In addition to the immediate impacts on power and transportation, the bomb cyclone raised important concerns about climate change and the increasing frequency of extreme weather events. Experts note that storms like these are becoming more common, with rapid intensification leading to more severe consequences and compounding pressures such as extreme-heat electricity costs for households. As the planet warms, scientists predict that such weather systems will continue to grow in strength, posing greater challenges to cities and regions that are not always prepared for such extreme events.

In the aftermath of the storm, local governments and utility companies faced the daunting task of not only restoring services but also assessing the broader impact of the storm on communities. Many areas, especially those hit hardest by flooding and power outages, will require substantial recovery efforts. The devastation of the bomb cyclone highlighted the vulnerability of infrastructure in the face of rapidly changing weather patterns and water availability, as seen in BC Hydro drought adaptations nearby, and reinforced the need for greater resilience in the face of future storms.

The storm's impact on the Pacific Northwest is a reminder of the power of nature and the importance of preparedness. As Western Washington recovers, there is a renewed focus on strengthening infrastructure, including expanded renewable electricity to diversify supply, improving emergency response systems, and ensuring that communities are better equipped to handle the challenges posed by increasingly severe weather events. For now, residents remain hopeful that the worst is behind them and are working together to rebuild and prepare for whatever future storms may bring.

The bomb cyclone has left an indelible mark on Western Washington, but it also serves as a call to action for better preparedness, more robust infrastructure, and a greater focus on combating climate change to mitigate the impact of such extreme weather in the future.

 

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A new material made from carbon nanotubes can generate electricity by scavenging energy from its environment

Carbon Nanotube Solvent Electricity enables wire-free electrochemistry as organic solvents like acetonitrile pull electrons, powering alcohol oxidation and packed bed reactors, energy harvesting, and micro- and nanoscale robots via redox-driven current.

 

Key Points

Solvent-driven electron extraction from carbon nanotube particles generates current for electrochemistry.

✅ 0.7 V per particle via solvent-induced electron flow

✅ Packed bed reactors drive alcohol oxidation without wires

✅ Scalable for micro- and nanoscale robots; energy harvesting

 

MIT engineers have discovered a new way of generating electricity, alongside advances in renewable power at night that broaden what's possible, using tiny carbon particles that can create a current simply by interacting with liquid surrounding them.

The liquid, an organic solvent, draws electrons out of the particles, generating a current, unlike devices based on a cheap thermoelectric material that rely on heat, that could be used to drive chemical reactions or to power micro- or nanoscale robots, the researchers say.

"This mechanism is new, and this way of generating energy is completely new," says Michael Strano, the Carbon P. Dubbs Professor of Chemical Engineering at MIT. "This technology is intriguing because all you have to do is flow a solvent through a bed of these particles. This allows you to do electrochemistry, but with no wires."

In a new study describing this phenomenon, the researchers showed that they could use this electric current to drive a reaction known as alcohol oxidation—an organic chemical reaction that is important in the chemical industry.

Strano is the senior author of the paper, which appears today in Nature Communications. The lead authors of the study are MIT graduate student Albert Tianxiang Liu and former MIT researcher Yuichiro Kunai. Other authors include former graduate student Anton Cottrill, postdocs Amir Kaplan and Hyunah Kim, graduate student Ge Zhang, and recent MIT graduates Rafid Mollah and Yannick Eatmon.

Unique properties
The new discovery grew out of Strano's research on carbon nanotubes—hollow tubes made of a lattice of carbon atoms, which have unique electrical properties. In 2010, Strano demonstrated, for the first time, that carbon nanotubes can generate "thermopower waves." When a carbon nanotube is coated with layer of fuel, moving pulses of heat, or thermopower waves, travel along the tube, creating an electrical current that exemplifies turning thermal energy into electricity in nanoscale systems.

That work led Strano and his students to uncover a related feature of carbon nanotubes. They found that when part of a nanotube is coated with a Teflon-like polymer, it creates an asymmetry, distinct from conventional thermoelectric materials approaches, that makes it possible for electrons to flow from the coated to the uncoated part of the tube, generating an electrical current. Those electrons can be drawn out by submerging the particles in a solvent that is hungry for electrons.

To harness this special capability, the researchers created electricity-generating particles by grinding up carbon nanotubes and forming them into a sheet of paper-like material. One side of each sheet was coated with a Teflon-like polymer, and the researchers then cut out small particles, which can be any shape or size. For this study, they made particles that were 250 microns by 250 microns.

When these particles are submerged in an organic solvent such as acetonitrile, the solvent adheres to the uncoated surface of the particles and begins pulling electrons out of them.

"The solvent takes electrons away, and the system tries to equilibrate by moving electrons," Strano says. "There's no sophisticated battery chemistry inside. It's just a particle and you put it into solvent and it starts generating an electric field."

Particle power
The current version of the particles can generate about 0.7 volts of electricity per particle. In this study, the researchers also showed that they can form arrays of hundreds of particles in a small test tube. This "packed bed" reactor, unlike thin-film waste-heat harvesters for electronics, generates enough energy to power a chemical reaction called an alcohol oxidation, in which an alcohol is converted to an aldehyde or a ketone. Usually, this reaction is not performed using electrochemistry because it would require too much external current.

"Because the packed bed reactor is compact, it has more flexibility in terms of applications than a large electrochemical reactor," Zhang says. "The particles can be made very small, and they don't require any external wires in order to drive the electrochemical reaction."

In future work, Strano hopes to use this kind of energy generation to build polymers using only carbon dioxide as a starting material. In a related project, he has already created polymers that can regenerate themselves using carbon dioxide as a building material, in a process powered by solar energy and informed by devices that generate electricity at night as a complement. This work is inspired by carbon fixation, the set of chemical reactions that plants use to build sugars from carbon dioxide, using energy from the sun.

In the longer term, this approach could also be used to power micro- or nanoscale robots. Strano's lab has already begun building robots at that scale, which could one day be used as diagnostic or environmental sensors. The idea of being able to scavenge energy from the environment, including approaches that produce electricity 'out of thin air' in ambient conditions, to power these kinds of robots is appealing, he says.

"It means you don't have to put the energy storage on board," he says. "What we like about this mechanism is that you can take the energy, at least in part, from the environment."

 

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N.S. joins Western Climate Initiative for tech support for emissions plan

Nova Scotia Cap-and-Trade Program joins Western Climate Initiative to leverage emissions trading IT systems, track allowances, and manage compliance, while setting in-province caps, carbon pricing signals, and third-party verified reporting for industrial and fuel suppliers.

 

Key Points

A provincial emissions trading system using WCI services to cap GHGs, track allowances, and enforce verified compliance.

✅ Uses WCI IT system to manage allowances and registry

✅ Initial trading limited to in-province participants

✅ Third-party verification and annual reporting deadlines

 

Nova Scotia is yet to set targets for its new cap and trade regime to reduce greenhouse gases, but the province announced Monday that it has joined the Western Climate Initiative Inc. -- a non-profit corporation formed to provide administrative and technical services to states and provinces with emissions trading programs.

Environment Minister Iain Rankin said joining the initiative would allow the province to use its IT system to manage and track its new cap and trade program.

Rankin said the province can join without trading greenhouse gas emission allowances with other jurisdictions -- California, Quebec, and Ontario are currently linked through the program, with Hydro-Québec's U.S. sales highlighting cross-border dynamics. Nova Scotia currently has no plans to trade outside the province as it works on emissions caps Rankin said will be ready sometime in June.

#google#

Nova Scotia is yet to set targets for its new cap and trade regime to reduce greenhouse gases, but the province announced Monday that it has joined the Western Climate Initiative Inc. -- a non-profit corporation formed to provide administrative and technical services to states and provinces with emissions trading programs.

Environment Minister Iain Rankin said joining the initiative would allow the province to use its IT system to manage and track its new cap and trade program.

Rankin said the province can join without trading greenhouse gas emission allowances with other jurisdictions -- California, Quebec, and Ontario are currently linked through the program. Nova Scotia currently has no plans to trade outside the province as it works on emissions caps Rankin said will be ready sometime in June.

"By keeping our system internal it ensures that our greenhouse gas reductions are happening within our province," said Rankin. "But we do have that opportunity (to join) and if there are new entrants or we need more access to credits then that may shift our strategy."

The use of the system will cost Nova Scotia about US$314,000 for 2018-19, with an annual cost in subsequent years of about US$228,000 or more, if the province requests modifications.

"If we were to do something like that internally we would have to build a full database and hire more people, so this was an obvious choice for us," said Rankin.

Nova Scotia has already met the national reduction target of 30 per cent below 2005 levels and says it's on track to have 40 per cent of electricity generation from renewables by 2020, underscoring how cleaning up Canada's electricity supports climate pledges.

Stephen Thomas, energy campaign coordinator for the Ecology Action Centre, called the province's move an "important small step," stressing the importance of using the same administrative rules as the other jurisdictions involved.

But Thomas said Nova Scotia should go further and trade emissions with California, Quebec, and Ontario, and also put a price on carbon by auctioning credits as they do.

Thomas said Nova Scotia's system stands to be volatile because of the smaller number of participants -- about 20 including Nova Scotia Power, Northern Pulp, Lafarge, and large oil and gasoline companies such as ExxonMobil, Imperial and Irving.

"It's very likely to favour Nova Scotia Power as the largest single emitter with the most credits to sell here, and that would change if we had a linked system, at a time when Canada will need more electricity to hit net-zero according to the IEA," Thomas said.

He said it's important to have a linked system and a regional approach in Atlantic Canada, which has more emissions per person and more emissions per GDP than places like Ontario, Quebec and California, and where policies like Newfoundland's rate reduction plan can influence electricity strategy.

"Reducing emissions, because we are so emissions-intensive here, is a little bit cheaper," said Thomas. "So it's possible that Ontario, Quebec and California could pay Nova Scotia to reduce its emissions."

Under its program, Nova Scotia requires industrial facilities generating 50,000 tonnes or more of greenhouse gas emissions per year to report emissions.

Regulations also cover petroleum product suppliers that import or produce 200 litres of fuel or more per year for consumption and natural gas distributors whose products produce at least 10,000 tonnes of greenhouse gas emissions a year.

Companies were to have reported to the Environment Department by May 1 but Rankin said the deadline has been pushed back to June 1, a deadline that was to be followed in subsequent years in any event. Reports must be verified by a third party by Sept. 1 every year.

The Liberal government passed enabling legislation for cap and trade last fall.

As for the upcoming emissions caps, Rankin isn't tipping the province's hand yet, even as B.C.'s 2050 targets face a shortfall in some forecasts.

"Those caps will recognize the investments that have already been made and therefore will be the most cost-effective program that we can put together to meet the federal requirement," he said.

 

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