Markets hit OPG investments hard

By Toronto Star


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Ontario Power Generation lost $190 million during its third quarter after equity investments in one of its nuclear funds got hammered in the stock market – and analysts say the worst is yet to come.

The fund, which is supposed to cover the cost of decommissioning old nuclear plants, was created back in 2003 as part of new licensing criteria required by Canada's nuclear safety agency. Another fund that pays for the cost of managing nuclear fuel waste was also created at the time, and OPG pays into both funds annually.

Pierre Charlebois, chief operating officer of OPG, said in a conference call that otherwise good performance from the company's nuclear and hydroelectric generating stations was "obscured by the impact of the slumping financial markets."

The decommissioning fund, as of Sept. 30, was value at $4.624 billion and is invested in a "global diversified portfolio of equities and fixed-income securities," he said.

The fund has lost $448 million since the beginning of the year.

Overall, OPG had a profit of $113 million in the same period a year ago, but the drop in the value of the fund turned that into a $142 million loss in its third quarter.

Tom Adams, an independent energy consultant, said the fund's falling value so far this year is just the tip of the iceberg in light of the stock-market carnage seen this fall.

"October and November were much worse than we've seen in September back to July," Adams said. "The statements we're seeing now are very likely just the beginning of a story we'll see unfold by year's end."

Charlebois said the liabilities for future decommissioning and waste management to date add up to $11.1 billion, up from $8.5 billion three years ago. But he emphasized that the first major payouts from the funds aren't expected for another 50 years and that any losses will be recovered over the long term.

The fund managing waste fuel, currently valued at $4.792 billion, has grown. The province guarantees it a rate of return of 3.25 per cent annually above inflation. Both funds together total $9.416 billion.

Adams said the decline in the decommissioning fund still represents a real loss of purchasing power for OPG, which could argue it needs a price hike on power from its unregulated power assets – mainly natural gas plants and small hydroelectric facilities – once a cap on those rates expires at the end of 2009.

OPG said it generated 27.3 terawatt-hours of electricity in the third quarter, up from 26.2 terawatt-hours a year earlier. Hydroelectric production jumped 24 per cent year-over-year to 8.9 terawatts, while nuclear power production rose 13 per cent to 12.2 terawatt-hours because of improved performance from Pickering A and Darlington stations.

The increase in hydroelectric and nuclear resulted in cleaner air in Ontario. Fossil-fuel generation from coal and natural gas fell about 25 per cent to 6.2 terawatt-hours. Charlebois said falling electricity demand also made the province less reliant on fossil fuel power.

OPG disclosed that fractured rock conditions at its Niagara tunnel project, which involves drilling under the St. David's gorge, continues to create problems. The contract for the project is being renegotiated and is "expected to have a significant impact on project cost and schedule."

Charlebois said full details aren't expected until the first quarter of 2009, but he still defended the project, even at higher costs.

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Scientists Built a Genius Device That Generates Electricity 'Out of Thin Air'

Air-gen Protein Nanowire Generator delivers clean energy by harvesting ambient humidity via Geobacter-derived conductive nanowires, generating continuous hydrovoltaic electricity through moisture gradients, electrodes, and proton diffusion for sustainable, low-waste power in diverse climates.

 

Key Points

A device using Geobacter protein nanowires to harvest humidity, producing continuous DC power via proton diffusion.

✅ 7 micrometer film between electrodes adsorbs water vapor.

✅ Output: ~0.5 V, 17 uA/cm2; stack units to scale power.

✅ Geobacter optimized via engineered E. coli for mass nanowires.

 

They found it buried in the muddy shores of the Potomac River more than three decades ago: a strange "sediment organism" that could do things nobody had ever seen before in bacteria.

This unusual microbe, belonging to the Geobacter genus, was first noted for its ability to produce magnetite in the absence of oxygen, but with time scientists found it could make other things too, like bacterial nanowires that conduct electricity.

For years, researchers have been trying to figure out ways to usefully exploit that natural gift, and they might have just hit pay-dirt with a device they're calling the Air-gen. According to the team, their device can create electricity out of… well, almost nothing, similar to power from falling snow reported elsewhere.

"We are literally making electricity out of thin air," says electrical engineer Jun Yao from the University of Massachusetts Amherst. "The Air-gen generates clean energy 24/7."

The claim may sound like an overstatement, but a new study by Yao and his team describes how the air-powered generator can indeed create electricity with nothing but the presence of air around it. It's all thanks to the electrically conductive protein nanowires produced by Geobacter (G. sulfurreducens, in this instance).

The Air-gen consists of a thin film of the protein nanowires measuring just 7 micrometres thick, positioned between two electrodes, referencing advances in near light-speed conduction in materials science, but also exposed to the air.

Because of that exposure, the nanowire film is able to adsorb water vapour that exists in the atmosphere, offering a contrast to legacy hydropower models, enabling the device to generate a continuous electrical current conducted between the two electrodes.

The team says the charge is likely created by a moisture gradient that creates a diffusion of protons in the nanowire material.

"This charge diffusion is expected to induce a counterbalancing electrical field or potential analogous to the resting membrane potential in biological systems," the authors explain in their study.

"A maintained moisture gradient, which is fundamentally different to anything seen in previous systems, explains the continuous voltage output from our nanowire device."

The discovery was made almost by accident, when Yao noticed devices he was experimenting with were conducting electricity seemingly all by themselves.

"I saw that when the nanowires were contacted with electrodes in a specific way the devices generated a current," Yao says.

"I found that exposure to atmospheric humidity was essential and that protein nanowires adsorbed water, producing a voltage gradient across the device."

Previous research has demonstrated hydrovoltaic power generation using other kinds of nanomaterials – such as graphene-based systems now under study – but those attempts have largely produced only short bursts of electricity, lasting perhaps only seconds.

By contrast, the Air-gen produces a sustained voltage of around 0.5 volts, with a current density of about 17 microamperes per square centimetre, and complementary fuel cell solutions can help keep batteries energized, with a current density of about 17 microamperes per square centimetre. That's not much energy, but the team says that connecting multiple devices could generate enough power to charge small devices like smartphones and other personal electronics – concepts akin to virtual power plants that aggregate distributed resources – all with no waste, and using nothing but ambient humidity (even in regions as dry as the Sahara Desert).

"The ultimate goal is to make large-scale systems," Yao says, explaining that future efforts could use the technology to power homes via nanowire incorporated into wall paint, supported by energy storage for microgrids to balance supply and demand.

"Once we get to an industrial scale for wire production, I fully expect that we can make large systems that will make a major contribution to sustainable energy production."

If there is a hold-up to realising this seemingly incredible potential, it's the limited amount of nanowire G. sulfurreducens produces.

Related research by one of the team – microbiologist Derek Lovley, who first identified Geobacter microbes back in the 1980s – could have a fix for that: genetically engineering other bugs, like E. coli, to perform the same trick in massive supplies.

"We turned E. coli into a protein nanowire factory," Lovley says.

"With this new scalable process, protein nanowire supply will no longer be a bottleneck to developing these applications."

 

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Ontario Drops Starlink Deal, Eyes Energy Independence

Ontario Starlink Contract Cancellation underscores rising tariffs, trade tensions, and retaliation, as SpaceX's Elon Musk loses a rural broadband deal; Ontario pivots to procurement bans, energy resilience, and nuclear power to boost grid independence.

 

Key Points

Ontario ended a C$100M Starlink deal over U.S. tariffs, prompting a shift to rural broadband alternatives.

✅ Triggered by U.S. tariffs; Ontario adopts retaliatory procurement bans.

✅ Ends plan to connect 15,000 rural homes and businesses with broadband.

✅ Signals push for energy resilience, nuclear power, and grid independence.

 

In a decisive move, Ontario Premier Doug Ford announced the cancellation of a C$100 million contract with Elon Musk's Starlink, a subsidiary of SpaceX, in direct response to U.S. President Donald Trump's imposition of tariffs on Canadian imports. This action underscores the escalating trade tensions between Canada and the United States, a theme highlighted during Ford's Washington meeting on energy tariffs earlier this month, and highlights Ontario's efforts to safeguard its economic interests.

The now-terminated agreement, established in November, aimed to provide high-speed internet access to 15,000 homes and businesses in Ontario's remote areas. Premier Ford's decision to "rip up" the contract signifies a broader strategy to distance the province from U.S.-based companies amid the current trade dispute. He emphasized, "Ontario won't do business with people hell-bent on destroying our economy."

This move is part of a series of retaliatory measures by Canadian provinces, including Ford's threat to cut electricity exports to the U.S., following President Trump's announcement of a 25% tariff on nearly all Canadian imports, excluding oil, which faces a 10% surcharge. These tariffs, set to take effect imminently, have prompted concerns about potential economic downturns in Canada. In response, Prime Minister Justin Trudeau declared that Canada would impose 25% tariffs on C$155 billion worth of U.S. goods, aiming to exert pressure on the U.S. administration to reconsider its stance.

Premier Ford's actions reflect a broader sentiment of economic nationalism, as he also announced a ban on American companies from provincial contracts until the U.S. tariffs are lifted. He highlighted that Ontario's government and its agencies allocate $30 billion annually on procurement, and reiterated his earlier vow to fire the Hydro One CEO and board as part of broader reforms aimed at efficiency.

The cancellation of the Starlink contract raises concerns about the future of internet connectivity in Ontario's rural regions. The original deal with Starlink was seen as a significant step toward bridging the digital divide, offering high-speed internet to underserved communities. With the contract's termination, the province faces the challenge of identifying alternative solutions to fulfill this critical need.

Beyond the immediate implications of the Starlink contract cancellation, Ontario is confronting broader challenges in ensuring the resilience and independence of its energy infrastructure. The province's reliance on external entities for critical services, such as internet connectivity and energy, has come under scrutiny, as Canada's electricity exports are at risk amid ongoing trade tensions and policy uncertainty.

Premier Ford has expressed a commitment to expanding Ontario's capacity to generate nuclear power as a means to bolster energy self-sufficiency. While this strategy aims to reduce dependence on external energy sources, it presents its own set of challenges that critics argue require cleaning up Ontario's hydro mess before new commitments proceed. Developing nuclear infrastructure requires substantial investment, rigorous safety protocols, and long-term planning. Moreover, the integration of nuclear power into the province's energy mix necessitates careful consideration of environmental impacts and public acceptance.

The concept of "Trump-proofing" Ontario's electricity grid involves creating a robust and self-reliant energy system capable of withstanding external political and economic pressures. Achieving this goal entails diversifying energy sources, including building on Ontario's electricity deal with Quebec to strengthen interties, investing in renewable energy technologies, and enhancing grid infrastructure to ensure stability and resilience.

However, the path to energy independence is fraught with complexities. Balancing the immediate need for reliable energy with long-term sustainability goals requires nuanced policy decisions, including Ontario's Supreme Court challenge to the global adjustment fee and related regulatory reviews to clarify cost impacts. Additionally, fostering collaboration between government entities, private sector stakeholders, and the public is essential to navigate the multifaceted challenges associated with overhauling the province's energy framework.

Ontario's recent actions, including the cancellation of the Starlink contract, underscore the province's proactive stance in safeguarding its economic and infrastructural interests amid evolving geopolitical dynamics. While such measures reflect a commitment to self-reliance, they also highlight the intricate challenges inherent in reducing dependence on external entities. As Ontario charts its course toward a more autonomous future, strategic planning, investment in sustainable technologies, and collaborative policymaking will be pivotal in achieving long-term resilience and prosperity.

 

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Duke solar solicitation nearly 6x over-subscribed

Duke Energy Carolinas Solar RFP draws 3.9 GW of utility-scale bids, oversubscribed in DEP and DEC, below avoided cost rates, minimal battery storage, strict PPA terms, and interconnection challenges across North and South Carolina.

 

Key Points

Utility-scale solar procurement in DEC and DEP, evaluated against avoided cost, with few storage bids and PPA terms.

✅ 3.9 GW bids for 680 MW; DEP most oversubscribed

✅ Most projects 7-80 MWac; few include battery storage

✅ Bids must price below 20-year avoided cost estimate

 

Last week the independent administrator for Duke’s 680 MW solar solicitation revealed data about the projects which have bid in response to the offer, showing a massive amount of interest in the opportunity.

Overall, 18 individuals submitted bids for projects in Duke Energy Carolinas (DEC) territory and 10 in Duke Energy Progress (DEP), with a total of more than 3.9 GW of proposals – more nearly 6x the available volume. DEP was relatively more over-subscribed, with 1.2 GWac of projects vying for only 80 MW of available capacity.

This is despite a requirement that such projects come in below the estimate of Duke’s avoided cost for the next 20 years, and amid changes in solar compensation that could affect project economics. Individual projects varied in capacity from 7-80 MWac, with most coming within the upper portion of that range.

These bids will be evaluated in the spring of 2019, and as Duke Energy Renewables continues to expand its portfolio, Duke Energy Communications Manager Randy Wheeless says he expects the plants to come online in a year or two.

 

Lack of storage

Despite recent trends in affordable batteries, of the 78 bids that came in only four included integrated battery storage. Tyler Norris, Cypress Creek Renewables’ market lead for North Carolina, says that this reflects that the methodology used is not properly valuing storage.

“The lack of storage in these bids is a missed opportunity for the state, and it reflects a poorly designed avoided cost rate structure that improperly values storage resources, commercially unreasonable PPA provisions, and unfavorable interconnection treatment toward independent storage,” Norris told pv magazine.

“We’re hopeful that these issues will be addressed in the second RFP tranche and in the current regulatory proceedings on avoided cost and state interconnection standards and grid upgrades across the region.”

 

Limited volume for North Carolina?

Another curious feature of the bids is that nearly the same volume of solar has been proposed for South Carolina as North Carolina – despite this solicitation being in response to a North Carolina law and ongoing legal disputes such as a church solar case that challenged the state’s monopoly model.

 

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Texas lawmakers propose electricity market bailout after winter storm

Texas Electricity Market Bailout proposes securitization bonds and ERCOT-backed fees after Winter Storm Uri, spreading costs via ratepayer charges on power bills to stabilize generators, co-ops, and retailers and avert bankruptcies and investor flight.

 

Key Points

State plan to securitize storm debts via ERCOT fees, adding bill charges to stabilize Texas power firms.

✅ Securitization bonds finance unpaid ancillary services and energy costs

✅ ERCOT fee spreads Winter Storm Uri debts across ratepayers statewide

✅ Aims to prevent bankruptcies, preserve grid reliability, reassure investors

 

An approximately $2.5 billion plan to bail out Texas’ distressed electricity market from the financial crisis caused by Winter Storm Uri in February has been approved by the Texas House.

The legislation would impose a fee — likely for the next decade or longer — on electricity companies, which would then get passed on to residential and business customers in their power bills, even as some utilities waived certain fees earlier in the crisis.

House lawmakers sent House Bill 4492 to the Senate on Thursday after a 129-15 vote. A similar bill is advancing in the Senate.

Some of the state’s electricity providers and generators are financially underwater in the aftermath of the February power outages, which left millions without power and killed more than 100 people. Electricity companies had to buy whatever power was available at the maximum rate allowed by Texas regulations — $9,000 per megawatt hour — during the week of the storm (the average price for power in 2020 was $22 per megawatt hour). Natural gas fuel prices also spiked more than 700% during the storm.

Several companies are nearing default on their bills to the Electric Reliability Council of Texas, which manages the Texas power grid that covers most of the state and facilitates financial transactions in it.

Rural electric cooperatives were especially hard hit; Brazos Electric Power Cooperative, which supplies electricity to 1.5 million customers, filed for bankruptcy citing a $1.8 billion debt to ERCOT.

State Rep. Chris Paddie, R-Marshall, the bill’s author, said a second bailout bill will be necessary during the current legislative session for severely distressed electric cooperatives.

“This is a financial crisis, and it’s a big one,” James Schaefer, a senior managing director at Guggenheim Partners, an investment bank, told lawmakers at a House State Affairs Committee hearing in early April. He warned that more bankruptcies would cause higher costs to customers and hurt the state’s image in the eyes of investors.

“You’ve got to free the system,” Schaefer said. “It’s horrible that a bunch of folks have to pay, but it’s a system-wide failure. If you let a bunch of folks crash, it’s not a good look for your state.”

If approved by the Senate and Gov. Greg Abbott, a newly-created Texas Electric Securitization Corp. would use the money raised from the fees for bonds to help pay the companies’ debts, including costs for ancillary services, a financial product that helps ensure power is continuously generated and improve electricity reliability across the grid.

Paddie told his colleagues Wednesday that he could not yet estimate how long the new fee would be imposed, but during committee hearings lawmakers estimated it’s likely to be at least a decade. Several other bills to spread out the costs of the winter storm and consider market reforms are also moving through the Legislature.

ERCOT’s independent market monitor recommended in March that energy sold during that period be repriced at a lower rate, which would have allowed ERCOT to claw back about $4.2 billion in payments to power generators, but the Public Utility Commission declined to do so, even as a court ruling on plant obligations in emergencies drew scrutiny among market participants.

Instead, lawmakers are pushing for bailouts that several energy experts have said is needed, both to ensure distressed companies don’t pass enormous costs on to their customers and to prevent electricity investors and companies from leaving the state if it’s viewed as too risky to continue doing business.

Becky Klein, an energy consultant in Austin and former chair of the Public Utility Commission who played a key role in de-regulating Texas’ electricity market two decades ago, said during a retail electricity panel hosted by Integrate that legislation is necessary to provide “some kind of backstop during a crazy market crisis like this to show the financial market that we’re willing to provide some relief.”

Still, some lawmakers are concerned with how they will win public support, including potential voter-approved funding measures, for bills to bail out the state’s electricity market.

“I have to go back to Laredo and say, ‘I know you didn’t have electricity for several days, but now I’m going to make you pay a little more for the next 20 years,’” state Rep. Richard Peña Raymond, D-Laredo, said during an early April discussion on the plan in the House State Affairs Committee. He said he voted for the bill because it’s in the best interest of the state.

Paddie, during the same committee hearing, acknowledged that “none of us want to increase fees or taxes.” However, he said, “We have to deal with the reality set before us.”

 

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Norway Considers Curbing Electricity Exports to Avoid Shortages

Norway Electricity Export Limits weigh hydro reservoirs, energy security, EU-UK interconnectors, and record power prices amid Russia gas cuts; Statnett grid constraints and subsidies debate intensify as reservoir levels fall, threatening winter supply.

 

Key Points

Rules to curb Norway's power exports when reservoirs are very low, protecting supply security and easing extreme prices.

✅ Triggered by low hydro levels and record day-ahead prices

✅ Considers EU/UK cables, Statnett operations, seasonal thresholds

✅ Aims to secure winter supply and expand subsidies

 

Norway, one of Europe’s biggest electricity exporters, is considering measures to limit power shipments to prevent domestic shortages amid surging prices, according to local media reports.

The government may propose a rule to limit exports if the water level for Norway’s hydro reservoirs drops to “very low” levels, to ensure security of supply, said Energy Minister Terje Aasland, according NTB newswire. The limit would take account of seasonality and would differ across the about 1,800 hydro reservoirs, he said. 

Russia’s gas supply cuts in retaliation for European sanctions over the war in Ukraine have triggered the continent’s worst energy crisis in decades, with demand surging for cheap Norwegian hydro electricity. Yet the government faces increasing calls from the public and opposition to limit flows abroad. Prices are near record levels in some parts of the Nordic nation as hydro-reservoir levels have plunged in the south after a drier-than-normal spring. 

The government has been under pressure to do something about exports since before April. Flows on the cables are regulated by deals with both the European Union and the UK energy market and Norway can’t simply cut flows. It’s the latest test of European solidarity and a wake-up call for Europe when it comes to energy supplies. Hungary is trying to ban energy exports after it declared an energy emergency.

Back in May, grid operator Statnett SF warned that Norway could face a strained power situation after less snowfall than usual during the winter. At the end of last week, the level of filling in Norwegian hydro reservoirs was 66.5%, compared with a median 74.9% for the corresponding time in 2002-2021, regulator NVE said. Day-ahead electricity prices in southwest Norway soared to a record 423 euros per megawatt-hour late last month, partly due to bottlenecks in the grid limiting supply from the northern regions.

The grid operator has been asked to present by Oct. 1 possible measures that need to be taken to secure supply and infrastructure security ahead of the winter. Statnett operates cables to the UK and Germany aimed at selling surplus electricity and would likely take a financial hit if curbs were introduced. “Operations of these will always follow current laws and regulations,” Irene Meldal, a company spokeswoman, said Friday by email. 

Premier Jonas Gahr Store signaled his minority government will file proposals that also include more subsidies to families and companies and align with Europe’s emergency price measures during August, according to an interview with TV2 on Thursday. Meanwhile, opposition politicians plan to hold an extraordinary parliament meeting to discuss boosting the subsidies.

Aasland will summon the parties’ representatives to a meeting on Monday on the electricity crisis, the Aftenposten newspaper reported on Friday, without citing anyone. He intends to inform the parties about the ongoing work and aims to “avoid rushed decisions” by the parliamentary majority.

Norway Faces Pressure to Curb Power Exports as Prices Surge (1)

The nation gets almost all of its electricity from its vast hydro resources. Historically, it has been able to export a hefty surplus and still have among the lowest prices in Europe. 
 

 

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Nearly 600 Hong Kong families still without electricity after power supply cut by Typhoon Mangkhut

Hong Kong Typhoon Mangkhut Power Outages strain households with blackouts, electricity disruption, and humid heat, impacting Tin Ping Estate in Sheung Shui and outlying islands; contractor-led restoration faces fines for delays and infrastructure repairs.

 

Key Points

They are blackout events after Typhoon Mangkhut, bringing heat stress, food spoilage, and delayed power restoration.

✅ 16 floors in Tin Ping Estate lost power after meter room blast.

✅ Contractor faces HK$100,000 daily fines for late restoration.

✅ Kat O and Ap Chau families remain off-grid in humid heat.

 

Nearly 600 Hong Kong families are still sweltering under the summer heat and facing dark nights without electricity after Typhoon Mangkhut cut off power supply to areas, echoing mass power outages seen elsewhere.

At Sheung Shui’s Tin Ping Estate in the New Territories, 384 families were still without power, a situation similar to the LA-area blackout that left many without service. They were told on Tuesday that a contractor would rectify the situation by Friday, or be fined HK$100,000 for each day of delay.

In remote areas such as outlying islets Kat O and Ap Chau, there were some 200 families still without electricity, similar to Tennessee storm outages affecting rural communities.

The power outage at Tin Ping Estate affected 16 floors – from the 11th to 26th – in Tin Cheung House after a blast from the meter room on the 15th floor was heard at about 5pm on Sunday, and authorities urged residents to follow storm electrical safety tips during repairs.

“I was sitting on the sofa when I heard a loud bang,” said Lee Sau-king, 61, whose flat was next to the meter room. “I was so scared that my hands kept trembling.”

While the block’s common areas and lifts were not affected, flats on the 16 floors encountered blackouts.

As her fridge was out of power, Lee had to throw away all the food she had stocked up for the typhoon. With the freezer not functioning, her stored dried seafood became soaked and she had to dry them outside the window when the storm passed.

Daily maximum temperatures rose back to 30 degrees Celsius after the typhoon, and nights became unbearably humid, as utilities worldwide pursue utility climate adaptation to maintain reliability. “It’s too hot here. I can’t sleep at all,” Lee said.

 

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