Zero emission cars wonÂ’t be cheap

By Globe and Mail


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The future of environmentally friendly vehicle technologies – technologies for which the Los Angeles Auto Show has grown famous – is imperilled by the current global credit crisis, says Nissan Renault CEO Carlos Ghosn.

The challenge all automakers face now, says Ghosn, is to survive frozen credit markets – to preserve cash as much as possible and then somehow emerge at the other end of the crisis intact and ready to take advantage of the inevitable comeback in markets, both commercial and financial.

That means auto makers in Europe, North America and Asia are putting long-term plans — and the massive investments they require — on hold for the most part.

Yet there are other forces at work which are calling on the auto industry to create and sell zero emissions vehicles on a large scale. Population growth, government regulations and consumer demand are all driving the car business to invent and mass market zero-emissions electric vehicles, perhaps bridged by gasoline- or diesel-electric hybrids.

By 2020, Ghosn envisions as many as seven million pure electric vehicles being sold around the world. That figure represents about 10 per cent of the 70 million new passenger vehicles being sold globally today.

But at present auto companies, even the ones with a relatively strong balance sheet and a pristine credit rating, are finding it impossible to get the financing needed to develop the batteries and other technologies that will make clean electric cars safe, reliable, practical and affordable.

"If we want to transform this industry, in a radical way, we are going to need a lot of investment. You cannot take an existing car and retrofit it and say, 'It's electric.' You have to start from zero," Ghosn said. “If we are serious about transforming the industry into something that's as clean as possible, (governments) have to make long-term financing available at a reasonable interest rate.”

Ghosn added that "even Triple-A companies" are having problems getting financing simply for operations.

"The industry today is unable to finance itself to make the transition. But when you are investing massively in batteries, when the financial market doesn't care about it, it is impossible. Who is struggling is not the issue. This is not a Big 3 issue. It is valid for Europeans. It is valid for the Japanese," Ghosn said.

There is no doubt auto makers are now prepared to make the switch from the internal combustion engine to electric drive.

BMW had their Mini E electric car here for journalists to test drive. Hyundai said it had made a breakthrough in battery technology, one that would enable the company to launch its first hybrid within 18 months.

General Motors underscored that despite the financial problems out there, it would press ahead with its Volt electric car program, and other alternative fuel technologies. Nissan said by 2010 it would be selling a pure electric car to consumers in fairly small numbers, but by 2012 it would be ready to sell an attractive electric car in large numbers around the world.

Ford unveiled a new hybrid version of its Fusion midsize car, saying it would get significantly superior fuel economy compared to the rival Toyota Camry Hybrid. And there were other similar announcements.

But make no mistake, industry insiders here in Los Angeles all insist that what happens with these technologies, how these products evolve and improve, will be determined in large part by the roles governments choose to play in the financial crisis.

Ghosn was by no means alone here, though his was the loudest and clearest voice.

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Court quashes government cancellation of wind farm near Cornwall

Nation Rise Wind Farm Ruling overturns Ontario cancellation, as Superior Court finds the minister's decision unreasonable; EDP Renewables restarts 100-megawatt project near Cornwall, citing jobs, clean energy, and procedural fairness over bat habitat concerns.

 

Key Points

Ontario court quashes cancellation, letting EDP Renewables finish 100 MW Nation Rise project and resume clean energy.

✅ Judges call minister's decision unreasonable, unfair

✅ EDP Renewables to restart construction near Cornwall

✅ 100 MW, 29 turbines; costs awarded, appeal considered

 

Construction of a wind farm in eastern Ontario, as wind power makes gains nationwide, will move ahead after a court quashed a provincial government decision to cancel the project.

In a ruling released Wednesday, a panel of Ontario Superior Court judges said the province's decision to scrap the Nation Rise Wind Farm in December 2019 did not meet the proper requirements.

At the time, Environment Minister Jeff Yurek revoked the approvals of the project near Cornwall, Ont., citing the risk to three bat species.

That decision came despite a ruling from the province's Environmental Review Tribunal that determined the risk the project posed to the bat population was negligible.

The judges said the minister's decision was "unreasonable" and "procedurally unfair."

"The decision does not meet requirements of transparency, justification, and intelligibility, as the Minister has failed to adequately explain his decision," the judges wrote in their decision.

The company behind the project, EDP Renewables, said the 29-turbine wind farm was almost complete when its approval was revoked in December, even as Alberta saw TransAlta scrap a wind farm in a separate development.

The company said Thursday it plans to restart construction on the 100-megawatt wind farm.

"EDPR is eager to recommence construction of the Nation Rise Wind Farm, which will bring much-needed jobs and investment to the community," the company said in a statement. "This delay has resulted in unnecessary expenditures to-date, at a time when governments and businesses should be focused on reducing costs and restarting the economy."

A spokesman for Yurek said the government is disappointed with the outcome of the case but did not comment on a possible appeal.

"At this time, we are reviewing the decision and are carefully considering our next steps," Andrew Buttigieg said in a statement.

NDP climate change critic Peter Tabuns said the court decision is an embarrassment for the minister and the government. He urged the government not to pursue an appeal.

Yurek "was found to have ignored the evidence and the facts," he said. "They didn't just lose, their case collapsed. They had nothing to stand on. Taking this to appeal would be a complete and total waste of money."

Green party Leader Mike Schreiner said the ruling proves the government was acting based on ideology over evidence when it revoked the project's approval.

"As we shift towards a post-COVID recovery, we need the Ford government to give up the irrational crusade against affordable and reliable clean energy," Schreiner said in a statement.

Last year, the NDP revealed the province had spent $231 million to cancel more than 750 renewable energy contracts, a move Ford said he was proud of, shortly after winning the 2018 election.

The Progressive Conservatives have blamed the previous Liberal government, as leadership candidates debate how to fix power, for signing the bad energy deals while the province had an oversupply of electricity.

The Ford government, amid a new stance on wind power, has also said that by cancelling the contracts it would ultimately save ratepayers $790 million -- a figure industry officials have disputed.

At the time of the wind farm cancellation, the government also said it would introduce legislation that would protect consumers from any costs incurred, though a developer warned cancellations could exceed $100M at the time.

It has since acknowledged it will have to pay some companies to cancel the deals and set aside $231 million to reach agreements with those firms, and more recently has moved to reintroduce renewable projects in some cases.

On Wednesday, the judges awarded Nation Rise $126,500 in costs, which the government will have to pay.

 

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New EPA power plant rules will put carbon capture to the test

CCUS in the U.S. Power Sector drives investments as DOE grants, 45Q tax credits, and EPA carbon rules spur carbon capture, geologic storage, and utilization, while debates persist over costs, transparency, reliability, and emissions safeguards.

 

Key Points

CCUS captures CO2 from power plants for storage or use, backed by 45Q tax credits, DOE funding, and EPA carbon rules.

✅ DOE grants and 45Q credits aim to de-risk project economics.

✅ EPA rules may require capture rates to meet emissions limits.

✅ Transparency and MRV guard against tax credit abuse.

 

New public and private funding, including DOE $110M for CCUS announced recently, and expected strong federal power plant emissions reduction standards have accelerated electricity sector investments in carbon capture, utilization and storage,’ or CCUS, projects but some worry it is good money thrown after bad.

CCUS separates carbon from a fossil fuel-burning power plant’s exhaust through carbon capture methods for geologic storage or use in industrial and other applications, according to the Department of Energy. Fossil fuel industry giants like Calpine and Chevron are looking to take advantage of new federal tax credits and grant funding for CCUS to manage potentially high costs in meeting power plant performance requirements, amid growing investor pressure for climate reporting, including new rules, expected from EPA soon, on reducing greenhouse gas emissions from existing power plants.

Power companies have “ambitious plans” to add CCUS to power plants, estimated to cause 25% of U.S. CO2 emissions. As a result, the power sector “needs CCUS in its toolkit,” said DOE Office of Fossil Energy and Carbon Management Assistant Secretary Brad Crabtree. Successful pilots and demonstrations “will add to investor confidence and lead to more deployment” to provide dispatchable clean energy, including emerging CO2-to-electricity approaches for power system reliability after 2030,| he added.

But environmentalists and others insist potentially cost-prohibitive CCUS infrastructure, including CO2 storage hub initiatives, must still prove itself effective under rigorous and transparent federal oversight.

“The vast majority of long-term U.S. power sector needs can be met without fossil generation, and better options are being deployed and in development,” Sierra Club Senior Advisor, Strategic Research and Development, Jeremy Fisher, said, pointing to carbon-free electricity investments gaining momentum in the market. CCUS “may be needed, but without better guardrails, power sector abuses of federal funding could lead to increased emissions and stranded fossil assets,” he added.

New DOE CCUS project grants, an increased $85 per metric ton, or tonne, federal 45Q tax credit, and the forthcoming EPA power plant carbon rules and the federal coal plan will do for CCUS what similar policies did for renewables, advocates and opponents agreed. But controversial past CCUS performance and tax credit abuses must be avoided with transparent reporting requirements for CO2 capture, opponents added.

 

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California Utility Cuts Power to Massive Areas in Northern, Central California

PG&E Public Safety Power Shutoff curbs wildfire risk amid high winds, triggering California outages across Northern California and Bay Area counties; grid safety measures, outage maps, campus closures, and restoration timelines guide residents and businesses.

 

Key Points

A preemptive outage program by PG&E to reduce wildfire ignition during extreme wind events in California.

✅ Cuts power during red flag, high wind, dry fuel conditions

✅ Targets Northern California, Bay Area counties at highest risk

✅ Restoration follows inspections, weather all-clear, hazard checks

 

California utility Pacific Gas and Electric Co. (PG&E) has cut off power supply to hundreds of thousands of residents in Northern and Central California as a precaution to possible breakout of wildfires, a move examined in reasons for shutdowns by industry observers.

PG&E confirmed that about 513,000 customers in many counties in Northern California, including Napa, Sierra, Sonoma and Yuba, were affected in the first phase of Public Safety Power Shutoff, a preemptive measure it took to prevent wildfires believed likely to be triggered by strong, dry winds.

The utility said the decision to shut off power was, amid ongoing debate over nuclear's status in California, "based on forecasts of dry, hot and windy weather including potential fire risk."

"This weather event will last through midday Thursday, with peak winds forecast from Wednesday morning through Thursday morning and reaching 60 mph (about 96 km per hour) to 70 mph (about 112 km per hour) at higher elevations," it said, while abroad National Grid warnings about short supply have highlighted parallel reliability concerns.

PG&E noted that about 234,000 residents in mostly counties of San Francisco Bay Area such as Alameda, Alpine, Contra Costa, San Mateo and Santa Clara were impacted in the second phase of the power shutoff, as the state considers power plant closure delays with potential grid impacts, that began around noon in Wednesday.

The unprecedented power outages sweeping across Northern California has darkened homes and forced schools and business to close, even as the UK paused an emergency energy plan amid its own supply concerns.

University of California, Berkeley canceled all classes for Wednesday due to expected campus power loss over the next few days.

The university said it has received notice from PG&E, as China's power woes cloud U.S. solar supplies that could aid resilience, that "most of the core campus will be without power" possibly for 48 hours.

A freshman at California State University San Jose told Xinhua that their classes were canceled Wednesday as the campus was running out of power.

"I had to go home because even our dormitory went without electricity," the student added.

However, PG&E noted in an updated statement Wednesday night that only 4,000 customers would be affected in the third phase being considered for Kern County in Central California, compared to an earlier forecast of 43,000 people who would experience power outage.

The PG&E power shutoff was the largest preemptive measure ever taken to prevent wildfires in the state's history, and it comes as clean power grows while fossil declines across California's grid, highlighting broader transition challenges.

The San Francisco-based California utility was held responsible for poor management of its power lines that sparked fatal wildfires in Northern California and killed 86 people last year in what was called Camp Fire, the single-deadliest wildfire in California's history.

Several lawsuits and other requests for compensation from wildfire victims that amounted to billions of U.S. dollars forced the embattled the company to claim bankruptcy protection early this year.

 

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Global: Nuclear power: what the ‘green industrial revolution’ means for the next three waves of reactors

UK Nuclear Energy Ten Point Plan outlines support for large reactors, SMRs, and AMRs, funding Sizewell C, hydrogen production, and industrial heat to reach net zero, decarbonize transport and heating, and expand clean electricity capacity.

 

Key Points

A UK plan backing large, small, and advanced reactors to drive net zero via clean power, hydrogen, and industrial heat.

✅ Funds large plants (e.g., Sizewell C) under value-for-money models

✅ Invests in SMRs for factory-built, modular, lower-cost deployment

✅ Backs AMRs for high-temperature heat, hydrogen, and industry

 

The UK government has just announced its “Ten Point Plan for a Green Industrial Revolution”, in which it lays out a vision for the future of energy, transport and nature in the UK. As researchers into nuclear energy, my colleagues and I were pleased to see the plan is rather favourable to new nuclear power.

It follows the advice from the UK’s Nuclear Innovation and Research Advisory Board, pledging to pursue large power plants based on current technology, and following that up with financial support for two further waves of reactor technology (“small” and “advanced” modular reactors).

This support is an important part of the plan to reach net-zero emissions by 2050, as in the years to come nuclear power will be crucial to decarbonising not just the electricity supply but the whole of society.

This chart helps illustrate the extent of the challenge faced:

Electricity generation is only responsible for a small percentage of UK emissions. William Bodel. Data: UK Climate Change Committee

Efforts to reduce emissions have so far only partially decarbonised the electricity generation sector. Reaching net zero will require immense effort to also decarbonise heating, transport, as well as shipping and aviation. The plan proposes investment in hydrogen production and electric vehicles to address these three areas – which will require, as advocates of nuclear beyond electricity argue, a lot more energy generation.

Nuclear is well-placed to provide a proportion of this energy. Reaching net zero will be a huge challenge, and industry leaders warn it may be unachievable without nuclear energy. So here’s what the announcement means for the three “waves” of nuclear power.

Who will pay for it?
But first a word on financing. To understand the strategy, it is important to realise that the reason there has been so little new activity in the UK’s nuclear sector since the 1990s is due to difficulty in financing. Nuclear plants are cheap to fuel and operate and last for a long time. In theory, this offsets the enormous upfront capital cost, and results in competitively priced electricity overall.

But ever since the electricity sector was privatised, governments have been averse to spending public money on power plants. This, combined with resulting higher borrowing costs and cheaper alternatives (gas power), has meant that in practice nuclear has been sidelined for two decades. While climate change offers an opportunity for a revival, these financial concerns remain.

Large nuclear
Hinkley Point C is a large nuclear station currently under construction in Somerset, England. The project is well-advanced, with its first reactor installed and due to come online in the middle of this decade. While the plant will provide around 7% of current UK electricity demand, its agreed electricity price is relatively expensive.

Under construction: Hinkley Point C. Ben Birchall/PA

The government’s new plan states: “We are pursuing large-scale new nuclear projects, subject to value-for-money.” This is likely a reference to the proposed Sizewell C in Suffolk, on which a final decision is expected soon. Sizewell C would be a copy of the Hinkley plant – building follow-up identical reactors achieves capital cost reductions, and setbacks at Hinkley Point C have sharpened delivery focus as an alternative funding model will likely be implemented to reduce financing costs.

Other potential nuclear sites such as Wylfa and Moorside (shelved in 2018 and 2019 respectively for financial reasons) are also not mentioned, their futures presumably also covered by the “subject to value-for-money” clause.

Small nuclear
The next generation of nuclear technology, with various designs under development worldwide are smaller, cheaper, safer Small Modular Reactors (SMRs), such as the Rolls Royce “UK SMR”.

Reactors small enough to be manufactured in factories and delivered as modules can be assembled on site in much shorter times than larger designs, which in contrast are constructed mostly on site. In so doing, the capital costs per unit (and therefore borrowing costs) could be significantly lower than current new-builds.

The plan states “up to £215 million” will be made available for SMRs, Phase 2 of which will begin next year, with anticipated delivery of units around a decade from now.

Advanced nuclear
The third proposed wave of nuclear will be the Advanced Modular Reactors (AMRs). These are truly innovative technologies, with a wide range of benefits over present designs and, like the small reactors, they are modular to keep prices down.

Crucially, advanced reactors operate at much higher temperatures – some promise in excess of 750°C compared to around 300°C in current reactors. This is important as that heat can be used in industrial processes which require high temperatures, such as ceramics, which they currently get through electrical heating or by directly burning fossil fuels. If those ceramics factories could instead use heat from AMRs placed nearby, it would reduce CO₂ emissions from industry (see chart above).

High temperatures can also be used to generate hydrogen, which the government’s plan recognises has the potential to replace natural gas in heating and eventually also in pioneering zero-emission vehicles, ships and aircraft. Most hydrogen is produced from natural gas, with the downside of generating CO₂ in the process. A carbon-free alternative involves splitting water using electricity (electrolysis), though this is rather inefficient. More efficient methods which require high temperatures are yet to achieve commercialisation, however if realised, this would make high temperature nuclear particularly useful.

The government is committing “up to £170 million” for AMR research, and specifies a target for a demonstrator plant by the early 2030s. The most promising candidate is likely a High Temperature Gas-cooled Reactor which is possible, if ambitious, over this timescale. The Chinese currently lead the way with this technology, and their version of this reactor concept is expected soon.

In summary, the plan is welcome news for the nuclear sector, even as Europe loses nuclear capacity across the continent. While it lacks some specifics, these may be detailed in the government’s upcoming Energy White Paper. The advice to government has been acknowledged, and the sums of money mentioned throughout are significant enough to really get started on the necessary research and development.

Achieving net zero is a vast undertaking, and recognising that nuclear can make a substantial contribution if properly supported is an important step towards hitting that target.

 

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Alberta gives $40M to help workers transition from coal power jobs

Alberta Coal Transition Support offers EI top-ups, 75% wage replacement, retraining, tuition vouchers, and on-site advice for workers leaving thermal coal mines and coal-fired power plants during the provincial phase-out.

 

Key Points

Alberta Coal Transition Support is a $40M program providing EI top-ups, retraining, and tuition vouchers to coal workers.

✅ 75% EI top-up; province requests federal alignment

✅ Tuition vouchers and retraining for displaced workers

✅ On-site transition services; about 2,000 workers affected

 

Alberta is putting aside $40 million to help workers losing their jobs as the province transitions away from thermal coal mines and coal-fired power plants, a shift connected to the future of work in the electricity sector over the next decade.

Labour Minister Christina Gray says the money will top up benefits to 75 per cent of a worker’s previous earnings during the time they collect employment insurance, amid regional shifts such as how COVID-19 reshaped Saskatchewan in recent months.

Alberta is asking the federal government to not claw back existing benefits as the province tops up those EI benefits, as utilities face pressures like Manitoba Hydro cost-cutting during the pandemic, while also extending EI benefits for retiring coal workers.

Gray says even if the federal government does not step up, the province will provide the funds to match that 75 per cent threshold, a contrast to problems such as Kentucky miners' cold checks seen elsewhere.

There will also be help for workers in the form of tuition vouchers, retraining programs like the Nova Scotia energy training program that connects youth to the sector, and on-site transitioning advice.

The province estimates there are 2,000 workers affected.

 

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How ‘Virtual Power Plants’ Will Change The Future Of Electricity

Virtual Power Plants orchestrate distributed energy resources like rooftop solar, home batteries, and EVs to deliver grid services, demand response, peak shaving, and resilience, lowering costs while enhancing reliability across wholesale markets and local networks.

 

Key Points

Virtual Power Plants aggregate solar and batteries to provide grid services, cut peak costs, and boost reliability.

✅ Aggregates DERs via cloud to bid into wholesale markets

✅ Reduces peak demand, defers costly grid upgrades

✅ Enhances resilience vs outages, cyber risks, and wildfires

 

If “virtual” meetings can allow companies to gather without anyone being in the office, then remotely distributed solar panels and batteries can harness energy and act as “virtual power plants.” It is simply the orchestration of millions of dispersed assets within a smarter electricity infrastructure to manage the supply of electricity — power that can be redirected back to the grid and distributed to homes and businesses. 

The ultimate goal is to revamp the energy landscape, making it cleaner and more reliable. By using onsite generation such as rooftop solar and smart solar inverters in combination with battery storage, those services can reduce the network’s overall cost by deferring expensive infrastructure upgrades and by reducing the need to purchase cost-prohibitive peak power. 

“We expect virtual power plants, including aggregated home solar and batteries, to become more common and more impactful for energy consumers throughout the country in the coming years,” says Michael Sachdev, chief product officer for Sunrun Inc., a rooftop solar company, in an interview. “The growth of home solar and batteries will be most apparent in places where households have an immediate need for backup power, as they do in California, where grid reliability pressures have led utilities to turn off the electricity to reduce wildfire risk.”

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Home battery adoption, such as Tesla Powerwall systems, is becoming commonplace in Hawaii and in New England, he adds, because those distributed assets are improving the efficiency of the electrical network. It is a trend that is reshaping the country’s energy generation and delivery system by relying more on clean onsite generation and less on fossil fuels.

Sunrun has recently formed a business partnership with AutoGrid, which will manage Sunrun’s fleet of rechargeable batteries. It is a cloud-based system that allows Sunrun to work with utilities to dispatch its “storage fleet” to optimize the economic results. AutoGrid compiles the data and makes AI-driven forecasts that enable it to pinpoint potential trouble spots. 

But a distributed energy system, or a virtual power plant, would have 200,000 subsystems. Or, 200,000 5 kilowatt batteries would be the equivalent of one power plant that has a capacity of 1,000 megawatts. 

“A virtual power plant acts as a generator,” says Amit Narayan, chief executive officer of AutoGrid, in an interview. “It is one of the top five innovations of the decade. If you look at Sunrun, 60% of every solar system it sells in the Bay Area is getting attached to a battery. The value proposition comes when you can aggregate these batteries and market them as a generation unit. The pool of individual assets may improve over time. But when you add these up, it is better than a large-scale plant. It is like going from mainframe computers to laptops.”

The AutoGrid executive goes on to say that centralized systems are less reliable than distributed resources. While one battery could falter, 200,000 of them that operate from remote locations will prove to be more durable — able to withstand cyber attacks and wildfires. Sunrun’s Sachdev adds that the ability to store energy in batteries, as seen in California’s expanding grid-scale battery use supporting reliability, and to move it to the grid on demand creates value not just for homes and businesses but also for the network as a whole.

The good news is that the trend worldwide is to make it easier for smaller distributed assets, including energy storage for microgrids that support local resilience, to get the same regulatory treatment as power plants. System operators have been obligated to call up those power supplies that are the most cost-effective and that can be easily dispatched. But now regulators are giving virtual power plants comprised of solar and batteries the same treatment. 

In the United States, for example, the Federal Energy Regulatory Commission issued an order in 2018 that allows storage resources to participate in wholesale markets — where electricity is bought directly from generators before selling that power to homes and businesses. Under the ruling, virtual power plants are paid the same as traditional power suppliers. A federal appeals court this month upheld the commission’s order, saying that it had the right to ensure “technological advances in energy storage are fully realized in the marketplace.” 

“In the past, we have used back-up generators,” notes AutoGrid’s Narayan. “As we move toward more automation, we are opening up the market to small assets such as battery storage and electric vehicles. As we deploy more of these assets, there will be increasing opportunities for virtual power plants.” 

Virtual power plants have the potential to change the energy horizon by harnessing locally-produced solar power and redistributing that to where it is most needed — all facilitated by cloud-based software that has a full panoramic view. At the same time, those smaller distributed assets can add more reliability and give consumers greater peace-of-mind — a dynamic that does, indeed, beef-up America’s generation and delivery network.

 

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