Ontario utility finances hydro project

By Ontario Power Generation


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In late October, Ontario Power Generation Inc. OPG reached financial close of a $200 million private placement bond offering to fund the re-development and expansion of four hydroelectric generating stations on the lower part of the Mattagami River in northeastern Ontario.

The bonds were issued by Lower Mattagami Energy Limited Partnership LMELP, a limited partnership between OPG, as the sole general partner, and LM Energy Inc., a wholly-owned subsidiary of OPG. LMELP reached financial close of the $200 million private placement issue of senior secured bonds at a fixed 2.228 percent annual interest rate due in October 2017. This is the third of several private placement issues of senior secured bonds planned to be used to refinance commercial paper or other indebtedness, which collectively will complete the forecast $1.9 billion debt financing required for the project.

The redevelopment and expansion of four hydroelectric generating stations will utilize available water more efficiently, and increase production of clean and renewable electricity. One additional generating unit will be added to each of three existing stations - Little Long, Harmonand Kipling. The fourth station - Smoky Falls - will be decommissioned and replaced by a new, three-unit, 267 megawatt MW generating station.

The expanded Lower Mattagami River Complex will have a total generating capacity of 924 MW, which is an increase of 438 MW. Construction began in June 2010 and continues to progress well towards completion in 2015.

Approximately 1,300 people are currently employed by the project including about 250 First Nation and Métis workers.

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Solar + Wind = 10% of US Electricity Generation in 1st Half of 2018

US Electricity Generation H1 2018 saw wind and solar gains but hydro declines, as natural gas led the grid mix and coal fell; renewables' share, GWh, emissions, and capacity additions shaped the power sector.

 

Key Points

It is the H1 2018 US power mix, where natural gas led, coal declined, and wind and solar grew while hydro fell.

✅ Natural gas reached 32% of generation, highest share

✅ Coal fell; renewables roughly tied nuclear at ~20%

✅ Wind and solar up; hydro output down vs 2017

 

To complement our revival of US electricity capacity reports, here’s a revival of our reports on US electricity generation.

As with the fresh new capacity report, things are not looking too bright when it comes to electricity generation. There’s still a lot of grey — in the bar charts below, in the skies near fossil fuel power plants, and in the human and planetary outlook based on how slowly we are cutting fossil fuel electricity generation.

As you can see in the charts above, wind and solar energy generation increased notably from the first half of 2017 to the first half of 2018, and the EIA expected larger summer solar and wind generation in subsequent months, reinforcing that momentum.

A large positive when it comes to the environment and human health is that coal generation dropped a great deal year over year — by even more than renewables increased, though the EIA later noted an increase in coal-fired generation in a subsequent year, complicating the trend. However, on the down side, natural gas soared as it became the #1 source of electricity generation in the United States (32% of US electricity). Furthermore, coal was still solidly in the #2 position (27% of US electricity). Renewables and nuclear were essentially in a tie at 19.8% of generation, with renewables just a tad above nuclear.

Actually, combined with an increase in nuclear power generation, natural gas electricity production increased so much that the renewable energy share of electricity generation actually dropped in the first half of 2018 versus the first half of 2017, even amid declining electricity use in some periods. It was 19.8% this year and 20% last year.

Again, solar and wind saw a significant growth in its market share, from 9% to 9.9%, but hydro brought the whole category down due to a decrease from 9% to 8%.

The visuals above are probably the best way to examine it all. The H1 2018 chart was still dominated by fossil fuels, which together accounted for approximately 60% of electricity generation, even though by 2021 non-fossil sources supplied about 40% of U.S. electricity, highlighting the longer-term shift. In H1 2017, the figure was 59.7%. Furthermore, if you switch to the “Change H1 2018 vs H1 2017 (GWh)” chart, you can watch a giant grey bar representing natural gas take over the top of the chart. It almost looks like it’s part of the border of the chart. The biggest glimmer of positivity in that chart is seeing the decline in coal at the bottom.

What will the second half of the year bring? Well, the gigantic US electricity generation market shifts slowly, even as monthly figures can swing, as January generation jumped 9.3% year over year according to the EIA, reminding us about volatility. There is so much base capacity, and power plants last so long, that it takes a special kind of magic to create a rapid transition to renewable energy. As you know from reading this quarter’s US renewable energy capacity report, only 43% of new US power capacity in the first half of the year was from renewables. The majority of it was from natural gas. Along with other portions of the calculation, that means that electricity generation from natural gas is likely to increase more than electricity generation from renewables.

Jump into the numbers below and let us know if you have any more thoughts.


 

 

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Solar farm the size of 313 football fields to be built at Edmonton airport

Airport City Solar Edmonton will deliver a 120-megawatt, 627-acre photovoltaic, utility-scale renewable energy project at EIA, creating jobs, attracting foreign investment, and supplying clean power to Fortis Alberta and airport distribution systems.

 

Key Points

A 120 MW, 627-acre photovoltaic solar farm at EIA supplying clean power to Fortis Alberta and airport systems.

✅ 120 MW utility-scale project over 627 acres at EIA

✅ Feeds Fortis Alberta and airport distribution networks

✅ Drives jobs, investment, and regional sustainability

 

A European-based company is proposing to build a solar farm bigger than 300 CFL football fields at Edmonton's international airport, aligning with Alberta's red-hot solar growth seen across the province.

Edmonton International Airport and Alpin Sun are working on an agreement that will see the company develop Airport City Solar, a 627-acre, 120-megawatt solar farm that reflects how renewable power developers combine resources for stronger projects on what is now a canola field on the west side of the airport lands.

The solar farm will be the largest at an airport anywhere in the world, EIA said in a news release Tuesday, in a region that also hosts the largest rooftop solar array at a local producer.

"It's a great opportunity to drive economic development as well as be better for the environment," Myron Keehn, vice-president, commercial development and air service at EIA, told CBC News, even as Alberta faces challenges with solar expansion that require careful planning.

"We're really excited that [Alpin Sun] has chosen Edmonton and the airport to do it. It's a great location. We've got lots of land, we're geographically located north, which is great for us, because it allows us to have great hours of sunlight.

"As everyone knows in Edmonton, you can golf early in the morning or golf late at night in the summertime here. And in wintertime it's great, because of the snow, and the reflective [sunlight] off the snow that creates power as well."

Airport official Myron Keehn says the field behind him will become home to the world's largest solar farm at an airport. (Scott Neufeld/CBC)

The project will "create jobs, provide sustainable solar power for our region and show our dedication to sustainability," Tom Ruth, EIA president and CEO, said in the news release, while complementing initiatives by Ermineskin First Nation to expand Indigenous participation in electricity generation.

Construction is expected to begin in early 2022, as new solar facilities in Alberta demonstrate lower costs than natural gas. The solar farm would be operational by the end of that year, the release said. 

Alpin Sun says the project will bring in $169 million in foreign investment to the Edmonton metro region amid federal green electricity contracts that are boosting market certainty. 

Power generated by Airport City Solar will feed into Fortis Alberta and airport distribution systems.

 

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UK peak power prices rise to second highest level since 2018

UK Peak Power Prices surged as low wind speeds forced National Grid to rely on gas-fired plants and coal generation, amid soaring wholesale gas prices and weak wind generation during the energy crisis.

 

Key Points

UK Peak Power Prices are electricity costs at peak hours, driven by wind output, gas reliance, and market dynamics.

✅ Spikes when wind generation drops and demand rises.

✅ Driven by gas-fired plants, coal backup, and wholesale gas prices.

✅ Moderate as wind output recovers and interconnectors supply.

 

Low wind speeds pushed peak hour power prices to the second highest level for at least three years on Monday, a move consistent with UK electricity prices hitting a 10-year high earlier this year, as Britain’s grid was forced to increase its reliance on gas-fired power plants and draw on coal generation.

Calm weather this year has exacerbated the energy price crisis in the UK, as gas-fired power stations have had to pick up the slack from wind farms. Energy demand has surged as countries open up from pandemic restrictions, which together with lower supplies from Russia to western Europe, has sent wholesale gas prices soaring.

Power prices in the UK for the peak evening period between 5pm and 6pm on Monday surpassed £2,000 per megawatt hour, only the second time they have exceeded that level in recent years.

This was still below the levels reached at the height of the gas price crisis in mid-September, when they hit £2,500/MWh, according to the energy consultancy Cornwall Insight, whose records date back to 2018.

Low wind speeds were the main driver behind Monday’s price spike, although expectations of a pick-up in wind generation on Tuesday, after recent record wind generation days, should push them back down to similar levels seen in recent weeks, analysts said.

Despite the expansion of renewables, such as wind and solar, over the past decade, with instances of wind leading the power mix in recent months, gas remains the single biggest source of electricity generation in Britain, typically accounting for nearly 40 per cent of output.

At lunchtime on Monday, gas-fired power plants were producing nearly 55 per cent of electricity, while coal accounted for 3 per cent, reflecting more power from wind than coal in 2016 milestones. Britain’s wind farms were contributing 1.67 gigawatts or just over 4 per cent, according to data from the Drax Electrics Insights website. Over the past 12 months, wind farms have produced 21 per cent of the UK’s electricity on average.

National Grid, which manages the UK’s electricity grid, has been forced on a number of occasions in recent months to ask coal plants to fire up to help offset the loss of wind generation, after issuing a National Grid short supply warning to the market. The government announced in June that it planned to bring forward the closure of the remaining coal stations to the end of September 2024.

Ministers also committed this year to making Britain’s electricity grid “net zero carbon” by 2035, and milestones such as when wind was the main source underline the transition, although some analysts have pointed out that would not signal the end of gas generation.

Since the start of the energy crisis in August, 20 energy suppliers have gone bust as they have struggled to secure the electricity and gas needed to supply customers at record wholesale prices, with further failures expected in coming weeks.

Phil Hewitt, director of the consultancy EnAppSys, said Monday’s high prices would further exacerbate pressures on those energy suppliers that do not have adequate hedging strategies. “This winter is a good time to be a generator,” he added.

Energy companies including Orsted of Denmark and SSE of the UK have reported some of the lowest wind speeds for at least two decades this year, even though record output during Storm Malik highlighted the system's volatility.

According to weather modelling group Vortex, the strength of the wind blowing across northern Europe has fallen by as much as 15 per cent on average in places this year, which some scientists suggest could be due to climate change.
 

 

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Britain Prepares for High Winter Heating and Electricity Costs

UK Energy Price Cap drives household electricity bills and gas prices, as Ofgem adjusts unit rates amid natural gas shortages, Russia-Ukraine disruptions, inflation, recession risks, and limited storage; government support offers only short-term relief.

 

Key Points

The UK Energy Price Cap limits per-unit gas and electricity charges set by suppliers and adjusted by Ofgem.

✅ Reflects wholesale natural gas costs; varies quarterly

✅ Protects consumers from sudden electricity and heating bill spikes

✅ Does not cap total annual spend; usage still determines bills

 

The government organization that controls the cost of energy in Great Britain recently increased what is known as a price cap on household energy bills. The price cap is the highest amount that gas suppliers can charge for a unit of energy.

The new, higher cost has people concerned that they may not be able to pay for their gas and electricity this winter. Some might pay as much as $4,188 for energy next year. Earlier this year, the price cap was at $2,320, and a 16% decrease in bills is anticipated in April.

Why such a change?

Oil and gas prices around the world have been increasing since 2021 as economies started up again after the coronavirus pandemic. More business activities required more fuel.

Then, Russia invaded Ukraine in late February, creating a new energy crisis. Russia limited the amount of natural gas it sent to European countries that needed it to power factories, produce electricity and keep homes warm.

Some energy companies are charging more because they are worried that Russia might completely stop sending gas to European countries. And in Britain, prices are up because the country does not produce much gas or have a good way to store it. As a result, Britain must purchase gas often in a market where prices are high, and ministers have discussed ending the gas-electricity price link to ease bills.

Citibank, a U.S. financial company, believes the higher energy prices will cause inflation in Britain to reach 18 percent in 2023, while EU energy inflation has also been driven higher by energy costs this year. And the Bank of England says an economic slowdown known as a recession will start later this year.

Public health and private aid organizations worry that high energy prices will cause a “catastrophe” as Britons choose between keeping their homes warm and eating enough food.

What can government do?

As prices rise, the British government plans to give people between $450 and $1,400 to help pay for energy costs, while some British MPs push to further restrict the price charged for gas and electricity. But the help is seen by many as not enough.

If the government approves more money for fuel, it will probably not come until September, as the energy security bill moves toward becoming law. That is the time the Conservative Party will select a new leader to replace Prime Minister Boris Johnson.

The Labour Party says the government should increase the amount it provides for people to pay for fuel by raising taxes on energy companies. However, the two politicians who are trying to become the next Prime Minister do not seem to support that idea.

Giovanna Speciale leads an organization called the Southeast London Community Energy group. It helps people pay their bills. She said the money will help but it is only a short-term solution to a bigger problem with Britain’s energy system. Because the system is privately run, she said, “there’s very little that the government can do to intervene in this.”

Other European countries are seeing higher energy costs, but not as high, and at the EU level, gas price cap strategies have been outlined to tackle volatility. In France, gas prices are capped at 2021 levels. In Germany, prices are up by 38 percent since last year. However, the government is reducing some taxes, which will make it easier for the average person to buy gas. In Italy, prices are going up, but the government recently approved over $8 billion to help people pay their energy bills.
 

 

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California faces huge power cuts as wildfires rage

California Wildfire Power Shut-Offs escalate as PG&E imposes blackouts amid high winds, Getty and Kincade fires, mass evacuations, Sonoma County threats, and a state of emergency, drawing regulatory scrutiny over grid safety and outage scope.

 

Key Points

Planned utility outages to curb wildfire risk during extreme winds, prompting evacuations and regulatory scrutiny.

✅ PG&E preemptive blackouts under regulator inquiry

✅ Getty and Kincade fires drive mass evacuations

✅ Sonoma County under threat amid high winds

 

Pacific Gas & Electric (PG&E) already faces an investigation by regulators after cutting supplies to 970,000 homes and businesses amid California blackouts that raised concerns.

It announced that another 650,000 properties would face precautionary shut-offs.

Wildfires fanned by the strong winds are raging in two parts of the state.

Thousands of residents near the wealthy Brentwood neighbourhood of Los Angeles have been told to evacuate because of a wildfire that began early on Monday.

Further north in Sonoma County, a larger fire has forced 180,000 people from their homes.

California's governor has declared a state-wide emergency.

 

What about the power cuts?

On Monday regulators announced a formal inquiry into whether energy utilities broke rules by pre-emptively cutting power to an estimated 2.5 million people, amid a blackouts policy debate that intensified, as wildfire risks soared.

They did not name any utilities but analysts said PG&E was responsible for the bulk of the "public safety power shut-offs", and later faced a Camp Fire guilty plea that underscored its liabilities.

The company filed for bankruptcy in January after facing hundreds of lawsuits from victims of wildfires in 2017 and 2018.

Of the 970,000 properties hit by the most recent cuts, under half had their services back by Monday, and some sought help through wildfire assistance programs, the Associated Press reported.

Despite criticism that the precautionary blackouts were too widespread and too disruptive, PG&E said more would come on Tuesday and Wednesday because further strong winds were expected.

The company said it had logged more than 20 preliminary reports of damage to its network from the most recent windstorm.

In a video posted to Twitter on Saturday, Governor Gavin Newsom said the power cuts were "infuriating everyone, and rightfully so".

 

Where are the fires now?

In Los Angeles, the Getty Fire has burned over 600 acres (242 ha) and about 10,000 buildings are in the mandatory evacuation zone.

At least eight homes have been destroyed and five others damaged.

"If you are in an evacuation zone, don't screw around," Mr Schwarzenegger tweeted. "Get out."

LA fire chief Ralph Terrazas said fire crews had been "overwhelmed" by the scale of the fires.

"They had to make some tough decisions on which houses they were able to protect," he said.

"Many times it depends on where the ember lands. I saw homes that were adjacent to homes that were totally destroyed, without any damage."

In northern California, schools remain closed in Sonoma County, where tens of thousands of homes and businesses are under threat.

Sonoma has been ravaged by the Kincade Fire, which started on Wednesday and has burned through 50,000 acres of land, fanned by the winds.

The Kincade Fire began seven minutes after a nearby power line was damaged, and power lines may have started fires according to reports, but PG&E has not yet confirmed if the power glitch started the blaze.

About 180,000 people have been ordered to evacuate, with roads around Santa Rosa north of San Francisco packed with cars as people tried to flee.

There are fears the flames could cross the 101 highway and enter areas that have not seen wildfires since the 1940s.

 

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Alberta creates fund to help communities hit by coal phase-out

Alberta Coal Community Transition Fund backs renewables, natural gas, and economic diversification, offering grants, workforce retraining, and community development to municipalities and First Nations as Alberta phases out coal-fired power by 2030.

 

Key Points

A provincial grant helping coal-impacted communities diversify, retrain workers, and transition to renewables by 2030.

✅ Grants for municipalities and First Nations

✅ Supports diversification and job retraining

✅ Focus on renewables, natural gas, and new sectors

 

The Coal Community Transition Fund is open to municipalities and First Nations affected as Alberta phases out coal-fired electricity by 2030 under the federal coal plan to focus on renewables and natural gas.

Economic Development Minister Deron Bilous says the government wants to ensure these communities thrive through the transition, aligning with views that fossil-fuel workers support the energy transition across the economy.

“Residents in our communities have concerns about the transition away from coal, even as discussions about phasing out fossil fuels in B.C. unfold nationally,” Rod Shaigec, mayor of Parkland County, said.

“They also have ideas on how we can mitigate the impacts on workers and diversify our economy, including clean energy partnerships to create new employment opportunities for affected workers. We are working to address those concerns and support their ideas. This funding means we can make those ideas a reality in various economic sectors of opportunity.”

The coal-mining town of Hanna, northeast of Calgary, has already received $450,000 through the program to work on economic diversification, exploring options like bridging the Alberta-B.C. electricity gap that could support new industries.

The application deadline for the coal transition fund is the end of November.

A provincial advisory panel is also expected to report back this fall on ways to create new jobs and retrain workers during the coal phase-out.

 

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