Duke Energy Ohio reaches agreement on security plan

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Duke Energy Ohio announced that a settlement agreement has been reached with most intervening parties, the Staff of the Public Utilities Commission of Ohio (PUCO) and the Ohio Consumers' Counsel on its electric security plan under Ohio's new energy law.

The agreement, which establishes generation rates for 2009 through 2011, must be approved by the PUCO.

Under the terms of the settlement, the base cost for generation service will increase by approximately 2 percent of the total bill annually in 2009 and in 2010 for residential customers, and each year from 2009 through 2011 for non-residential customers. The company's original application requested an increase of 6 percent in 2009, 2 percent in 2010 and a decrease of 2 percent in 2011.

The bill for generation service will continue to include cost-based trackers for fuel and purchased power, capacity purchases, and environmental compliance expenditures.

"This agreement establishes reasonable prices for dedicated sources of energy supply while providing additional funding to assist low income customers in this challenging economy," said Sandra Meyer, president of Duke Energy Ohio. "It will also provide Duke Energy with the resources to develop energy efficiency programs that will help all customers reduce overall usage and energy bills."

Under the terms of the settlement, the typical monthly cost for a residential customer using 1,000 kilowatt-hours will be $123.40 in January 2009, compared with the current monthly bill of $120.98. This comparison does not include the impact of Duke Energy Ohio's recent delivery rate filing of approximately 5 percent for a typical residential customer that is expected to be effective in second quarter 2009.

Over the three-year term of the agreement Duke Energy will contribute $2.1 million to assist low-income customers pay their electricity bills. Area community action agencies will administer the funds for distribution to eligible Duke Energy customers. In addition, low-income weatherization and energy efficiency funding will increase to $1 million per year.

The agreement includes funding for a new infrastructure modernization program that will begin the installation of Smart Grid technology. The new technology is an interactive digital system that can communicate with customers about their energy usage, monitor power quality, identify power outages, turn service on/off remotely, read meters continuously, and support energy efficiency. As a benefit of this program, tighter distribution system reliability targets are established in the settlement.

The agreement also replaces the existing energy efficiency tracker with a new Save-a-Watt model that will compensate Duke Energy based on the success of its energy efficiency programs.

The new energy efficiency programs, to include interruptible tariffs for business customers, will help customers lower their overall bills and will help Duke Energy achieve the significant energy efficiency targets established by Ohio's new energy law.

The settlement includes plans to develop an Electronic Bulletin Board that will help consumers compare competitor pricing for electric generation supply. Also, an economic development rate mechanism is established under the settlement to fund any individual arrangements or programs approved by the PUCO.

The agreement provides for an economic development grant to the city of Cincinnati. If approved by the PUCO, half of the grant to the city of Cincinnati will be recoverable in rates, while half will be borne by Duke Energy Ohio.

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Opinion: Fossil-fuel workers ready to support energy transition

Canada Net-Zero Transition unites energy workers, R&D, and clean tech to decarbonize steel and cement with hydrogen, scale renewables, and build hybrid storage, delivering a just transition that strengthens communities and the economy.

 

Key Points

A national plan to reach net-zero by 2050 via renewables, hydrogen, decarbonization, and a just transition for workers.

✅ Hydrogen for steel and cement decarbonization

✅ Hybrid energy storage and clean tech R&D

✅ Just transition pathways for energy workers

 

Except for an isolated pocket of skeptics, there is now an almost universal acceptance that climate change is a global emergency that demands immediate and far-reaching action to defend our home and future generations. Yet in Canada we remain largely focused on how the crisis divides us rather than on the potential for it to unite us, despite nationwide progress in electricity decarbonization efforts.

It’s not a case of fossil-fuel industry workers versus the rest, or Alberta versus British Columbia where bridging the electricity gap could strengthen cooperation. We are all in this together. The challenge now is how to move forward in a way that leaves no one behind.

The fossil fuel industry has been — and continues to be — a key driver of Canada’s economy. Both of us had successful careers in the energy sector, but realized, along with an increasing number of energy workers, that the transition we need to cope with climate change could not be accomplished solely from within the industry.

Even as resource companies innovate to significantly reduce the carbon burden of each barrel, the total emission of greenhouse gases from all sources continues to rise. We must seize the opportunity to harness this innovative potential in alternative and complementary ways, mobilizing research and development, for example, to power carbon-intensive steelmaking and cement manufacture from hydrogen or to advance hybrid energy storage systems and decarbonizing Canada's electricity grid strategies — the potential for cross-over technology is immense.

The bottom line is inescapable: we must reach net-zero emissions by 2050 in order to prevent runaway global warming, which is why we launched Iron & Earth in 2016. Led by oilsands workers committed to increasingly incorporating renewable energy projects into our work scope, our non-partisan membership now includes a range of industrial trades and professions who share a vision for a sustainable energy future for Canada — one that would ensure the health and equity of workers, our families, communities, the economy, and the environment.

Except for an isolated pocket of skeptics, there is now an almost universal acceptance that climate change is a global emergency that demands immediate and far-reaching action, including cleaning up Canada's electricity to meet climate pledges, to defend our home and future generations. Yet in Canada we remain largely focused on how the crisis divides us rather than on the potential for it to unite us.

It’s not a case of fossil-fuel industry workers versus the rest, or Alberta versus British Columbia. We are all in this together. The challenge now is how to move forward in a way that leaves no one behind.

The fossil fuel industry has been — and continues to be — a key driver of Canada’s economy. Both of us had successful careers in the energy sector, but realized, along with an increasing number of energy workers, that the transition we need to cope with climate change could not be accomplished solely from within the industry.

Even as resource companies innovate to significantly reduce the carbon burden of each barrel, the total emission of greenhouse gases from all sources continues to rise, underscoring that Canada will need more electricity to hit net-zero, according to the IEA. We must seize the opportunity to harness this innovative potential in alternative and complementary ways, mobilizing research and development, for example, to power carbon-intensive steelmaking and cement manufacture from hydrogen or to advance hybrid energy storage systems — the potential for cross-over technology is immense.

The bottom line is inescapable: we must reach net-zero emissions by 2050 in order to prevent runaway global warming, which is why we launched Iron & Earth in 2016. Led by oilsands workers committed to increasingly incorporating renewable energy projects into our work scope, as calls for a fully renewable electricity grid by 2030 gain attention, our non-partisan membership now includes a range of industrial trades and professions who share a vision for a sustainable energy future for Canada — one that would ensure the health and equity of workers, our families, communities, the economy, and the environment.

 

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Typical Ontario electricity bill set to increase nearly 2% as fixed pricing ends

Ontario Electricity Rates update: OEB sets time-of-use and tiered pricing for residential customers, with kWh charges for peak, mid-peak, and off-peak periods reflecting COVID-19 impacts on demand, supply costs, and pricing.

 

Key Points

Ontario Electricity Rates are OEB-set time-of-use and tiered prices that set per-kWh costs for residential customers.

✅ Time-of-use: 21.7 peak, 15.0 mid-peak, 10.5 off-peak cents/kWh

✅ Tiered: 12.6 cents/kWh up to 1000 kWh, then 14.6 cents/kWh

✅ Average 700 kWh home pays about $2.24 more per month

 

Energy bills for the typical Ontario home are going up by about two per cent with fixed pricing coming to an end on Nov. 1, the Ontario Energy Board says. 

The province's electricity regulator has released new time-of-use pricing and says the rate for the average residential customer using 700 kWh per month will increase by about $2.24.

The change comes as Ontario stretches into its eight month of the COVID-19 pandemic with new case counts reaching levels higher than ever seen before.

Time-of-use pricing had been scrapped for residential bills for much for the pandemic with a single fixed COVID-19 hydro rate set for all hours of the day. The move, which came into effect June 1, was meant "to support families, small business and farms while Ontario plans for the safe and gradual reopening of the province," the OEB said at the time.

Ontario later set the off-peak price until February 7 around the clock to provide additional relief.

Fixed pricing meant customers' bills reflected how much power they used, rather than when they used it. Customers were charged 12.8 cents/kWh under the COVID-19 recovery rate no matter their time of use.

Beginning November, the province says customers can choose between time-of-use and tiered pricing options. Rates for time-of-use plans will be 21.7 cents/kWh during peak hours, 15 cents/kWh for mid-peak use and 10.5 cents/kWh for off-peak use. 

Customers choosing tiered pricing will pay 12.6 cents/kWh for the first 1000 kWh each month and then 14.6 cents/kWh for any power used beyond that.

The energy board says the increase in pricing reflects "a combination of factors, including those associated with the COVID-19 pandemic, that have affected demand, supply costs and prices in the summer and fall of 2020."

Asked for his reaction to the move Tuesday, Premier Doug Ford said, "I hate it," adding the province inherited an energy "mess" from the previous Liberal government and are "chipping away at it."

 

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Improve US national security, step away from fossil fuels

American Green Energy Independence accelerates electrification and renewable energy, leveraging solar, wind, and EVs to boost energy security, cut emissions, create jobs, and reduce reliance on volatile oil and natural gas markets influenced by geopolitics.

 

Key Points

American Green Energy Independence is a strategy to electrify, expand renewables, and enhance energy security.

✅ Electrifies vehicles, appliances, and infrastructure

✅ Expands solar, wind, and storage to stabilize grids

✅ Cuts oil dependence, strengthens energy security and jobs

 

As Putin's heavy hand uses Russia's power over oil and natural gas as a weapon against Europe, which is facing an energy nightmare across its markets, and the people of Ukraine, it's impossible not to wonder how we can mitigate the damages he's causing. Simultaneously, it's a devastating reminder of the freedom we so often take for granted and a warning to increase our energy independence as a nation. There are many ways we can, but one of the best is to follow the lead of the European Union and quicken our transition to green and renewable energies.

We've known it for a long time: our reliance on fossil fuels is a national security risk. Volatile prices coupled with our extreme demand mean that concerns over fossil fuel access have driven foreign policy decisions. We've seen it happen countless times — most notably during the wars in Iraq and Afghanistan — and it's played out again in Ukraine, which has leaned on imports to keep the lights on during the crisis. Concerned by Russia's power over the oil and natural gas market, the US and Europe were quite reluctant to impose the harshest, most recent sanctions because doing so will hurt their citizens' pocketbooks.

As homeowners, we know how much decisions like these can hurt, especially with gas prices being historically high even as an energy crisis isn't spurring a green shift for many consumers. However, the solution to this problem isn't to drill more, as some well-funded oil and gas interest groups have claimed. Doing so likely won't even provide a short-term solution to the problem as it takes six months to a year at minimum to build a new well with all its associated infrastructure.

The best long-term solution is to declare our independence from the global oil market amid a global energy war that is driving price hikes and invest in American-made clean energy. We need to electrify our vehicles, appliances, and infrastructure, and make America fully energy independent. This will save families thousands of dollars a year, make our country more self-sufficient, and provide hundreds of thousands of quality jobs here in the Midwest.

Already, over 600,000 Midwesterners are employed in clean-energy professions, and they make 25 percent more than the national median wage. Nationally, clean energy is the biggest job creator in our country's energy sector, employing almost three times as many workers as the fossil fuel industry.

As we employ our own citizens, we will defund Putin's Russia, which has long been funded by his powerful oil and gas industry. Instead of diversifying his economy during the oil boom of the 2010s, Putin doubled down on petroleum. We should exploit his weakness by leading a global movement to abandon the very resource that funds his warmongering. Doing so will further destabilize his economy and protect the citizens of Ukraine, especially as they prepare for winter amid energy challenges today.

We can start doing this as everyday consumers by seeking electric options like stoves, cars, or other appliances. Congress should help Americans afford these changes by providing tax credits for everyday Americans and innovators in electric vehicle and green energy industries. Doing so will spur innovation in the industry, further reducing the cost to consumers. We should also ensure that our semiconductors, solar panels, wind turbines, and other technology needed for a green future are manufactured and assembled in America. This will ensure that our energy industry is safe from price or supply shocks and reduce brownout risks linked to disruptions caused by an international crisis like the invasion of Ukraine.

In many ways, our next steps as a country can define world history for generations to come. Will we continue our reliance on oil and its tacit support of Putin's economy? Or will we intensify our shift to green energies and make our country more self-sufficient and secure? The global spotlight is on us once again to lead. We hope our country will honor the lives of its veterans and the soldiers fighting in Ukraine by strengthening energy security support and transitioning towards green energy.

 

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Hydroelectricity Under Pumped Storage Capacity

Pumped Storage Hydroelectricity balances renewable energy, stabilizes the grid, and provides large-scale energy storage using reservoirs and reversible turbines, delivering flexible peak power, frequency control, and rapid response to variable wind and solar generation.

 

Key Points

A reversible hydro system that stores energy by pumping water uphill, then generates flexible peak power.

✅ Balances variable wind and solar with rapid ramping

✅ Stores off-peak electricity in upper reservoirs

✅ Enhances grid stability, frequency control, and reserves

 

The expense of hydroelectricity is moderately low, making it a serious wellspring of sustainable power. The hydro station burns-through no water, dissimilar to coal or gas plants. The commonplace expense of power from a hydro station bigger than 10 megawatts is 3 to 5 US pennies for every kilowatt hour, and Niagara Falls powerhouse upgrade projects show how modernization can further improve efficiency and reliability. With a dam and supply it is likewise an adaptable wellspring of power, since the sum delivered by the station can be shifted up or down quickly (as meager as a couple of moments) to adjust to changing energy requests.

When a hydroelectric complex is developed, the task creates no immediate waste, and it for the most part has an extensively lower yield level of ozone harming substances than photovoltaic force plants and positively petroleum product fueled energy plants, with calls to invest in hydropower highlighting these benefits. In open-circle frameworks, unadulterated pumped storage plants store water in an upper repository with no normal inflows, while pump back plants use a blend of pumped storage and regular hydroelectric plants with an upper supply that is renewed to a limited extent by common inflows from a stream or waterway.

Plants that don't utilize pumped capacity are alluded to as ordinary hydroelectric plants, and initiatives focused on repowering existing dams continue to expand clean generation; regular hydroelectric plants that have critical capacity limit might have the option to assume a comparable function in the electrical lattice as pumped capacity by conceding yield until required.

The main use for pumped capacity has customarily been to adjust baseload powerplants, however may likewise be utilized to decrease the fluctuating yield of discontinuous fuel sources, while emerging gravity energy storage concepts broaden long-duration options. Pumped capacity gives a heap now and again of high power yield and low power interest, empowering extra framework top limit.

In specific wards, power costs might be near zero or once in a while negative on events that there is more electrical age accessible than there is load accessible to retain it; despite the fact that at present this is infrequently because of wind or sunlight based force alone, expanded breeze and sun oriented age will improve the probability of such events.

All things considered, pumped capacity will turn out to be particularly significant as an equilibrium for exceptionally huge scope photovoltaic age. Increased long-distance bandwidth, including hydropower imports from Canada, joined with huge measures of energy stockpiling will be a critical piece of directing any enormous scope sending of irregular inexhaustible force sources. The high non-firm inexhaustible power entrance in certain districts supplies 40% of yearly yield, however 60% might be reached before extra capaciy is fundamental.

Pumped capacity plants can work with seawater, despite the fact that there are extra difficulties contrasted with utilizing new water. Initiated in 1966, the 240 MW Rance flowing force station in France can incompletely function as a pumped storage station. At the point when elevated tides happen at off-top hours, the turbines can be utilized to pump more seawater into the repository than the elevated tide would have normally gotten. It is the main enormous scope power plant of its sort.

Alongside energy mechanism, pumped capacity frameworks help control electrical organization recurrence and give save age. Warm plants are substantially less ready to react to abrupt changes in electrical interest, and can see higher thermal PLF during periods of reduced hydro generation, conceivably causing recurrence and voltage precariousness.

Pumped storage plants, as other hydroelectric plants, including new BC generating stations, can react to stack changes in practically no time. Pumped capacity hydroelectricity permits energy from discontinuous sources, (for example, sunlight based, wind) and different renewables, or abundance power from consistent base-load sources, (for example, coal or atomic) to be put something aside for times of more popularity.

The repositories utilized with siphoned capacity are tiny when contrasted with ordinary hydroelectric dams of comparable force limit, and creating periods are regularly not exactly a large portion of a day. This technique produces power to gracefully high top requests by moving water between repositories at various heights.

Now and again of low electrical interest, the abundance age limit is utilized to pump water into the higher store. At the point when the interest gets more noteworthy, water is delivered once more into the lower repository through a turbine. Pumped capacity plans at present give the most monetarily significant methods for enormous scope matrix energy stockpiling and improve the every day limit factor of the age framework. Pumped capacity isn't a fuel source, and shows up as a negative number in postings.

 

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First US coal plant in years opens where no options exist

Alaska Coal-Fired CHP Plant opens near Usibelli mine, supplying electricity and district heat to UAF; remote location without gas pipelines, low wind and solar potential, and high heating demand shaped fuel choice.

 

Key Points

A 17 MW coal CHP at UAF producing power and campus heat, chosen for remoteness and lack of gas pipelines.

✅ 17 MW generator supplying electricity and district heat

✅ Near Usibelli mine; limited pipeline access shapes fuel

✅ Alternative options like LNG, wind, solar not cost-effective

 

One way to boost coal in the US: Find a spot near a mine with no access to oil or natural gas pipelines, where it’s not particularly windy and it’s dark much of the year.

That’s how the first coal-fired plant to open in the U.S. since 2015 bucked the trend in an industry that’s seen scores of facilities close in recent years. A 17-megawatt generator, built for $245 million, is set to open in April at the University of Alaska Fairbanks, just 100 miles from the state’s only coal mine.

“Geography really drove what options are available to us,” said Kari Burrell, the university’s vice chancellor for administrative services, in an interview. “We are not saying this is ideal by any means.”

The new plant is arriving as coal fuels about 25 percent of electrical generation in the U.S., down from 45 percent a decade earlier, even as some forecasts point to a near-term increase in coal-fired generation in 2021. A near-record 18 coal plants closed in 2018, and 14 more are expected to follow this year, according to BloombergNEF.

The biggest bright spot for U.S. coal miners recently has been exports to overseas power plants. At home, one of the few growth areas has been in pizza ovens.

There are a handful of other U.S. coal power projects that have been proposed, including plans to build an 850 megawatt facility in Georgia and an 895 megawatt plant in Kansas, even as a Minnesota utility reports declining coal returns across parts of its portfolio. But Ashley Burke, a spokeswoman for the National Mining Association, said she’s unaware of any U.S. plants actively under development besides the one in Alaska.

 

Future of power

“The future of power in the U.S. does not include coal,” Tessie Petion, an analyst for HSBC Holdings Plc, said in a research note, a view echoed by regions such as Alberta retiring coal power early in their transition.

Fairbanks sits on the banks of the Chena River, amid the vast subarctic forests in the heart of Alaska. The oil and gas fields of the state’s North slope are 500 miles north. The nearest major port is in Anchorage, 350 miles south.

The university’s new plant is a combined heat and power generator, which will create steam both to generate electricity and heat campus buildings. Before opting for coal, the school looked into using liquid natural gas, wind and solar, bio-mass and a host of other options, as new projects in Southeast Alaska seek lower electricity costs across the region. None of them penciled out, said Mike Ruckhaus, a senior project manager at the university.

The project, financed with university and state-municipal bonds, replaces a coal plant that went into service in 1964. University spokeswoman Marmian Grimes said it’s worth noting that the new plant will emit fewer emissions.

The coal will come from Usibelli Coal Mine Inc., a family-owned business that produces between 1.2 and 2 million tons per year from a mine along the Alaska railroad, according to the company’s website.

While any new plant is good news for coal miners, Clarksons Platou Securities Inc. analyst Jeremy Sussman said this one is "an isolated situation."

“We think the best producers can hope for domestically is a slow down in plant closures,” he said, even as jurisdictions like Alberta close their last coal plant entirely.

 

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Kenney holds the power as electricity sector faces profound change

Alberta Electricity Market Reform reshapes policy under the UCP, weighing a capacity market versus energy-only design, AESO reliability rules, renewables targets, coal phase-out, carbon pricing, consumer rates, and investment certainty before AUC decisions.

 

Key Points

Alberta Electricity Market Reform is the UCP plan to reassess capacity vs energy-only, renewables, and carbon pricing.

✅ Reviews capacity market timeline and AESO procurement

✅ Alters subsidies for renewables; slows wind and solar growth

✅ Adjusts industrial carbon levy; audits Balancing Pool losses

 

Hearings kicked off this week into the future of the province’s electricity market design, amid an electricity market reshuffle pledged by the province, but a high-stakes decision about the industry’s fate — affecting billions of dollars in investment and consumer costs — won’t be made inside the meeting room of the Alberta Utilities Commission.

Instead, it will take place in the office of Jason Kenney, as the incoming premier prepares to pivot away from the seismic reforms to Alberta’s electricity sector introduced by the Notley government.

The United Conservative Party has promised to adopt market-based policies, reflecting changes to how Alberta produces and pays for power, that will reset how the sector operates, from its approach to renewable energy and carbon pricing to re-evaluating the planned transition to an electricity “capacity market.”

“Every ball in electricity is up in the air right now,” Vittoria Bellissimo, of the Industrial Power Consumers Association of Alberta, said Tuesday during a break in the commission hearings.

Industry players are uncertain how quickly the UCP will change direction on power policies, but there’s little doubt Kenney’s government will take a strikingly different approach to the sector that keeps the lights on in Alberta.

“There’s some things they are going to change that are going to impact the electricity industry significantly,” said Duane Reid-Carlson, chief executive of consultancy EDC Associates.

“But I don’t think it’s going to be upheaval. I think the new government will proceed with caution because electricity is the foundation of our economy.”

Alberta’s electricity market has been turned on its head in recent years due to the recession, power prices dropping to near two-decade lows and several transformative policies initiated by the NDP.

The Notley government’s climate plan included an accelerated phase-out of all coal-fired generation and set targets for more renewable energy.

The most significant, but least-understood, move has been the planned shift to an electricity capacity market in 2021.

Under the strategy, generators will no longer solely be paid for the power produced and sold into the market; they will also receive payments for having electricity capacity available to the grid on demand.

The change was recommended by the Alberta Electric System Operator (AESO) as a way to reduce price volatility and provide more reliability than the current energy-only market, which some argue needs more competition to deliver better outcomes.

The independent system operator and industry officials have spent more than two years planning the transition since the switch was announced in late 2016. Proposed rules for the new system, outlining market changes, are now being discussed at the Alberta Utilities Commission hearings.

However, there is no ironclad guarantee the system remake will go ahead following the UCP’s election victory last week — amid calls to scrap the overhaul from a Calgary retailer — it plans to study the issue further — while other substantive electricity changes are already in store.

The UCP has promised to end “costly subsidies” to renewable energy developments and abandon the NDP’s pledge to have such energy sources make up 30 per cent of all power generation by 2030.

It will remove the planned phase-out of coal-fired electricity generation, although federal regulations for a 2030 prohibition remain in place.

It will also ask the auditor general to conduct a special audit of the massive losses sustained by the province’s Balancing Pool due to power purchase arrangements being handed back to the agency three years ago.

While Kenney has pledged to cancel the provincewide carbon tax, a levy on large industrial greenhouse gas emitters (such has power plants) will still be charged, although at a reduced rate of $20 a tonne.

The biggest unknown remains the power market’s structure, which underpins how the entire system operates.

The UCP has promised to consult on the shift to the capacity market and report back to Albertans within 90 days.

The complex issue may sound like an eye-glazer, but it will have a profound effect on industry investment, as well as how much consumers pay on their monthly electricity bills.

A number of industry players worry the capacity market will lead AESO to procure more power than is necessary, foisting unnecessary costs onto all Albertans.

“I still have concerns for what the impact on consumers is going to be,” said energy market consultant Sheldon Fulton. “I’d love to see the capacity market go away.”

An analysis by EDC Associates found the transition to a capacity market will procure additional electricity before it’s needed, requiring consumers to pay up to 40 per cent more — an extra $1.4 billion — for power in 2021-22 than under the existing market structure.

“I don’t think there’s any prejudged outcome,” said Blake Shaffer, former head trader at TransAlta Corp. and a fellow-in-residence at the C.D. Howe Institute.

“But it really matters about getting this right.”

Evan Bahry, executive director of the Independent Power Producers Society of Alberta, said the fact the UCP’s review was confined to just 90 days is helpful, as it avoids throwing the entire industry into a prolonged period of uncertainty.

As for the greening of Alberta’s power grid, amid growing attention to clean grids and storage, the demise of the NDP’s Renewable Electricity Program will likely slow down the rapid pace of wind and solar development. But it’s unlikely to stop the growth trend as costs continue to fall for such developments.

“Renewables over the last number of years have evolved to the point that they make sense on a subsidy-free basis,” said Dan Balaban, CEO of Greengate Power Corp., which has developed 480 MW of wind power in Alberta and Ontario.

“There is a path to clean electricity ahead.”

Chris Varcoe is a Calgary Herald columnist.

 

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