Iraq signs $8 billion deals with Siemens and GE

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Iraq recently entered into several preliminary agreements worth $7 billion to $8 billion with General Electric Company, Siemens AG, and an undisclosed third company to procure equipment to double its power generation.

The three agreements will enable war-torn Iraq to upgrade its power grid and add about 10,000 megawatts (MW) of power generation capacity by 2012.

Earlier this month, Iraq entered into a memorandum of understanding with GE to supply turbines for power generation of 6,800 MW. The unit cost of this purchase is reported to be between $700,000 and $800,000 per MW of power, which puts the total value of the deal at $4.76 billion to $5.44 billion.

Iraq has also entered into a deal with Siemens to procure equipment for power generation of 2,000 MW at a cost of $1.4 billion to $1.6 billion. The country is also reported to be in talks with a third firm to provide equipment for power generation of 1,000 MW. Iraq plans to approach engineering, procurement and construction firms to set up the proposed power projects once the deals with GE, Siemens, and the third firm are finalized.

Oil authorities from Iraq are scheduled to meet officials of Technopromexport on October 12 to review and revive a $124 million deal for repair works of 400 MW of power generation capacity at Basra. The deal was one among several that were frozen because of the invasion of the country led by the U.S. in March 2003.

Iraq is also in talks with Power Machines Company to revive another similarly frozen deal for the development of two power projects with a generation capacity of 160 MW each in the north of the country.

In June this year, Iraq signed a deal worth $480 million with GE to set up three power plants in various locations including southern Baghdad, Taji in the north of Baghdad, and in the southern city of Kerbala. It was also in talks with Hyundai Heavy Industries Company Limited for the supply of diesel generators. The projects are slated for completion between the end of 2009 and early 2010.

Iraq also entered into two more contracts with GE, each valued at $41 million, for the supply of spare parts for the three proposed power projects. In May, Iraq signed a $253 million contract with GE to purchase eight natural gas-fed generators, most of which are to be installed in Baghdad.

Iraq's bid to reconstruct its power grid and enhance its power generation capacity comes at a time when the country is facing chronic power shortages with only a few hours of electricity available to the capital city of Baghdad on a daily basis.

Power generation in Iraq currently stands at 5,500 MW, whereas demand is as high as 11,000 MW. GE and Siemens were among the several international players who had to pull their workforce from Iraq when it became dangerous during and after the U.S.-led invasion. However, increased security arrangements are being made in Baghdad to lure back international companies to develop projects in the country.

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Europe's largest shore power plant opens

AIDAsol shore power Rostock-Warnemfcnde delivers cold ironing for cruise ships, up to 20 MVA at berths P7 and P8, cutting port emissions during berthing and advancing AIDA's green cruising strategy across European ports.

 

Key Points

Rostock-Warnemfcnde shore power supplies two cruise ships up to 20 MVA, enabling cold ironing and cutting emissions.

✅ Up to 20 MVA; powers two cruise ships at berths P7 and P8

✅ Enables cold ironing for AIDA fleet to reduce berth emissions

✅ Part of AIDA green cruising with fuel cells and batteries

 

In a ceremony held in Rostock-Warnemünde yesterday during Germany’s 12th National Maritime Conference, the 2,174-passenger cruise ship AIDAsol inaugurated Europe’s largest shore power plants for ships.

The power plant has been established under a joint agreement between AIDA Cruises, a unit of Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the state government of Mecklenburg-Western Pomerania, the city of Rostock and the Port of Rostock.

“With our green cruising strategy, we have been investing in a sustainable cruise market for many years,” said AIDA Cruises President Felix Eichhorn. “The shore power plant in Rostock-Warnemünde is another important step — after the facility in Hamburg — on our way to an emission-neutral cruise that we want to achieve with our fleet. I would like to thank the state government of Mecklenburg-Western Pomerania and all partners involved for the good and trusting cooperation. Together, we are sending out an important signal, not just in Germany, but throughout Europe.”

CAN POWER TWO CRUISE SHIPS AT A TIME
The shore power plant, which was completed in summer 2020, is currently the largest in Europe and aligns with port electrification efforts such as the all-electric berth at London Gateway in the UK. With an output of up to 20 megavolt amperes (MVA), two cruise ships can be supplied with electricity at the same time at berths P7 and P8 in Warnemünde.

In regular passenger operation AIDAsol needs up to 4.5 megawatts per hour (MWh) of electricity.

The use of shore power to supply ships with energy is a decisive step in AIDA Cruises’ plans to reduce local emissions to zero during berthing, complementing recent progress with electric ships on the B.C. coast, as a cruise ship typically stays in port around 40% of its operating time.

As early as 2004, when the order for the construction of AIDAdiva was placed, and for all other ships put into service in subsequent years, the company has considered the use of shore power as an option for environmentally friendly ship operation.

Since 2017, AIDA Cruises has been using Europe’s first shore power plant in Hamburg-Altona, where AIDAsol is in regular operation, while operators like BC Ferries add hybrid ferries to expand low-emission service in Canada. Currently, 10 ships in the AIDA fleet can either use shore power where available or are technically prepared for it.

The aim is to convert all ships built from 2000 onwards, supporting future solutions like offshore charging with wind power.

With AIDA Cruises starting a cruise season from Kiel, Germany, on May 22, AIDAsol will also be the first cruise ship to complete the final tests on a newly built shore power plant there, as innovations such as Berlin’s electric flying ferry highlight the broader shift toward electrified waterways. Construction of that plant is the result of a joint initiative by the state government of Schleswig-Holstein, the city and the port of Kiel and AIDA Cruises. AIDAsol is scheduled to arrive in Kiel on the afternoon of May 13.

As part of its green cruising strategy, AIDA Cruises has been investing in a sustainable cruise operation for many years, paralleling urban shifts toward zero-emission bus fleets in Berlin. Other steps on the path to the zero emission ship of the future are already in preparation. This year, AIDAnova will receive the first fuel cell to be used on an ocean-going cruise ship. In 2022, the largest battery storage system to date in cruise shipping will go into operation on board an AIDA ship, similar to advances in battery-electric ferries in the U.S. In addition, the company is already addressing the question of how renewable fuels can be used on board cruise ships in the future.

 

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Ontario will not renew electricity deal with Quebec

Ontario-Quebec Electricity Trade Agreement ends as Ontario pivots to IESO procurement, hydropower alternatives, natural gas capacity, and energy auctions, impacting grid reliability, power imports, and GHG emissions across both provincial markets.

 

Key Points

A seven-year power import pact; Ontario will end it, shifting to IESO procurement and gas capacity.

✅ Seasonal hydropower exchange of 2.3 TWh annually.

✅ IESO projects Quebec supply constraints by decade end.

✅ Ontario adds gas, auctions; near-term sector GHGs rise.

 

The Ontario government does not plan to renew the Ontario-Quebec electricity trade agreement, Radio-Canada is reporting.

The seven-year contract, which expires next year, aims to reduce Ontario's greenhouse gas (GHG) emissions by buying 2.3 Terawatt-hours of electricity from Quebec annually — that corresponds to about seven per cent of Hydro-Quebec's average annual exports.

The announcement comes as the provincially owned Quebec utility continues its legal battle over a plan to export power to Massachusetts.

The Ontario agreement has guaranteed a seasonal exchange of energy, since Quebec has a power surplus in summer, and the province's electricity needs increase in the winter. Ontario plans on exercising its last and only option in the summer of 2026, for a block of 500 megawatts.

The office of the Ontario Minister of Energy Todd Smith says the province will save money by relying "on a competitive procurement process" instead, amid debates over clean, affordable electricity policy in Ontario. And, the Independent Electricity System Operator (IESO), the equivalent of Hydro-Quebec in Ontario, added that, at any rate, Quebec is expected to "run out of electricity in the middle or at the end of the decade."

During the Quebec election campaign, Premier Francois Legault said his province needed to increase hydroelectricity production because he is expecting demand for hydroelectricity to increase by an additional 100 terawatt-hours in the coming decades — half of Hydro-Quebec's current annual output.

Coalition Avenir Quebec pitches more hydro dams to Quebec voters
The provinces will still continue to buy and sell power, reaching deals through annual energy auctions.

Eloise Edom, an associate researcher at Polytechnique Montreal's Institut de l'energie Trottier, says the announcement came as somewhat of a surprise because "we're still talking about a lot of energy."

Hydro-Quebec refused to comment on "the SIERE [Independent Electricity System Operator]'s intentions for the agreement, which ends next year," said company spokesperson Lynn St-Laurent.

No green options
Yet Ontario is running out of electricity, even as questions persist about whether it is embracing clean power to meet demand, in part because of plans to refurbish nuclear reactors at the Bruce and Darlington generator stations.

Windsor has already lost out on a $2.5-billion factory because the region is short of electricity for new industrial loads. And by 2025, Toronto will run out of power for the electrification of its transit system, according to the latest estimates from the IESO.

The Ford government recently announced that it hopes to extend the life of the Pickering nuclear station amid ongoing debate. It is also evaluating the possibility of increasing hydroelectricity production at its existing dams.

For now, Ontario is banking on its natural gas plants to meet demand, which have won most recent IESO tenders for contracts running until 2026. Last Friday, the province announced that it was going to buy an additional 1,500 megawatts by 2027.

"The [Ontario energy] minister's expectations may be that the increase in natural gas prices is temporary and that it will fade," energy economist Jean-Thomas Bernard said. "With this in mind, he probably does not want to sign a long-term contract [with Hydro-Quebec] and prefers to buy electricity on a day-to-day basis and through calls for tenders."

If the Quebec deal expires, Ontario, Canada's second highest GHG emitter, would have to increase its emissions for the sector, at least in the medium term, with electricity getting dirtier as gas fills the gap.

Last year, the IESO found that it would be very difficult to set a moratorium on natural gas before 2030. The IESO must produce a final report on the subject for the energy minister by the end of November.


 

 

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B.C. government freezes provincial electricity rates

BC Hydro Rate Freeze delivers immediate relief on electricity rates in British Columbia, reversing a planned 3% hike, as BCUC oversight, a utility review, and Site C project debates shape provincial energy policy.

 

Key Points

A one-year provincial policy halting BC Hydro electricity rate hikes while a utility review finds cost savings.

✅ Freeze replaces planned 3% hike approved by BCUC.

✅ Government to conduct comprehensive BC Hydro review.

✅ Critics warn $150M revenue loss impacts capital projects.

 

British Columbia's NDP government has announced it will freeze BC Hydro rates effective immediately, fulfilling a key election promise.

Energy, Mines and Petroleum Resources Minister Michelle Mungall says hydro rates have gone up by more than 24 per cent in the last four years and by more than 70 per cent since 2001, reflecting proposals such as a 3.75% increase over two years announced previously.

"After years of escalating electricity costs, British Columbians deserve a break on their bills," Mungall said in a news release.

BC Hydro had been approved by the B.C. Utilities Commission to increase the rate by three per cent next year, but Mungall said it will pull back its request in order to comply with the freeze.

In the meantime, the government says it will undertake a comprehensive review of the utility meant to identify cost-savings measures for customers often asked to pay an extra $2 a month on electricity bills.

The Liberal critic, Tracy Redies, says the one year rate freeze is going to cost BC Hydro, calling it a distraction from the bigger issue of the future of the Site C project and the oversight of a BC Hydro fund surplus as well.

"A one year rate freeze costs Hydro $150 million," Redies said. "That means there's $150 million less to invest in capital projects and other investments that the utility needs to make."

"This is putting off decisions that should be made today to the future."

Recommendations from the review — including possible new rates — will be implemented starting in April 2019.

 

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Ontario Power Generation's Commitment to Small Modular Reactors

OPG Small Modular Reactors advance clean energy with advanced nuclear, baseload power, renewables integration, and grid reliability; factory built, scalable, and cost effective to support Ontario energy security and net zero goals.

 

Key Points

Factory built nuclear units delivering reliable, low carbon power to support Ontario's grid, renewables, climate goals.

✅ Factory built modules cut costs and shorten schedules

✅ Provides baseload power to balance wind and solar

✅ Enhances grid reliability with advanced safety and waste reduction

 

Ontario Power Generation (OPG) is at the forefront of Canada’s energy transformation, demonstrating a robust commitment to sustainable energy solutions. One of the most promising avenues under exploration is the development of Small Modular Reactors (SMRs), as OPG broke ground on the first SMR at Darlington to launch this next phase. These innovative technologies represent a significant leap forward in the quest for reliable, clean, and cost-effective energy generation, aligning with Ontario’s ambitious climate goals and energy security needs.

Understanding Small Modular Reactors

Small Modular Reactors are advanced nuclear power plants that are designed to be smaller in size and capacity compared to traditional nuclear reactors. Typically generating up to 300 megawatts of electricity, SMRs can be constructed in factories and transported to their installation sites, offering flexibility and scalability that larger reactors do not provide. This modular approach reduces construction time and costs, making them an appealing option for meeting energy demands.

One of the key advantages of SMRs is their ability to provide baseload power—energy that is consistently available—while simultaneously supporting intermittent renewable sources like wind and solar. As Ontario continues to increase its reliance on renewables, SMRs could play a crucial role in ensuring that the energy supply remains stable and secure.

OPG’s Initiative

In its commitment to advancing clean energy technologies, OPG has been a strong advocate for the adoption of SMRs. The province of Ontario has announced plans to develop three additional small modular reactors, part of its plans for four Darlington SMRs that would further enhance the region’s energy portfolio. This initiative aligns with both provincial and federal climate objectives, and reflects a collaborative provincial push on nuclear innovation to accelerate clean energy.

The deployment of SMRs in Ontario is particularly strategic, given the province’s existing nuclear infrastructure, including the continued operation of Pickering NGS that supports grid reliability. OPG operates a significant portion of Ontario’s nuclear fleet, and leveraging this existing expertise can facilitate the integration of SMRs into the energy mix. By building on established operational frameworks, OPG can ensure that new reactors are deployed safely and efficiently.

Economic and Environmental Benefits

The introduction of SMRs is expected to bring substantial economic benefits to Ontario. The construction and operation of these reactors will create jobs, including work associated with the Pickering B refurbishment across the province, stimulate local economies, and foster innovation in nuclear technology. Additionally, SMRs have the potential to attract investment from both domestic and international stakeholders, positioning Ontario as a leader in advanced nuclear technology.

From an environmental perspective, SMRs are designed with enhanced safety features and lower waste production compared to traditional reactors, complementing life-extension measures at Pickering that bolster system reliability. They can significantly contribute to Ontario’s goal of achieving net-zero emissions by 2050. By providing a reliable source of clean energy, SMRs will help mitigate the impacts of climate change while supporting the province's transition to a sustainable energy future.

Community Engagement and Collaboration

Recognizing the importance of community acceptance and stakeholder engagement, OPG is committed to an open dialogue with local communities and Indigenous groups. This collaboration is essential to addressing concerns and ensuring that the deployment of SMRs is aligned with the values and priorities of the residents of Ontario. By fostering a transparent process, OPG aims to build trust and support for this innovative energy solution.

Moreover, the development of SMRs will involve partnerships with various stakeholders, including government agencies, research institutions, and private industry, such as the OPG-TVA partnership to advance new nuclear technology. These collaborations will not only enhance the technical aspects of SMR deployment but also ensure that Ontario can capitalize on shared expertise and resources.

Looking Ahead

As Ontario Power Generation moves forward with plans for three additional Small Modular Reactors, the province stands at a critical juncture in its energy evolution. The integration of SMRs into Ontario’s energy landscape promises a sustainable, reliable, and economically viable solution to meet growing energy demands while addressing climate change challenges.

With the support of government initiatives, community collaboration, and continued innovation in nuclear technology, Ontario is poised to become a leader in the advancement of Small Modular Reactors. The successful implementation of these projects could serve as a model for other jurisdictions seeking to transition to cleaner energy sources, highlighting the role of nuclear power in a balanced and sustainable energy future.

In conclusion, OPG's commitment to developing Small Modular Reactors not only reinforces Ontario’s energy security but also demonstrates a proactive approach to addressing the pressing challenges of climate change and environmental sustainability. The future of energy in Ontario looks promising, driven by innovation and a commitment to clean energy solutions.

 

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Renewable power surpasses fossil fuels for first time in Europe

EU Renewable Power Overtakes Fossil Fuels, reflecting a greener energy mix as wind, solar, and hydro expand, cutting CO2 emissions and curbing coal while negative prices rise amid pandemic-driven demand drops.

 

Key Points

A milestone as renewables surpass fossil power in the EU, driven by wind, solar, hydro growth and pandemic demand.

✅ 40% renewables vs 34% fossil in H1 across 27 EU states

✅ Wind, solar, hydro rose; coal generation fell 32% year-on-year

✅ Lower demand, carbon prices, grid priority boosted clean output

 

Renewable power for the first time contributed a bigger share in the European generation mix than fossil fuels, as described in Europe's green surge as the fallout from the pandemic cut energy demand.

About 40 percent of the electricity in the first half in the 27 EU countries came from renewable sources, exceeding the global renewables share reported elsewhere, compared with 34 percent from plants burning fossil fuels, according to environmental group Ember in London. As a result, carbon dioxide emissions from the power sector fell 23 percent.

The rise is significant and encouraging for law makers as Europe prepares to spend billions of euros to recover from the virus, with wind power investments underscoring the momentum, and set the bloc on track to neutralize its carbon footprint by the middle of the century.

“This marks a symbolic moment ​in the transition of Europe’s electricity sector,” said Dave Jones, an electricity analyst at Ember. “For countries like Poland and Czech Republic grappling with how to get off coal, there is now a clear way out.”

While power demand slumped, output from wind and solar farms increased, reflecting global wind and solar gains, because more plants came online in breezy and sunny weather. At the same time, wet conditions boosted hydro power in Iberia and the Nordic markets.

Those conditions helped renewables become a rare bright spot throughout the economic tumult this year. In many areas, renewable sources of electricity have priority to the grid, meaning they could keep growing even as demand shrank and other power plants were turned off.

Electricity demand in the EU fell 7 percent overall. Fossil-fuel power generation plunged 18 percent in the first half compared with a year earlier. Renewable generation grew by 11 percent, according to Ember.

Coal was by far the biggest loser in 2020. It’s one of the most-polluting sources of power and its share is slumping in Europe as the price of carbon increases, with renewables surpassing coal in the US illustrating the broader shift, and governments move to cut emissions. Power from coal fell 32 percent across the EU.

Despite the economics, the decision to shut off coal for good will come down to political agreements between producers and governments, while reducing reliance on Russian energy reshapes policy debates.

One consequence of the jump in renewables is that negative prices have increased, as solar is reshaping prices in Northern Europe in similar ways. On particularly windy or sunny days when there isn’t much demand, the grid can be flooded with power. That’s leading wind farms to be shut off and customers to be paid to consume electricity.

 

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EIA expects solar and wind to be larger sources of U.S. electricity generation this summer

US Summer Electricity Outlook 2022 projects rising renewable energy generation as utility-scale solar and wind capacity additions surge, while coal declines and natural gas shifts amid higher fuel prices and regional supply constraints.

 

Key Points

An EIA forecast of summer 2022 power: more solar and wind, less coal, and shifting gas use amid higher fuel prices.

✅ Solar +10 million MWh; wind +8 million MWh vs last summer

✅ Coal generation -20 million MWh amid supply constraints, retirements

✅ Gas prices near $9/MMBtu; slight national gen decline

 

In our Summer Electricity Outlook, a supplement to our May 2022 Short-Term Energy Outlook, we expect the largest increases in U.S. electric power sector generation this summer will come from renewable energy sources such as wind and solar generation. These increases are the result of new capacity additions. We forecast utility-scale solar generation between June and August 2022 will grow by 10 million megawatthours (MWh) compared with the same period last summer, and wind generation will grow by 8 million MWh. Forecast generation from coal and natural gas declines by 26 million MWh this summer, although natural gas generation could increase in some electricity markets where coal supplies are constrained.

For recent context, overall U.S. power generation in January rose 9.3% year over year, the EIA reports.

Wind and solar power electric-generating capacity has been growing steadily in recent years. By the start of June, we estimate the U.S. electric power sector will have 65 gigawatts (GW) of utility-scale solar-generating capacity, a 31% increase in solar capacity since June 2021. Almost one-third of this new solar capacity will be built in the Texas electricity market. The electric power sector will also have an estimated 138 GW of wind capacity online this June, which is a 12% increase from last June.

Along with growth in renewables capacity, we expect that an additional 6 GW of new natural gas combined-cycle generating capacity will come online by June 2022, an increase of 2% from last summer. Despite this increase in capacity, we expect natural gas-fired electricity generation at the national level will be slightly (1.3%) lower than last summer.

We forecast the price of natural gas delivered to electric generators will average nearly $9 per million British thermal units between June and August 2022, which would be more than double the average price last summer. The higher expected natural gas prices and growth in renewable generation will likely lead to less natural gas-fired generation in some regions of the country.

In contrast to renewables and natural gas, the electricity industry has been steadily retiring coal-fired power plants over the past decade. Between June 2021 and June 2022, the electric power sector will have retired 6 GW (2%) of U.S. coal-fired generating capacity.

In previous years, higher natural gas prices would have resulted in more coal-fired electricity generation across the fleet. However, coal-fired power plants have been limited in their ability to replenish their historically low inventories in recent months as a result of mine closures, rail capacity constraints, and labor market tightness. These coal supply constraints, along with continued retirement of generating capacity, contribute to our forecast that U.S. coal-fired generation will decline by 20 million MWh (7%) this summer. In some regions of the country, these coal supply constraints may lead to increased natural gas-fired electricity generation despite higher natural gas prices.
 

 

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