GDF Suez to pay for nuclear plant lifeline

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GDF Suez SA has caved in to the Belgian government's demands for a 1.6 billion euro investment package in order to extend the life of older nuclear facilities in the country.

Belgium recently decided to extend the life of older nuclear reactors, reversing an earlier decision to phase out nuclear power in the country. However, the government also introduced a huge levy for the privilege on Electrabel SA, a subsidiary of GDF Suez, which runs all of Belgium's seven reactors in the country's two nuclear power plants.

This includes a 500 million euro investment in renewables and a yearly charge of up to 245 million euros from 2010 through 2014.

At the time, angry GDF Suez Chairman and CEO Gérard Mestrallet, said: "Not 500 million euros, not a cent, zero."

However, it seems that GDF Suez has changed its mind and is agreeing to the government's demands. As a result, GDF Suez will:

• contribute between 215 million and 245 million euros to the state budget between 2010 and 2014, along with other nuclear power producers;

• prepare a 500 million euro programme of investment in renewable energies via Electrabel;

• recruit more than 10,000 staff in Belgium by 2015;

• by 2015, create a permanent body of 500 training positions, alternating between the company's various subsidiaries;

• invest significant sums in research, including 5 million euros in nuclear research institutes and additional funding for research of carbon capture and storage;

• maintain a high level of activity in Belgium, in particular retaining the Energy Europe and International business lines, as well as the Tractebel Engineering bases in the country.

"The Group is glad to have concluded with the Belgian government an ambitious deal for the future, which provides a stable and long-term framework for the industrial development of GDF Suez in Belgium," said a more amicable Mestrallet. "The agreement means we can confirm our commitment to invest in the nuclear units Doel 1 and 2 and Tihange 1, in line with the decision to extend their operational lifetime by 10 years, through to 2025, in optimum safety conditions. In addition to this commitment, which is essential for security of supply, GDF Suez also firmly undertakes to invest in the development of renewable energies, to support the government's policy on jobs and vocational training and to devote significant sums to research."

Nuclear power accounts for 55% of Belgium's power generation. The closure of three reactors by 2015 would have left the country with an energy crisis, as the country's renewable power sector is nowhere near being ready to fill the gap.

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Energy Vault Lands $110M From SoftBank’s Vision Fund for Gravity Storage

Energy Vault Gravity Storage uses crane-stacked concrete blocks to deliver long-duration, grid-scale renewable energy; a SoftBank Vision Fund-backed, pumped-hydro analog enabling baseload power and a lithium-ion alternative with proprietary control algorithms.

 

Key Points

Gravity-based cranes stack blocks to store and dispatch power for hours, enabling grid-scale, low-cost storage.

✅ 4 MW/35 MWh modules; ~9-hour duration

✅ Estimated $200-$250/kWh; lower LCOE than lithium-ion

✅ Backed by SoftBank Vision Fund; Cemex and Tata support

 

Energy Vault, the Swiss-U.S. startup that says it can store and discharge electrical energy through a super-sized concrete-and-steel version of a child’s erector set, has landed a $110 million investment from Japan’s SoftBank Vision Fund to take its technology to commercial scale.

Energy Vault, a spinout of Pasadena-based incubator Idealab and co-founded by Idealab CEO and billionaire investor Bill Gross, unstealthed in November with its novel approach to using gravity to store energy.

Simply put, Energy Vault plans to build storage plants — dubbed “Evies” — consisting of a 35-story crane with six arms, surrounded by a tower consisting of thousands of concrete bricks, each weighing about 35 tons.

This plant will “store” energy by using electricity to run the cranes that lift bricks from the ground and stack them atop of the tower, and “discharge” energy by reversing that process. It’s a mechanical twist on the world’s most common energy storage technology, pumped hydro, which “stores” energy by pumping water uphill, and lets it fall to spin turbines when electricity is needed, even as California funds 100-hour long-duration storage pilots to expand flexibility worldwide.

But behind this simplicity lies some heavy-duty software to orchestrate the cranes and blocks, with a "unique stack of proprietary algorithms" to balance energy supply and demand, volatility, grid stability, weather elements and other variables.

CEO and co-founder Robert Piconi said in a November interview with GTM that the standard array would deliver 4 megawatts/35 megawatt-hours of storage, which translates to nearly 9 hours of duration — the equivalent of building the tower to its height, and then reducing it to ground level. It can be built on-site in partnership with crane manufacturers and recycled concrete material, and can run fully automated for decades with little deterioration, he said.

And the cost, which Piconi pegged in the $200 to $250 per kilowatt-hour range, with room to decline further, is roughly 50 percent below the upfront price of the conventional storage market today, and 80 percent below it on levelized cost, he said, a trend utilities see benefits in as they plan resources.

The result, according to Wednesday’s statement, is a technology that could allow “renewables to deliver baseload power for less than the cost of fossil fuels 24 hours a day,” in applications such as community microgrids serving low-income housing.

Wednesday’s announcement builds on a recent investment from Mexico's Cemex Ventures, the corporate venture capital unit of building materials giant Cemex, along with a promise of deployment support from Cemex's strategic network, and also follows project financing for a California green hydrogen microgrid led by the company. Piconi said in November that the company had sufficient investment from two funding rounds to carry it through initial customer deployments, though he declined to disclose figures.

This is the first energy storage investment for Vision Fund, the $100 billion venture fund set up by SoftBank founder Masayoshi Son. While large by startup standards, it’s in keeping with the capital costs that Energy Vault will face in scaling up its technology to meet its commitments, amid mounting demand in regions like Ontario energy storage that face supply crunches. Those include a 35 megawatt-hour order with Tata Power Company, the energy-producing arm of the Indian industrial conglomerate, first unveiled in November, as well as plans to demonstrate its first storage tower in northern Italy in 2019.

For Vision Fund, it’s also an unusual choice for a storage investment, given that the vast majority of venture capital in the industry today is being directed toward lithium-ion batteries, and even Mercedes-Benz energy storage ventures targeting the U.S. market. Lithium-ion batteries are limited in terms of how many hours they can provide cost-effectively, with about 4 hours being seen as the limit today.

The search for long-duration energy storage has driven investment into flow battery technologies such as grid-scale vanadium systems deployed on utility networks, compressed-air energy storage and variations on gravity-based storage, including a previous startup backed by Gross and Idealab, Energy Cache, whose idea of using a ski lift carrying buckets of gravel up a hill to store energy petered out with a 50-kilowatt pilot project.

 

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Opinion: Nuclear Beyond Electricity

Nuclear decarbonization leverages low-carbon electricity, process heat, and hydrogen from advanced reactors and SMRs to electrify industry, buildings, and transport, supporting net-zero strategies and grid flexibility alongside renewables with dispatchable baseload capacity.

 

Key Points

Nuclear decarbonization uses reactors to supply low-carbon power, heat, and hydrogen, cutting emissions across industry.

✅ Advanced reactors and SMRs enable high-temperature process heat

✅ Nuclear-powered electrolysis and HTSE produce low-carbon hydrogen

✅ District heating from reactors reduces pollution and coal use

 

By Dr Henri Paillere, Head of the Planning and Economics Studies Section of the IAEA

Decarbonising the power sector will not be sufficient to achieving net-zero emissions, with assessments indicating nuclear may be essential across sectors. We also need to decarbonise the non-power sectors - transport, buildings and industry - which represent 60% of emissions from the energy sector today. The way to do that is: electrification with low-carbon electricity as much as possible; using low-carbon heat sources; and using low-carbon fuels, including hydrogen, produced from clean electricity.
The International Energy Agency (IEA) says that: 'Almost half of the emissions reductions needed to reach net zero by 2050 will need to come from technologies that have not reached the market today.' So there is a need to innovate and push the research, development and deployment of technologies. That includes nuclear beyond electricity.

Today, most of the scenario projections see nuclear's role ONLY in the power sector, despite ongoing debates over whether nuclear power is in decline globally, but increased electrification will require more low-carbon electricity, so potentially more nuclear. Nuclear energy is also a source of low-carbon heat, and could also be used to produce low-carbon fuels such as hydrogen. This is a virtually untapped potential.

There is an opportunity for the nuclear energy sector - from advanced reactors, next-gen nuclear small modular reactors, and non-power applications - but it requires a level playing field, not only in terms of financing today's technologies, but also in terms of promoting innovation and supporting research up to market deployment. And of course technology readiness and economics will be key to their success.

On process heat and district heating, I would draw attention to the fact there have been decades of experience in nuclear district heating. Not well spread, but experience nonetheless, in Russia, Hungary and Switzerland. Last year, we had two new projects. One floating nuclear power plant in Russia (Akademik Lomonosov), which provides not only electricity but district heating to the region of Pevek where it is connected. And in China, the Haiyang nuclear power plant (AP1000 technology) has started delivering commercial district heating. In China, there is an additional motivation to reducing emissions, namely to cut air pollution because in northern China a lot of the heating in winter is provided by coal-fired boilers. By going nuclear with district heating they are therefore cutting down on this pollution and helping with reducing carbon emissions as well. And Poland is looking at high-temperature reactors to replace its fleet of coal-fired boilers and so that's a technology that could also be a game-changer on the industry side.

There have also been decades of research into the production of hydrogen using nuclear energy, but no real deployment. Now, from a climate point of view, there is a clear drive to find substitute fuels for the hydrocarbon fuels that we use today, and multiple new nuclear stations are seen by industry leaders as necessary to meet net-zero targets. In the near term, we will be able to produce hydrogen with electrolysis using low-carbon electricity, from renewables and nuclear. But the cheapest source of low-carbon power is from the long-term operation of existing nuclear power plants which, combined with their high capacity factors, can give the cheapest low-carbon hydrogen of all.

In the mid to long term, there is research on-going with processes that are more efficient than low-temperature electrolysis, which is high temperature steam electrolysis or thermal splitting of water. These may offer higher efficiencies and effectiveness but they also require advanced reactors that are still under development. Demonstration projects are being considered in several countries and we at the IAEA are developing a publication that looks into the business opportunities for nuclear production of hydrogen from existing reactors. In some countries, there is a need to boost the economics of the existing fleet, especially in the electricity systems where you have low or even negative market prices for electricity. So, we are looking at other products that have higher values to improve the competitiveness of existing nuclear power plants.

The future means not only looking at electricity, but also at industry and transport, and so integrated energy systems. Electricity will be the main workhorse of our global decarbonisation effort, but through heat and hydrogen. How you model this is the object of a lot of research work being done by different institutes and we at the IAEA are developing some modelling capabilities with the objective of optimising low-carbon emissions and overall costs.

This is just a picture of what the future might look like: a low-carbon power system with nuclear lightwater reactors (large reactors, small modular reactors and fast reactors) drawing on the green industrial revolution reactor waves in planning; solar, wind, anything that produces low-carbon electricity that can be used to electrify industry, transport, and the heating and cooling of buildings. But we know there is a need for high-temperature process steam that electricity cannot bring but which can be delivered directly by high-temperature reactors. And there are a number of ways of producing low-carbon hydrogen. The beauty of hydrogen is that it can be stored and it could possibly be injected into gas networks that could be run in the future on 100% hydrogen, and this could be converted back into electricity.

So, for decarbonising power, there are many options - nuclear, hydro, variable renewables, with renewables poised to surpass coal in global generation, and fossil with carbon capture and storage - and it's up to countries and industries to invest in the ones they prefer. We find that nuclear can actually reduce the overall cost of systems due to its dispatchability and the fact that variable renewables have a cost because of their intermittency. There is a need for appropriate market designs and the role of governments to encourage investments in nuclear.

Decarbonising other sectors will be as important as decarbonising electricity, from ways to produce low-carbon heat and low-carbon hydrogen. It's not so obvious who will be the clear winners, but I would say that since nuclear can produce all three low-carbon vectors - electricity, heat and hydrogen - it should have the advantage.
We at the IAEA will be organising a webinar next month with the IEA looking at long-term nuclear projections in a net-zero world, building on IAEA analysis on COVID-19 and low-carbon electricity insights. That will be our contribution from the point of view of nuclear to the IEA's special report on roadmaps to net zero that it will publish in May.

 

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Europe's stunted hydro & nuclear output may hobble recovery drive

Europe 2023 Energy Shortfall underscores how weak hydro and nuclear offset record solar and wind, tightening grids as natural gas supplies shrink and demand rebounds, heightening risks of electricity shortages across key economies.

 

Key Points

A regional gap as weak hydro and nuclear offset record solar and wind, straining supply as gas stays tight.

✅ Hydro and nuclear output fell sharply in early 2023

✅ Record solar and wind could not offset the deficit

✅ Industrial demand rebound pressures limited gas supplies

 

Shortfalls in Europe's hydro and nuclear output have more than offset record electricity generation from wind and solar power sites over the first quarter of 2023, leaving the region vulnerable to acute energy shortages for the second straight year.

European countries fast-tracked renewable energy capacity development in 2022 in the wake of Russia's invasion of Ukraine last February, which upended natural gas flows to the region and sent power prices soaring.

Europe lifted renewable energy supply capacity by a record 57,290 megawatts in 2022, or by nearly 9%, according to the International Energy Agency (IRENA), amid a scramble to replace imported Russian gas with cleaner, home-grown energy.

However, steep drops in both hydro and nuclear output - two key sources of non-emitting energy - mean Europe's power producers have limited ways to lift overall electricity generation, as the region is losing nuclear power at a critical moment, just as the region's economies start to reboot after last year's energy shock.

POWER PLATEAU
Europe's total electricity generation over the first quarter of 2023 hit 1,213 terawatt hours, or roughly 6.4% less than during the same period in 2022, according to data from think tank Ember.

At the same time, European power hits records during extreme heat as plants struggle to cool, exacerbating supply risks.

As Europe's total electricity demand levels were in post-COVID-19 expansion mode in early 2022 before Russia's so-called special operation sent power costs to record highs amid debates over how electricity is priced in Europe, it makes sense that overall electricity use was comparatively stunted in early 2023.

However, efforts are now underway to revive activity at scores of European factories, industrial plants and production lines that were shuttered or curtailed in 2022, so Europe's collective electricity consumption totals are set to trend steadily higher over the remainder of 2023.

With Russian natural gas unavailable in the previous quantities due to sanctions and supply issues, Europe's power producers will need to deploy alternative energy sources, including renewables poised to eclipse coal globally, to feed that increase in power demand.

And following the large jump in renewable capacity brought online in 2022, utilities can deploy more low-emissions energy than ever before across Europe's electricity grids.

 

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Elizabeth May wants a fully renewable electricity grid by 2030. Is that possible?

Green Party Mission Possible 2030 outlines a rapid transition to renewable energy, electric vehicles, carbon pricing, and grid modernization, phasing out oil and gas while creating green jobs, public transit upgrades, and building retrofits.

 

Key Points

A Canadian climate roadmap to decarbonize by 2030 via renewables, EVs, carbon pricing, and grid upgrades.

✅ Ban on new gas cars by 2030; accelerate EV adoption and charging.

✅ 100 percent renewable-powered grid with interprovincial links.

✅ Just transition: retraining, green jobs, and building retrofits.

 

Green Party Leader Elizabeth May has a vision for Canada in 2030. In 11 years, all new cars will be electric. A national ban will prohibit anyone from buying a gas-powered vehicle. No matter where you live, charging stations will make driving long distances easy and affordable. Alberta’s oil industry will be on the way out, replaced by jobs in sectors such as urban farming, renewable energy and retrofitting buildings for energy efficiency. The electric grid will be powered by 100 per cent renewable energy as Canada’s race to net-zero accelerates.

It’s all part of the Greens’ “Mission Possible” – a detailed plan released Monday with a level of ambition made clear by its very name. May insists it’s the only way to confront the climate crisis head-on before it’s too late.

“We have to set our targets on what needs to be done. You can’t negotiate with physics,” May told CTV’s Power Play on Monday.

But is that 2030 vision realistic?

CTVNews.ca spoke with experts in economics, political policy, renewable energy and climate science to explore how feasible May’s plan is, how much it would cost and what transitioning to an environmentally-centred economy would look like for everyday Canadians.

 

MOVING TO A GREEN ECONOMY

Recent polling from Nanos Research shows that the environment and climate change is the top issue among voters this election.

If the Greens win a majority on Oct. 21 – an outcome that May herself acknowledged isn’t likely – it would signal a major restructuring of the Canadian economy.

According to the party’s platform, jobs in the fuels sectors, such as oil and gas production in Alberta, would eventually disappear. The Greens say those job losses would be replaced by opportunities in a variety of fields including renewable energy, farming, public transportation, manufacturing, construction and information technology.

The party would also introduce a guaranteed livable income and greater support for technical and educational training to help workers transition to new jobs.

But Jean-Thomas Bernard, an economist who specializes in energy markets, said plenty of people in today’s energy sector, such as oil and gas workers, wouldn’t have the skills to make that transition.

“Quite a few of these jobs have low technical requirements. Driving a truck is driving a truck. So quite few of these people will not have the capacity to be recycled into well-paid jobs in the renewable sector,” he said.

“Maybe this would be for the young generation, but not people who are 40, 45, 50.”

Ryan Katz-Rosene is an associate professor at the University of Ottawa who researches environmental policy. He says May’s overall pitch is technically possible but would require a huge amount of enthusiasm on behalf of the public. 

“The plan in itself is not physically impossible. It is theoretically achievable. But it would require a major, major change in the urgency and the level of action, the level of investment, the level of popular urgency, the level of political commitment,” he said.

“But it’s not completely fantastical in it being theoretically impossible.”

 

PHASING OUT BITUMEN PRODUCTION

Katz-Rosene said that, under the Greens’ plan, Canadians would need to pay for a bold carbon pricing plan that helps shift the country away from fossil fuels and has significant implications for electricity grids, he said. It would also mean dramatically upscaling the capacity of Canada’s existing electrical grid to account for millions of new electric cars, reflecting the need for more electricity to hit net-zero as demand grows.

 “Given Canada’s slow attempt to climate action and pretty lacklustre results in these years, to be frank, this plan is very, very difficult to achieve. We’re talking 11 years from now. But things change, people change, and sometimes that change can occur very quickly. Just look at the type of climate mobilization we’re seen among young people in the last year, or the last five years.”

Bernard, the economist, is less optimistic. He cited international agreements such as the Kyoto Protocol from 1997 and the more recent Paris Climate Agreement and said that little has come of those plans.

A climate solution with teeth, he suggests, would need to be global – something that no federal government can completely control.

“I find a lot this talk to be overly optimistic. I don’t know why we keep having this talk that is overly optimistic,” he said, adding that he believes humankind is already beyond the point of being able to stop irreversible climate change. 

“I think we are moving toward a mess, but the effort to control that is still not there.”

As for transitioning away from Canada’s oil industry, Bernard said May’s plan simply wouldn’t work.

“Trying to block some oil production here and there means more oil will be produced elsewhere,” he said. “Canada could become a clean country, but worldwide it would not be much.”

Mike Hudema, a climate organizer with Greenpeace Canada, thinks the Green Party’s promises for 2030 are big – and that’s kind of the point.

“They are definitely ambitious, but ambition is exactly what these times call for.  Unfortunately our government has delayed acting on this problem for so long that we have a very short timeline which we have to turn the ship,” he said.

“So this is the type of ambition that the science is calling for. So yes, I believe that if we here in Canada were to put our minds to addressing this problem, then we have the ability to reach it in that 2030 timeframe.”

In a statement to CTVNews.ca, a Green Party spokesperson said the 2030 timeline is intended to meet the 45 per cent reduction in emissions by 2030 as laid out by the Intergovernmental Panel on Climate Change.

“If we miss the 2030 target, we risk triggering runaway global warming,” the spokesperson said.

 

GREENING THE GRID BY 2030

Greening Canada’s existing electric grid – a goal May has pegged to 2030 – is quite feasible, Katz-Rosene said, and cleaning up Canada’s electricity is critical to meeting climate pledges. Already, 82 per cent of the country’s electric grid is run off of renewable resources, which makes Canada a world leader in the field, he said.

Hudema agrees.

“It is feasible. Canada does have a grid already that has a lot of renewables in it. So yes we can definitely make it over the hump and complete the transition. But we do need investments in our electric grid infrastructure to ensure a certain capability. That comes with tremendous job growth. That’s the exciting part that people keep missing,” Hudema said.

But Bernard said switching the grid to 100 per cent renewables would be quite difficult. He suggested that the Greens’ 2030 vision would require Ontario and Quebec’s hydro production to help power the Prairies.

“To think we could boost (hydro production) much more in order to meet Saskatchewan and Alberta’s needs? Oh boy. To do this before 2030? I think that’s not reasonable, not feasible.”

In a statement to CTV News, the Greens said their strategy includes building new connections between eastern Manitoba and western Ontario to transmit clean energy. They would also upgrade existing connections between New Brunswick and Nova Scotia and between B.C. and Alberta to boost reliability.

A number of “micro-grids” in local communities capable of storing clean energy would help reduce the dependency on nationwide distribution systems, the party said.

Even so, the Greens acknowledged that, by 2030, some towns and cities will still be using some fossil fuels, and that even by 2050 – the goal for achieving overall carbon neutrality – some “legacy users” of fossil fuels will remain.

However, according to party projections, the emissions of these “legacy users” would be at most 8 per cent of today’s levels and those emissions would be “more than completely offset” by re-forestation and new technologies, such as CO2 capture and storage.

 

ELECTRIC VEHICLE REVOLUTION

The Green Party’s platform promises to revolutionize the Canadian auto sector. By 2030, all new cars made in Canada would be electric and federal EV sales regulations would prohibit the sale of cars powered by gasoline.

Danny Harvey, a geography professor with the University of Toronto who specializes in renewable energy, said he thinks May’s plan for making a 100 per cent renewable-powered electric grid is feasible.

On cars, however, he thinks the emphasis on electric vehicles is “misplaced.”

“At this point in time we should be requiring automobiles to transition, by 2030, to making cars that can go three times further on a litre of gasoline than at present. This would require selling only advanced hybrid-electric vehicles (HEVs), which would run entirely on gasoline (like current HEVs),” he said.

“After that, and when the grid is fully ready, we could make the transition to fully electric or plugin hybrid electric vehicles, possibly using H2 for long-distance driving.”

At the moment, zero-emissions vehicles account for just over 2 per cent of annual vehicle sales in Canada. Katz-Rosene said that “isn’t a whole lot,” but the industry is on an exponential growth curve that doesn’t show any signs of slowing.

The trouble with May’s 2030 goal on electric vehicles, he said, has to do with Canadians’ taste in vehicles. In short: Canadians like trucks.

“The biggest obstacle I see is that I don’t even think it’s possible to get a light-duty truck, a Ford F150, in an electric model in Canada. And that’s the most popular type of vehicle,” he said.

However, if a zero emissions truck were on the market – something that automakers are already working on – then that could potentially shake things up, especially if the government introduces incentives for electric vehicles and higher taxes on gasoline, he said.

 

WHAT ABOUT THE COST?

CTVNews.ca reached out to the Green Party to ask how it would pay to revamp the electrical grid. The party did not give a precise figure but said that the plan “has been estimated to cost somewhat less” than the Trans Mountain Pipeline expansion.

The Greens have vowed to scrap the expansion and put that money toward the project.

Upgrading the electric grid to 100 per cent sustainable energy would also be a cost-effective, long-term solution, the Greens believe, though critics say Ottawa is making electricity more expensive for Albertans amid the transition.

“Current projects for renewable energy in Canada and worldwide are consistently at lower capital and operating costs than any type of fossil, hydro or nuclear energy project,” the party spokesperson said.

The party’s platform includes other potential sources of money, including closing tax loopholes for the wealthy, cracking down on offshore tax dodging and a new corporate tax on e-commerce companies, such as Facebook, Amazon and Netflix. The Greens have also vowed to eliminate all fossil fuel subsidies.

As for the economic realities, Katz-Rosene acknowledged that May’s plan may appeal to “radical” voters who view economic growth as anathema to addressing climate change.

But while May’s plan would be disruptive, it isn’t anti-capitalist, he said.

“It’s restrained capitalism. But it by no means an anti-capitalist platform, and none of the parties have an anti-capitalist platform by any stretch of the imagination,” Katz-Rosene said.

From an economist’s perspective, Bernard said the plan is still “very costly” and that taxes can only go so far.

“In the end, no corporation operates at a loss. At some stage, these taxes have to go to the users,” he said.

But conversations around money must also consider the cost of inaction on climate change, Hudema said.

“Costing (Elizabeth May) is always a concern and how we’re going to afford these things is something we definitely need to keep top of mind. But within that conversation we need to look at what is the cost of not doing what is in line with what the science is saying. I would say that cost is much more substantial.”

“The forecast, if we don’t act – it’s astronomical.”

 

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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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Ambitious clean energy target will mean lower electricity prices, modelling says

Australia Clean Energy Target drives renewables in the National Electricity Market, with RepuTex modelling and the Finkel Review showing lower wholesale prices and emissions as gas generators set prices less often under ambitious targets.

 

Key Points

Policy boosting low emissions generation to cut electricity emissions and lower wholesale prices across Australia.

✅ Ambitious targets lower wholesale prices through added generation

✅ RepuTex modelling shows renewables displace costly gas peakers

✅ Finkel Review suggests CET cuts emissions and boosts reliability

 

The more ambitious a clean energy target is, the lower Australian wholesale electricity prices will be, according to new modelling by energy analysis firm RepuTex.

The Finkel review, released last month recommended the government introduce a clean energy target (CET), which it found would cut emissions from the national electricity market and put downward pressure on both wholesale and retail prices, aligning with calls to favor consumers over generators in market design.

The Finkel review only modelled a CET that would cut emissions from the electricity sector by 28% below 2005 levels by 2030. But all available analysis has demonstrated that such a cut would not be enough to meet Australia’s overall emissions reductions made as part of the Paris agreement, which themselves were too weak to help meet the central aim of that agreement – to keep global warming to “well below 2C”.

RepuTex modelled the effect of a CET that cut emissions from the electricity sector by 28% – like that modelled in the Finkel Review – as well as one it said was consistent with 2C of global warming, which would cut emissions from electricity by 45% below 2005 levels by 2030.

It found both scenarios caused wholesale prices to drop significantly compared to doing nothing, despite IEA warnings on falling energy investment that could lead to shortages, with the more ambitious scenario resulting in lower wholesale prices between 2025 and 2030.

In the “business as usual scenario”, RepuTex found wholesale prices would hover roughly around the current price of $100 per MWh.

Under a CET that reduced electricity emissions by 28%, prices would drop to under $40 around 2023, and then rise to nearly $60 by 2030.

The more ambitious CET had a broadly similar effect on wholesale prices. But RepuTex found it would drive prices down a little slower, but then keep them down for longer, stabilising at about $40 to $50 for most of the 2020s.

It found a CET would drive prices down by incentivising more generation into the market. The more ambitious CET would further suppress prices by introducing more renewable energy, resulting in expensive gas generators less often being able to set the price of electricity in the wholesale market, a dynamic seen with UK natural gas price pressures recently.

The downward pressure of a CET on wholesale prices was more dramatic in the RepuTex report than in Finkel’s own modelling. But that was largely because, as Alan Finkel himself acknowledged, the estimates of the costs of renewable energy in the Finkel review modelling were conservative.

Speaking at the National Press Club, Finkel said: “We were conservative in our estimates of wind and large-scale solar generator prices. Indeed, in recent months the prices for wind generation have already come in lower than what we modelled.”

The RepuTex modelling also found the economics of the national electricity market no longer supported traditional baseload generation – such as coal power plants that were unable to respond flexibly to demand, with debates over power market overhauls in Alberta underscoring similar tensions – and so they would not be built without the government distorting the market.

“With a premium placed on flexible generation that can ramp up or down, baseload only generation – irrespective of how clean or dirty it is – is likely to be too inflexible to compete in Australia’s future electricity system,” the report said.

“In this context, renewable energy remains attractive to the market given it is able to deliver energy reliability, with no emissions, at low cost prices, with clean grid and battery trends in Canada informing the shift for policymakers. This affirms that renewables are a lay down misere to out-compete traditionally fossil-fuel sources in Australia for the foreseeable future.”

 

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