Duke, Areva form Adage

By United Press International


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Areva and Duke Energy have announced the formation of a new U.S. joint venture.

The new company, Adage, will work to develop new, environmentally friendly biopower energy in the United States.

Areva, traditionally involved in nuclear power, will work with South Carolina-based Duke to build power plants across the United States that use wood waste-to-power technology to provide power to electricity customers.

Areva will design and build the biomass power plants and Duke Energy Generation Services will manage operations. Adage plans to negotiate power-purchase agreements and fuel contracts for each plant it constructs.

According to the U.S. Energy Information Administration, the current total installed capacity of wood biomass power generation is about 6,000 megawatts, though it is estimated that with continued investment, that number could double over the next 10 years.

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Key Ontario power system staff may end up locked down at work sites due to COVID-19, operator says

Ontario IESO COVID-19 Control Room Measures detail how essential operators safeguard the electricity grid with split shifts, backup control centres, real-time balancing, deep cleaning, social distancing, and shelter-in-place readiness to maintain reliable power.

 

Key Points

Measures that protect essential grid operators with split shifts, backup sites, and hygiene to keep power reliable.

✅ Split teams across primary and backup control centres

✅ 12-hour shifts with remote handoffs and deep cleaning

✅ Real-time grid modeling to balance demand and supply

 

A group of personnel key to keeping Ontario's electricity system functioning may end up locked down in their control centres due to the COVID-19 crisis, according to the head of the province's power operator.

But that has so far proven unnecessary with a change-up in routine, Independent Electricity System Operator CEO Peter Gregg said.

While about 90 per cent of staff were sent to work from home on March 13, another 48 control-room operators deemed essential are still going into work, Gregg said in an interview.

"We identified a smaller cohort of critical operations room staff that need to go in to operate the system out of our control centres," Gregg said. "My biggest concern is to maintain their health, their safety as we rely on them to do this critical work."

Some of the operators manage power demand and supply in real time as Ontario electricity demand shifts, by calling for more or less generation and keeping an eye on the distribution grid, which also allows power to flow to and from Ontario's neighbours. Others do scenario planning and modelling to prepare for changes.

The essential operators have been split into eight teams of six each working 12-hour shifts. The day crew works out of a control centre near Toronto and the night shift out of a backup centre in the city's west end, Gregg said.

"That means that we're not having physical hand-off between control room operators on shift change -- we can do it remotely -- and it also allows us to do deep cleansing," Gregg said. "We're fortunate that the way the room is set up allows us to practice good social distancing."

Should it become necessary, he said, bed, food and other on-site arrangements have been made to allow the operators to stay at their workplaces as a similar agency in New York has done.

"If we do need to shelter these critical employees in place, we've got the ability to do so."

IESO is responsible for ensuring a balance between supply and demand for electricity across the province. Because power cannot be stored, the IESO ensures generators produce enough power to meet peak demand while making sure they don't produce too much.

"You're seeing, obviously, commercial demand drop, some industrial demand drop," Gregg said. "But you're also seeing a shift in the demand curve as well, where normally you have people heading off to work and so residential demand would go down. But obviously with them staying home, you're seeing an increase in residential electricity use across the province."

Some utilities have indicated no cuts to peak rates for self-isolating customers, with Hydro One peak pricing remaining in place for now.

IESO also runs and settles the wholesale electricity markets. Market prices are set based on accepted offers to supply electricity, while programs supporting stable electricity pricing for industrial and commercial users can affect costs against forecast demand.

With the pandemic forcing many businesses to close and people to stay home, and provincial electricity relief for families and small businesses in place, typical power needs fallen about seven per cent at a time of year that would normally see demand soften anyway. It remains to be seen whether, and how much, power needs shift further amid stringent isolation measures and the ongoing economic impact of the outbreak.

Gregg said the operator is constantly modeling different possibilities.

"What we do normally is prepare for all of these sort of emergency scenarios, as reflected in the U.S. grid response coverage, and test and drill for these," he said. "What we're experiencing over the last few weeks is that those drills come in handy because they help us prepare for when the real-time situation actually happens."

 

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Duke Energy will spend US$25bn to modernise its US grid

Duke Energy Clean Energy Strategy targets smart grid upgrades, wind and solar expansion, efficient gas, and high-reliability nuclear, cutting CO2, boosting decarbonization, and advancing energy efficiency and reliability for the Carolinas.

 

Key Points

A plan investing in smart grids, renewables, gas, and nuclear to cut CO2 and enhance reliability and efficiency by 2030.

✅ US$25bn smart grid upgrades; US$11bn renewables and gas

✅ 40% CO2 reduction and >80% low-/zero-carbon generation by 2030

✅ 2017 nuclear fleet 95.64% capacity factor; ~90 TWh carbon-free

 

The US power group Duke Energy plans to invest US$25bn on grid modernization over the 2017-2026 period, including the implementation of smart grid technologies to cope with the development of renewable energies, along with US$11bn on the expansion of renewable (wind and solar) and gas-fired power generation capacities.

The company will modernize its fleet and expects more than 80% of its power generation mix to come from zero and lower CO2 emitting sources, aligning with nuclear and net-zero goals, by 2030. Its current strategy focuses on cutting down CO2 emissions by 40% by 2030. Duke Energy will also promote energy efficiency and expects cumulative energy savings - based on the expansion of existing programmes - to grow to 22 TWh by 2030, i.e. the equivalent to the annual usage of 1.8 million households.

#google#

Duke Energy’s 11 nuclear generating units posted strong operating performance in 2017, as U.S. nuclear costs hit a ten-year low, providing the Carolinas with nearly 90 billion kilowatt-hours of carbon-free electricity – enough to power more than 7 million homes.

Globally, China's nuclear program remains on a steady development track, underscoring broader industry momentum.

“Much of our 2017 success is due to our focus on safety and work efficiencies identified by our nuclear employees, along with ongoing emphasis on planning and executing refueling outages to increase our fleet’s availability for producing electricity,” said Preston Gillespie, Duke Energy chief nuclear officer.

Some of the nuclear fleet’s 2017 accomplishments include, as a new U.S. reactor comes online nationally:

  • The 11 units achieved a combined capacity factor of 95.64 percent, second only to the fleet’s 2016 record of 95.72 percent, marking the 19th consecutive year of attaining a 90-plus percent capacity factor (a measure of reliability).
  • The two units at Catawba Nuclear Station produced more than 19 billion kilowatt-hours of electricity, and the single unit at Harris Nuclear Plant generated more than 8 billion kilowatt-hours, both setting 12-month records.
  • Brunswick Nuclear Plant unit 2 achieved a record operating run.
  • Both McGuire Nuclear Station units completed their shortest refueling outages ever and unit 1 recorded its longest operating run.
  • Oconee Nuclear Station unit 2 achieved a fleet record operating run.

The Robinson Nuclear Plant team completed the station’s 30th refueling outage, which included a main generator stator replacement and other life-extension activities, well ahead of schedule.

“Our nuclear employees are committed to providing reliable, clean electricity every day for our Carolinas customers,” added Gillespie. “We are very proud of our team’s 2017 accomplishments and continue to look for additional opportunities to further enhance operations.”

 

 

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Hydro One stock has too much political risk to recommend, Industrial Alliance says

Hydro One Avista merger faces regulatory scrutiny in Washington, Oregon, and Idaho, as political risk outweighs defensive utilities fundamentals like stable cash flow, rate base growth, EPS outlook, and a near 5% dividend yield.

 

Key Points

A planned Hydro One-Avista acquisition awaiting key state approvals amid elevated political and regulatory risk.

✅ Hold rating, $24 price target, 28.1% implied return

✅ EPS forecast: $1.27 in 2018; $1.38 in 2019

✅ Defensive utility: stable cash flow, 4-6% rate base growth

 

A seemingly positive development for Hydro One is overshadowed by ongoing political and regulatory risk, as seen after the CEO and board ouster, Industrial Alliance Securities analyst Jeremy Rosenfield says.

On October 4, staff from the Washington Utilities and Transportation Commission filed updated testimony in support of the merger of Hydro One and natural gas distributor Avista, which had previously received U.S. antitrust clearance from federal authorities.

The merger, which was announced in July of 2017 has received the green light from federal and key states, with Washington, Oregon and Idaho being exceptions, though the companies would later seek reconsideration from U.S. regulators in the process.

But Rosenfield says even though decisions from Oregon and Idaho are expected by December, there are still too many unknowns about Hydro One to recommend investors jump into the stock.

 

Hydro One stock defensive but risky

“We continue to view Hydro One as a fundamentally defensive investment, underpinned by (1) stable earnings and cash flows from its regulated utility businesses (2) healthy organic rate base and earning growth (4-6%/year through 2022) and (3) an attractive dividend (~5% yield, 70-80% target payout),” the analyst says. “In the meantime, and ahead of key regulatory approvals in the AVA transaction, we continue to see heightened political/regulatory risk as an overhand on the stock, outweighing Hydro One’s fundamentals in the near term.”

In a research update to clients today, Rosenfield maintained his “Hold” rating and one year price target of $24.00 on Hydro One, implying a return of 28.1 per cent at the time of publication.

Rosenfield thinks Hydro One will generate EPS of $1.27 per share in fiscal 2018, even though its Q2 profit plunged 23% as electricity revenue fell. He expects that number will improve to EPS of $1.38 a share the following year.

 

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UK to End Coal Power After 142 Years

UK Coal Phase-Out signals an energy transition, accelerating decarbonization with offshore wind, solar, and storage, advancing net-zero targets, cleaner air, and a just transition for communities impacted by fossil fuel decline.

 

Key Points

A policy to end coal power in the UK, boosting renewables and net-zero goals while improving air quality.

✅ Coal electricity fell from 40% in 2012 to under 3% by 2022

✅ Offshore wind and solar expand capacity; storage enhances reliability

✅ Just transition funds retrain workers and support coal regions

 

The United Kingdom is poised to mark a significant milestone in its energy history by phasing out coal power entirely, ending a reliance that has lasted for 142 years. This decision underscores the UK’s commitment to combating climate change and transitioning toward cleaner energy sources, reflecting a broader global energy transition away from fossil fuels. As the country embarks on this journey, it highlights both the achievements and challenges of moving towards a sustainable energy future.

A Historic Transition

The UK’s relationship with coal dates back to the Industrial Revolution, when coal was the backbone of its energy supply, driving factories, trains, and homes. However, as concerns over air quality and climate change have mounted, the nation has progressively shifted its focus toward renewable energy sources amid a global decline in coal-fired electricity worldwide. The decision to end coal power represents the culmination of this transformation, signaling a definitive break from a past heavily reliant on fossil fuels.

In recent years, the UK has made remarkable strides in reducing its carbon emissions. From 2012 to 2022, coal's contribution to the country's electricity generation plummeted from around 40% to less than 3%, as policies like the British carbon tax took effect across the power sector. This dramatic decline is largely due to the rise of renewable energy sources, such as wind, solar, and hydroelectric power, which have increasingly filled the gap left by coal.

Environmental and Health Benefits

The move away from coal power has significant environmental benefits. Coal is one of the most carbon-intensive energy sources, releasing substantial amounts of carbon dioxide (CO2) and other harmful pollutants into the atmosphere. By phasing out coal, the UK aims to significantly reduce its greenhouse gas emissions and improve air quality, which has been linked to serious health issues such as respiratory diseases and cardiovascular problems.

The UK government has set ambitious net zero policies, aiming to achieve net-zero carbon emissions by 2050. Ending coal power is a critical step in reaching this target, demonstrating leadership on the global stage and setting an example for other countries still dependent on fossil fuels. This transition not only addresses climate change but also promotes a healthier environment for future generations.

The Role of Renewable Energy

As the UK phases out coal, renewable energy sources are expected to play a central role in meeting the country's energy needs. Wind power, in particular, has surged in prominence, with the UK leading the world in offshore wind capacity. In 2020, wind energy surpassed coal for the first time, accounting for over 24% of the country's electricity generation.

Solar energy has also seen significant growth, contributing to the diversification of the UK’s energy mix. The government’s investments in renewable energy infrastructure and technology have facilitated this rapid transition, providing the necessary framework for a sustainable energy future.

Economic Implications

While the transition away from coal power presents environmental benefits, it also carries economic implications. The coal industry has historically provided jobs and economic activity, particularly in regions where coal mining was a mainstay, a dynamic echoed in analyses of the decarbonization of Canada's electricity grid and its regional impacts. As the UK moves toward a greener economy, there is an urgent need to support communities that may be adversely affected by this transition.

To address potential job losses, the government has emphasized the importance of investing in retraining programs and creating new opportunities in the renewable energy sector. This will be vital in ensuring a just transition that supports workers and communities as the energy landscape evolves.

Challenges Ahead

Despite the progress made, the journey toward a coal-free UK is not without challenges. One significant concern is the need for reliable energy storage solutions to complement intermittent renewable sources like wind and solar. Ensuring a stable energy supply during periods of low generation will be critical for maintaining grid reliability.

Moreover, public acceptance and engagement will be crucial, as illustrated by debates over New Zealand's electricity transition and its pace, as the UK navigates this transition. Engaging communities in discussions about energy policies and developments can foster understanding and support for the changes ahead.

Looking to the Future

The UK’s decision to phase out coal power after 142 years marks a significant turning point in its energy policy and environmental strategy. This historic shift not only aligns with the country’s climate goals but also showcases its commitment to a cleaner, more sustainable future.

As the UK continues to invest in renewable energy and transition away from fossil fuels, it sets an important example for other nations, including those on China's path to carbon neutrality, grappling with similar challenges. By embracing this transition, the UK is not only addressing pressing environmental concerns but also paving the way for a greener economy that can thrive in the decades to come.

 

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N.S. abandons Atlantic Loop, will increase wind and solar energy projects

Nova Scotia Clean Power Plan 2030 pivots from the Atlantic Loop, scaling wind and solar, leveraging Muskrat Falls via the Maritime Link, adding battery storage and transmission upgrades to decarbonize grid and retire coal.

 

Key Points

Nova Scotia's 2030 roadmap to replace coal with wind, solar, hydro imports, storage, and grid upgrades.

✅ 1,000 MW onshore wind to supply 50% by 2030

✅ Battery storage sites and New Brunswick transmission upgrades

✅ Continued Muskrat Falls imports via Maritime Link

 

Nova Scotia is abandoning the proposed Atlantic Loop in its plan to decarbonize its electrical grid by 2030 amid broader discussions about independent grid planning nationwide, Natural Resources and Renewables Minister Tory Rushton has announced.

The province unveiled its clean power plan calling for 30 per cent more wind power and five per cent more solar energy in the Nova Scotia power grid over the coming years. Nova Scotia's plan relies on continued imports of hydroelectricity from the Muskrat Falls project in Labrador via the Emera-owned Maritime Link.

Right now Nova Scotia generates 60 per cent of its electricity by burning fossil fuels, mostly coal, and some increased use of biomass has also factored into the mix. Nova Scotia Power must close its coal plants by 2030 when 80 per cent of electricity must come from renewable sources in order reduce greenhouse gas emissions causing climate changes.

Critics have urged reducing biomass use in electricity generation across the province.

The clean power plan calls for an additional 1,000 megawatts of onshore wind by 2030 which would then generate 50 per cent of the the province's electricity, while also advancing tidal energy in the Bay of Fundy as a complementary source.    

"We're taking the things already know and can capitalize on while we build them here in Nova Scotia," said Rushton, "More importantly, we're doing it at a lower rate so the ratepayers of Nova Scotia aren't going to bear the brunt of a piece of equipment that's designed and built and staying in Quebec."

The province says it can meet its green energy targets without importing Quebec hydro through the Atlantic loop. It would have brought hydroelectric power from Quebec into New Brunswick and Nova Scotia via upgraded transmission links. But the government said the cost is prohibitive, jumping to $9 billion from nearly $3 billion three years ago with no guarantee of a secure supply of power from Quebec.

"The loop is not viable for 2030. It is not necessary to achieve our goal," said David Miller, the provincial clean energy director. 

Miller said the cost of $250 to $300 per megawatt hour was five times higher than domestic wind supply.

Some of the provincial plan includes three new battery storage sites and expanding the transmission link with New Brunswick. Both were Nova Scotia Power projects paused by the company after the Houston government imposed a cap on the utility's rate increased in the fall of 2022.

The province said building the 345-kilovolt transmission line between Truro, N.S., and Salisbury, N.B., and an extension to the Point Lepreau Nuclear Generating Station, as well as aligning with NB Power deals for Quebec electricity underway, would enable greater access to energy markets.

Miller says Nova Scotia Power has revived both.

Nova Scotia Power did not comment on the new plan, but Rushton spoke for the company.

"All indications I've had is Nova Scotia Power is on board for what is taking place here today," he said.

 

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British Columbia Fuels Up for the Future with $900 Million Hydrogen Project

H2 Gateway Hydrogen Network accelerates clean energy in B.C., building electrolysis plants and hydrogen fueling stations for zero-emission vehicles, heavy-duty trucks, and long-haul transit, supporting decarbonization, green hydrogen supply, and infrastructure investment.

 

Key Points

A $900M B.C. initiative by HTEC to build electrolysis plants and 20 hydrogen fueling stations for zero-emission transport.

✅ $900M project with HTEC, CIB, and B.C. government

✅ 3 electrolysis plants plus byproduct liquefaction in North Vancouver

✅ Up to 20 stations; 14 for heavy-duty vehicles in B.C. and Alberta

 

British Columbia is taking a significant step towards a cleaner future with a brand new $900 million project. This initiative, spearheaded by hydrogen company HTEC and supported by the CIB in B.C. and the B.C. government, aims to establish a comprehensive hydrogen network across the province. This network will encompass both hydrogen production plants and fueling stations, marking a major leap in developing hydrogen infrastructure in B.C.

The project, dubbed "H2 Gateway," boasts several key components. At its core lies the construction of three brand new electrolysis hydrogen production plants. These facilities will be strategically located in Burnaby, Nanaimo, and Prince George, ensuring a wide distribution of hydrogen fuel. An additional facility in North Vancouver will focus on liquefying byproduct hydrogen, maximizing resource efficiency.

The most visible aspect of H2 Gateway will undoubtedly be the network of hydrogen fueling stations. The project envisions up to 20 stations spread across British Columbia and Alberta, complementing the province's Electric Highway build-out, with 18 being situated within B.C. itself. This extensive network will significantly enhance the accessibility of hydrogen fuel, making it a more viable option for motorists. Notably, 14 of these stations will be designed to handle heavy-duty vehicles, catering to the transportation sector's clean energy needs.

The economic and environmental benefits of H2 Gateway are undeniable. The project is expected to generate nearly 300 jobs, aligning with recent grid job creation efforts, providing a much-needed boost to the B.C. economy. More importantly, the widespread adoption of hydrogen fuel promises significant reductions in greenhouse gas emissions. Hydrogen-powered vehicles produce zero tailpipe emissions, making them a crucial tool in combating climate change.

British Columbia's investment in hydrogen infrastructure aligns with a global trend. As countries strive to achieve ambitious climate goals, hydrogen is increasingly viewed as a promising clean energy source. Hydrogen fuel cells offer several advantages over traditional electric vehicles, and while B.C. leads the country in going electric, they boast longer driving ranges and shorter refueling times, making them particularly attractive for long-distance travel and heavy-duty applications.

While H2 Gateway represents a significant step forward, challenges remain. The production of clean hydrogen, often achieved through electrolysis using renewable energy sources, faces power supply challenges and requires substantial initial investment. Additionally, the number of hydrogen-powered vehicles on the road is still relatively low.

However, projects like H2 Gateway are crucial in overcoming these hurdles. By creating a robust hydrogen infrastructure, B.C. is sending a strong signal to the industry and, alongside BC Hydro's EV charging expansion across southern B.C., is building a comprehensive clean transportation network. This investment will not only benefit the environment but also incentivize the development and adoption of hydrogen-powered vehicles. As the technology matures and production costs decrease, hydrogen fuel has the potential to revolutionize transportation and play a key role in a sustainable future.

The road ahead for hydrogen may not be entirely smooth, but British Columbia's commitment to H2 Gateway demonstrates a clear vision. By investing in clean energy infrastructure, the province is not only positioning itself as a leader in the fight against climate change, with Canada and B.C. investing in green energy solutions to accelerate progress, but also paving the way for a more sustainable transportation landscape.

 

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