Meetings set on power line upgrades

Offshore wind power accelerates low-carbon electrification, leveraging floating turbines, high capacity factors, HVDC transmission, and hydrogen production to decarbonize grids, cut CO2, and deliver competitive, reliable renewable energy near demand centers.

Key Points

Offshore wind power uses offshore turbines to deliver low-carbon electricity with high capacity factors and falling costs.

✅ Sea-based wind farms with 40-50% capacity factors

✅ Floating turbines unlock deep-water, far-shore resources

✅ Enables hydrogen production and strengthens grid reliability

The need for affordable low-carbon technologies is greater than ever

Global energy-related CO2 emissions reached a historic high in 2018, driven by an increase in coal use in the power sector. Despite impressive gains for renewables, fossil fuels still account for nearly two-thirds of electricity generation, the same share as 20 years ago. There are signs of a shift, with increasing pledges to decarbonise economies and tackle air pollution, and with World Bank support helping developing countries scale wind, but action needs to accelerate to meet sustainable energy goals. As electrification of the global energy system continues, the need for clean and affordable low-carbon technologies to produce this electricity is more pressing than ever. This World Energy Outlook special report offers a deep dive on a technology that today has a total capacity of 23 GW (80% of it in Europe) and accounts for only 0.3% of global electricity generation, but has the potential to become a mainstay of the world's power supply. The report provides the most comprehensive analysis to date of the global outlook for offshore wind, its contributions to electricity systems and its role in clean energy transitions.

The offshore wind market has been gaining momentum

The global offshore wind market grew nearly 30% per year between 2010 and 2018, benefitting from rapid technology improvements. Over the next five years, about 150 new offshore wind projects are scheduled to be completed around the world, pointing to an increasing role for offshore wind in power supplies. Europe has fostered the technology's development, led by the UK offshore wind sector alongside Germany and Denmark. The United Kingdom and Germany currently have the largest offshore wind capacity in operation, while Denmark produced 15% of its electricity from offshore wind in 2018. China added more capacity than any other country in 2018.

The untapped potential of offshore wind is vast

The best offshore wind sites could supply more than the total amount of electricity consumed worldwide today. And that would involve tapping only the sites close to shores. The IEA initiated a new geospatial analysis for this report to assess offshore wind technical potential country by country. The analysis was based on the latest global weather data on wind speed and quality while factoring in the newest turbine designs. Offshore wind's technical potential is 36 000 TWh per year for installations in water less than 60 metres deep and within 60 km from shore. Global electricity demand is currently 23 000 TWh. Moving further from shore and into deeper waters, floating turbines could unlock enough potential to meet the world's total electricity demand 11 times over in 2040. Our new geospatial analysis indicates that offshore wind alone could meet several times electricity demand in a number of countries, including in Europe, the United States and Japan. The industry is adapting various floating foundation technologies that have already been proven in the oil and gas sector. The first projects are under development and look to prove the feasibility and cost-effectiveness of floating offshore wind technologies.

Offshore wind's attributes are very promising for power systems

New offshore wind projects have capacity factors of 40-50%, as larger turbines and other technology improvements are helping to make the most of available wind resources. At these levels, offshore wind matches the capacity factors of gas- and coal-fired power plants in some regions – though offshore wind is not available at all times. Its capacity factors exceed those of onshore wind and are about double those of solar PV. Offshore wind output varies according to the strength of the wind, but its hourly variability is lower than that of solar PV. Offshore wind typically fluctuates within a narrower band, up to 20% from hour to hour, than solar PV, which varies up to 40%.

Offshore wind's high capacity factors and lower variability make its system value comparable to baseload technologies, placing it in a category of its own – a variable baseload technology. Offshore wind can generate electricity during all hours of the day and tends to produce more electricity in winter months in Europe, the United States and China, as well as during the monsoon season in India. These characteristics mean that offshore wind's system value is generally higher than that of its onshore counterpart and more stable over time than that of solar PV. Offshore wind also contributes to electricity security, with its high availability and seasonality patterns it is able to make a stronger contribution to system needs than other variable renewables. In doing so, offshore wind contributes to reducing CO2 and air pollutant emissions while also lowering the need for investment in dispatchable power plants. Offshore wind also has the advantage of avoiding many land use and social acceptance issues that other variable renewables are facing.

Offshore wind is on track to be a competitive source of electricity

Offshore wind is set to be competitive with fossil fuels within the next decade, as well as with other renewables including solar PV. The cost of offshore wind is declining and is set to fall further. Financing costs account for 35% to 50% of overall generation cost, and supportive policy frameworks are now enabling projects to secure low cost financing in Europe, with zero-subsidy tenders being awarded. Technology costs are also falling. The levelised cost of electricity produced by offshore wind is projected to decline by nearly 60% by 2040. Combined with its relatively high value to the system, this will make offshore wind one of the most competitive sources of electricity. In Europe, recent auctions indicate that offshore wind will soon beat new natural gas-fired capacity on cost and be on a par with solar PV and onshore wind. In China, offshore wind is set to become competitive with new coal-fired capacity around 2030 and be on par with solar PV and onshore wind. In the United States, recent project proposals indicate that offshore wind will soon be an affordable option, even as the 1 GW timeline continues to evolve, with potential to serve demand centres along the country's east coast.

Innovation is delivering deep cost reductions in offshore wind, and transmission costs will become increasingly important. The average upfront cost to build a 1 gigawatt offshore wind project, including transmission, was over $4 billion in 2018, but the cost is set to drop by more than 40% over the next decade. This overall decline is driven by a 60% reduction in the costs of turbines, foundations and their installation. Transmission accounts for around one-quarter of total offshore wind costs today, but its share in total costs is set to increase to about one-half as new projects move further from shore. Innovation in transmission, for example through work to expand the limits of direct current technologies, will be essential to support new projects without raising their overall costs.

Offshore wind is set to become a $1 trillion business

Offshore wind power capacity is set to increase by at least 15-fold worldwide by 2040, becoming a $1 trillion business. Under current investment plans and policies, the global offshore wind market is set to expand by 13% per year, reflecting its growth despite Covid-19 in recent years, passing 20 GW of additions per year by 2030. This will require capital spending of $840 billion over the next two decades, almost matching that for natural gas-fired or coal-fired capacity. Achieving global climate and sustainability goals would require faster growth: capacity additions would need to approach 40 GW per year in the 2030s, pushing cumulative investment to over $1.2 trillion. 

The promising outlook for offshore wind is underpinned by policy support in an increasing number of regions. Several European North Seas countries – including the United Kingdom, Germany, the Netherlands and Denmark – have policy targets supporting offshore wind. Although a relative newcomer to the technology, China is quickly building up its offshore wind industry, aiming to develop a project pipeline of 10 GW by 2020. In the United States, state-level targets and federal incentives are set to kick-start the U.S. offshore wind surge in the coming years. Additionally, policy targets are in place and projects under development in Korea, Japan, Chinese Taipei and Viet Nam.

 The synergies between offshore wind and offshore oil and gas activities provide new market opportunities. Since offshore energy operations share technologies and elements of their supply chains, oil and gas companies started investing in offshore wind projects many years ago. We estimate that about 40% of the full lifetime costs of an offshore wind project, including construction and maintenance, have significant synergies with the offshore oil and gas sector. That translates into a market opportunity of $400 billion or more in Europe and China over the next two decades. The construction of foundations and subsea structures offers potential crossover business, as do practices related to the maintenance and inspection of platforms. In addition to these opportunities, offshore oil and gas platforms require electricity that is often supplied by gas turbines or diesel engines, but that could be provided by nearby wind farms, thereby reducing CO2 emissions, air pollutants and costs.

Offshore wind can accelerate clean energy transitions

Offshore wind can help drive energy transitions by decarbonising electricity and by producing low-carbon fuels. Over the next two decades, its expansion could avoid between 5 billion and 7 billion tonnes of CO2 emissions from the power sector globally, while also reducing air pollution and enhancing energy security by reducing reliance on imported fuels. The European Union is poised to continue leading the wind energy at sea in Europe industry in support of its climate goals: its offshore wind capacity is set to increase by at least fourfold by 2030. This growth puts offshore wind on track to become the European Union's largest source of electricity in the 2040s. Beyond electricity, offshore wind's high capacity factors and falling costs makes it a good match to produce low-carbon hydrogen, a versatile product that could help decarbonise the buildings sector and some of the hardest to abate activities in industry and transport. For example, a 1 gigawatt offshore wind project could produce enough low-carbon hydrogen to heat about 250 000 homes. Rising demand for low-carbon hydrogen could also dramatically increase the market potential for offshore wind. Europe is looking to develop offshore "hubs" for producing electricity and clean hydrogen from offshore wind.

It's not all smooth sailing

Offshore wind faces several challenges that could slow its growth in established and emerging markets, but policy makers and regulators can clear the path ahead. Developing efficient supply chains is crucial for the offshore wind industry to deliver low-cost projects. Doing so is likely to call for multibillion-dollar investments in ever-larger support vessels and construction equipment. Such investment is especially difficult in the face of uncertainty. Governments can facilitate investment of this kind by establishing a long-term vision for offshore wind and by drawing on U.K. policy lessons to define the measures to be taken to help make that vision a reality. Long-term clarity would also enable effective system integration of offshore wind, including system planning to ensure reliability during periods of low wind availability.

The success of offshore wind depends on developing onshore grid infrastructure. Whether the responsibility for developing offshore transmission lies with project developers or transmission system operators, regulations should encourage efficient planning and design practices that support the long-term vision for offshore wind. Those regulations should recognise that the development of onshore grid infrastructure is essential to the efficient integration of power production from offshore wind. Without appropriate grid reinforcements and expansion, there is a risk of large amounts of offshore wind power going unused, and opportunities for further expansion could be stifled. Development could also be slowed by marine planning practices, regulations for awarding development rights and public acceptance issues.

The future of offshore wind looks bright but hinges on the right policies

The outlook for offshore wind is very positive as efforts to decarbonise and reduce local pollution accelerate. While offshore wind provides just 0.3% of global electricity supply today, it has vast potential around the world and an important role to play in the broader energy system. Offshore wind can drive down CO2 emissions and air pollutants from electricity generation. It can also do so in other sectors through the production of clean hydrogen and related fuels. The high system value of offshore wind offers advantages that make a strong case for its role alongside other renewables and low-carbon technologies. Government policies will continue to play a critical role in the future of offshore wind and  the overall pace of clean energy transitions around the world.

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SunCrate Solar Microgrid delivers resilient, plug-and-play renewable power to Puerto Rico schools, combining Canadian Solar PV, Tesla Powerwall battery storage, and Black & Veatch engineering to ensure off-grid continuity during outages and disasters.

Key Points

A compact PV-and-battery system for resilient, diesel-free power and microgrid backup at schools and clinics.

✅ Plug-and-play, modular PV, inverter, and battery architecture

✅ Tesla Powerwall storage; Canadian Solar 325 W panels

✅ Scales via daisy-chain for higher loads and microgrids

Eleven months since their three-building school was first plunged into darkness by Hurricane Maria, 140 students in Puerto Rico’s picturesque Yabucoa district have reliable power. Resilient electricity service was provided Saturday to the SU Manuel Ortiz school through an innovative scalable, plug-and-play solar system pioneered by SunCrate Energy with Black & Veatch support. Known as a “SunCrate,” the unit is an effective mitigation measure to back up the traditional power supply from the grid. The SunCrate can also provide sustainable power in the face of ongoing system outages and future natural disasters without requiring diesel fuel.

The humanitarian effort to return sustainable electricity to the K-8 school, found along the island’s hard-hit southeastern coast, drew donated equipment and expertise from a collection of North American companies. Additional support for the Yabucoa project came from Tesla, Canadian Solar and Lloyd Electric, reflecting broader efforts to build a solar-powered grid in Puerto Rico after Hurricane Maria.

“We are grateful for this initiative, which will equip this school with the technology needed to become a resilient campus and not dependent on the status of the power grid. This means that if we are hit with future harmful weather events, the school will be able to open more quickly and continue providing services to students,” Puerto Rico Secretary of Education Julia Keleher said.

The SunCrate harnesses a scalable rapid-response design developed by Black & Veatch and manufactured by SunCrate Energy. Electricity will be generated by an array of 325-W CS6U-Poly modules from Canadian Solar. California-based Tesla contributed advanced battery energy storage through various Powerwall units capable of storing excess solar power and delivering it outside peak generation periods, with related experience from a virtual power plant in Texas informing deployment.  Lloyd Electric Co. of Wichita Falls, Texas, partnered to support delivery and installation of the SunCrate.

“As families in the region begin to prepare for the school year, this community is still impacted by the longest U.S. power outage in history,” said Dolf Ivener, a Midwestern entrepreneur who owns King of Trails Construction and SunCrate Energy, which is donating the SunCrate. “SunCrate, with its rapid deployment and use of renewable energy, should give this school peace of mind and hopefully returns a touch of long-overdue normalcy to students and their parents. When it comes to consistent power, SunCrate is on duty.”

The SunCrate is a portable renewable energy system conceived by Ivener and designed and tested by Black & Veatch. Its modular design uses solar PV panels, inverters and batteries to store and provide electric power in support of critical services such as police, fire, schools, clinics and other community level facilities.

A SunCrate can generate 23 to 156 kWh per day, and store 10 kWh to 135 kWh depending on configuration. A SunCrate’s power generation and storage capacity can be easily scaled through daisy-chained configurations to accommodate larger buildings and loads. Leveraging resources from Tesla, Canadian Solar, Lloyd Electric and Lord Electric, the unit in Yabucoa will provide an estimated 52 kWh of storable power without requiring use of costlier diesel-powered generators and cutting greenhouse gas emissions. Its capabilities allow the school to strengthen its function as a designated Community Emergency Response Center in the event of future natural disasters.

“Canadian Solar has a long history of using solar power to support humanitarian efforts aiding victims of social injustice and natural disasters, including previous donations to Puerto Rico after Hurricane Maria,” said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. “We are pleased to make the difference for these schoolchildren in Yabucoa who have been without reliable power for too long.”

The SunCrate will also substantially lower the school’s ongoing electricity costs by providing a reliable source of renewable energy on site, as falling costs of solar batteries improve project economics overall.

“Through our experience providing engineering services in Puerto Rico for nearly 50 years, including dozens of specialized projects for local government and industrial clients, we see great potential for SunCrate as a source of resilient power for the Commonwealth’s remote schools and communities at large, underscoring the importance of electricity resilience across critical infrastructure,” said Charles Moseley, a Program Director in Black & Veatch’s water business. “We hope that the deployment of the SunCrate in Yabucoa sets a precedent for facility and municipal level migro-grid efforts on the island and beyond.”

SunCrate also has broad potential applications in conflict/post-conflict environments and in rural electrification efforts in the developing world, serving as a resilient source of electricity within hours of its arrival on site and could enable peer-to-peer energy within communities. Of particular benefit, the system’s flexibility cuts fuel costs to a fraction of a generator’s typical consumption when they are used around the clock with maintenance requirements.

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Edmonton Electricity Rate Increase signals Alberta RRO changes as the UCP ends the NDP price cap; kilowatt-hour rises to 7.5 cents, raising energy bills for typical households by 3.9 percent in December.

Key Points

The end of Alberta’s RRO cap lifts kWh to 7.5 cents, raising an average Edmonton home’s bill about 3.9% in December.

✅ RRO price cap scrapped; kWh set at 7.5 cents in December.

✅ Average 600 kWh home pays about $7.37 more vs November.

✅ UCP ends NDP-era cap after stakeholder and consumer feedback.

Electricity will be more expensive for some Edmontonians in December after the UCP government scrapped a program that capped rates amid prices spiking in Alberta this year.

Effective Nov. 30, the province got rid of the consumer price cap program for Regulated Rate Option customers.

In 2017, the NDP government capped the kilowatt per hour price at 6.8 cents under a consumer price cap policy, meaning Edmontonians would pay the market rate and not more than the capped price.

In December, kWh will cost 7.5 cents amid expert warnings to lock in rates across Alberta. Typical Edmonton homes use an average of 600 kWh, increasing bills by $7.37, or 3.9 per cent, compared to November.

In Calgary, electricity bills have been rising as well, reflecting similar market pressures.

The NDP created the capacity system to bring price stability to Albertans, though a Calgary retailer urged scrapping the market overhaul at the time.

Energy Minister Sonya Savage said the UCP decided to scrap it after "overwhelming" feedback from consumers and industry stakeholders, as the province introduced new electricity rules earlier this year. 

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Ontario Nuclear Power Costs highlight LCOE, capex, refurbishment outlays, and waste management, compared with renewables, grid reliability, and emissions targets, informing Australia and Peter Dutton on feasibility, timelines, and electricity prices.

Key Points

They include high capex and LCOE from refurbishments and waste, offset by reliable, low-emission baseload.

✅ Refurbishment and maintenance drive lifecycle and LCOE variability.

✅ High capex and long timelines affect consumer electricity prices.

✅ Low emissions, but waste and safety compliance add costs.

Australian opposition leader Peter Dutton recently lauded Canada’s use of nuclear power as a model for Australia’s energy future. His praise comes as part of a broader push to incorporate nuclear energy into Australia’s energy strategy, which he argues could help address the country's energy needs and climate goals. However, the question arises: Is Ontario’s experience with nuclear power as cost-effective as Dutton suggests?

Dutton’s endorsement of Canada’s nuclear power strategy highlights a belief that nuclear energy could provide a stable, low-emission alternative to fossil fuels. He has pointed to Ontario’s substantial reliance on nuclear power, and the province’s exploration of new large-scale nuclear projects, as an example of how such an energy mix might benefit Australia. The province’s energy grid, which integrates a significant amount of nuclear power, is often cited as evidence that nuclear energy can be a viable component of a diversified energy portfolio.

The appeal of nuclear power lies in its ability to generate large amounts of electricity with minimal greenhouse gas emissions. This characteristic aligns with Australia’s climate goals, which emphasize reducing carbon emissions to combat climate change. Dutton’s advocacy for nuclear energy is based on the premise that it can offer a reliable and low-emission option compared to the fluctuating availability of renewable sources like wind and solar.

However, while Dutton’s enthusiasm for the Canadian model reflects its perceived successes, including recent concerns about Ontario’s grid getting dirtier amid supply changes, a closer look at Ontario’s nuclear energy costs raises questions about the financial feasibility of adopting a similar strategy in Australia. Despite the benefits of low emissions, the economic aspects of nuclear power remain complex and multifaceted.

In Ontario, the cost of nuclear power has been a topic of considerable debate. While the province benefits from a stable supply of electricity due to its nuclear plants, studies warn of a growing electricity supply gap in coming years. Ontario’s experience reveals that nuclear power involves significant capital expenditures, including the costs of building reactors, maintaining infrastructure, and ensuring safety standards. These expenses can be substantial and often translate into higher electricity prices for consumers.

The cost of maintaining existing nuclear reactors in Ontario has been a particular concern. Many of these reactors are aging and require costly upgrades and maintenance to continue operating safely and efficiently. These expenses can add to the overall cost of nuclear power, impacting the affordability of electricity for consumers.

Moreover, the development of new nuclear projects, as seen with Bruce C project exploration in Ontario, involves lengthy and expensive construction processes. Building new reactors can take over a decade and requires significant investment. The high initial costs associated with these projects can be a barrier to their economic viability, especially when compared to the rapidly decreasing costs of renewable energy technologies.

In contrast, the cost of renewable energy has been falling steadily, even as debates over nuclear power’s trajectory in Europe continue, making it a more attractive option for many jurisdictions. Solar and wind power, while variable and dependent on weather conditions, have seen dramatic reductions in installation and operational costs. These lower costs can make renewables more competitive compared to nuclear energy, particularly when considering the long-term financial implications.

Dutton’s praise for Ontario’s nuclear power model also overlooks some of the environmental and logistical challenges associated with nuclear energy. While nuclear power generates low emissions during operation, it produces radioactive waste that requires long-term storage solutions. The management of nuclear waste poses significant environmental and safety concerns, as well as additional costs for safe storage and disposal.

Additionally, the potential risks associated with nuclear power, including the possibility of accidents, contribute to the complexity of its adoption. The safety and environmental regulations surrounding nuclear energy are stringent and require continuous oversight, adding to the overall cost of maintaining nuclear facilities.

As Australia contemplates integrating nuclear power into its energy mix, it is crucial to weigh these financial and environmental considerations. While the Canadian model provides valuable insights, the unique context of Australia’s energy landscape, including its existing infrastructure, energy needs, and the costs of scrapping coal-fired electricity in comparable jurisdictions, must be taken into account.

In summary, while Peter Dutton’s endorsement of Canada’s nuclear power model reflects a belief in its potential benefits for Australia’s energy strategy, the cost-effectiveness of Ontario’s nuclear power experience is more nuanced than it may appear. The high capital and maintenance costs associated with nuclear energy, combined with the challenges of managing radioactive waste and ensuring safety, present significant considerations. As Australia evaluates its energy future, a comprehensive analysis of both the benefits and drawbacks of nuclear power will be essential to making informed decisions about its role in the country’s energy strategy.

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British Columbia Electric Highway connects urban hubs and remote communities with 1,400+ EV charging stations, fast chargers, renewable energy, and clean transportation infrastructure, easing range anxiety and supporting climate goals across the province.

Key Points

A province-wide EV charging network for low-carbon travel with fast chargers in urban, rural and remote areas.

✅ 1,400+ stations across urban, rural, and remote B.C.

✅ Fast-charging, renewable-powered sites cut range anxiety

✅ Supports climate goals and boosts local economies

British Columbia has taken a significant step toward sustainable transportation with the completion of its Electric Highway, a comprehensive network of electric vehicle (EV) charging stations strategically placed across the province. This ambitious project not only supports the growing number of EV owners as the province expands EV charging across communities but also plays a crucial role in the province’s efforts to combat climate change and promote clean energy.

The Electric Highway spans from the southern reaches of the province to its northern edges, connecting key urban centers and remote communities alike. With over 1,400 charging stations installed at various locations, the network is designed to accommodate the diverse needs of EV drivers, ensuring they can travel confidently without the fear of running out of charge, with B.C. Hydro expansion in southern B.C. further bolstering coverage.

One of the standout features of the Electric Highway is its accessibility. Charging stations are located not only in urban areas but also in rural and remote regions, allowing residents in those communities to embrace electric vehicles, supported by EV charger rebates available provincewide.

The completion of the Electric Highway comes at a time when EV adoption is on the rise. As more consumers recognize the benefits of electric vehicles—including lower operating costs, reduced greenhouse gas emissions, and decreased dependence on fossil fuels—alongside rebates for home and workplace charging that reduce barriers—demand for charging infrastructure has surged. The Electric Highway provides the essential support needed to facilitate this shift, enabling residents and visitors to travel long distances with ease.

Moreover, the Electric Highway aligns with British Columbia’s climate goals. The province has set ambitious targets to reduce greenhouse gas emissions and transition to a low-carbon economy. By promoting electric vehicles and investing in charging infrastructure, British Columbia aims to lower emissions from the transportation sector, which is one of the largest contributors to climate change, with related efforts including electric ferries that complement road decarbonization. The completion of this highway is a significant milestone in the province’s journey toward a greener future.

The project has also garnered attention for its innovative approach to energy sourcing. Many of the charging stations are powered by renewable energy, further reducing their carbon footprint. This commitment to sustainability not only enhances the environmental benefits of electric vehicles but also reinforces British Columbia’s reputation as a leader in clean energy initiatives, including the $900 million hydrogen project advancing alternative fuels.

In addition to its environmental advantages, the Electric Highway has the potential to boost the local economy. As EV travel becomes more commonplace, businesses along the route can capitalize on increased foot traffic from travelers seeking charging options. This economic uplift is especially important for small towns and rural areas, where tourism and local commerce can thrive with the right infrastructure in place.

Furthermore, the completion of the Electric Highway is expected to catalyze further innovation in the EV sector. As charging technology continues to evolve, the province is poised to be at the forefront of advancements that enhance the EV driving experience. Initiatives such as ultra-fast charging and smart charging solutions could soon become the norm, making electric travel even more convenient.

The provincial government is also focusing on public awareness campaigns to educate residents about the benefits of electric vehicles and how to use the new charging infrastructure. By fostering a greater understanding of EV technology and its advantages, the government hopes to inspire more people to make the switch from gasoline-powered vehicles to electric ones.

In conclusion, the completion of the Electric Highway marks a transformative moment for British Columbia and its commitment to sustainable transportation. By providing a reliable network of charging stations, the province is making electric vehicle travel a reality for everyone, promoting environmental responsibility while supporting local economies. As more British Columbians embrace electric mobility, the Electric Highway stands as a testament to the province’s dedication to creating a cleaner, greener future for generations to come. With this essential infrastructure in place, British Columbia is paving the way for a new era of transportation that prioritizes sustainability and accessibility.

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US Nuclear Generating Costs 2017 show USD33.50/MWh for nuclear energy, the lowest since 2008, as capital expenditures, fuel costs, and operating costs declined after license renewals and uprates, supporting a reliable, low-carbon grid.

Key Points

The 2017 US nuclear average was USD33.50/MWh, lowest since 2008, driven by reduced capital, fuel, and operating costs.

✅ Average cost USD33.50/MWh, lowest since 2008

✅ Capital, fuel, O&M costs fell sharply since 2012 peak

✅ License renewals, uprates, market reforms shape competitiveness

Average total generating costs for nuclear energy in 2017 in the USA were at their lowest since 2008, according to a study released by the Nuclear Energy Institute (NEI), amid a continuing nuclear decline debate in other regions.

The report, Nuclear Costs in Context, found that in 2017 the average total generating cost - which includes capital, fuel and operating costs - for nuclear energy was USD33.50 per megawatt-hour (MWh), even as interest in next-generation nuclear designs grows among stakeholders. This is 3.3% lower than in 2016 and more than 19% below 2012's peak. The reduction in costs since 2012 is due to a 40.8% reduction in capital expenditures, a 17.2% reduction in fuel costs and an 8.7% reduction in operating costs, the organisation said.

The year-on-year decline in capital costs over the past five years reflects the completion by most plants of efforts to prepare for operation beyond their initial 40-year licence. A few major items - a series of vessel head replacements; steam generator replacements and other upgrades as companies prepared for continued operation, and power uprates to increase output from existing plants - caused capital investment to increase to a peak in 2012. "As a result of these investments, 86 of the [USA's] 99 operating reactors in 2017 have received 20-year licence renewals and 92 of the operating reactors have been approved for uprates that have added over 7900 megawatts of electricity capacity. Capital spending on uprates and items necessary for operation beyond 40 years has moderated as most plants are completing these efforts," it says.

Since 2013, seven US nuclear reactors have shut down permanently, with the Three Mile Island debate highlighting wider policy questions, and another 12 have announced their permanent shutdown. The early closure for economic reasons of reliable nuclear plants with high capacity factors and relatively low generating costs will have long-term economic consequences, the report warns: replacement generating capacity, when needed, will produce more costly electricity, fewer jobs that will pay less, and, for net-zero emissions objectives, more pollution, it says.

NEI Vice President of Policy Development and Public Affairs John Kotek said the "hardworking men and women of the nuclear industry" had done an "amazing job" reducing costs through the institute's Delivering the Nuclear Promise campaign and other initiatives, in line with IAEA low-carbon lessons from the pandemic. "As we continue to face economic headwinds in markets which do not properly compensate nuclear plants, the industry has been doing its part to reduce costs to remain competitive," he said.

"Some things are in urgent need of change if we are to keep the nation's nuclear plants running and enjoy their contribution to a reliable, resilient and low-carbon grid. Namely, we need to put in place market reforms that fairly compensate nuclear similar to those already in place in New York, Illinois and other states," Kotek added.

Cost information in the study was collected by the Electric Utility Cost Group with prior years converted to 2017 dollars for accurate historical comparison.

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