Chernobyl disaster persists today

By Reuters


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Any Ukrainian over 35 can tell you where they were when they heard about the accident at the Chernobyl plant.

"I remember calling my husband. There had been rumors for days about a nuclear accident. We had even hung blankets on the windows to stop radiation because we didn't know what to do," said Natalya, a 46-year-old financial analyst in Kiev, whose husband was a journalist on a daily newspaper.

"He told me there had been a fire at the atomic plant in Chernobyl. That was for me the first confirmation that the reactor had collapsed," she said, seated at her desk in her central Kiev office.

"We had no idea what to expect. It was awful."

As Japan battles to prevent a meltdown at its earthquake-hit Fukushima Daini nuclear plant, the people of Ukraine are preparing to mark the 25th anniversary of the world's worst nuclear accident.

The physical and financial legacies of that disaster are obvious: a 30-km uninhabited ring around the Chernobyl plant, billions of dollars spent cleaning the region and a major new effort to drum up 600 million euros $840 million in fresh funds that Kiev says is needed to build a more durable casement over the stricken reactor.

Just as powerful are the scars that are less easily seen: fear and an abiding suspicion that despite the reassuring reports by authorities and scientific bodies people may still be dying from radiation after-effects.

While debate about the health impact continues, there is little doubt people in Ukraine and neighboring Belarus carry a psychological burden. Repeated studies have found that "exposed populations had anxiety levels that were twice as high" as people unaffected by the accident, according to a 2006 United Nations report. Those exposed to radiation were also "3-4 times more likely to report multiple unexplained physical symptoms and subjective poor health than were unaffected control groups."

There are, of course, crucial differences between Chernobyl and the disaster unfolding in Japan.

The Chernobyl accident was the product of human error when a test was poorly executed, while the Japanese failure was triggered by an earthquake and tsunami.

Chernobyl occurred in a secretive Soviet society which reformer Mikhail Gorbachev was only just opening up. The authorities embarked on an attempted cover-up and only partly admitted the truth three days later, denying themselves the chance of rapid international aid.

Despite criticisms that Tokyo could be a lot more transparent, Japan's disaster has taken place in a relatively open society and international help has been quick to come.

Most importantly, thick containment walls at the Fukushima Daini plant shield the reactor cores so that even if there was a meltdown of the nuclear fuel it's unlikely to lead to a major escape of dangerous radioactive clouds into the atmosphere.

At Chernobyl, there was no containment structure.

"When it blew, it blew everything straight out into the atmosphere," said Murray Jennex of San Diego State University.

Despite those differences, though, the Chernobyl experience still contains lessons for Japan and other countries, says Volodymyr Holosha, the top Ukrainian Emergency Ministry official in charge of the area surrounding the Chernobyl plant.

"We were not ready for it — neither technologically nor financially," Holosha told reporters in Kiev last month. "This is a priceless experience for other countries."

In the early hours of April 26, 1986, in the model Soviet town of Prypyat, a satellite of the much bigger Chernobyl, workers at a nuclear power plant demobilized the safety systems on the number four reactor, which had come on line only three years previously.

It was a risky experiment to see whether the cooling system could still function using power generated from the reactor alone in the event of a failure in the auxiliary electricity supply.

It could not. There was a massive power surge that blew off the reactor's heavy concrete and metal lid and sent smoldering nuclear material into the atmosphere. Dozens of plant staff died on the spot or immediately afterwards in hospital. Hundreds of thousands of rescue workers, including Soviet Army conscripts, were rushed to the site to put out the fires, decontaminate it and seal off the damaged reactor by building a concrete shell around it.

At first, authorities denied there was a problem. When they finally admitted the truth more than a day later, many thousands of inhabitants simply picked up a few of their belongings and headed off -- many of them to the capital Kiev 80 km 50 miles to the south, never to return. Iryna Lobanova, 44, a civil servant, was due to get married in Prypyat on the day of the explosion but assumed all ceremonies would be canceled.

"I thought that war had started," she told Reuters.

"But the local authorities told us go on with all planned ceremonies." Nobody was allowed to leave the town until the official evacuation was announced on the Sunday — 36 hours later — "following an order from Moscow," she said.

Lobanova went ahead with her wedding — and left the next day with her husband by train.

The make-shift concrete shelter hastily thrown up in the months after the explosion is often referred to as a "sarcophagus", a funeral term made even more fitting by the fact that it houses the body of at least one plant worker who rescuers were unable to recover.

The official short-term death toll from the accident was 31 but many more people died of radiation-related sicknesses such as cancer. The total death toll and long-term health effects remain a subject of intense debate even 25 years after the disaster.

"The disaster brought suffering on millions of people," said the Emergency Ministry's Holosha.

"About 600,000 people were involved in mitigating the consequences of the accident. About 300,000 of them were Ukrainians. Out of those, 100,000 are disabled now."

A 2008 United Nations study cited a "dramatic increase in thyroid cancer incidence" in the Ukraine and just across the border in Belarus. Children seemed to be especially vulnerable because they drank milk with high levels of radioactive iodine.

"One arrives at between 12,000 and 83,000 children born with congenital deformations in the region of Chernobyl, and around 30,000 to 207,000 genetically damaged children worldwide," German physicians' organization IPPNW said in a report in 2006.

Those figures are far lower than health officials had predicted. Indeed, the UN says that overall health effects were less severe than initially expected and that only a few thousand people had died as a result of the accident.

But a 2009 book by a group of Russian and Belarussian scientists published by the New York Academy of Sciences argued that previous studies were misled by rigged Soviet statistics.

"The official position of the Chernobyl Forum a group of UN agencies is that about 9,000 related deaths have occurred and some 200,000 people have illnesses caused by the catastrophe," authors Alexei Yablokov, Vasily Nesterenko and Alexei Nesterenko wrote in "Chernobyl: Consequences of the catastrophe for people and the Environment".

"A more accurate number estimates nearly 400 million human beings have been exposed to Chernobyl's radioactive fallout and, for many generations, they and their descendants will suffer the devastating consequences."

The authors argued that the global death toll by 2004 was closer to 1 million and said health effects included birth defects, pregnancy losses, accelerated aging, brain damage, heart, endocrine, kidney, gastrointestinal and lung diseases.

"It is clear that tens of millions of people, not only in Belarus, Ukraine and Russia, but worldwide, will live under measurable chronic radioactive contamination for many decades," they wrote.

The most severe contamination occurred within the so-called Exclusion Zone, a circular area around the power plant with a radius of 30 kilometers 19 miles that has been deemed unsuitable for living and is closed to unsanctioned visitors.

Several villages and a whole pine forest in the zone were bulldozed and buried shortly after the disaster. Other small settlements are overgrown with trees and bushes that have made the red and white brick houses barely visible.

Prypyat, built to house Chernobyl power plant workers and their families and with a bright future ahead of it as a model Soviet 'atomgrad' town, had a pre-disaster population of about 50,000.

Now it is a ghost town that greets its rare visitors with eerie silence.

A shop building in the center is full of rubble and broken furniture — remnants of years of looting which the government could not prevent and which spread hazardous substances across the country.

A portrait of Soviet state founder Vladimir Lenin lies on the floor, covered by a thick layer of dust.

At a children's amusement park, a Ferris wheel due to be launched less than a week after the disaster is rusting away.

Prypyat's residents, mostly young families, were evacuated in a six-hour operation, which began more than 36 hours after the accident.

In the days that followed, as the fallout was driven by a southeast wind across neighboring Belarus, the Soviet government evacuated thousands of people from other areas under threat.

"We were evacuated on May 4," said Makar Krasovsky, 73, who lived in the Belarussian village of Pogonnoye 27 km 17 miles from the plant. "Children had been evacuated earlier, on May 1. Nobody knew anything. Nobody told us anything."

"We were told to take with us clothes for the next three days but nothing else because everything was contaminated. They promised us the reactor would be shut down and we would return in three days," he said by telephone from the town of Khoyniki.

Pogonnoye is still sealed off and visits are only allowed once a year — on a day when local Orthodox Christians attend the graves of their ancestors.

The accident prompted former Socialist bloc nations to shut down reactors of the same design. But the Chernobyl plant itself kept running until 2000 when Ukraine agreed to shut it down after Kiev was promised European aid.

The European Commission and international donors have since committed about 2 billion euros to projects aimed at cleaning up the area and securing the plant. Another 740 million euros remains to be raised: 600 million for the new casement and 140 million waste storage facilities.

Holosha says Ukraine itself has spent much more.

"Since Ukraine gained independence after the collapse of the Soviet Union, $12 billion has been spent on dealing with the consequences of the accident," he said. "Most of the expenditures were linked to maintaining the exclusion zone and providing healthcare and social assistance to those who had lived in the affected area."

The key new project at the plant is the construction of the so-called New Safe Confinement — a massive convex structure that will be assembled away from the damaged reactor and then slid into place over the existing sarcophagus. The original concrete tomb was built hastily, is supported in part by the damaged walls of the reactor building, and has already had to be reinforced.

The new structure is designed to last 100 years and should allow the reactor to be dismantled without the risk of new contamination.

The project requires 600 million euros US $840 million in additional financing and is likely to miss the 2012 completion target by a few years due to problems such as radioactive debris encountered during excavation works.

Ukraine hopes to raise most of the funds at an international donors conference set to take place in Kiev next month on the eve of the 25th anniversary of the grim event.

Officials say Ukraine is likely to spend billions of euros on confinement upkeep costs before it finds a way to bury the reactor components, perhaps under layers of underground granite rocks. Even then the area around the plant will remain unsuitable for thousands of years. Asked how long before people can settle down and grow crops at the site, Chernobyl power plant director Ihor Gramotkin said: "At least 20,000 years."

Yury Andreyev, shift chief at the plant's number two reactor on the night of the explosions and now head of a non-government body representing the interests of those who fought to control the disaster, sees no danger of the Japan drama taking on the seriousness of Chernobyl.

"The scale of the destruction in Japan, both nuclear and radiation, is 10,000 times lower that what happened to us in Chernobyl. About 30 tonnes of nuclear fuel were discharged at Chernobyl. Here in Japan there was not the same discharge," he told journalists.

Despite the scale of the Chernobyl disaster, both Ukraine and Belarus still rely heavily on nuclear energy, having no developed hydrocarbon resources. In the coming months, both plan to borrow billion of dollars from Russia to finance the construction of new reactors of Russian design.

But that doesn't mean people have forgotten. Locals in Kiev, 80 km 50 miles from Chernobyl, will still tell you that they heard no birdsong in the Spring of 1986 and that the leaves of the elegant chestnut trees that line the capital's boulevards turned yellow a month early.

The disaster and the government's handling of it highlighted the shortcomings of the Soviet system with its unaccountable bureaucrats and entrenched culture of secrecy. Journalists subsequently uncovered evidence that the children of Communist apparatchiks had been evacuated well before others and some staff died at the plant because they had not been given orders to leave.

Mikhail Gorbachev has since said he considered the disaster one of the main nails in the coffin of the Soviet Union which eventually collapsed in 1991. The nuclear disaster in Japan is unlikely to break the country's political system. But Tokyo should not underestimate the profound power of a nuclear meltdown — physical and political.

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Ontario unveils new tax breaks, subsidized hydro plan to spur economic recovery from COVID-19

Ontario COVID-19 Business Tax Relief outlines permanent Employer Health Tax exemptions, lower Business Education Tax rates, optional municipal property tax cuts, and hydro bill subsidies to support small businesses, industrial and commercial recovery.

 

Key Points

A provincial package of tax breaks and hydro subsidies to help small, industrial, and commercial businesses recover.

✅ Permanent Employer Health Tax exemption to $1M payroll

✅ Lower Business Education Tax rates for 94% of firms

✅ Hydro subsidies cut medium-large rates by 14-16%

 

The Ontario government's latest plan to help businesses survive and recover from the COVID-19 pandemic includes a suite of new tax breaks for small businesses and $1.3 billion to subsidize electricity bills for industrial and commercial operations.

The new measures were announced Thursday as part of Ontario's 2020 budget, which sets new provincial records for both spending and deficit projections.

The government of Premier Doug Ford says the budget will address barriers impeding long-term growth, ensuring the province forges a path to a full recovery from the pandemic.

"When the pandemic is over, Ontario will come back with a vengeance, stronger and more prosperous than ever before," Ford said at an afternoon news conference.

Small businesses with payrolls under $1 million will no longer have to pay the Employer Health Tax. The province temporarily raised the exemption from $490,000 to $1 million earlier this year, but the government is now making the change permanent.

The higher exemption means that about 90 per cent of Ontario businesses will no longer have to pay the tax, amounting to about $360 million by 2022, according to the province.

"We have heard from employers across Ontario that this measure helped them keep workers on the job during COVID-19," Finance Minister Rod Phillips told the legislature.

The 2020 budget lowers rates for the Business Education Tax (BET), a property tax earmarked for public education. More than 200,000 Ontario businesses, or 94 per cent, will see a lower rate.

"I believe this budget takes some significant initial steps to help stabilize the economy and help businesses, especially small businesses," said Toronto Mayor John Tory in a statement. Tory's office estimates that reductions to the BET will result in $117 million in lower taxes for commercial properties in Canada's largest city.

Municipal governments will also be permitted to reduce property taxes for small businesses, should they choose to do so. The province says it will "consider matching these reductions," which could amount to $385 million in tax relief by 2023.

Finance Minister Rod Phillips tabled the largest spending plan in Ontario history on Thursday afternoon. (Frank Gunn/The Canadian Press)
Municipalities currently have few options to provide targeted relief to local businesses. Guelph Mayor Cam Guthrie, chair of Ontario's Big City Mayors, said the prospect of lowering property taxes will likely be welcomed by local governments across the province.

"I really am looking forward to looking into that because it would give targeted relief to these businesses that have been asking for something from local governments for the past nine months," he said in an interview.

Tax cuts 'won't help a boarded up business,' NDP says
The 2020 budget does not contain any new direct funding for small businesses or their employees. NDP leader Andrea Horwath, who has proposed to make hydro public again, said those types of funding would help businesses more than potential tax reductions.

"A future hydro or tax cut won't help a boarded up business and it certainly won't help the folks that used to work there," Horwath said.

"Those measures are great if you're a company that's doing really well ... but let's face it, main streets across Ontario are crumbling."

Ontario did reveal on Thursday more details about a previously announced $300-million fund to support businesses in Toronto, Ottawa, Peel Region and York Region, which were placed under modified Stage 2 restrictions this fall. The money can be used to cover property taxes and energy bills for eligible businesses.

In a similar move, B.C. provided a three-month break on electricity bills for residents and businesses during the pandemic.

An undetermined amount of the $300 million will also be made available to businesses that are placed under "control" and "lockdown" rules, which are the two most severe restrictions in the province's updated reopening guidelines announced in October.

No regions are currently under these restrictions.

Elsewhere, B.C. saw commercial electricity consumption plummet during the COVID-19 pandemic.

Government to subsidize hydro bills for industrial businesses
The Ford government, which earlier oversaw a Hydro One leadership overhaul, is also taking aim at what it calls "job-killing electricity prices" in Ontario's industrial and commercial sectors.

The budget includes a $1.3 billion investment over three years to subsidize their hydro bills, a move praised by Canadian Manufacturers & Exporters as supportive of industry, which the province says have been inflated due to contracts signed by the previous Liberal government to purchase electricity generated by wind, solar and bioenergy.

"This is the legacy that is making our businesses uncompetitive," Phillips told reporters Thursday afternoon.

Ontario says its $1.3-billion investment to subsidize electricity bills will offset expensive contracts for green energy signed by the previous Liberal government. (Patrick Pleul/dpa via Associated Press)
The investment will lower rates for medium- and large-sized business by between 14 and 16 per cent, and follows an OEB decision on Hydro One rates that affects transmission and distribution costs, according to Ontario's calculations. Phillips said those rates will be among the lowest of any jurisdiction in the Great Lakes region.

The provincial government said the investment is necessary for Ontario to recover from the COVID-19 downturn. The Ford government expects that no further subsidies will be required by around 2040.

 

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Cyprus can’t delay joining the electricity highway

Cyprus Electricity Interconnectors link the island to the EU grid via EuroAsia and EuroAfrica projects, enabling renewable energy trade, subsea transmission, market liberalization, and stronger energy security and diplomacy across the region.

 

Key Points

Subsea links connecting Cyprus to Greece, Israel and Egypt for EU grid integration, renewable trade and energy security.

✅ Connects EU, Israel, Egypt via EuroAsia and EuroAfrica

✅ Enables renewables integration and market liberalization

✅ Strengthens energy security, investment, and diplomacy

 

Electricity interconnectors bridging Cyprus with the broader geographical region, mirroring projects like the Ireland-France grid link already underway in Europe, are crucial for its diplomacy while improving its game to become a clean energy hub.

In an interview with Phileleftheros daily, Andreas Poullikkas, chairman of the Cyprus Energy Regulatory Authority (CERA), said electricity cables such as the EuroAsia Interconnector and the EuroAfrica Interconnector, could turn the island into an energy hub, creating investment opportunities.

“Cyprus, with proper planning, can make the most of its energy potential, turning Cyprus into an electricity producer-state and hub by establishing electrical interconnections, such as the EuroAsia Interconnector and the EuroAfrica Interconnector,” said Poullikkas.

He said these electricity interconnectors, “will enable the island to become a hub for electricity transmission between the European Union, Israel and Egypt, with developments such as the Israel Electric Corporation settlement highlighting regional dynamics, while increasing our energy security”.

Poullikkas argued it will have beneficial consequences in shaping healthy conditions for liberalising the country’s electricity market and economy, facilitating the production of electricity with Renewable Energy Sources and supporting broader efforts like the UK grid transformation toward net zero.

“Electricity interconnections are an excellent opportunity for greater business flexibility in Cyprus, ushering new investment opportunities, as seen with the Lake Erie Connector investment across North America, either in electricity generation or other sectors. Especially at a time when any investment or financial opportunity is welcomed.”

He said Cyprus’ energy resources are a combination of hydrocarbon deposits and renewable energy sources, such as solar.

This combination offers the country a comparative advantage in the energy sector.

Cyprus can take advantage of the development of alternative supply routes of the EU, as more links such as new UK interconnectors come online.

Poullikkas argued that as energy networks are developing rapidly throughout the bloc, serving the ever-increasing needs for electricity, and aligning with the global energy interconnection vision highlighted in recent assessments, the need to connect Cyprus with its wider geographical area is a matter of urgency.

He argues the development of important energy infrastructure, especially electricity interconnections, is an important catalyst in the implementation of Cyprus goals, while recognising how rule changes like Australia's big battery market shift can affect storage strategies.

“It should also be a national political priority, as this will help strengthen diplomatic relations,” added Poullikkas.

Implementing the electricity interconnectors between Israel, Cyprus and Greece through Crete and Attica (EuroAsia Interconnector) has been delayed by two years.

He said the delay was brought about after Greece decided to separate the Crete-Attica section of the interconnection and treat as a national project.

Poullikkas stressed the Greek authorities are committed to ensuring the connection of Cyprus with the electricity market of the EU.

“All the required permits have been obtained from the competent authorities in Cyprus and upon the completion of the procedures with the preferred manufacturers, construction of the Cyprus-Crete electrical interconnection will begin before the end of this year. Based on current data, the entire interconnection is expected to be implemented in 2023”.

“The EuroAfrica Interconnector is in the pre-works stage, all project implementation studies have already been completed and submitted to the competent authorities, including cost and benefit studies”.

EuroAsia Interconnector is a leading EU project of common interest (PCI), also labelled as an “electricity highway” by the European Commission.

It connects the national grids of Israel, Cyprus and Greece, creating a reliable energy bridge between the continents of Asia and Europe allowing bi-directional transmission of electricity.

The cost of the entire subsea cable system, at 1,208km, the longest in the world and the deepest at 3,000m below sea level, is estimated at €2.5 bln.

Construction costs for the first phase of the Egypt-Cyprus interconnection (EuroAfrica) with a Stage 1 transmission capacity of 1,000MW is estimated at €1bln.

The Cyprus-Greece (Crete) interconnection, as well as the Egypt-Cyprus electricity interconnector, will both be commissioned by December 2023.

 

 

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Calgary electricity retailer urges government to scrap overhaul of power market

Alberta Capacity Market Overhaul faces scrutiny over electricity costs, reliability targets, investor certainty, and AESO design, as UCP reviews NDP reforms, renewables integration, and deregulated energy-only alternatives impacting generators, ratepayers, and future power price volatility.

 

Key Points

A shift paying generators for capacity and energy to improve reliability; critics warn of higher electricity costs.

✅ UCP reviewing NDP plan and subsidies amid market uncertainty

✅ AESO cites reliability needs as coal retires, renewables grow

✅ Critics predict overprocurement and premature launch cost spikes

 

Jason Kenney's government is facing renewed pressure to cancel a massive overhaul of Alberta's power market that one player says will needlessly spike costs by hundreds of millions of dollars, amid an electricity sector in profound change today.

Nick Clark, who owns the Calgary-based electricity retailer Spot Power, has sent the Alberta government an open letter urging it to walk away from the electricity market changes proposed by the former NDP government.

"How can you encourage new industry to open up when one of their raw material costs will increase so dramatically?" Clark said. "The capacity market will add more costs to the consumer and it will be a spiral downwards."

But NDP Leader Rachel Notley, whose government ushered in the changes, said fears over dramatic cost increases are unfounded.

"There are some players within the current electricity regime who have a vested interest in maintaining the current situation," Notley said

Kenney's UCP vowed during the recent election to review the current and proposed electricity market options, as the electricity market heads for a reshuffle, with plans to report on its findings within 90 days.

The party also promised to scrap subsidies for renewable power, while ensuring "a market-based electricity system" that emphasizes competition in Alberta's electricity market for consumers.

The New Democrats had opted to scrap the current deregulated power market — in place since the Klein era — after phasing out coal-fired generation and ushering in new renewable power as part of changes in how Alberta produces and pays for electricity under their climate change strategy.

The Alberta Electric System Operator, which oversees the grid, says the province will need new sources of electricity to replace shuttered coal plants and backstop wind and solar generators, while meeting new consumer demand.

After consulting with power companies and investors, the AESO concluded in late 2016 the electricity market couldn't attract enough investment to build the needed power generation under the current model.

The AESO said at the time investors were concerned their revenues would be uncertain once new plants are running. It recommended what's known as a capacity market, which compensates power generators for having the ability to produce electricity, even when they're not producing it.

In other words, producers would collect revenue for selling electricity into the grid and, separately, for having the capacity to produce power as a backstop, ensuring the lights stay on. Power generators would use this second source of income to help cover plant construction costs.

Clark said the complex system introduces unnecessary costs, which he believes would hurt consumers in the end. He said what's preventing investment in the power market is uncertainty over how the market will be structured in the future.

"What investors need to see in this market is price certainty, regulatory ease, and where the money they're putting into the marketplace is not at risk," he said.

"They can risk their own money, but if in fact the government comes in and changes the policy as it was doing, then money stayed away from the province."

Notley said a capacity market would not increase power bills but would avoid big price swings, with protections like a consumer price cap on power bills also debated, while bringing greener sources of energy into Alberta's grid.

"Moving back to the [deregulated] energy-only market would make a lot of money for a few people, and put consumers, both industrial and residential, at great risk."

Clark disagrees, citing Enmax's recent submissions to the Alberta Utilities Commission, in which the utility argues the proposed design of the capacity market is flawed.

In its submissions to the commission, which is considering the future of Alberta's power market, Enmax says the proposed system would overestimate the amount of generation capacity the province will need in the future. It says the calculation could result in Alberta procuring too much capacity.

The City of Calgary-owned utility says this could drive up costs by anywhere from $147 million to $849 million a year. It says a more conservative calculation of future electricity demand could avoid the extra expense.

An analysis by a Calgary energy consulting firm suggests a different feature of the proposed power market overhaul could also lead to a massive spike in costs.

EDC Associates, hired by the Consumers' Coalition of Alberta, argues the proposal to launch the new system in November 2021 may be premature, because it could bring in additional supplies of electricity before they're needed.

The consultant's report, also filed with the Alberta Utilities Commission, estimates the early launch date could require customers to pay 40 per cent more for electricity amid rising electricity prices in the province — potentially an extra $1.4 billion — in 2021/22.

"The target implementation date is politically driven by the previous government," said Duane Reid-Carlson, president of EDC Associates.

Reid-Carlson recommends delaying the launch date by several years and making another tweak: reducing the proposed target for system reliability, which would scale back the amount of power generation needed to backstop renewable sources.

"You could get a result in the capacity market that would give a similar cost to consumers that the [deregulated] energy-only market design would have done otherwise," he said.

"You could have a better risk profile associated with the capacity market that would serve consumers better through lower cost, lower price volatility, and it would serve generators better by giving them better access to capital at lower costs."

The UCP government did not respond to a request for comment.

 

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Hydro once made up around half of Alberta's power capacity. Why does Alberta have so little now?

Alberta Hydropower Potential highlights renewable energy, dams, reservoirs, grid flexibility, contrasting wind and solar growth with limited investment, regulatory hurdles, river basin resources, and decarbonization pathways across Athabasca, Peace, and Slave River systems.

 

Key Points

It is the technical capacity for new hydro in Alberta's river basins to support a more reliable, lower carbon grid.

✅ 42,000 GWh per year developable hydro identified in studies.

✅ Major potential in Athabasca, Peace, and Slave River basins.

✅ Barriers include high capital costs, market design, water rights.

 

When you think about renewable energy sources on the Prairies, your mind may go to the wind farms in southern Alberta, or even the Travers Solar Project, southeast of Calgary.

Most of the conversation around renewable energy in the province is dominated by advancements in solar and wind power, amid Alberta's renewable energy surge that continues to attract attention. 

But what about Canada's main source of electricity — hydro power?

More than half of Canada's electricity is generated from hydro sources, with 632.2 terawatt-hours produced as of 2019. That makes it the fourth largest installed capacity of hydropower in the world. 

But in Alberta, it's a different story. 

Currently, hydro power contributes between three and five per cent of Alberta's energy mix, while fossil fuels make up about 89 per cent.

According to Canada's Energy Future report from the Canada Energy Regulator, by 2050 it will make up two per cent of the province's electricity generation shares.

So why is it that a province so rich in mountains and rivers has so little hydro power?


Hydro's history in Alberta
Hydro power didn't always make up such a small sliver of Alberta's electricity generation. Hydro installations began in the early 20th century as the province's population exploded. 

Grant Berg looks after engineering for hydro for TransAlta, Alberta's largest producer of hydro power with 17 facilities across the province.

"Our first plant was Horseshoe, which started in 1911 that we formed as Calgary Power," he said. 

"It was really in response to the City of Calgary growing and having some power needs."

Berg said in 1913, TransAlta's second installation, the Kananaskis Plant, started as Calgary continued to grow.

A historical photo of a hydro-electric dam in Kananaskis Alta. taken in 1914.
Hydro power plant in Kananaskis as seen in 1914. (Glenbow Archives)
Some bigger installations were built in the 1920s, including Ghost reservoir, but by mid-century population growth increased.

"Quite a large build out really, I think in response to the growth in Alberta following the war. So through the 1950s really quite a large build out of hydro from there."

By the 1950s, around half of the province's installed capacity was hydro power.

"Definitely Calgary power was all hydro until the 1950s," said Berg. 


Hydro potential in the province 
Despite the current low numbers in hydroelectricity, Alberta does have potential. 

According to a 2010 study, there is approximately 42,000 gigawatt-hours per year of remaining developable hydroelectric energy potential at identified sites. 

An average home in Alberta uses around 7,200 kilowatt-hours of electricity per year, meaning that the hydro potential could power 5.8 million homes each year. 

"This volume of energy could be sufficient to serve a significant amount of Alberta's load and therefore play a meaningful role in the decarbonization of the province's electric system," the Alberta Electric System Operator said in its 2022 Pathways to Net-Zero Emissions report.

Much of that potential lies in northern Alberta, in the Athabasca, Peace and Slave River basins.

The AESO report says that despite the large resource potential, Alberta's energy-only market framework has attracted limited investment in hydroelectric generation. 

Hydro power was once a big deal in Alberta, but investment in the industry has been in decline since the 1950s. Climate change reporter Christy Climenhaga explains why.
So why does Alberta leave out such a large resource potential on the path to net zero?

The government of Alberta responded to that question in a statement. 

"Hydro facilities, particularly large scale ones involving dams, are associated with high costs and logistical demands," said the Ministry of Affordability and Utilities. 

"Downstream water rights for other uses, such as irrigation, further complicate the development of hydro projects."

The ministry went on to say that wind and solar projects have increased far more rapidly because they can be developed at relatively lower cost and shorter timelines, and with fewer logistical demands.

"Sources from wind power and solar are increasingly more competitive," said Jean-Denis Charlebois, chief economist with the Canadian Energy Regulator. 


Hydro on the path to net zero
Hydro power is incredibly important to Canada's grid, and will remain so, despite growth in wind and solar power across the province.

Charlebois said that across Canada, the energy make-up will depend on the province. 

"Canadian provinces will generate electricity in very different ways from coast to coast. The major drivers are essentially geography," he said. 

Charlebois says that in British Columbia, Manitoba, Quebec and Newfoundland and Labrador, hydropower generation will continue to make up the majority of the grid.

"In Alberta and Saskatchewan, we see a fair bit of potential for wind and solar expansion in the region, which is not necessarily the case on Canada's coastlines," he said.

And although hydro is renewable, it does bring its adverse effects to the environment — land use changes, changes in flow patterns, fish populations and ecosystems, which will have to be continually monitored. 

"You want to be able to manage downstream effects; make sure that you're doing all the proper things for the environment," said Ryan Braden, director of mining and hydro at TransAlta.

Braden said hydro power still has a part to play in Alberta, even with its smaller contributions to the future grid. 

"It's one of those things that, you know, the wind doesn't blow or the sun doesn't shine, this is here. The way we manage it, we can really support that supply and demand," he said.

 

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TC Energy confirms Ontario pumped storage project is advancing

Ontario Pumped Storage advances as Ontario's largest energy storage project, delivering clean electricity, long-duration capacity, and grid reliability for peak demand, led by TC Energy and Saugeen Ojibway Nation, with IESO review underway.

 

Key Points

A long-duration storage project in Meaford storing clean power for peak demand, supporting Ontario's emission-free grid.

✅ Stores clean electricity to power 1M homes for 11 hours

✅ Partnership: TC Energy and Saugeen Ojibway Nation

✅ Pending IESO review and OEB regulation decisions

 

In a bid to accelerate the province's ambitions for clean economic growth, TC Energy Corporation has announced significant progress in the development of the Ontario Pumped Storage Project. The Government of Ontario in Canada has unveiled a plan to address growing energy needs as a sustainable road map aimed at achieving an emission-free electricity sector, and as part of this plan, the Ministry of Energy is set to undertake a final evaluation of the proposed Ontario Pumped Storage Project. A decision is expected to be reached by the end of the year.

Ontario Pumped Storage is a collaborative effort between TC Energy and the Saugeen Ojibway Nation. The project is designed to be Ontario's largest energy storage initiative, capable of storing clean electricity to power one million homes for 11 hours. As the province strives to transition to a cleaner electricity grid by embracing clean power across sectors, long duration storage solutions like Ontario Pumped Storage will play a pivotal role in providing reliable, emission-free power during peak demand periods.

The success of the Project hinges on the approval of TC Energy's board of directors and a fruitful partnership agreement with the Saugeen Ojibway Nation. TC Energy is aiming for a final investment decision in 2024, as Ontario confronts an electricity shortfall in the coming years, with the anticipated in-service date being in the early 2030s, pending regulatory and corporate approvals.

“Ontario Pumped Storage will be a critical component of Ontario’s growing clean economy and will deliver significant benefits and savings to consumers,” said Corey Hessen, Executive Vice-President and President, TC Energy, Power and Energy Solutions. “Ontario continues to attract major investments that will have large power needs — many of which are seeking zero-emission energy before they invest. We are pleased the government is advancing efforts to recognize the significant role that long duration storage plays — firming resources, including new gas plants under provincial consideration, will become increasingly valuable in supporting a future emission-free electricity system.” 

The Municipality of Meaford also expressed its support for the project, recognizing the positive impact it could have on the local economy and the overall electricity system of Ontario. Additionally, various stakeholders, including LiUNA OPDC, LiUNA Local 183, and the Ontario Chamber of Commerce, lauded the potential for job creation, training opportunities, and resilient energy infrastructure as Ontario seeks new wind and solar power to ease a coming electricity supply crunch.

The timeline for Ontario Pumped Storage's progress includes a final analysis by the Independent Electricity System Operator (IESO) to confirm its role in Ontario's electricity system and in balancing demand and emissions during the transition, to be completed by 30 September 2023. Concurrently, the Ministry of Energy will engage in consultations on the potential regulation of the Project via the Ontario Energy Board, while debates over clean, affordable electricity intensify ahead of the Ontario election, with a final determination scheduled for 30 November 2023.

 

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Ontario explores possibility of new, large scale nuclear plants

Ontario Nuclear Expansion aims to meet rising electricity demand and decarbonization goals, complementing renewables with energy storage, hydroelectric, and SMRs, while reducing natural gas reliance and safeguarding grid reliability across the province.

 

Key Points

A plan to add large nuclear capacity to meet demand, support renewables, cut gas reliance, and maintain grid reliability

✅ Adds firm, low-carbon baseload to complement renewables

✅ Reduces reliance on natural gas during peak and outages

✅ Requires public and Indigenous engagement on siting

 

Ontario is exploring the possibility of building new, large-scale nuclear plants in order to meet increasing demand for electricity and phase out natural gas generation.

A report late last year by the Independent Electricity System Operator found that the province could fully eliminate natural gas from the electricity system by 2050, starting with a moratorium in 2027, but it will require about $400 billion in capital spending and more generation including new, large-scale nuclear plants.

Decarbonizing the grid, in addition to new nuclear, will require more conservation efforts, more renewable energy sources and more wind and solar power sources and more energy storage, the report concluded.

The IESO said work should start now to assess the reliability of new and relatively untested technologies and fuels to replace natural gas, and to set up large, new generation sources such as nuclear plants and hydroelectric facilities.

The province has not committed to a natural gas moratorium or phase-out, or to building new nuclear facilities other than its small modular reactor plans, but it is now consulting on the prospect.

A document recently posted to the government’s environmental registry asks for input on how best to engage the public and Indigenous communities on the planning and location of new generation and storage facilities.

Building new nuclear plants is “one pathway” toward a fully electrified system, Energy Minister Todd Smith said in an interview.

“It’s a possibility, for sure, and that’s why we’re looking for the feedback from Ontarians,” he said. “We’re considering all of the next steps.”

Environmental groups such as Environmental Defence oppose new nuclear builds, as well as the continued reliance on natural gas.

“The IESO’s report is peddling the continued use of natural gas under the guise of a decarbonization plan, and it takes as a given the ramping up of gas generation and continues to rely on gas generated electricity until 2050, which is embarrassingly late,” said Lana Goldberg, Environmental Defence’s Ontario climate program manager.

“Building new nuclear is absurd when we have safe and much cheaper alternatives such as wind and solar power.”

The IESO has said the flexibility natural gas provides, alongside new gas plants, is needed to keep the system stable while new and relatively untested technologies are explored and new infrastructure gets built, but also as an electricity supply crunch looms.

Ontario is facing a shortfall of electricity with the Pickering nuclear station set to be retired, others being refurbished, and increasing demands including from electric vehicles, new electric vehicle and battery manufacturing, electric arc furnaces for steelmaking, and growth in the greenhouse and mining industries.

The government consultation also asks whether “additional investment” should be made in clean energy in the short term in order to decrease reliance on natural gas, “even if this will increase costs to the electricity system and ratepayers.”

But Smith indicated the government isn’t keen on higher costs.

“We’re not going to sacrifice reliability and affordability,” he said. “We have to have a reliable and affordable system, otherwise we won’t have people moving to electrification.”

The former Liberal government faced widespread anger over high hydro bills _ highlighted often by the Progressive Conservatives, then in Opposition — driven up in part by long-term contracts at above-market rates with clean power producers secured to spur a green energy transition.

 

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