Indian power sector focuses on rural projects

By Industry Info Services


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To achieve the objective of "power for all" as stated in India's 11th five-year plan (2008-12), the Rajiv Gandhi Gramin Vidyut Yojna (RGGVY) program, a government undertaking launched in 2005, aims to provide electricity to all rural households by 2009.

The project aims to electrify 125,000 villages and release free connections to 23.5 million rural households below poverty line by 2009 at an investment of $8 billion. As of November 2007, Rural Electrification Corporation Limited, a public institution that finances power-infrastructure developments, has released $1.5 billion in funds toward 321 projects.

Under RGGVY, the Power Grid Corporation of India Limited (PGCIL) will execute projects in 87,300 villages at an estimated cost of $2.35 billion. PGCIL will also invest $13.75 billion to add 13,022 circuit kilometers of transmission lines to increase its inter-regional power-transfer capacity from the current 17,000 megawatts (MW) to 37,700 MW by 2012.

Another significant initiative, the ultra-mega power project (UMPP) undertaking, comprises nine projects to accelerate the power-generation capacity of the nation. Of these, only three have been awarded so far in tariff-based, competitive bidding processes.

Early this year, Reliance Power Limited (RPL) clinched the 4,000 MW UMPP in Krishnapatanam, Andhra Pradesh. RPL's bid to supply power to an average of 5.8 cents per unit was far lower than the bids of 6.7 cents per unit received from Larsen & Toubro and 10.45 cents per unit from Sterlite Industries India Limited. RPL will invest more than $4 billion over 39 months on this project, which will run on imported coal and supercritical green technology.

RPL was also awarded the 4,000 MW UMPP at Sasan, Madhya Pradhesh, on a bid of 2.99 cents per unit. The special-purpose vehicle Sasan Power Limited is looking to procure the boiler turbine and generator package from domestic and foreign players and has already partnered with North American Coal Company for coal-mine development for this pithead coal project.

Power Finance Corporation (New Delhi) has set in motion the bidding process for the UMPP at Tilaiya, Jharkhand, and will issue the request for proposal to the short-listed bidders by May 30.

The Ministry of Power has assessed investment opportunities in the power sector to be more than $224 billion over the next five years. Of these, investments from players in the private sector will amount to $47 billion.

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LNG powered with electricity could be boon for B.C.'s independent power producers

B.C. LNG Electrification embeds clean hydro and wind power into low-emission liquefied natural gas, cutting carbon intensity, enabling coal displacement in Asia, and opening grid-scale demand for independent power producers and ITMO-based climate accounting.

 

Key Points

Powering LNG with clean electricity cuts carbon intensity, displaces coal, and grows demand for B.C.'s clean power.

✅ Electric-drive LNG cuts emissions intensity by up to 80%.

✅ Creates major grid load, boosting B.C. independent power producers.

✅ Enables ITMO crediting when coal displacement is verified.

 

B.C. has abundant clean power – if only there was a way to ship those electrons across the sea to help coal-dependent countries reduce their emissions, and even regionally, Alberta–B.C. grid link benefits could help move surplus power domestically.

Natural gas that is liquefied using clean hydro and wind power and then exported would be, in a sense, a way of embedding B.C.’s low emission electricity in another form of energy, and, alongside the Canada–Germany clean energy pact, part of a broader export strategy.

Given the increased demand that could come from an LNG industry – especially one that moves towards greater electrification and, as the IEA net-zero electricity report notes, broader system demand – poses some potentially big opportunities for B.C.’s clean energy independent power sector, as those attending the Clean Energy Association of BC's annual at the Generate conference heard recently.

At a session on LNG electrification, delegates were told that LNG produced in B.C. with electricity could have some significant environmental benefits.

Given how much power an LNG plant that uses electric drive consumes, an electrified LNG industry could also pose some significant opportunities for independent power producers – a sector that had the wind taken out of its sails with the sanctioning of the Site C dam project.

Only one LNG plant being built in B.C. – Woodfibre LNG – will use electric drive to produce LNG, although the companies behind Kitimat LNG have changed their original design plans, and now plan to use electric drive drive as well.

Even small LNG plants that use electric drive require a lot of power.

“We’re talking about a lot of power, since it’s one of the biggest consumers you can connect to a grid,” said Sven Demmig, head of project development for Siemens.

Most LNG plants still burn natural gas to drive the liquefaction process – a choice that intersects with climate policy and electricity grids in Canada. They typically generate 0.35 tonnes of CO2e per tonne of LNG produced.

Because it will use electric drive, LNG produced by Woodfibre LNG will have an emissions intensity that is 80% less than LNG produced in the Gulf of Mexico, said Woodfibre president David Keane.

In B.C., the benchmark for GHG intensities for LNG plants has been set at 0.16 tonnes of CO2e per tonne of LNG. Above that, LNG producers would need to pay higher carbon taxes than those that are below the benchmark.

The LNG Canada plant has an intensity of 0.15 tonnes og CO2e per tonne of LNG. Woodfibre LNG will have an emissions intensity of just 0.059, thanks to electric drive.

“So we will be significantly less than any operating facility in the world,” Keane said.

Keane said Sinopec has recently estimated that it expects China’s demand for natural gas to grow by 82% by 2030.

“So China will, in fact, get its gas supply,” Keane said. “The question is: where will that supply come from?

“For every tonne of LNG that’s being produced today in the United States -- and tonne of LNG that we’re not producing in Canada -- we’re seeing about 10 million tonnes of carbon leakage every single year.”

The first Canadian company to produce LNG that ended up in China is FortisBC. Small independent operators have been buying LNG from FortisBC’s Tilbury Island plant and shipping to China in ISO containers on container ships.

David Bennett, director of communications for FortisBC, said those shipments are traced to industries in China that are, indeed, using LNG instead of coal power now.

“We know where those shipping containers are going,” he said. “They’re actually going to displace coal in factories in China.”

Verifying what the LNG is used for is important, if Canadian producers want to claim any kind of climate credit. LNG shipped to Japan or South Korea to displace nuclear power, for example, would actually result in a net increase in GHGs. But used to displace coal, the emissions reductions can be significant, since natural gas produces about half the CO2 that coal does.

The problem for LNG producers here is B.C.’s emissions reduction targets as they stand today. Even LNG produced with electricity will produce some GHGs. The fact that LNG that could dramatically reduce GHGs in other countries, if it displaces coal power, does not count in B.C.’s carbon accounting.

Under the Paris Agreement, countries agree to set their own reduction targets, and, for Canada, cleaning up Canada’s electricity remains critical to meeting climate pledges, but don’t typically get to claim any reductions that might result outside their own country.

Canada is exploring the use of Internationally Transferred Mitigation Outcomes (ITMO) under the Under the Paris Agreement to allow Canada to claim some of the GHG reductions that result in other countries, like China, through the export of Canadian LNG.

“For example, if I were producing 4 million tonnes of greenhouse gas emissions in B.C. and I was selling 100% of my LNG to China, and I can verify that they’re replacing coal…they would have a reduction of about 60 or million tonnes of greenhouse gas emissions,” Keane said.

“So if they’re buying 4 million tonnes of emissions from us, under these ITMOs, then they have net reduction of 56 million tonnes, we’d have a net increase of zero.”

But even if China and Canada agreed to such a trading arrangement, the United Nations still hasn’t decided just how the rules around ITMOs will work.

 

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Energy Ministry may lower coal production target as Chinese demand falls

Indonesia Coal Production Cuts reflect weaker China demand, COVID-19 impacts, falling HBA reference prices, and DMO sales to PLN, pressuring thermal coal output, miner budgets, and investment plans under the 2020 RKAB.

 

Key Points

Planned 2020 coal output reductions from China demand slump, lower HBA prices, and DMO constraints impacting miners.

✅ China demand drop reduces exports and thermal coal shipments.

✅ HBA reference price decline pressures margins and cash flow.

✅ DMO sales to PLN limit revenue; investment plans may slow.

 

The Energy and Mineral Resources (ESDM) Ministry is considering lowering the coal production target this year as demand from China has shown a significant decline, with China power demand drops reported, since the start of the outbreak of the novel coronavirus in the country late last year, a senior ministry official has said.

The ministry’s coal and mineral director general Bambang Gatot Ariyono said in Jakarta on March 12 that the decline in the demand had also caused a sharp drop in coal prices on the world market, and China's plan to reduce coal power has further weighed on sentiment, which could cause the country’s miners to reduce their production.

The 2020 minerals and coal mining program and budget (RKAB) has set a current production goal of 550 million tons of coal, a 10 percent increase from last year’s target. As of March 6, 94.7 million tons of coal had been mined in the country in the year.

“With the existing demand, revision to this year’s production is almost certain,” he said, adding that the drop in demand had also caused a decline in coal prices.

Indonesia’s thermal coal reference price (HBA) fell by 26 percent year-on-year to US$67.08 per metric ton in March, according to a Standards & Poor press release on March 5.  At home, the coal price is also unattractive for local producers. Under the domestic market obligation (DMO) policy, miners are required to sell a quarter of their production to state-owned electricity company PLN at a government-set price, even as imported coal volumes rise in some markets. This year’s coal reference price is $70 per metric ton, far below the internal prices before the coronavirus outbreak hit China.

The ministry’s expert staff member Irwandy Arif said China had reduced its coal demand by 200,000 tons so far, as six of its coal-fired power plants had suspended operation due to the significant drop in electricity demand. Many factories in the country were closed as the government tried to halt the spread of the new coronavirus, which caused the decline in energy demand and created electric power woes for international supply chains.

“At present, all mines in Indonesia are still operating normally, while India is rationing coal supplies amid surging electricity demand. But we have to see what will happen in June,” he said.

The ministry predicted that the low demand would also result in a decline in coal mining investment, as clean energy investment has slipped across many developing nations.

The ministry set a $7.6 billion investment target for the mining sector this year, up from $6.17 billion last year, even as Israel reduces coal use in its power sector, which may influence regional demand. The year’s total investment realization was $192 million as of March 6, or around 2.5 percent of the annual target. 

 

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New England's solar growth is creating tension over who pays for grid upgrades

New England Solar Interconnection Costs highlight distributed generation strains, transmission charges, distribution upgrades, and DAF fees as National Grid maps hosting capacity, driving queue delays and FERC disputes in Rhode Island and Massachusetts.

 

Key Points

Rising upfront grid upgrade and DAF charges for distributed solar in RI and MA, including some transmission costs.

✅ Upfront grid upgrades shifted to project developers

✅ DAF and transmission charges increase per MW costs

✅ Queue delays tied to hosting capacity and cluster studies

 

Solar developers in Rhode Island and Massachusetts say soaring charges to interconnect with the electric grid are threatening the viability of projects. 

As more large-scale solar projects line up for connections, developers are being charged upfront for the full cost of the infrastructure upgrades required, a long-common practice that they say is now becoming untenable amid debates over a new solar customer charge in Nova Scotia. 

“It is a huge issue that reflects an under-invested grid that is not ready for the volume of distributed generation that we’re seeing and that we need, particularly solar,” said Jeremy McDiarmid, vice president for policy and government affairs at the Northeast Clean Energy Council, a nonprofit business organization. 

Connecting solar and wind systems to the grid often requires upgrades to the distribution system to prevent problems, such as voltage fluctuations and reliability risks highlighted by Australian distributors in their networks. Costs can vary considerably from place to place, depending on the amount of distributed generation coming online and the level of capacity planning by regulators, said David Feldman, a senior financial analyst at the National Renewable Energy Laboratory.

“Certainly the Northeast often has more distribution challenges than much of the rest of the country just because it’s more populous and often the infrastructure is older,” he said. “But it’s not unique to the Northeast — in the Midwest, for example, there’s a significant amount of wind projects in the queues and significant delays.”

In Rhode Island and Massachusetts, where strong incentive programs are driving solar development, the level of solar coming online is “exposing the under-investment in the distribution system that is causing these massive costs that National Grid is assigning to particular projects or particular groups of projects,” McDiarmid said. “It is going to be a limiting factor for how much clean energy we can develop and bring online.”

Frank Epps, chief executive officer at Energy Development Partners, has been developing solar projects in Rhode Island since 2010. In that time, he said, interconnection charges on his projects have grown from about $80,000-$120,000 per megawatt to more than $400,000 per megawatt. He attributed the increase to a lack of investment in the distribution network by National Grid over the last decade.

He and other developers say the utility is now adding further to their costs by passing along not just the cost of improving the distribution system — the equivalent of the city street of the grid that brings power directly to customers — but also costs for modifying the transmission system — the interstate highway that moves bulk power over long distances to substations. 

Solar developers who are only requesting to hook into the distribution system, and not applying for transmission service, say they should not be charged for those additional upgrades under state interconnection rules unless they are properly authorized under the federal law that governs the transmission system. 

A Rhode Island solar and wind developer filed a complaint with the Federal Energy Regulatory Commission in February over transmission system improvement charges for its four proposed solar projects. Green Development said National Grid subsidiaries Narragansett Electric and New England Power Company want to charge the company more than $500,000 a year in operating and maintenance expenses assessed as so-called direct assignment facility charges. 

“This amount nearly doubles the interconnection costs associated with the projects,” which total 38.4 megawatts in North Smithfield, the company says in its complaint. “Crucially, these charges are linked to recovering costs associated with providing transmission service — even though no such transmission service is being provided to Green Development.”

But Ted Kresse, a spokesperson for National Grid, said the direct assignment facility, or DAF, construct has been in place for decades and has been applied to any customer affecting the need for transmission upgrades.

“It is the result of the high penetration and continued high volume of distributed generation interconnections that has recently prompted the need for transmission upgrades, and subsequently the pass-through of the associated DAF charges,” he said. 

Several complaints before the Rhode Island Public Utilities Commission object to these DAF and other transmission charges.

One petition for dispute resolution concerns four solar projects totaling 40 MW being developed by Energy Development Partners in a former gravel pit in North Kingstown. Brown University has agreed to purchase the power. 

The developer signed interconnection service agreements with Narragansett Electric in 2019 requiring payment of $21.6 million for costs associated with connecting the projects at a new Wickford Junction substation. Last summer, Narragansett sought to replace those agreements with new ones that reclassified a portion of the costs as transmission-level costs, through New England Power, National Grid’s transmission subsidiary.

That shift would result in additional operational and maintenance charges of $835,000 per year for the estimated 35-year life of the projects, the complaint says.

“This came as a complete shock to us,” Epps said. “We’re not just paying for the maintenance of a new substation. We are paying a share of the total cost that the system owner has to own and operate the transmission system. So all of the sudden, it makes it even tougher for distributed energy resources to be viable.”

In its response to the petition, National Grid argues that the charges are justified because the solar projects will require transmission-level upgrades at the new substation. The company argues that the developer should be responsible for the costs rather than ratepayers, “who are already supporting renewable energy development through their electric rates.”

Seth Handy, one of the lawyers representing Green Development in the FERC complaint, argues that putting transmission system costs on distribution assets is unfair because the distributed resources are “actually reducing the need to move electricity long distances. We’ve been fighting these fights a long time over the underestimating of the value of distributed energy in reducing system costs.”

Handy is also representing the Episcopal Diocese of Rhode Island before the state Supreme Court in its appeal of an April 2020 public utilities commission order upholding similar charges for a proposed 2.2-megawatt solar project at the diocese’s conference center and camp in Glocester. 

Todd Bianco, principal policy associate at the utilities commission, said neither he nor the chairperson can comment on the pending dockets contesting these charges. But he noted that some of these issues are under discussion in another docket examining National Grid’s standards for connecting distributed generation. Among the proposals being considered is the appointment of an independent ombudsperson to resolve interconnection disputes. 

Separately, legislation pending before the Rhode Island General Assembly would remove responsibility for administering the interconnection of renewable energy from utilities, and put it under the authority of the Rhode Island Infrastructure Bank, a financing agency.

Handy, who recently testified in support of the bill, said he believes National Grid has too many conflicting interests to administer interconnecting charges in a timely, transparent and fair fashion, and pointed to utility moves such as changes to solar compensation in other states as examples. In particular, he noted the company’s interests in expanding natural gas infrastructure. 

“There are all kinds of economic interests that they have that conflict with our state policy to provide lower-cost renewable energy and more secure energy solutions,” Handy said.

In testimony submitted to the House Committee on Corporations opposing the legislation, National Grid said such powers are well beyond the purpose and scope of the infrastructure bank. And it cited figures showing Rhode Island is third in the country for the most installed solar per square mile (behind New Jersey and Massachusetts).

Nadav Enbar, program manager at the Electric Power Research Institute, a nonprofit research organization for the utility industry, said interconnection delays and higher costs are becoming more common due to “the incredible uptake” in distributed renewable energy, particularly solar.

That’s impacting hosting capacity, the room available to connect all resources to a circuit without causing adverse harm to reliability and safety. 

“As hosting capacity is being reduced, it’s causing an increasing number of situations where utilities need to study their systems to guarantee interconnection without compromising their systems,” he said. “And that is the reason why you’re starting to see some delays, and it has translated into some greater costs because of the need for upgrades to infrastructure.”

The cost depends on the age or absence of infrastructure, projected load growth, the number of renewable energy projects in the queue, and other factors, he said. As utilities come under increasing pressure to meet state renewable goals, and as some states pilot incentives like a distributed energy rebate in Illinois to drive utility innovation, some (including National Grid) are beginning to provide hosting capacity maps that provide detailed information to developers and policymakers about the amount of distributed energy that can be accommodated at various locations on the grid, he said. 

In addition, the coming availability of high-tech “smart inverters” should help ease some of these problems because they provide the grid with more flexibility when it comes to connecting and communicating with distributed energy resources, Enbar said. 

In Massachusetts, the Department of Public Utilities has opened a docket to explore ways to better plan for and share the cost of upgrading distribution infrastructure to accommodate solar and other renewable energy sources as part of a grid overhaul for renewables nationwide. National Grid has been conducting “cluster studies” there that attempt to analyze the transmission impacts of a group of solar projects and the corresponding interconnection cost to each developer.

Kresse, of National Grid, said the company favors cost-sharing methodologies under consideration that would “provide a pathway to spread cost over the total enabled capacity from the upgrade, as opposed to spreading the cost over only those customers in the queue today.” 

Solar developers want regulators to take an even broader approach that factors in how the deployment of renewables and the resulting infrastructure upgrades benefit not just the interconnecting generator, but all customers. 

“Right now, if your project is the one that causes a multimillion-dollar upgrade, you are assigned that cost even though that upgrade is going to benefit a lot of other projects, as well as make the grid stronger,” said McDiarmid, of the clean energy council. “What we’re asking for is a way of allocating those costs among a variety of developers, as well as to the grid itself, meaning ratepayers. There’s a societal benefit to increasing the modernization of the grid, and improving the resilience of the grid.”

In the meantime, BlueHub Capital, a Boston-based solar developer focused on serving affordable housing developments, recently learned from National Grid that, as a part of one of the area studies, it will be required to pay $5.8 million in transmission and distribution upgrades to interconnect a 2-megawatt solar-plus-storage project that leverages cheaper batteries to enhance resilience, approved for a brownfield site in Gardner, Massachusetts. 

According to testimony submitted to the department, the sum is supposed to be paid within the next year, even though the project will have to wait to be interconnected until April 2027, when a new transmission line is completed. In addition, BlueHub will be responsible for DAF charges totaling $3.4 million over the 20-year life of the project. 

“We’re being asked to pay a fortune to provide solar that the state wants,” said DeWitt Jones, BlueHub’s president. “It’s so expensive that the upgrades are driving everyone out of the interconnection queue. The costs stay the same, but they fall on fewer projects. We need a process of grid design and modernization to guide this.”

 

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Seattle City Light's Initiative Helps Over 93,000 Customers Reduce Electricity Bills

Seattle City Light Energy Efficiency Programs help 93,000 residents cut bills with rebates, home energy audits, weatherization, conservation workshops, and sustainability tools, reducing electricity use and greenhouse gas emissions across Seattle communities.

 

Key Points

They are utility programs that lower electricity use and bills via rebates, energy audits, and weatherization services.

✅ Rebates for ENERGY STAR appliances and efficient HVAC upgrades

✅ Free audits with tailored recommendations and savings roadmaps

✅ Weatherization aid for low-income households and renters

 

In a noteworthy achievement for both residents and the environment, Seattle City Light has successfully helped more than 93,000 customers reduce their electricity bills through various energy efficiency programs. This initiative not only alleviates financial burdens for many households, amid concerns about pandemic-era shut-offs that heightened energy insecurity, but also aligns with the city’s commitment to sustainability and responsible energy use.

The Drive for Energy Efficiency

Seattle City Light, the city’s publicly owned electric utility, has been at the forefront of promoting energy efficiency among its customers. Recognizing that energy costs can strain household budgets, the utility has developed a range of programs and tracks emerging utility rate designs to help residents lower their energy consumption and, consequently, their bills.

One of the main aspects of this initiative is the emphasis on education and awareness. By providing customers with tools and resources to understand their energy usage, City Light empowers residents to make informed choices that can lead to substantial savings and prepare for power outage events as well.

Key Programs and Services

Seattle City Light offers a variety of programs aimed at reducing energy consumption. Among the most popular are:

  1. Energy Efficiency Rebates: Customers can receive rebates for purchasing energy-efficient appliances, such as refrigerators, washing machines, and HVAC systems. These appliances are designed to consume less electricity than traditional models, resulting in lower energy bills over time.

  2. Home Energy Audits: Free energy audits are available for residential customers. During these audits, trained professionals assess homes for energy efficiency and provide recommendations on improvements. This personalized service allows homeowners to understand specific changes that can lead to savings.

  3. Weatherization Assistance: This program is particularly beneficial for low-income households. By improving insulation, sealing air leaks, and enhancing overall energy efficiency, residents can maintain comfortable indoor temperatures without over-relying on heating and cooling systems.

  4. Community Workshops: Seattle City Light conducts workshops that educate residents about energy conservation strategies. These sessions cover topics such as smart energy use, seasonal tips for reducing consumption, and the benefits of renewable energy sources, highlighting examples of clean energy engagement in other cities.

The Impact on Households

The impact of these initiatives is profound. By assisting over 93,000 customers in lowering their electricity bills, Seattle City Light not only provides immediate financial relief but also encourages a long-term commitment to energy conservation. This collective effort has resulted in significant reductions in overall energy consumption, contributing to a decrease in greenhouse gas emissions—a critical step in the fight against climate change.

Additionally, the programs have been particularly beneficial for low-income households. By targeting these communities, Seattle City Light ensures that the benefits of energy efficiency reach those who need them the most, promoting equity-focused regulation and access to essential resources.

Looking Ahead: Challenges and Opportunities

While the success of these initiatives is commendable, challenges remain. Fluctuating energy prices can still pose difficulties for many households, especially those on fixed incomes, as some utilities explore minimum charges for low-usage customers in their rate structures. Seattle City Light recognizes the need for ongoing support and resources to help residents navigate these financial challenges.

The utility is committed to expanding its programs to reach even more customers in the future. This includes enhancing outreach efforts to ensure that residents are aware of the available resources, even as debates like utility revenue in a free-electricity future shape planning, and potentially forming partnerships with local organizations to broaden the impact of its initiatives.

 

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Old meters giving away free electricity to thousands of N.B. households

NB Power Smart Meters will replace aging analog meters, boosting billing accuracy, reducing leakage, and modernizing distribution as the EUB considers a $92 million rollout of 360,000 advanced meters for residential and commercial customers.

 

Key Points

NB Power Smart Meters replace analog meters, improving billing accuracy and reducing leakage in the electricity network.

✅ EUB reviewing $92M plan for 360,000 advanced meters

✅ Replaces 98,000 analog units; curbs unbilled kWh

✅ Improves billing accuracy and reduces system leakage

 

Home and business owners with old power meters in New Brunswick have been getting the equivalent of up to 10 days worth of electricity a year or more for free, a multi million dollar perk that will end quickly if the Energy and Utilities Board approves the adoption of smart meters, a move that in other provinces has prompted refusal fees for some holdouts.

Last week the EUB began deliberations over whether to allow NB Power to purchase and install 360,000 new generation smart meters for its residential and commercial customers as part of a $92 million upgrade of its distribution system, even as regulators elsewhere approve major rate changes that affect customer bills.

If approved, that will spell the end to about 98,000 aging electromagnetic or analog meters still used by about one quarter of NB Power customers.  Those are the kind with a horizontal spinning silver disc and clock-face style dials that record consumption 

NB Power lawyer John Furey told the energy and utilities board last week that the utility suspects it loses several million dollars a year to electricity consumed by customers that is not properly recorded by their old meters. It was a central issue in Furey's argument for smart meters amid broader debates over industrial subsidies and debt. (Roger Cosman/CBC)
The analog units, some more than 50 years old and installed back when the late Louis Robichaud and Richard Hatfield were premiers in the 1960's and 1970's - are suspected of doling out millions of kilowatt hours of free power to customers by failing to register all of the current that moves through them.   

"Over time, analog meters slow down and they register lower consumption of electricity than is actually occurring," said NB Power lawyer John Furey last week about the widespread freeloading of power in New Brunswick caused by the old meters.

3 per cent missed
A 2010 report by the independent non-profit Electric Power Research Institute in Palo Alto, California and entered into evidence during NB Power's smart meter hearing said old spinning disc meters generally degrade over time and after 20 years typically fail to register nearly 3 per cent of the power that flows through them.

The average age of analog meters in New Brunswick is much older than that - 31 years - and more than 11,000 of the units are over the age of 40.

"Worn gears, corrosion, moisture, dust, and insects can all cause drag and result in an electromagnetic meter that does not capture the full consumption of the premises," said the report.

The sudden correction to full accounting and billing could naturally surprise these homeowners and even trigger consumer backlash in some cases

- Electric Power Research Institute report
About 94,000 NB residential customers and 3,900 commercial customers have an old meter, according to NB Power records. The group would receive about 40 million kilowatt hours of electricity for free this year  ($5.1 million worth including HST)  if the average unit failed to register 2 percent of the electricity flowing through it, while elsewhere some customers are receiving lump-sum credits on electricity bills.  

That is about $41 in free power for the average residential customer and $322 for the average business.

But, according to the research, there would also be hundreds of customers with meters that have slowed considerably more than the average with 0.3 percent - or close to 300 in NB Power's case -  not counting between 10 and 20 percent of the electricity customers are using. 

NB Power senior Vice President Lori Clark told the EUB stopping the freeloading of power in New Brunswick caused by older meters is in everyone's interest. (Roger Cosman/CBC)
That's potentially $400 in free electricity in a year for a residential customer with average consumption.

"While the average meter might be only slightly slow a few could be significantly so," said the report.

"The sudden correction to full accounting and billing could naturally surprise these homeowners and result in questioning of a new meter, as seen in a shocking $666 bill reported by a Nova Scotia senior." 

The report made the point analog meters can also run fast but called that "less common" meaning that if the EUB approves smart meters, tens of thousands of customers who lose an old meter to a new accurate model will experience higher bills.

'Leakage' reduction
NB Power acknowledges it does not know precisely how much power its older meters give away but said whether it is a little or a lot, ending the freebies is to everyone's benefit. 

"It reduces our inefficiencies, reduces our leakage that we have in the system, so that we are  picking up those unbilled kilowatt hours," said NB Power senior vice president Lori Clark about ending the free power many customers unknowingly enjoy.

Smart meter critics change tone on NB Power's new business case
NB Power's smart meter plan gets major boost with critical endorsements
"Customers benefit from reduced inefficiencies in our system. They benefit from reduced leakage in our system and the fact that those kilowatt hours are being properly billed to the customers that have consumed the kilowatt hours."   

NB Power hopes to win approval of its plan to acquire smart meters by this spring to allow installation beginning in mid 2021, even as some utilities elsewhere have backed away from smart home network projects.

 

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Canadian gold mine cleans up its act with electricity

Electric mining equipment enables zero-emission, diesel-free operations at Goldcorp's Borden mine, using Sandvik battery-electric drills and LHD trucks to cut ventilation costs, noise, and maintenance while improving underground air quality.

 

Key Points

Battery-powered mining equipment replaces diesel, cutting emissions and ventilation costs in underground operations.

✅ Cuts diesel use, heat load, and noise in underground headings.

✅ Reduces ventilation infrastructure and operating expense.

✅ Improves air quality, worker health, and equipment uptime.

 

Mining operations get a lot of flack for creating environmental problems around the world. Yet they provide much of the basic material that keeps the global economy humming. Some mining companies are drilling down in their efforts to clean up their acts, exploring solutions such as recovering mine heat for power to reduce environmental impact.

As the world’s fourth-largest gold mining company Goldcorp has received its share of criticism about the impact it has on the environment.

In 2016, the Canadian company decided to do something about it. It partnered with mining-equipment company Sandvik and began to convert one of its mines into an all-electric operation, a process that is expected to take until 2021.

The efforts to build an all-electric mine began with the Sandvik DD422iE in Goldcorp’s Borden mine in Ontario, Canada.

Goldcorp's Borden mine in Borden, Ontario, CanadaGoldcorp's Borden mine in Borden, Ontario, Canada

The machine weighs 60,000 pounds and runs non-stop on a giant cord. It has a 75-kwh sodium nickel chloride battery to buffer power demands, a crucial consideration as power-hungry Bitcoin facilities can trigger curtailments during heat waves, and to move the drill from one part of the mine to another.

This electric rock-chewing machine removes the need for the immense ventilation systems needed to clean the emissions that diesel engines normally spew beneath the surface in a conventional mining operation, though the overall footprint depends on electricity sources, as regions with Clean B.C. power imports illustrate in practice.

These electric devices improve air quality, dramatically reduce noise pollution, and remove costly maintenance of internal combustion engines, Goldcorp says.

More importantly, when these electric boring machines are used across the board, it will eliminate the negative health effects those diesel drills have on miners.

“It would be a challenge to go back,” says big drill operator Adam Ladouceur.

Mining with electric equipment also removes second- or third-highest expenditure in mining, the diesel fuel used to power the drills, said Goldcorp spokesman Pierre Noel, even as industries pursue dedicated energy deals like Bitcoin mining in Medicine Hat to manage power costs. (The biggest expense is the cost of labor.)

Electric load, haul, dump machine at Goldcorp Borden mine in OntarioElectric load, haul, dump machine at Goldcorp Borden mine in Ontario

Aside from initial cost, the electric Borden mine will save approximately $7 million ($9 million Canadian) annually just on diesel, propane and electricity.

Along with various sizes of electric drills and excavating tools, Goldcorp has started using electric powered LHD (load, haul, dump) trucks to crush and remove the ore it extracts, and Sandvik is working to increase the charging speed for battery packs in the 40-ton electric trucks which transport the ore out of the mines, while utilities add capacity with new BC generating stations coming online.

 

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