Energy Act brings incentives for carbon storage

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Energy suppliers in the United Kingdom can look forward to growing financial support for carbon capture and storage CCS projects, following the acceptance of the governments wideranging Energy Bill.

The bill, which is now the Energy Act 2010, has received Royal Assent and was originally presented to Parliament last November. A key part of the Energy Act is the governments plan to fund up to four commercialscale CCS projects by introducing a levy on consumer electricity bills that will be used to accelerate the development and rollout of CCS projects.

The levy will be applied to electricity bills and will be paid to energy regulator Ofgem by the suppliers. The amount paid will be based on the suppliers share of the electricity market. The Department of Energy & Climate Change DECC believes the incentive will guarantee the UK a leading position in the development of CCS solutions.

However the government has come under fire recently by its own Energy and Climate Change Committee for being too slow to get CCS projects off the ground. The committees report Low Carbon Technologies in a Green Economy stated: Government has done well to develop a regulatory system for carbon capture and storage CCS, but slow progress on demonstration projects has put the UK behind international competitors. Faster deployment of CCS technology is essential if the UK is to exploit the huge export potential within any future global CCS market.

The government finally started the next stage of funding in midMarch by awarding undisclosed sums to German energy giant E.ON AG and ScottishPower to move their CCS projects at the Kingsnorth and Longannet coalfired power plants to the next phase.

A week later, the newest CCS contender, Scottish and Southern Energy plc, secured £6.3 million US $9.7 million in funding from the government to advance its carboncapture pilot at the Ferrybridge coalfired power station in West Yorkshire. At 5 megawatts, the facility is the UKs largest proposed CCS pilot.

As well as clearing the way for a CCS incentive, the new Energy Act 2010 provides support for the fuelpoor and ensures that the government must report regularly on the decarbonization of UK electricity and CCS progress. The act also bestows Ofgem with more power to tackle market exploitation by increasing the window of time it can prosecute energy companies for breaches of their licences from one year to five years.

The new Energy Act 2010 has been welcomed by numerous industry groups.

Historically, the UKs energy regulatory model has failed to reflect the changing demands on the sector, in particular the need to move to a decarbonized energy supply, said Tom Foulkes, director general of the Institution of Civil Engineers ICE. Ofgems revised remit will hopefully give utility owners new confidence to invest in renewable and clean energy technologies, as will the new financial incentives for the development of carbon capture and storage. However, we really need to look beyond the CCS demonstrations projects. While reliance on carbon fuels is still a global reality, upscaling CCS technology for commercial deployment could be a very lucrative export opportunity for the UK economy.

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N.S. senior suspects smart meter to blame for shocking $666 power bill

Nova Scotia Power smart meter billing raises concerns amid estimated billing, catch-up bills, and COVID-19 meter reading delays, after seniors report doubled electricity usage and higher utility charges despite consistent consumption and on-time payments.

 

Key Points

Smart meter billing uses digital reads, limits estimates, and may trigger catch-up charges after reading suspensions.

✅ COVID-19 reading pause led to estimated bills and later catch-ups

✅ Smart meters reduce reliance on estimated billing errors

✅ Customers can seek payment plans and bill reviews

 

A Nova Scotia senior says she couldn't believe her eyes when she opened her most recent power bill. 

Gloria Chu was billed $666 -- more than double what she normally pays, and similar spikes such as rising electricity bills in Calgary have drawn attention.

As someone who always pays her bi-monthly Nova Scotia Power bill in full and on time, Chu couldn't believe it.

According to her bill, her electricity usage almost tripled during the month of May, compared to last year, and is even more than it was last winter, and with some utilities exploring seasonal power rates customers may see confusing swings.

She insists she and her husband aren't doing anything differently -- but one thing has changed.

"I have had a problem since they put the smart meter in," said Chu, who lives in Upper Gulf Shore, N.S.

Chu got a big bill right after the meter was installed in January, too. That one was more than $530.

She paid it, but couldn't understand why it was so high.

As for this bill, she says she just can't afford it, especially amid a recently approved 14% rate hike in Nova Scotia.

"That's all of my CPP," Chu said. "Actually, it's more than my CPP."

Chu says a neighbor up the road who also has a smart meter had her bill double, too. In nearby Pugwash, she says some residents have seen an increase of about $20-$30.

Nova Scotia Power had put a pause on installing smart meters because of the COVID-19 pandemic, but it has resumed as of June 1, with the goal of upgrading 500,000 meters by 2021, even as in other provinces customers have faced fees for refusing smart meters during similar rollouts.

In this case, the utility says it's not the meter that's the problem, and notes that in New Brunswick some old meters gave away free electricity even as the pandemic forced Nova Scotia Power to suspend meter readings for two months.

"As a result, every one of our customers in Nova Scotia received an estimated bill," said Jennifer parker, Nova Scotia Power's director of customer care.

The utility estimated Chu's bill at $182 -- less than she normally pays -- so her latest bill is considered a catch-up bill after meter readings resumed last month.

Parker admits how estimates are calculated isn't perfect.

"There would be a lot of customers who probably had a more accurate bill because of the way that we estimate, and that's actually one of things that smart meters will get rid of, is that we won't need to do estimated billing," Parker said.

Chu isn't quite convinced.

"It is pretty smart for the power company, but it's not smart for us," she said with a laugh.

Nova Scotia Power has put a hold on her bill and says it will work with Chu on an affordable solution, though the province cannot order the utility to lower rates which limits what can be offered.

She just hopes to never see a big bill like this again, while elsewhere in Newfoundland and Labrador a lump-sum electricity credit is being provided to help customers.

 

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Neste increases the use of wind power at its Finnish production sites to nearly 30%

Neste wind power agreement boosts renewable electricity in Finland, partnering with Ilmatar and Fortum to supply Porvoo and Naantali sites, cutting Scope 2 emissions and advancing a 2035 carbon-neutral production target via long-term PPAs.

 

Key Points

A PPA to source wind power for sites, cutting Scope 2 emissions and supporting Neste's 2035 carbon-neutral goal.

✅ 10-year PPA with Ilmatar; + Fortum boosts renewable electricity share.

✅ Supplies ~7% of Porvoo-Naantali electricity; capacity >20 MW.

✅ Cuts Scope 2 emissions by ~55 kt CO2e per year toward 2035 neutrality.

 

Neste is committed to reaching carbon neutral production by 2035, mirroring efforts such as Olympus 100% renewable electricity commitments across industry.

As part of this effort, the company is increasing the use of renewable electricity at its production sites in Finland, reflecting trends such as Ireland's green electricity targets across Europe, and has signed a wind power agreement with Ilmatar, a wind power company. The agreement has been made together with Borealis, Neste's long-term partner in the Kilpilahti area in Porvoo, Finland.

As a result of the agreement with Ilmatar, as well as that signed with Fortum at the end of 2019, and in line with global growth such as Enel's 450 MW wind project in the U.S., nearly 30% of the energy used at Neste's production sites in Porvoo and Naantali will be renewable wind power in 2022.

'Neste's purpose is to create a healthier planet for our children. Our two climate commitments play an important role in living up to this ambition, and one of them is to reach carbon neutral production by 2035. It is an enormous challenge and requires several concrete measures and investments, including innovations like offshore green hydrogen initiatives. Wind power, including advances like UK offshore wind projects, is one of the over 70 measures we have identified to reduce our production's greenhouse gas emissions,' Neste's President and CEO Peter Vanacker says.

With the ten year contract, Neste is committed to purchase about one-third of the production of Ilmatar's two wind farms, reflecting broader market moves such as BC Hydro wind deals in Canada. The total capacity of the agreement is more than 20 MW, and the energy produced will correspond to around 7% of the electricity consumption at Neste's sites in Porvoo and Naantali. The wind power deliveries are expected to begin in 2022.

The two wind power agreements help Neste to reduce the indirect greenhouse gas emissions (Scope 2 emissions defined by the Greenhouse Gas Protocol) of electricity purchases at its Finnish production sites, a trend mirrored by Dutch green electricity growth across Europe, annually by approximately 55 kilotons. 55 kt/a CO2e equals annual carbon footprint of more than 8,500 EU citizens.

 

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Germany turns to coal for a third of its electricity

Germany's Coal Reliance reflects an energy crisis, soaring natural gas prices, and a nuclear phase-out, as Destatis data show higher coal-fired electricity despite growing wind and solar generation, impacting grid stability and emissions.

 

Key Points

Germany's coal reliance is more coal power due to gas spikes and a nuclear phase-out, despite wind and solar growth.

✅ Coal share near one-third of electricity, per Destatis

✅ Gas-fired output falls as prices soar after Russia's invasion

✅ Wind and solar rise; grid stability and recession risks persist

 

Germany is relying on highly-polluting coal for almost a third of its electricity, as the impact of government policies, reflecting an energy balancing act for the power sector, and the war in Ukraine leads producers in Europe’s largest economy to use less gas and nuclear energy.

In the first six months of the year, Germany generated 82.6 kWh of electricity from coal, up 17 per cent from the same period last year, according to data from Destatis, the national statistics office, published on Wednesday. The leap means almost one-third of German electricity generation now comes from coal-fired plants, up from 27 per cent last year. Production from natural gas, which has tripled in price to €235 per megawatt hour since Russia’s invasion in late February, fell 18 per cent to only 11.7 per cent of total generation.

Destatis said that the shift from gas to coal was sharper in the second quarter. Coal-fired electricity increased by an annual rate of 23 per cent in the three months to June, while electricity generation from natural gas fell 19 per cent.

The figures highlight the challenge facing European governments in meeting clean energy goals after the Kremlin announced this week that the Nordstream 1 pipeline that takes Russian gas to Germany would remain closed until Europe removed sanctions on the country’s oil.

Germany has been trying to reduce its reliance on coal, which releases almost twice as many emissions as gas and more than 60 times those of nuclear energy, according to estimates from the Intergovernmental Panel on Climate Change, though grid expansion challenges have slowed renewable build-out in recent years.

Chancellor Olaf Scholz said the opposition CDU bore “complete responsibility” for the exit from coal and nuclear power that formed part of his predecessor Angela Merkel’s Energiewende policies, amid a continuing nuclear option debate in climate policy, which in turn raised reliance on Russian gas. At the beginning of this year, more than 50 per cent of Germany’s gas imports came from Russia, a figure that fell slightly over the opening half of 2022.

But CDU leader Friedrich Merz accused the government of “madness” over its decision to idle the country’s three remaining nuclear power stations from the end of this year, though officials have argued that nuclear would do little to solve the gas issue in the short term.

Electricity generation from nuclear energy has already halved after three of the six nuclear power plants that were still in operation at the end of 2021 were closed during the first half of this year. Berlin said on Monday it would keep on standby two of its remaining three nuclear power stations, a move to extend nuclear power during the energy crisis, which were all due to close at the end of the year.

The German government has warned of the risk of electricity shortages this winter. “We cannot be sure that, in the event of grid bottlenecks in neighbouring countries, there will be enough power plants available to help stabilise our electricity grid in the short term,” said German economy minister Robert Habeck on Monday.

However Scholz said that, after raising gas storage levels to 86 per cent of capacity, Germany would “probably get through this winter, despite all the tension”.

One bright spot from the data was the increase in use of renewable energy, highlighting a recent renewables milestone in Germany. The proportion of electricity generated from wind power generation rose by 18 per cent to 25 per cent of all electricity generation, while solar energy production increased 20 per cent.

Ángel Talavera, head of Europe economics at the consultancy Oxford Economics, said that the success in moving away from gas towards other energy sources “means that the risks of hard energy rationing over the winter are less severe now, even with little to no Russian gas flows”.

However, economists still expect a recession in the eurozone’s largest economy, amid a deteriorating German economy outlook over the near term, as a large part of the impact comes via higher prices and because industries and households still rely on gas for heating.

Separate official data also published on Wednesday showed that German industrial production slid 0.3 per cent between June and July. Production at Germany’s most energy intensive industries fell almost 7 per cent in the five months after Russia’s invasion of Ukraine.

“The demand destruction caused by the surge in prices will still send the German economy into recession over the winter,” said Talavera.

 

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Why Canada's Energy Security Hinges on Renewables

Renewable Energy Security strengthens affordability and grid reliability through electrification, wind, and solar, reducing fossil fuel volatility exposed by the Ukraine crisis, aligning with IEA guidance and the Paris Agreement to deliver resilient, low-cost power.

 

Key Points

Renewable energy security is reliable, affordable power from electrification, wind and solar, cutting fossil fuel risk.

✅ Wind and solar now outcompete gas for new power capacity.

✅ Diversifies supply and reduces fossil price volatility.

✅ Requires grid flexibility, storage, and demand response.

 

Oil, gas, and coal have been the central pillar of the global energy system throughout the 20th century. And for decades, these fossil fuels have been closely associated with energy security.  

The perception of energy security, however, is rapidly changing. Renewables form an increasing share of energy sectors worldwide as countries look to deliver on the Paris Agreement and mitigate the effects of climate change, with IEA clean energy investment now significantly outpacing fossil fuels. Moreover, Russia’s invasion of Ukraine has demonstrated how relying on fossil fuels for power, heating, and transport has left many countries vulnerable or energy insecure.  

The International Energy Agency (IEA) defines energy security as “the uninterrupted availability of energy sources at an affordable price” (IEA, 2019a). This definition hardly describes today’s global energy situation, with the cancellation of natural gas deliveries and skyrocketing prices for oil and gas products, and with supply chain challenges in clean energy that also require attention. These circumstances have cascading effects on electricity prices in countries like the United Kingdom that rely heavily on natural gas to produce electricity. In Europe, energy insecurity has been even further amplified since the Russian corporation Gazprom recently cut off gas supplies to several countries.  

As a result, energy security has gained new urgency in Canada and worldwide, creating opportunities in the global electricity market for Canada. Recent events provide a stark reminder of the volatility and potential vulnerability of global fossil fuel markets and supply chains. Even in Canada, as one of the largest producers of oil and gas in the world, the price of fuels depends on global and regional market forces rather than government policy or market design. Thus, the average monthly price for gasoline in Canada hit a record high of CAD 2.07 per litre in May 2022 (Figure 1), and natural gas prices surged to a record CAD 7.54 per MMBtu in May 2022 (Figure 2).  

Energy price increases of this magnitude are more than enough to strain Canadian household budgets. But on top of that, oil and gas prices have accelerated inflation more broadly as it has become more expensive to produce, transport, and store goods, including food and other basic commodities (Global News, 2022).  

 

Renewable Energy Is More Affordable 

In contrast to oil and gas, renewable energy can reliably deliver affordable energy, as shown by falling wholesale electricity prices in markets with growing clean power. This is a unique and positive aspect of today’s energy crisis compared to historical crises: options for electrification and renewable-based electricity systems are both available and cost-effective.  

For new power capacity, wind and solar are now cheaper than any other source, and wind power is making gains as a competitive source in Canada. According to Equinor (2022), wind and solar were already cheaper than gas-based power in 2020. This means that renewable energy was already the cheaper option for new power before the recent natural gas price spikes. As illustrated in Figure 3, the cost of new renewable energy has dropped so dramatically that, for many countries, it is cheaper to install new solar or wind infrastructure than to keep operating existing fossil fuel-based power plants (International Renewable Energy Agency, 2021). This means that replacing fossil-based electricity generation with renewables would save money and reduce emissions. Wind and solar prices are expected to continue their downward trends as more countries increase deployment and learn how to best integrate these sources into the grid. 

 

Renewable Energy Is Reliable 

To deliver on the uninterrupted availability side of the energy security equation, renewable power must remain reliable even as more variable energy sources, like wind and solar, are added to the system, and regional leaders such as the Prairie provinces will help anchor this transition. For Canada and other countries to achieve high energy security through electrification, grid system operations must be able to support this, and pathways to zero-emissions electricity by 2035 are feasible.  

 

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Electricity bills on the rise in Calgary after

Calgary Electricity Price Increase signals higher ENMAX bills as grid demand surges; wholesale market volatility, fixed vs floating rates, kWh costs, and transmission charges drive above-average pricing across Alberta this winter.

 

Key Points

A market-led rise in Calgary power rates as grid demand and wholesale volatility affect fixed and floating plans.

✅ ENMAX warns of higher winter prices amid record grid demand

✅ Fixed rates hedge wholesale volatility; floating tracks spot market

✅ Transmission and distribution fees rise 5-10 percent annually

 

Calgarians should expect to be charged more for their electricity bills amid significant demand on the grid and a transition to above-average rates across Alberta.

ENMAX, one of the most-used electricity providers in the city, has sent an email to customers notifying them of higher prices for the rest of the winter months.

“Although fluctuations in electricity market prices are normal, we have seen a general trend of increasing rates over time,” the email to customers read.

“The price volatility we are forecasting is due to market factors beyond a single energy provider, including but not limited to expectations for a colder-than-normal winter and changes in electricity supply and demand in Alberta’s wholesale market. ”

Earlier this month, the province set a record for electricity usage during a bitterly cold stretch of weather.

According to energy comparison website energyrates.ca, Alberta’s energy prices have increased by 34 per cent between November 2020 and 2021.

“One of the reasons that this increase seems so significant is we’re actually coming off of a low period in the market,” the site’s founder Joel MacDonald told Global News. “You’re seeing rates well below average transitioning to well above average.”

According to ENMAX’s rate in January, the price of electricity currently sits at 15.9 cents per kilowatt-hour, with an electricity price spike from 7.9 cents per kilowatt-hour last year.

MacDonald said prices for electricity have been relatively low since 2018 but a swing in the price of oil has created more activity in the province’s industrial sector, and in turn more demand on the power grid.

According to MacDonald, the price increase can also be attributed to the removal of a consumer price cap that limited regulated rates to 6.8 cents per kilowatt-hour for households and small businesses with lower demand, which, after the carbon tax was repealed, initially remained in place.

Although the cap was scrapped by the UCP three years ago, he said energy bills now depend on the rate set by the market.

“What’s increased now recently is actually the price per kilowatt, and the (transmission and distribution) charges have only increased, but annually they increase between five and 10 per cent,” MacDonald said. “So the portion of your bill that’s increasing is different than what Albertans are typically used to, or at least in recent memory.”

But Albertans do have options, MacDonald said.

As part of its email to customers, ENMAX sent a list of energy saving tips to reduce energy consumption in people’s homes, including using cold water for laundry and avoiding dryer use, energy-efficient lightbulbs and unplugging electronics when they are not in use.

Retailers also offer contracts with floating or fixed rates for consumers.

“Fixed rates, obviously, you’re going to pick your price. It’s going to be the same each and every single month,” MacDonald said. “Floating rate is based off the wholesale spot market, and that has been exceptionally high the last few months.”

He said consumers looking to save money when electricity prices are high should look into a fixed rate.

 

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TransAlta Poised to Finalize Alberta Data Centre Agreement in 2025 

TransAlta Alberta Data Centre integrates AI, cloud computing, and renewable energy, tackling electricity demand, grid capacity, decarbonization, and energy storage with clean power, cooling efficiency, and PPA-backed supply for hyperscale workloads.

 

Key Points

TransAlta Alberta Data Centre is a planned AI facility powered mostly by renewables to meet high electricity demand.

✅ Targets partner exclusivity mid-year; ops 18-24 months post-contract.

✅ Supplies ~90% power via TransAlta; balance from market.

✅ Anchors $3.5B clean energy growth and storage in Alberta.

 

TransAlta Corp., one of Alberta’s leading power producers, is moving toward finalizing agreements with partners to establish a data centre in the province, aligned with AI data center grid integration efforts nationally, aiming to have definitive contracts signed before the end of the year.

CEO John Kousinioris stated during an analyst conference that the company seeks to secure exclusivity with key partners by mid-year, with detailed design plans and final agreements expected by late 2025. Once the contracts are signed, the data centre is anticipated to be operational within 18 to 24 months, a horizon mirrored by Medicine Hat AI grid upgrades initiatives that aim to modernize local systems.

Data centres, which are critical for high-tech industries such as artificial intelligence, consume large amounts of electricity to run and cool servers, a trend reflected in U.S. utility power challenges reporting, underscoring the scale of energy demand. In this context, TransAlta plans to supply around 90% of its partner's energy needs for the facility, with the remainder coming from the broader electricity market.

Alberta has identified data centres as a strategic priority, aiming to see $100 billion in AI-related data centre construction over the next five years. However, the rapid growth of this sector presents challenges for the region’s energy infrastructure. Electricity demand from data centres has already outpaced the available capacity in Alberta’s power grid, intensifying discussions about a western Canadian electricity grid to improve regional reliability, potentially impacting the province’s decarbonization goals.

To address these challenges, TransAlta has adopted a renewable energy investment strategy. The company announced a $3.5 billion growth plan focused primarily on clean electricity generation and storage, as British Columbia's clean energy shift advances across the region, through 2028. By then, more than two-thirds of TransAlta’s earnings are expected to come from renewable power generation, supporting progress toward a net-zero electricity grid by 2050 nationally.

The collaboration between TransAlta and data centre developers represents an opportunity to balance growing energy demand with sustainability goals. By integrating renewable energy generation into data centre operations and broader macrogrid investments, Alberta could move toward a cleaner and more resilient energy future.

 

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