Honeywell, KCP&L expand Energy Optimizer program

Poland Offshore Wind Energy accelerates as PGE exits nuclear leadership, PKN Orlen steps in, and Baltic Sea projects expand to cut coal reliance, meet EU emissions goals, attract investors, and bridge the power capacity gap.

Key Points

A shift from coal and nuclear to Baltic offshore wind to add capacity, cut EU emissions, and attract investment.

✅ PGE drops lead in nuclear; pivots $10bn to offshore wind.

✅ PKN Orlen may assume nuclear role; projects await approval.

✅ 6 GW offshore could add 60b zlotys and 77k jobs by 2030.

PGE, Poland’s biggest power group has decided to abandon a role in building the country’s first nuclear power plant and will instead focus investment on offshore wind energy.

Reuters reports state-run refiner PKN Orlen (PKN.WA) could take on PGE’s role, while the latter announces a $10bn offshore wind power project.

Both moves into renewables and nuclear represent a major change in Polish energy policy, diversifying away from the country’s traditional coal-fired power base, as regional efforts like the North Sea wind farms initiative expand, in a bid to fill an electricity shortfall and meet EU emission standards.

An unnamed source told the news agency, PGE could not fund both projects and cheap technology had swung the decision in favour of wind, with offshore wind competing with gas in some markets. PGE could still play a smaller role in the nuclear project which has been delayed and still needs government approval.

#google#

A proposed law is currently before the Polish parliament aiming at facilitating easy construction of wind turbines, mindful of Germany’s grid expansion challenges that have hindered rollout.

If the law is passed, as expected, several other wind farm projects could also proceed.

Polenergia has said it would like to build a wind farm in the Baltic by 2022. PKN Orlen is also considering building one.

PGE said in March that it wants to build offshore windfarms with a capacity of 2.5 gigawatts (GW) by 2030.

Analysts and investors say that offshore wind farms are the easiest and fastest way for Poland to fill the expected capacity gap from coal, with examples like the largest UK offshore wind farm coming online underscoring momentum, and reduce CO2 emissions in line with EU’s 2030 targets as Poland seeks improved ties with Brussels.

The decision to open up the offshore power industry could also draw in investors, as shown by Japanese utilities’ UK offshore investment attracting cross-border capital. Statoil said in April it would join Polenergia’s offshore project which has drawn interest from other international wind companies. “

The Polish Wind Energy Association (PWEA) estimates that offshore windfarms with a total capacity of 6 GW would help create around 77,000 new jobs and add around 60 billion zlotys to economic growth.

Related News

• Electricity Forum News

• Power Generation News

Nova Scotia Power Rate Increase 2023-2024 approved by the UARB lifts electricity rates 14 percent, citing fuel costs and investments, despite Bill 212; includes ROE 9 percent, decarbonization deferral, and a storm cost recovery rider.

Key Points

An approved UARB rate case raising electricity bills about 14% over 2023-2024, with ROE 9% and cost recovery tools.

✅ UARB approves average 6.9% annual increases for 2023 and 2024.

✅ Maintains 9% ROE; sets storm cost rider trial and decarbonization deferral.

✅ Government opposed via Bill 212, but settlement mostly upheld.

Nova Scotia regulators approved a 14 per cent electricity rate hike on Thursday, defying calls by Premier Tim Houston to reject the increase.

Rates will rise on average by 6.9 per cent each year in 2023 and 2024.

In Newfoundland and Labrador, the NL Consumer Advocate called an 18 per cent electricity rate hike unacceptable amid affordability concerns.

The Nova Scotia Utility and Review Board (UARB) issued a 203-page decision ratifying most of the elements in a settlement agreement reached between Nova Scotia Power and customer groups after Houston's government legislated a rate, spending and profit cap on the utility in November.

The board said approval was in the public interest and the increase is "reasonable and appropriate."

"The board cannot simply disallow N.S. Power's reasonable costs to make rates more affordable. These principles ensure fair rates and the financial health of a utility so it can continue to invest in the system providing services to its customers," the three-member panel wrote.

"While the board can (and has) disallowed costs found to be imprudent or unreasonable, absent such a finding, N.S. Power's costs must be reflected in the rates."

In addition to the 14 per cent hike, the board maintained Nova Scotia Power's current return on equity of 9 per cent, with an earnings band of 8.75 to 9.25 per cent. It agreed in principle to establish a decarbonization deferral account to pay for the retirement of coal plants and related decommissioning costs, and implemented a storm cost recovery rider for a three-year trial period.

The board rejected several items in the agreement, including rolling some Maritime Link transmission capital projects into consumers' rates.

Nova Scotia Power welcomed the ruling in a statement, describing it as "the culmination of an extensive and transparent regulatory process over the past year."

Natural Resources and Renewables Minister Tory Rushton, who has said the government cannot order lower power rates in Nova Scotia, stated the UARB decision was not what the government wanted, but he did not indicate the government has any plans to bring forward legislation to overturn it. 

"We're disappointed by the decision today. We've always been very clear that we were standing by ratepayers right from the get-go but we also respect the independent body of the UARB and their decision today."

Pressure from the province
Houston claimed the settlement breached his government's legislation, known as Bill 212 in Nova Scotia, which he said was intended to protect ratepayers. It capped rates to cover non-fuel costs by 1.8 per cent. It did not cap rates to cover fuel costs or energy efficiency programs.

Bill 212 was passed after the board concluded weeks of public hearings into Nova Scotia Power's request for an electricity rate increase, its first general rate application in 10 years. Nova Scotia Power is a subsidiary of Halifax-based Emera, which is a publicly traded company.

The legislation triggered credit downgrades from two credit rating agencies who said it compromised the independence of the Nova Scotia Utility and Review Board.

In Newfoundland and Labrador, electricity users have begun paying for Muskrat Falls as project costs flow through rates, highlighting broader pressures on Atlantic Canada utilities.

In its decision, the board accepted that legislation was intended to protect ratepayers but did not preclude increases in rates.

"Given the exclusion of fuel and purchased power costs when these were expected to cause significant upward pressure on rates, it also did not preclude large increases in rates. Instead, the protection afforded by the Public Utilities Act amendments appears to be focused on N.S. Power's non-fuel costs, with several amendments targeting N.S. Power's cost of capital and earnings."

The board noted the province was the only intervenor in the rate case to object to the settlement.

Opposition reaction
Rushton said despite the outcome, Bill 212 achieved its goal, which was to protect ratepayers.

"Without Bill 212 the rates would have actually been higher," he said. "It would have double-digit rates for this year and next year and now it's single digits."

NDP Leader Claudia Chender said the end result is that Nova Scotians are still facing "incredibly unaffordable power."

Similar criticism emerged in Saskatchewan after an 8 per cent SaskPower increase, which the NDP opposed during provincial debates.

"It's really unfortunate for a lot of Nova Scotians who are heading into a freezing weekend where heat is not optional."

Chender said a different legislative approach is needed to change the regulatory system, and more needs to be done to help people pay their electricity bills.

Liberal MLA Kelly Regan echoed that sentiment.

"There are lots of people who can absorb this. There are a lot of people who cannot, and those are the people that we should be worried about right now. This is why we've been saying all along the government needs to actually give money directly to Nova Scotians who need help with power rates."

Rushton said the government has introduced programs to help Nova Scotians pay for heat, including raising the income threshold to access the Heating Assistance Rebate Program and creating incentives to install heat pumps.

Elsewhere, some governments have provided a lump-sum credit on electricity bills to ease short-term costs for households.

Related News

• Electricity Forum News

• Energy Policy News

Mississauga Fuel Cell Electric Buses advance zero-emission public transit, leveraging hydrogen fuel cells, green hydrogen supply, rapid refueling, and extended range to cut GHGs, improve air quality, and modernize sustainable urban mobility.

Key Points

Hydrogen fuel cell buses power electric drivetrains for zero-emission service, long range, and quick refueling.

✅ Zero tailpipe emissions improve urban air quality

✅ Longer route range than battery-electric buses

✅ Hydrogen fueling is rapid, enabling high uptime

Mississauga, Ontario, is gearing up for a significant shift in its public transportation landscape with the introduction of fuel cell electric buses (FCEBs). This initiative marks a pivotal step toward reducing greenhouse gas emissions and enhancing the sustainability of public transport in the region. The city, known for its vibrant urban environment and bustling economy, is making strides to ensure that its transit system evolves in harmony with environmental goals.

The recent announcement highlights the commitment of Mississauga to embrace clean energy solutions. The integration of FCEBs is part of a broader strategy to modernize the transit fleet while tackling climate change. As cities around the world seek to reduce their carbon footprints, Mississauga’s initiative aligns with global trends toward greener urban transport, where projects like the TTC battery-electric buses demonstrate practical pathways.

What are Fuel Cell Electric Buses?

Fuel cell electric buses utilize hydrogen fuel cells to generate electricity, which powers the vehicle's electric motor. Unlike traditional buses that run on diesel or gasoline, FCEBs produce zero tailpipe emissions, making them an environmentally friendly alternative. The only byproducts of their operation are water and heat, significantly reducing air pollution in urban areas.

The technology behind FCEBs is becoming increasingly viable as hydrogen production becomes more sustainable. With the advancement of green hydrogen production methods, which use renewable energy sources to create hydrogen, and because some electricity in Canada still comes from fossil fuels, the environmental benefits of fuel cell technology are further amplified. Mississauga’s investment in these buses is not only a commitment to cleaner air but also a boost for innovative technology in the transportation sector.

Benefits for Mississauga

The introduction of FCEBs is poised to offer numerous benefits to the residents of Mississauga. Firstly, the reduction in greenhouse gas emissions aligns with the city’s climate action goals and complements Canada’s EV goals at the national level. By investing in cleaner public transit options, Mississauga is taking significant steps to improve air quality and combat climate change.

Moreover, FCEBs are known for their efficiency and longer range compared to battery electric buses, such as the Metro Vancouver fleet now operating across the region, commonly used in Canadian cities. This means they can operate longer routes without the need for frequent recharging, making them ideal for busy transit systems. The use of hydrogen fuel can also result in shorter fueling times compared to electric charging, enhancing operational efficiency.

In addition to environmental and operational advantages, the introduction of these buses presents economic opportunities. The deployment of FCEBs can create jobs in the local economy, from maintenance to hydrogen production facilities, similar to how St. Albert’s electric buses supported local capabilities. This aligns with broader trends of sustainable economic development that prioritize green jobs.

Challenges Ahead

While the potential benefits of FCEBs are clear, the transition to this technology is not without its challenges. One of the main hurdles is the establishment of a robust hydrogen infrastructure. To support the operation of fuel cell buses, Mississauga will need to invest in hydrogen production, storage, and fueling stations, much as Edmonton’s first electric bus required dedicated charging infrastructure. Collaboration with regional and provincial partners will be crucial to develop this infrastructure effectively.

Additionally, public acceptance and awareness of hydrogen technology will be essential. As with any new technology, there may be skepticism regarding safety and efficiency. Educational campaigns will be necessary to inform the public about the advantages of FCEBs and how they contribute to a more sustainable future, and recent TTC’s battery-electric rollout offers a useful reference for outreach efforts.

Looking Forward

As Mississauga embarks on this innovative journey, the introduction of fuel cell electric buses signifies a forward-thinking approach to public transportation. The city’s commitment to sustainability not only enhances its transit system but also sets a precedent for other municipalities to follow.

In conclusion, the shift towards fuel cell electric buses in Mississauga exemplifies a significant leap toward greener public transport. With ongoing efforts to tackle climate change and improve urban air quality, Mississauga is positioning itself as a leader in sustainable transit solutions. The future looks promising for both the city and its residents as they embrace cleaner, more efficient transportation options. As this initiative unfolds, it will be closely watched by other cities looking to implement similar sustainable practices in their own transit systems.

Related News

• Electricity Forum News

• EV Infrastructure News

Cabin Creek Solar Project Montana delivers 150 MW of utility-scale solar under a Power Purchase Agreement, with Basin Electric and Clenera supplying renewable energy, enhancing grid reliability, and reducing carbon emissions for 30,000 homes.

Key Points

A 150 MW solar PPA near Baker by Basin Electric and Clenera, delivering reliable renewable power and carbon reduction.

✅ 150 MW across two 75 MW sites near Baker, Montana

✅ PPA supports Basin Electric's diverse, cost-effective portfolio

✅ Cuts 265,000 tons CO2 and powers 30,000 homes

A new solar project in Montana will provide another 150 megawatts (MW) of affordable, renewable power to Basin Electric customers and co-op members across the region.

Basin Electric Power Cooperative (Basin Electric) and Clenera Renewable Energy, announced today the execution of a Power Purchase Agreement (PPA) for the Cabin Creek Solar Project. Cabin Creek is Basin Electric's second solar PPA, and the result of the cooperative's continuing goal of providing a diverse mix of energy sources that are cost-effective for its members.

When completed, Cabin Creek will consist of two, 75-MW projects in southeastern Montana, five miles west of Baker. According to Clenera, the project will eliminate 265,000 tons of carbon dioxide per year and power 30,000 homes, while communities such as the Ermineskin First Nation advance their own generation efforts.

"Renewable technology has advanced dramatically in recent years, with rapid growth in Alberta underscoring broader trends, which means even more affordable power for Basin Electric's customers," said Paul Sukut, CEO and general manager of Basin Electric. "Basin Electric is excited to purchase the output from this project to help serve our members' growing energy needs. Adding solar further promotes our all-of-the-above energy solution as we generate energy using a diverse resource portfolio including coal, natural gas, and other renewable resources to provide reliable, affordable, and environmentally safe generation.

"Clenera is proud to partner with Basin Electric Power Cooperative to support the construction of the Cabin Creek Solar projects in Montana," said Jared McKee, Clenera's director of Business Development. "We truly believe that Basin Electric will be a valuable partner as we aim to deliver today's new era of reliable, battery storage increasingly enabling round-the-clock service, affordable, and clean energy."

"We're pleased that Southeast Electric will be home to the Cabin Creek Solar Project," said Jack Hamblin, manager of Southeast Electric Cooperative, a Basin Electric Class C member headquartered in Ekalaka, Montana. "This project is one more example of cooperatives working together to use economies of scale to add affordable generation for all their members - similar to what was done 70 years ago when cooperatives were first built."

Basin Electric Class A member Upper Missouri Power Cooperative, headquartered in Sidney, Montana, provides wholesale power to Southeast Electric and 10 other distribution cooperatives in western North Dakota and eastern Montana. "It is encouraging to witness the development of cost-competitive energy, including projects in Alberta contracted at lower cost than natural gas that demonstrate market shifts, like the Cabin Creek Solar Project, which will be part of the energy mix we purchase from Basin Electric for our member systems, said Claire Vigesaa, Upper Missouri's general manager. "The energy needs in our region are growing and this project will help us serve both our members, and our communities as a whole."

Cabin Creek will bring significant economic benefits to the local area. According to Clenera, the project will contribute $8 million in property taxes to Fallon County and $5 million for the state of Montana over 35 years. They say it will also create approximately 300 construction jobs and two to three full-time jobs.

"This project underscores the efforts by Montana's electric cooperatives to continue to embrace more carbon-free technology," said Gary Wiens, CEO of Montana Electric Cooperatives' Association. "It also demonstrates Basin Electric's commitment to seek development of renewable energy projects in our state. It's exciting that these two projects combined are 50 times larger than our current largest solar array in Montana."

Cabin Creek is anticipated to begin operations in late 2023.

Related News

• Electricity Forum News

• Renewable Energy News

EU Gas Price Cap Strategies aim to curb inflation during an energy crisis by capping wholesale gas and electricity generation costs, balancing supply and demand, mitigating subsidies, and safeguarding supply security amid Russia-Ukraine shocks.

Key Points

Temporary EU measures to cap gas and power prices, curb inflation, manage demand, and protect supply security.

✅ Flexible temporary price limits to secure gas supplies

✅ Framework cap on gas for electricity generation with demand checks

✅ Risk: subsidies, higher demand, and market distortions

The European Commission has outlined possible strategies to cap gas prices as the bloc faces a looming energy crisis this winter. 

Member states are divided over the emergency measures designed to pull down soaring inflation amid Russia's war in Ukraine. 

One proposal is a temporary "flexible" limit on gas prices to ensure that Europe can continue to secure enough gas, EU energy commissioner Kadri Simson said on Tuesday. 

Another option could be an EU-wide "framework" for a price cap on gas used to generate electricity, which would be combined with measures to ensure gas demand does not rise as a result, she said.

EU leaders are meeting on Friday to debate gas price cap strategies amid warnings that Europe's energy nightmare could worsen this winter.

Last week, France, Italy, Poland and 12 other EU countries urged the Commission to propose a broader price cap targeting all wholesale gas trade. 

But Germany -- Europe's biggest gas buyer -- and the Netherlands are among those opposing electricity market reforms within the bloc.

Russia has slashed gas deliveries to Europe since its February invasion of Ukraine, with Moscow blaming the cuts on Western sanctions imposed in response to the invasion, as the EU advances a plan to dump Russian energy across the bloc.

Since then, the EU has agreed on emergency laws to fill gas storage and windfall profit levies to raise money to help consumers with bills. 

Price cap critics
One energy analyst told Euronews that an energy price cap was an "unchartered territory" for the European Union. 

The EU's energy sector is largely liberalised and operates under the fundamental rules of supply and demand, making rolling back electricity prices complex in practice.

"My impression is that member states are looking at prices and quantities in isolation and that's difficult because of economics," said Elisabetta Cornago, a senior energy researcher at the Centre for European Reform.

"It's hard to picture such a level of market intervention This is uncharted territory."

The energy price cap would "quickly start costing billions" because it would force governments to continually subsidise the difference between the real market price and the artificially capped price, another expert said. 

"If you are successful and prices are low and you still get gas, consumers will increase their demand: low price means high demand. Especially now that winter is coming," said Bram Claeys, a senior advisor at the Regulatory Assistance Project. 

Related News

• Electricity Forum News

• Energy Policy News

eRex Biomass Power Plant will deliver 300 MW in Japan, offering stable baseload renewable energy, coal-cost parity, and feed-in tariff independence through economies of scale, efficient fuel procurement, and utility-scale operations supporting RE100 demand.

Key Points

A 300 MW Japan biomass project targeting coal-cost parity and FIT-free, stable baseload renewable power.

✅ 300 MW capacity; enough for about 700,000 households

✅ Aims to skip feed-in tariff via economies of scale

✅ Targets coal-cost parity with stable, dispatchable output

Power supplier eRex will build its largest biomass power plant to date in Japan, hoping the facility's scale will provide healthy margins, a strategy increasingly seen among renewable developers pursuing diverse energy sources, and a means of skipping the government's feed-in tariff program.

The Tokyo-based electric company is in the process of selecting a location, most likely in eastern Japan. It aims to open the plant around 2024 or 2025 following a feasibility study. The facility will cost an estimated 90 billion yen ($812 million) or so, and have an output of 300 megawatts -- enough to supply about 700,000 households. ERex may work with a regional utility or other partner

The biggest biomass power plant operating in Japan currently has an output of 100 MW. With roughly triple that output, the new facility will rank among the world's largest, reflecting momentum toward 100% renewable energy globally that is shaping investment decisions.

Nearly all biomass power facilities in Japan sell their output through the government-mediated feed-in tariff program, which requires utilities to buy renewable energy at a fixed price. For large biomass plants that burn wood or agricultural waste, the rate is set at 21 yen per kilowatt-hour. But the program costs the Japanese public more than 2 trillion yen a year, and is said to hamper price competition.

ERex aims to forgo the feed-in tariff with its new plant by reaping economies of scale in operation and fuel procurement. The goal is to make the undertaking as economical as coal energy, which costs around 12 yen per kilowatt-hour, even as solar's rise in the U.S. underscores evolving benchmarks for competitive renewables.

Much of the renewable energy available in Japan is solar power, which fluctuates widely according to weather conditions, though power prediction accuracy has improved at Japanese PV projects. Biomass plants, which use such materials as wood chips and palm kernel shells as fuel, offer a more stable alternative.

Demand for reliable sources of renewable energy is on the rise in the business world, as shown by the RE100 initiative, in which 100 of the world's biggest companies, such as Olympus, have announced their commitment to get 100% of their power from renewable sources. ERex's new facility may spur competition.

Related News

• Electricity Forum News

• Renewable Energy News