Plan for nuclear storage Is slow to form

By New York Times


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The Energy Department has not finished plans to consolidate storage of nuclear bomb fuel and other high-risk materials now spread among numerous sites, even though the department said in 2005 that it would do so within about a year, according to a recently released Government Accountability Office report.

As a result, the department is spending hundreds of millions of dollars to defend additional sites.

The G.A.O. had reported that the Energy Department was putting off making security improvements at some of the storage sites because the sites were due to be phased out. But the new report makes clear that the goal of shutting down some obsolete weapons and research centers, and simplifying the security job by centralizing “special nuclear material,” as bomb fuel is called, has yet to advance from concept to plan, let alone to finished project.

The Energy Department “has completed only two of the eight implementation plans for consolidating and disposing of special nuclear material,” the new report found, and it cited problems with those two plans.

Representative Joe L. Barton, the Texas Republican who is the ranking member of the House Energy and Commerce Committee and who requested the study, said in a statement: “We’re just trying to get to the point where the D.O.E. has a plan. Two years have passed by since we asked about a plan, and still no plan.”

A spokesman for the National Nuclear Security Administration, part of the Energy Department, did not dispute that planning was moving more slowly than anticipated but said that shipments of some radioactive materials had begun. The spokesman, Bryan Wilkes, said the department had to acquire certification of the storage and shipping containers, institute security and safety requirements, and address legal and environmental impacts.

“Whenever special nuclear materials are moved, a lot of unforeseen challenges arise,” he said in an e-mail message. “When planning an operation of this size and sensitivity, key issues of security, safety, environmental responsibility and public input take precedence over schedules.”

On Oct. 7, 2005, Charles E. Anderson, the principal deputy assistant secretary of environmental management, testified before Mr. Barton, who was then the chairman of the committee, and said he wanted to finish the planning “within a year or two,” and recognized “the urgency to make that closer to a year.” Asked if the department needed more money or other help from Congress to wrap up the planning, Mr. Anderson said no.

The concept is to remove plutonium and highly enriched uranium from Lawrence Livermore National Laboratory, in a part of California that is now largely suburban; surplus plutonium from the Hanford nuclear reservation in Washington State, a site that is mostly being decommissioned; and plutonium-238, used to generate heat for space probes, at Oak Ridge National Laboratory in Tennessee.

Highly enriched uranium from Sandia National Laboratory in New Mexico, and plutonium and uranium-233 from Los Alamos, also in New Mexico, would also be moved. Uranium-233 was manufactured decades ago from thorium, and can be used in weapons but is now considered impractical for that purpose.

The various materials would go to another Tennessee site, Y-12; the Savannah River Site, in South Carolina; Pantex, near Amarillo, Tex.; the Nevada Test Site; and the Idaho National Laboratory.

The report says that one problem is poor coordination among different parts of the department, including the divisions of environmental management, defense programs and nuclear energy. It said that terrorists might invade one of the sites and detonate a weapon, assemble an improvised nuclear explosive from the materials at hand or steal a weapon for use elsewhere.

A Republican staff member on the committee said that some of the plans might face local opposition at some point, but that so little had been done that so far there was little to which to object.

The G.A.O. said the Energy DepartmentÂ’s goal was to finish consolidating the material by 2008, but that this was unlikely.

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N.L., Ottawa agree to shield ratepayers from Muskrat Falls cost overruns

Muskrat Falls Financing Restructuring redirects megadam benefits to ratepayers, stabilizes electricity rates, and overhauls federal provincial loan guarantees for the hydro project, addressing cost overruns flagged by the Public Utilities Board in Newfoundland and Labrador.

 

Key Points

A revised funding model shifting benefits to ratepayers to curb rate hikes linked to Muskrat Falls cost overruns.

✅ Shields ratepayers from megadam cost overruns

✅ Revises federal provincial loan guarantees

✅ Targets stable electricity rates by 2021 and beyond

 

Ottawa and Newfoundland and Labrador say they will rewrite the financial structure of the Muskrat Falls hydro project to shield ratepayers from paying for the megadam's cost overruns.

Federal Natural Resources Minister Seamus O'Regan and Premier Dwight Ball announced Monday that their two governments would scrap the financial structure agreed upon in past federal-provincial loan agreements, moving to a model that redirects benefits, such as a lump sum credit, to ratepayers.

Both politicians called the announcement, which was light on dollar figures, a major milestone in easing residents' fears that electricity rates will spike sharply, as seen with Nova Scotia's debated 14% hike, when the over-budget dam comes fully online next year.
"We are in a far better place today thanks to this comprehensive plan," Ball said.

Ball has said the issue of electricity rates is a top priority for his government, and he has pledged to keep rates near existing levels, but rate mitigation talks with Ottawa have dragged on since April.

A report by the province's Public Utilities Board released Friday forecast an "unprecedented" 75 per cent increase in average domestic rates for island residents in 2021, while Nova Scotia's regulator approved a 14% hike, and reported concerns from industrial customers about their ability to remain competitive.

Costs of the Muskrat Falls megadam on Labrador's Lower Churchill River have ballooned to more than $12.7 billion since the project was approved in 2012, according to the latest estimate of Crown corporation Nalcor Energy.

The dam is set to produce more power than the province can sell. Its existing financial structure would have left electricity ratepayers paying for Muskrat Falls to make up the difference starting in 2021, an issue both governments said Monday has been resolved with the relaunch of financing talks.

"Essentially, you won't pay this on your monthly light bills," Ball said.

But details of how the project will meet financing requirements in coming decades to make up the gap in funds are still to be worked out.

Both Ball and O'Regan criticized previous governments for sanctioning the poorly planned development and again pledged their commitment to easing the burden on residents.

"We promised we would be there to help, and we will be," O'Regan said before announcing a "relaunch" of negotiations around the project's financial structure.

He did not say how much the new setup might cost the federal government, despite earlier federal funding commitments, stressing that the new focus will be on the project's long-term sustainability. "There's no single piece of policy ... that can resolve such a large and complicated mess," O'Regan said.

The two governments also said they will work towards electrifying federal buildings to reduce an anticipated power surplus in the province.

In the short term, the federal government said it would allow for "flexibility" in upcoming cash requirements related to debt servicing, allowing deferral of payments if necessary.

Ball said that flexibility was built in to ensure the plan would still be applicable if costs continue to rise before Muskrat Falls is commissioned.

Political opponents criticized Monday's plan as lacking detail.

"What I heard talked about was an agreement that in the future, there's going to be an agreement," said Progressive Conservative Leader Ches Crosbie. "This was an occasion to reassure people that there's a plan in place to make life here affordable, and I didn't see that happen today."

Others addressed the lingering questions about the project's final cost.

Nalcor's latest financial update has remained unchanged since 2017, though the Muskrat Falls project has seen additional delays related to staffing and software issues.

Dennis Browne, the province's consumer advocate, said the switch to a cost of service model is a significant move that will benefit ratepayers, but he said it's impossible to truly restructure the project while it's a work in progress. "We need to know what the figures are, and we don't have them," he said.

 

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KHNP is being considered for Bulgarian Nuclear Power Plant Project

KHNP Shortlisted for Belene Nuclear Power Plant, named by the Bulgarian Energy Ministry alongside Rosatom and CNNC; highlights APR1400 reactor expertise, EPC credentials, and expansion into the European nuclear energy market.

 

Key Points

KHNP is a strategic investor candidate for Bulgaria's Belene NPP, leveraging APR1400 and European market entry.

✅ Selected with Rosatom and CNNC by Bulgarian Energy Ministry

✅ Builds on APR1400 reactor design and EPC track record

✅ Positions KHNP for EU nuclear projects and O&M services

 

Korea Hydro & Nuclear Power (KHNP) has been selected as one of the three strategic investor candidates for a Bulgarian nuclear power plant project amid global nuclear project milestones worldwide.

The Bulgarian Energy Ministry selected KHNP of Korea, RosAtom of Russia and CNNC of China as strategic investor candidates for the construction of the Belene Nuclear Power Plant, KHNP said on Dec. 20. The Belene Nuclear Power Plant is the second nuclear power plant that Bulgaria plans to build following the 2,000-megawatt Kozloduy Nuclear Power Plant built in 1991 during the Soviet Union era. The project budget is estimated at 10 billion euros.

By being included in the shortlist for the Bulgarian project, KHNP has boosted the possibility of making a foray into the European nuclear power plant market, as India takes steps to get nuclear back on track worldwide. KHNP began to export nuclear power plants in 2009 by winning the UAE Barakah Nuclear Power Plant Project, with Barakah Unit 1 reaching 100% power as it moves toward commercial operations. The UAE plant will be based on the APR1400, a next-generation Korean nuclear reactor that is used in Shin Kori Units 3 and 4 in Korea.

The ARP1400 is a Korean nuclear reactor developed by KHNP with investment of about 230 billion won for 10 years from 1992. The nuclear reactor became the first non-U.S. type reactor to receive a design certificate (DC) from the U.S. Nuclear Regulatory Commission (NRC), as China's nuclear energy program continues on a steady development track globally. By receiving the DC, its safety was internationally recognized. In June, the company also won the maintenance project for the Barakah Nuclear Power Plant, completing the entire cycle from the construction of the nuclear power plant to its design, operation and maintenance. However, U.S. and U.K. companies took part of the maintenance project for the nuclear power plant.

In July, KHNP officials visited Turkey and contacted local energy officials to prepare for nuclear power plant projects to be launched in that country, as Bangladesh develops nuclear power with IAEA assistance in the region. Earlier in May, the company also submitted a proposal to participate in the construction of a new nuclear power plant in Kazakhstan, while Kenya moves forward with plans for a $5 billion plant.

 

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Pickering NGS life extensions steer Ontario towards zero carbon horizon

OPG Pickering Nuclear Refurbishment extends four CANDU reactors to bolster Ontario clean energy, grid reliability, and decarbonization goals, leveraging Darlington lessons, mature supply chains, and AtkinsRealis OEM expertise for cost effective life extension.

 

Key Points

Modernizing four Pickering CANDU units to extend life, add clean power, and enhance Ontario grid reliability.

✅ Extends four 515 MW CANDU reactors by 30 years

✅ Supports clean, reliable baseload and decarbonization

✅ Leverages Darlington playbook and AtkinsRealis OEM supply chain

 

In a pivotal shift last month, Ontario Power Generation (OPG) revised its strategy for the Pickering Nuclear Power Station, scrapping plans to decommission its six remaining reactors. Instead, OPG has opted to modernize four reactors (Pickering B Units 5-8) starting in 2027, while Units 1 and 4 are slated for closure by the end of the current year.

This revision ensures the continued operation of the four 515 MW Canada Deuterium Uranium (CANDU) reactors—originally constructed in the 1970s and 1980s—extending their service life by at least 30 more years amid an extension request deadline for Pickering.

Todd Smith, Ontario's Energy Minister, underscored the significance of nuclear power in maintaining Ontario's status as a region with one of the cleanest and most reliable electricity grids globally. He emphasized the integral role of nuclear facilities, particularly the Pickering station, in the provincial energy strategy during the announcement supporting continued operations, which was made in the presence of union workers at the plant.

The Pickering station has demonstrated remarkable efficiency and reliability, notably achieving its second-highest output in 2023 and setting a record in 2022 for continuous operation. Extending the lifespan of nuclear plants like Pickering is deemed the most cost-effective method for sustaining low-carbon electricity, according to research conducted by the International Energy Agency (IEA) and the OECD Nuclear Energy Agency (NEA) across 243 plants in 24 countries.

The refurbishment project is poised to significantly boost Ontario's economy, projected to add CAN$19.4 billion to the GDP over 11 years and generate approximately 11,000 jobs annually. The Independent Electricity System Operator (IESO) has indicated that to meet the province's future electrification and decarbonization goals, as it faces a growing electricity supply gap, Ontario will need to double its nuclear capacity by 2050, requiring an addition of 17.8 GW of nuclear power.

Subo Sinnathamby, OPG's Senior Vice President of Nuclear Refurbishment, emphasized the necessity of nuclear energy in reducing reliance on natural gas. Sinnathamby, who is leading the refurbishment efforts at OPG's Darlington nuclear power station, where SMR plans are also underway, highlighted the positive impact of the Darlington and Bruce Power projects on the nuclear power supply chain and workforce.

The procurement strategy employed for Darlington, which involved placing orders early to ensure readiness among suppliers, is set to be replicated for the Pickering refurbishment. This approach aims to facilitate a seamless transition of skilled workers and resources from Darlington to Pickering refurbishment, leveraging a matured supply chain and experienced vendors.

AtkinsRealis, the original equipment manufacturer (OEM) for CANDU reactors, has a track record of successfully refurbishing CANDU plants worldwide. The CANDU reactor design, known for its refurbishment capabilities, allows for individual replacement of pressure tubes and access to fuel channels without decommissioning the reactor. Gary Rose, Executive Vice-President of Nuclear at AtkinsRealis, highlighted the economic benefits and environmental benefits of refurbishing reactors, stating it as a viable and swift solution to maximize fossil-free energy.

Looking forward, AtkinsRealis is exploring the potential for multiple refurbishments of CANDU reactors, which could extend their operational life beyond 100 years, addressing local energy needs and economic factors in the decision-making process. This innovative approach underscores the role of nuclear refurbishment in meeting global energy demands sustainably and economically.

 

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Competition in Electricity Has Been Good for Consumers and Good for the Environment

Electricity Market Competition drives lower wholesale prices, stable retail rates, better grid reliability, and faster emissions cuts as deregulation and renewables adoption pressure utilities, improve efficiency, and enhance consumer choice in power markets.

 

Key Points

Electricity market competition opens supply to rivals, lowering prices, improving reliability, and reducing emissions.

✅ Wholesale prices fell faster in competitive markets

✅ Retail rates rose less than in monopoly states

✅ Fewer outages, shorter durations, improved reliability

 

By Bernard L. Weinstein

Electricity used to be boring.  Public utilities that provided power to homes and businesses were regulated monopolies and, by law, guaranteed a fixed rate-of-return on their generation, transmission, and distribution assets. Prices per kilowatt-hour were set by utility commissions after lengthy testimony from power companies, wanting higher rates, and consumer groups, wanting lower rates.

About 25 years ago, the electricity landscape started to change as economists and others argued that competition could lead to lower prices and stronger grid reliability. Opponents of competition argued that consumers weren’t knowledgeable enough about power markets to make intelligent choices in a competitive pricing environment. Nonetheless, today 20 states have total or partial competition for electricity, allowing independent power generators to compete in wholesale markets and retail electric providers (REPs) to compete for end-use customers, a dynamic echoed by the Alberta electricity market across North America. (Transmission, in all states, remains a regulated natural monopoly).

A recent study by the non-partisan Pacific Research Institute (PRI) provides compelling evidence that competition in power markets has been a boon for consumers. Using data from the U.S. Energy Information Administration (EIA), PRI’s researchers found that wholesale electricity prices in competitive markets have been generally declining or flat, prompting discussions of free electricity business models, over the last five years. For example, compared to 2015, wholesale power prices in New England have dropped more than 44 percent, those in most Mid-Atlantic States have fallen nearly 42 percent, and in New York City they’ve declined by nearly 45 percent. Wholesale power costs have also declined in monopoly states, but at a considerably slower rate.

As for end-users, states that have competitive retail electricity markets have seen smaller price increases, as consumers can shop for electricity in Texas more cheaply than in monopoly states. Again, using EIA data, PRI found that in 14 competitive jurisdictions, retail prices essentially remained flat between 2008 and 2020. By contrast, retail prices jumped an average of 21 percent in monopoly states.  The ten states with the largest retail price increases were all monopoly-based frameworks. A 2017 report from the Retail Energy Supply Association found customers in states that still have monopoly utilities saw their average energy prices increase nearly 19 percent from 2008 to 2017 while prices fell 7 percent in competitive markets over the same period.

The PRI study also observed that competition has improved grid reliability, the recent power disruptions in California and Texas, alongside disruptions in coal and nuclear sectors across the U.S., notwithstanding. Looking at two common measures of grid resiliency, PRI’s analysis found that power interruptions were 10.4 percent lower in competitive states while the duration of outages was 6.5 percent lower.

Citing data from the EIA between 2008 and 2018, PRI reports that greenhouse gas emissions in competitive states declined on average 12.1 percent compared to 7.3 percent in monopoly states. This result is not surprising, and debates over whether Israeli power supply competition can bring cheaper electricity mirror these dynamics.  In a competitive wholesale market, independent power producers have an incentive to seek out lower-cost options, including subsidized renewables like wind and solar. By contrast, generators in monopoly markets have no such incentive as they can pass on higher costs to end-users. Perhaps the most telling case is in the monopoly state of Georgia where the cost to build nuclear Plant Vogtle has doubled from its original estimate of $14 billion 12 years ago. Overruns are estimated to cost Georgia ratepayers an average of $854, and there is no definite date for this facility to come on line. This type of mismanagement doesn’t occur in competitive markets.

Unfortunately, some critics are attempting to halt the momentum for electricity competition and have pointed to last winter’s “deep freeze” in Texas that left several million customers without power for up to a week. But this example is misplaced. Power outages in February were the result of unprecedented and severe weather conditions affecting electricity generation and fuel supply, and numerous proposals to improve Texas grid reliability have focused on weatherization and fuel resilience; the state simply did not have enough access to natural gas and wind generation to meet demand. Competitive power markets were not a factor.

The benefits of wholesale and retail competition in power markets are incontrovertible. Evidence shows that households and businesses in competitive states are paying less for electricity while grid reliability has improved. The facts also suggest that wholesale and retail competition can lead to faster reductions in greenhouse gas emissions. In short, competition in power markets is good for consumers and good for the environment.

Bernard L. Weinstein is emeritus professor of applied economics at the University of North Texas, former associate director of the Maguire Energy Institute at Southern Methodist University, and a fellow of Goodenough College, London. He wrote this for InsideSources.com.

 

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Dubai Planning Large-Scale Solar Powered Hydrogen Production

Dubai Green Hydrogen advances electrolysis at the Mohammed Bin Rashid Al Maktoum Solar Park, with DEWA and Siemens enabling clean energy storage, re-electrification, and fuel-cell mobility for Expo 2020 Dubai and public transport.

 

Key Points

Dubai Green Hydrogen is a DEWA-Siemens project making solar hydrogen for storage, mobility, and reelectrification.

✅ Electrolysis at Mohammed Bin Rashid Al Maktoum Solar Park

✅ Partners: DEWA and Siemens; public-private demonstration plant

✅ Hydrogen for buses, re-electrification, and energy storage

 

Something you hear frequently if you are a clean tech aficionado is that excess solar and wind power can be used to split water into oxygen and hydrogen. The Dubai Supreme Council of Energy, the 2020 Dubai Higher Committee and the Dubai Electricity and Water Authority broke ground in early February on a solar power hydrogen electrolysis facility located in the Mohammed Bin Rashid Al Maktoum Solar Park, and related initiatives like the Solar Decathlon Middle East underscore Dubai's clean energy focus. Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai Supreme Council of Energy and chairman of the Expo 2020 Dubai Higher Committee, participated in the groundbreaking ceremony, according to a report by Khaleej Times.

Saeed Mohammed Al Tayer, CEO of DEWA, said at the groundbreaking ceremony the project is important to understanding the limits of green hydrogen technology and how it can contribute to the UAE’s vision of clean energy, and aligns with DEWA's latest renewable initiatives now progressing in the emirate. “This pioneering project is a role model for strategic partnerships between the public and private sectors. It will contribute to developing the green economy concept in the UAE and explore the potential of green hydrogen technology. The hydrogen produced at the facility will be stored and deployed for re-electrification, transportation and other uses.”

Siemens is providing much of the technology that will be used at the demonstration facility, while DEWA expands its China outreach to woo renewable energy firms that can contribute to the ecosystem. Joe Kaeser, president and CEO of Siemens, said the UAE was the perfect location for Siemens to test the technology, building on advances in offshore green hydrogen the company is pursuing. One of the primary uses of the hydrogen produced will be to power Dubai’s public transportation system.

“We are aware of the stress that is placed on vehicles in this region due to the high levels of heat; with hydrogen cells, you are not putting as much strain on the vehicle and that improves its longevity,” Kaeser said. “However, this is only the first step and we are eager to explore more ways in which we can adapt the technology to other sectors. The interest from various companies and partners has been immense and we are eager to work with all interested parties.”

“Dewa, Expo 2020 Dubai and Siemens are working together to help realize His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai’s, vision to identify new energy resources and provide sustainable power as part of a balanced approach that prioritizes the environment. Our aim is to make Dubai a model of energy efficiency and safety,” said Sheikh Ahmed.

Expo 2020 Dubai intends to use the hydrogen generated at the facility to transport visitors to the Expo 2020 Dubai and the Mohammed bin Rashid Al Maktoum Solar Park, reflecting regional momentum such as Saudi Arabia's clean energy plans over the next decade, in hydrogen fuel cell powered vehicles. Live data of the green hydrogen electrolysis will be displayed at Expo 2020 Dubai to help inform broader efforts like hydrogen hubs in the United States.

 

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NEW Hydro One shares down after Ontario government says CEO, board out

Hydro One Leadership Shakeup unsettles investors as Ontario government ousts CEO and board, pressuring shares; analysts cite political and regulatory risk, stock volatility, trimmed price targets, and dividend stability at the regulated utility.

 

Key Points

An abrupt CEO exit and board overhaul at Hydro One, driving share declines and raising political and regulatory risk.

✅ Shares fall as CEO retires and board resigns under provincial pressure.

✅ Analysts cut price targets; warn of political, regulatory risks.

✅ New board to pick CEO; province consults on compensation.

 

Hydro One Ltd. shares slid Thursday with some analysts sounding warnings of greater uncertainty after the new Ontario government announced the retirement of the electrical utility's chief executive and the replacement of its board of directors.

 After sagging by almost eight per cent in early trading on the Toronto Stock Exchange, following news that Q2 profit plunged 23% amid weaker electricity revenue, shares of the company were later down four per cent, or 81 cents, at $19.36 as of 11:42 a.m. ET.

On Wednesday, after stock markets had closed for the day, Ontario Premier Doug Ford announced the immediate retirement of Hydro One CEO Mayo Schmidt. He leaves with a $400,000 payout in lieu of post-retirement benefits and allowances, Hydro One said.

Doug Ford's government forces out Hydro One '$6-million man'

During the recent provincial election campaign, Ford vowed to fire Schmidt, who earned $6.2 million last year and whose salary wouldn't be reduced despite calls to cut electricity costs.

Paul Dobson, Hydro One's chief financial officer, will serve as acting CEO until a new top executive is selected.

Ford also said the entire board of directors of the utility would resign. Hydro One said a new board — four members of which will be nominated by the province — will select the company's next CEO, and the province will be consulted on the next leader's compensation.

A new board is expected to be formed by mid-August.

The provincial government is the largest single investor in Hydro One, holding a 47 per cent stake. The company was partly privatized by the former Liberal government in 2015, while the NDP has proposed to make hydro public again in Ontario to change course.

 

Doug Ford promises to keep Pickering nuclear plant open until 2024

In response to the government's move to supplant the utility's board and CEO, some analysts cautioned investors about too many unknowns in the near-term outlook, citing raised political or regulatory risks.

Analyst Jeremy Rosenfield of iA Securities cut his rating on Hydro One shares to hold from buy, and reduced his 12-month price target for the stock to $24 from $26.

Rosenfield said the stock is still a defensive investment supported by stable earnings and cash flows, good earnings growth and healthy dividend.

However, he said in a research note that "the heightened potential for further political interference in the province's electricity market and regulated utility framework represent key risk factors that are likely to outweigh Hydro One's fundamentals over the near term."

 

Potential challenge to find new CEO

Laurentian Bank Securities analyst Mona Nazir said in a research note that the magnitude of change all at once was "surprising but not shocking."

She said the agreement that will see Hydro One consult with the provincial government on matters involving executive pay could have an impact on the hiring of a new CEO for the utility.

"Given the government's open and public criticism of the company and a potential ceiling on compensation, it may be challenging to attract top talent to the position," she wrote.

Laurentian cut its rating on the Hydro One to hold and reduced its price target to $21 from $24.

Analysts at CIBC World Markets said investors face an uncertain future, noting parallels with debates at Manitoba Hydro over political direction.

"In particular, we are are concerned about the government meddling in with [power] rates," wrote Robert Catellier and Archit Kshetrapal in a research note, adding they believe the new provincial government is aiming for a 12 per cent reduction in customers' power bills.

CIBC reduced its price target on Hydro One's shares to $20.50 from its previous target of $24.

 

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