Renewable energy now cheapest option for new electricity in most of the world: Report

Manus Island Naval Base strengthens US-Australia-PNG cooperation at Lombrum, near the South China Sea, bolstering sovereignty, maritime rights, and Pacific security amid APEC talks, infrastructure investment, and Belt and Road competition.

Key Points

A US-Australia-PNG facility at Lombrum to bolster Pacific security and protect maritime rights across the region.

✅ Shared by US, Australia, and PNG at Lombrum on Manus Island

✅ Near South China Sea, reinforcing maritime security and access

✅ Counters opaque lending, aligns with free trade and infrastructure

Scott Morrison has caught himself bang in the middle of escalating tensions between the United States and China.

The US and Australia will share a naval base in the north end of Papua New Guinea on Manus Island, creating another key staging point close to the contested South China Sea.

“The United States will partner with Papua New Guinea and Australia on their joint initiative at Lombrum Naval Base,” US Vice President Mike Pence said.

“We will work with these two nations to protect sovereignty and maritime rights in the Pacific Islands. ”

At an Asia Pacific Economic Cooperation meeting in Port Moresby on Saturday, Mr Morrison urged nations to embrace free trade and avoid “unsustainable debt”, as the Philippines' clean energy commitment also featured in discussions.

He confirmed the US and Australia will share an expanded naval base on Manus Island, as the US ramped up rhetoric against China.

Mr Pence quoted President Donald Trump in his speech following Chinese President Xi Jinping, even as a Biden energy agenda is seen by some as better for Canada.

“We have great respect for President Xi and respect for China. But in the president’s words, China’s taken advantage of the United States for many, many years,” he said.

“And those days are over.”

His speech was met with stony silence from the Chinese delegation, after President Xi had reassured leaders his Belt and Road Initiative was not a debt trap.

China has also been at loggerheads with the United States over its territorial ambitions in the Pacific, encapsulated by Xi’s Belt and Road Initiative.

Unveiled in 2013, the Belt and Road initiative aims to bolster a sprawling network of land and sea links with Southeast Asia, Central Asia, the Middle East, Europe and Africa.

China’s efforts to win friends in the resource-rich Pacific have been watched warily by the traditionally influential powers in the region — Australia and the United States.

“It is not designed to serve any hidden geopolitical agenda,” President Xi said on Saturday.

“Nor is it a trap, as some people have labelled it.”

But Mr Pence said loans to developing countries were too often opaque and encouraged nations to look to the US instead of China.

“Too often they come with strings attached and lead to staggering debt,” he said in his speech.

“Do not accept foreign debt that could compromise your sovereignty.

“Just like America, always put your country first.”

Mr Morrison committed Australia to look to the Pacific nations and on Sunday he will host an informal BBQ with Pacific leaders, amid domestic moves like Western Australia's electricity bill credit for households.

He also announced a joint partnership with Japan and the US to fund infrastructure around the region, while at home debates over an electricity market overhaul continue.

On the back of Mr Morrison’s defence of free trade at the summit, Australian Trade Minister Simon Birmingham said he was confident the US was interested in an open trading environment in the long run, with parallel discussions such as a U.S.-Canada energy partnership underscoring regional economic ties.

Australia is hoping the US will, in the end, take a similar approach to its trade dispute with China as it did with its tariff threats against Mexico and Canada, as cross-border negotiations like the Columbia River Treaty continue to shape U.S.-Canada ties.

“Ultimately, they laid down arms, they walked away from threats, and they struck a new trade deal that ensures trade continues in that North American bloc,” Mr Birmingham told ABC TV on Sunday.

“We hope the same will happen in relation to China.”

Four countries including the US have signed up to an effort to bring electricity to 70 per cent of Papua New Guinea’s people by 2030.

Australia, Japan, the US and New Zealand on Sunday signed an agreement to work with Papua New Guinea’s government on electrification.

It’s the latest sign of great power rivalry in the South Pacific, where China is vying with the US and its allies for influence.

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Hydro-Quebec Crypto Mining Pause signals a temporary halt as blockchain power requests surge; energy regulator review will weigh electricity demand, winter peak constraints, tariffs, investments, and local jobs to optimize grid stability and revenues.

Key Points

A provincial halt on new miner power requests as Hydro-Quebec sets rules to safeguard demand, winter peaks, and rates.

✅ Temporary halt on new electricity sales to crypto miners

✅ Regulator to rank projects by jobs, investment, and revenue

✅ Winter peak demand and tariffs central to new framework

Major Canadian electricity provider Hydro-Québec will temporarily stop processing requests from cryptocurrency miners in order for the company to fulfil its obligations to supply energy to the entire province, while its global ambitions adjust to changing demand, according to a press release published June 7.

Hydro-Québec is experiencing “unprecedented” demand from blockchain companies, which reportedly exceeds the electric utility’s short and medium-term capacity. In this regard, the Quebec provincial government has ordered Hydro-Québec to halt electric power sales to cryptocurrency miners, and, following the New Hampshire rejection of Northern Pass announced a new framework for this category of electricity consumers.

In the coming days, Hydro-Québec will reportedly file an application to local energy regulator Régie de l'énergie, proposing a selection process for blockchain industry projects so as “not to miss the opportunities offered by this industry.” Regulators will reportedly target companies which can offer the province the most profitable economic advantages, including investments and local job creation.

#google#

Régie de l'énergie is instructed to consider “the need for a reserved block of energy for this category of consumers, the possibility of maximizing Hydro-Québec's revenues, and issues related to the winter peak period” as well as interprovincial arrangements like the Ontario-Québec electricity deal under discussion. Éric Filion, President of Hydro-Québec Distribution, said:

"The blockchain industry is a promising avenue for Hydro-Québec. Guidelines are nevertheless required to ensure that the development of this industry maximizes spinoffs for Québec without resulting in rate increases for our customers. We are actively participating in the Régie de l'énergie's process so that these guidelines can be produced as quickly as possible."

With this move, the government of Québec deviates from its decision to reportedly open the electricity market to miners at the end of last month, even as an Ontario-Quebec energy swap helps manage electricity demands. In March, the government said it was not interested in providing cheap electricity to Bitcoin miners, stating that cryptocurrency mining at a discount without any sort of “added value” for the local economy was unfavorable.

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Vietnam Offshore Wind Regulations expand coastal zones to six nautical miles, remove water depth limits, streamline permits, and boost investment, grid integration, and renewable energy capacity across deeper offshore wind resource areas.

Key Points

Policies extend sites to six nautical miles, scrap depth limits, and speed permits to scale offshore wind.

✅ Extends offshore zones to six nautical miles from shore

✅ Removes water depth limits to access stronger winds

✅ Streamlines permits, aiding grid integration and finance

Vietnam has recently redefined its regulations for offshore wind power projects, marking a significant development in the country's renewable energy ambitions. This strategic shift aims to streamline regulatory processes, enhance project feasibility, and accelerate the deployment of offshore wind energy in Vietnam's coastal regions, amid a trillion-dollar offshore wind market globally.

Regulatory Changes

The Vietnamese government has adjusted offshore wind power regulations by extending the allowable distance from shore for wind farms to six nautical miles (approximately 11 kilometers), a move that aligns with evolving global practices such as Canada's offshore wind plan announced recently by regulators. This expansion from previous limits aims to unlock new areas for development and maximize the utilization of Vietnam's vast offshore wind potential.

Scrapping Depth Restrictions

In addition to extending offshore boundaries, Vietnam has removed restrictions on water depth for offshore wind projects. This revision allows developers to explore deeper waters, where wind resources may be more abundant, thereby diversifying project opportunities and optimizing energy generation capacity.

Strategic Implications

The redefined regulations are expected to stimulate investment in Vietnam's renewable energy sector, attracting domestic and international stakeholders keen on capitalizing on the country's favorable wind resources, with World Bank support for wind underscoring the growing pipeline in developing markets. The move aligns with Vietnam's broader energy diversification goals and commitment to reducing reliance on fossil fuels.

Economic Opportunities

The expansion of offshore wind development zones creates economic opportunities across the value chain, from project planning and construction to operation and maintenance. The influx of investments is anticipated to spur job creation, technology transfer, and infrastructure development in coastal communities, as industry groups like Marine Renewables Canada shift toward offshore wind specialization.

Environmental and Energy Security Benefits

Harnessing offshore wind power contributes to Vietnam's efforts to mitigate greenhouse gas emissions and combat climate change. By integrating renewable energy sources into its energy mix, Vietnam enhances energy security, as seen in the UK offshore wind expansion, reduces dependency on imported fuels, and promotes sustainable economic growth.

Challenges and Considerations

Despite the promising outlook, offshore wind projects face challenges such as technical complexities, environmental impact assessments, and grid integration, as well as exposure to policy risk exemplified by U.S. opposition to offshore wind debates.

Future Outlook

Looking ahead, Vietnam's redefined offshore wind regulations position the country as a key player in the global renewable energy transition, a trend reinforced by progress in offshore wind in Europe elsewhere. Continued policy support, investment facilitation, and technological innovation will be critical in unlocking the full potential of offshore wind power and achieving Vietnam's renewable energy targets.

Conclusion

Vietnam's revision of offshore wind power regulations reflects a proactive approach to advancing renewable energy development and fostering a conducive investment environment. By expanding development zones and eliminating depth restrictions, Vietnam sets the stage for accelerated growth in offshore wind capacity, contributing to both economic prosperity and environmental stewardship. As stakeholders seize opportunities in this evolving landscape, collaboration and innovation will drive Vietnam towards a sustainable energy future powered by offshore wind.

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Vehicle-to-Grid Revenue helps EV owners earn income via V2G, demand response, and ancillary services by exporting stored energy, supporting grid balancing, smart charging, and renewable integration with two-way charging infrastructure.

Key Points

Income EV owners earn by selling battery power to the grid for balancing, response, and flexibility services.

✅ Earn up to about $1,530 annually in Denmark trials

✅ Requires V2G-compatible EVs and two-way smart chargers

✅ Provides ancillary services and supports renewable integration

Electric car owners are earning as much as $1,530 a year just by parking their vehicle and feeding excess power back into the grid, effectively selling electricity back to the grid under V2G schemes.

Trials in Denmark carried out by Nissan and Italy’s biggest utility Enel Spa showed how batteries inside electric cars could, using vehicle-to-grid technology, help balance supply and demand at times and provide a new revenue stream for those who own the vehicles.

Technology linking vehicles to the grid marks another challenge for utilities already struggling to integrate wind and solar power into their distribution system. As the use of plug-in cars spreads, grid managers will have to pay closer attention and, with proper management, to when motorists draw from the system and when they can smooth variable flows.

For example, California's grid stability efforts include leveraging EVs as programs expand.

“If you blindingly deploy in the market a massive number of electric cars without any visibility or control over the way they impact the electricity grid, you might create new problems,” said Francisco Carranza, director of energy services at Nissan Europe in an interview with Bloomberg New Energy Finance.

While the Tokyo-based automaker has trials with more than 100 cars across Europe, only those in Denmark are able to earn money by feeding power back into the grid. There, fleet operators collected about 1,300 euros ($1,530) a year using the two-way charge points, said Carranza.

Restrictions on accessing the market in the U.K. means the company needs to reach about 150 cars before they can get paid for power sent back to the grid. That could be achieved by the end of this year, he said.

“It’s feasible,” he said. “It’s just a matter of finding the appropriate business model to deploy the business wide-scale.’’

Electric car demand globally is expected to soar, challenging state power grids and putting further pressure on grid operators to find new ways of balancing demand. Power consumption from vehicles will grow to 1,800 terawatt-hours in 2040 from just 6 terawatt-hours now, according to Bloomberg New Energy Finance.

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Southeast Alaska Energy Projects advance hydroelectric, biomass, and heat pumps, displacing diesel via grants. Inside Passage Electric Cooperative and Alaska Energy Authority support Kake, Hoonah, Ketchikan with wood pellets, feasibility studies, and rate relief.

Key Points

Programs using hydro, biomass, and heat pumps to cut diesel use and lower electricity costs in Southeast Alaska.

✅ Hydroelectric at Gunnuk Creek to replace diesel in Kake

✅ Biomass and wood pellets displacing fuel oil in facilities

✅ Free feasibility studies; heat pumps where economical

New projects are under development throughout the region to help reduce energy costs for Southeast Alaska residents. A panel presented some of those during last week’s Southeast Conference annual fall meeting in Ketchikan.

Jodi Mitchell is with Inside Passage Electric Cooperative, which is working on the Gunnuk Creek hydroelectric project for Kake. IPEC is a non-profit, she said, with the goal of reducing electric rates for its members.

The Gunnuk Creek project will be built at an existing dam.

“The benefits for the project will be, of course, renewable energy for Kake. And we estimate it will save about 6.2 million gallons over its 50-year life,” she said. “Although, as you heard earlier, these hydro projects last forever.”

The gallons saved are of diesel fuel, which currently is used to power generators for electricity, though in places with limited options some have even turned to new coal plants to keep the lights on.

IPEC operates other hydro projects in Klukwan and Hoonah. Mitchell said they’re looking into future projects, one near Angoon and another that would add capacity to the existing Hoonah project, even as an independent power project in British Columbia is in limbo.

Mitchell said they fund much of their work through grants, which helps keep electric rates at a reasonable level.

Devany Plentovich with the Alaska Energy Authority talked about biomass projects in the state. She said the goal is to increase wood energy use in Alaska, even as some advocates call for a reduction in biomass electricity in other regions.

“We offer any community, any entity, a free feasibility study to see if they have a potential heating system in their community,” she said. “We do advocate for wood heating, but we are trying to get a community to pick the best heating technology for their situation, including options that use more electricity for heat when appropriate. So in a lot of situations, our consultants will give you the economics on a wood heating system but they’ll also recommend maybe you should look at heat pumps or look at waste energy.”

Plentovich said they recently did a study for Ketchikan’s Holy Name Church and School. The result was a recommendation for a heat pump rather than wood.

But, she said, wood energy is on the rise, and utilities elsewhere are increasing biomass for electricity as well. There are more than 50 systems in the state displacing more than 500,000 gallons of fuel oil annually. Those include systems on Prince of Wales Island and in Ketchikan.

Ketchikan recently experienced a supply issue, though. A local wood-pellet manufacturer closed, which is a problem for the airport and the public library, among other facilities that use biomass heaters.

Karen Petersen is the biomass outreach coordinator for Southeast Conference. She said this opens up a great opportunity for someone.

“Devany and I are working on trying to find a supplier who wants to go into the pellet business,” she said. “Probably importing initially, and then converting over to some form of manufacturing once the demand is stabilized.”

So, Petersen said, if anyone is interested in this entrepreneurial opportunity, contact her through Southeast Conference for more information.

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Ecofiscal Commission EV Policy Shift examines carbon pricing limits, endorsing signal boosters like subsidies, EV incentives, and coal bans, amid advisory changes and public pushback, to accelerate emissions cuts beyond market-based taxes and regulations.

Key Points

An updated stance recognizing carbon pricing limits and backing EV incentives, subsidies, and rules to reduce emissions.

✅ Carbon pricing plus subsidies, EV incentives

✅ Advisory shift; Jack Mintz departs

✅ Focus on emissions cuts, coal power bans

Something strange happened at the Ecofiscal Commission recently. Earlier this month, the carbon-tax advocacy group featured on its website as one of its advisers the renowned Canadian economist (and FP Comment columnist) Jack M. Mintz. The other day, suddenly and without fanfare, Mintz was gone from the website, and the commission’s advisory board.

Advisers come and advisers go, of course, but it turns out there was an impetus for Mintz’s departure. The Ecofiscal Commission in its latest report, dropped just before Canada Day, seemingly shifted from its position that carbon prices were so excellent at mimicking market forces that the tax could repeal and replace virtually the entire vast expensive gallimaufry of subsidies, caps, rules and regulations that are costing Canada a fortune in business and bureaucrats. As some Ecofiscal commissioners wrote just a few months ago, policies that “dictate specific technologies or methods for reducing emissions constrain private choice and increase costs” and were a bad idea.

But, in this latest report, the commission is now musing about the benefits of carbon-tax “signal boosters”: that is, EV subsidies and rules to, for instance, get people to start buying electric vehicles (EVs), as well as bans on coal-fired power. “Even well designed carbon pricing can have limitations,” rationalized the commission. Mintz said he had “misgivings” about the change of tack. He decided it best if he focus his advisory energies elsewhere.

It’s hard to blame the commission for falling like everyone else for the electric-car mania that’s sweeping the nation and the world. Electric cars offer a sexiness that dreary old carbon taxes can never hope to match — especially in light of a new Angus Reid poll last week that showed the majority of Canadians now want governments to shelve any plans for carbon taxes.

So far, because nobody’s really driving these miracle machines, said mania has been limited to breathless news reports about how the electric-vehicle revolution is about to rock our world. EVs comprise just two-tenths of a per cent of all passenger vehicles in North America, despite the media’s endless hype and efforts of green-obsessed governments to cover much of the price tag, like Ontario’s $14,000 rebate for Tesla buyers. In Europe, where virtue-signalling urban environmentalism is the coolest, they’re not feeling the vehicular electricity much more: EVs account for barely one per cent of personal vehicles in France, the U.K. and Germany. When Hong Kong cancelled Tesla rebates in April, sales fell to zero.

Going by the ballyhoo, you’d think EVs were at an inflection point and an unstoppable juggernaut. But it’s one that has yet to even get started. In his 2011 State of the Union address, then president Barack Obama predicted one million electric cars on the road by 2015. Four years later, there wasn’t even a third that many. California offered so many different subsidies for electric vehicles that low-income families could get rebates of up to US$13,500, but it still isn’t even close to reaching its target of having zero-emission vehicles make up 15 per cent of California auto sales by 2025, being stuck at three per cent since 2014. Ontario’s Liberal government last year announced to much laughter its plan to ensure that every family would have at least one zero-emission vehicle (ZEV) by 2024, and Quebec made a plan to make ZEVs worth 15.5 per cent of sales by 2020, while Ottawa’s 2035 EV mandate attracts criticism too. Let’s see how that’s going: Currently, ZEVs make up 0.16 per cent of new vehicle sales in Ontario and 0.38 per cent in Quebec.

The latest sensational but bogus EV news out last week was France’s government announcing the “end of the sale of gasoline and diesel cars by 2040,” and Volvo apparently announcing that as of 2019, all its models would be “electric.” Both announcements made international headlines. Both are baloney. France provided no actual details about this plan (will it literally become a crime to sell a gasoline car? Will hybrids, run partly on gasoline, be allowed?), but more importantly, as automotive writer Ed Wiseman pointed out in The Guardian, a lot will happen in technology and automotive use over the next 23 years that France has no way to predict, with changes in self-driving cars, public car-sharing and fuel technologies. Imagine making rules for today’s internet back in 1994.

Volvo, meanwhile, looked to be recycling and repackaging years-old news to seize on today’s infatuation with electric vehicles to burnish its now Chinese-owned brand. Since 2010, Volvo’s plan has been to focus on engines that were partly electric, with electric turbochargers, but still based on gasoline. Volvo doesn’t actually have an all-electric model, but the gasoline-swigging engine of its popular XC90 SUV is, partly, electrical. When Volvo said all its models would in two years be “electric,” it meant this kind of engine, not that it was phasing out the internal-combustion gasoline engine. But that is what it wanted reporters to think, and judging by all the massive and inaccurate coverage, it worked.

The real story being missed is just how pathetic things look right now for electric cars. Gasoline prices in the U.S. turned historically cheap in 2015 and stayed cheap, icing demand for gasless cars. Tesla, whose founder’s self-promotion had made the niche carmaker magically more valuable than powerhouses like Ford and GM, haemorrhaged US$12 billion in market value last week after tepid sales figures brought some investors back to Earth, even as the company’s new Model 3 began rolling off the line.

Not helping is that environmental claims about environmental cars are falling apart. In June, Tesla was rocked by a controversial Swedish study that found that making one of its car batteries released as much CO2 as eight years of gasoline-powered driving. And Bloomberg reported last week on a study by Chinese engineers that found that electric vehicles, because of battery manufacturing and charging by fossil-fuel-powered electricity sources, emit 50-per-cent more carbon than do internal-combustion engines. Still, the electric-vehicle hype not only continues unabated, it gets bigger and louder every day. If some car company figures out how to harness it, we’d finally have a real automotive revolution on our hands.

Kevin Libin, Financial Post

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