Rio pledges ‘power island’ immune from blackouts

Global Electricity Demand Surge underscores rising coal generation, lagging renewables deployment, and escalating emissions, as nations prioritize reliable power; nuclear energy and grid decarbonization emerge as pivotal solutions to the electricity transition.

Key Points

A rapid post-lockdown rise in power consumption, outpacing renewables growth and driving higher coal use and emissions.

✅ Coal generation rises faster than wind and solar additions

✅ Emissions increase as economies prioritize reliable baseload power

✅ Nuclear power touted for rapid grid decarbonization

By Robert Bryce

As the Covid lockdowns are easing, the global economy is recovering and that recovery is fueling blistering growth in electricity use. The latest data from Ember, the London-based “climate and energy think tank focused on accelerating the global electricity transition,” show that global power demand soared by about 5% in the first half of 2021. That’s faster growth than was happening back in 2018 when electricity use was increasing by about 4% per year.

The numbers from Ember also show that despite lots of talk about the urgent need to reduce greenhouse gas emissions, coal demand for power generation continues to grow and emissions from the electric sector continue to grow: up by 5% over the first half of 2019. In addition, they show that while about half of the growth in electricity demand was met by wind and solar, as low-emissions sources are set to cover almost all new demand over the next three years, overall growth in electricity use is still outstripping the growth in renewables. 

The soaring use of electricity, and increasing emissions from power generation confirm the sage wisdom of Rasheed Wallace, the volatile former power forward with the Detroit Pistons and other NBA teams, and now an assistant coach at the  University of Memphis, who coined the catchphrase: “Ball don’t lie.” If Wallace or one of his teammates was called for a foul during a basketball game that he thought was undeserved, and the opposing player missed the ensuing free throws, Wallace would often holler, “ball don’t lie,” as if the basketball itself was pronouncing judgment on the referee’s errant call. 

I often think about Wallace’s catchphrase while looking at global energy and power trends and substitute my own phrase: numbers don’t lie.

Over the past few weeks Ember, BP, and the International Energy Agency have all published reports which come to the same two conclusions: that countries all around the world — and China's electricity sector in particular — are doing whatever they need to do to get the electricity they need to grow their economies. Second, they are using lots of coal to get that juice. 

As I discuss in my recent book, A Question of Power: Electricity and the Wealth of Nations, Electricity is the world’s most important and fastest-growing form of energy. The Ember data proves that. At a growth rate of 5%, global electricity use will double in about 14 years, and as surging electricity demand is putting power systems under strain around the world, the electricity sector also accounts for the biggest single share of global carbon dioxide emissions: about 25 percent. Thus, if we are to have any hope of cutting global emissions, the electricity sector is pivotal. Further, the soaring use of electricity shows that low-income people and countries around the world are not content to stay in the dark. They want to live high-energy lives with access to all the electronic riches that we take for granted.  

 Ember’s data clearly shows that decarbonizing the global electric grid will require finding a substitute for coal. Indeed, coal use may be plummeting in the U.S. and western Europe, where U.S. electricity consumption has been declining, but over the past two years, several developing countries including Mongolia, China, Bangladesh, Vietnam, Kazakhstan, Pakistan, and India, all boosted their use of coal. This was particularly obvious in China, where, between the first half of 2019 and the first half of 2021, electricity demand jumped by about 14%. Of that increase, coal-fired generation provided roughly twice as much new electricity as wind and solar combined. In Pakistan, electricity demand jumped by about 7%, and coal provided more than three times as much new electricity as nuclear and about three times as much as hydro. (Wind and solar did not grow at all in Pakistan over that period.) 

Hate coal all you like, but its century-long persistence in power generation proves its importance. That persistence proves that climate change concerns are not as important to most consumers and policymakers as reliable electricity. In 2010, Roger Pielke Jr. dubbed this the Iron Law of Climate Policy which says “When policies on emissions reductions collide with policies focused on economic growth, economic growth will win out every time.” Pielke elaborated on that point, saying the Iron Law is a “boundary condition on policy design that is every bit as limiting as is the second law of thermodynamics, and it holds everywhere around the world, in rich and poor countries alike. It says that even if people are willing to bear some costs to reduce emissions (and experience shows that they are), they are willing to go only so far.”

Over the past five years, I’ve written a book about electricity, co-produced a feature-length documentary film about it (Juice: How Electricity Explains the World), and launched a podcast that focuses largely on energy and power. I’m convinced that Pielke’s claim is exactly right and should be extended to electricity and dubbed the Iron Law of Electricity which says, “when forced to choose between dirty electricity and no electricity, people will choose dirty electricity every time.” I saw this at work in electricity-poor places all over the world, including India, Lebanon, and Puerto Rico. 

Pielke, a professor at the University of Colorado as well as a highly regarded author on the politics of climate change and sports governance, has since elaborated on the Iron Law. During an interview in Juice, he explained it thusly: “The Iron Law says we’re not going to reduce emissions by willingly getting poor. Rich people aren't going to want to get poorer, poor people aren't going to want to get poorer.” He continued, “If there is one thing that we can count on it is that policymakers will be rewarded by populations if they make people wealthier. We're doing everything we can to try to get richer as nations, as communities, as individuals. If we want to reduce emissions, we really have only one place to go and that's technology.”

Pielke’s point reminds me of another of my favorite energy analysts, Robert Rapier, who made a salient point in his Forbes column last week. He wrote, “Despite the blistering growth rate of renewables, it’s important to keep in mind that overall global energy consumption is growing. Even though global renewable energy consumption has increased by about 21 exajoules in the past decade, overall energy consumption has increased by 51 exajoules. Increased fossil fuel consumption made up most of this growth, with every category of fossil fuels showing increased consumption over the decade.” 

The punchline here – despite my tangential reference to Rasheed Wallace — is obvious: The claims that massive reductions in global carbon dioxide emissions must happen soon are being mocked by the numbers. Countries around the world are acting in their interest, particularly when it comes to their electricity needs and that is resulting in big increases in emissions. As Ember concludes in their report, wind and solar are growing, and some analyses suggest renewables could eclipse coal by 2025, but the “electricity transition” is “not happening fast enough.”

Ember explains that in the first half of 2021, wind and solar output exceeded the output of the world’s nuclear reactors for the first time. It also noted that over the past two years, “Nuclear generation fell by 2% compared to pre-pandemic levels, as closures at older plants across the OECD, especially amid debates over European nuclear trends, exceeded the new capacity in China.” While that may cheer anti-nuclear activists at groups like Greenpeace and Friends of the Earth, the truth is obvious: the only way – repeat, the only way – the electric sector will achieve significant reductions in carbon dioxide emissions is if we can replace lots of coal-fired generation with nuclear reactors and do so in relatively short order, meaning the next decade or so. Renewables are politically popular and they are growing, but they cannot, will not, be able to match the soaring demand for the electricity that is needed to sustain modern economies and bring developing countries out of the darkness and into modernity. 

Countries like China, Vietnam, India, and others need an alternative to coal for power generation. They need new nuclear reactors that are smaller, safer, and cheaper than the existing designs. And they need it soon. I will be writing about those reactors in future columns.

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Trump Offshore Wind Pledge signals a push for deregulation over renewable energy, challenging climate policy, green jobs, and coastal development while citing marine ecosystems, navigation, and energy independence amid state-federal permitting and legal hurdles.

Key Points

Trump's vow to cancel offshore wind projects favors deregulation and fossil fuels, impacting climate policy and jobs.

✅ Day-one plan to scrap offshore wind leases and permits

✅ Risks to renewable targets, grid mix, and coastal supply chains

✅ Likely court fights and state-federal regulatory conflicts

During his tenure as President of the United States, Donald Trump made numerous promises and policy proposals, many of which sparked controversy and debate. One such pledge was his vow to scrap offshore wind projects on "day one" of his presidency. This bold statement, while appealing to certain interests, raised concerns about its potential impact on U.S. offshore wind growth and environmental conservation efforts.

Trump's opposition to offshore wind projects stemmed from various factors, including his skepticism towards renewable energy, even as forecasts point to a $1 trillion offshore wind market in coming years, concerns about aesthetics and property values, and his focus on promoting traditional energy sources like coal and oil. Throughout his presidency, Trump prioritized deregulation and sought to roll back environmental policies introduced by previous administrations, arguing that they stifled economic growth and hindered American energy independence.

The prospect of scrapping offshore wind projects drew mixed reactions from different stakeholders. Supporters of Trump's proposal pointed to potential benefits such as preserving scenic coastal landscapes, protecting marine ecosystems, and addressing concerns about navigational safety and national security. Critics, however, raised valid concerns about the implications of such a decision on the renewable energy sector, including progress toward getting 1 GW on the grid nationwide, climate change mitigation efforts, and job creation in the burgeoning green economy.

Offshore wind energy has emerged as a promising source of clean, renewable power with the potential to reduce greenhouse gas emissions and diversify the energy mix. Countries like Denmark, the United Kingdom, and Germany have made significant investments in offshore wind in Europe, demonstrating its viability as a sustainable energy solution. In the United States, offshore wind projects have gained traction in states like Massachusetts, New York, and New Jersey, where coastal conditions are conducive to wind energy generation.

Trump's pledge to scrap offshore wind projects on "day one" of his presidency raised questions about the feasibility and legality of such a move. While the president has authority over certain aspects of energy policy and regulatory oversight, the development of offshore wind projects often involves multiple stakeholders, including state governments, local communities, private developers, and federal agencies, and actions such as Interior's move on Vineyard Wind illustrate federal leverage in permitting. Any attempt to halt or reverse ongoing projects would likely face legal challenges and regulatory hurdles, potentially delaying or derailing implementation.

Moreover, Trump's stance on offshore wind projects reflected broader debates about the future of energy policy, environmental protection, and economic development. While some argued for prioritizing fossil fuel extraction and traditional energy infrastructure, others advocated for a transition towards clean, renewable energy sources, drawing on lessons from the U.K. about wind deployment, to mitigate climate change and promote sustainable development. The Biden administration, which succeeded the Trump presidency, has signaled a shift towards a more climate-conscious agenda, including support for renewable energy initiatives and commitments to rejoin international agreements like the Paris Climate Accord.

In hindsight, Trump's pledge to scrap offshore wind projects on "day one" of his presidency underscores the complexities of energy policy and the importance of balancing competing interests and priorities. While concerns about aesthetics, property values, and environmental impact are valid, addressing the urgent challenge of climate change requires bold action and innovation in the energy sector. Offshore wind energy presents an opportunity, as seen in the country's biggest offshore wind farm approved in New York, to harness the power of nature in a way that is both environmentally responsible and economically beneficial. As the United States navigates its energy future, finding common ground and forging partnerships will be essential to ensure a sustainable and prosperous tomorrow.

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Yukon SMR Feasibility Study examines small modular reactors as low-emissions nuclear power for Yukon's grid and remote communities, comparing costs, safety, waste, and reliability with diesel generation, renewables, and energy efficiency.

Key Points

An official assessment of small modular reactors as low-emission power options for Yukon's grid and remote sites.

✅ Compares SMR costs vs diesel, hydro, wind, and solar

✅ Evaluates safety, waste, fuel logistics, decommissioning

✅ Considers remote community loads and grid integration

The Yukon government is looking for ways to reduce the territory's emissions, and wondering if nuclear power is one way to go.

The territory is undertaking a feasibility study, and, as some developers note, combining multiple energy sources can make better projects, to determine whether there's a future for SMRs — small modular reactors — as a low-emissions alternative to things such as diesel power.

The idea, said John Streicker, Yukon's minister of energy, mines and resources, is to bring the SMRs into the Yukon to generate electricity.

"Even the micro ones, you could consider in our remote communities or wherever you've got a point load of energy demand," Streicker said. "Especially electricity demand."

For remote coastal communities elsewhere in Canada, tidal energy is being explored as a low-emissions option as well.

SMRs are nuclear reactors that use fission to produce energy, similar to existing large reactors, but with a smaller power capacity. The International Atomic Energy Agency (IAEA) defines reactors as "small" if their output is under 300 MW. A traditional nuclear power plant produces about three times as much power or more.

They're "modular" because they're designed to be factory-assembled, and then installed where needed. 

Several provinces have already signed an agreement supporting the development of SMRs, and in Alberta's energy mix that conversation spans both green and fossil power, and Canada's first grid-scale SMRs could be in place in Ontario by 2028 and Saskatchewan by 2032.

A year ago, the government of Yukon endorsed Canada's SMR action plan, at a time when analysts argue that zero-emission electricity by 2035 is practical and profitable, agreeing to "monitor the progress of SMR technologies throughout Canada with the goal of identifying potential for applicability in our northern jurisdiction."

The territory is now following through by hiring someone to look at whether SMRs could make sense as a cleaner-energy alternative in Yukon. 

The territorial government has set a goal of reducing emissions by 45 per cent by 2030, excluding mining emissions, even as some analyses argue that zero-emissions electricity by 2035 is possible, and "future emissions actions for post-2030 have not yet been identified," reads the government's request for proposals to do the SMR study. 

Streicker acknowledges the potential for nuclear power in Yukon is a bit of "long shot" — but says it's one that can't be ignored.

"We need to look at all possible solutions," he said, as countries such as New Zealand's electricity sector debate their future pathways.

"I don't want to give the sense like we're putting all of our emphasis and energy towards nuclear power. We're not."

According to Streicker, it's nothing more than a study at this point.

Don't bother, researcher says
Still, M.V. Ramana, a professor at the School of Public Policy and Global Affairs at the University of British Columbia, said it's a study that's likely a waste of time and money. He says there's been plenty of research already, and to him, SMRs are just not a realistic option for Yukon or anywhere in Canada.

"I would say that, you know, that study can be done in two weeks by a graduate student, essentially, all right? They just have to go look at the literature on SMRs and look at the critical literature on this," Ramana said.

Ramana co-authored a research paper last year, looking at the potential for SMRs in remote communities or mine sites. The conclusion was that SMRs will be too expensive and there won't be enough demand to justify investing in them.

He said nuclear reactors are expensive, which is why their construction has "dried up" in much of the world.

"They generate electricity at very high prices," he said.

'They just have to go look at the literature,' said M.V. Ramana, a professor at the School of Public Policy and Global Affairs at the University of British Columbia. (Paul Joseph)
"[For] smaller reactors, the overall costs go down. But the amount of electricity that they will generate goes down even further."

The environmental case is also shaky, according to a statement signed last year by dozens of Canadian environmental and community groups, including the Sierra Club, Greenpeace, the Council of Canadians and the Canadian Environmental Law Associaton (CELA). The statement calls SMRs a "dirty, dangerous distraction" from tackling climate change and criticized the federal government for investing in the technology.

"We have to remember that the majority of the rhetoric we hear is from nuclear advocates. And so they are promoting what I would call, and other legal scholars and academics have called, a nuclear fantasy," said Kerrie Blaise of CELA.

Blaise describes the nuclear industry as facing an unknown future, with some of North America's larger reactors set to be decommissioned in the coming years. SMRs are therefore touted as the future.

"They're looking for a solution. And so that I would say climate change presents that timely solution for them."

Blaise argues the same safety and environmental questions exist for SMRs as for any nuclear reactors — such as how to produce and transport fuel safely, what to do with waste, and how to decommission them — and those can't be glossed over in a single-minded pursuit of lower carbon emissions.  

Main focus is still renewables, minister says
Yukon's energy minister agrees, and he's eager to emphasize that the territory is not committed to anything right now beyond a study.

"Every government has a responsibility to do diligence around this," Streicker said.

A solar farm in Old Crow, Yukon. The territory's energy minister says Yukon is still primarily focussed on renewables, and energy efficiency. (Caleb Charlie)
He also dismisses the idea that studying nuclear power is any sort of distraction from his government's response to climate change right now. Yukon's main focus is still renewable energy such as solar and wind power, though Canada's solar progress is often criticized as lagging, increasing efficiency, and connecting Yukon's grid to the hydro project in Atlin, B.C., he said.

Streicker has been open to nuclear energy in the past. As a federal Green Party candidate in 2008, Streicker broke with the party line to suggest that nuclear could be a viable energy alternative. 

He acknowledges that nuclear power is always a hot-button issue, and Yukoners will have strong feelings about it. A lot will depend on how any future regulatory process works, he says.

In taking action on climate, this Arctic community wants to be a beacon to the world
Cameco signs agreement with nuclear reactor company
"There's some people that think it's the 'Hail Mary,' and some people that think it's evil incarnate," he said. 

"Buried deep within Our Clean Future [Yukon's climate change strategy], there's a line in there that says we should keep an eye on other technologies, for example, nuclear. That's what this [study] is — it's to keep an eye on it."

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Hydro One Q2 Earnings surge on a one-time gain from a court ruling on a deferred tax asset, lifting profit, revenue, and adjusted EPS at Ontario's largest utility regulated by the Ontario Energy Board.

Key Points

Hydro One Q2 earnings jumped on an $867M court gain, with revenue at $1.67B and adjusted EPS improving to $0.39.

✅ One-time gain: $867M from tax appeal ruling.

✅ Revenue: $1.67B vs $1.41B last year.

✅ Adjusted EPS: $0.39 vs $0.26.

Hydro One Ltd., following the Peterborough Distribution sale transaction closing, reported a second-quarter profit of $1.1 billion, boosted by a one-time gain related to a court decision.

The power utility says it saw a one-time gain of $867 million in the quarter due to an Ontario court ruling on a deferred tax asset appeal that set aside an Ontario Energy Board decision earlier.

Hydro One says the profit amounted to $1.84 per share for the quarter ended June 30, amid investor concerns about uncertainties, up from $155 million or 26 cents per share a year earlier.

Shares also moved lower after the Ontario government announced leadership changes, as seen when Hydro One shares fell on the news in prior trading.

On an adjusted basis, it says it earned 39 cents per share for the quarter, despite earlier profit plunge headlines, up from an adjusted profit of 26 cents per share in the same quarter last year.

Revenue totalled $1.67 billion, up from $1.41 billion in the second quarter of 2019, while other Canadian utilities like Manitoba Hydro face heavy debt burdens.

Hydro One is Ontario’s largest electricity transmission and distribution provider, and its CEO compensation has drawn scrutiny in the province.

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Ontario COVID-19 Business Tax Relief outlines permanent Employer Health Tax exemptions, lower Business Education Tax rates, optional municipal property tax cuts, and hydro bill subsidies to support small businesses, industrial and commercial recovery.

Key Points

A provincial package of tax breaks and hydro subsidies to help small, industrial, and commercial businesses recover.

✅ Permanent Employer Health Tax exemption to $1M payroll

✅ Lower Business Education Tax rates for 94% of firms

✅ Hydro subsidies cut medium-large rates by 14-16%

The Ontario government's latest plan to help businesses survive and recover from the COVID-19 pandemic includes a suite of new tax breaks for small businesses and $1.3 billion to subsidize electricity bills for industrial and commercial operations.

The new measures were announced Thursday as part of Ontario's 2020 budget, which sets new provincial records for both spending and deficit projections.

The government of Premier Doug Ford says the budget will address barriers impeding long-term growth, ensuring the province forges a path to a full recovery from the pandemic.

"When the pandemic is over, Ontario will come back with a vengeance, stronger and more prosperous than ever before," Ford said at an afternoon news conference.

Small businesses with payrolls under $1 million will no longer have to pay the Employer Health Tax. The province temporarily raised the exemption from $490,000 to $1 million earlier this year, but the government is now making the change permanent.

The higher exemption means that about 90 per cent of Ontario businesses will no longer have to pay the tax, amounting to about $360 million by 2022, according to the province.

"We have heard from employers across Ontario that this measure helped them keep workers on the job during COVID-19," Finance Minister Rod Phillips told the legislature.

The 2020 budget lowers rates for the Business Education Tax (BET), a property tax earmarked for public education. More than 200,000 Ontario businesses, or 94 per cent, will see a lower rate.

"I believe this budget takes some significant initial steps to help stabilize the economy and help businesses, especially small businesses," said Toronto Mayor John Tory in a statement. Tory's office estimates that reductions to the BET will result in $117 million in lower taxes for commercial properties in Canada's largest city.

Municipal governments will also be permitted to reduce property taxes for small businesses, should they choose to do so. The province says it will "consider matching these reductions," which could amount to $385 million in tax relief by 2023.

Finance Minister Rod Phillips tabled the largest spending plan in Ontario history on Thursday afternoon. (Frank Gunn/The Canadian Press)
Municipalities currently have few options to provide targeted relief to local businesses. Guelph Mayor Cam Guthrie, chair of Ontario's Big City Mayors, said the prospect of lowering property taxes will likely be welcomed by local governments across the province.

"I really am looking forward to looking into that because it would give targeted relief to these businesses that have been asking for something from local governments for the past nine months," he said in an interview.

Tax cuts 'won't help a boarded up business,' NDP says
The 2020 budget does not contain any new direct funding for small businesses or their employees. NDP leader Andrea Horwath, who has proposed to make hydro public again, said those types of funding would help businesses more than potential tax reductions.

"A future hydro or tax cut won't help a boarded up business and it certainly won't help the folks that used to work there," Horwath said.

"Those measures are great if you're a company that's doing really well ... but let's face it, main streets across Ontario are crumbling."

Ontario did reveal on Thursday more details about a previously announced $300-million fund to support businesses in Toronto, Ottawa, Peel Region and York Region, which were placed under modified Stage 2 restrictions this fall. The money can be used to cover property taxes and energy bills for eligible businesses.

In a similar move, B.C. provided a three-month break on electricity bills for residents and businesses during the pandemic.

An undetermined amount of the $300 million will also be made available to businesses that are placed under "control" and "lockdown" rules, which are the two most severe restrictions in the province's updated reopening guidelines announced in October.

No regions are currently under these restrictions.

Elsewhere, B.C. saw commercial electricity consumption plummet during the COVID-19 pandemic.

Government to subsidize hydro bills for industrial businesses
The Ford government, which earlier oversaw a Hydro One leadership overhaul, is also taking aim at what it calls "job-killing electricity prices" in Ontario's industrial and commercial sectors.

The budget includes a $1.3 billion investment over three years to subsidize their hydro bills, a move praised by Canadian Manufacturers & Exporters as supportive of industry, which the province says have been inflated due to contracts signed by the previous Liberal government to purchase electricity generated by wind, solar and bioenergy.

"This is the legacy that is making our businesses uncompetitive," Phillips told reporters Thursday afternoon.

Ontario says its $1.3-billion investment to subsidize electricity bills will offset expensive contracts for green energy signed by the previous Liberal government. (Patrick Pleul/dpa via Associated Press)
The investment will lower rates for medium- and large-sized business by between 14 and 16 per cent, and follows an OEB decision on Hydro One rates that affects transmission and distribution costs, according to Ontario's calculations. Phillips said those rates will be among the lowest of any jurisdiction in the Great Lakes region.

The provincial government said the investment is necessary for Ontario to recover from the COVID-19 downturn. The Ford government expects that no further subsidies will be required by around 2040.

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Hitachi UK Nuclear Project Freeze reflects Horizon Nuclear Power's suspended Anglesey plant amid Brexit uncertainty, investor funding gaps, rising safety regulation costs, and a 300 billion yen write-down, impacting Britain's low-carbon electricity plans.

Key Points

Hitachi halted Horizon's Anglesey nuclear plant over funding and Brexit risks, recording a 300 billion yen write-down.

✅ 3 trillion yen UK nuclear project funding stalled

✅ 300 billion yen impairment wipes Horizon asset value

✅ Brexit, safety rules raised costs and investor risk

Japan’s Hitachi Ltd said on Thursday it has decided to freeze a 3 trillion yen ($28 billion) British nuclear power project and will consequently book a write down of 300 billion yen.

The suspension comes as Hitachi’s Horizon Nuclear Power failed to find private investors for its plans to build a plant in Anglesey, Wales, where local economic concerns have been raised, which promised to provide about 6 percent of Britain’s electricity.

“We’ve made the decision to freeze the project from the economic standpoint as a private company,” Hitachi said in a statement.

Hitachi had called on the British government to boost financial support for the project to appease investor anxiety, but turmoil over the country’s impending exit from the European Union limited the government’s capacity to compile plans, people close to the matter previously said.

Hitachi had called on the British government to boost financial support for the project to appease investor anxiety, but turmoil over the country’s impending exit from the European Union and setbacks at Hinkley Point C limited the government’s capacity to compile plans, people close to the matter previously said.

Hitachi had banked on a group of Japanese investors and the British government each taking a one-third stake in the equity portion of the project, the people said. The project would be financed one-third by equity and rest by debt.

The nuclear writedown wipes off the Horizon unit’s asset value, which stood at 296 billion yen as of September-end.

Hitachi stopped short of scrapping the northern Wales project. The company will continue to discuss with the British government on nuclear power, it said.

However, industry sources said hurdles to proceed with the project are high considering tighter safety regulations since a meltdown at Japan’s Fukushima nuclear power plant in 2011 drove up costs, even as Europe’s nuclear decline strains energy planning.

Analysts and investors viewed the suspension as an effective withdrawal and saw the decision as a positive step that has removed uncertainties for the Japanese conglomerate.

Hitachi bought Horizon in 2012 for 696 million pounds ($1.12 billion), fromE.ON and RWE as the German utilities decided to sell their joint venture following Germany’s nuclear exit after the Fukushima accident.

Hitachi’s latest decision further dims Japan’s export prospects, even as some peers pursue UK offshore wind investments to diversify.

Toshiba Corp last year scrapped its British NuGen project after its US reactor unit Westinghouse went bankrupt, while Westinghouse in China reported no major impact, and it failed to sell NuGen to South Korea’s KEPCO.

Mitsubishi Heavy Industries Ltd has effectively abandoned its Sinop nuclear project in Turkey, a person involved in the project previously told Reuters, as cost estimates had nearly doubled to around 5 trillion yen.

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