Saudi oil minister slams biofuels, favors solar

By Reuters


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Saudi Arabia's oil minister slammed biofuels, saying they did not protect the environment or help supply security, but added solar power had to be considered one of the best clean energy sources.

"Let's be realistic, ethanol and biofuels will not contribute to the protection of the global environment by reducing (carbon dioxide) emissions, they will not increase energy security, nor will they reduce dependency on fossil fuels to any appreciable degree," Ali al-Naimi told an oil conference.

"Biofuels are not the solution," he added.

The rise in biofuel use was largely due to government subsidies, high import taxes and financial favoritism vis-a-vis others, he added.

"That's why we have to look beyond biofuels... and concentrate instead on truly renewable sources of energy," he said, adding that solar power was perhaps the best clean energy source available in all parts of the world.

"It is abundant, clean and available to all," he said.

"There is a great chance to expand its usage to all parts of the world especially in developing countries and to all economic sectors and activities including power generation, manufacturing and so on," Naimi said.

What was needed, he said, was to expand the use of solar energy and to make solar cells more effective to make the transmission of solar power more cost effective.

"For our part we are giving that sort of energy special attention," he added.

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Hydro One shares jump 5.7 per cent after U.S. regulators reject $6.7B takeover

Hydro One Avista takeover rejection signals Washington regulators blocking a utility acquisition over governance risk, EPS dilution, and balance sheet impact, as investors applaud share price gains and a potential US$103M break fee.

 

Key Points

A regulator-led block of Hydro One's Avista bid, citing EPS dilution, balance sheet risk, and governance concerns.

✅ Washington denies approval; Idaho, Oregon decisions pending.

✅ EPS dilution avoided; balance sheet strength preserved.

✅ Shares rise 5.7%; US$103M break fee if deal collapses.

 

Opposition politicians may not like it but investors are applauding the rejection of Hydro One Ltd.'s $6.7-billion Avista takeover of U.S.-based utility Avista Corp.

Shares in the power company controlled by the Ontario government, which has also proposed a bill redesign to simplify statements, closed at $21.53, up $1.16 or 5.7 per cent, on the Toronto Stock Exchange on Thursday.

On Wednesday, Washington State regulators said they would not allow Ontario's largest utility to buy Avista over concerns about political risk that the provincial government, which owns 47 per cent of Hydro One's shares, might meddle in Avista's operations.

Financial analysts had predicted investors would welcome the news because the deal, announced in July 2017, would have eroded earnings per share and weakened Hydro One's balance sheet.

"The Washington regulator's denial of Avista is a positive development for the shares, in our opinion," said analyst Ben Pham of BMO Capital Markets in a report on Wednesday.

"While this may sound odd, we note that the Avista deal is expected to be EPS dilutive and result in a weaker balance sheet for (Hydro One). Not acquiring Avista and refocusing its attention on its core Ontario franchise ... along with related interprovincial arrangements such as the Ontario-Quebec electricity deal under discussion would likely be viewed positively if the deal ultimately breaks."

Decisions are yet to come from Idaho and Oregon state regulators, but Washington was probably the most important as the state contains customers making up about 60 per cent of Avista's rate base, Pham said.

He pointed out that a US$103-million break fee is to be paid to Avista if the deal collapses due to a failure to obtain regulatory approval.

CIBC analyst Robert Catellier raised his 12-month Hydro One target price by 25 cents and said many shareholders will feel "relieved" that the deal had failed.

He warned that the company's earnings power could deteriorate as the province seeks to reduce power bills by 12 per cent, despite an Ontario-Quebec hydro deal that may not lower costs.

 

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New Texas will bill electric vehicle drivers an extra $200 a year

Texas EV Registration Fee adds a $200 annual charge under Senate Bill 505, offsetting lost gasoline tax revenue to the State Highway Fund, impacting electric vehicle owners at registration and renewals across Texas.

 

Key Points

A $200 yearly charge on electric vehicles to replace lost gasoline tax revenue and support Texas Highway Fund road work.

✅ $200 due at registration or renewal; $400 upfront on new EVs.

✅ Enacted by Senate Bill 505 to offset lost gasoline tax revenue.

✅ Advocates propose mileage-based fees; limited $2,500 rebates exist.

 

Plano resident Tony Federico bought his Tesla five years ago in part because he hated spending lots of money on gas, and Supercharger billing changes have also influenced charging expenses. But that financial calculus will change slightly on Sept. 1, when Texas will start charging electric vehicle drivers an additional fee of $200 each year.

“It just seems like it’s arbitrary, with no real logic behind it,” said Federico, 51, who works in information technology. “But I’m going to have to pay it.”

Earlier this year, state lawmakers passed Senate Bill 505, which requires electric vehicle owners to pay the fee when they register a vehicle or renew their registration, even as fights for control over charging continue among utilities, automakers and retailers. It’s being imposed because lawmakers said EV drivers weren’t paying their fair share into a fund that helps cover road construction and repairs across Texas.

The cost will be especially high for those who purchase a new electric vehicle and have to pay two years of registration, or $400, up front.

Texas agencies estimated in a 2020 report that the state lost an average of $200 per year in federal and state gasoline tax dollars when an electric vehicle replaced a gas-fueled one. The agencies called the fee “the most straightforward” remedy.

Gasoline taxes go to the State Highway Fund, which the Texas Department of Transportation calls its “primary funding source.” Electric vehicle drivers don’t pay those taxes, though, because they don’t use gasoline.

Still, EV drivers do use the roads. And while electric vehicles make up a tiny portion of cars in Texas for now, that fraction is expected to increase, raising concerns about state power grids in the years ahead.

Many environmental and consumer advocates agreed with lawmakers that EV drivers should pay into the highway fund but argued over how much, and debates over fairer vehicle taxes are surfacing abroad as well.

Some thought the state should set the fee lower to cover only the lost state tax dollars, rather than both the state and federal money, because federal officials may devise their own scheme. Others argued the state should charge nothing because EVs help reduce greenhouse gas emissions that drive climate change and can offer budget benefits for many owners.

“We urgently need to get more electric vehicles on the road,” said Luke Metzger, executive director of Environment Texas. “Any increased fee could create an additional barrier for Texans, and particularly more moderate- to low-income Texans, to make that transition.”

Tom “Smitty” Smith, the executive director of the Texas Electric Transportation Resources Alliance, advocated for a fee based on how many miles a person drove their electric car, which would better mirror how the gas taxes are assessed.

Texas has a limited incentive that could offset the cost: It offers rebates of up to $2,500 for up to 2,000 new hydrogen fuel cell, electric or hybrid vehicles every two years. Adrian Shelley, Public Citizen’s Texas office director, recommended that the state expand the rebates, noting that state-level EV benefits can be significant.

In the Houston area, dealer Steven Wolf isn’t worried about the fee deterring potential customers from buying the electric Ford F-150 Lightning and Mustang Mach-E vehicles he sells. Electric cars are already more expensive than comparable gasoline-fueled cars, and charging networks compete for drivers, he said.

 

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Clean, affordable electricity should be an issue in the Ontario election

Ontario Electricity Supply Gap threatens growth as demand from EVs, heat pumps, industry, and greenhouses surges, pressuring the grid and IESO to add nuclear, renewables, storage, transmission, and imports while meeting net-zero goals.

 

Key Points

The mismatch as Ontario's electricity demand outpaces supply, driven by electrification, EVs, and industrial growth.

✅ Demand growth from EVs, heat pumps, and electrified industry

✅ Capacity loss from Pickering retirement and Darlington refurb

✅ Options: SMRs, renewables, storage, conservation, imports

 

Ontario electricity demand is forecast to soon outstrip supply as it confronts a shortage in the coming years, a problem that needs attention in the upcoming provincial election.

Forecasters say Ontario will need to double its power supply by 2050 as industries ramp up demand for low-emission clean power options and consumers switch to electric vehicles and space heating. But while the Ford government has made a flurry of recent energy announcements, including a hydrogen project at Niagara Falls and an interprovincial agreement on small nuclear reactors, it has not laid out how it intends to bulk up the province’s power supply.

“Ontario is entering a period of widening electricity shortfalls,” says the Ontario Chamber of Commerce. “Having a plan to address those shortfalls is essential to ensure businesses can continue investing and growing in Ontario with confidence.”

The supply and demand mismatch is coming because of brisk economic growth combined with increasing electrification to balance demand and emissions and meet Canada’s goal to reduce CO2 emissions by 40 per cent by 2030 and to net-zero by 2050.

Hamilton’s ArcelorMittal Dofasco and Algoma Steel in Sault Ste. Marie are leaders on this transformation. They plan to replace their blast furnaces and basic oxygen furnaces later this decade with electric arc furnaces (EAFs), reducing annual CO2 emissions by three million tonnes each.


Dofasco, which operates an EAF that is already the single largest electricity user in Ontario, plans to build a second EAF and a gas-fired ironmaking furnace, which can also be powered with zero-carbon hydrogen produced from electricity, once it becomes available.

Other new projects in the agriculture, mining and manufacturing sectors are also expected to be big power users, including the recently announced $5 billion Stellantis-LG electric vehicle battery plant in Windsor. Five new transmission lines will be built to service the plant and the burgeoning greenhouse industry in southwestern Ontario. The greenhouses alone will require enough additional electricity to power a city the size of Ottawa.

On top of these demands, growing numbers of Ontario drivers are expected to switch to electric vehicles and many homeowners and business owners are expected to convert from gas heating to heat pumps and electric heating.

Ontario is recognized as one of the cleanest electricity systems in the world, with over 90 per cent of its capacity from low-emission nuclear, hydro, wind and other renewable generation. Only nine per cent comes from CO2-emitting gas plants. But that’s about to get dirtier according to analysts.

Annual electricity demand is expected to grow from 140 terawatt hours (a terawatt hour is one trillion watts for one hour) currently to about 200 terawatt hours in 2042, according to the Independent Electricity System Operator, the agency that manages Ontario’s grid.

Demand is expected to outstrip currently contracted supply in 2026, reaching a growing supply gap of about 80 terawatt hours by 2042. A big part of this gap is due to the scheduled retirement of the Pickering nuclear station in 2025 and the current refurbishment of the Darlington nuclear station reactors. While the IESO doesn’t expect blackouts or brownouts, it forecasts the province will need to sharply increase expensive power imports and triple the amount of CO2-polluting gas-fired generation.

Without cleaner, lower-cost alternatives, this will mean “a vastly dirtier and more expensive electricity system,” York University researchers Mark Winfield and Collen Kaiser said in a recent commentary.

The party that wins the provincial election will have to make hard decisions on renewable energy, including new wind and solar projects, energy conservation, battery storage, new hydro plants, small nuclear reactors, gas generation and power imports from the U.S. and Quebec. In addition, the federal government is pressing the provinces to meet a new net-zero clean electricity standard by 2035. These decisions will have huge impact on Ontario’s future, with greening the grid costs highlighted in some reports as potentially very high.

With so much at stake, Ontario’s political parties need to tell voters during the upcoming campaign how they would address these enormous challenges.

 

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Is a Resurgence of Nuclear Energy Possible in Germany?

Germany Nuclear Phase-Out reflects a decisive energy policy shift, retiring reactors as firms shun new builds amid high costs, radioactive waste challenges, climate goals, insurance gaps, and debate over small modular reactors and subsidies.

 

Key Points

Germany's policy to end nuclear plants and block new builds, emphasizing safety, waste, climate goals, and viability.

✅ Driven by safety risks, waste storage limits, and insurance gaps

✅ High capital costs and subsidies make new reactors uneconomic

✅ Political debate persists; SMRs raise cost and proliferation concerns

 

A year has passed since Germany deactivated its last three nuclear power plants, marking a significant shift in its energy policy.

Nuclear fission once heralded as the future of energy in Germany during the 1960s, was initially embraced with minimal concern for the potential risks of nuclear accidents. As Heinz Smital from Greenpeace recalls, the early optimism was partly driven by national interest in nuclear weapon technology rather than energy companies' initiatives.

Jochen Flasbarth, State Secretary in the Ministry of Development, reflects on that era, noting Germany's strong, almost naive, belief in technology. Germany, particularly the Ruhr region, grappled with smog-filled skies at that time due to heavy industrialization and coal-fired power plants. Nuclear energy presented a "clean" alternative at the time.

This sentiment was also prevalent in East Germany, where the first commercial nuclear power plant came online in 1961. In total, 37 nuclear reactors were activated across Germany, reflecting a widespread confidence in nuclear technology.

However, the 1970s saw a shift in attitudes. Environmental activists protested the construction of new power plants, symbolizing a generational rift. The 1979 Three Mile Island incident in the US, followed by the catastrophic Chornobyl disaster in 1986, further eroded public trust in nuclear energy.

The Chornobyl accident, in particular, significantly dampened Germany's nuclear ambitions, according to Smital. Post-Chernobyl, plans for additional nuclear power plants in Germany, once numbering 60, drastically declined.

The emergence of the Green Party in 1980, rooted in anti-nuclear sentiment, and its subsequent rise to political prominence further influenced Germany's energy policy. The Greens, joining forces with the Social Democrats in 1998, initiated a move away from nuclear energy, facing opposition from the Christian Democrats (CDU) and Christian Social Union (CSU).

However, the Fukushima disaster in 2011 prompted a policy reversal from CDU and CSU under Chancellor Angela Merkel, leading to Germany's eventual nuclear phase-out in March 2023, after briefly extending nuclear power amid the energy crisis.

Recently, the CDU and CSU have revised their stance once more, signaling a potential U-turn on the nuclear phaseout, advocating for new nuclear reactors and the reactivation of the last shut-down plants, citing climate protection and rising fossil fuel costs. CDU leader Friedrich Merz has lamented the shutdown as a "black day for Germany." However, these suggestions have garnered little enthusiasm from German energy companies.

Steffi Lemke, the Federal Environment Minister, isn't surprised by the companies' reluctance, noting their longstanding opposition to nuclear power, which she argues would do little to solve the gas issue in Germany, due to its high-risk nature and the long-term challenge of radioactive waste management.

Globally, 412 reactors are operational across 32 countries, even as Europe is losing nuclear power during an energy crunch, with the total number remaining relatively stable over the years. While countries like China, France, and the UK plan new constructions, there's a growing interest in small, modern reactors, which Smital of Greenpeace views with skepticism, noting their potential military applications.

In Germany, the unresolved issue of nuclear waste storage looms large. With temporary storage facilities near power plants proving inadequate for long-term needs, the search for permanent sites faces resistance from local communities and poses financial and logistical challenges.

Environment Minister Lemke underscores the economic impracticality of nuclear energy in Germany, citing prohibitive costs and the necessity of substantial subsidies and insurance exemptions.

As things stand, the resurgence of nuclear power in Germany appears unlikely, with economic factors playing a decisive role in its future.

 

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Electric shock: China power demand drops as coronavirus shutters plants

China Industrial Power Demand 2020 highlights COVID-19 disruption to electricity consumption as factory output stalls; IHS Markit estimates losses equal to Chile's usage, impacting thermal coal, LNG, and Hubei's industrial load.

 

Key Points

An analysis of COVID-19's hit to China's electricity use, cutting industry demand and fuel needs for coal and LNG.

✅ 73 billion kWh loss equals Chile's annual power use

✅ Cuts translate to 30m tonnes coal or 9m tonnes LNG

✅ Hubei peak load 21 percent below plan amid shutdowns

 

China’s industrial power demand in 2020 may decline by as much as 73 billion kilowatt hours (kWh), according to IHS Markit, as the outbreak of the coronavirus has curtailed factory output and prevented some workers from returning to their jobs.

FILE PHOTO: Smoke is seen from a cooling tower of a China Energy ultra-low emission coal-fired power plant during a media tour, in Sanhe, Hebei province, China July 18, 2019. REUTERS/Shivani Singh
The cut represents about 1.5% of industrial power consumption in China. But, as the country is the world’s biggest electricity consumer and analyses of China's electricity appetite routinely underscore its scale, the loss is equal to the power used in the whole of Chile and it illustrates the scope of the disruption caused by the outbreak.

The reduction is the energy equivalent of about 30 million tonnes of thermal coal, at a time when China aims to reduce coal power production, or about 9 million tonnes of liquefied natural gas (LNG), IHS said. The coal figure is more than China’s average monthly imports last year while the LNG figure is a little more than one month of imports, based on customs data.

China has tried to curtail the spread of the coronavirus that has killed more than 1,400 and infected over 60,000 by extending the Lunar New Year holiday for an extra week and encouraging people to work from home, measures that contributed to a global dip in electricity demand as well.

Last year, industrial users consumed 4.85 trillion kWh electricity, accounting for 67% of the country’s total, even as India's electricity demand showed sharp declines in the region.

Xizhou Zhou, the global head of power and Renewables at IHS Markit, said that in a severe case where the epidemic goes on past March, China’s economic growth will be only 4.2% during 2020, down from an initial forecast of 5.8%, while power consumption will climb by only 3.1%, down from 4.1% initially, even as power cuts and blackouts raise concerns.

“The main uncertainty is still how fast the virus will be brought under control,” said Zhou, adding that the impact on the power sector will be relatively modest from a full-year picture in 2020, even though China's electric power woes are already clouding solar markets.

In Hubei province, the epicenter of the virus outbreak, the peak power load at the end of January was 21% less than planned, mirroring how Japan's power demand was hit during the outbreak, data from Wood Mackenzie showed.

Industrial operating rates point to a firm reduction in power consumption in China.

Utilization rates at plastic processors are between 30% and 60% and the low levels are expected to last for another two week, according to ICIS China.

Weaving machines at textile plants are operating at below 10% of capacity, the lowest in five years, ICIS data showed. China is the world’s biggest textile and garment exporter.

 

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Idaho gets vast majority of electricity from renewables, almost half from hydropower

Idaho Renewable Energy 2018 saw over 80% in-state utility-scale power from hydropower, wind, solar, biomass, and geothermal, per EIA, with imports declining as Snake River Plain resources and Hells Canyon hydro lead.

 

Key Points

Idaho produced over 80% in-state power from renewables in 2018, led by hydropower, wind, solar, and biomass.

✅ Hydropower supplies about half of capacity; Hells Canyon leads.

✅ Wind provides nearly 20% of capacity along the Snake River Plain.

✅ Utility-scale solar surged since 2016; biomass and geothermal add output.

 

More than 80% of Idaho’s in-state utility-scale electricity generation came from renewable resources in 2018, behind only Vermont, according to recently released data from the U.S. Energy Information Administration’s Electric Power Monthly and broader trends showing that solar and wind reached about 10% of U.S. generation in the first half of 2018.

Idaho generated 17.4 million MWh of electricity in 2018, of which 14.2 million MWh came from renewable sources, while nationally January power generation jumped 9.3% year over year according to EIA. Idaho uses a variety of renewable resources to generate electricity:

Hydroelectricity. Idaho ranked seventh in the U.S. in electricity generation from hydropower in 2018. About half of Idaho’s electricity generating capacity is at hydroelectric power plants, and utility actions such as the Idaho Power settlement could influence future resource choices, and seven of the state’s 10 largest power plants (in terms of electricity generation) are hydroelectric facilities. The largest privately owned hydroelectric generating facility in the U.S. is a three-dam complex on the Snake River in Hells Canyon, the deepest river gorge in North America.

Wind. Nearly one-fifth of Idaho’s electricity generating capacity and one-sixth of its generation comes from wind turbines. Idaho has substantial wind energy potential, and nationally the EIA expects solar and wind to be larger sources this summer, although only a small percentage of the state's land area is well-suited for wind development. All of the state’s wind farms are located in the southern half of the state along the Snake River Plain.

Solar. Almost 5% of Idaho’s electricity generating capacity and 3% of its generation come from utility-scale solar facilities, and nationally over half of new capacity in 2023 will be solar according to projections. The state had no utility-scale solar generation as recently as 2015. Between 2016 and 2017, Idaho’s utility-scale capacity doubled and generation increased from 30,000 MWh to more than 450,000 MWh. Idaho’s small-scale solar capacity also doubled since 2017, generating 33,000 MWh in 2018.

Biomass. Biomass-fueled power plants account for about 2% of the state’s utility-scale electricity generating capacity and 3% of its generation, contributing to a broader U.S. shift where 40% of electricity came from non-fossil sources in 2021. Wood waste from the state’s forests is the primary fuel for these plants.

Geothermal. Idaho is one of seven states with utility-scale geothermal electricity generation. Idaho has one 18-MW geothermal facility, located near the state’s southern border with Utah.

EIA says Idaho requires significant electricity imports, totaling about one-third of demand, to meet its electricity needs. However, Idaho’s electricity imports have decreased over time, and Georgia's recent import levels illustrate how regional dynamics can vary. Almost all of these imports are from neighboring states, as electricity imports from Canada accounted for less than 0.1% of Idaho’s total electricity supply in 2017.

 

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