UK gives go-ahead for waste-to-energy CHP plant

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Approval was given to a new power station in Cheshire, England fuelled by waste.

The proposed plant has capacity to potentially take waste from Manchester, Merseyside, Halton, Cheshire and Warrington that would otherwise have gone to landfill.

The decision by Energy Minister Malcolm Wicks allows INEOS Chlor Ltd to construct an energy from waste combined heat and power (CHP) station with a capacity of 100 MW, at Runcorn, Cheshire. He has also given deemed planning permission for the development.

As well as producing energy from waste, this proposal demonstrates the Government's continuing commitment to promote CHP. The usable heat and electricity produced from the power station will be utilised at the INEOS Runcorn Site, a major chemicals manufacturing complex and one of the largest energy users in the UK.

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BOE Says UK Energy Price Guarantee is Key for Next Rates Call

UK Market Stability Outlook remains febrile as the Bank of England, Treasury, and OBR forecasts shape fiscal policy, interest rates, gilt yields, inflation, energy bills, and pound sterling, with Oct. 31 guidance to reassure investors.

 

Key Points

A view of investor confidence as BOE policy, fiscal plans, and energy aid shape inflation and interest rates.

✅ Markets await Oct. 31 fiscal statement and OBR projections

✅ Energy support design drives inflation and disposable income

✅ Pound weakness adds imported inflation; rates seen up 75 bps

 

Bank of England Deputy Governor Dave Ramsden said financial markets are still unsettled about the outlook for the UK and that a Treasury statement due on Oct. 31 may provide some reassurance.

Speaking to the Treasury Committee in Parliament, Ramsden said officials in government and the central bank are dealing with huge economic shocks, notably the surge in energy prices that came with Russia’s attack on Ukraine. Investors are reassessing where interest rates and the fiscal stance are headed.

“Markets remain quite febrile,” Ramsden told members of Parliament in London on Monday. “Things have not settled down yet.”

He described the events following Prime Minister Liz Truss’s ill-fated fiscal statement on Sept. 23, which set out a series of tax cuts funded by borrowing that spooked investors and triggered a rout in UK assets. Ramsden said those events damaged the UK’s credibility among investors, but reversing that program and Truss’s decision to step aside have helped the nation regain confidence.

“Credibility is hard won and easily lost,” Ramsden said. “That credibility is being recovered. That has to be followed through. A return to the kind of stability around policy making and around the framing of fiscal events will be really important.”

He said the issue with the Sept. 23 statement was that “it had one side of the fiscal arithmetic in it” and that the decision to include forecasts from the Office for Budget Responsibility will help underpin the confidence investors have in assessing the UK budget due out next week, including potential moves to end the link between gas and electricity prices for consumers.

“What we are going to get on Oct. 31 will be very important,” Ramsden said, “as it will address measures such as the price cap on household energy bills and other fiscal choices.”

“My sense is that will take account of all the statements on both the revenue and on the spending side.”

The central bank already was getting some information from Chancellor of the Exchequer Jeremy Hunt’s team about the fiscal statement due. Hunt said last week he’d curtail government plans to subsidize household fuel bills in April, when a 16% decrease in energy bills is anticipated, instead of letting it run as long as planned and replace it with a more targeted program. 

“To the extent possible, we will obviously have a little bit of time to take account of that before we make our decisions later next week,” Ramsden said.

With Truss stepping down in the next day and handing power to Rishi Sunak, it isn’t certain the Oct. 31 statement will go ahead as planned. Ramsden’s remarks confirm reports that Hunt is preparing to make the statement, amid a free electricity debate in the industry, even before Sunak names his team.

Any hint about what sort of package Hunt will offer on energy is crucial to the BOE’s forecasts. Without aid for energy, consumers will be exposed to high winter heating and electricity costs and to the full force of whatever happens in natural gas and electricity markets, and that will have a big impact on how much disposable income is available to households.

The energy plan, alongside the energy security bill, “will be a key element, as obviously it will have a bearing on the path for inflation, which is critical, but also how much additional support relative to what we were assuming at the time of the September MPC there will be for households at different points in the income distribution,” Ramsden added.

Investors currently expect the BOE to hike rates by 75 basis points next week.

Ramsden also said the BOE is watching the pound’s decline to assess how that changes the outlook for inflation.

“We have to take account of it,” Ramsden said. “When sterling deprreciaties that feeds through to imported inflation. It’s fallen quite significantly. The overall trend is down.”

 

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Norway Considers Curbing Electricity Exports to Avoid Shortages

Norway Electricity Export Limits weigh hydro reservoirs, energy security, EU-UK interconnectors, and record power prices amid Russia gas cuts; Statnett grid constraints and subsidies debate intensify as reservoir levels fall, threatening winter supply.

 

Key Points

Rules to curb Norway's power exports when reservoirs are very low, protecting supply security and easing extreme prices.

✅ Triggered by low hydro levels and record day-ahead prices

✅ Considers EU/UK cables, Statnett operations, seasonal thresholds

✅ Aims to secure winter supply and expand subsidies

 

Norway, one of Europe’s biggest electricity exporters, is considering measures to limit power shipments to prevent domestic shortages amid surging prices, according to local media reports.

The government may propose a rule to limit exports if the water level for Norway’s hydro reservoirs drops to “very low” levels, to ensure security of supply, said Energy Minister Terje Aasland, according NTB newswire. The limit would take account of seasonality and would differ across the about 1,800 hydro reservoirs, he said. 

Russia’s gas supply cuts in retaliation for European sanctions over the war in Ukraine have triggered the continent’s worst energy crisis in decades, with demand surging for cheap Norwegian hydro electricity. Yet the government faces increasing calls from the public and opposition to limit flows abroad. Prices are near record levels in some parts of the Nordic nation as hydro-reservoir levels have plunged in the south after a drier-than-normal spring. 

The government has been under pressure to do something about exports since before April. Flows on the cables are regulated by deals with both the European Union and the UK energy market and Norway can’t simply cut flows. It’s the latest test of European solidarity and a wake-up call for Europe when it comes to energy supplies. Hungary is trying to ban energy exports after it declared an energy emergency.

Back in May, grid operator Statnett SF warned that Norway could face a strained power situation after less snowfall than usual during the winter. At the end of last week, the level of filling in Norwegian hydro reservoirs was 66.5%, compared with a median 74.9% for the corresponding time in 2002-2021, regulator NVE said. Day-ahead electricity prices in southwest Norway soared to a record 423 euros per megawatt-hour late last month, partly due to bottlenecks in the grid limiting supply from the northern regions.

The grid operator has been asked to present by Oct. 1 possible measures that need to be taken to secure supply and infrastructure security ahead of the winter. Statnett operates cables to the UK and Germany aimed at selling surplus electricity and would likely take a financial hit if curbs were introduced. “Operations of these will always follow current laws and regulations,” Irene Meldal, a company spokeswoman, said Friday by email. 

Premier Jonas Gahr Store signaled his minority government will file proposals that also include more subsidies to families and companies and align with Europe’s emergency price measures during August, according to an interview with TV2 on Thursday. Meanwhile, opposition politicians plan to hold an extraordinary parliament meeting to discuss boosting the subsidies.

Aasland will summon the parties’ representatives to a meeting on Monday on the electricity crisis, the Aftenposten newspaper reported on Friday, without citing anyone. He intends to inform the parties about the ongoing work and aims to “avoid rushed decisions” by the parliamentary majority.

Norway Faces Pressure to Curb Power Exports as Prices Surge (1)

The nation gets almost all of its electricity from its vast hydro resources. Historically, it has been able to export a hefty surplus and still have among the lowest prices in Europe. 
 

 

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TC Energy confirms Ontario pumped storage project is advancing

Ontario Pumped Storage advances as Ontario's largest energy storage project, delivering clean electricity, long-duration capacity, and grid reliability for peak demand, led by TC Energy and Saugeen Ojibway Nation, with IESO review underway.

 

Key Points

A long-duration storage project in Meaford storing clean power for peak demand, supporting Ontario's emission-free grid.

✅ Stores clean electricity to power 1M homes for 11 hours

✅ Partnership: TC Energy and Saugeen Ojibway Nation

✅ Pending IESO review and OEB regulation decisions

 

In a bid to accelerate the province's ambitions for clean economic growth, TC Energy Corporation has announced significant progress in the development of the Ontario Pumped Storage Project. The Government of Ontario in Canada has unveiled a plan to address growing energy needs as a sustainable road map aimed at achieving an emission-free electricity sector, and as part of this plan, the Ministry of Energy is set to undertake a final evaluation of the proposed Ontario Pumped Storage Project. A decision is expected to be reached by the end of the year.

Ontario Pumped Storage is a collaborative effort between TC Energy and the Saugeen Ojibway Nation. The project is designed to be Ontario's largest energy storage initiative, capable of storing clean electricity to power one million homes for 11 hours. As the province strives to transition to a cleaner electricity grid by embracing clean power across sectors, long duration storage solutions like Ontario Pumped Storage will play a pivotal role in providing reliable, emission-free power during peak demand periods.

The success of the Project hinges on the approval of TC Energy's board of directors and a fruitful partnership agreement with the Saugeen Ojibway Nation. TC Energy is aiming for a final investment decision in 2024, as Ontario confronts an electricity shortfall in the coming years, with the anticipated in-service date being in the early 2030s, pending regulatory and corporate approvals.

“Ontario Pumped Storage will be a critical component of Ontario’s growing clean economy and will deliver significant benefits and savings to consumers,” said Corey Hessen, Executive Vice-President and President, TC Energy, Power and Energy Solutions. “Ontario continues to attract major investments that will have large power needs — many of which are seeking zero-emission energy before they invest. We are pleased the government is advancing efforts to recognize the significant role that long duration storage plays — firming resources, including new gas plants under provincial consideration, will become increasingly valuable in supporting a future emission-free electricity system.” 

The Municipality of Meaford also expressed its support for the project, recognizing the positive impact it could have on the local economy and the overall electricity system of Ontario. Additionally, various stakeholders, including LiUNA OPDC, LiUNA Local 183, and the Ontario Chamber of Commerce, lauded the potential for job creation, training opportunities, and resilient energy infrastructure as Ontario seeks new wind and solar power to ease a coming electricity supply crunch.

The timeline for Ontario Pumped Storage's progress includes a final analysis by the Independent Electricity System Operator (IESO) to confirm its role in Ontario's electricity system and in balancing demand and emissions during the transition, to be completed by 30 September 2023. Concurrently, the Ministry of Energy will engage in consultations on the potential regulation of the Project via the Ontario Energy Board, while debates over clean, affordable electricity intensify ahead of the Ontario election, with a final determination scheduled for 30 November 2023.

 

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No time to be silent on NZ's electricity future

New Zealand Renewable Energy Strategy examines decarbonisation, GHG emissions, and net energy as electrification accelerates, expanding hydro, geothermal, wind, and solar PV while weighing intermittency, storage, materials, and energy security for a resilient power system.

 

Key Points

A plan to expand electricity generation, balancing decarbonisation, net energy limits, and energy security.

✅ Distinguishes decarbonisation targets from renewable capacity growth

✅ Highlights net energy limits, intermittency, and storage needs

✅ Addresses materials, GHG build-out costs, and energy security

 

The Electricity Authority has released a document outlining a plan to achieve the Government’s goal of more than doubling the amount of electricity generated in New Zealand over the next few decades.

This goal is seen as a way of both reducing our greenhouse gas (GHG) emissions overall, as everything becomes electrified, and ensuring we have a 100 percent renewable energy system at our disposal. Often these two goals are seen as being the same – to decarbonise we must transition to more renewable energy to power our society.

But they are quite different goals and should be clearly differentiated. GHG emissions could be controlled very effectively by rationing the use of a fossil fuel lockdown approach, with declining rations being available over a few years. Such a direct method of controlling emissions would ensure we do our bit to remain within a safe carbon budget.

If we took this dramatic step we could stop fretting about how to reduce emissions (that would be guaranteed by the rationing), and instead focus on how to adapt our lives to the absence of fossil fuels.

Again, these may seem like the same task, but they are not. Decarbonising is generally thought of in terms of replacing fossil fuels with some other energy source, signalling that a green recovery must address more than just wind capacity. Adapting our lives to the absence of fossil fuels pushes us to ask more fundamental questions about how much energy we actually need, what we need energy for, and the impact of that energy on our environment.

MBIE data indicate that between 1990 and 2020, New Zealand almost doubled the total amount of energy it produced from renewable energy sources - hydro, geothermal and some solar PV and wind turbines.

Over this same time period our GHG emissions increased by about 25 percent. The increase in renewables didn’t result in less GHG emissions because we increased our total energy use by almost 50 percent, mostly by using fossil fuels. The largest fossil fuel increases were used in transport, agriculture, forestry and fisheries (approximately 60 percent increases for each).

These data clearly demonstrate that increasing renewable energy sources do not necessarily result in reduced GHG emissions.

The same MBIE data indicate that over this same time period, the amount of Losses and Own Use category for energy use more than doubled. As of 2020 almost 30 percent of all energy consumed in New Zealand fell into this category.

These data indicate that more renewable energy sources are historically associated with less energy actually being available to do work in society.

While the category Losses and Own Use is not a net energy analysis, the large increase in this category makes the call for a system-wide net energy analysis all the more urgent.

Net energy is the amount of energy available after the energy inputs to produce and deliver the energy is subtracted. There is considerable data available indicating that solar PV and wind turbines have a much lower net energy surplus than fossil fuels.

And there is further evidence that when the intermittency and storage requirements are engineered into a total renewable energy system, the net energy of the entire system declines sharply. Could the Losses and Other Uses increase over this 30-year period be an indication of things to come?

Despite the importance of net energy analysis in designing a national energy system which is intended to provide energy security and resilience, there is not a single mention of net energy surplus in the EA reference document.

So over the last 30 years, New Zealand has doubled its renewable energy capacity, and at the same time increased its GHG emissions and reduced the overall efficiency of the national energy system.

And we are now planning to more than double our renewable energy system yet again over the next 30 years, even as zero-emissions electricity by 2035 is being debated elsewhere. We need to ask if this is a good idea.

How can we expand New Zealand’s solar PV and wind turbines without using fossil fuels? We can’t.

How could we expand our solar PV and wind turbines without mining rare minerals and the hidden costs of clean energy they entail, further contributing to ecological destruction and often increasing social injustices? We can't.

Even if we could construct, deliver, install and maintain solar PV and wind turbines without generating more GHG emissions and destroying ecosystems and poor communities, this “renewable” infrastructure would have to be replaced in a few decades. But there are at least two major problems with this assumed scenario.

The rare earth minerals required for this replacement will already be exhausted by the initial build out. Recycling will only provide a limited amount of replacements.

The other challenge is that a mostly “renewable” energy system will likely have a considerably lower net energy surplus. So where, in 2060, will the energy come from to either mine or recycle the raw materials, and to rebuild, reinstall and maintain the next iteration of a renewable energy system?

There is currently no plan for this replacement. It is a serious misnomer to call these energy technologies “renewable”. They are not as they rely on considerable raw material inputs and fossil energy for their production and never ending replacement.

New Zealand is, of course, blessed with an unusually high level of hydro electric and geothermal power. New Zealand currently uses over 170 GJ of total energy per capita, 40 percent of which is “renewable”. This provides approximately 70 GJ of “renewable” energy per capita with our current population.

This is the average global per capita energy level from all sources across all nations, as calls for 100% renewable energy globally emphasize. Several nations operate with roughly this amount of total energy per capita that New Zealand can generate just from “renewables”.

It is worth reflecting on the 170 GJ of total energy use we currently consume. Different studies give very different results regarding what levels are necessary for a good life.

For a complex industrial society such as ours, 100 GJ pc is said to be necessary for a high levels of wellbeing, determined both subjectively (life satisfaction/ happiness measures), and objectively (e.g. infant mortality levels, female morbidity as an index of population health, access to nutritious food and educational and health resources, etc). These studies do not take into account the large amount of energy that is wasted either through inefficient technologies, or frivolous use, which effective decarbonization strategies seek to reduce.

Other studies that consider the minimal energy needed for wellbeing suggest a much lower level of per capita energy consumption is required. These studies take a different approach and focus on ensuring basic wellbeing is maintained, but not necessarily with all the trappings of a complex industrial society. Their results indicate a level of approximately 20 GJ per capita is adequate.

In either case, we in New Zealand are wasting a lot of energy, both in terms of the efficiency of our technologies (see the Losses and Own Use info above), and also in our uses which do not contribute to wellbeing (think of the private vehicle travel that could be done by active or public transport – if we had good infrastructure in place).

We in New Zealand need a national dialogue about our future. And energy availability is only one aspect. We need to discuss what our carrying capacity is, what level of consumption is sustainable for our population, and whether we wish to make adjustments in either our per capita consumption or our population. Both together determine whether we are on the sustainable side of carrying capacity. Currently we are on the unsustainable side, meaning our way of life cannot endure. Not a good look for being a good ancestor.

The current trajectory of the Government and Electricity Authority appears to be grossly unsustainable. At the very least they should be able to answer the questions posed here about the GHG emissions from implementing a totally renewable energy system, the net energy of such a system, and the related environmental and social consequences.

Public dialogue is critical to collectively working out our future. Allowing the current profit-driven trajectory to unfold is a recipe for disasters for our children and grandchildren.

Being silent on these issues amounts to complicity in allowing short-term financial interests and an addiction to convenience jeopardise a genuinely secure and resilient future. Let’s get some answers from the Government and Electricity Authority to critical questions about energy security.

 

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Hydro One delivery rates go up

Hydro One Rate Hike reflects Ontario Energy Board approval for higher delivery charges, impacting seasonal customers more than residential classes, funding infrastructure upgrades like wood pole and transformer replacements across Ontario's medium-density service areas.

 

Key Points

The Hydro One rate hike is an OEB-approved delivery charge increase to fund upgrades, with impacts on seasonal users.

✅ OEB-approved delivery rate increases retroactive to 2018

✅ Seasonal customers see larger monthly bill impacts than residential

✅ Funds pole, transformer replacements and tree trimming work

 

Hydro One seasonal customers will face bigger increases in their bills than the utility's residential customers as a result of an Ontario Energy Board approval of a rate hike, a topic drawing attention from a utilities watchdog in other provinces as well.

Hydro One received permission to increase its delivery charge, as large projects like the Meaford hydro generation proposal are considered across Ontario, retroactive to last year.

It says it needs the money to maintain and upgrade its infrastructure, including efforts to adapt to climate change, much of which was installed in the 1950s.

The utility is notifying customers that new statements reflect higher delivery rates which were not charged in 2018 and the first half of this year, due to delay in receiving the OEB's permission, similar to delays that can follow an energy board recommendation in other jurisdictions.

The amount that customers' bills will increase by depends not only on how much electricity they use, but also on which rate class they belong to, as well as policy decisions affecting remote connections such as the First Nations electricity line in northern Ontario.

For seasonal customers such as summer cottage owners, the impact on a typical user's bill will be 2.9 per cent more per month for 2018, and 1.7 per cent per month for 2019.

There will be further increases of 1.0 per cent, 1.4 per cent and 1.1 per cent per month in 2020, 2021 and 2022 respectively. 

Typical residential customers will experience smaller increases or rate freezes over the same period.

In the residential medium density class, the rate changes are a 2.0 per cent increase for last year, a decrease of 0.5 per cent this year, and an increase of 0.5 per cent in 2021. There will be no increases in 2020 and 2022.

 

Seasonal Rate Class — Estimated bill impact per month

2018 - 2.9 %

2019 - 1.7%

2020 - 1.0%

2021 - 1.4%

2022 - 1.1%

 

Residential Medium Density Rate Class — Estimated bill impact per month

2018 - 2.0%

2019 - -0.5% decrease

2020 - 0.0%

2021 - 0.5%

2022 - 0.0%

A Hydro One spokesperson told tbnewswatch.com that over the next three years, the utility's upgrading plan includes reliability investments such as replacing more than 24,000 wood poles across the province as well as numerous transformers.

In the Thunder Bay area, the spokesperson said, some of the revenue generated by the higher delivery rates will cover the cost of replacing more than 180 poles and trimming hazardous trees around 3,200 kilometres of overhead power lines while sharing electrical safety tips with customers.

 

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Calgary electricity retailer urges government to scrap overhaul of power market

Alberta Capacity Market Overhaul faces scrutiny over electricity costs, reliability targets, investor certainty, and AESO design, as UCP reviews NDP reforms, renewables integration, and deregulated energy-only alternatives impacting generators, ratepayers, and future power price volatility.

 

Key Points

A shift paying generators for capacity and energy to improve reliability; critics warn of higher electricity costs.

✅ UCP reviewing NDP plan and subsidies amid market uncertainty

✅ AESO cites reliability needs as coal retires, renewables grow

✅ Critics predict overprocurement and premature launch cost spikes

 

Jason Kenney's government is facing renewed pressure to cancel a massive overhaul of Alberta's power market that one player says will needlessly spike costs by hundreds of millions of dollars, amid an electricity sector in profound change today.

Nick Clark, who owns the Calgary-based electricity retailer Spot Power, has sent the Alberta government an open letter urging it to walk away from the electricity market changes proposed by the former NDP government.

"How can you encourage new industry to open up when one of their raw material costs will increase so dramatically?" Clark said. "The capacity market will add more costs to the consumer and it will be a spiral downwards."

But NDP Leader Rachel Notley, whose government ushered in the changes, said fears over dramatic cost increases are unfounded.

"There are some players within the current electricity regime who have a vested interest in maintaining the current situation," Notley said

Kenney's UCP vowed during the recent election to review the current and proposed electricity market options, as the electricity market heads for a reshuffle, with plans to report on its findings within 90 days.

The party also promised to scrap subsidies for renewable power, while ensuring "a market-based electricity system" that emphasizes competition in Alberta's electricity market for consumers.

The New Democrats had opted to scrap the current deregulated power market — in place since the Klein era — after phasing out coal-fired generation and ushering in new renewable power as part of changes in how Alberta produces and pays for electricity under their climate change strategy.

The Alberta Electric System Operator, which oversees the grid, says the province will need new sources of electricity to replace shuttered coal plants and backstop wind and solar generators, while meeting new consumer demand.

After consulting with power companies and investors, the AESO concluded in late 2016 the electricity market couldn't attract enough investment to build the needed power generation under the current model.

The AESO said at the time investors were concerned their revenues would be uncertain once new plants are running. It recommended what's known as a capacity market, which compensates power generators for having the ability to produce electricity, even when they're not producing it.

In other words, producers would collect revenue for selling electricity into the grid and, separately, for having the capacity to produce power as a backstop, ensuring the lights stay on. Power generators would use this second source of income to help cover plant construction costs.

Clark said the complex system introduces unnecessary costs, which he believes would hurt consumers in the end. He said what's preventing investment in the power market is uncertainty over how the market will be structured in the future.

"What investors need to see in this market is price certainty, regulatory ease, and where the money they're putting into the marketplace is not at risk," he said.

"They can risk their own money, but if in fact the government comes in and changes the policy as it was doing, then money stayed away from the province."

Notley said a capacity market would not increase power bills but would avoid big price swings, with protections like a consumer price cap on power bills also debated, while bringing greener sources of energy into Alberta's grid.

"Moving back to the [deregulated] energy-only market would make a lot of money for a few people, and put consumers, both industrial and residential, at great risk."

Clark disagrees, citing Enmax's recent submissions to the Alberta Utilities Commission, in which the utility argues the proposed design of the capacity market is flawed.

In its submissions to the commission, which is considering the future of Alberta's power market, Enmax says the proposed system would overestimate the amount of generation capacity the province will need in the future. It says the calculation could result in Alberta procuring too much capacity.

The City of Calgary-owned utility says this could drive up costs by anywhere from $147 million to $849 million a year. It says a more conservative calculation of future electricity demand could avoid the extra expense.

An analysis by a Calgary energy consulting firm suggests a different feature of the proposed power market overhaul could also lead to a massive spike in costs.

EDC Associates, hired by the Consumers' Coalition of Alberta, argues the proposal to launch the new system in November 2021 may be premature, because it could bring in additional supplies of electricity before they're needed.

The consultant's report, also filed with the Alberta Utilities Commission, estimates the early launch date could require customers to pay 40 per cent more for electricity amid rising electricity prices in the province — potentially an extra $1.4 billion — in 2021/22.

"The target implementation date is politically driven by the previous government," said Duane Reid-Carlson, president of EDC Associates.

Reid-Carlson recommends delaying the launch date by several years and making another tweak: reducing the proposed target for system reliability, which would scale back the amount of power generation needed to backstop renewable sources.

"You could get a result in the capacity market that would give a similar cost to consumers that the [deregulated] energy-only market design would have done otherwise," he said.

"You could have a better risk profile associated with the capacity market that would serve consumers better through lower cost, lower price volatility, and it would serve generators better by giving them better access to capital at lower costs."

The UCP government did not respond to a request for comment.

 

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