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Ontario Plans Major Nuclear Refurbishment to Meet Growing Electricity Demand

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Pickering Nuclear Generating Station

From EnergyNow.ca

Ontario Power Generation planning to extend life of aging Pickering Nuclear Generating Station by decades

Ontario Power Generation is moving ahead with a plan to extend the life of the aging Pickering Nuclear Generating Station by decades, as the province tries to secure more electricity supply in the face of increasing demand.

Nuclear big player in getting to Net Zero

“Our province still needs this station and its workers,” he said at a press conference outside the nuclear plant. The construction phase will create about 11,000 jobs, he said, and provide about 6,000 jobs for decades.

OPG plans to spend $2 billion on engineering and design work and securing key components for the project that is expected to be completed in the mid-2030s.

Neither Smith nor OPG officials would give an estimate for how much the entire refurbishment will cost.

“It would be irresponsible at this point in time to put a number out there, because it’s this essential design and scoping and engineering work that is going to get us to the place where we can have a number,” Smith said.

OPG said a refurbishment at its Darlington Nuclear Generating Station is costing $12.8 billion and is on time and on budget.

Ken Hartwick, chief executive of OPG, said the Darlington refurbishment as well as one at Bruce Power will help guide the Pickering life extension.

“We have learned a lot about what it takes to refurbish a nuclear station the right way with thousands of lessons learned from Darlington and Bruce Power that we will apply to Pickering,” Hartwick said.

The four units produce about 2,000 megawatts of electricity, enough to power two million homes.

The Independent Electricity System Operator has said Ontario’s electricity demand is expected to grow by about two per cent each year,  but could be even higher. A promise to build 1.5 million homes by 2031 and several large-scale manufacturing investments such as electric vehicle battery plants are helping to push demand higher.

The province needs more supply particularly starting in the mid-2030s, the IESO has said.

Keith Stewart, a senior energy strategist with Greenpeace Canada, said the price of wind and solar power with battery storage has “dropped like a stone” and should be more central to Ontario’s energy policy.

“Any credible independent cost-benefit analysis would find that we should be investing in the renewable-powered energy system of the future, rather than pouring billions more into rebuilding nuclear reactors long past their best-before date,” he wrote in a statement.

Pickering produces about 14 per cent of the province’s electricity but its current licence to operate the four units in question expires at the end of this year. OPG has asked the Canadian Nuclear Safety Commission to extend that to 2026, but a public hearing for that application has not yet been scheduled.

Green Party Leader Mike Schreiner said Greens understand that nuclear power will continue to be part of the energy mix for decades, but the province also needs much more wind and solar power and no more natural gas generation.

“Instead of attracting jobs and investment in low-cost renewables, the Ford government is making Ontario’s grid dirtier and more expensive by prioritizing dirty fossil gas plants and the costly, poor-performing Pickering plant,” he wrote in a statement.

The IESO announced last month that it is looking to add 2,000 megawatts of non-emitting electricity generation online such as wind, solar, bioenergy and hydro to the system. However, it also says natural gas is still required to ensure supply and stability in the short to medium term, though it will also increase greenhouse-gas emissions from the electricity sector.

Ontario’s electricity system was 94 per cent emissions free in 2020, but today that figure has fallen to 90 per cent.

The nuclear safety commission would still have to approve the Pickering refurbishment.

Two other units at Pickering are also set to stop operating at the end of this year. They are part of what’s known as the A units, which came online in the 1970s and were removed from service in 1997. Two of the units were refurbished and began operating again in 2003 and 2005.

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Economy

Biden signs suicidal ‘No Coal’ pact, while rest of world builds 1,000 new plants

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From Heartland Daily News

By  James Taylor James Taylor

The Biden administration has just signed an economic suicide pact that would require the United States and six other Western democracies to shut down its coal power plants by 2035, while China, India and the rest of the world currently have more than 1,000 new coal power plants in the planning or construction phase. The no-coal pact allows all nations but the Suicidal Seven to continue using as much affordable coal power as they like.

Climate activists often point to China as a climate role model, noting that China manufactures more wind and solar power equipment than any other nation. China, however, isn’t stupid enough to use much of that equipment. Realizing that conventional energy – and especially coal power – is more affordable and reliable than wind and solar power, China manufactures wind and solar equipment, sells the equipment to America and Western Europe, and then powers its own economy primarily with coal power.

In America, government intervention has already caused the shutdown of many coal power plants and the construction of expensive wind and solar projects. In more than half the states, renewable power mandates require a certain percentage of electricity in the state to come from wind or solar. Federal laws and regulations punish coal power at nearly every step of coal mining and utilization. Massive subsidies for wind and solar allow wind and solar providers to charge substantially reduced prices for their product at taxpayers’ expense.

Even with government tipping the scale so heavily in favor of wind and solar power, the so-called green transition is coming with an enormous price tag. According to the U.S. Energy Information Administration, there was a 21 percent increase in wind and solar power since Joe Biden took office in January 2021 through the end of 2023. At the same time, electricity prices also rose by 21 percent. Prior to Biden taking office, the long-term electricity price trend was an increase of approximately 1 percent per year. The green transition has increased the pace of electricity price inflation by 700 percent. And that doesn’t account for all the wind and solar subsidies that are hidden in our tax bills.

There is little reason to believe we are on the verge of a climate crisis. A good resource documenting this good news is ClimateRealism.com. Yet, even if a climate crisis were imminent, unilateral coal disarmament is a foolish way for America to approach carbon dioxide emissions.

Since 2000, the United States has reduced its carbon dioxide emissions more than any other country in the world. U.S. emissions are down 21 percent, while the rest of the world has increased its emissions by 47 percent. Clearly, America “showing leadership” reducing carbon dioxide emissions is leading to nothing other than the rest of the world free license to jack up their own emissions. Even if the United States and the rest of the Suicidal Seven could somehow eliminate all of their emissions, it would have little impact on the global trend.

Ultimately, Biden’s pact to eliminate American coal use will further ramp up inflation. After all, energy is an important cost component in almost every product bought and sold in the economy. In addition to the inflation impact, Biden’s pact will force American businesses into a major competitive disadvantage versus businesses in China, India, and the rest of the world, which will be paying substantially lower energy costs than American businesses.

Under Biden’s plan, we will end up sinking vast economic resources into eliminating coal power and as much carbon dioxide as possible from the American economy. Even then, we will still be looking at global emissions continuing to rise. At that point, Biden’s plan is for America to assume the lion’s share of global “climate reparations” and financial bribes to induce China, India, and the rest of the world to reduce their carbon dioxide emissions. After sabotaging our own economy with higher energy prices, we will literally borrow money from China in order to then bribe China to reduce its carbon dioxide emissions.

It would be hard to think of a crazier domestic energy policy.

James Taylor ([email protected]) is president of The Heartland Institute.

Originally published by The Center Square. Republished with permission.

For more on the U.S. electric power system, click here.

For more on coal, click here.

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Energy

Buckle Up for Summer Blackouts: Wind Is Already Failing Texas in Spring

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From Heartland Daily News

By Jason Isaac

When the wind blows too much, natural gas plants are forced to shut down because they can’t underbid wind producers that can bid zero or negative. But when the wind doesn’t blow when it is needed, wind generators can afford the loss of revenue because they earn so much from tax subsidies.

It’s been all quiet on the electric grid front for a few months — but don’t get your hopes up. Over the last month, electricity prices came near the $5000/MWh regulatory cap three separate times because the wind wasn’t blowing enough when the sun went down.

If this sounds familiar, you’re not wrong.

You may hear from the drive-by media that the problem is unseasonably warm temperatures, or that there are a lot of power plants down for maintenance. But high 80s in April and low 90s in May are not unusual, and the Texas grid used to manage these weather changes with no problems. From 2014 to 2016, real-time prices only went over $1000/MWh twice, but it’s happened three times already this year.

If the grid is already on shaky ground, with many weeks to go before blistering triple-digit temperatures shoot electric demand through the roof, all signs are pointing to an unpleasant summer. 

The problem with the Texas grid is so simple it’s infuriating: Relying too heavily on unpredictable wind and solar, without enough reliable reserve capacity, means higher volatility — leading to higher prices and increasing need for expensive interventions by ERCOT to avoid outages. This is why your electric bill is going up and up even though wind and solar are supposed to be cheap.

While Texas certainly has a lot of sun, peak solar output almost never aligns with peak electric usage. The Lone Star State also has plenty of wind, but wind generation is wildly unpredictable —  by nature. It’s not unusual for a wind generator’s output to swing 60 percentage points or more in a single week.

Take last month, for example. On Tuesday, April 16, electricity prices reached their cap because ERCOT’s day-ahead wind forecast was off by 50%. Five gigawatts of wind we were counting on to power Texas as the sun went down didn’t show up. That was the equivalent of simultaneously shutting down 10 large natural gas units, or all of the state’s nuclear capacity. If the latter occurred, the news media would be up in arms (and rightfully so). But because the culprit was the political darling of both the left and the right, no one heard about it.

ERCOT hasn’t been the best at predicting wind output, and the problem isn’t entirely its fault. Wind veers so wildly between extremes it’s nearly impossible to plan a sustainable grid around its fickleness — yet wind makes up 26% of our generating capacity.

It’s all because lucrative tax breaks and subsidies at the state and federal level, combined with flaws in ERCOT’s market design, make it almost impossible for wind to lose money — and harder than ever for natural gas to compete, even though it’s far more reliable and affordable. When the wind blows too much, natural gas plants are forced to shut down because they can’t underbid wind producers that can bid zero or negative. But when the wind doesn’t blow when it is needed, wind generators can afford the loss of revenue because they earn so much from tax subsidies.

Imagine trying to open a restaurant when your competitor next door is paying its customers to eat there. It’s no wonder natural gas capacity in ERCOT has barely grown over the past decade, and not enough to make up for losses of coal plants, while demand has been steadily increasing.

All those subsidies are hurting our most reliable, affordable energy producers and putting our economy at risk — leaving you and me, the taxpayers on the hook.

While most political issues are far more complex and nuanced than brazen attack ads and headlines would lead you to believe, in this case, it really does boil down to one simple problem.

And it would be easy to solve — if lawmakers are willing to go against the grain of political correctness and set a clear reliability standard for the wind and solar generators that want to connect to our grid.

Unfortunately, that’s a gargantuan “if.”

As a former lawmaker, I understand the pressures our legislators are under to toe the line on alternative energy. Major utilities embracing World Economic Forum- and United Nations-aligned “energy transition” policies that seek to redefine what’s “clean” and what’s “pollution” are making matters worse. And the incessant misinformation from their well-funded lobby that promise rural “economic development” and “cheap energy” sound too good to be true, because they are.

Elected officials don’t serve the lobby. They serve Texans — or, at least, they should.

And Texans want a reliable, affordable grid. They want to not have to worry about losing power in the heat of the summer or the dead of winter. The Legislature must put a stop to these market-distorting subsidies and make reliability, not popularity, the priority for our electric grid.

Gov. Greg Abbott sent a letter on July 6, 2021 to members of the Public Utility Commission of Texas (PUC) directing them to “take immediate action to improve electric reliability across the state.” The second directive was to “Allocate reliability costs to generation resources that cannot guarantee their own availability, such as wind or solar power.” Unfortunately, the PUC hasn’t acted on this directive or even studied it. The costs of scarcity on the grid are estimated to have exceeded $12B in 2023, which is equal to two-thirds of the property tax relief passed in the 88th Legislature, all paid for by ratepayers.

“Unfortunately for Texans, the ERCOT grid is moving from a single grid with gas and coal power plants running efficiently all day to two grids: one for wind and solar and one for expensive backup power that fills in the gaps when there is not enough wind and sun,” says Dr. Brent Bennett, policy director for Life:Powered at the Texas Public Policy Foundation. “Every time these scarcity events occur, whether due to real scarcity or artificial scarcity created by ERCOT’s operating policies, ratepayers are shelling out tens to hundreds of millions of dollars for backup power. It is the most expensive way to operate a grid, and Texans will feel the bite as these costs are absorbed over time.”

The Californication of our grid is unfolding before our eyes. If the Legislature and the PUC don’t act fast, the Texas miracle won’t last.

The Honorable Jason Isaac is CEO of the American Energy Institute and a senior fellow at the Texas Public Policy Foundation. He previously served four terms in the Texas House of Representatives

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