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What doubling the grid really means

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From the Frontier Centre for Public Policy

By Brian Zinchuk

” imagine if someone said in the next 25 years and 11 months, we must twin every single freeway, highway, grid road, street and alleyway, across the entire country, at the same time. And along the way, we have to replace up to 89 per cent of the existing infrastructure, as well, because it is no longer considered adequate “

Recently my daughter called me while on her way back from a Costco run in Regina, heading home to Weyburn.

She noted that it appears they are twinning the highway between Regina and Weyburn. Indeed, they are, I explained. And several years later, they’ll probably get it all the way to Weyburn. Maybe by the time I retire, if I live that long, they’ll get as far as Estevan.

Indeed, those timelines are likely pretty close to reality, if the twinning of Highway 16, from Saskatoon to Lloydminster, was any indication. I used to drive from Saskatoon to North Battleford to get the newspaper I was working for printed, with road construction for much of that. And it took several more years to complete the Battlefords to Lloydminster portion. I was fortunate enough to be present at the ceremony for that. It was significant enough that Premier Lorne Calvert came out.

Twinning a major highway is a substantial undertaking. Historically, Saskatchewan could usually only afford to work on three separate areas at a time, typically doing 20 kilometres per year in each stretch. That was all the provincial finances could handle.

By adding an additional two lanes, you are effectively doubling the capacity of that major piece of infrastructure. It’s not easy, not cheap, and not fast.

Now imagine if someone said in the next 25 years and 11 months, we must twin every single freeway, highway, grid road, street and alleyway, across the entire country, at the same time. And along the way, we have to replace up to 89 per cent of the existing infrastructure, as well, because it is no longer considered adequate.

You’d probably think they were living in a dreamland, or quite possibly stark raving mad.

And yet this is precisely what the federal government is proposing, nay, demanding, of Canadians from St. Johns to Victoria to Tuktoyaktuk.

In order to save the world from anthropogenic (manmade climate change) and attain a “Net Zero by 2050” economy, we must increase the size of the electrical grid by a factor of 2.5x. And for Saskatchewan and Alberta, who on any given day get up to 88 and 94 per cent of their power, respectively, from fossil fuels, they must also replace that existing gas and coal power generation with non-emitting sources, at the same time as they’re building out the truly massive expansion.

The first reference I saw of the federal Liberal government’s intentions of this was in the 2023 budget, which noted expanding the electrical grid by a factor of 2.2 to 3.4 times. By August, when they released the proposed Clean Electricity Regulations, the government seemed to settle on a factor of 2.5 times for the high demand scenario.

So in the highway twinning example, that would be adding three lanes, not two, to every two lane highway, grid road, street and alleyway. For an existing four lane highway, you would need to add six lanes. For a six lane freeway like Ontario’s 401, you’d need to add an additional nine lanes, finding the right of way space, concrete, rebar, gravel, and asphalt for all of this. Again, all at the same time, in 25 years and 11 months.

There are several thrusts that the federal government is pushing. First, by 2035, they want to totally eliminate gasoline and diesel from new light vehicle sales. There’s currently only eight retail hydrogen fueling stations listed by the federal government and Shell in the entire country. There could be more, but they’re not listed. Realistically this means battery-powered electric vehicles (EVs). But nearly all of those EVs will require charging at home each night (and especially during winter, pre-conditioning those batteries, keeping them warm).

So every residence in the country will require 30 amp chargers for cars, and 80 amp chargers for pickups.

But the government is also now moving away from fossil fuels for home, heating, too. This was indicative of Prime Minister Justin Trudeau’s pause on the carbon tax for home heating oil (primarily used in Atlantic Canada, although I grew up in a house with that system). To do so, the feds are offering “free” installations of heat pumps (which are wholly inadequate at -30 temperatures, let alone the -44 seen in Alberta in mid-January). And those could be up to another 50 amps, per heat pump.

And that’s just residential, never mind commercial or industrial.

The Clean Electricity Regulations are meant to force fossil fuel power generation to go away. And since wind frequently drops to nothing, and the sun goes down every day, the only real alternative is massive expansion of nuclear power across Canada. We’re talking small modular reactors by the dozen in Alberta, Saskatchewan, and to a lesser extent, Nova Scotia and New Brunswick.

On Jan. 30, SaskPower announced a formalized agreement with General Electric-Hitachi for small modular reactors. But when I asked how many they plan on building, the CEO wouldn’t say. But he did speak of increasing the provincial grid from 5,400 megawatt now to 13,000 to 15,000 megawatts.

Hydro Quebec just released their plans to double their grid. Yet, perhaps miraculously, they’re not saying how many, if any, new dams will need to be built.

This doubling of the grid (actually 2.5x, but that’s not easy to say), means we’re going to need not only additional generation, but transmission lines, distribution lines, back alley pedestals, and wiring to every home, business and factory in the country. Where the materials come from? The contractors and workers? Will Not In My Back Yard (NIMBY) be universally trampled on by eminent domain orders, for the good of the planet? Or will it be a continuation of Build Absolutely Nothing Anywhere Near Anything Syndrome (BANANAS)?

A very real example is the Trans Mountain Pipeline. The original was built in something like 16 months, from scratching dirt to oil flowing. The expansion is taking a hell of a lot longer. Work started in 2018, and it is still not done. Any change in the plan had to go back to the Canadian Energy Regulator. Some First Nations fought it every step of the way.

Now do this for every single piece of existing power infrastructure. Wrap your head around that for a minute.

This supposed energy transition, from fossil fuels to electric everything, does not work if you cannot build out the electrical infrastructure, everywhere, and essentially all at in the next 25 years and 11 months. Either the timelines need to be stretched to a generational scale, or more realistically, the whole concept needs to be entirely rethought.

As Saskatchewan Premier Scott Moe has said more than once, “We will not attempt the impossible  when it comes to power production.”

 

Brian Zinchuk is editor and owner of Pipeline Online, and occasional contributor to the Frontier Centre for Public Policy. He can be reached at [email protected].

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Economy

Oil Lobby Working With Republicans Behind-The-Scenes To Push ‘Gateway’ To Carbon Tax

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From the Daily Caller News Foundation

By NICK POPE

 

America’s leading oil and gas trade group is working behind the scenes with moderate House Republicans to push support for a bill that critics say could lead to a domestic carbon tax, according to an email obtained by the Daily Caller News Foundation and sources familiar with the matter.

On May 14, Chris Boness, the director of federal relations for the American Petroleum Institute (API), sent an email to an API mailing list that named several House lawmakers intending to co-sponsor the PROVE IT Act alongside Republican Utah Rep. John Curtis. The trade group has also met with staffers to try to secure support for the bill, which API supports, according to sources familiar with the matter.

Assuming the House version is the same as the already-introduced Senate version, the bill would instruct the Department of Energy (DOE) to study the carbon intensity of goods — including aluminum, steel, plastic and crude oil — produced in the U.S. and the carbon intensity of products from other countries, according to E&E News.

Dozens of the PROVE IT Act’s critics have described the bill as a possible “gateway” to domestic carbon taxes because it would effectively instruct the federal government to calculate an implicit cost of carbon with few restrictions on how that official metric is used in the future.

“Thanks for those that joined today’s meeting,” Boness wrote in the email obtained by the DCNF. “Here is the list of current [Republican] cosponsors of the PROVE IT Act: Curtis, [Michigan Rep. Tim] Walburg (sic), [Ohio Rep. Bob] Latta, [New York Rep. Andrew] Garbarino, [Florida Rep. Maria Elvira] Salazar, [Michigan Rep. Mariannette] Miller-Meeks, [Indiana Rep. Larry] Bucshon, [Oregon Rep. Lori] Chavez-DeRemer. Additionally, [Georgia Rep. Buddy] Carter, [New York Rep. Mike] Lawler and [Pennsylvania Rep. Dan] Meuser seemed interested. Will keep you updated if others join and send updates on introduction.”

API representatives have had meetings addressing the PROVE IT Act with lawmakers’ offices, sources familiar with the matter told the DCNF. The offices of Curtis, Walberg, Latta, Garbarino, Salazar, Miller-Meeks, Bucshon and Chavez-DeRemer did not respond to questions about why they apparently support the bill.

Carbon pricing is broadly unpopular with Republicans, according to E&E News. Generally, polling indicates that Republicans do not consider climate change to be a problem in need of major government-led solutions and that energy affordability, for example, is a much stronger concern.

API Email re: PROVE IT Act by Nick Pope on Scribd

 

The bill’s proponents tout it as a measure to reward American companies for producing products more cleanly than foreign competitors, but opponents are strongly concerned that the bill instructs the federal government to effectively set a price on carbon with insufficient restrictions what the government can do in the future.

Notably, Republican West Virginia Sen. Shelley Moore Capito introduced an amendment to the Senate version that would prevent the data collected from being used as the basis for carbon taxes or tariffs, but Democrats killed that proposal while the bill sat in the Senate Environment and Public Works Committee.

Despite concerns from those opposed to the bill that it could be a first step to carbon taxes or tariffs, API supports the PROVE IT Act. Notably, API is in favor of carbon pricing.

“America’s oil and natural gas is produced under some of the highest environmental standards in the world,” a spokesperson for API told the DCNF. “Efforts like the PROVE IT Act are bipartisan opportunities to help study and quantify that advantage and demonstrate our industry’s commitment to producing cleaner, safer, and more affordable energy here at home while still supplying the energy our world needs.”

Some of the lawmakers API suggested could be interested in co-sponsoring the PROVE IT Act are wary, however.

Rep. Meuser, whose district includes energy-rich parts of Pennsylvania, is opposed to the bill as it stands, despite API’s suggestion that he is potentially interested in supporting it, a source familiar with Meuser’s thinking told the DCNF.

Rep. Carter is skeptical of policies that could lead to a carbon tax.

“Mr. Carter is reviewing the legislation,” a spokesperson for Carter told the DCNF. “He is absolutely opposed to anything that could lead to a carbon tax.”

In the eyes of those opposed to the bill, the PROVE IT Act would make it easier for a second-term Biden administration to pursue carbon taxes or tariffs that would hurt American consumers and certain types of energy producers.

“Our opposition to the PROVE IT Act is clear and concise. The latest attempt by some in Congress who are trying to create a structure that would lead to a domestic carbon tax will have price implications on our energy, particularly our fuel,” Tom Pyle, president of the American Energy Alliance, told the DCNF. “I do think that it is important to recognize that John Podesta made it clear that this is a second term agenda item for the Biden administration. And why would any Republican want to be the lead on helping President Biden further his war on affordable energy?”

Mike McKenna, a GOP strategist with extensive experience in the energy sector, expressed a similar view.

“The big problem with the bill is that it creates infrastructure to impose a carbon dioxide tax,” McKenna told the DCNF. “As everyone who has had more than ten seconds of exposure to the federal government knows, once that infrastructure can be put in place, it’s going to be used.”

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Energy

Fossil fuels not going away anytime soon

Published on

From the Fraser Institute

By Jock Finlayson

At a time of persistent cost of living pressures and mounting worldwide geopolitical tension, it’s not surprising that energy issues are in the spotlight in Canada and beyond.

Earlier this year, the Trudeau government decided to freeze its carbon tax for home heating fuels in Atlantic Canada in the face of ferocious opposition to further tax hikes from premiers, local communities and MPs in the region. Smart politicians understand that Canadians today are attuned as never before to energy prices, including fuel prices at the pump.

With policymakers in Canada and elsewhere also preoccupied with climate change, we are exposed to sharply conflicting narratives about the future of energy. In one corner are those who spy a rapid and epic shift away from the fossil fuels that still supply 80 per cent of the world’s energy. In the other corner are skeptics who doubt that the dominant place of fossil fuels in the energy system will soon disappear.

As the debate continues, the U.S. Energy Information Administration (EIA) is an important source of well-grounded information. It provides regular updates on trends in energy supply and demand, both in the United States and globally. EIA forecasts deserve attention given the agency’s solid track record of predicting energy market developments.

On crude oil prices, the EIA now believes the main U.S. benchmark price will hover between US$85 and $90 per barrel over 2024-25. That’s good news for Canada, as crude oil ranks as our number one export. In its May 2024 market update, the EIA observes that “the startup of the Trans Mountain pipeline expansion… will alleviate existing distribution bottlenecks and allow for a gradual increase in oil production.”  While one would never know it from scanning federal government news releases, Canadian oil production and export volumes are set to climb over the rest of the decade. And Canada’s energy-based export earnings will also receive a sizable boost once shipments of liquified natural gas (LNG) commence from LNG projects nearing completion in British Columbia.

Meanwhile, the EIA sees global oil consumption increasing further, after dipping briefly during the pandemic, reaching 105 million barrels per day by 2026.

Globally, there’s little evidence that consumers are turning away from petroleum and other liquid fuels, contrary to the claims of some Canadian politicians and environmental groups. Amid endless chatter about energy transitions and governments allocating gargantuan sums to an expanding hodgepodge of programs to reduce greenhouse gas (GHG) emissions, the world collectively still depends on oil and other carbon-based fuels for the vast majority of its energy.

None of this is surprising. The “dense” energy provided by fossil fuels is greatly valued by consumers and remains difficult to replace with other primary energy sources. Fossil fuels have played a central role in economic development since the dawn of industrialization. That will not change anytime soon.

Which is why the EIA doesn’t expect much progress in reducing GHG emissions in the coming one or two decades. In its recent comprehensive forecast, it projects that “global energy-related… emissions will increase through 2050” under almost all of the policy scenarios it models.

How can that be, with all of the political attention being given to climate change in many countries? Because rising populations and incomes, particularly in China, India and other emerging economies, “will offset the effects of declining energy and carbon intensity on emissions.” And also because outside of the electricity sector, there simply aren’t enough reliable cost-effective non-fossil fuel energy sources to satisfy the world’s still growing need for energy.

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