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One (Megawatt) is the loneliest number, but hundreds of batteries are absurd

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From the Frontier Centre for Public Policy

By Brian Zinchuk

That comes out to $104,000,000,000, in batteries, alone, to cover those 18 hours on Feb. 8. To make it easier on you, $104 billion. If you use Smith’s numbers, it’s $80.6 billion. Even if I’m out by a factor of two, it’s an obscene amount of money.

SaskPower Minister Dustin Duncan recently told me I watch electricity markets like some people watch fantasy football. I would agree with him, if I knew anything about fantasy football.

I had some time to kill around noon on Feb. 8, and I checked out the minute-by-minute updates from the Alberta Electric System Operator. What I saw for wind power production was jaw-dropping to say the least. Alberta has built 45 wind farms with hundreds of wind turbines totalling an installed capacity of 4,481 megawatts.

My usual threshold for writing a story about this is output falling to less than one per cent – 45 megawatts. Its output at 11:07 a.m., Alberta time, in megawatts?

“1”

Ten minutes later:

“1”

30 minutes later:

“1”

How long can this last? Is there a fault with the website? There doesn’t seem to be.

12:07 p.m.

“1”

Strains of “One is the loneliest number” flow through my head.

I’ve seen it hit one before briefly. Even zero for a minute or two. But this keeps going. And going. I keep taking screenshots. How long will this last?

1:07 p.m.

“1”

1:29 p.m.

“1”

Finally, there’s a big change at 2:38. The output has doubled.

“2.”

That’s 2.5 hours at one. How long will two last?

3:45 p.m.

“2”

4:10 p.m. – output quadruples – to a whopping eight megawatts.

It ever-so-slowly crept up from there. Ten hours after I started keeping track, total wind output had risen to 39 megawatts – still not even one per cent of rated output. Ten hours.

It turns out that wind fell below one per cent around 5 a.m., and stayed under that for 18 hours.

Building lots of turbines doesn’t work

The argument has long been if it’s not blowing here, it’s blowing somewhere. Build enough turbines, spread them all over, and you should always have at least some wind power. But Alberta’s wind turbines are spread over an area larger than the Benelux countries, and they still had essentially zero wind for 18 hours. Shouldn’t 45 wind farms be enough geographic distribution?

The other argument is to build lots and lots of batteries. Use surplus renewable power to charge them, and then when the wind isn’t blowing (or sun isn’t shining), draw power from the batteries.

Alberta has already built 10 grid-scale batteries. Nine of those are the eReserve fleet, each 20 megawatt Tesla systems. I haven’t been able to find the price of those, but SaskPower is building a 20 megawatt Tesla system on the east side of Regina, and its price is $26 million.

From over a year’s frequent observation, it’s apparent that the eReserve batteries only put out a maximum of 20 megawatts for about an hour before they’re depleted. They can run longer at lower outputs, but I haven’t seen anything to show they could get two or five hours out of the battery at full power. And SaskPower’s press release explains its 20 megawatt Tesla system has about 20 megawatts-hours of power. This corresponds very closely to remarks made by Alberta Premier Danielle Smith, along with the price of about $1 million per megawatt hour for grid-scale battery capacity.

She said in late October, “I want to talk about batteries for a minute, because I know that everybody thinks that this economy is going to be operated on wind and solar and battery power — and it cannot. There is no industrialized economy in the world operating that way, because they need baseload. And, I’ll tell you what I know about batteries, because I talked to somebody thinking of investing in it on a 200-megawatt plant. One million dollars to be able to get each megawatt stored: that’s 200 million dollars for his plant alone, and he would get one hour of storage. So if you want me to have 12 thousand megawatts of storage, that’s 12 billion dollars for one hour of storage, 24 billion dollars for two hours of storage, 36 billion dollars for three hours of storage, and there are long stretches in winter, where we can go weeks without wind or solar. That is the reason why we need legitimate, real solutions that rely on baseload power rather than fantasy thinking.”

So let’s do some math to see if the premier is on the money.

If you wanted enough batteries to output the equivalent of the 4,481 megawatts of wind for one hour (minus the 1 megawatt it was producing), that’s 4480 megawatts / 20 megawatts per battery = 224 batteries like those in the eReserve fleet. But remember, they can only output their full power for about an hour. So the next hour, you need another 224, and so on. For 18 hours, you need 4032 batteries. Let’s be generous and subtract the miniscule wind production over that time, and round it to 4,000 batteries, at $26 million a pop. (Does Tesla offer bulk discounts?)

That comes out to $104,000,000,000, in batteries, alone, to cover those 18 hours on Feb. 8. To make it easier on you, $104 billion. If you use Smith’s numbers, it’s $80.6 billion. Even if I’m out by a factor of two, it’s an obscene amount of money.

But wait, there’s more!

You would also need massive amounts of transmission infrastructure to power and tie in those batteries. I’m not even going to count the dollars for that.

But you also need the surplus power to charge all those batteries. The Alberta grid, like most grids, runs with a four per cent contingency, as regulated by NERC. Surplus power is often sold to neighbours. And there’s been times, like mid-January, where that was violated, resulting in a series of grid alerts.

At times when there’s lots of wind and solar on the grid, there’s up to around 900 megawatts being sold to B.C and other neighbours. But for 18 hours (not days, but hours), you need 4,000 batteries * 20 megawatt-hours per battery =  80,000 megawatt hours. Assuming 100 per cent efficiency in charging (which is against the laws of physics, but work with me here), if you had a consistent 900 megawatts of surplus power, it would take 89 hours to charge them (if they could charge that fast, which is unlikely).

That’s surplus power you are not selling to an external client, meaning you’re not taking in any extra revenue, and they might not be getting the power they need. And having 900 megawatts is the exception here. It’s much more like 300 megawatts surplus. So your perfect 89 hours to charge becomes 267 hours (11.1 days), all to backfill 18 hours of essentially no wind power.

This all assumes at you’ve had sufficient surplus power to charge your batteries, that days or weeks of low wind and/or solar don’t deplete your reserves, and the length of time they are needed does not exceed your battery capacity.

Nor does it figure in how many years life are you going to get out of those batteries in the first place? How many charge cycles before you have to recapitalize the whole fleet?

For the dollars we’re talking here, you’re easily better off to four (or more) Westinghouse AP-1000 reactors, with 1,100 megawatts capacity each. Their uptime should be somewhere around 90 per cent.

Or maybe coal could be renewed – built with the most modern technology like high efficiency, low emissions (HELE), with integrated carbon capture from Day 1. How many HELE coal-fired power plants, with carbon capture and storage, could you build for either $80 billion or $104 billion? Certainly more than 4,481 megawatts worth.

Building either nuclear or HELE coal gives you solid, consistent baseload power, without the worry of the entire fleet going down, like wind did in Alberta on Feb. 8, as well as Feb. 45, 6, and 7.

Indeed, according to X bot account @ReliableAB, which does hourly tracking of the Alberta grid, from Feb. 5 to 11:15 a.m., Feb. 9, Alberta wind output averaged 3.45 per cent of capacity. So now instead of 18 hours, we’re talking 108 hours needing 96+ per cent to be backfilled. I don’t have enough brain power to figure it out.

You can argue we only need to backfill X amount of wind, maybe 25 per cent, since you can’t count on wind to ever produce 100 per cent of its nameplate across the fleet. But Alberta has thousands more megawatts of wind on tap to be built as soon as the province lifts is pause on approvals. If they build all of it, maybe the numbers I provide will indeed be that 25 per cent. Who knows? The point is all of this is ludicrous.

Just build reliable, baseload power, with peaking capacity. And end this foolishness.

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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Energy

Unceded is uncertain

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Tsawwassen Speaker Squiqel Tony Jacobs arrives for a legislative sitting. THE CANADIAN PRESS/Darryl Dyck

From Resource Works

Cowichan case underscores case for fast-tracking treaties

If there are any doubts over the question of which route is best for settling aboriginal title and reconciliation – the courts or treaty negotiations – a new economic snapshot on the Tsawwassen First Nation should put the question to rest.

Thanks to a modern day treaty, implemented in 2009, the Tsawwassen have leveraged land, cash and self-governance to parlay millions into hundreds of millions a year, according to a new report by Deloitte on behalf of the BC Treaty Commission.

With just 532 citizens, the Tsawwassen First Nation now provides $485 million in annual employment and 11,000 permanent retail and warehouse jobs, the report states.

Deloitte estimates modern treaties will provide $1 billion to $2 billion in economic benefits over the next decade.

“What happens, when you transfer millions to First Nations, it turns into billions, and it turns into billions for everyone,” Sashia Leung, director of international relations and communication for the BC Treaty Commission, said at the Indigenous Partnership Success Showcase on November 13.

“Tsawwassen alone, after 16 years of implementing their modern treaty, are one of the biggest employers in the region.”

BC Treaty Commission’s Sashia Leung speaks at the Indigenous Partnerships Success Showcase 2025.
BC Treaty Commission’s Sashia Leung speaks at the Indigenous Partnerships Success Showcase 2025.

Nisga’a success highlights economic potential

The Nisga’a is another good case study. The Nisga’a were the first indigenous group in B.C. to sign a modern treaty.

Having land and self-governance powers gave the Nisga’a the base for economic development, which now includes a $22 billion LNG and natural gas pipeline project – Ksi Lisims LNG and the Prince Rupert Gas Transmission line.

“This is what reconciliation looks like: a modern Treaty Nation once on the sidelines of our economy, now leading a project that will help write the next chapter of a stronger, more resilient Canada,” Nisga’a Nation president Eva Clayton noted last year, when the project received regulatory approval.

While the modern treaty making process has moved at what seems a glacial pace since it was established in the mid-1990s, there are some signs of gathering momentum.

This year alone, three First Nations signed final treaty settlement agreements: Kitselas, Kitsumkalum and K’omoks.

“That’s the first time that we’ve ever seen, in the treaty negotiation process, that three treaties have been initialed in one year and then ratified by their communities,” Treaty Commissioner Celeste Haldane told me.

Courts versus negotiation

When it comes to settling the question of who owns the land in B.C. — the Crown or First Nations — there is no one-size-fits-all pathway.

Some First Nations have chosen the courts. To date, only one has succeeded in gaining legal recognition of aboriginal title through the courts — the Tsilhqot’in.

The recent Cowichan decision, in which a lower court recognized aboriginal title to a parcel of land in Richmond, is by no means a final one.

That decision opened a can of worms that now has private land owners worried that their properties could fall under aboriginal title. The court ruling is being appealed and will almost certainly end up having to go to the Supreme Court.

This issue could, and should, be resolved through treaty negotiations, not the courts.

The Cowichan, after all, are in the Hul’qumi’num treaty group, which is at stage 5 of a six-stage process in the BC Treaty process. So why are they still resorting to the courts to settle title issues?

The Cowichan title case is the very sort of legal dispute that the B.C. and federal governments were trying to avoid when it set up the BC Treaty process in the mid-1990s.

Accelerating the process

Unfortunately, modern treaty making has been agonizingly slow.

To date, there are only seven modern implemented treaties to show for three decades of works — eight if you count the Nisga’a treaty, which predated the BC Treaty process.

Modern treaty nations include the Nisga’a, Tsawwassen, Tla’amin and five tribal groups in the Maa-nulth confederation on Vancouver Island.

It takes an average of 10 years to negotiate a final treaty settlement. Getting a court ruling on aboriginal title can take just as long and really only settles one question: Who owns the land?

The B.C. government has been trying to address rights and title through other avenues, including incremental agreements and a tripartite reconciliation process within the BC Treaty process.

It was this latter tripartite process that led to the Haida agreement, which recognized Haida title over Haida Gwaii earlier this year.

These shortcuts chip away at issues of aboriginal rights and title, self-governance, resource ownership and taxation and revenue generation.

Modern treaties are more comprehensive, settling everything from who owns the land and who gets the tax revenue from it, to how much salmon a nation is entitled to annually.

Once modern treaties are in place, it gives First Nations a base from which to build their own economies.

The Tsawwassen First Nation is one of the more notable case studies for the economic and social benefits that accrue, not just to the nation, but to the local economy in general.

The Tsawwassen have used the cash, land and taxation powers granted to them under treaty to create thousands of new jobs. This has been done through the development of industrial, commercial and residential lands.

This includes the development of Tsawwassen Mills and Tsawwassen Commons, an Amazon warehouse, a container inspection centre, and a new sewer treatment plant in support of a major residential development.

“They have provided over 5,000 lease homes for Delta, for Vancouver,” Leung noted. “They have a vision to continue to build that out to 10,000 to 12,000.”

Removing barriers to agreement

For First Nations, some of the reticence in negotiating a treaty in the past was the cost and the loss of tax exemptions. But those sticking points have been removed in recent years.

First Nations in treaty negotiations were originally required to borrow money from the federal government to participate, and then that loan amount was deducted from whatever final cash settlement was agreed to.

That requirement was eliminated in 2019, and there has been loan forgiveness to those nations that concluded treaties.

Another sticking point was the loss of tax exemptions. Under Section 87 of Indian Act, sales and property taxes do not apply on reserve lands.

But under modern treaties, the Indian Act ceases to apply, and reserve lands are transferred to title lands. This meant giving up tax exemptions to get treaty settlements.

That too has been amended, and carve-outs are now allowed in which the tax exemptions can continue on those reserve lands that get transferred to title lands.

“Now, it’s up to the First Nation to determine when and if they want to phase out Section 87 protections,” Haldane said.

Haldane said she believes these recent changes may account for the recent progress it has seen at the negotiation table.

“That’s why you’re seeing K’omoks, Kitselas, Kitsumkalum – three treaties being ratified in one year,” she said. “It’s unprecedented.”

The Mark Carney government has been on a fast-tracking kick lately. But we want to avoid the kind of uncertainty that the Cowichan case raises, and if the Carney government is looking for more things to fast-track that would benefit First Nations and the Canadian economy, perhaps treaty making should be one of them.

Resource Works News

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This new Canada–Alberta pipeline agreement will cost you more than you think

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By Natalia Bankert

Canada and Alberta’s new net-zero energy deal is being promoted as progress, but it also brings rising costs. In this video, I break down the increase to Alberta’s industrial carbon price, how those costs can raise fuel, heating, and grocery prices, and why taxpayer-funded carbon-capture projects and potential pipeline delays could add even more. Here’s what this agreement could mean for Canadians.

Watch Nataliya Bankert’s latest video.

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