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Solar’s Dirty Secret: Expensive and Unfit for the Grid

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From the Frontier Centre for Public Policy

By Ian Madsen

To store twelve hours worth of the 1.6 TW total installed global solar power capacity would cost about 12.9 trillion Canadian dollars

Solar energy’s promise of a green, abundant future is captivating—but beneath the shiny panels lies a story of unreliability, hidden costs, and grid instability.

Green enthusiasts endorse solar energy to reduce carbon dioxide (CO2) emissions from traditional energy sources such as coal, oil, and natural gas. The source of solar power, the sun, is free, abundant, and always available somewhere. However, these claims are misleading. Solar energy is costly and unreliable in ways its proponents commonly disguise. If adopted extensively, solar energy will generally make energy and electric power grids more unreliable and expensive.

The solar industry has burgeoned remarkably, with an estimated average compound annual growth rate (CAGR) of about 39 percent from 2021 to 2024. Earlier this century, the growth rate was even faster. As a result, global installed solar capacity has reached 1.6 terawatts (TW), according to the U.S. Energy Department. This capacity is theoretically sufficient to power a billion homes at 1.5 kilowatts per home. However, the term “theoretically” poses a significant challenge. Solar power, without affordable energy storage solutions, is only available during daylight hours.

The minimum amount of storage required to make global solar power truly “dispatchable”—i.e., independent of other backup energy sources—would be twelve hours of storage. Options include batteries, pumped hydro, compressed air, or other technologies. Since batteries are today’s standard method, the following calculation estimates the cost of the minimum amount of battery storage to ensure reliable solar power.

Twelve hours per day multiplied by 1.6 terawatts and dividing the result by one kilowatt-hour (kWh), we arrive at a final requirement of 19.2 billion kWh of storage. According to a meta-study by the National Renewable Energy Lab, the utility-grade cost of battery storage is C$670.99 per kWh.

To store twelve hours worth of the 1.6 TW total installed global solar power capacity would cost about 12.9 trillion Canadian dollars; a safer twenty-four hours’ storage would be double that. Total storage available in 2023 was, the International Energy Agency notes, approximately two hundred and sixty gigawatts (GW) of power – a tiny fraction of power production of 3.2 million GW in 2022, using figures from Statista.

No firms or governments can have the necessary storage to make solar viable even if the entire globe was involved, as the total global GDP was about C$148 trillion in 2023, according to World Bank figures. That is not solar’s only problem. The most harmful effect is how it undermines power grids. The misleading, ‘levelized’ near-zero cost undercuts traditional, reliable on-demand energy sources such as coal, natural gas and nuclear power.

Importantly, high solar and wind power output can make prices turn negative, as an Institute for Energy Research article noted, but can swiftly revert to high prices when winds calm or the sun sets, as the fixed costs of traditional power plants are spread over lower production.  Baseload traditional energy sources are essential because the frequent unavailability of renewables can be dangerous. Consequently, overall costs for customers are higher when renewables are included in the energy mix. Solar mandates in California made its power supply wildly erratic.

Without affordable energy storage, solar is a seductive illusion; its unchecked adoption risks turning power grids into unreliable, costly experiments at the expense of energy stability.

Ian Madsen is the Senior Policy Analyst at the Frontier Centre for Public Policy.

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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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Alberta

Premier Smith: Canadians support agreement between Alberta and Ottawa and the major economic opportunities it could unlock for the benefit of all

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From Energy Now

By Premier Danielle Smith

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If Canada wants to lead global energy security efforts, build out sovereign AI infrastructure, increase funding to social programs and national defence and expand trade to new markets, we must unleash the full potential of our vast natural resources and embrace our role as a global energy superpower.

The Alberta-Ottawa Energy agreement is the first step in accomplishing all of these critical objectives.

Recent polling shows that a majority of Canadians are supportive of this agreement and the major economic opportunities it could unlock for the benefit of all Canadians.

As a nation we must embrace two important realities: First, global demand for oil is increasing and second, Canada needs to generate more revenue to address its fiscal challenges.

Nations around the world — including Korea, Japan, India, Taiwan and China in Asia as well as various European nations — continue to ask for Canadian energy. We are perfectly positioned to meet those needs and lead global energy security efforts.

Our heavy oil is not only abundant, it’s responsibly developed, geopolitically stable and backed by decades of proven supply.

If we want to pay down our debt, increase funding to social programs and meet our NATO defence spending commitments, then we need to generate more revenue. And the best way to do so is to leverage our vast natural resources.

At today’s prices, Alberta’s proven oil and gas reserves represent trillions in value.

It’s not just a number; it’s a generational opportunity for Alberta and Canada to secure prosperity and invest in the future of our communities. But to unlock the full potential of this resource, we need the infrastructure to match our ambition.

There is one nation-building project that stands above all others in its ability to deliver economic benefits to Canada — a new bitumen pipeline to Asian markets.

The energy agreement signed on Nov. 27 includes a clear path to the construction of a one-million-plus barrel-per-day bitumen pipeline, with Indigenous co-ownership, that can ensure our province and country are no longer dependent on just one customer to buy our most valuable resource.

Indigenous co-ownership also provide millions in revenue to communities along the route of the project to the northwest coast, contributing toward long-lasting prosperity for their people.

The agreement also recognizes that we can increase oil and gas production while reducing our emissions.

The removal of the oil and gas emissions cap will allow our energy producers to grow and thrive again and the suspension of the federal net-zero power regulations in Alberta will open to doors to major AI data-centre investment.

It also means that Alberta will be a world leader in the development and implementation of emissions-reduction infrastructure — particularly in carbon capture utilization and storage.

The agreement will see Alberta work together with our federal partners and the Pathways companies to commence and complete the world’s largest carbon capture, utilization and storage infrastructure project.

This would make Alberta heavy oil the lowest intensity barrel on the market and displace millions of barrels of heavier-emitting fuels around the globe.

We’re sending a clear message to investors across the world: Alberta and Canada are leaders, not just in oil and gas, but in the innovation and technologies that are cutting per barrel emissions even as we ramp up production.

Where we are going — and where we intend to go with more frequency — is east, west, north and south, across oceans and around the globe. We have the energy other countries need, and will continue to need, for decades to come.

However, this agreement is just the first step in this journey. There is much hard work ahead of us. Trust must be built and earned in this partnership as we move through the next steps of this process.

But it’s very encouraging that Prime Minister Mark Carney has made it clear he is willing to work with Alberta’s government to accomplish our shared goal of making Canada an energy superpower.

That is something we have not seen from a Canadian prime minister in more than a decade.

Together, in good faith, Alberta and Ottawa have taken the first step towards making Canada a global energy superpower for benefit of all Canadians.

Danielle Smith is the Premier of Alberta

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