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Trudeau gov’t ‘green’ heat pump scheme to cost nearly quadruple initial estimate

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From LifeSiteNews

By Anthony Murdoch

The scheme to try and incentivize Canadians to switch to less reliable heat pumps is expected to cost taxpayers $2.7 billion, up from the original $750 million estimate.

An ideologically charged Canadian federal government “green” program to try and get homeowners to switch their reliable heating oil furnaces for less reliable electric heat pumps via a large grant has been blasted by a taxpayer advocacy group as yet more government waste after it was revealed the program is set to cost nearly four times as much as originally thought.  

According to Blacklock’s Reporter, a recent federal Legislative Costing Note from the Parliamentary Budget Office released last Thursday showed that estimated costs for a federal government program to give households $15,000 grants to switch to new heat pumps have gone from $750 million to $2.7 billion.  

“The Budget Office estimates there are up to 244,000 households nationwide that could be eligible for program funding,” stated the Legislative Costing Note, which added that if all eligible households access the program, “we estimate the program could have a maximum potential cost of $2.7 billion.” 

According to notes from the Enhancements To The Oil To Heat Pump Affordability Program, the program uptake was “projected by extrapolating historical participation trends in the program.” 

The original scheme was to allow $10,000 to eligible homeowners to convert from their oil-fired furnaces to an electric heat pump. The cabinet of Prime Minister Justin Trudeau last October expanded the grants to $15,000 along with a $250 “one-time bonus payment.”  

As it stands now, the grants apply to residents in the provinces of Nova Scotia, Prince Edward Island and Newfoundland and Labrador.

According to The Budget Office, “approximately 10,000 households” to date have officially qualified for electric heat pump grants. 

In October of last year, amid dismal polling numbers that showed his government would be defeated in a landslide by the Conservative Party come the next election, Trudeau announced he was pausing the collection of the carbon tax on home heating oil in Atlantic Canadian provinces for three years.  

However, Trudeau refused to offer carbon tax relief to other provinces, such as Alberta and Saskatchewan, for natural gas. This led to Saskatchewan Premier Scott Moe announcing his government would defy the Trudeau government, and stop collecting the federal carbon tax on natural gas in this province, as of Jan 1, 2024.  

Taxpayer watchdog: ‘None’ of this is ‘free money’  

Franco Terrazzano, Federal Director of the Canadian Taxpayers Federation, told LifeSiteNews that “none” of the money going to the heat pump scheme is “free” and the Trudeau government instead should just scrap the carbon tax. 

“Why does it feel like this government can’t keep anything on budget? Is there any wonder why this government is more than $1 trillion in debt?” said Terrazzano.  

“None of this is free money.” 

Terrazzano noted that if a person is getting a grant from the government, “all of that money will have to be paid back through higher taxes.”  

“If the government wanted to make all areas of life more affordable, the government should leave more money in people’s pockets and cut taxes,” he told LifeSiteNews.  

“Trudeau should completely scrap his carbon tax.” 

Terrazzano added at the “very least,” Trudeau should “extend the same relief he provided to Atlantic Canadians and take the carbon tax off everyone’s home heating bill.” 

Heat pumps do not work well in very cold weather unlike a natural gas or oil-fired furnaces, a fact which was even admitted by a former environment minister for the province of British Columbia, Barry Penner.  

The Trudeau government is trying to force net-zero regulations on all Canadian provinces, notably on electricity generation, as early as 2035. His government has also refused to extend a carbon tax exemption on heating fuels to all provinces, allowing only Atlantic provinces, this benefit.    

Canada has the third largest oil and gas reserves in the world, with most of it in Alberta.  However, since taking office in 2015, Trudeau has continued to push his radical environmental agenda similar to the agendas being pushed the WEF’s “Great Reset” and the United Nations’ “Sustainable Development Goals.”   

LifeSiteNews has earlier reported on how Trudeau’s carbon tax is costing Canadians hundreds of dollars annually, as government rebates it gives out are not enough to compensate for high fuel costs.   

One of the reasons the carbon tax break was applied to Eastern provinces, might have something to do with the fact that there are 24 Liberal MPs up for re-election in Atlantic Canada.  

A recent cold snap showed Canadian lives depend on carbon-based fuels to survive winter.  

A little over a week ago, an extreme cold snap sent temperatures plummeting to nearly minus 50 degrees Celsius (58 degrees Fahrenheit) in much of Western Canada. It was so cold that the province of Alberta’s power grid almost collapsed due to a failure of wind and solar power. Natural gas and coal are abundant in Canada, notably in Alberta. 

In response to the situation, the neighboring province of Saskatchewan, which was also facing the same cold snap, announced it would be providing Alberta with electricity, made from coal and natural gas, to stabilize the grid.

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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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