Canada Suddenly Brands Nuclear Power Clean Energy
Canada’s Federal Minister of the Environment and Climate Change, has in the past consistently regarded nuclear power in a derogatory fashion.
For the foregoing reason it is surprising the recently released 2023 Federal Budget proposed to
“introduce a 15 per cent refundable tax credit for eligible investments in Non-emitting electricity generation systems: wind, concentrated solar, solar photovoltaic, hydro (including large-scale), wave, tidal, nuclear (including large-scale and small modular reactors)“.
That suggests; either Guilbeault wasn’t consulted, or he was beaten up in caucus during budget discussions!
We should all wonder will he once again climb the CN Tower to protest the inclusion of nuclear for the “refundable tax” or has he suddenly realized closing nuclear plants in the electricity sector is a dumb idea?
On Canada’s west coast the David Suzuki Foundation was excited about the budget allocation as suggested in their article stating:
“Overall energy costs will go down for everyone as we move away from fossil fuels and instead use electricity sources like wind and solar, all while creating millions of jobs and bringing real benefits to communities,” said Stephen Thomas, the Foundation’s clean electricity manager.”
It would appear Stephen Thomas is unaware of the damage moving away from ‘fossil fuels’ has imposed on the UK and most EU countries driving up energy poverty by inflating energy costs!
Needless to say the David Suzuki foundation is not a nuclear fan as many articles/reports on their site disparage them stating things like:
“Canada could reach zero-emissions electricity by 2035 “without relying on expensive and sometimes unproven and dangerous technologies like nuclear or fossil gas with carbon capture and storage.”
They believe wind, solar and storage could do the job!
It is somewhat comforting to see some divisions are now developing between the ENGO and the Trudeau led government but with him and his team in power we shouldn’t expect much more to happen!
Ontario Launches the Clean Energy Credit Registry
Mere days after the Federal Budget was released the Province of Ontario issued a Press Release announcing they are launching a Clean Energy Credit (CEC) Registry they reputed would not only “fund the construction of clean electricity projects” but would also “boost competitiveness and attract jobs”. The Press Release went on to state:
“Proceeds from the sale of CECs held by the IESO and Ontario Power Generation (OPG) will be directed to the government’s Future Clean Electricity Fund.
This new fund will help keep costs down for electricity ratepayers by supporting the development of new clean energy projects as the province builds out our grid to meet the demands of a growing population and economy, as well as the electrification of transportation and industry
From the above one would surmise they have discovered how to create a utopia as the release brags about the upcoming Stellantis–LGES battery plant as well as a recent announcement about Volkswagen’s planned first overseas gigafactory.
No mention is made as to how much “provincial or federal” taxpayer funds are being thrown at either factory.
The Federal government let it slip they are throwing $500 million at the battery plant but neither the provincial or federal government has disclosed what they are contributing to obtain the Volkswagen gigafactory but we should suspect it is well over $1 billion.
Coincidental or Collusion?
The provincial announcement was alluded to in the provincial budget (record spending plans) but few details were provided in its release on March 23, 2023 as to the specifics now contained in the recent press release about the CEC Registry.
It appears the province was waiting for the blessing of nuclear as “clean” by the Trudeau led government perhaps due to its predominant supply of electricity in the province?
According to IESO’s Year in Review for 2022, Ontario’s nuclear plants generated 58.2 percent of grid connected generation (78.8 TWh terawatt hours]) or 78,800 GWh (gigawatt hours).
If one accepts the IEA (International Energy Agency) claim each GWh of nuclear ‘displaces’ 5.9 MT of CO2 of coal generated electricity; in 2022 the 78.8 TWh of nuclear generated electricity in Ontario would have displaced 464.9 MT!
As of April 1st here in Canada the tax levied per tonne of emissions will be $65/tonne so the 464.9 MT would represent a value of $30.2 billion if there are willing buyers at that price!
We should seriously doubt the province will be lucky to generate $160 million from their sale which would be about $2/tonne so won’t go very far in either creating jobs or keeping costs down in an Ontario budget of over $200 billion for the upcoming year.
Interestingly the Provincial budget projected the “Electricity Cost-Relief Program” would increase by over $500 Million ($5,946 million to 6,516.8 million) suggesting either; costs are anticipated to increase by 10 percent or there is little faith in the CEC generating much additional revenue.
What was missed?
Ignored in the concept proposed in the Registry creation is the fact that Ontario’s electricity sector is already 90 percent plus emissions free so purchasing those CEC will not be top of mind for many Ontario based companies.
Suggested Conclusion
Perhaps Ontario should attempt to sell the CEC to China or India where coal generation plays a major role in keeping their energy costs low and their manufacturing base humming, whereas our Federal Government seems determined to undermine our manufacturing and ‘fossil fuel’-based economies and turn Canada into Canezuela!
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Header image: Just Energy
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