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General Electric and BC's Private Power Gold Rush
When cash-poor Finavera needed backers for its Peace River wind farms, who stepped up? First, an aging Irish tycoon cut his sweet deal, then giant GE gained the 'lions share' of profits.
GE is world's fourth largest corporation.
Are you passionate about B.C. politics? If so, you might be able to use the following skill-testing question to amaze your friends, confound your enemies and be a hit at cocktail parties.
Here it is: what do a New York hedge fund run by a couple of ex-Goldman Sachs managers, a 95-year old Irish business tycoon who made his initial fortune in movie theatres, and an international conglomerate ranked in the latest Fortune 500 ratings as the fourth-biggest company in the world, have in common?
The surprising answer: Finavera Renewables Inc., the tiny company that on March 11 won an astounding four, much-valued electricity purchasing agreements (EPAs) from British Columbia's biggest Crown corporation, BC Hydro and Power Authority.
It's true, and perhaps not so surprising in the world of independent power production where, in B.C. at any rate, such are the vast profits waiting to be made -- courtesy of BC Hydro ratepayers -- that even the smallest, financially-destitute companies have access to phenomenal amounts of capital.
Finavera's rags to riches story
Tyee readers learned a few weeks ago that Finavera Renewables Inc., a Vancouver company with no revenues and few assets -- save some interesting connections to Accenture, the global out-sourcing giant -- was selected by BC Hydro to build four electricity-generating wind farms in northeastern B.C.
The project will cost an estimated $800 million to complete, but Finavera executives believe their wind farms will produce annual revenues (from BC Hydro) of at least $100 million over the life of the four 25-year contracts recently signed with the publicly-owned utility.
To repeat: once their company expends $800 million in capital costs, Finavera executives expect at least $2.5 billion in revenues over the following two-and-a-half decades. The profit potential, to put it mildly, is enormous.
At the present time, however, Finavera Renewables is anything but enormous.
Consider the company's most-recent financial statements, for fiscal 2009, released on Friday, April 30, along with the management's discussion and analysis (MD&A), a standard document for publicly-traded companies.
The financial statements confirm The Tyee's observation several weeks ago that Finavera's ongoing expenses and a dearth of revenues meant the company was "operating on fumes" not long before it won the four Hydro EPAs.
In fact, as the company's most-recent balance sheet shows, Finavera's entire cash balance at the beginning of 2010 was a mere $6,695.
Moreover, the company’s total assets at year-end were valued at just $536,302. For sake of comparison, consider that the average price of a house in the Greater Vancouver area in April was $662,741.
That asset valuation was down sharply from the $1.9 million recorded in 2008, and a stunning drop from $5.5 million in 2007. Simply, Finavera appears to have been forced to sell assets -- notably an undeveloped wind-power project in Alberta -- merely to stay alive, hoping against hope that it could obtain at least one long-term EPA from BC Hydro.
Lean times
Further examination of the company's financial statements shows that year-end assets included property, computers and office equipment valued at $176,574, pre-paid expenses of $56,329, receivables of $47,756, and -- strangest of all -- an IOU from an employee totaling $81,510.
(Notes to the financial statements suggest that a tax assessment was levied against an individual who was both an officer and director, and the company advanced the monies necessary for the executive to meet his tax obligation. It further appears that at year-end, the company was still negotiating a repayment schedule.)
On the other side of the ledger, accounts payable and accrued liabilities came to more than $4.6 million. In total, Finavera's liabilities added up to more than $6.0 million.
Interestingly, among Finavera's creditors were members of the company's board of directors. At year-end, as much as $360,565 was owed "to related parties... in respect of expenses incurred in current and prior periods." The outstanding amounts, moreover, "comprise fees to directors and officers, former directors, and companies with current or former directors in common."
Simply, it appears that in a bid to conserve cash, Finavera might have been withholding payments to its directors for their attendance at board meetings and other functions. And on top of that, the company has borrowed monies, $40,563, from a related party. It's an unsecured loan, repayable upon demand.
In search of more credit
As well as delaying payments to creditors, Finavera has been forced to drastically slash its operating expenditures. Payroll and benefits -- the company currently employs 10 full-time people at its Vancouver office, five staff who work part-time, and another full-time worker overseas -- were chopped nearly in half, from $1.4 million in 2008, to $874,000 last year.
Office and administration expenditures fell from $833,000 to $538,000 over the same period, outlays for marketing and advertising dropped from $256,000 to $43,000, and professional fees declined from $741,000 to $489,000.
Over all, Finavera was able to cut its year-over-year operating expenses by $3.5 million (from $7.5 million to just over $4.0 million). As a result, the company's fiscal year losses fell from $9.1 million in 2008, to $3.3 million in 2009.
Finding new capital has been a difficult and on-going challenge. The latest financial statements make clear that there was "no operating credit facility" on which the company could draw funds.
To raise cash, therefore, Finavera has had to ask existing shareholders to boost their investments and extend loans.
As the most-recent MD&A states: "In the longer term, the Company's ability to continue its operations, develop its projects, and realize assets at their carrying values remains dependent upon its creditors, and obtaining sufficient financing through debt and equity offerings, until it can generate revenues to cover operating costs."
A cash infusion
Then, in the last two months or so, both just before and after it obtained those four BC Hydro EPAs, Finavera raised nearly $4 million from current shareholders.
In February and March, $142,420 was generated through the sale of just over 2.8 million share-warrant units at five cents apiece. A few weeks later, another 10 million shares were sold at six cents each and fetched a total of $600,000.
The former sale appears to have gone to Anchorage Capital Master Offshore Ltd., a New York-based hedge fund founded in 2003 by Kevin Ulrich and Anthony Davis, a pair of alumni from Wall Street's largest investment bank and brokerage, Goldman Sachs.
With about $7 billion currently under management, Anchorage has been associated with Finavera's principals for much of the past decade, going back at least to when many of them toiled at Tournigan Gold, a penny-stock company listed on the Toronto Venture Exchange. (Hein Poulus, the Stikeman Elliott lawyer who chairs Finavera, also sits on that company's -- now known as Tournigan Energy -- board of directors.)
Anchorage Capital currently owns more than 25 million Finavera shares, or about 9 per cent of the total.
The Irish connection
The latter share sale was taken up by Kevin Anderson, a 95-year old Irish business magnate who has become a significant Finavera shareholder in recent years.
An accountant by training, Anderson acquired and developed movie cinemas across Ireland and Britain, which, along with his son, Tom, he parlayed into a business conglomerate with holdings in oil and gas, real estate, hotels, pubs, and much more -- including a Christmas tree company.
Along with adding 10 million Finavera shares to his portfolio, Anderson also agreed to lend the company $1.8 million -- at a whopping 12 per cent annual interest. (Yes, there's a reason he's a multi-millionaire.)
Lastly, Finavera realized just over $1.3 million when a number of shareholders exercised warrants that allowed them to purchase new shares from the company treasury at 10 cents apiece.
Not surprisingly, the continual sale of stock from the company treasury has resulted in considerable dilution over the last few years. At the beginning of 2007, Finavera had 92 million shares outstanding, but by the beginning of 2010 that number had skyrocketed to nearly 246 million. Recent sales put that latter figure to 270 million shares or so.
Over the last 10 weeks or so, the total amount of capital raised by Finavera was in excess of $3.8 million.
Enter General Electric
Still, on the face of it, Finavera remains a long way from the $800 million or so needed to construct the four wind farms in B.C.'s Peace River country. This is where the world's fourth-largest conglomerate -- General Electric Company (GE) -- enters the picture.
General Electric has five operating divisions, one of which (GE Energy Infrastructure -- with revenues of $42.3 billion in 2009), among other things, manufactures and installs wind-turbines, and another (GE Capital Finance -- revenues of $50.6 billion last year) that, among other things, provides financing to companies seeking to buy wind turnbines.
(The arrangement is not dissimilar to that at General Motors, which manufactures automobilies, and has a financing arm, GMAC, to provide credit to people wishing to buy a GM car.)
According to GE, the company to date has installed 13,500 wind and 3,600 hydro turbines around the world, with capacity in excess of 160,000 megawatts.
Eighteen months ago, in November 2008, General Electric and Finavera Renewables signed a memorandum of understanding whereby GE Energy Financial Services obtained the exclusive right to provide 100 per cent financing for Finavera's four wind projects through equity investments and debt arranging.
GE's growing profile in BC
General Electric has become a significant presence in BC Hydro's quest to obtain clean energy. The conglomerate is a partner with Plutonic Power Corporation in the massive -- and controversial -- run-of-river project in the Upper Toba Valley.
And last year, GE and Plutonic teamed up to take over the failed Dokie 1 Wind Project, also located in the Peace region. That initiative similarly has been controversial, as the GE/Plutonic duo obtained from BC Hydro a contracted price higher than was allowed under the original EPA. That second EPA was approved -- but kept secret -- by the B.C. Utilities Commission.
General Electric also took a high-profile role at the 2010 Winter Olympics, notably in contributing $700,000 towards a $2 million upgrade of the Robson Square ice rink, which for the duration of the festivities was renamed GE Plaza.
And together, Plutonic and GE have made significant donations to Gordon Campbell's BC Liberals. Since 2005, their combined total is $150,351.
'The lion's share' to GE
Finavera executives are quite prepared to concede that General Electric will acquire nearly all of the profits from their four Peace River windfarms.
In a remarkable interview with The Sunday Tribune of Ireland in January, Jason Bak, company CEO said that he expected GE to get "the lion's share of the proceeds" from the project.
Finavera shareholders, he added, "will get a significant portion based on the risk we took. We take all the risk, do all the grunt work, and they [GE] come in and sign the cheque."
So, it's a win-win situation for everybody. General Electric gets to sell a sizeable number of their wind turbines and earn a steady stream of interest and principal payments, along with significant profits, over the next several decades. Finavera shareholders -- company executives, New York's Anchorage Capital hedge fund, and Kevin Anderson, the Irish movie theatre magnate -- will be handsomely rewarded for their patience.
As for BC Hydro ratepayers: well, that's not so clear. ![]()




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bovalhjalt
2 years ago
introducing an enron-economy
SEEMS BC IS LATE ON THE LINE TO INTRODUCE an enron-kind of economy. It was done in Sweden many years ago. Argument: increased competition will generate lower prices. Result: The general consumer haS HAD RECORD HIGH PRICES. WHY. THE IDEA OF THE ENRON-KIND OF ECONOMY is to get control of the market. *Then you may manipulate supply and increase the price by normal mechanisms compwetition for supply. California was almost blacked out, and the employees selling energy got rich In Sweden the National energy company, Vattenfall, bought coal plants in Germany and shut down nuclear energy plants for maintenance. When the winter went really cold, the energy price was set according the cost of coal plant production, abot 50 times higher than summer production from water.
Congratulations to those raping the benefits
Bo Walhjalt, *Göteborg, Sweden
seth
2 years ago
Klinaklini and the power of the pad.
No better illustration of the Pirate Power scam than the $2.5B Klinaklini project producing 280 megawatts average with a 180 Km 1800 hectare power line. The project didn't get past Barry Penner because he claimed it strayed a bit into some future park boundary.
The project included a 30 meter high weir - a bit of a dodge designed to store water overnight and on weekends. The weir would ensure all the power generated would be at the peak rate, destroying a wild river canyon and the fish in it for the extra cash.
Total cost for a forty year contract to BCHydro would be $12B the equivalent of a $6B 40 year bond.
The power line itself destroys so much forest carbon sink that BCHydro would produce the same amount of GHG's running Burrard thermal at the same power output for 7 years using natural gas at 1/4 the cost to the taxpayer.
For the same cost, BCHydro could put in a twin enchanced Candu 6 nuclear plant on the Burrard Thermal site producing 1.5 Gw average 5 times the power but no 180 sq km of destroyed forest and no GHG's.
When the lucrative pirate power profits are added in and you look at the cost to the taxpayer, BChydro could double that up to a quad nuke unit for the same price making the Klinaklini scam 10 times the cost for the same amount of power.
While the oh so wet behind the ears buy the nonsense about park boundaries, a quick look at the campaign donation record shows only $22K in campaign donations since the election from a project which will stuff $12B dollars into the Pirate feeding trough.
Given the sorry state of BC Liberal party finances these days, a giant scam like Klinaklini needs to grease the palms of the party bag team a hell of a lot more than the proceeds of the last ladies auxiliary bake sale.
This was a warning to the pirates - cough it up you chinzy SOB's
samantha raftery
2 years ago
can't we ever do anything without killing species?
This is the ugly, dirty secret of the powerful prop-turbine wind industry. It’s the sorry story that you won’t see on the ‘feel-good’ TV commercials or read about in industry-sponsored ads and skewed ‘research’ papers.
The employees at wind farms have been instructed to not talk about the staggering numbers of dismembered bodies accumulating at the bases of these turbines.
There is big money invested here, and big profits. When people have large investments they do what they need to in order to justify and protect that investment.
Even if it’s wrong.
“The towers in these images are Prop Turbines and when the wind is blowing, their blade tips spin at over 200 miles per hour,” explains Jim Wiegand, graduate Berkley University in California, where wind farms are being built with terrifying speed. “If you were an Eagle or an Owl hunting for a meal or any bird trying to fly over the hill, imagine having to navigate these spinning blades every day. This is just one of hundreds of Wind farms planned for America. It has been running for over 25 years. During that time over 30,000 birds of prey have died trying to fly through this gauntlet of spinning blades. Some estimate the mortality higher at 40,000. Over 1000 of these fatalities have been Golden Eagles“
Bear in mind that wildlife is not killed only by the spinning blades. High tension power lines, new access roads, habitat destroyed by construction of the farms and increased human presence all combine to transform what is touted as an ‘ecologically friendly’ new energy technology into the biggest deception ever perpetrated upon the public.
As is the case so often with powerful political/business lobbies (think tobacco industry), they have the money and influence to buy allies to perpetuate their party line.
The list of slaughtered species includes eagles, kites, hawks, cranes, bats, ducks, swifts, swans, geese, gulls, bustards, vultures, owls, grouse and more. Bear in mind reported losses don’t include carcasses claimed by scavenging animals before being recorded, nor bodies either too small or too mangled to be recognizable or even to leave enough remains to be found at all.
Don’t think for a moment that this is a problem restricted to the United States. There is a rising international outcry against these ugly, noisy eyesores that are spreading like cancers across fragile habitats and scenic open spaces around the globe. They’re not just endangering wildlife; they’re also destroying tourism, lowering property values and the quality of life for nearby residents.
I implore readers to click on and actually read the links I’ve provided. The statistics are truly alarming.
http://climaterealists.com/index.php?id=3836&linkbox=true
Luck
2 years ago
More of the same, people who most count in bc left out
Another great article by the Tyee and Wilf McMartin.
Just goes to show are bc politicians are bad negotiators and do not know the value of natural resources.
Sell everything off like a dope addict looking for a fix for him and his friends.
When are you gonna sell icbc??
You stole the contingency fund gordo. Sell it, maybe we can get some better competitive insurance like ontario and rest of the free world.
People of BC when you do not vote you get the gov you deserve.
Wake up or you will be more broken by 2013 than you care to think about.
Once its gone its all gone.
Adam M
2 years ago
Great Article
Thanks again, Will. Hey, wasn't GE Capital teamed up with George Soros at some point in a venture called Global Power Investments, to invest in emerging private power markets? This was way back in the 1990's... I wonder if Soros is still involved.
John Hunter
2 years ago
Finivera and GE
This author compares revenues with capital investment and concludes its a gold mine. He would fail economics 101. From revenues you have to deduct operating and maintenance costs, fees, taxes, debt service, etc to get an idea of payout or return on investment. If these are such gold mines, why do so many IPPs of all types fail in development? This long litany about Finavera's trials is meaningless - it is typical of new developers of many things including real estate and inventions.
SteveA
2 years ago
Power Purchase Agreements
Reading over the wording of these lucrative PPA's I am left wondering if there is anything that can be done about them by future Governments?
Is it possible that BC Hydro goes to a purchase scale of market price, instead of the overly inflated current price Gordo's paid supporters are now negotiating at the expense of ratepayers?
Could the IPP contracts be torn up in 2014?
Raif, couple questions you may be able to answer.
RickW
2 years ago
Could the IPP contracts be torn up in 2014?
Of course! But the government that tears them up will have to have the "intestinal fortitude" to stave off the inevitable legal assaults.
YCSTS
2 years ago
An Idiotic Waste of Money
So we have here over $800M (before cost overruns), for four Windfarms that will provide total 800 GWh annually. That's an average output of 91 MW. And typically these power estimates are on the high side, and ignore Wind Turbine maintenance downtime.
So that's at least $8800 per kw. With access roads, expensive long distance transmission lines, land entitlements and the ABSOLUTELY NECESSARY backup power paid for by the BC Taxpayer. Transmission lines alone will likely push that up over $10k per kw.
When Wind is low, as it usually is, expensive Hydro resources will have to be used to replace the lost Wind Power. These resources could otherwise supply high priced peak power. A major cost to the taxpayer. And in Spring when Wind & Hydro is highest, the surplus Wind Energy will result in Hydro Power thrown away, down the spillway, making the Wind Energy essentially worthless at those times. Add all these costs together and you are certainly going to be paying well over $12k per kw of delivered power.
At $100 million for 800 GWh annually, that's an additional cost of 12.5 cents per kwh, for BC Taxpayers. Plus the cost of backup Hydro and long distance Transmission lines & maintenance of all the above paid by BC taxpayers.
With low environmental impact Nuclear coming in at $1k to $5k per kw. Factory produced Nuclear, certainly under $2k per kw. With power costs of 2 to 5 cents per kwh. This Wind Energy is a stupid waste of money. And a tragic, worthless blight on the beautiful BC wilderness.
Skywalker
2 years ago
Good work Will? Again.
There must be something wrong, i mean illegal, with making BC Hydro pay so much for a commodity that the investment is better than the return on the sub prime mortgage scam before it went under. Are our laws so useless that there is nothing that protects us from con artists like Campbell & Co. When Campbell retires to be a director on all these companies he made it so easy for, will there be any recourse? We are not talking about mere lapses in ethics here. Some of these scams will leave us paying these carpetbaggers for decades.
Dennis Pirie
2 years ago
Seabreeze Power Corp
Check their website out. They also received a contract from B.C. Hydro for their Knob Hill windfarm on Vancouver Island. This is supossedly a Canadian company but the whole board of directors live in California! Sea Breeze has the windfarm on the northern end of the island and on the southern end, they, and another American company, Boundless Energy are building the Juan de Fuca Cable Project. This is the 550 megawatt line from Victoria to Port Angeles, Washington. If you look at all the comments from the governors, senators,and politicians in the U.S. all this power is strictly for their market. I have always read that Vancouver Island was short of power. Seabreeze is basically another company being used to import power from B.C. to the U.S.
North of Hope
2 years ago
The General Electric superfraud: Why the Hudson River will never
Check this report about General Electric. It appears they don't care about the environment, just money
http://www.harpers.org/archive/2009/12/0082753
North of Hope
2 years ago
Opps, it's closed
Opps, it's closed unless you subscribe. Here are the closing paragraphs.
PCBs have been a grave concern at Allendale for years due to positive test results in the gym and the schoolyard. The EPA repeatedly pledged that Hill 78 was a priority for cleanup, but when they settled on a remedy in 2000, it was clear the agency’s negotiations with GE had taken a turn. Hill 78’s toxic hoard wouldn’t be exhumed; it would be expanded.
“We were sick to our stomachs,” Gray recalled. “The risk assessments say kids growing up along the river have a much greater chance of getting cancer and non-cancer affects, and we’re gonna haul all the PCBs out of the river and we’re gonna put ’em on top of Hill 78? Excuse me? Fifty feet from Allendale?” The EPA sought to placate critics by announcing that the really problematic stuff would be housed in a brand-new toxic-waste repository, which also abutted Allendale Elementary.
“There’s a state law that says you can’t build a solid-waste dump within 1,000 feet of a school,” said Gray, still incredulous. “But you can build a toxic dump there? To us it was the biggest thing EPA gave up at the table. Why are they letting GE get away with this?”
The process by which a perfectly valid question is reduced to a rhetorical one has played out across the country in forgotten places still paying the toll levied by progress, towns that persist as emblems of industry’s missteps and noxious byproducts. The Hudson cleanup is itself furthering the creation of another such place in Andrews County, Texas, where the river’s dried sediments are being shipped by rail to a landfill that already houses nuclear waste. Environmentalists worry that the dump is dangerously near the Ogallala Aquifer, one of the world’s largest, which stretches all the way to South Dakota and supplies 30 percent of the groundwater used for irrigation in this country. GE and the EPA dismiss those concerns. The local Sierra Club’s objections to the plan are duly noted. But the county residents are, by all accounts, grateful for the employment opportunities and tax revenue the landfill provides.
In Pittsfield the grassroots forces pushed hard, demanding that regulators act to protect the public and the environment. For want of political will, the EPA allowed GE not only to leave its poisonous legacy intact but to build a monument to it at Allendale Elementary. Thirty miles to the west, well-placed interests called for a cleanup of the Hudson and fared little better, embracing a solution unworthy of the name that gives false comfort to the public while ignoring the mother lode of Pyranol still oozing out of the bedrock.
The river that once stood for a New World and a fledgling republic founded on freedom’s premise stands for us still. Although we’ve changed, the Hudson’s capacity to reflect our likeness remains, and in this mirror our corruption, greed, and ignorance are plainly visible."
SharingIsGood
2 years ago
RAFE check this Hook article
Ifear that the power companies are only part of the distruction and raping that is planned for this beautiful country:
http://thetyee.ca/Blogs/TheHook/Environment/2010/05/10/environmental-act-letter/
homegrown
2 years ago
Fumes
This stinks! Something is definitely rotten in the state of British Columbia and it somes from the Premier's office.
Stonebreaker
2 years ago
Big Renewables or Big Fossil?
Despite the headline and hyperbole in this story, GE is actually a very tiny player in BC's gigantic private power industry.
80% of the total energy produced in BC is fossil fuels extracted by dirty IPPs. We are talking Big Oil, Big Gas and Big Coal. There is definitely a "BC Private Power Gold Rush" -- black gold.
Conversely, ONLY 1% of BC total power production is private renewables. GE is definitely a growing player in this weenie 1% of BC's power production industry.
The article is correct that GE is usually listed in the top 10 corporations in the world. What it leaves out is that most of the rest of the top 10 are Big Fossil.
Here are the Forbes top 7 by PROFIT:
1: ExxonMobil
2: Gazprom
3: Royal Dutch Shell
4: Chevron
5: BP
6: PetroChina
7: GE
Hmmm, which am I more freaked out about:
-- Big Fossil that totally dominates BC power landscape and who's products are driving the planet's ecosystems into collapse from climate shocks?
OR
-- Big Renewable that make up a tiny part of BC power landscape and who's products can be used to fuel switch our dirty petro-society to?
Can we take a short break from relentless attacks on Big Renewables and have finally have a few Tyee articles about the real threat to BC society and ecosystems -- Big Fossil? How much longer is the Tyee going to try to pretend the Fossil Elephant isn't the dangerous beast in the room?
Frank
2 years ago
Big Oil
I thought we didn't use gasoline any more since we got the carbon tax?
Are you telling me we're still using fossil fuels? Surely that's in decline though, isn't it?
Frank
2 years ago
"Big Renewables"
That phrase sounds kinda nice, unfortunately rivers are not "renewable". You clear the forest, build your dams and voila, the fish are wiped out as is anything relying on their existence.
Sometimes, stonebreaker, you sound like a Run-of-River shill.
Stonebreaker
2 years ago
Yes, Big Oil is the problem
Frank, you make my point very nicely. Big Oil use is not declining fast enough in BC to meet our legal and moral requirement to cut all fossil fuel emissions by 90% per person.
Clearly the carbon tax isn't enough. What now?
Big Oil is by far the largest source of energy that BC society runs on. We import more Big Oil energy than all the clean energy that BC Hydro produces. How does BC break that dirty, dangerous and expensive habit in time to save our rivers?
I think we need some more non-fossil energy to switch some of our petro-society over too. We have over 100,000GWh of BigOil energy we need to walk away from soon.
As I said, if I have to choose between "Big Renewables" and "Big Oil", I'll happily choose renewable energy like public hydro projects...or even private hydro projects.
Perhaps you would like to explain how you think BC gets off Big Oil and Big Fossil without big new renewable projects?
Or maybe you want to just avoid the issue and keep calling me names of one kind or another. How about a discussion of the actual issue of how BC society gets off Big Fossil in time?
Frank
2 years ago
Sonebreaker
Big oil use is not declining fast enough? Is it declining at all? I heard our use of it grew. Is that right? The carbon tax is therefore a failure and has done nothing but increase taxation on lower incomes.
And unlike you if I had to choose between what you call "Big Renewables" (destroying rivers and habitat) or "Big Oil", I'll stay with Big Oil thank you. Oil hurts the environment less than loss of rivers.
You're the only person that thinks pouring cement into a river is better than burning gasoline.
Personally I think we'd be better off if we shut down the IPPs, kept our rivers in great shape and instead burned fossil fuels.
And with all that money we'd save by not subsidizing IPPs we could get rid of the carbon tax and other gas taxes and help the little guy in this province.
YCSTS
2 years ago
Big Oil and Big Renewables are partners
Stonebreaker, do you seriously believe Renewables will significantly effect our dependence on fossil fuels. Big Oil have been EXTRAVAGANT promoters of Renewable Energy, as part of their VERY SUCCESSFUL Bait-And-Switch campaign. They know damn well that money spent on Renewables is just precious capital thrown down the sewer and won't do zip to reduce our reliance on fossil fuels.
See the graph of the Renewable Energy Champion of the World, Germany's primary energy consumption:
http://www.iea.org/stats/pdf_graphs/DETPES.pdf
See the tiny little red line on top - that's Germany’s Solar & Wind, with ½ the World’s Solar PV installed, with Feed-in-tariffs of 60 cents per kwh for Solar and 20 cents per kwh for Wind, plus Power Transmission paid by the Public plus up to $300 million for 15 yrs of credit per project. Note that almost all electric power generation comes from the zero effort Nuclear, or GHG belching sources. So where is the big drop in Fossil Fuel Energy caused by a Rich Western Nation on a money-no-object Renewable Energy Binge? How are developing nations, where most fossil fuel growth is, going to do >10X better than Germany has done, as must be done?
See the graph of France's total primary energy consumption.
http://www.iea.org/stats/pdf_graphs/FRTPES.pdf
See that big fat yellow line - that's green Nuclear Power. The result of France's mediocre effort on Nuclear. Note almost all Electricity from Nuclear, also Hydro, almost all Green Sources.
Result:
Germany's Carbon intensity = 601 gm CO2 per kwh
France's Carbon intensity = 83 gm CO2 per kwh
http://www.inference.phy.cam.ac.uk/withouthotair/cI/page_335.shtml
James Lovelock, the world’s foremost environmentalist: "...Windfarms won't cut it at all," he said. "It's better than doing nothing, but i''s absurd, just gestures. Time is of the essence..."
http://www.ecolo.org/lovelock/lovelock-wind-power.html
Peter Lang shows that the CO2 AVOIDANCE COSTS OF WIND, including necessary backup are $830 to $1149 per tonne CO2 avoided, vs Nuclear at $22 per tonne CO2 avoided, compared with a standard Black Coal Power plant:
http://www.wind-watch.org/documents/wp-content/uploads/lang-wind-power-co2-emissions.pdf
#1 Wind Energy country, Denmark has the highest power rates in Europe and produces the highest CO2 emissions of 881 gm CO2 per kwh of electricity, #2 Wind Power Germany produces 601 gm CO2 per kwh, while Nuclear France produces 83 gm CO2 per kwh.
Denmark is going to have to start PAYING other countries to take it's Wind Energy:
http://www.nordpoolspot.com/Market_Information/Exchange-information/No162009-Nord-Pool-Spot-implements-negative-price-floor-in-Elspot-from-October-2009-/
skeletor
2 years ago
nuclear?
ok China is building nuclear plants for just over 2$ per Kwh. Site C is something like 10$ per Kwh? someone correct me on that. I am not worries about the dangers of nuclear power plants since the technology has vastly increased since the junk of the cold war. Had most countries not been scared of them the technology would have advanced further. The Cando reactors can even burn the spent fuel (waste) of the normal heavy water technology reactors. Nuclear really is the answer if we want to get off the Carbon diet in a serious way. Only problem is we have no idea what to do with the waste! We have no plan. The USA had a plan then scrapped it. I would be happy to go nuclear if we had a decent solution. Until then though I am not willing to build a nuclear infrastructure and leave the solution up to my kids. We've got enough short term thinking around with debt financing passing on the tax we are too scared to pay now onto our kids to add on " oh by the way not only do you have to pay the taxes I didn't want to pay (plus interest), you have to find a solution for what to do with the toxic waste from the energy I used. oh and I'll leave my pension vastly under funded so you can top up my pension when I'm retired."
Its all on the table for me folks I think we need to look at everything but we have to think things through long term! Energy isn't free each type has a different cost (capital, operational, environmental) Do we eat the costs of carbon? Do we eat the capital and environmental costs of hydro or do we pass on the toxic dilemma to our kids?
I am just nervous not knowing what to do with toxic waste. How much with that end up costing to store for hundreds of years? Maybe that ends up being more than our other options but without even having a plan we cant even guess the final costs and thus cannot do a proper cost analysis of nuclear.
Ronald Pagan
2 years ago
nuclear
Nuclear will no doubt be a part of the solution as they provide ultra-reliable baseload. For BC, a nuclear base with heritage hydro peak supply would probably be the lowest cost alternative.
Too bad that nuclear is such a non-starter for most people. There needs to be some honest discussion on the electricity system of the future and the tradeoffs.
Takuan
2 years ago
nuclear is fine
so long as the plants are in Alberta
SteveA
2 years ago
IPP Failures?
Perhaps John Hunter would be so kind to provide readers with some examples of IPP's that "fail in development"?
WE hear about the high risks private power producers take on, but more prevelant is the excessive profits made by the Epcors out there on the backs of BC ratepayers.
While your researching that for us John, you may peruse back issues of Pique Newsmagazine where you lost a $100.wager that has yet to be paid up.
Wouldn't want to be an industry shrill AND a welcher, would you?
seth
2 years ago
nuclear waste
If you drained Lake Erie you could fill it forty feet higher every year with coal ash from Canada and the US
All the world's nuclear waste would fit on a football field buried 40 feet deep in a concrete containment casks, 28 miles from shore in the middle of that Lake Erie sized toxic radioactive waste dripping pile of coal ash
One football field ruined forever or hundreds of sq miles of tars sands for oil, 100's of sq miles of forest and farmland for hydro, and ten of thousand of sq miles for coal. Seems simple doesn't.
Nuclear waste is valuable nuclear fuel for the Gen IV reactors in service and planned around the world except the USA.
After powering the world on existing nuclear waste for hundreds of years the tiny amount of low level waste from these units would fit in a toolshed, stored for 30 40 years then burned up in a fusion reactor.
I assume skeleton is now a big advocate of nuclear power.
happy
2 years ago
IPP failures
I can think of a couple off the top. There was Rainy River in my neighbourhood on the Sunshine Coast, denied due to fish being found where the runs had been previously destroyed generations ago by logging.
And more recently the Klinaklini b/c of park status. Thats what Rafe wanted.
http://thetyee.ca/Views/2009/05/25/FightForOurFish/
G West
2 years ago
Sounds like progress to me happy
How many more can we encourage to fail in the next 12 months?
happy
2 years ago
I don't care how many fail as long as the rules are followed
I'm not getting into the politics of it, thats an unending argument. I just want to see that these installations are built to the highest standards to protect the enviroment from more degradation than is already there.
Of COURSE there will be some impact, everything we do causes some impact, but we know enough nowadays to mitigate all known risks. Like fish habitat.
Rainy River and the Klinaklini show me the system works.
Thats where I take exceptiion to the wailing of "mass destruction" taking place in the woods. If Rafe at al were so concerned then take on the logging industry and shut that down. Ask Rafe how many fish there are in Harvey creek that runs right beside his condo. The run was cleaned out many many years ago by one of the biggest clear cuts I've ever seen on the Lions.
Thats my version of mass destruction in the woods.
happy
2 years ago
To the Management
OK Beers. How much is it going to cost me/us to get an edit function installed here. I'm not as dumb as I come off with my constant grammer and spelling mistakes which for some unknown reason I never see until they're posted past the point of no return.
Lets get the Tyee up to speed!
seth
2 years ago
klinakina
They vill be BACK!!!
Once that campaign donation misunderstanding is taken care of it will be found that a modified proposal avoids park boundaries.
happy
2 years ago
Seth
So why didn't that happen already with the Pitt River application then? It's in a park. That was denied long before the current troubles of the governmant.
And on that note add Pitt River to the list of failed applications. Missed it first time around. Thanks Seth for jogging my memory.