Bill will force N.B. Power to buy pricier electricity from small modular reactors
Power from first 2 nuclear units will be exempt from requirement utility buy cheapest supply available
Legislation introduced this week would not only exempt the first two SMRs from an existing law that forces the corporation to buy the cheapest source possible.
It goes further, requiring the utility to choose nuclear-generated electricity once the reactors are up and running.
Energy Minister Mike Holland said the first units built by ARC Clean Energy and Moltex Energy Canada will be more expensive to produce than subsequent units.
Energy
Minister Mike Holland says electricity purchases from any subsequent
ARC or Moltex reactors would be subject to the usual lowest-cost
requirement. (Jacques Poitras/CBC)
As a result, the cost of the electricity they generate would likely be too expensive, given N.B. Power's legal requirement to buy power at the lowest possible cost.
"Therefore the utility would be precluded from buying it," Holland said.
"This legislation allows them to purchase that, even though it doesn't fit within that requirement of the least-cost option."
In fact, the amendment goes further than "allowing" the utility to buy power from the first two SMRs. It says N.B. Power "shall ensure" that some of its electricity comes from the units.
Electricity purchases from any subsequent ARC or Moltex reactors would be subject to the usual lowest-cost requirement, Holland said.
Green Leader David Coon says forcing N.B. Power to buy more expensive electricity is another reason to question the wisdom of SMRs.
"I think it's a recognition from government that they're uneconomic, that the power will be unaffordable," he said.
Green
Party Leader David Coon says it remains to be seen what effect the law
will have on the EUB's role in approving N.B. Power rates. (Jacques Poitras/CBC)
Coon called it bizarre for the government to order the utility to buy electricity from a specific kind of technology and pointed out the legislation will give the provincial cabinet the power to set the maximum price N.B. Power can pay.
The Green leader said it remains to be seen what effect the law will have on the Energy and Utilities Board's role in approving the rates N.B. Power charges to customers.
ARC Clean Energy said earlier this year that its first 100-megawatt SMR will be ready to operate at Point Lepreau, west of Saint John, by 2030.
Moltex Energy Canada's proposed SMR, also to be located at Lepreau, would generate 300 megawatts, but is not expected to be up and running by that date.
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Wed, Feb 17, 2021, 9:00AM Nuclear News
New Brunswick Premier Blaine Higgs announces C$20 million in funding for the ARC-100 small modular reactor. Photo: ARC Canada
The Canadian province of New Brunswick has awarded C$20 million (about $15.7 million) to ARC Clean Energy Canada (ARC Canada) to support the development of the proposed ARC-100 advanced small modular reactor. The premier of New Brunswick, Blaine Higgs, announced the award during his state of the province address on February 10.
ARC Canada, headquartered in Saint John, New Brunswick, is a subsidiary of U.S.-based ARC Clean Energy, formerly known as Advanced Reactor Concepts. The company’s ARC-100 is a 100-MWe integrated sodium-cooled fast reactor that uses a metallic uranium alloy fuel. Based on Argonne National Laboratory’s Experimental Breeder Reactor-II, the reactor is designed to operate for 20-plus years without refueling.
In October 2019, ARC Canada announced that it had completed the first phase of the Canadian Nuclear Safety Commission’s (CNSC) vendor design review. (While the phase-one assessment provides detailed feedback regarding a vendor’s understanding of the CNSC’s requirements for a nuclear power plant in Canada, it does not certify the design or license the reactor.)
ARC covenants: ARC Clean Energy—along with U.K.-based Moltex Energy, developer of the Moltex Stable Salt Reactor—received C$5 million (about $3.9 million) from New Brunswick in 2018 as part of an agreement to work on SMR development in the province. The agreement also envisioned the deployment of ARC and Moltex demonstration units by 2030 at NB Power’s Point Lepreau plant, currently home to one 660-MWe CANDU-6 pressurized heavy-water reactor.
What they’re saying: “The $20 million of funding being provided by the province of New Brunswick is conditioned on ARC Canada providing matching funding to increase economic impact,” said Donald Wolf, ARC Canada’s chairman. “ARC Canada intends to obtain the required C$30 million of matching funds from private investors. This funding milestone will play an integral role in the deployment of our proven, inherently safe clean energy technology in the late 2020s.”
Mike Holland, New Brunswick’s natural resources and energy development minister, added, “We believe that the best way to ensure that Canada, specifically New Brunswick, becomes a leader in advanced small modular reactor development and deployment is through continued engagement and partnerships. We feel that this technology can be developed in New Brunswick, putting our province on the map as a global emissions reduction leader.”
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Comprehensive review will take place for small modular reactor project
03 August 2023
FREDERICTON (GNB) – Environment and Climate Change Minister Gary Crossman has determined a comprehensive Environmental Impact Assessment (EIA) is needed for a proposed small modular reactor project at the NB Power property on the Lepreau Peninsula.
“The EIA review process is a long-standing mechanism for the environmental review of projects in New Brunswick,” said Crossman. “The technology behind small nuclear reactors is new and that is why it is important to have such a thorough review.”
NB Power, with support from ARC Clean Technology Inc., is planning the construction and operation of one advanced small modular reactor to the west of the existing Point Lepreau Nuclear Generating Station.
“To transition to a cost-effective, clean and secure energy supply, we are exploring new ways of delivering energy to customers,” said Lori Clark, CEO of NB Power. “Small modular reactors are part of the solution to reach our target of being net-zero by 2035 and ensure that we are meeting the needs of New Brunswickers today and into the future.”
New Brunswick Power (NB Power), in partnership with ARC Clean Technology Canada, is proposing to deploy one ARC-100 small modular reactor (SMR) at the Point Lepreau Nuclear Generating Station site in New Brunswick. In June 2023, CNSC staff received an application for a licence to prepare site for the proposed SMR, and the application is currently undergoing regulatory review under the Nuclear Safety and Control Act, which will include an environmental protection review.
The proposed project is also undergoing a comprehensive environmental impact assessment (EIA) by the Government of New Brunswick. CNSC staff are providing technical support throughout the provincial EIA process as members of the Technical Review Committee.
Minister says momentum growing for non-emitting technology
SMRs are new technology in the nuclear power sphere. A single small modular reactor is capable of producing 300 megawatts
Moe Qureshi, the CCNB’s manager of climate solutions, said the IRP focused heavily on SMRs despite their relative newness and left out a key component to using them in the future – the cost
“Every pathway shows that SMRs are needed towards getting to net zero but what was strange was a lot of data was missing to justify some of these claims, primarily the cost of SMRs,” he said
The IRP shows 16 pathways to getting New Brunswick to net-zero emissions by the target year, but a report by Energy + Environment Economics shows SMRs are the most expensive option
In fact, Qureshi said data shows it can take up to a decade to develop a single SMR and the cost for a 300-megawatt SMR is almost $2.1 billion
“We really expect some lower-cost options to be pushed forward rather than expensive ones,” he said in an interview on Thursday
He said considering NB Power’s overwhelming debt and the levels of energy poverty in both New Brunswick and Atlantic Canada, he expected more rigorous inspection of the cost associated with this type of solution
As of 2023, NB Power has $5.4 million in debt
It also applied to the Energies and Utilities Board for a nearly nine per cent rate hike for customers across all rate classes, citing ongoing inflationary costs and buying power.
It said at the time that the hike wouldn’t be enough to begin servicing the debt.
“It’s weird to put so much faith into something that we don’t know if it will work,” Qureshi said.
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