Off Coal: A Conversation with Avik Dey of Capital Power
Jul 9, 2024
auto_awesome
Avik Dey, CEO of Capital Power, discusses clean electricity, coal phase-out, SMRs in Alberta, Texas vs. Alberta renewables, AI data center demand, canceled CCS project, investing in new natural gas generation, Quebec's renewable project plans. The podcast explores power generation transitions, energy mix challenges, nuclear energy safety, and comparisons between Texas and Alberta in renewable energy adoption.
Transitioning from coal to diversified energy sources enhances growth and decarbonization efforts.
Exploring small modular reactors in partnership with OPG for clean electricity generation in Alberta.
Balancing reliability, affordability, and clean energy goals requires diverse approaches and collaboration among stakeholders.
Deep dives
Expansion of CCS Projects in Western Canada
Recent developments in Western Canada have seen an increase in carbon capture and storage (CCS) projects. Shell's decision to proceed with a 650,000 ton per year CCS project in Scotford adds to the significant carbon storage efforts already in place, totaling about 4 million tons annually. Additionally, the construction of two other CCS sites and the role of clean fuel regulations signal growth in the clean energy sector, offering economic benefits and job opportunities across the region.
Transition from Coal to Diversified Energy Sources
Capital Power, a major independent power producer, has successfully transitioned from coal-fired generation to a diversified mix of natural gas, renewables, and battery storage over the past 15 years. This shift, accompanied by tripling capacity and strong financial performance, highlights the company's commitment to decarbonization while maintaining growth and shareholder returns.
Exploring Nuclear Power Potential with OPG Partnership
Capital Power's partnership with Ontario Power Generation (OPG) aims to explore the viability of small modular reactors (SMRs) for reliable, clean electricity generation in Alberta. This collaboration emphasizes safety, efficiency, and technological advancements in nuclear power, laying the foundation for a potential nuclear industry in the province. The initiative aims to address economic, regulatory, and infrastructural considerations for establishing a sustainable nuclear energy sector.
Challenges and Opportunities in Clean Energy Transition
The evolving energy landscape poses challenges in balancing reliability, affordability, and clean energy goals. The emphasis on achieving a net-zero world necessitates diverse approaches, including partial or full decarbonization strategies tailored to specific electricity markets. With advancements in technologies like natural gas, small modular reactors, and clean fuel initiatives, the path towards cleaner, more affordable, and reliable energy systems requires collaborative efforts among stakeholders to navigate market dynamics and policy frameworks.
Policy Implications and Market Dynamics in Renewable Investment
Policy frameworks like the Canadian Electricity Regulation (CER) impact investment decisions in renewables and natural gas generation. Uncertainties around carbon pricing, government regulations, and renewable energy mandates influence the feasibility of projects, such as carbon capture initiatives. The balance between achieving clean energy targets, addressing demand growth, and ensuring cost-effective solutions underscores the need for flexible, market-specific approaches to energy transition and infrastructure development.
This week, on our Calgary Stampede podcast edition, our guest is Avik Dey, President and Chief Executive Officer of Capital Power. Capital Power is a publicly traded North American power producer headquartered in Edmonton, Alberta. Capital Power owns renewable and thermal power generation facilities, totaling over 9 GW of power generation capacity across 32 facilities.
Here are some of the questions Peter and Jackie asked Avik: Is it possible to deliver clean, reliable, and affordable electricity? Does Capital Power currently generate any electricity from coal? Do you expect small modular reactors (SMRs) to be built in Alberta in the future? Texas generates a greater share of its electricity from renewables than Alberta, yet Alberta is hitting the brakes on renewable development – how is Texas managing the increase in renewables, and what can Alberta learn? Are you concerned by the potential for rapid growth in electricity demand to fuel AI data centers in Alberta? Why did Capital Power recently cancel its proposed $2.4 billion Carbon Capture and Storage (CCS) Genesee project in Alberta? Considering the draft Clean Electricity Regulations, would you still invest in new natural gas generation in Canada? Any comments on Quebec’s plan to build and operate large-scale renewable projects in the province versus procuring the power from independent power producers?
