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Energy

World’s Most Populous Nation Has Put Solar Out To Pasture. Other Countries Should Follow Suit

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From the Daily Caller News Foundation

By VIJAY JAYARAJ

 

During his debate with former President Donald Trump, President Joe Biden claimed: “The only existential threat to humanity is climate change.” What if I told you that it is not climate change but climate policies that are the real existential threat to billions across our planet?

The allure of a green utopia masks the harsh realities of providing affordable and reliable electricity. Americans could soon wake up to a dystopian future if the proposed Net Zero and Build Back Better initiatives — both aimed at an illogical proliferation of unreliable renewables and a clamp down on dependable fossil fuels — are implemented.

Nowhere is this better reflected than in remote regions of India where solar panels — believed to provide clean and green energy — ultimately resulted in being used to construct cattle sheds.

The transformation of Dharnai in the state of Bihar into a “solar village” was marked by great enthusiasm and high expectations. Villagers were told the solar micro-grid would provide reliable electricity for agriculture, social activities and daily living. The promise engendered a naïve trust in a technology that has failed repeatedly around the world.

The news of this Greenpeace initiative quickly spread as international news media showcased it as a success story for “renewable” energy in a third world country. CNN International’s “Connect the World” said Dharnai’s micro-grid provided a continuous supply of electricity. For an unaware viewer sitting in, say, rural Kentucky, solar energy would have appeared to be making great strides as a dependable energy source.

But the Dharnai system would end up on the long list of grand solar failures.

“As soon as we got solar power connections, there were also warnings to not use high power electrical appliances like television, refrigerator, motor and others,” said a villager. “These conditions are not there if you use thermal power. Then what is the use of such a power? The solar energy tariff was also higher compared to thermal power.”

village shopkeeper said: “But after three years, the batteries were exhausted and it was never repaired. … No one uses solar power anymore here.” Hopefully, the solar panels will last longer as shelter for cows.

Eventually, the village was connected to the main grid, which provided fully reliable coal-powered electricity at a third of the price of the solar power.

Dharnai is not an isolated case. Several other large-scale solar projects in rural India have had a similar fate. Writing for the publication Mongabay, Mainsh Kumar said: “Once (grid) electricity reaches unelectrified villages, the infrastructure and funds used in installation of such off-grid plants could prove futile.”

While green nonprofits and liberal mainstream media have the embarrassment of a ballyhooed solar project being converted to cattle shed, conventional energy sources like coal continue to power India’s over 1.3 billion people and the industries their economies depend on.

India saw a record jump in electricity demand this year, partly due to increased use of air conditioning units and other electrical appliances as more of the population achieved the financial wherewithal to afford them. During power shortages, coal often has come to the rescue. India allows its coal plants to increase coal stockpiles and import additional fuel without restrictions.

India will add more than 15 gigawatts in the year ending March 2025 (the most in nine years) and aims to add a total of 90 gigawatts of coal-fired capacity by 2032.

Energy reality is inescapable in a growing economy like India’s, and only sources such as coal, oil and natural gas can meet the demand. Fossil fuels can be counted on to supply the energy necessary for modern life, and “green” sources cannot.

India’s stance is to put economic growth ahead of any climate-based agenda to reduce the use of fossil fuels. This was reaffirmed when the country refused to set an earlier target for its net zero commitment, delaying it until 2070.

The story of Dharnai serves as a cautionary tale for the implementation of renewable energy projects in rural India, where pragmatism is the official choice over pie in the sky.

Vijay Jayaraj is a Research Associate at the CO2 Coalition, Arlington, Virginia. He holds a master’s degree in environmental sciences from the University of East Anglia, UK.

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Business

Premiers fight to lower gas taxes as Trudeau hikes pump costs

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From the Canadian Taxpayers Federation

By Jay Goldberg 

Thirty-nine hundred dollars – that’s how much the typical two-car Ontario family is spending on gas taxes at the pump this year.

You read that right. That’s not the overall fuel bill. That’s just taxes.

Prime Minister Justin Trudeau keeps increasing your gas bill, while Premier Doug Ford is lowering it.

Ford’s latest gas tax cut extension is music to taxpayers’ ears. Ford’s 6.4 cent per litre gas tax cut, temporarily introduced in July 2022, is here to stay until at least next June.

Because of the cut, a two-car family has saved more than $1,000 so far. And that’s welcome news for Ontario taxpayers, because Trudeau is planning yet another carbon tax hike next April.

Trudeau has raised the overall tax burden at the pumps every April for the past five years. Next spring, he plans to raise gas taxes by another three cents per litre, bringing the overall gas tax burden for Ontarians to almost 60 cents per litre.

While Trudeau keeps hiking costs for taxpayers at the pumps, premiers of all stripes have been stepping up to the plate to blunt the impact of his punitive carbon tax.

Obviously, Ford has stepped up to the plate and has lowered gas taxes. But he’s not alone.

In Manitoba, NDP Premier Wab Kinew fully suspended the province’s 14 cent per litre gas tax for a year. And in Newfoundland, Liberal Premier Andrew Furey cut the gas tax by 8.05 cents per litre for nearly two-and-a-half years.

It’s a tale of two approaches: the Trudeau government keeps making life more expensive at the pumps, while premiers of all stripes are fighting to get costs down.

Families still have to get to work, get the kids to school and make it to hockey practice. And they can’t afford increasingly high gas taxes. Common sense premiers seem to get it, while Ottawa has its head in the clouds.

When Ford announced his gas tax cut extension, he took aim at the Liberal carbon tax mandated by the Trudeau government in Ottawa.

Ford noted the carbon tax is set to rise to 20.9 cents per litre next April, “bumping up the cost of everything once again and it’s absolutely ridiculous.”

“Our government will always fight against it,” Ford said.

But there’s some good news for taxpayers: reprieve may be on the horizon.

Federal Conservative leader Pierre Poilievre’s promises to axe the carbon tax as soon as he takes office.

With a federal election scheduled for next fall, the federal carbon tax’s days may very well be numbered.

Scrapping the carbon tax would make a huge difference in the lives of everyday Canadians.

Right now, the carbon tax costs 17.6 cents per litre. For a family filling up two cars once a week, that’s nearly $24 a week in carbon taxes at the pump.

Scrapping the carbon tax could save families more than $1,200 a year at the pumps. Plus, there would be savings on the cost of home heating, food, and virtually everything else.

While the Trudeau government likes to argue that the carbon tax rebates make up for all these additional costs, the Parliamentary Budget Officer says it’s not so.

The PBO has shown that the typical Ontario family will lose nearly $400 this year due to the carbon tax, even after the rebates.

That’s why premiers like Ford, Kinew and Furey have stepped up to the plate.

Canadians pay far too much at the pumps in taxes. While Trudeau hikes the carbon tax year after year, provincial leaders like Ford are keeping costs down and delivering meaningful relief for struggling families.

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Economy

Gas prices plummet in BC thanks to TMX pipeline expansion

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From Resource Works

By more than doubling capacity and cutting down the costs, the benefits of the TMX expansion are keeping more money in consumer pockets. 

Just months after the Trans Mountain Expansion (TMX) project was completed last year, Canadians, especially British Columbians, are experiencing the benefits promised by this once-maligned but invaluable piece of infrastructure. As prices fall when people gas up their cars, the effects are evident for all to see.

This drop in gasoline prices is a welcome new reality for consumers across B.C. and a long-overdue relief given the painful inflation of the past few years.

TMX has helped broaden Canadian oil’s access to world markets like never before, improve supply chains, and boost regional fuel supplies—all of which are helping keep money in the pockets of the middle class.

When TMX was approaching the finish line after the new year, it was praised for promising to ease long-standing capacity issues and help eliminate less efficient, pricier methods of shipping oil. By mid-May, TMX was completed and in full swing, with early data suggesting that gas prices in Vancouver were slackening compared to other cities in Canada.

Kent Fellows, an assistant professor of Economics and the Director of Graduate Programs for the School of Public Policy at the University of Calgary, noted that wholesale prices in Vancouver fell by roughly 28 cents per litre compared to the typically lower prices in Edmonton, thanks to the expanded capacity of TMX. Consequently, the actual price at the gas pump in the Lower Mainland fell too, providing relief to a part of Canada that traditionally suffers from high fuel costs.

In large part due to limited pipeline capacity, Vancouver’s gas prices have been higher than the rest of the country. From at least 2008 to this year, TMX’s capacity was unable to accommodate demand, leading to the generational issue of “apportionment,” which meant rationing pipeline space to manage excess demand.

Under the apportionment regime, customers received less fuel than they requested, which increased costs. With the expansion of TMX now complete, the pipeline’s capacity has more than doubled from 350,000 barrels per day to 890,000, effectively neutralizing the apportionment problem for now.

Since May, TMX has operated at 80 percent capacity, with no apportionment affecting customers or consumers.

Before the TMX expansion was completed, a litre of gas in Vancouver cost 45 cents more than a litre in Edmonton. By August, it was just 17 cents—a remarkable drop that underscores why it’s crucial to expand B.C.’s capacity to move energy sources like oil without the need for costly alternatives, allowing consumers to enjoy savings at the pump.

More than doubling TMX’s capacity has rapidly reshaped B.C.’s energy landscape. Despite tensions in the Middle East, per-litre gas prices in Vancouver have fallen from about $2.30 per litre to $1.54 this month. Even when there was a slight disruption in October, the price only rose to about $1.80, far below its earlier peaks.

As Kent Fellows noted, the only real change during this entire timeline has been the completion of the TMX expansion, and the benefits extend far beyond the province’s shores.

With TMX moving over 500,000 barrels more per day than it did previously, Canadian oil is now far more plentiful on the international market. Tankers routinely depart Burrard Inlet loaded with oil bound for destinations in South Korea and Japan.

In this uncertain world, where oil markets remain volatile, TMX serves as a stabilizing force for both Canada and the world. People in B.C. can rest easier with TMX acting as a barrier against sharp shifts in supply and demand.

For critics who argue that the $31 billion invested in the project is short-sighted, the benefits for everyday people are becoming increasingly evident in a province where families have endured high gas prices for years.

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