Electricity News in July 2021
Sierra Club: Governor Abbott's Demands Would Leave Texas More Polluted and Texans in the Dark
Texas Energy Policy Debate centers on ERCOT and PUC directives, fossil fuels vs renewables, grid reliability, energy efficiency, battery storage, and blackout risks, shaping Texas power market rules, conservation alerts, and capacity planning.
Key Points
Policy fight over ERCOT/PUC rules weighing fossil fuels vs renewables and storage to bolster Texas grid reliability.
✅ ERCOT and PUC directives under political scrutiny
✅ Fossil fuel subsidies vs renewable incentives and storage
✅ Focus on grid reliability, efficiency, and blackout prevention
Earlier this week, Governor Abbott released a letter to the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT), demanding electricity market reforms that Abbott falsely claims will "increase power generation capacity and to ensure the reliability of the Texas power grid."
Unfortunately, Abbott's letter promotes polluting, unreliable fossil fuels, attacks safer clean energy options, and ignores solutions that would actually benefit everyday Texans.
"Governor Abbott, in a blatant effort to politicize Texans' energy security, wants to double down on fossil fuels, even though they were the single largest point of failure during both February's blackouts and June's energy conservation alerts," said Cyrus Reed, Interim Director & Conservation Director of the Lone Star Chapter of the Sierra Club.
"Many of these so-called solutions were considered and rejected most recently by the Texas Legislature. Texas must focus on expanding clean and reliable renewable energy, energy efficiency, and storage capacity, as voters consider funding to modernize generation in the months ahead.
"We can little afford to repeat the same mistakes that have failed to provide enough electricity where it is needed most and cost Texans billions of dollars. Instead of advocating for evidence-based solutions, Abbott wants to be a culture warrior for coal and gas, even as he touts grid readiness amid election season, even when it results in blackouts across Texas."
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Cabinet Of Ministers Of Ukraine - Prime Minister: Our Goal In The Energy Sector Is To Synchronize Ukraine's Integrated Power System With Entso-e
Ukraine's EU Energy Integration aims for ENTSO-E synchronization, electricity market liberalization, EU Green Deal alignment, energy efficiency upgrades, hydrogen development, and streamlined grid connections to accelerate reform, market pricing, and sustainable growth.
Key Points
Ukraine's EU Energy Integration syncs with ENTSO-E, liberalizes power markets, and aligns with the EU Green Deal.
✅ ENTSO-E grid synchronization and cross-border trade readiness
✅ Electricity market liberalization and market-based pricing
✅ EU Green Deal alignment: efficiency, hydrogen, coal regions
Ukraine's goal in the energy sector is to ensure the maximum integration of energy markets with EU markets, and in line with the EU plan to dump Russian energy that is reshaping the region, synchronization of Ukraine's integrated energy system with ENTSO-E while leaning on electricity imports as needed to maintain stability. Prime Minister Denys Shmyhal emphasized in his statement at the Fourth Ukraine Reform Conference underway through July 7-8 in Vilnius, the Republic of Lithuania.
The Head of Government presented a plan of reforms in Ukraine until 2030. In particular, energy sector reform and environmental protection, according to the PM, include the liberalization of the electricity market, with recent amendments to the market law guiding implementation, the simplification of connection to the electrical grid system and the gradual transition to market electricity prices, alongside potential EU emergency price measures under discussion, and the monetization of subsidies for vulnerable groups.
"Ukraine shares and fully supports the EU's climate ambitions and aims to synchronize its policies in line with the EU Green Deal, including awareness of Hungary's energy alignment with Russia to ensure coherent regional planning. The interdepartmental working group has determined priority areas for cooperation with the European Union: energy efficiency, hydrogen, transformation of coal regions, waste management," said the Prime Minister.
According to Denys Shmyhal, Ukraine has supported the EU's climate ambitions to move towards climate-neutral development by 2050 within the framework of the European Green Deal and should become an integral part of it in order not only to combat the effects of climate change in synergy with the EU but, as the country prepares for winter energy challenges and strengthens resilience, within the economic strategy development aimed to enhance security and create new opportunities for Ukrainian business, with continued energy security support from partners bolstering implementation.
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Abu Dhabi seeks investors to build hydrogen-export facilities
ADNOC Hydrogen Export Projects target global energy transition, courting investors and equity stakes for blue and green hydrogen, ammonia shipping, CCS at Ruwais, and long-term supply contracts across power, transport, and industrial sectors.
Key Points
ADNOC plans blue and green hydrogen exports, leveraging Ruwais, CCS, and ammonia to secure long-term supply.
✅ Blue hydrogen via gas reforming with CCS; ammonia for shipping.
✅ Green hydrogen from solar-powered electrolysis under development.
✅ Ruwais expansions and Fertiglobe ammonia tie-up target long-term supply.
Abu Dhabi is seeking investors to help build hydrogen-export facilities, as Middle Eastern oil producers plan to adopt cleaner energy solutions, sources told Bloomberg.
Abu Dhabi National Oil Company (ADNOC) is holding talks with energy companies for them to purchase equity stakes in the hydrogen projects, the sources referred, as Germany's hydrogen strategy signals rising import demand.
ADNOC, which already produces hydrogen for its refineries, also aims to enter into long-term supply contracts, as Canada-Germany clean energy cooperation illustrates growing cross-border demand, before making any progress with these investments.
Amid a global push to reduce greenhouse-gas emissions, the state-owned oil companies in the Gulf region seek to turn their expertise in exporting liquid fuel into shipping hydrogen or ammonia across the world for clean and universal electricity needs, transport, and industrial use.
Most of the ADNOC exports are expected to be blue hydrogen, created by converting natural gas and capturing the carbon dioxide by-product that can enable using CO2 to generate electricity approaches, according to Bloomberg.
The sources said that the Abu Dhabi-based company will raise its production of hydrogen by expanding an oil-processing plant and the Borouge petrochemical facility at the Ruwais industrial hub, supporting a sustainable electric planet vision, as the extra hydrogen will be used for an ammonia facility planned with Fertiglobe.
Abu Dhabi also plans to develop green hydrogen, similar to clean hydrogen in Canada initiatives, which is generated from renewable energy such as solar power.
Noteworthy to mention, in May 2021, ADNOC announced that it will construct a world-scale blue ammonia production facility in Ruwais in Abu Dhabi to contribute to the UAE's efforts to create local and international hydrogen value chains.
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Egypt, Eni ink MoU on hydrogen production projects
Egypt-ENI Hydrogen MoU outlines joint feasibility studies for green and blue hydrogen using renewable energy, carbon capture, and CO2 storage, targeting domestic demand, exports, and net-zero goals within Egypt's energy transition.
Key Points
A pact to study green and blue hydrogen in Egypt, leveraging renewables, CO2 storage, and export/demand pathways.
✅ Feasibility study for green and blue hydrogen projects
✅ Uses renewables, SMR, carbon capture, and CO2 storage
✅ Targets local demand, exports, and net-zero alignment
The Egyptian Electricity Holding Company (EEHC) and the Egyptian Natural Gas Holding Company (EGAS) signed a memorandum of understanding (MoU) with the Italian energy giant Eni to assess the technical and commercial feasibility of green and blue hydrogen production projects in Egypt, which many see as central to power companies' future strategies worldwide today.
Under the MoU, a study will be conducted to assess joint projects for the production of green hydrogen using electricity generated from renewable energy and supported by regional electricity interconnections where relevant, and blue hydrogen using the storage of CO2 in depleted natural gas fields, according to a statement by the Ministry of Petroleum on Thursday.
The study will also estimate the potential local market consumption of hydrogen and export opportunities, taking cues from Ontario's hydrogen economy proposal to align electricity rates for growth.
This agreement is part of Eni's objective to achieve zero net emissions by 2050 and Egypt's strategy towards diversifying the energy mix and developing hydrogen projects in collaboration with major international companies, taking note of Italy's green hydrogen initiatives in Sicily as a comparable effort.
It signed the deal with Egyptian Natural Gas Holding (EGAS) and Egyptian Electricity Holding Co. (EEHC).
The companies will carry out a joint study on producing renewable energy powered green hydrogen, informed by electrolyzer investments in similar projects, where applicable. They will also work on blue hydrogen. This involves reforming natural gas and capturing the resulting CO2, in this instance in depleted natural gas fields.
The study will also consider domestic hydrogen use and export options, including funding models like the Hydrogen Innovation Fund now in Ontario.
Eni said the MoU was in line with its plans to eliminate net emissions and emissions cancel emission intensity by 2050. The company noted the agreement was in line with Egypt’s plan for the energy transition, in which it pursues hydrogen plans with major international companies, alongside broader clean-tech collaboration such as Tesla cooperation discussions in Dubai, to accelerate progress.
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AZ goes EV: Rate of electric car ownership relatively high in Arizona
Arizona Electric Vehicle Ownership is surging, led by EV adoption, charging stations growth, state incentives, and local manufacturers; yet rural infrastructure gaps and limited fast-charging plugs remain key barriers to convenient, statewide electrification.
Key Points
Arizona Electric Vehicle Ownership shows rising EV adoption and incentives, but rural fast-charging access still lags.
✅ 28,770 EVs registered; sixth per 1,000 residents statewide
✅ 385 fast chargers; 1,448 Level 2 plugs; many not 24/7
✅ Incentives: lower registration, HOV access, utility rebates
For a mostly red state, Arizona has a lot of blue-state company when it comes to states ranked by electric vehicle ownership, according to recent government data.
Arizona had 28,770 registered electric vehicles as of June, according to the U.S. Department of Energy's Alternative Fuels Data Center, the seventh-highest number among states. When ownership is measured per 1,000 residents, Arizona inches up a notch to sixth place, with just over four electric vehicles per 1,000 people.
That rate put Arizona just behind Oregon and Colorado and just ahead of Nevada and Vermont. California was in the lead by far, with California's EV and charging lead reflected in 425,300 registered electric vehicles, or one for every 10.7 residents.
Arizona EV enthusiasts welcomed the ranking, which they said they have seen reflected in steady increases in group membership, but said the state can do better, even amid soaring U.S. EV sales this year.
"Arizona is growing by leaps and bounds in major areas, but still struggling out there in the hinterlands," said Jerry Asher, vice president of the Tucson Electric Vehicle Association.
He and others said the biggest challenge in Arizona, as in much of the country, is the lack of readily available charging stations for electric vehicles.
Currently, there are 385 public fast-charging plugs and 1,448 non-fast-charging plugs in the state, where charging networks compete to expand access, said Diane Brown, executive director with the Arizona Public Interest Research Group Education Fund. And many of those "are not available 24 hours a day, often making EV charging less convenient to the public," she said.
And in order for the state to hit 10% EV ownership by 2030, one scenario outlined by Arizona PIRG, the number of charging stations would need to grow significantly.
"According to the Arizona PIRG Education Fund, to support a future in which 10% of Arizona's vehicles are EVs – a conservative target for 2030 – Arizona will need more than 1,098 fast-charging plugs and 14,888 Level 2 plugs," Brown said.
This will require local, state and federal policies, as EVs challenge state power grids, to make "EV charging accessible, affordable, and easy," she said.
But advocates said there are several things working in their favor, even as an EV boom tests charging capacity across the country today. Jim Stack, president of the Phoenix Electric Auto Association, said many of the current plug-ins charging stations are at stores and libraries, places "where you would stop anyway."
"We have a good charging infrastructure and it keeps getting better," Stack said.
One way Asher said Arizona could be more EV-friendly would be to add charging stations at hotels, RV parks and shopping centers. In Tucson, he said, the Culinary Dropout and Jersey Mike's restaurants have already begun offering free electric vehicle charging to customers, Asher said.
While they push for more charging infrastructure, advocates said improving technology and lower vehicle expenses are on their side, as post-2021 electricity trends reshape costs, helping to sway more Arizonans to purchase an electric vehicle in recent years.
"The batteries are getting better and lower in cost as well as longer-lasting," Stack said. He said an EV uses about 50 cents of electricity to cover the same number of miles a gas-burning car gets from a gallon of gas – currently selling for $3.12 a gallon in Arizona, according to AAA.
In addition, the state is offering incentives to electric vehicle buyers.
"In AZ we get reduced registration on electric vehicles," Stack said. "It's about $15 a year compared to $300-700 a year for gas and diesel cars."
Electric vehicle owners also "get 24/7 access to HOV lanes, even with one person," he said. And utilities like Tucson Electric Power offer rebates and incentives for home charging stations, according to a report by the National Conference of State Legislatures, and neighboring New Mexico's EV benefits underscore potential economic gains for the region.
Stack also noted that Arizona is now home to three eclectic vehicle manufacturers: Lucid, which makes cars in Casa Grande, Nikola, which makes trucks in Phoenix and Coolidge, and Electra Meccanica, which plans to build the three-wheeled SOLO commuter in Mesa.
"We get clear skies. No oil changes, no muffler work, no transmission, faster acceleration. No smog or smog tests," Stack said. "It's priceless."
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Harbour Air eyes 2023 for first electric passenger flights
Harbour Air Electric Seaplanes pioneer zero-emission aviation with battery-powered de Havilland Beaver flights, pursuing Transport Canada certification for safe, fossil fuel-free service across Vancouver Island routes connecting Vancouver, Victoria, Nanaimo, and beyond.
Key Points
Battery-powered, zero-emission floatplanes by Harbour Air pursuing Transport Canada certification to carry passengers.
✅ 29-minute test flight on battery power alone
✅ New lighter, longer-lasting battery supplier partnership
✅ Aiming to electrify entire 42-aircraft Beaver/Otter fleet
Float plane operator Harbour Air is getting closer to achieving its goal of flying to and from Vancouver Island without fossil fuels, following its first point-to-point electric flight milestone.
A recent flight of the company’s electric de Havilland Beaver test plane saw the aircraft remain aloft for 29 minutes on battery power alone, a sign of an emerging aviation revolution underway.
Harbour Air president Randy Wright says the company has joined with a new battery supplier to provide a lighter and longer-lasting power source, a high-flying example of research investment in the sector.
The company hopes to get Transport Canada certification to start carrying passengers on electric seaplanes by 2023, as projects like the electric-ready Kootenay Lake ferry come online.
"This is all new to Transport, so they've got to make sure it's safe just like our aircraft that are running today,” Wright said Wednesday. “They're working very hard at this to get this certified because it's a first in the world."
Parallel advances in marine electrification, such as electric ships on the B.C. coast, are informing clean-transport goals across the province.
Before the pandemic, Harbour Air flew approximately 30,000 commercial flights annually, along corridors also served by BC Ferries hybrid ships today, between Vancouver, Victoria, Nanaimo, Whistler, Seattle, Tofino, Salt Spring Island, the Sunshine Coast and Comox.
Wright says the company plans to eventually electrify its entire fleet of 42 de Havilland Beaver and Otter aircraft, reflecting a broader shift that includes CIB-backed electric ferries in B.C.
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Tesla's lead in China's red-hot electric vehicle market is shrinking, says rival XPeng
China EV Market sees surging deliveries as Tesla, XPeng, Nio, and Li Auto race for market share, driven by tech-forward infotainment, autonomous features, and strong P7 and G3 demand, signaling intensifying competition and rapid growth.
Key Points
China EV Market features rapid EV sales growth led by Tesla, XPeng, Nio, and Li Auto amid tech-driven competition.
✅ XPeng deliveries up 617% YoY in June; 459% YTD growth
✅ Nio and Li Auto post triple-digit quarterly gains
✅ Tech focus: infotainment, ADAS; models P7, G3, G3i
XPeng President and Vice Chairman Brian Gu is quick to praise the Tesla brand and acknowledge the EV maker's "commanding" market share in China, and in key markets like the California EV market as well.
But in the same breath, the executive at the upstart China-based EV rival said his company and peers are fast closing the competitive gap with Tesla.
"I think the Chinese players are catching up very quickly," Gu said on Yahoo Finance Live. "Our product as well as some of the other products that are being introduced by the leading players are very good, and have comparable specs — as well as better features I think compared to Tesla."
That point is not lost in the sales data from the main China EV players, and mirrors the global EV surge seen in recent years.
XPeng said this week deliveries in June surged 617% year-over-year to 6,565. So far this year, deliveries have skyrocketed 459% to 30,738 fueled by demand for XPeng's P7 sedan and G3 SUV, despite concerns about the biggest threats to the EV boom among investors.
June deliveries at Nio rose 116% from a year ago to 8,083, even as mainstream adoption hurdles remain industry-wide. For the quarter ending June 30, Nio delivered 21,896 vehicles marking a growth rate from a year ago of 112%.
As for Li Auto, its June deliveries rose 321% from a year earlier to 7,713. Second quarter deliveries improved 166% year-over-year to 17,575.
Tesla reportedly sold 33,155 cars in China in June, up 122% year-over-year, even as its energy business outlook remains a focus for investors.
"In the last few months, our growth has outpaced the industry as well as Tesla in China. But I think it's a long race because ultimately this market will not be dominated by one or two companies. It will probably be a number of players occupying probably large market share positions of 10% and above. That will likely be the trend, and we hope to be one of those top players," Gu explained.
XPeng — which JPMorgan analysts estimate could grab 8% of China's electric car market by 2025 —currently has two models in the Chinese electric car market, as China's carmakers push into Europe too. They have gained notoriety in an increasingly crowded market for their tech-forward infotainment systems and autonomous technology.
The company's third model dubbed the G3i is expected to see deliveries begin in September, taking aim at smaller sedans such as the Toyota Camry.
Shares of China's EV makers have cooled off this year despite their strong sales, and the U.S. EV market share dipped in early 2024 as well. XPeng shares are down 7% year-to-date, while Nio has shed 5%. Li Auto's stock is down 11% on the year.
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The government's 2035 electric vehicle mandate is delusional
Canada 2035 Zero-Emission Vehicle Mandate sets EV sales targets, raising concerns over affordability, battery materials like lithium and copper, charging infrastructure, grid capacity, renewable energy mix, and policy impacts across provinces.
Key Points
Mandate makes all new light-duty vehicles zero-emission by 2035, affecting costs, charging, and electric grid planning.
✅ 100% ZEV sales target for cars, SUVs, light trucks by 2035
✅ Cost pressures from lithium, copper, nickel; EVs remain pricey
✅ Grid, charging build-out needed; impacts vary by provincial mix
Whether or not you want one, can afford one or think they will do essentially nothing to stop global warming, electric vehicles are coming to Canada en masse. This week, the Canadian government set 2035 as the “mandatory target” for the sale of zero-emission SUVs and light-duty trucks as part of ambitious EV goals announced by Ottawa.
That means the sale of gasoline and diesel cars has to stop by then. Transport Minister Omar Alghabra called the target “a must.” The previous target was 2040.
It is a highly aspirational plan that verges on the delusional according to skeptics of an EV revolution who argue its scale is overstated, even if it earns Canada – a perennial laggard on the emission-reduction front – a few points at climate conferences. Herewith, a few reasons why the plan may be unworkable, unfair or less green than advertised.
Liberals say by 2035 all new cars, light-duty trucks sold in Canada will be electric, as Ottawa develops EV sales regulations to implement the mandate.
Parkland to roll out electric-vehicle charging network in B.C. and Alberta
Sticker shock: There is a reason why EVs remain niche products in almost every market in the world (the notable exception is in wealthy Norway): They are bloody expensive and often in short supply in many markets. Unless EV prices drop dramatically in the next decade, Ottawa’s announcement will price the poor out of the car market. Transportation costs are a big issue with the unrich. The 2018 gilets jaunes mass protests in France were triggered by rising fuel costs.
While some EVs are getting cheaper, even the least expensive ones are about double the price of a comparable product with an internal combustion engine. Most EVs are luxury items. The market leader in Canada and the United States is Tesla. In Canada the cheapest Tesla, the Model 3 (“standard range plus” version), costs $49,000 before adding options and subtracting any government purchase incentives. A high-end Model S can set you back $170,000.
To be sure, prices will come down as production volumes increase. But the price decline might be slow for the simple reason that the cost of all the materials needed to make an EV – copper, cobalt, lithium, nickel among them – is climbing sharply and may keep climbing as production increases, straining supply lines.
Lithium prices have doubled since November. Copper has almost doubled in the past year. An EV contains five times more copper than a regular car. Glencore, one of the biggest mining companies, estimated that copper production needs to increase by a million tonnes a year until 2050 to meet the rising demand for EVs and wind turbines, a daunting task given the dearth of new mining projects.
Will EVs be as cheap as gas cars in a decade or so? Impossible to say, but given the recent price trends for raw materials, probably not.
Not so green: There is no such thing as a zero-emission vehicle, even if that’s the label used by governments to describe battery-powered cars. So think twice if you are buying an EV purely to paint yourself green, as research finds they are not a silver bullet for climate change.
In regions in Canada and elsewhere in the world that produce a lot of electricity from fossil-fuel plants, driving an EV merely shifts the output of greenhouse gases and pollutants from the vehicle itself to the generating plant (according to recent estimates, about 18% of Canada’s electricity comes from coal, natural gas and oil; in the United States, 60 per cent).
An EV might make sense in Quebec, where almost all the electricity comes from renewable sources and policymakers push EV dominance across the market. An EV makes little sense in Saskatchewan, where only 17 per cent comes from renewables – the rest from fossil fuels. In Alberta, only 8 per cent comes from renewables.
The EV supply chain is also energy-intensive. And speaking of the environment, recycling or disposing of millions of toxic car batteries is bound to be a grubby process.
Where’s the juice?: Since the roofs of most homes in Canada and other parts of the world are not covered in solar panels, plugging in an EV to recharge the battery means plugging into the electrical grid. What if millions of cars get plugged in at once on a hot day, when everyone is running air conditioners?
The next few decades could emerge as an epic energy battle between power-hungry air conditioners, whose demand is rising as summer temperatures rise, and EVs. The strain of millions of AC units running at once in the summer of 2020 during California’s run of record-high temperatures pushed the state into rolling blackouts. A few days ago, Alberta’s electricity system operator asked Albertans not to plug in their EVs because air conditioner use was straining the electricity supply.
According to the MIT Technology Review, rising incomes, populations and temperatures will triple the number of air conditioners used worldwide, to six billion, by mid-century. How will any warm country have enough power to recharge EVs and run air conditioners at the same time? The Canadian government didn’t say in its news release on the 2035 EV mandate. Will it fund the construction of new fleets of power stations?
The wrong government policy: The government’s announcement made it clear that widespread EV use – more cars – is central to its climate policy. Why not fewer cars and more public transportation? Cities don’t need more cars, no matter the propulsion system. They need electrified buses, subways and trains powered by renewable energy. But the idea of making cities more livable while reducing emissions is apparently an alien concept to this government.
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B.C. Hydro predicts 'bottleneck' as electric-vehicle demand ramps-up
B.C. EV Bottleneck signals a post-pandemic demand surge for electric vehicles amid semiconductor and lithium-ion battery shortages, driving waitlists, record sales, rebates, charging infrastructure needs, and savings on fuel and maintenance across British Columbia.
Key Points
B.C. EV bottleneck is rising demand outpacing supply from chip and battery shortages, creating waitlists.
✅ 85% delayed EV purchase; demand rebounds with reopening.
✅ Supply chain limits: chips and lithium-ion batteries.
✅ Plan ahead: join waitlists, consider used EVs, claim rebates.
B.C. Hydro is warning of a post-pandemic “EV bottleneck” as it predicts pent-up demand and EV shortages will lead to record-breaking sales for electric vehicles in 2021.
A new survey by B.C. Hydro found 85 per cent of British Columbians put off buying an electric vehicle during the pandemic, but as the province reopens, the number of people on the road commuting to-and-from work and school is expected to rise 15 per cent compared with before the pandemic.
It found about two-thirds of British Columbians are considering buying an EV over the next five years, with 60 per cent saying they would go with an EV if they can get one sooner.
“The EV market is at a potential tipping point, as demand is on the rise and will likely continue to grow long-term, with one study projecting doubling power output to meet full road electrification,” said a report about the findings released Wednesday.
The demand for EVs is prompted by rising gas prices, environmental concerns and to save money on maintenance costs like oil changes and engine repairs, said the report. At the same time, a shortage of semiconductor chips and lithium ion batteries needed for auto production is squeezing supply.
For people wanting to make the switch to electric, B.C. Hydro recommended they plan ahead and get on several waiting lists and explore networks offering faster charging options. Used EVs are also a cheaper option.
B.C. Hydro said an electric vehicle can save 80 per cent in gas expenses over a year and about $100 a month in maintenance costs compared with a gas-powered vehicle. There are also provincial and federal rebates of up to $8,000 for EV purchases in B.C., and additional charger rebates can help with installation costs.
B.C. has the highest electric vehicle uptake in North America, with zero-emission vehicles making up almost 10 per cent of all car sales in the province in 2020 as the province expands EV charging to support growth — more than double the four per cent in 2018.
According to a report by University of B.C. business Prof. Werner Antweiler on the state of EV adoption in B.C., electric vehicles are still concentrated in urban areas like Metro Vancouver and the Capital Regional District on Vancouver Island where public charging stations are more readily available.
He said electric vehicle purchases are still hampered by limited choice and a lack of charging stations, especially for people who park on the street or in condo parkades, which would require permission from strata councils to install a charging station, though rebates for home and workplace charging can ease installation.
The online survey was conducted by market researcher Majid Khoury of 800 British Columbians from May 17-19. It has a margin of error of plus-or-minus 3.5 per cent, 19 times out of 20.
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The City of Vancouver is hosting an ABB FIA Formula E World Championship race next year, organizers have announced
Vancouver Formula E 2022 delivers an all-electric, net-zero motorsport event in False Creek, featuring sustainability initiatives, clean mobility showcases, concerts, and tourism boosts, with major economic impact, jobs, and a climate action conference.
Key Points
A net-zero, all-electric race in False Creek, uniting EV motorsport with sustainability, concerts, and local jobs.
✅ Net-zero, all-electric FIA championship round in Canada
✅ False Creek street circuit with concerts and green mobility expo
✅ Projected $80M impact and thousands of local jobs
The City of Vancouver is hosting an ABB FIA Formula E World Championship race next year, organizers have announced, aligning with the city's EV-ready policy to accelerate adoption.
The all-electric race is being held in the city's False Creek neighbourhood over the 2022 July long weekend as green energy investments accelerate nationwide, according to promoter OSS Group Inc.
Earlier this year, Vancouver city council voted unanimously in support of a multi-day Formula E event that would include a conference on climate change and sustainability amid predicted EV-demand bottlenecks in B.C.
"Formula E is a win on so many levels, from being a net-zero event that supports sustainable transportation to being a huge boost for our hard-hit tourism sector, our residents, who can access rebates for home and workplace charging, and our local economy," Coun. Sarah Kirby-Yung said in a news release Thursday.
As the region advances sustainable mobility, B.C.'s EV charging expansion continues to lead the country.
The promoter said the Formula E race will bring $80 million in economic value and thousands of jobs to the city, with infrastructure like new EV chargers at YVR also underway, but did not provide any details on how it came to those estimates.
More details on the events surrounding the race, including planned concerts and other EV showcases like Everything Electric, are expected to be announced in the fall.
The last time a Formula E World Championship event came to Canada was the Montreal ePrix in 2017. Montreal Mayor Valerie Plante later cancelled planned Formula E events for 2018 and 2019, citing cost overruns and sponsorship troubles.
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Electricity blackouts spark protests in Iranian cities
Iran Power Outage Protests surge as electricity blackouts, drought, and a looming heat wave spark unrest in Tehran, Shiraz, and more, with chants against leadership, strikes, and sanctions-driven economic pressures mounting.
Key Points
Protests across Iran over blackouts, drought, and economic strain challenge authorities and demand accountability.
✅ Rolling blackouts blamed on drought, heat wave, and surging demand.
✅ Chants target leadership amid strikes and wage, water shortages.
✅ Legitimacy questioned after low-turnout election and sanctions.
There have been protests in a number of cities in Iran amid rising public anger over widespread electricity blackouts.
Videos on social media appeared to show crowds in Shar-e Rey near Tehran, Shiraz, Amol and elsewhere overnight.
Some people can be heard shouting "Death to the dictator" and "Death to Khamenei" - a reference to Supreme Leader Ayatollah Ali Khamenei.
The government has apologised for the blackouts, which it has blamed on a severe drought and high demand.
Elsewhere, similar outages have had political repercussions, as a widespread power outage in Taiwan prompted a minister's resignation earlier this year.
President Hassan Rouhani explained in televised remarks on Tuesday morning that the drought meant most of the country's hydroelectric power plants were not operating, placing more pressure on thermal power plants, and that electricity consumption had surged as people used air conditioning to cope with the intense summer heat.
"I apologise to our dear people who have faced problems and suffering in the past few days and I urge them to co-operate [by cutting their electricity use]. People complain about power outages and they are right," Mr Rouhani said.
A video that has gone viral in recent days shows a woman complaining about the blackouts and corruption at a government office in the northern city of Gorgan and demanding that her comments be conveyed to "higher-ups like Mr Rouhani". "The only thing you have done is forcing hijab on us," she shouts.
The president has promised that the government will seek to resolve the problems within the next two or three weeks.
However, a power sector spokesman warned on Monday that consumption was exceeding the production capacity of Iran's power plants by 11GW, and said a "looming heat wave" could make the situation worse, as seen in Iraq's summer electricity crunch this year.
Iranians have also been complaining about water shortages and the non-payment of wages by some local authorities, while thousands of people working in Iran's oil industry have been on strike over pay and conditions, as officials discuss further energy cooperation with Iraq to ease supply pressures.
There was already widespread discontent at government corruption and the economic hardship caused by sanctions that were reinstated when the US abandoned a nuclear deal with Iran three years ago, even as Iran supplies about 40% of Iraq's electricity through cross-border sales.
Analysts say that after the historically low turnout in last month's presidential election, when more than half of the eligible voters stayed at home, the government is facing a serious challenge to its legitimacy.
Mr Rouhani will be succeeded next month by Ebrahim Raisi, a hard-line cleric close to Ayatollah Khamenei who won 62% of the vote after several prominent contenders were disqualified, while Iran finalizes power grid deals with Iraq to bolster regional ties.
The 60-year-old former judiciary chief has presented himself as the best person to combat corruption and solve Iran's economic problems, including ambitions to transmit electricity to Europe as a regional power hub.
But many Iranians and human rights activists have pointed to his human rights record, accusing him of playing a role in the executions of thousands of political prisoners in the 1980s and in the deadly crackdowns on mass anti-government protests in 2009 and 2019.
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Electric Cars 101: How EV Motors Work, Tech Differences, and More
Electric Car Motors convert electricity to torque via rotor-stator magnetic fields, using AC/DC inverters, permanent magnets or induction designs; they power EV powertrains efficiently and enable regenerative braking for energy recovery and control.
Key Points
Electric car motors turn electrical energy into wheel torque using rotor-stator fields, inverters, and AC or DC control.
✅ AC induction, PMSM, BLDC, and reluctance architectures explained
✅ Inverters manage AC/DC, voltage, and motor speed via frequency
✅ Regenerative braking recovers energy and reduces wear
When was the last time you stopped to think about how electric cars actually work, especially if you're wondering whether to buy an electric car today? We superfans of the car biz have mostly developed a reasonable understanding of how combustion powertrains work. Most of us can visualize fuel and air entering a combustion chamber, exploding, pushing a piston down, and rotating a crankshaft that ultimately turns the wheels. We generally understand the differences between inline, flat, vee-shaped, and maybe even Wankel rotary combustion engines.
Mechanical engineering concepts such as these are comparatively easy to comprehend. But it's probably a fair bet to wager that only a minority of folks reading this can explain on a bar napkin exactly how invisible electrons turn a car's wheels or how a permanent-magnet motor differs from an AC induction one. Electrical engineering can seem like black magic and witchcraft to car nuts, so it's time to demystify this bold new world of electromobility, with the age of electric cars arriving ahead of schedule.
How Electric Cars Work: Motors
It has to do with magnetism and the natural interplay between electric fields and magnetic fields. When an electrical circuit closes allowing electrons to move along a wire, those moving electrons generate an electromagnetic field complete with a north and a south pole. When this happens in the presence of another magnetic field—either from a different batch of speeding electrons or from Wile E. Coyote's giant ACME horseshoe magnet, those opposite poles attract, and like poles repel each other.
Electric motors work by mounting one set of magnets or electromagnets to a shaft and another set to a housing surrounding that shaft. By periodically reversing the polarity (swapping the north and south poles) of one set of electromagnets, the motor leverages these attracting and repelling forces to rotate the shaft, thereby converting electricity into torque and ultimately turning the wheels, in a sector where the electric motor market is growing rapidly worldwide. Conversely—as in the case of regenerative braking—these magnetic/electromagnetic forces can transform motion back into electricity.
How Electric Cars Work: AC Or DC?
The electricity supplied to your home arrives as alternating current (AC), and bidirectional charging means EVs can power homes for days as needed, so-called because the north/south or plus/minus polarity of the power changes (alternates) 60 times per second. (That is, in the United States and other countries operating at 110 volts; countries with a 220-volt standard typically use 50-Hz AC.) Direct current (DC) is what goes into and comes out of the + and - poles of every battery. As noted above, motors require alternating current to spin. Without it, the electromagnetic force would simply lock their north and south poles together. It's the cycle of continually switching north and south that keeps a motor spinning.
Today's electric cars are designed to manage both AC and DC energy on board. The battery stores and dispenses DC current, but again, the motor needs AC. When recharging the battery, and with increasing grid coordination enabling flexibility, the energy comes into the onboard charger as AC current during Level 1 and Level 2 charging and as DC high-voltage current on Level 3 "fast chargers." Sophisticated power electronics (which we will not attempt to explain here) handle the multiple onboard AC/DC conversions while stepping the voltage up and down from 100 to 800 volts of charging power to battery/motor system voltages of 350-800 volts to the many vehicle lighting, infotainment, and chassis functions that require 12-48-volt DC electricity.
How Electric Cars Work: What Types Of Motors?
DC Motor (Brushed): Yes, we just said AC makes the motor go around, and these old-style motors that powered early EVs of the 1900s are no different. DC current from the battery is delivered to the rotor windings via spring-loaded "brushes" of carbon or lead that energize spinning contacts connected to wire windings. Every few degrees of rotation, the brushes energize a new set of contacts; this continually reverses the polarity of the electromagnet on the rotor as the motor shaft turns. (This ring of contacts is known as the commutator).
The housing surrounding the rotor's electromagnetic windings typically features permanent magnets. (A "series DC" or so-called "universal motor" may use an electromagnetic stator.) Advantages are low initial cost, high reliability, and ease of motor control. Varying the voltage regulates the motor's speed, while changing the current controls its torque. Disadvantages include a lower lifespan and the cost of maintaining the brushes and contacts. This motor is seldom used in transportation today, save for some Indian railway locomotives.
Brushless DC Motor (BLDC): The brushes and their maintenance are eliminated by moving the permanent magnets to the rotor, placing the electromagnets on the stator (housing), and using an external motor controller to alternately switch the various field windings from plus to minus, thereby generating the rotating magnetic field.
Advantages are a long lifespan, low maintenance, and high efficiency. Disadvantages are higher initial cost and more complicated motor speed controllers that typically require three Hall-effect sensors to get the stator-winding current phased correctly. That switching of the stator windings can result in "torque ripple"—periodic increases and decreases in the delivered torque. This type of motor is popular for smaller vehicles like electric bikes and scooters, and it's used in some ancillary automotive applications like electric power steering assist.
Permanent-Magnet Synchronous Motor (PMSM): Physically, the BLDC and PMSM motors look nearly identical. Both feature permanent magnets on the rotor and field windings in the stator. The key difference is that instead of using DC current and switching various windings on and off periodically to spin the permanent magnets, the PMSM functions on continuous sinusoidal AC current. This means it suffers no torque ripple and needs only one Hall-effect sensor to determine rotor speed and position, so it's more efficient and quieter.
The word "synchronous" indicates the rotor spins at the same speed as the magnetic field in the windings. Its big advantages are its power density and strong starting torque. A main disadvantage of any motor with spinning permanent magnets is that it creates "back electromotive force" (EMF) when not powered at speed, which causes drag and heat that can demagnetize the motor. This motor type also sees some duty in power steering and brake systems, but it has become the motor design of choice in most of today's battery electric and hybrid vehicles.
Note that most permanent-magnet motors of all kinds orient their north-south axis perpendicular to the output shaft. This generates "radial (magnetic) flux." A new class of "axial flux" motors orients the magnets' N-S axes parallel to the shaft, usually on pairs of discs sandwiching stationary stator windings in between. The compact, high-torque axial flux orientation of these so-called "pancake motors" can be applied to either BLDC or PMSM type motors.
AC Induction: For this motor, we toss out the permanent magnets on the rotor (and their increasingly scarce rare earth materials) and keep the AC current flowing through stator windings as in the PMSM motor above.
Standing in for the magnets is a concept Nikola Tesla patented in 1888: As AC current flows through various windings in the stator, the windings generate a rotating field of magnetic flux. As these magnetic lines pass through perpendicular windings on a rotor, they induce an electric current. This then generates another magnetic force that induces the rotor to turn. Because this force is only induced when the magnetic field lines cross the rotor windings, the rotor will experience no torque or force if it rotates at the same (synchronous) speed as the rotating magnetic field.
This means AC induction motors are inherently asynchronous. Rotor speed is controlled by varying the alternating current's frequency. At light loads, the inverter controlling the motor can reduce voltage to reduce magnetic losses and improve efficiency. Depowering an induction motor during cruising when it isn't needed eliminates the drag created by a permanent-magnet motor, while dual-motor EVs using PMSM motors on both axles must always power all motors. Peak efficiency may be slightly greater for BLDC or PMSM designs, but AC induction motors often achieve higher average efficiency. Another small trade-off is slightly lower starting torque than PMSM. The GM EV1 of the mid-1990s and most Teslas have employed AC Induction motors, despite skepticism about an EV revolution in some quarters.
Reluctance Motor: Think of "reluctance" as magnetic resistance: the degree to which an object opposes magnetic flux. A reluctance motor's stator features multiple electromagnet poles—concentrated windings that form highly localized north or south poles. In a switched reluctance motor (SRM), the rotor is made of soft magnetic material such as laminated silicon steel, with multiple projections designed to interact with the stator's poles. The various electromagnet poles are turned on and off in much the same way the field windings in a BLDC motor are. Using an unequal number of stator and rotor poles ensures some poles are aligned (for minimum reluctance), while others are directly in between opposite poles (maximum reluctance). Switching the stator polarity then pulls the rotor around at an asynchronous speed.
A synchronous reluctance motor (SynRM) doesn't rely on this imbalance in the rotor and stator poles. Rather, SynRM motors feature a more distributed winding fed with a sinusoidal AC current as in a PMSM design, with speed regulated by a variable-frequency drive, and an elaborately shaped rotor with voids shaped like magnetic flux lines to optimize reluctance.
The latest trend is to place small permanent magnets (often simpler ferrite ones) in some of these voids to take advantage of both magnetic and reluctance torque while minimizing cost and the back EMF (or counter-electromotive force) high-speed inefficiencies that permanent-magnet motors suffer.
Advantages include lower cost, simplicity, and high efficiency. Disadvantages can include noise and torque ripple (especially for switched reluctance motors). Toyota introduced an internal permanent-magnet synchronous reluctance motor (IPM SynRM) on the Prius, and Tesla now pairs one such motor with an AC induction motor on its Dual Motor models. Tesla also uses IPM SynRM as the single motor for its rear-drive models.
Electric motors may never sing like a small-block or a flat-plane crank Ferrari. But maybe, a decade or so from now, we'll regard the Tesla Plaid powertrain as fondly as we do those engines, even as industry leaders note that mainstream adoption faces hurdles, and every car lover will be able to describe in intimate detail what kind of motors it uses.
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Local study to look at how e-trucks might supply future electricity
Electrified Trucking Grid Integration explores vehicle-to-grid (V2G) strategies where rolling batteries backfeed power during peak demand, optimizing charging infrastructure, time-of-use pricing, and IESO market operations for Ontario shippers like Nature Fresh Farms.
Key Points
An approach using V2G-enabled electric trucks to support the grid, cut peak costs, and add revenue streams.
✅ Models charging sites, timing, and local grid impacts.
✅ Evaluates V2G backfeed economics and IESO pricing.
✅ Uses Nature Fresh Farms data for logistics and energy.
A University of Windsor project will study whether an electrified trucking industry might not only deliver the goods, but help keep the lights on with the timely off-loading of excess electrons from their powerful batteries via vehicle-to-grid approaches now emerging.
The two-year study is being overseen by Environmental Energy Institute director Rupp Carriveau and associate professor Hanna Moah of the Cross-Border Institute in conjunction with the Leamington-based greenhouse grower Nature Fresh Farms.
“The study will look at what happens if we electrified the transport truck fleet in Ontario to different degrees, considering the power demand for truck fleets that would result,” Carriveau said.
“Where trucks would be charging and how that will affect the electricity grid grid coordination in those locations at specific times. We’ll be able to identify peak times on the demand side.
“On the other side, we have to recognize these are rolling batteries. They may be able to backfeed the grid, sell electricity back to prop the grid up in locations it wasn’t able to in the past.”
The national research organization Mathematics of International Technology and Complex Systems (Mitacs) is funding the $160,000 study, and the Independent Electricity Systems Operator, a Crown corporation responsible for operating Ontario’s electricity market, amid an electricity supply crunch that is boosting storage efforts, is also offering support for the project.
Because of the varying electricity prices in the province based on usage, peak demand and even time of year, Carriveau said there could be times where draining off excess truck battery power will be cheaper than the grid, and vehicle-to-building charging models show how those savings can be realized.
“It could offer the truck owner another revenue stream from his asset, and businesses a cheaper electricity alternative in certain circumstances,” he said.
The local greenhouse industry was a natural fit for the study, said Carriveau, based on the amount of work the university does with the sector along with the fact it is both a large consumer and producer of electricity.
The study will be based on assumptions for electric truck capacity and performance because the low number of such vehicles currently on the road, though large electric bus fleets offer operational insights.
How will an electrified trucking industry affect Ontario’s electricity grid? University of Windsor engineering professor Rupp Carriveau is part of a new study on trucks being used to help deliver electricity as well as their products around Ontario. He is shown on campus on Tuesday, July 6, 2021.
How will an electrified trucking industry affect Ontario’s electricity grid? University of Windsor engineering professor Rupp Carriveau is part of a new study on trucks being used to help deliver electricity as well as their products around Ontario. He is shown on campus on Tuesday, July 6, 2021.
Nature Fresh Farms will supply all its data on power use, logistics, utility costs and shipping schedules to determine if switching to an electrified fleet makes sense for the company.
“As an innovative company, we are always thinking, ‘What is next?’, whether its developments in product varieties, technology or sustainability,” said company CEO Peter Quiring. “Green transportation is the next big focus.
“We were given the opportunity to work closely on this project and offer our operations as a case study to see how we can find feasible alternatives, not only for Nature Fresh Farms or even for companies in agriculture, but for every industry that relies on the transportation of their goods.”
Currently, Nature Fresh Farms doesn’t have any electrified trucks. Carriveau said the second phase of the study might actually involve an electric truck in a pilot project.
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New Brunswick announces rebate program for electric vehicles
New Brunswick EV Rebates deliver stackable provincial and federal incentives for electric vehicles, used EVs, and home chargers, supporting NB Power infrastructure, lower GHG emissions, and climate goals with fast chargers across the province.
Key Points
Stackable provincial and federal incentives up to $10,000 for EV purchases, plus support for home charging.
✅ $5,000 new EVs; $2,500 used; stackable with federal $5,000
✅ 50% home charger rebate up to $750 through NB Power
✅ Supports GHG cuts, charging network growth, climate targets
New Brunswickers looking for an electric vehicle (EV) can now claim up to $10,000 in rebates from the provincial and federal governments.
The three-year provincial program was announced Thursday and will give rebates of $5,000 on new EVs and $2,500 on used ones. It closely mirrors the federal program and is stackable, meaning new owners will be able to claim up to $5,000 from the feds as well.
Minister of Environment and Climate Change Gary Crossman said the move is hoped to kickstart the province’s push toward a target of having 20,000 EVs on the road by 2030.
“This incentive has to make a positive difference,” Crossman said.
“I truly believe people have been waiting for it, they’ve been asking about it, and this will make a difference from today moving forward to put new or used cars in their hands.”
The first year of the program will cost $1.95 million, which will come from the $36 million in the Climate Change Fund and will be run by NB Power, whose public charging network has been expanding across the province. The department says if the full amount is used this year it could represent a reduction of 850 tonnes of greenhouse gasses (GHGs) annually.
Both the Liberal and Green parties welcomed the move calling it long overdue, but Green MLA Kevin Arseneau said it’s not a “miracle solution.”
“Yes, we need to electrify cars, but this kind of initiative without proper funding of public transportation, urban planning for biking … without this kind of global approach this is just another swipe of a sword in water,” he said.
Liberal environment critic Francine Landry says she hopes this will make the difference for those considering the purchase of an EV and says the government should consider further methods of incentivization like waiving registration fees.
The province’s adoption of EVs has not been overly successful so far, reflecting broader Atlantic EV buying interest trends across the region. At the end of 2020, there were 646 EVs registered in the province, far short of the 2,500 target set out in the Climate Action Plan. That was up significantly from the 437 at the end of 2019, but still a long way from the goal.
New Brunswick has a fairly expansive network of charging stations across the province, claiming to be the first “fully-connected province” in the country, and had hoped that the available infrastructure, including plans for new fast-charging stations on the Trans-Canada, would push adoption of non-emitting vehicles.
“In 2017 we had 11 chargers in the province, so we’ve come a long way from an infrastructure standpoint which I think is critical to promoting or having an electric vehicle network, or a number of electric vehicles operating in the province, and neighbouring N.L.’s fast-charging network shows similar progress,” said Deputy Minister of Natural Resources Tom Macfarlane at a meeting of the standing committee on climate change and environmental stewardship in January of 2020.
There are now 172 level two chargers and 83 fast chargers, while Labrador’s EV infrastructure still lags in neighbouring N.L. today. Level two chargers take between six and eight hours to charge a vehicle, while the fast chargers take about half an hour to get to 80 per cent charge.
The newly announced program will also cover 50 per cent of costs for a home charging station up to $750, similar to B.C. charger rebates that support home infrastructure, to further address infrastructure needs.
The New Brunswick Lung Association is applauding the rebate plan.
President and CEO Melanie Langille said about 15,000 Canadians, including 40 people from New Brunswick, die prematurely each year from air pollution. She said vehicle emissions account for about 30 per cent of the province’s air pollution.
“Electric vehicles are critical to reducing our greenhouse gas emissions,” said Langille. “New Brunswick has one of the highest per capita GHG emissions in Canada. But, because our electricity source in New Brunswick is primarily from non-emitting sources and regional initiatives like Nova Scotia’s vehicle-to-grid pilot are advancing grid integration, switching to an EV is an effective way for New Brunswickers to lower their GHG emissions.”
Langille said the lung association has been part of an electric vehicles advisory group in the province since 2014 and its research has shown this type of program is needed.
“The major barrier that is standing in the way of New Brunswickers adopting electric vehicles is the upfront costs,” Langille said. “So today’s announcement, and that it can be stacked on top of the existing federal rebates, is a huge step forward for us.”
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The Great Debate About Bitcoin's Huge Appetite For Electricity Determining Its Future
Bitcoin Energy Debate examines electricity usage, mining costs, environmental impact, and blockchain efficiency, weighing renewable power, carbon footprint, scalability, and transaction throughput to clarify stakeholder claims from Tesla, Square, academics, and policymakers.
Key Points
Debate on Bitcoin mining's power use, environmental impact, efficiency, and scalability versus alternative blockchains.
✅ Compares energy intensity with transaction throughput and system outputs.
✅ Weighs renewables, stranded power, and carbon footprint in mining.
✅ Assesses PoS blockchains, stablecoins, and scalability tradeoffs.
There is a great debate underway about the electricity required to process Bitcoin transactions. The debate is significant, the stakes are high, the views are diverse, and there are smart people on both sides. Bitcoin generates a lot of emotion, thereby producing too much heat and not enough light. In this post, I explain the importance of identifying the key issues in the debate, and of understanding the nature and extent of disagreement about how much electrical energy Bitcoin consumes.
Consider the background against which the debate is taking place. Because of its unstable price, Bitcoin cannot serve as a global mainstream medium of exchange. The instability is apparent. On January 1, 2021, Bitcoin’s dollar price was just over $29,000. Its price rose above $63,000 in mid-April, and then fell below $35,000, where it has traded recently. Now the financial media is asking whether we are about to experience another “cyber winter” as the prices of cryptocurrencies continue their dramatic declines.
Central banks warns of bubble on bitcoins as it skyrockets
As bitcoins skyrocket to more than $12 000 for one BTC, many central banks as ECB or US Federal ... [+] NURPHOTO VIA GETTY IMAGES
Bitcoin is a high sentiment beta asset, and unless that changes, Bitcoin cannot serve as a global mainstream medium of exchange. Being a high sentiment beta asset means that Bitcoin’s market price is driven much more by investor psychology than by underlying fundamentals.
As a general matter, high sentiment beta assets are difficult to value and difficult to arbitrage. Bitcoin qualifies in this regard. As a general matter, there is great disagreement among investors about the fair values of high sentiment beta assets. Bitcoin qualifies in this regard.
One major disagreement about Bitcoin involves the very high demand for electrical power associated with Bitcoin transaction processing, an issue that came to light several years ago. In recent months, the issue has surfaced again, in a drama featuring disagreement between two prominent industry leaders, Elon Musk (from Tesla and SpaceX) and Jack Dorsey (from Square).
On one side of the argument, Musk contends that Bitcoin’s great need for electrical power is detrimental to the environment, especially amid disruptions in U.S. coal and nuclear power that increase supply strain. On the other side, Dorsey argues that Bitcoin’s electricity profile is a benefit to the environment, in part because it provides a reliable customer base for clean electric power. This might make sense, in the absence of other motives for generating clean power; however, it seems to me that there has been a surge in investment in alternative technologies for producing electricity that has nothing to do with cryptocurrency. So I am not sure that the argument is especially strong, but will leave it there. In any event, this is a demand side argument.
A supply side argument favoring Bitcoin is that the processing of Bitcoin transactions, known as “Bitcoin mining,” already uses clean electrical power, power which has already been produced, as in hydroelectric plants at night, but not otherwise consumed in an era of flat electricity demand across mature markets.
Both Musk and Dorsey are serious Bitcoin investors. Earlier this year, Tesla purchased $1.5 billion of Bitcoin, agreed to accept Bitcoin as payment for automobile sales, and then reversed itself. This reversal appears to have pricked an expanding Bitcoin bubble. Square is a digital transaction processing firm, and Bitcoin is part of its long-term strategy.
Consider two big questions at the heart of the digital revolution in finance. First, to what degree will blockchain replace conventional transaction technologies? Second, to what degree will competing blockchain based digital assets, which are more efficient than Bitcoin, overcome Bitcoin’s first mover advantage as the first cryptocurrency?
To gain some insight about possible answers to these questions, and the nature of the issues related to the disagreement between Dorsey and Musk, I emailed a series of academics and/or authors who have expertise in blockchain technology.
David Yermack, a financial economist at New York University, has written and lectured extensively on blockchains. In 2019, Yermack wrote the following: “While Bitcoin and successor cryptocurrencies have grown remarkably, data indicates that many of their users have not tried to participate in the mainstream financial system. Instead they have deliberately avoided it in order to transact in black markets for drugs and other contraband … or evade capital controls in countries such as China.” In this regard, cyber-criminals demanding ransom for locking up their targets information systems often require payment in Bitcoin. Recent examples of cyber-criminal activity are not difficult to find, such as incidents involving Kaseya and Colonial Pipeline.
David Yermack continues: “However, the potential benefits of blockchain for improving data security and solving moral hazard problems throughout the financial system have become widely apparent as cryptocurrencies have grown.” In his recent correspondence with me, he argues that the electrical power issue associated with Bitcoin “mining,” is relatively minor because Bitcoin miners are incentivized to seek out cheap electric power, and patterns shifted as COVID-19 changed U.S. electricity consumption across sectors.
Thomas Philippon, also a financial economist at NYU, has done important work characterizing the impact of technology on the resource requirements of the financial sector. He has argued that historically, the financial sector has comprised about 6-to-7% of the economy on average, with variability over time. Unit costs, as a percentage of assets, have consistently been about 2%, even with technological advances. In respect to Bitcoin, he writes in his correspondence with me that Bitcoin is too energy inefficient to generate net positive social benefits, and that energy crisis pressures on U.S. electricity and fuels complicate the picture, but acknowledges that over time positive benefits might be possible.
Emin Gün Sirer is a computer scientist at Cornell University, whose venture AVA Labs has been developing alternative blockchain technology for the financial sector. In his correspondence with me, he writes that he rejects the argument that Bitcoin will spur investment in renewable energy relative to other stimuli. He also questions the social value of maintaining a fairly centralized ledger largely created by miners that had been in China and are now migrating to other locations such as El Salvador.
Bob Seeman is an engineer, lawyer, and businessman, who has written a book entitled Bitcoin: The Mother of All Scams. In his correspondence with me, he writes that his professional experience with Bitcoin led him to conclude that Bitcoin is nothing more than unlicensed gambling, a point he makes in his book.
David Gautschi is an academic at Fordham University with expertise in global energy. I asked him about studies that compare Bitcoin’s use of energy with that of the U.S. financial sector. In correspondence with me, he cautioned that the issues are complex, and noted that online technology generally consumes a lot of power, with electricity demand during COVID-19 highlighting shifting load profiles.
My question to David Gautschi was prompted by a study undertaken by the cryptocurrency firm Galaxy Digital. This study found that the financial sector together with the gold industry consumes twice as much electrical power as Bitcoin transaction processing. The claim by Galaxy is that Bitcoin’s electrical power needs are “at least two times lower than the total energy consumed by the banking system as well as the gold industry on an annual basis.”
Galaxy’s analysis is detailed and bottom up based. In order to assess the plausibility of its claims, I did a rough top down analysis whose results were roughly consistent with the claims in the Galaxy study. For sake of disclosure, I placed the heuristic calculations I ran in a footnote.1 If we accept the Galaxy numbers, there remains the question of understanding the outputs produced by the electrical consumption associated with both Bitcoin mining and U.S. banks’ production of financial services. I did not see that the Galaxy study addresses the output issue, and it is important.
Consider some quick statistics which relate to the issue of outputs. The total market for global financial services was about $20 trillion in 2020. The number of Bitcoin transactions processed per day was about 330,000 in December 2020, and about 400,000 in January 2021. The corresponding number for Bitcoin’s digital rival Ethereum during this time was about 1.1 million transactions per day. In contrast, the global number of credit card transactions per day in 2018 was about 1 billion.2
Bitcoin Value Falls
LONDON, ENGLAND - NOVEMBER 20: A visual representation of the cryptocurrencies Bitcoin and Ethereum ... [+] GETTY IMAGES
These numbers tell us that Bitcoin transactions comprise a small share, on the order of 0.04%, of global transactions, but use something like a third of the electricity needed for these transactions. That said, the associated costs of processing Bitcoin transactions relate to tying blocks of transactions together in a blockchain, not to the number of transactions. Nevertheless, even if the financial sector does indeed consume twice as much electrical power as Bitcoin, the disparity between Bitcoin and traditional financial technology is striking, and the experience of Texas grid reliability underscores system constraints when it comes to output relative to input. This, I suggest, weakens the argument that Bitcoin’s electricity demand profile is inconsequential because Bitcoin mining uses slack electricity.
A big question is how much electrical power Bitcoin mining would require, if Bitcoin were to capture a major share of the transactions involved in world commerce. Certainly much more than it does today; but how much more?
Given that Bitcoin is a high sentiment beta asset, there will be a lot of disagreement about the answers to these two questions. Eventually we might get answers.
At the same time, a high sentiment beta asset is ill suited to being a medium of exchange and a store of value. This is why stablecoins have emerged, such as Diem, Tether, USD Coin, and Dai. Increased use of these stable alternatives might prevent Bitcoin from ever achieving a major share of the transactions involved in world commerce.
We shall see what the future brings. Certainly El Salvador’s recent decision to make Bitcoin its legal tender, and to become a leader in Bitcoin mining, is something to watch carefully. Just keep in mind that there is significant downside to experiencing foreign exchange rate volatility. This is why global financial institutions such as the World Bank and IMF do not support El Salvador’s decision; and as I keep saying, Bitcoin is a very high sentiment beta asset.
In the past I suggested that Bitcoin bubble would burst when Bitcoin investors conclude that its associated processing is too energy inefficient. Of course, many Bitcoin investors are passionate devotees, who are vulnerable to the psychological bias known as motivated reasoning. Motivated reasoning-based sentiment, featuring denial,3 can keep a bubble from bursting, or generate a series of bubbles, a pattern we can see from Bitcoin’s history.
I find the argument that Bitcoin is necessary to provide the right incentives for the development of clean alternatives for generating electricity to be interesting, but less than compelling. Are there no other incentives, such as evolving utility trends, or more efficient blockchain technologies? Bitcoin does have a first mover advantage relative to other cryptocurrencies. I just think we need to be concerned about getting locked into an technologically inferior solution because of switching costs.
There is an argument to made that decisions, such as how to use electric power, are made in markets with self-interested agents properly evaluating the tradeoffs. That said, think about why most of the world adopted the Windows operating system in the 1980s over the superior Mac operating system offered by Apple. Yes, we left it to markets to determine the outcome. People did make choices; and it took years for Windows to catch up with the Mac’s operating system.
My experience as a behavioral economist has taught me that the world is far from perfect, to expect to be surprised, and to expect people to make mistakes. We shall see what happens with Bitcoin going forward.
As things stand now, Bitcoin is well suited as an asset for fulfilling some people’s urge to engage in high stakes gambling. Indeed, many people have a strong need to engage in gambling. Last year, per capita expenditure on lottery tickets in Massachusetts was the highest in the U.S. at over $930.
High sentiment beta assets offer lottery-like payoffs. While Bitcoin certainly does a good job of that, it cannot simultaneously serve as an effective medium of exchange and reliable store of value, even setting aside the issue at the heart of the electricity debate.
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Manitoba looking to raise electricity rates 2.5 per cent each year for 3 years
Manitoba Hydro Rate Increase sets electricity rates up 2.5% annually for three years via Bill 35, bypassing PUB hearings, citing Crown utility debt and pandemic impacts, with legislature debate and a multi-year regulatory review ahead.
Key Points
A government plan to lift electricity rates 2.5% annually over three years via Bill 35, bypassing PUB hearings.
✅ 2.5% annual hikes for three years set in legislation
✅ Bypasses PUB rate hearings during pandemic recovery
✅ Targets Crown utility debt; multi-year review planned
The Manitoba government is planning to raise electricity rates, with Manitoba Hydro scaling back next year, by 2.5 per cent a year over the next three years.
Finance Minister Scott Fielding says the increases, to be presented in a bill before the legislature, are the lowest in a decade and will help keep rates among the lowest in Canada, even as SaskPower's 8% hike draws scrutiny in a neighbouring province.
Crown-owned Manitoba Hydro had asked for a 3.5 per cent increase this year, similar to BC Hydro's 3% rise, to help pay off billions of dollars in debt.
“The way we figured this out, we looked at the rate increases that were approved by PUB (Public Utilities Board) over the last ten years, (and) we went to 75 per cent of that,” Fielding said during a Thursday morning press conference.
“It’s a pandemic, we know that there’s a lot of people that are unemployed, that are struggling, we know that businesses need to recharge after the business (sic), so this will provide them an appropriate break.”
Electricity rates are normally set by the Public Utilities Board, a regulatory body that holds rate hearings and examines the Crown corporation’s finances.
The Progressive Conservative government has temporarily suspended the regulatory process and has set rates itself, while Ontario rate legislation to lower rates moved forward in its jurisdiction.
Manitoba Liberal leader Dougald Lamont was quick to condemn the move, noting parallels to Ontario price concerns before saying in a news release the PCs “are abusing their power and putting Hydro’s financial future at risk by fixing prices in the hope of buying some political popularity.”
“Hydro’s rates should be set by the PUB after public hearings, not figured out on the back of a napkin in the Premier’s office,” Lamont wrote.
Fielding noted the increase would appear as an amendment to Bill 35, which will appear in the legislature this fall, as BC Hydro plans multi-year increases proceed elsewhere.
“All members of the legislative assembly will vote and debate this rate increase on Bill 35,” Fielding said.
“This will give the PUB time to implement reforms, and allow the utilities to prepare a more rigorous, multi-year review application process.”
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Electricity alert ends after Alberta forced to rely on reserves to run grid
Alberta Power Grid Level 2 Alert signals AESO reserve power usage, load management, supply shortage from generator outages, low wind, and limited imports, urging peak demand conservation to avoid blackouts and preserve grid reliability.
Key Points
An AESO status where reserves power the grid and load management is used during supply constraints to prevent blackouts.
✅ Triggered by outages, low wind, and reduced import capacity
✅ Peak hours 4 to 7 pm saw conservation requests
✅ Several hundred MW margin from Level 3 load shedding
Alberta's energy grid ran on reserves Wednesday, after multiple factors led to a supply shortage, a scenario explored in U.S. grid COVID response discussions as operators plan for contingencies.
At 3:52 p.m. Wednesday, the Alberta Electric System Operator issued a Level 2 alert, meaning that reserves were being used to supply energy requirements and that load management procedures had been implemented, while operators elsewhere adopted Ontario power staffing lockdown measures during COVID-19 for continuity. The alert ended at 6:06 p.m.
"This is due to unplanned generator outages, low wind and a reduction of import capability," the agency said in a post to social media. "Supply is tight but still meeting demand."
AESO spokesperson Mike Deising said the intertie with Saskatchewan had tripped off, and an issue on the British Columbia side of the border, as seen during BC Hydro storm response events, meant the province couldn't import power.
"There are no blackouts … this just means we're using our reserve power, and that's a standard procedure we'll deploy," he said.
AESO had asked that people reduce their energy consumption between 4 and 7 p.m., similar to Cal ISO conservation calls during grid strain, which is typically when peak use occurs.
Deising said the system was several hundred MWs away from needing to move to an alert Level 3, with utilities such as FortisAlberta precautions in place to support continuity, which is when power is cut off to some customers in order to keep the system operating. Deising said Level 2 alerts are fairly rare and occur every few years. The last Level 3 alert was in 2013.
According to the supply and demand report on AESO's website, the load on the grid at 5 p.m. was 10,643 MW.
That's down significantly from last week, when a heat wave pushed demand to record highs on the grid, with loads in the 11,700 MW range, contrasting with Ontario demand drop during COVID when many stayed home.
A heat warning was issued Wednesday for Edmonton and surrounding areas shortly before 4 p.m., with temperatures above 29 C expected over the next three days, with many households seeing residential electricity use up during such periods.
