Electricity News in September 2022
Gov. Greg Abbott touts Texas power grid's readiness heading into fall, election season
ERCOT Texas Fall Grid Forecast outlines ample power supply, planned maintenance outages, and grid reliability, citing PUC oversight and Gov. Abbott's remarks, with seasonal assessment noting mild demand yet climate risks and conservation alerts.
Key Points
ERCOT's seasonal outlook for Texas on fall power supply, outages, and reliability expectations under PUC oversight.
✅ Projects sufficient supply in October and November
✅ Many plants scheduled offline for maintenance
✅ Notes PUC oversight and Abbott's confidence
Gov. Greg Abbott said Tuesday that the Texas power grid is prepared for the fall months and referenced a new seasonal forecast by the state’s grid operator, which typically does not draw much attention to its fall and spring grid assessments because of the more mild temperatures during those seasons.
Tuesday’s new forecast by the Electric Reliability Council of Texas showed that there should be plenty of power supply to meet demand in October and November. It also showed that many Texas power plants are scheduled to be offline this fall for maintenance work. Texas power plants usually plan to go down in the fall and spring for repairs to improve reliability ahead of the more extreme temperatures in winter and summer, when Texans crank up their heat and air conditioning and raise demand for power.
ERCOT for at least a decade announced its seasonal forecasts, but did not do so on Tuesday. The grid operator stopped announcing the reports after the 2021 winter storm event. A spokesperson for the grid operator, which posted the report to its website midday without notifying the public or power industry stakeholders, said there were no plans to discuss the latest forecast and referred questions about it to the Public Utility Commission, which oversees ERCOT. Abbott appoints the board of the PUC.
Abbott on Tuesday expressed his confidence about the grid in a news release, which included photos of the governor sitting at a table with incoming ERCOT CEO Pablo Vegas, outgoing interim CEO Brad Jones and Public Utility Commission Chair Peter Lake.
“The State of Texas continues to monitor the reliability of our electric grid, and I thank ERCOT and PUC for their hard work to implement bipartisan reforms we passed last year and for their proactive leadership to ensure our grid is stronger than ever before,” Abbott said in the release.
Abbott has not previously shared or called attention to ERCOT’s forecasts as he did on Tuesday.
Up for reelection this fall, Abbott has faced continued criticism, including from the Sierra Club over his handling of the 2021 deadly power grid disaster, when extended freezing temperatures shut down natural gas facilities and power plants, which rely on each other to keep electricity flowing. The resulting blackouts left millions of Texans without power for days in the cold, and hundreds of people died.
ERCOT’s forecasts for fall and spring are typically the least worrisome seasonal forecasts, energy experts said, because temperatures are usually milder in between summer and winter, even as ERCOT has issued an RFP to procure winter capacity to address shortages, so demand for power usually does not skyrocket like it does during extreme temperatures.
But they’ve warned that climate change could potentially lead to more extreme temperatures during times when Texas hasn’t experienced such weather in the past. For example, in early May six power plants unexpectedly broke down when a spring heat wave drove power demand up and highlighted broader heat-related blackout risks across the grid. ERCOT asked Texans to conserve electricity at home at the time.
Abbott released the seasonal report at a time when he has asserted unprecedented control over ERCOT. Although he had no formal role in ERCOT’s search for a new permanent CEO, he put a stranglehold on the process, The Texas Tribune previously reported. Since the winter storm, Abbott’s office has also dictated what information about the power grid ERCOT has released to the public.
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California avoids widespread rolling blackouts as heat strains power grid
California Heat Wave Grid Emergency sees CAISO issue Stage 3 alerts as record demand, extreme heat, and climate change strain renewable energy; conservation efforts avert rolling blackouts and protect grid reliability statewide.
Key Points
A grid emergency in California's heat wave, with CAISO Stage 3 alerts amid record demand and risk of rolling blackouts.
✅ CAISO triggered Stage 3 alerts, then downgraded by 8 pm PT
✅ Record 52,061 MW demand; conservation reduced grid stress
✅ Extreme heat and climate change heightened outage risks
California has avoided ordering rolling blackouts after electricity demand reached a record-high Tuesday night from excessive heat across the state, even as energy experts warn the U.S. grid faces mounting climate stresses.
The California Independent System Operator, which oversees the state’s electrical grid, imposed its highest level energy emergency on Tuesday, a step that comes before ordering rolling blackouts and allows the state to access emergency power sources.
The Office of Emergency Services also sent a text alert to residents requesting them to conserve power. The operator downgraded the Stage 3 alert around 8:00 p.m. PT on Tuesday and said that “consumer conservation played a big part in protecting electric grid reliability,” and in bolstering grid resilience overall.
The state capital of Sacramento reached 116 degrees Fahrenheit on Tuesday, according to the National Weather Service, surpassing a record that was set almost 100 years ago. And nearly a half-dozen cities in the San Francisco Bay Area tied or set all-time highs, the agency said.
CAISO said peak power demand on Tuesday reached 52,061 megawatts, surpassing a previous high of 50,270 megawatts on July 24, 2006, while nearby B.C. electricity demand has also hit records during extreme weather.
While the operator did not order rolling blackouts, three Northern California cities saw brief power outages, and severe storms have caused similar disruptions statewide in recent months. As of 7:00 am PT on Wednesday, nearly 8,000 customers in California were without power, according to PowerOutage.us.
Gov. Gavin Newsom, in a Twitter video on Tuesday, warned the temperatures across California were unprecedented and the state is headed into the worst part of the heat wave, which is on track to be the hottest and longest on record for September.
“The risk for outages is real and it’s immediate,” Newsom said. “These triple-digit temperatures throughout much of the state are leading, not surprisingly, to record demand on the energy grid.”
The governor urged residents to pre-cool their homes earlier in the day when more power is available and turn thermostats to 78 degrees or higher after 4:00 pm PT. “Everyone has to do their part to help step up for just a few more days,” Newsom said.
The possibility for widespread outages reflects how power grids in California and other states are becoming more vulnerable to climate-related disasters such as heat waves, storms and wildfires across California.
California, which has set a goal to transition to 100% carbon-free electricity by 2045, has shuttered a slew of gas power plants in the past few years, leaving the state increasingly dependent on solar energy.
At times, the state has produced a clean energy surplus during peak solar generation, underscoring the challenges of balancing supply and demand.
The megadrought in the American West has generated the driest two decades in the region in at least 1,200 years, and human-caused climate change has fueled the problem, scientists said earlier this year. Conditions will likely continue through 2022 and persist for years.
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California Skirts Blackouts With Heat Wave to Test Grid Again
California Heatwave Power Crisis strains CAISO as record demand triggers emergency alerts, demand response, and rolling blackout warnings. PG&E prepares outages while solar fades at peak, drought cuts hydropower, and reliability hinges on conservation.
Key Points
Extreme heat driving record demand in California, straining CAISO and prompting conservation to avert rolling blackouts.
✅ CAISO hit a record 52 GW peak load amid triple-digit heat
✅ Emergency alerts spurred demand response, cutting load spikes
✅ Solar drop and drought-weakened hydro worsened evening shortfall
California narrowly avoided blackouts for a second successive day even as blistering temperatures pushed electricity demand to a record and stretched the state’s power grid close to its limits.
The state imposed its highest level of energy emergency for several hours late Tuesday and urged consumers to turn off lights, curb air conditioners and shut off power-hungry appliances after a day of extraordinary stress on electricity infrastructure as temperatures in many regions topped 110 degrees Fahrenheit (43 Celsius).
Electricity use had reached 52 gigawatts Tuesday, easily breaking a record that stood since 2006, according to the California Independent System Operator. The state issued emergency alerts direct to cell phones in several counties asking for immediate power conservation, and grid data show that demand plunged in response. Emergency measures were finally lifted at about 9 p.m. local time.
Much of California remains under an excessive heat warning through Friday, with authorities already preparing for more severe pressure on the power system on Wednesday amid a looming supply shortage across the grid. “We aren’t out of the woods yet,” Governor Gavin Newsom said in a message posted on his office’s Twitter account. “We will see continued extreme temps this week and if we rallied today, we can do it again.”
The state’s largest power company, PG&E Corp. said earlier Tuesday that it had notified about 525,000 homes and businesses that they could lose power for up to two hours. That warning came as temperatures in downtown Sacramento hit 116 degrees Fahrenheit, topping a previous 1925 record.
Newsom earlier signed an executive order extending until Friday emergency measures to free up additional power supplies, rather than allowing them to expire as planned on Wednesday. Many state buildings were ordered to power down lights and air conditioning at 4 p.m., and he urged residents and businesses to conserve the equivalent of 3 gigawatts of power in order to stave off blackouts.
California's Early Brush With Blackouts Bodes Ill For Days Ahead
The downtown skyline during a heatwave in Los Angeles.Photographer: Eric Thayer/Bloomberg
California faced a similar energy emergency Monday, which was alleviated in part by activating temporary gas-fired power plants operated by the California Department of Water Resources. The current heat wave, which began in the last week of August, is remarkable in both its ferocity and duration, according to officials.
The prospect of outages underscores how grids have become vulnerable in the face of extreme weather as California transitions from fossil fuels to renewable energy, an approach it is increasingly exporting to Western states as well. California's climate policies have aggressively closed natural-gas power plants in recent years, leaving the state increasingly dependent on solar farms that go dark late in the day just as electricity demand peaks. At the same time, the state is enduring the Southwest’s worst drought in 1,200 years, sapping hydropower production.
The average 15-minute wholesale power price in Caiso surged to $1,806 a megawatt-hour at 4:45 p.m. local time, according to the grid operator’s website.
Average day-ahead prices top $300 a megawatt-hour in Southern California
A break from the heat will come across Southern California later this week, thanks to Tropical Storm Kay in the Pacific Ocean, according to weather officials. Kay is forecast to edge up the coastline of Mexico’s Baja California peninsula. As it moves north, the storm will pump moisture and clouds into Southern California and Arizona, taking an edge off the heat.
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How waves could power a clean energy future
Wave Energy Converters can deliver marine power to the grid, with DOE-backed PacWave enabling offshore testing, robust designs, and renewable electricity from oscillating waves to decarbonize coastal communities and replace diesel in remote regions.
Key Points
Wave energy converters are devices that transform waves' oscillatory motion into electricity for the grid or loads.
✅ DOE's PacWave enables full-scale, grid-connected offshore testing.
✅ Multiple designs convert oscillating motion into torque and power.
✅ Ideal for islands, microgrids, and replacing diesel generation.
Waves off the coast of the U.S. could generate 2.64 trillion kilowatt hours of electricity per year — that’s about 64% of last year’s total utility-scale electricity generation in the U.S. We won’t need that much, but one day experts do hope that wave energy will comprise about 10-20% of our electricity mix, alongside other marine energy technologies under development today.
“Wave power is really the last missing piece to help us to transition to 100% renewables, ” said Marcus Lehmann, co-founder and CEO of CalWave Power Technologies, one of a number of promising startups focused on building wave energy converters.
But while scientists have long understood the power of waves, it’s proven difficult to build machines that can harness that energy, due to the violent movement and corrosive nature of the ocean, combined with the complex motion of waves themselves, even as a recent wave and tidal market analysis highlights steady advances.
″Winds and currents, they go in one direction. It’s very easy to spin a turbine or a windmill when you’ve got linear movement. The waves really aren’t linear. They’re oscillating. And so we have to be able to turn this oscillatory energy into some sort of catchable form,” said Burke Hales, professor of cceanography at Oregon State University and chief scientist at PacWave, a Department of Energy-funded wave energy test site off the Oregon Coast. Currently under construction, PacWave is set to become the nation’s first full-scale, grid-connected test facility for these technologies, a milestone that parallels U.K. wind power lessons on scaling new industries, when it comes online in the next few years.
“PacWave really represents for us an opportunity to address one of the most critical barriers to enabling wave energy, and that’s getting devices into the open ocean,” said Jennifer Garson, Director of the Water Power Technologies Office at the U.S. Department of Energy.
At the beginning of the year, the DOE announced $25 million in funding for eight wave energy projects to test their technology at PacWave, as offshore wind forecasts underscore the growing investor interest in ocean-based energy. We spoke with a number of these companies, which all have different approaches to turning the oscillatory motion of the waves into electrical power.
Different approaches
Of the eight projects, Bay Area-based CalWave received the largest amount, $7.5 million.
″The device we’re testing at PacWave will be a larger version of this,” said Lehmann. The x800, our megawatt-class system, produces enough power to power about 3,000 households.”
CalWave’s device operates completely below the surface of the water, and as waves rise and fall, surge forward and backward, and the water moves in a circular motion, the device moves too. Dampers inside the device slow down that motion and convert it into torque, which drives a generator to produce electricity, a principle mirrored in some wind energy kite systems as they harvest aerodynamic forces.
“And so the waves move the system up and down. And every time it moves down, we can generate power, and then the waves bring it back up. And so that oscillating motion, we can turn into electricity just like a wind turbine,” said Lehmann.
Another approach is being piloted by Seattle-based Oscilla Power, which was awarded $1.8 million from the DOE, and is getting ready to deploy its wave energy converter off the coast of Hawaii, at the U.S. Navy Wave Energy Test site.
Oscilla Power’s device is composed of two parts. One part floats on the surface and moves with the waves in all directions — up and down, side to side and rotationally. This float is connected to a large, ring-shaped structure which hangs below the surface, and is designed to stay relatively steady, much like how underwater kites leverage a stable reference to generate power. The difference in motion between the float and the ring generates force on the connecting lines, which is used to rotate a gearbox to drive a generator.
″The system that we’re deploying in Hawaii is what we call the Triton-C. This is a community-scale system,” said Balky Nair, CEO of Oscilla Power. “It’s about a third of the size of our flagship product. It’s designed to be 100 kilowatt rated, and it’s designed for islands and small communities.”
Nair is excited by wave energy’s potential to generate electricity in remote regions, which currently rely on expensive and polluting diesel imports to meet their energy needs when other renewables aren’t available, and similar tidal energy for remote communities efforts in Canada point to viable models. Before wave energy is adopted at-scale, many believe we’ll see wave energy replacing diesel generators in off-the-grid communities.
A third company, C-Power, based in Charlottesville, Virginia, was awarded more than $4 million to test its grid-scale wave energy converter at PacWave. But first, the company wants to commercialize its smaller scale system, the SeaRAY, which is designed for lower-power applications.
″Think about sensors in the ocean, research, metocean data gathering, maybe it’s monitoring or inspection,” said C-Power CEO Reenst Lesemann on the initial applications of his device.
The SeaRAY consists of two floats and a central body, the nacelle, which contains the drivetrain. As waves pass by, the floats bob up and down, rotating about the nacelle and turning their own respective gearboxes which power the electric generators.
Eventually, C-Power plans to scale up its SeaRAY so that it’s capable of satellite communications and deep water deployments, before building a larger system, called the StingRAY, for terrestrial electricity generation.
Meanwhile, one Swedish company, Eco Wave Power, is taking another approach completely, eschewing offshore technologies in favor of simpler wave power devices that can be installed on breakwaters, piers, and jetties.
“All the expensive conversion machinery, instead of being inside the floaters like in the competing technologies, is on land just like a regular power station. So basically this enables a very low installation, operation, and maintenance cost,” explained CEO Inna Braverman.
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Record numbers of solar panels were shipped in the United States during 2021
U.S. Solar Panel Shipments 2021 surged to 28.8 million kW of PV modules, tracking utility-scale and small-scale capacity additions, driven by imports from Asia, resilient demand, supply chain constraints, and declining prices.
Key Points
Record 28.8M kW PV modules shipped in 2021; 80% imports; growth in utility- and small-scale capacity with lower prices.
✅ 28.8M kW shipped, up from 21.8M kW in 2020 (record capacity)
✅ 80% of PV module shipments were imports, mainly from Asia
✅ Utility-scale +13.2 GW; small-scale +5.4 GW; residential led
U.S. shipments of solar photovoltaic (PV) modules (solar panels) rose to a record electricity-generating capacity of 28.8 million peak kilowatts (kW) in 2021, from 21.8 million peak kW in 2020, based on data from our Annual Photovoltaic Module Shipments Report. Continued demand for U.S. solar capacity drove this increase in solar panel shipments in 2021, as solar's share of U.S. electricity continued to rise.
U.S. solar panel shipments include imports, exports, and domestically produced and shipped panels. In 2021, about 80% of U.S. solar panel module shipments were imports, primarily from Asia, even as a proposed tenfold increase in solar aims to reshape the U.S. electricity system.
U.S. solar panel shipments closely track domestic solar capacity additions; differences between the two usually result from the lag time between shipment and installation, and long-term projections for solar's generation share provide additional context. We categorize solar capacity additions as either utility-scale (facilities with one megawatt of capacity or more) or small-scale (largely residential solar installations).
The United States added 13.2 gigawatts (GW) of utility-scale solar capacity in 2021, an annual record and 25% more than the 10.6 GW added in 2020, according to our Annual Electric Generator Report. Additions of utility-scale solar capacity reached a record high, reflecting strong growth in solar and storage despite project delays, supply chain constraints, and volatile pricing.
Small-scale solar capacity installations in the United States increased by 5.4 GW in 2021, up 23% from 2020 (4.4 GW), as solar PV and wind power continued to grow amid favorable government plans. Most of the small-scale solar capacity added in 2021 was installed on homes. Residential installations totaled more than 3.9 GW in 2021, compared with 2.9 GW in 2020.
The cost of solar panels has declined significantly since 2010. The average value (a proxy for price) of panel shipments has decreased from $1.96 per peak kW in 2010 to $0.34 per peak kW in 2021, as solar became the third-largest renewable source and markets scaled. Despite supply chain constraints and higher material costs in 2021, the average value of solar panels decreased 11% from 2020.
In 2021, the top five destination states for U.S. solar panel shipments were:
California (5.09 million peak kW)
Texas (4.31 million peak kW)
Florida (1.80 million peak kW)
Georgia (1.15 million peak kW)
Illinois (1.12 million peak kW)
These five states accounted for 46% of all U.S. shipments, and 2023 utility-scale project pipelines point to continued growth.
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How Electricity Gets Priced in Europe and How That May Change
EU Power Market Overhaul targets soaring electricity prices by decoupling gas from power, boosting renewables, refining price caps, and stabilizing grids amid inflation, supply shocks, droughts, nuclear outages, and intermittent wind and solar.
Key Points
EU plan to redesign electricity pricing, curb gas-driven costs, boost renewables, and protect consumers from volatility.
✅ Decouples power prices from marginal gas generation
✅ Caps non-gas revenues to fund consumer relief
✅ Supports grid stability with storage, demand response, LNG
While energy prices are soaring around the world, Europe is in a particularly tight spot. Its heavy dependence on Russian gas -- on top of droughts, heat waves, an unreliable fleet of French nuclear reactors and a continent-wide shift to greener but more intermittent sources like solar and wind -- has been driving electricity bills up and feeding the highest inflation in decades. As Europe stands on the brink of a recession, and with the winter heating season approaching, officials are considering a major overhaul of the region’s power market to reflect the ongoing shift from fossil fuels to renewables.
1. How is electricity priced?
Unlike oil or natural gas, there’s no efficient way to save lots of electricity to use in the future, though projects to store electricity in gas pipes are emerging. Commercial use of large-scale batteries is still years away. So power prices have been set by the availability at any given moment. When it’s really windy or sunny, for example, then more is produced relatively cheaply and prices are lower. If that supply shrinks, then prices rise because more generators are brought online to help meet demand -- fueled by more expensive sources. The way the market has long worked is that it is that final technology, or type of plant, needed to meet the last unit of consumption that sets the price for everyone. In Europe this year, that has usually meant natural gas.
2. What is the relationship between power and gas?
Very close. Across western Europe, gas plants have been a vital part of the energy infrastructure for decades, with Irish price spikes highlighting dispatchable power risks, fed in large part by supplies piped in from Siberia. Gas-fired plants were relatively quick to build and the technology straightforward, at least compared with nuclear plants and burns cleaner than coal. About 18% of Europe’s electricity was generated at gas plants last year; in 2020 about 43% of the imported gas came from Russia. Even during the depths of the Cold War, there’d never been a serious supply problem -- until the relationship with Russia deteriorated this year after it invaded Ukraine. Diversifying away from Russia, such as by increasing imports of liquefied natural gas, requires new infrastructure that takes a lot of time and money.
3. Why does it work this way?
In theory, the relationship isn’t different from that with coal, for example. But production hiccups and heatwave curbs on plants from nuclear in France to hydro in Spain and Norway significantly changed the generation picture this year, and power hit records as plants buckled in the heat. Since coal-fired and nuclear plants are generally running all the time anyway, gas plants were being called upon more often -- at times just to keep the lights on as summer temperatures hit records. And with the war in Ukraine resulting in record gas prices, that pushed up overall production costs. It’s that relationship that has made the surging gas price the driver for electricity prices. And since the continent is all connected, it has pushed up prices across the region. The value of the European power market jumped threefold last year, to a record 836 billion euros ($827 billion today).
4. What’s being considered?
With large parts of European industry on its knees and households facing jumps in energy bills of several hundred percent, as record electricity prices ripple through markets, the pressure on governments and the European Union to intervene has never been higher. One major proposal is to impose a price cap on electricity from non-gas producers, with the difference between that and the market price channeled to relief for consumers. While it sounds simple, any such changes would rip up a market design that’s worked for decades and could threaten future investments because of unintended consequences.
5. How did this market evolve?
The Nordic region and the British market were front-runners in the 1990s, then Germany followed and is now the largest by far. A trader can buy and sell electricity delivered later on same day in blocks of an hour or even down to 15-minute periods, to meet sudden demand or take advantage of price differentials. The price for these contracts is decided entirely by the supply and demand, how much the wind is blowing or which coal plants are operating, for example. Demand tends to surge early in the morning and late afternoon. This system was designed when fossil fuels provided the bulk of power. Now there are more renewables, which are less predictable, with wind and solar surpassing gas in EU generation last year, and the proposed changes reflect that shift.
6. What else have governments done?
There are also traders who focus on longer-dated contracts covering periods several years ahead, where broader factors such as expected economic output and the extent to which renewables are crowding out gas help drive prices. This year’s wild price swings have prompted countries including Germany, Sweden and Finland to earmark billions of euros in emergency liquidity loans to backstop utilities hit with sudden margin calls on their trading.
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Britain Prepares for High Winter Heating and Electricity Costs
UK Energy Price Cap drives household electricity bills and gas prices, as Ofgem adjusts unit rates amid natural gas shortages, Russia-Ukraine disruptions, inflation, recession risks, and limited storage; government support offers only short-term relief.
Key Points
The UK Energy Price Cap limits per-unit gas and electricity charges set by suppliers and adjusted by Ofgem.
✅ Reflects wholesale natural gas costs; varies quarterly
✅ Protects consumers from sudden electricity and heating bill spikes
✅ Does not cap total annual spend; usage still determines bills
The government organization that controls the cost of energy in Great Britain recently increased what is known as a price cap on household energy bills. The price cap is the highest amount that gas suppliers can charge for a unit of energy.
The new, higher cost has people concerned that they may not be able to pay for their gas and electricity this winter. Some might pay as much as $4,188 for energy next year. Earlier this year, the price cap was at $2,320, and a 16% decrease in bills is anticipated in April.
Why such a change?
Oil and gas prices around the world have been increasing since 2021 as economies started up again after the coronavirus pandemic. More business activities required more fuel.
Then, Russia invaded Ukraine in late February, creating a new energy crisis. Russia limited the amount of natural gas it sent to European countries that needed it to power factories, produce electricity and keep homes warm.
Some energy companies are charging more because they are worried that Russia might completely stop sending gas to European countries. And in Britain, prices are up because the country does not produce much gas or have a good way to store it. As a result, Britain must purchase gas often in a market where prices are high, and ministers have discussed ending the gas-electricity price link to ease bills.
Citibank, a U.S. financial company, believes the higher energy prices will cause inflation in Britain to reach 18 percent in 2023, while EU energy inflation has also been driven higher by energy costs this year. And the Bank of England says an economic slowdown known as a recession will start later this year.
Public health and private aid organizations worry that high energy prices will cause a “catastrophe” as Britons choose between keeping their homes warm and eating enough food.
What can government do?
As prices rise, the British government plans to give people between $450 and $1,400 to help pay for energy costs, while some British MPs push to further restrict the price charged for gas and electricity. But the help is seen by many as not enough.
If the government approves more money for fuel, it will probably not come until September, as the energy security bill moves toward becoming law. That is the time the Conservative Party will select a new leader to replace Prime Minister Boris Johnson.
The Labour Party says the government should increase the amount it provides for people to pay for fuel by raising taxes on energy companies. However, the two politicians who are trying to become the next Prime Minister do not seem to support that idea.
Giovanna Speciale leads an organization called the Southeast London Community Energy group. It helps people pay their bills. She said the money will help but it is only a short-term solution to a bigger problem with Britain’s energy system. Because the system is privately run, she said, “there’s very little that the government can do to intervene in this.”
Other European countries are seeing higher energy costs, but not as high, and at the EU level, gas price cap strategies have been outlined to tackle volatility. In France, gas prices are capped at 2021 levels. In Germany, prices are up by 38 percent since last year. However, the government is reducing some taxes, which will make it easier for the average person to buy gas. In Italy, prices are going up, but the government recently approved over $8 billion to help people pay their energy bills.
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Macron: France, Germany to provide each other with gas, electricity, to weather crisis
France-Germany Energy Solidarity underscores EU energy crisis cooperation: gas supply swaps, electricity imports, price cap talks, and curbs on speculation as Russian pipeline flows halt and winter demand rises across the bloc.
Key Points
A pact where France sends gas to Germany as Germany supplies power, bolstering EU cooperation and winter security.
✅ Gas to Germany; power to France amid nuclear outages.
✅ EU price cap, anti-speculation, joint gas purchasing.
✅ No new Spain-France pipeline unless case improves.
France will send gas to Germany if needed while Germany stands ready to provide it with electricity, President Emmanuel Macron said on Monday, saying this showcased European solidarity in the face of the energy crisis stemming from the war in Ukraine, which many view as a wake-up call to ditch fossil fuels across the bloc.
European gas prices surged, share prices slid and the euro sank on Monday after Russia stopped pumping gas via a major supply route, and Germany's 200 billion euro package sought to cushion the blow, in another warning to the 27-nation EU as it scrambled to respond to the crisis ahead of winter. read more
"Germany needs our gas and we need power from the rest of Europe, notably Germany," France's president told a news conference as EU electricity reform remains under debate following a phone call with German Chancellor Olaf Scholz.
The necessary connections for France to deliver gas to Germany when needed would be finalised in the coming weeks, he said, adding that France, which had long been a net exporter of electricity, will need help from its neighbours because of technical problems its nuclear plants face. read more
Macron, however, said that he did not understand demand for a third gas link between France and Spain, rejecting calls to increase capacity with a new pipeline.
He added he was open to changing his mind on that point, especially as Germany's utility troubles deepen, should Scholz or Prime Minister Pedro Sanchez argue convincingly for it.
Ahead of a meeting on Friday of EU energy ministers, Macron said France was in favour of buying gas at a European rather than a national level, as emergency electricity measures are weighed, and called for European Union measures to control energy prices.
He said it was necessary to act against speculation on energy prices at EU level, as the EU outlines possible gas price cap strategies for discussion, and also said France was in favour of putting a cap on the price of pipeline Russian gas.
Macron also repeated calls for all to turn down air conditioners when it's hot and to limit heating to 19 degrees Celsius this winter, noting that rolling back electricity prices is tougher than it appears this year.
"Everyone has to do their bit," he said.
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Germany turns to coal for a third of its electricity
Germany's Coal Reliance reflects an energy crisis, soaring natural gas prices, and a nuclear phase-out, as Destatis data show higher coal-fired electricity despite growing wind and solar generation, impacting grid stability and emissions.
Key Points
Germany's coal reliance is more coal power due to gas spikes and a nuclear phase-out, despite wind and solar growth.
✅ Coal share near one-third of electricity, per Destatis
✅ Gas-fired output falls as prices soar after Russia's invasion
✅ Wind and solar rise; grid stability and recession risks persist
Germany is relying on highly-polluting coal for almost a third of its electricity, as the impact of government policies, reflecting an energy balancing act for the power sector, and the war in Ukraine leads producers in Europe’s largest economy to use less gas and nuclear energy.
In the first six months of the year, Germany generated 82.6 kWh of electricity from coal, up 17 per cent from the same period last year, according to data from Destatis, the national statistics office, published on Wednesday. The leap means almost one-third of German electricity generation now comes from coal-fired plants, up from 27 per cent last year. Production from natural gas, which has tripled in price to €235 per megawatt hour since Russia’s invasion in late February, fell 18 per cent to only 11.7 per cent of total generation.
Destatis said that the shift from gas to coal was sharper in the second quarter. Coal-fired electricity increased by an annual rate of 23 per cent in the three months to June, while electricity generation from natural gas fell 19 per cent.
The figures highlight the challenge facing European governments in meeting clean energy goals after the Kremlin announced this week that the Nordstream 1 pipeline that takes Russian gas to Germany would remain closed until Europe removed sanctions on the country’s oil.
Germany has been trying to reduce its reliance on coal, which releases almost twice as many emissions as gas and more than 60 times those of nuclear energy, according to estimates from the Intergovernmental Panel on Climate Change, though grid expansion challenges have slowed renewable build-out in recent years.
Chancellor Olaf Scholz said the opposition CDU bore “complete responsibility” for the exit from coal and nuclear power that formed part of his predecessor Angela Merkel’s Energiewende policies, amid a continuing nuclear option debate in climate policy, which in turn raised reliance on Russian gas. At the beginning of this year, more than 50 per cent of Germany’s gas imports came from Russia, a figure that fell slightly over the opening half of 2022.
But CDU leader Friedrich Merz accused the government of “madness” over its decision to idle the country’s three remaining nuclear power stations from the end of this year, though officials have argued that nuclear would do little to solve the gas issue in the short term.
Electricity generation from nuclear energy has already halved after three of the six nuclear power plants that were still in operation at the end of 2021 were closed during the first half of this year. Berlin said on Monday it would keep on standby two of its remaining three nuclear power stations, a move to extend nuclear power during the energy crisis, which were all due to close at the end of the year.
The German government has warned of the risk of electricity shortages this winter. “We cannot be sure that, in the event of grid bottlenecks in neighbouring countries, there will be enough power plants available to help stabilise our electricity grid in the short term,” said German economy minister Robert Habeck on Monday.
However Scholz said that, after raising gas storage levels to 86 per cent of capacity, Germany would “probably get through this winter, despite all the tension”.
One bright spot from the data was the increase in use of renewable energy, highlighting a recent renewables milestone in Germany. The proportion of electricity generated from wind power generation rose by 18 per cent to 25 per cent of all electricity generation, while solar energy production increased 20 per cent.
Ángel Talavera, head of Europe economics at the consultancy Oxford Economics, said that the success in moving away from gas towards other energy sources “means that the risks of hard energy rationing over the winter are less severe now, even with little to no Russian gas flows”.
However, economists still expect a recession in the eurozone’s largest economy, amid a deteriorating German economy outlook over the near term, as a large part of the impact comes via higher prices and because industries and households still rely on gas for heating.
Separate official data also published on Wednesday showed that German industrial production slid 0.3 per cent between June and July. Production at Germany’s most energy intensive industries fell almost 7 per cent in the five months after Russia’s invasion of Ukraine.
“The demand destruction caused by the surge in prices will still send the German economy into recession over the winter,” said Talavera.
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Germany's Energy Crisis Deepens as Local Utilities Cry for Help
Germany energy liquidity crisis is straining municipal utilities as gas and power prices surge, margin calls rise, and Russian supply cuts bite, forcing state support, interventions, and emergency financing to stabilize households and businesses.
Key Points
A cash squeeze on German municipal utilities as soaring gas and power prices trigger margin calls and funding gaps.
✅ Margin calls and spot-market purchases strain cash flow
✅ State liquidity lines and EU collateral support proposed
✅ Gazprom cuts, Uniper distress heighten default risks
Germany’s fears that soaring power prices and gas prices could trigger a deeper crisis is starting to get real.
Several hundred local utilities are coming under strain and need support, according to the head of Germany’s largest energy lobby group. The companies, generally owned by municipalities, supply households and small businesses directly and are a key part of the country’s power and gas network.
“The next step from the government and federal states must be to secure liquidity for these municipal companies,” Kerstin Andreae, chairwoman of the German Association of Energy and Water Industries, told Bloomberg in Berlin. “Prices are rising, and they have no more money to pay the suppliers. This is a big problem.”
Germany’s energy crunch intensified over the weekend after Russia’s Gazprom PJSC halted its key gas pipeline indefinitely, a stark wake-up call for policymakers to reduce fossil fuel dependence. European energy prices have surged again amid concerns over shortages this winter and fears of a worst-case energy scenario across the bloc.
Many utilities are running into financial issues as they’re forced to cover missing Russian deliveries with expensive supplies on the spot market. German energy giant Uniper SE, which supplies local utilities, warned it will likely burn through a 7 billion-euro ($7 billion) government safety net and will need more help already this month.
Some German local utilities have already sought help, according to a government official, who asked not to be identified in line with briefing rules.
With Europe’s largest economy already bracing for recession, Chancellor Olaf Scholz’s administration is battling on several fronts, testing the government’s financial capacity. The ruling coalition agreed Sunday on a relief plan worth about 65 billion euros -- part of an emerging energy shield package to contain the fallout of surging costs for households and businesses.
Starting in October, local utilities will have to pay a levy for the gas acquired, which will further increase their financial burden, Andreae said.
Margin Calls
European gas prices are more than four times higher than usual for this time of year, underscoring why rolling back electricity prices is tougher than it appears for policymakers, as Russia cuts supplies in retaliation for sanctions related to its invasion of Ukraine. When prices peak, energy companies have to pay margin calls, extra collateral required to back their trades.
Read more: Energy Trade Risks Collapsing Over Margin Calls of $1.5 Trillion
The problem has hit local utilities in other countries as well. In Austria, the government approved a 2 billion-euro loan for Vienna’s municipal utility last month.
The European Union is also planning help, floating gas price cap strategies among other tools. The bloc’s emergency measures will include support for electricity producers struggling to find enough cash to guarantee trades, according to European Commission President Ursula von der Leyen.
The situation has worsened in Germany as some of the country’s big gas importers are reluctant to sell more supplies to some of municipal companies amid fears they could default on payments, Andreae said.
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Vancouver seaplane airline completes first point-to-point flight with prototype electric aircraft
Harbour Air Electric Seaplane completes a point-to-point test flight, showcasing electric aircraft innovation, zero-emission short-haul travel, H55 battery technology, and magniX propulsion between Vancouver and Victoria, advancing sustainable aviation and urban air mobility.
Key Points
Retrofitted DHC-2 Beaver testing zero-emission short-haul flights with H55 batteries and magniX propulsion.
✅ 74 km in 24 minutes, Vancouver to Victoria test route
✅ H55 battery pack and magniX electric motor integration
✅ Aims to certify short-haul, zero-emission commercial service
A seaplane airline in Vancouver says it has achieved a new goal in its development of an electric aircraft.
Harbour Air Seaplanes said in a release about its first electric passenger flights timeline that it completed its first direct point-to-point test flight on Wednesday by flying 74 kilometres in 24 minutes from a terminal on the Fraser River near Vancouver International Airport to a bay near Victoria International Airport.
"We're really excited about this project and what it means for us and what it means for the electric aviation revolution to be able to keep pushing that forward," said Erika Holtz, who leads the project for the company.
Harbour Air, founded in 1982, uses small propeller planes to fly commercial flights between the Lower Mainland, Seattle, Vancouver Island, the Gulf Islands and Whistler.
In the last few years it has turned its attention to becoming a leader in green urban mobility, as seen with electric ships on the B.C. coast, which would do away with the need to burn fossil fuels, a major contributor to climate change, for air travel.
In December 2019, a pilot flew one of Harbour Air's planes — a more than 60-year-old DHC-2 de Havilland Beaver floatplane that had been outfitted with a Seattle-based company's electric propulsion system, magniX — for three minutes over Richmond.
Since then, the company has continued to fine-tune the plane and conduct test flights in order to meet federally regulated criteria for Canada's first commercial electric flight, showing it can safely fly with passengers.
Harbour Air's new fully electric seaplane flew over the Fraser River for three minutes today in its debut test flight.
Holtz said flying point-to-point this week was a significant step forward.
"Having this electric aircraft be able to prove that it can do scheduled flights, it moves us that step closer to being able to completely convert our entire fleet to electric," she said.
All the test flights so far have been made with only a pilot on board.
Vancouver seaplane company to resume test flights with electric commercial airplane
The ePlane will stay in Victoria for the weekend as part of an open house put on by the B.C. Aviation Museum before returning to Richmond.
A yellow seaplane flies over a body of water with the Vancouver skyline visible in the background.
A prototype all-electric floatplane made by B.C.'s Harbour Air Seaplanes on a test flight in Vancouver in 2021. (Harbour Air Seaplanes)
Early in Harbour Air's undertaking to develop an all-electric airplane, experts who study the aviation sector said Harbour Air would have to find a way to make the plane light enough to carry heavy lithium batteries and passengers, without exceeding weight limits for the plane.
Werner Antweiler, a professor of economics at UBC's Sauder School of Business who studies the commercialization of novel technologies around mobility, said in 2021 that Harbour Air's challenge would be proving to regulators that the plane was safe to fly and the batteries powerful enough to complete short-haul flights with power to spare.
In April 2021 Harbour Air partnered with Swiss company H55 to incorporate its battery technology, reflecting ongoing research investment to limit weight and improve the distance the plane could fly.
Shawn Braiden, a vice-president with Harbour Air, said the company is trying to get as much power as possible from the lightest possible batteries, a challenge shared by BC Ferries' hybrid ships as well.
"It's a balancing act," he said.
In December, Harbour Air announced it had begun work on converting a second de Havilland Beaver to an all-electric airplane, copying the original prototype.
The plan is to retrofit version two of the ePlane with room for a pilot plus three passengers. If certified for commercial use, it could become one of the first all-electric commercial passenger planes operating in the world.
Seth Wynes, a post-doctoral fellow at Concordia University who has studied how to de-carbonize the aviation industry, said Harbour Air's progress on its eplane project won't solve the pollution problem of long-haul flights, but could inspire other short-haul airlines to follow suit, alongside initiatives like electric ferries in B.C. that expand low-carbon transportation.
"It's also just really helpful to pilot these technologies and get them going where they can be scaled up and used in a bunch of different places around the world," he said. "So that's why Harbour Air making progress on this front is exciting."
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Overturning statewide vote, Maine court energizes Hydro-Quebec's bid to export power
Maine Hydropower Transmission Line revived by high court after referendum challenge, advancing NECEC, Hydro-Quebec supply, Central Maine Power partnership, clean energy integration, grid reliability, and lower rates across New England pending land-lease ruling.
Key Points
A court-revived NECEC line delivering 1,200 MW of Hydro-Quebec hydropower via CMP to strengthen the New England grid.
✅ Maine high court deems retroactive referendum unconstitutional
✅ Pending state land lease case may affect final route
✅ Project could lower rates and cut emissions in New England
Maine's highest court on Tuesday breathed new life into a $1-billion US transmission line that aims to serve as conduit for Canadian hydropower, after construction starts drew scrutiny, ruling that a statewide vote rebuking the project was unconstitutional.
The Supreme Judicial Court ruled that the retroactive nature of the referendum last year violated the project developer's constitutional rights, sending it back to a lower court for further proceedings.
The court did not rule in a separate case that focuses on a lease for a 1.6-kilometre portion of the proposed power line that crosses state land.
Central Maine Power's parent company and Hydro-Québec teamed up on the project that would supply up to 1,200 megawatts of Canadian hydropower, amid the ongoing Maine-Quebec corridor debate in the region. That's enough electricity for one million homes.
Most of the proposed 233-kilometre power transmission line would be built along existing corridors, but a new 85-kilometre section was needed to reach the Canadian border, echoing debates around the Northern Pass clash in New Hampshire.
Workers were already clearing trees and setting poles when the governor asked for work to be suspended after the referendum in November 2021, mirroring New Hampshire's earlier rejection of a Quebec-Massachusetts proposal that rerouted regional plans. The Maine Department of Environmental Protection later suspended its permit, but that could be reversed depending on the outcome of legal proceedings.
The high court was asked to weigh in on two separate lawsuits. Developers sought to declare the referendum unconstitutional while another lawsuit focused on a lease allowing transmission lines to cross a short segment of state-owned land.
Supporters say bold projects such as this one, funded by ratepayers in Massachusetts, are necessary to battle climate change and introduce additional electricity into a region that's heavily reliant on natural gas, which can cause spikes in energy costs, as seen with Nova Scotia rate increases recently across the Atlantic region.
Critics say the project's environmental benefits are overstated — and that it would harm the woodlands in western Maine.
It was the second time the Supreme Judicial Court was asked to weigh in on a referendum aimed at killing the project. The first referendum proposal never made it onto the ballot after the court raised constitutional concerns.
Although the project is funded by Massachusetts ratepayers, the introduction of so much electricity to the grid would serve to stabilize or reduce electricity rates for all consumers, proponents contend, even as Manitoba Hydro rate hikes face opposition elsewhere.
The referendum on the project was the costliest in Maine history, topping $90 million US and underscoring deep divisions.
The high-stakes campaign put environmental and conservation groups at odds, and pitted utilities backing the project, amid the Hydro One-Avista backlash, against operators of fossil fuel-powered plants that stand to lose money.
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Quebec and other provinces heading toward electricity shortage: report
Canada Electricity Shortage threatens renewable energy transition as EV adoption and building decarbonization surge; Hydro-Quebec exports, wind power expansion, demand response, and smart grid resilience shape investment and capacity planning.
Key Points
A looming supply gap in central and eastern provinces driven by EVs, heating decarbonization, exports, and limited new hydro.
✅ Hydro-Quebec capacity pressured by exports and new loads
✅ Wind power prioritized; new mega-dams deemed unworkable
✅ Smart meters boost flexibility but raise cyber risk
Quebec and other provinces in central and eastern Canada are heading toward a significant shortage of electricity to respond to the various needs of a transition to renewable energy, and Ontario's energy storage push underscores how supply is tightening across the region.
This is according to Polytechnique Montréal’s Institut de l’énergie Trottier, which published a report titled A Strategic Perspective on Electricity in Central and Eastern Canada last week.
The white paper says that at the current rate, most provinces will be incapable of meeting the electricity needs created by the increase in the number of electric vehicles, including the federal 2035 EV sales mandate that will amplify demand, and the decarbonization of building heating by 2030. “The situation worsens if we consider carbon neutrality objectives of the federal government and some provinces for 2050,” the institute says.
The researchers called on public utilities to immediately review their investment plans for the coming years in light of examples such as B.C.'s power supply challenges that accompany rapid green ambitions.
In a news conference Wednesday, Premier François Legault said the province could indeed be short on electricity as debates over Quebec's EV push continue. “We’re open to exploiting green hydrogen, if the price is good and also based on the electrical capacity we have. Because currently, we predict that in the coming years we’re going to lack electricity, so we must be prudent.”
Quebec is in a better position than other provinces because it is the largest hydroelectricity producer in the country. But that energy source also attracts new clients that have contributed to increased demand over the coming years, including data centres, cryptocurrency miners and greenhouses.
Report co-author Normand Mousseau said that while Hydro-Québec largely has the capacity to meet demand from electric vehicles, even amid EV shortages and wait times for buyers, heating and manufacturers, export contracts to the United States “risk reducing its leeway.”
Hydro-Québec will therefore have to find new sources of electricity, and Mousseau said the answer isn’t new dams.
“The reservoirs give an immense flexibility to the network, but we don’t have the capacity today to flood territories like we have done in the past,” said Mousseau, the institute’s scientific director. “From an environmental viewpoint and a social accessibility one, it’s unworkable.”
The solution would be more wind turbines, he said, adding construction could happen at “very competitive rates” and if there’s a surplus, “we can sell it without issue because other provinces are in an even worse situation than ours,” a reality echoed by eco groups in Northern Ontario sustainability discussions focused on the grid’s future.
The researchers propose solutions based on six themes: regulations, pricing, demand management, data, support for implementation and resilience.
In the resilience category, the report notes that innovative technology like smart meters makes the network more flexible, with pilots such as EV-to-grid integration in Nova Scotia illustrating emerging options, but also increases the risk of cyberattacks. The more extreme weather caused by climate change also increases the risks of damage to infrastructure while at the same time increasing demand.
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Is Ontario embracing clean power?
Ontario Clean Energy Expansion signals IESO-backed renewables, energy storage, and low-CO2 power to meet EV-driven demand, offset Pickering nuclear retirement, and balance interim gas-fired generation while advancing grid reliability, decarbonization, and net-zero targets.
Key Points
Ontario Clean Energy Expansion plans to grow renewables and storage, manage short-term gas, and meet rising demand.
✅ IESO long-term procurements for renewables and storage
✅ Interim reliance on gas to replace Pickering capacity
✅ Targets align with net-zero grid reliability goals
After cancelling hundreds of renewable power projects four years ago, the Doug Ford government appears set to expand clean energy to meet a looming electricity shortfall across the province.
Recent announcements from Ontario Energy Minister Todd Smith and the province’s electric grid management agency suggest the province plans to expand low-CO2 electricity with new wind and solar plans in the long-term, even as it ramps up gas-fired power over the next five years.
The moves are in response to an impending electricity shortfall as climate-conscious drivers switch to electric vehicles, farmers replace field crops with greenhouses and companies like ArcelorMittal Dofasco in Hamilton switch from CO2-heavy manufacturing to electricity-based production. Forecasters predict Canada will need to double its power supply by 2050.
While Ontario has a relatively low-CO2 power system, the province’s electricity supply will be reduced in 2025 when Ontario Power Generation closes the 50-year-old Pickering nuclear station, now near the end of its operating life. This will remove 3,100 megawatts of low-CO2 generation, about eight per cent of the province’s 40,000-megawatt total.
The impending closure has created a difficult situation for the Independent Electricity System Operator (IESO), the provincial agency managing Ontario’s grid. Last year, it forecasted it would need to sharply increase CO2-polluting natural gas-fired power to avoid widespread blackouts.
This would mean drivers switching to electric vehicles or companies like Dofasco cutting CO2 through electrification would end up causing higher power system emissions.
It would also fly in the face of the federal government’s ambition to create a net-zero national electricity system by 2035, a critical part of Canada’s pledge to reduce CO2 emissions to zero by 2050.
Yet the Ford government has appeared reluctant to expand clean energy. In the 2018 election, clean electricity was a key issue as it appealed to anti-turbine voters in rural Ontario and cancelled more than 700 renewable energy contracts shortly after taking office, taking 400 megawatts out of the system.
But there are signs the government is having a change of heart. IESO recently released a list of 55 companies approved to submit bids for 3,500 megawatts of long-term electricity contracts starting between 2025 and 2027, and the energy minister has outlined a plan to address growing energy needs as well.
The companies include a variety of potential producers, ranging from Canadian and global renewable companies to local utilities and small startups. Most are renewable power or energy storage companies specializing in low- or zero-emission power. IESO plans additional long-term bid offerings in the future.
This doesn’t mean gas generation will be turned off. IESO will contract yearly production from existing gas plants until 2028 (the annual contract in 2023 will be for about 2,000 megawatts). As well, IESO has issued contracts to four gas-fired producers, a small wind company and a storage company to begin production of about 700 megawatts to boost gas plant output starting between 2024 and 2026.
While this represents an expansion of existing gas-fired generation, Smith has asked IESO to report on a gas moratorium, saying he doesn’t believe new gas plants will be needed over the long term.
The NDP and Greens criticized the government for relying on gas in the near term. But clean energy advocates greeted the long-term plans positively.
The IESO process “will contribute to a clean, reliable and affordable grid,” said the Canadian Renewable Energy Association.
Rachel Doran, director of policy and strategy at Clean Energy Canada, said in an email the potential gas generation moratorium “is an encouraging step forward,” although she criticized the “unfortunate decision to replace near-term nuclear power capacity with climate-change-causing natural gas.”
There will have to be a massive clean energy expansion to green Ontario’s grid well beyond what has been announced in recent days for Ontario to meet its future energy needs (think a doubling of Ontario’s current 40,000-megawatt capacity by 2050).
But these first steps hold promise that Ontario is at least starting on the path to that goal, rather than scrambling to keep the lights on with CO2-polluting natural gas.
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Ontario energy minister asks for early report exploring a halt to natural gas power generation
Ontario Natural Gas Moratorium gains momentum as IESO weighs energy storage, renewables, and demand management to meet rising electricity demand, ensure grid reliability, and advance zero-emissions goals while long-term capacity procurements proceed.
Key Points
A proposed halt on new gas plants as IESO assesses storage and renewables to maintain reliability and cut emissions.
✅ Minister seeks interim IESO report by Oct. 7
✅ Near-term contracts extend existing gas plants for reliability
✅ Long-term procurements emphasize storage, renewables, conservation
Ontario's energy minister says he doesn't think the province needs any more natural gas generation and has asked the electricity system regulator to speed up a report exploring a moratorium.
Todd Smith had previously asked the Independent Electricity System Operator (IESO) to report back by November on the feasibility of a moratorium and a plan to get to zero emissions in the electricity sector.
He has asked them today for an interim report by Oct. 7 so he can make a decision on a moratorium before the IESO secures contracts over the long term for new power generation.
"I've asked the IESO to speed up that report back to us so that we can get the information from them as to what the results would be for our grid here in Ontario and whether or not we actually need more natural gas," Smith said Tuesday after question period.
"I don't believe that we do."
Smith said that is because of the "huge success" of two updates provided Tuesday by the IESO to its attempts to secure more electricity supply for both the near term and long term. Demand is growing by nearly two per cent a year, while Ontario is set to lose a significant amount of nuclear generation, including the planned shutdown of the Pickering nuclear station over the next few years.
'For the near term, we need them,' regulator says
The regulator today released a list of 55 qualified proponents for those long-term bids and while it says there is a significant amount of proposed energy storage projects on that list, there are some new gas plants on it as well.
Chuck Farmer, the vice-president of planning, conservation and resource adequacy at the IESO, said it's hoped that the minister makes a decision on whether or not to issue a moratorium on new gas generation before the regulator proceeds with a request for proposals for long-term contracts.
The IESO also announced six new contracts — largely natural gas, with a small amount of wind power and storage — to start in the next few years. Farmer noted that these contracts were specifically for existing generators whose contracts were ending, while the province is exploring new nuclear plants for the longer term.
"When you look at the pool of generation resources that were in that situation, the reality is most of them were actually natural gas plants, and that we are relying on the continued use of the natural gas plants in the transition," he said in an interview.
"So for the near term, we need them for the reliability of the system."
The upcoming request for proposals for more long-term contracts hopes to secure 3,500 megawatts of capacity, as Ontario faces an electricity shortfall in the coming years, and Farmer said the IESO plans to run a series of procurements over the next few years.
Opposition slams reliance on natural gas
The NDP and Greens on Tuesday criticized Ontario's reliance in the near term on natural gas because of its environmental implications.
The IESO has said that due to natural gas, greenhouse gas emissions from the electricity sector are set to increase for the next two decades, but by about 2038 it projects the net reductions from electric vehicles will offset electricity sector emissions.
Green Party Leader Mike Schreiner said it makes no sense to ramp up natural gas, both for the climate and for people's wallets.
"The cost of wind and solar power is much lower than gas," he said.
Ontario quietly revises its plan for hitting climate change targets
"We're in a now-or-never moment to address the climate crisis and the government is failing to meet this moment."
Interim NDP Leader Peter Tabuns said Ontario wouldn't be in as much of a supply crunch if the Progressive Conservative government hadn't cancelled 750 green energy contracts during their first term.
The Tories argued the province didn't need the power and the contracts were driving up costs for ratepayers, amid debate over whether greening the grid would be affordable.
The IESO said it is also proposing expanding conservation and demand management programs, as a "highly cost-effective" way to reduce strain on the system, though it couldn't say exactly what is on the table until the minister accepts the recommendation.
