Enbridge opens wind farm in Kincardine

Ontario Hydro Crisis highlights soaring electricity rates, costly subsidies, nuclear refurbishments, and stalled renewables in Ontario. Policy missteps, weak planning, and rising natural gas emissions burden ratepayers while energy efficiency and storage remain underused.

Key Points

High power costs and subsidies from policy errors, nuclear refurbishments, stalled efficiency and renewables in Ontario.

✅ $5.6B yearly subsidy masks electricity rates and deficits

✅ Nuclear refurbishments embed rising costs for decades

✅ Efficiency, storage, and DERs stalled amid weak planning

By Mark Winfield

While the troubled Site C and Muskrat Falls hydroelectric dam projects in B.C. and Newfoundland and Labrador have drawn a great deal of national attention over the past few months, Ontario has quietly been having a hydro crisis of its own.

One of the central promises in the 2018 platform of the Ontario Progressive Conservative party was to “clean up the hydro mess,” and then-PC leader Doug Ford vowed to fire Hydro One's leadership as part of that effort. There certainly is a mess, with the costs of subsidies taken from general provincial revenues to artificially lower hydro rates nearing $7 billion annually. That is a level approaching the province’s total pre-COVID-19 annual deficit. After only two years, that will also exceed total expected cost overruns of the Site C and Muskrat Falls projects, currently estimated at $12 billion ($6 billion each).

There is no doubt that Doug Ford’s government inherited a significant mess around the province’s electricity system from the previous Liberal governments of former premiers Dalton McGuinty and Kathleen Wynne. But the Ford government has also demonstrated a remarkable capacity for undoing the things its predecessors had managed to get right while doubling down on their mistakes.

The Liberals did have some significant achievements. Most notably: coal-fired electricity generation, which constituted 25 per cent of the province’s electricity supply in the early 2000s, was phased out in 2014. The phaseout dramatically improved air quality in the province. There was also a significant growth in renewable energy production. From  virtually zero in 2003, the province installed 4,500 MW of wind-powered generation, and 450 MW of solar photovoltaic by 2018, a total capacity more than double that of the Sir Adam Beck Generating Stations at Niagara Falls.

At the same time, public concerns over rising hydro rates flowing from a major reconstruction of the province’s electricity system from 2003 onwards became a central political issue in the province. But rather than reconsider the role of the key drivers of the continuing rate increases – namely the massively expensive and risky refurbishments of the Darlington and Bruce nuclear facilities, the Liberals adopted a financially ruinous Fair Hydro Plan. The central feature of the 2017 plan was a short-term 25 per cent reduction in hydro rates, financed by removing the provincial portion of the HST from hydro bills, and by extending the amortization period for capital projects within the system. The total cost of the plan in terms of lost revenues and financing costs has been estimated in excess of $40 billion over 29 years, with the burden largely falling on future ratepayers and taxpayers.

Decision-making around the electricity system became deeply politicized, and a secret cabinet forecast of soaring prices intensified public debate across Ontario. Legislation adopted by the Wynne government in 2016 eliminated the requirement for the development of system plans to be subject to any form of meaningful regulatory oversight or review. Instead, the system was guided through directives from the provincial cabinet. Major investments like the Darlington and Bruce refurbishments proceeded without meaningful, public, external reviews of their feasibility, costs or alternatives.

The Ford government proceeded to add more layers to these troubles. The province’s relatively comprehensive framework for energy efficiency was effectively dismantled in March, 2019, with little meaningful replacement. That was despite strong evidence that energy efficiency offered the most cost-effective strategy for reducing greenhouse gas emissions and electricity costs.

The Ford government basically retained the Fair Hydro Plan and promised further rate reductions, later tabling legislation to lower electricity rates as well. To its credit, the government did take steps to clarify real costs of the plan. Last year, these were revealed to amount to a de facto $5.6 billion-per-year subsidy coming from general revenues, and rising. That constituted the major portion of the province’s $7.4 billion pre-COVID-19 deficit. The financial hole was deepened further through November’s financial statement, with the addition of a further $1.3 billion subsidy to commercial and industrial consumers. The numbers can only get worse as the costs of the Darlington and Bruce refurbishments become embedded more fully into electricity rates.

The government also quietly dispensed with the last public vestige of an energy planning framework, relieving itself of the requirement to produce a Long-Term Energy Plan every three years. The next plan would normally have been due next month, in February.

Even the gains from the 2014 phaseout of coal-fired electricity are at risk. Major increases are projected in emissions of greenhouse gases, smog-causing nitrogen oxides and particulate matter from natural gas-fired power plants as the plants are run to cover electricity needs during the Bruce and Darlington refurbishments over the next decade. These developments could erode as much as 40 per cent of the improvements in air quality and greenhouse gas emission gained through the coal phaseout.

The province’s activities around renewable energy, energy storage and distributed energy resources are at a standstill, with exception of a few experimental “sandbox” projects, while other jurisdictions face profound electricity-sector change and adapt. Globally, these technologies are seen as the leading edge of energy-system development and decarbonization. Ontario seems to have chosen to make itself an energy innovation wasteland instead.

The overall result is a system with little or no space for innovation that is embedding ever-higher costs while trying to disguise those costs at enormous expense to the provincial treasury and still failing to provide effective relief to low-income electricity consumers.

The decline in electricity demand associated with the COVID-19 pandemic, along with the introduction of a temporary recovery rate for electricity, gives the province an opportunity to step back and consider its next steps with the electricity system. A phaseout of the Fair Hydro Plan electricity-rate reduction and its replacement with a more cost-effective strategy of targeted relief aimed at those most heavily burdened by rising hydro rates, particularly rural and low-income consumers, as reconnection efforts for nonpayment have underscored the hardship faced by many households, would be a good place to start.

Next, the province needs to conduct a comprehensive, public review of electricity options available to it, including additional renewables – the costs of which have fallen dramatically over the past decade – distributed energy resources, hydro imports from Quebec and energy efficiency before proceeding with further nuclear refurbishments.

In the longer term, a transparent, evidence-based process for electricity system planning needs to be established – one that is subject to substantive public and regulatory oversight and review. Finally, the province needs to establish a new organization to be called Energy Efficiency Ontario to revive its efforts around energy efficiency, developing a comprehensive energy-efficiency strategy for the province, covering electricity and natural gas use, and addressing the needs of marginalized communities.

Without these kinds of steps, the province seems destined to continue to lurch from contradictory decision after contradictory decision as the economic and environmental costs of the system’s existing trajectory continue to rise.

Mark Winfield is a professor of environmental studies at York University and co-chair of the university’s Sustainable Energy Initiative.

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Toronto Hydro Storm Outages continue after strong winds and heavy rain, with crews restoring power, clearing debris and downed lines. Safety alerts and real-time updates guide affected neighborhoods via website and social media.

Key Points

Toronto Hydro Storm Outages are weather-related power cuts; crews restore service safely and share public updates.

✅ Crews prioritize areas with severe damage and limited access

✅ Report downed power lines; keep a safe distance

✅ Check website and social media for restoration updates

In the aftermath of a powerful spring storm that swept through Toronto on Tuesday, approximately 400 customers remain without power as of Sunday. The storm, which brought strong winds and heavy rain that caused severe flooding in some areas, led to significant damage across the city, including downed trees and power lines. Toronto Hydro crews have been working tirelessly to restore service, similar to efforts by Sudbury Hydro crews in Northern Ontario, focusing on areas with the most severe damage. While many customers have had their power restored, the remaining outages are concentrated in neighborhoods where access is challenging due to debris and fallen infrastructure.

Toronto Hydro has assured residents that restoration efforts are ongoing and that they are prioritizing safety and efficiency, in step with recovery from damaging storms in Ontario across the province. The utility company has urged residents to report any downed power lines and to avoid approaching them, as they may still be live and dangerous, and notes that utilities sometimes rely on mutual aid deployments to speed restoration in large-scale events. Additionally, Toronto Hydro has been providing updates through their website and social media channels, keeping the public informed about the status of power restoration in affected areas.

The storm's impact has also led to disruptions in other services, and power outages in London disrupted morning routines for thousands earlier in the week. Some public transportation routes experienced delays due to debris on tracks, and several schools in the affected areas were temporarily closed. City officials are coordinating with various agencies to address these issues and ensure that services return to normal as quickly as possible, even as Quebec contends with widespread power outages after severe windstorms.

Residents are advised to stay updated on the situation through official channels and to exercise caution when traveling in storm-affected areas. Toronto Hydro continues to work diligently to restore power to all customers and appreciates the public's patience during this challenging time, a challenge echoed when Texas utilities struggled to restore power during Hurricane Harvey.

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Alberta Electricity Peak Demand surged to 10,638 MW, as AESO reported record summer load from air conditioning, Stampede visitors, and heatwave conditions, with ample generation capacity, stable grid reliability, and conservation urged during 5-7 p.m.

Key Points

It is the record summer power load in Alberta, reaching 10,638 MW, with evening conservation urged by AESO.

✅ Record 10,638 MW at 4 pm; likely to rise this week

✅ Drivers: A/C use, heat, Stampede visitors

✅ AESO reports ample capacity; conserve 5-7 pm

Consumer use hit 10,638 MW, blowing past a previous high of 10,520 MW set on July 9, 2015, said the Alberta Electric System Operator (AESO).

“We hit a new summer peak and it’s likely we’ll hit higher peaks as the week progresses,” said AESO spokeswoman Tara De Weerd.

“We continue to have ample supply, and as Alberta's electricity future trends toward more wind, our generators are very confident there aren’t any issues.”

That new peak was set at 4 p.m. but De Weerd said it was likely to be exceeded later in the day.

Heightened air conditioner use is normally a major driver of such peak electricity consumption, said De Weerd.

She also said Calgary’s big annual bash is also likely playing a role.

“It’s the beginning of Stampede, you have an influx of visitors so you’ll have more people using electricity,” she said.

Alberta’s generation capacity is 16,420 MW, said the AESO, with wind power increasingly outpacing coal in the province today.

There are no plans, she said, for any of the province’s electricity generators to shut down any of their plants for maintenance or other purposes in the near future as demand rises.

The summer peak is considerably smaller than that reached in the depths of Alberta’s winter.

Alberta’s winter peak usage was recorded last year and was 11,458 MW.

Though the province’s capacity isn’t being strained by the summer heat, De Weerd still encouraged consumers to go easy during the peak use time of the day, between 5 and 7 p.m.

“We don’t have to be running all of our appliances at once,” she said.

Alberta exports an insignificant amount of electricity to Montana, B.C. and Saskatchewan, where demand recently set a new record.

The weather forecast calls for temperatures to soar above 30C through the weekend.

In northern Canada, Yukon electricity demand recently hit a record high, underscoring how extreme temperatures can strain systems.

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Canada Clean Electricity Standard targets a net-zero grid by 2035, using carbon pricing, CO2 caps, and carbon capture while expanding renewables and interprovincial trade to decarbonize power in Alberta, Saskatchewan, and Ontario.

Key Points

A federal plan to reach a net-zero grid by 2035 using CO2 caps, carbon pricing, carbon capture, renewables, and trade.

✅ CO2 caps and rising carbon prices through 2050

✅ Carbon capture required on gas plants in high-emitting provinces

✅ Renewables build-out and interprovincial trade to balance supply

A new tool has been proposed in the federal election campaign as a way of eradicating the carbon emissions from Canada’s patchwork electricity system. 

As the country’s need for power grows through the decarbonization of transportation, industry and space heating, the Liberal Party climate plan is proposing a clean energy standard to help Canada achieve a 100% net-zero-electricity system by 2035, aligning with Canada’s net-zero by 2050 target overall. 

The proposal echoes a report released August 19 by the David Suzuki Foundation and a group of environmental NGOs that also calls for a clean electricity standard, capping power-sector emissions, and tighter carbon-pricing regulations. The report, written by Simon Fraser University climate economist Mark Jaccard and data analyst Brad Griffin, asserts that these policies would effectively decarbonize Canada’s electricity system by 2035.

“Fuel switching from dirty fossil fuels to clean electricity is an essential part of any serious pathway to transition to a net-zero energy system by 2050,” writes Tom Green, climate policy advisor to the Suzuki Foundation, in a foreword to the report. The pathway to a net-zero grid is even more important as Canada switches from fossil fuels to electric vehicles, space heating and industrial processes, even as the Canadian Gas Association warns of high transition costs.

Under Jaccard and Griffin’s proposal, a clean electricity standard would be established to regulate CO2 emissions specifically from power plants across Canada. In addition, the plan includes an increase in the carbon price imposed on electricity system releases, combined with tighter regulation to ensure that 100% of the carbon price set by the federal government is charged to electricity producers. The authors propose that the current scheduled carbon price of $170 per tonne of CO2 in 2030 should rise to at least $300 per tonne by 2050.

In Alberta, Saskatchewan, Ontario, New Brunswick and Nova Scotia, the 2030 standard would mean that all fossil-fuel-powered electricity plants would require carbon capture in order to comply with the standard. The provinces would be given until 2035 to drop to zero grams CO2 per kilowatt hour, matching the 2030 standard for low-carbon provinces (Quebec, British Columbia, Manitoba, Newfoundland and Labrador and Prince Edward Island). 

Alberta and Saskatchewan targeted 
Canada has a relatively clean electricity system, as shown by nationwide progress in electricity, with about 80% of the country’s power generated from low- or zero-emission sources. So the biggest impacts of the proposal will be felt in the higher-carbon provinces of Alberta and Saskatchewan. Alberta has a plan to switch from coal-based electric power to natural gas generation by 2023. But Saskatchewan is still working on its plan. Under the Jaccard-Griffin proposal, these provinces would need to install carbon capture on their gas-fired plants by 2030 and carbon-negative technology (biomass with carbon capture, for instance) by 2035. Saskatchewan has been operating carbon capture and storage technology at its Boundary Dam power station since 2014, but large-scale rollout at power plants has not yet been achieved in Canada. 

With its heavy reliance on nuclear and hydro generation, Ontario’s electricity supply is already low carbon. Natural gas now accounts for about 7% of the province’s grid, but the clean electricity standard could pose a big challenge for the province as it ramps up natural-gas-generated power to replace electricity from its aging Pickering station, scheduled to go out of service in 2025, even as a fully renewable grid by 2030 remains a debated goal. Pickering currently supplies about 14% of Ontario’s power. 

Ontario doesn’t have large geological basins for underground CO2 storage, as Alberta and Saskatchewan do, so the report says Ontario will have to build up its solar and wind generation significantly as part of Canada’s renewable energy race, or find a solution to capture CO2 from its gas plants. The Ontario Clean Air Alliance has kicked off a campaign to encourage the Ontario government to phase out gas-fired generation by purchasing power from Quebec or installing new solar or wind power.

As the report points out, the federal government has Supreme Court–sanctioned authority to impose carbon regulations, such as a clean electricity standard, and carbon pricing on the provinces, with significant policy implications for electricity grids nationwide.

The federal government can also mandate a national approach to CO2 reduction regardless of fuel source, encouraging higher-carbon provinces to work with their lower-carbon neighbours. The Atlantic provinces would be encouraged to buy power from hydro-heavy Newfoundland, for example, while Ontario would be encouraged to buy power from Quebec, Saskatchewan from Manitoba, and Alberta from British Columbia.

The Canadian Electricity Association, the umbrella organization for Canada’s power sector, did not respond to a request for comment on the Jaccard-Griffin report or the Liberal net-zero grid proposal.

Just how much more clean power will Canada need? 
The proposal has also kicked off a debate, and an IEA report underscores rising demand, about exactly how much additional electricity Canada will need in coming decades.

In his 2015 report, Pathways to Deep Decarbonization in Canada, energy and climate analyst Chris Bataille estimated that to achieve Canada’s climate net-zero target by 2050 the country will need to double its electricity use by that year.

Jaccard and Griffin agree with this estimate, saying that Canada will need more than 1,200 terawatt hours of electricity per year in 2050, up from about 640 terawatt hours currently.

But energy and climate consultant Ralph Torrie (also director of research at Corporate Knights) disputes this analysis.

He says large-scale programs to make the economy more energy efficient could substantially reduce electricity demand. A major program to install heat pumps and replace inefficient electric heating in homes and businesses could save 50 terawatt hours of consumption on its own, according to a recent report from Torrie and colleague Brendan Haley. 

Put in context, 50 terawatt hours would require generation from 7,500 large wind turbines. Applied to electric vehicle charging, 50 terawatt hours could power 10 million electric vehicles.

While Torrie doesn’t dispute the need to bring the power system to net-zero, he also doesn’t believe the “arm-waving argument that the demand for electricity is necessarily going to double because of the electrification associated with decarbonization.” 

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Aurelia Boat Club delivers electric boat membership in Seattle, featuring zero-emission propulsion, quiet cruising, sustainable recreation, and a managed fleet with maintenance, insurance, moorage, and charging handled for members seeking hassle-free, eco-friendly boating.

Key Points

Aurelia Boat Club is a Seattle membership offering all-electric boats, with maintenance, insurance, and moorage included.

✅ Unlimited access to an all-electric fleet

✅ Maintenance, insurance, moorage, and charging included

✅ Quiet, zero-emission cruising on Seattle waters

Seattle's maritime scene has welcomed a new player: Aurelia Boat Club. Founded by former Pure Watercraft employees, Aurelia is poised to redefine electric boating in the city, where initiatives like Washington State Ferries hybrid-electric upgrade are underway. The club's inception follows the unexpected closure of Pure Watercraft, a Seattle-based startup that aimed to revolutionize the pleasure boating industry before its financial troubles led to its downfall.

From Pure Watercraft to Aurelia Boat Club

Pure Watercraft, established in 2011, garnered attention for its innovative electric propulsion systems designed to replace traditional gas-powered motors in boats, while efforts to build the first commercial electric speedboats also advanced. The company attracted significant investment, including a notable partnership with General Motors in 2021, which acquired a 25% stake in Pure Watercraft. Despite these efforts, Pure Watercraft faced financial difficulties and entered receivership in 2024, leading to the liquidation of its assets. 

Amidst this transition, Danylo Kurgan and Mrugesh Desai saw an opportunity to continue the vision of electric boating. Kurgan, formerly a financial analyst at Pure Watercraft and involved in the company's boat club operations, teamed up with Desai, a technology executive and startup investor. Together, they acquired key assets from Pure Watercraft's receivership, including electric outboard motors, pontoon boats, inflatable crafts, battery systems, spare parts, and digital infrastructure. 

Aurelia Boat Club's Offerings

Aurelia Boat Club aims to provide a sustainable and accessible alternative to traditional gas-powered boat clubs in Seattle. Members can enjoy unlimited access to a fleet of all-electric boats without the responsibilities of ownership. The club's boats are equipped with electric motors, offering a quiet and environmentally friendly boating experience, similar to how electric ships are clearing the air on the B.C. coast. Additionally, Aurelia handles maintenance, repairs, insurance, and moorage, allowing members to focus solely on enjoying their time on the water. 

The Future of Electric Boating in Seattle

Aurelia Boat Club's launch signifies a growing interest in sustainable boating practices in Seattle. The club's founders are committed to scaling the business and expanding their fleet to meet the increasing demand for eco-friendly recreational activities, as projects like battery-electric high-speed ferries indicate. By leveraging the assets and knowledge gained from Pure Watercraft, Aurelia aims to continue the legacy of innovation in the electric boating industry.

As the boating community becomes more environmentally conscious, initiatives like Aurelia Boat Club play a crucial role in promoting sustainable practices, and examples such as Harbour Air's electric aircraft highlight the momentum. The club's success could serve as a model for other cities, demonstrating that with the right vision and resources, the transition to electric boating is not only feasible but also desirable.

While the closure of Pure Watercraft marked the end of one chapter, it also paved the way for new ventures like Aurelia Boat Club to carry forward the mission of transforming the boating industry, with regional moves like the Kootenay Lake electric-ready ferry and international innovations such as Berlin electric flying ferry showing what's possible. With a strong foundation and a clear vision, Aurelia is set to make significant waves in Seattle's electric boating scene.

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Ontario Clean Electricity Regulations accelerate renewable energy adoption, drive emissions reduction, and modernize the smart grid with energy storage, efficiency targets, and reliability upgrades to support decarbonization and a stable power system for Ontario.

Key Points

Standards to cut emissions, grow renewables, improve efficiency, and modernize the grid with storage and smart systems.

✅ Phases down fossil generation and invests in storage.

✅ Sets utility efficiency targets to curb demand growth.

✅ Upgrades to smart grid for reliability and resiliency.

Ontario has taken a significant step forward in its energy transition with the introduction of new clean electricity regulations. These regulations, complementing federal Clean Electricity Regulations, aim to reduce carbon emissions, promote sustainable energy sources, and ensure a cleaner, more reliable electricity grid for future generations. This article explores the motivations behind these regulations, the strategies being implemented, and the expected impacts on Ontario’s energy landscape.

The Need for Clean Electricity

Ontario, like many regions around the world, is grappling with the effects of climate change, including more frequent and severe weather events. In response, the province has set ambitious targets to reduce greenhouse gas emissions and increase the use of renewable energy sources, reflecting trends seen in Alberta’s path to clean electricity across Canada. The electricity sector plays a central role in this transition, as it is responsible for a significant portion of the province’s carbon footprint.

For years, Ontario has been moving away from coal as a source of electricity generation, and now, with the introduction of these new regulations, the province is taking a step further in decarbonizing its grid, including its largest competitive energy procurement to date. By setting clear goals and standards for clean electricity, the province hopes to meet its environmental targets while ensuring a stable and affordable energy supply for all Ontarians.

Key Aspects of the New Regulations

The regulations focus on encouraging the use of renewable energy sources such as wind, solar, hydroelectric, and geothermal power. One of the key elements of the plan is the gradual phase-out of fossil fuel-based energy sources. This shift is expected to be accompanied by greater investments in energy storage solutions, including grid batteries, to address the intermittency issues often associated with renewable energy sources.

Ontario’s new regulations also emphasize the importance of energy efficiency in reducing overall demand. As part of this initiative, utilities and energy providers will be required to meet strict energy-saving targets and participate in new electricity auctions designed to reduce costs, ensuring that both consumers and businesses are incentivized to use energy more efficiently.

In addition, the regulations promote technological innovation in the electricity sector. By supporting the development of smart grids, energy storage technologies, and advanced power management systems, Ontario is positioning itself to become a leader in the global energy transition.

Impact on the Economy and Jobs

One of the anticipated benefits of the clean electricity regulations is their positive impact on Ontario’s economy. As the province invests in renewable energy infrastructure and clean technologies, new job opportunities are expected to arise in industries such as manufacturing, construction, and research and development. These regulations also encourage innovation in energy services, which could lead to the growth of new companies and industries, while easing pressures on industrial ratepayers through complementary measures.

Furthermore, the transition to cleaner energy is expected to reduce the long-term costs associated with climate change. By investing in sustainable energy solutions now, Ontario will help mitigate the financial burdens of environmental damage and extreme weather events in the future.

Challenges and Concerns

While the new regulations have been widely praised for their environmental benefits, they are not without their challenges. One of the primary concerns is the potential cost to consumers, and some Ontario hydro policy critique has called for revisiting legacy pricing approaches to improve affordability. While renewable energy sources have become more affordable over the years, transitioning from fossil fuels could still result in higher electricity prices in the short term. Additionally, the implementation of new technologies, such as smart grids and energy storage, will require substantial upfront investment.

Moreover, the intermittency of renewable energy generation poses a challenge to grid stability. Ontario’s electricity grid must be able to adapt to fluctuations in energy supply as more variable renewable sources come online. This challenge will require significant upgrades to the grid infrastructure and the integration of storage solutions to ensure reliable energy delivery.

The Road Ahead

Ontario’s clean electricity regulations represent an important step in the province’s commitment to combating climate change and transitioning to a sustainable, low-carbon economy. While there are challenges to overcome, the benefits of cleaner air, reduced emissions, and a more resilient energy system will be felt for generations to come. As the province continues to innovate and lead in the energy sector, Ontario is positioning itself to thrive in the green economy of the future.

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