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US Electricity Demand Outlook examines EIA forecasts, GDP decoupling, energy efficiency, electrification, electric vehicles, grid load growth, and weather variability to frame long term demand trends and utility planning scenarios.

Key Points

An analysis of EIA projections showing demand decoupling from GDP, with EV adoption and efficiency shaping future grid load.

✅ EIA lowers load growth; demand decouples from GDP.

✅ Efficiency and sector shifts depress kWh sales.

✅ EV adoption could revive load and capacity needs.

Electricity producers and distributors are in an unusual business. The product they provide is available to all customers instantaneously, literally at the flip of a switch. But the large amount of equipment, both hardware and software to do this takes years to design, site and install.

From a long range planning perspective, just as important as a good engineering design is an accurate sales projections. For the US electric utility industry the most authoritative electricity demand projec-tions come from the Department of Energy’s Energy Information Administration (EIA). EIA's compre-hensive reports combine econometric analysis with judgment calls on social and economic trends like the adoption rate of new technologies that could affect future electricity demand, things like LED light-ing and battery powered cars, and the rise of renewables overtaking coal in generation.

Before the Great Recession almost a decade ago, the EIA projected annual growth in US electricity production at roughly 1.5 percent per year. After the Great Recession began, the EIA lowered its projections of US electricity consumption growth to below 1 percent. Actual growth has been closer to zero. While the EIA did not antici-pate the last recession or its aftermath, we cannot fault them on that.

After the event, though, the EIA also trimmed its estimates of economic growth. For the 2015-2030 period it now predicts 2.1 percent economic and 0.3 percent electricity growth, down from previously projections of 2.7 percent and 1.3 percent respectively. (See Figures 1 and 2.)

Table 1. EIA electric generation projections by year of forecast (kWh billions)

Table 2. EIA forecast of GDP by year of forecast (billion 2009 $)

Back in 2007, the EIA figured that every one percent increase in economic activity required a 0.48 percent in-crease in electric generation to support it. By 2017, the EIA calculated that a 1 percent growth in economic activity now only required a 0.14 percent increase in electric output. What accounts for such a downgrade or disconnect between electricity usage and economic growth? And what factors might turn the numbers 
around?

First, the US economy lost energy intensive heavy industry like smelting, steel mills and refineries; patterns in China's electricity sector highlight how industrial shifts can reshape power demand. A more service oriented economy (think health care) relies more heavily on the movement of data or information and uses far less power than a manufacturing-oriented economy.

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Second, internet shopping has hurt so-called "brick and mortar" retailers. Despite the departure of heavy industry, in years past a burgeoning US commercial sector increased its demand and usage of electricity to offset the industrial decline. But not anymore. Energy efficiency measures as well as per-haps greater concern about global warming and greenhouse gas emissions and have cut into electricity sales. “Do more with less” has the right ring to it.

But there may be other components to the ongoing decline in electricity usage. Academic studies show that electricity usage seems to increase with income along an S curve, and flattens out after a certain income level. That is, if you earn $1 billion per year you do not (or cannot) use ten times a much electricity as someone earning only $100 million.

But people at typical, middle income levels increase or decrease electricity usage when incomes rise or fall. The squeeze on middle income families was discussed often in the late presidential campaign. In recent decades an increasing percentage of income has gone to a small percentage of the population at the top of the income scale. This trend probably accounts for some weakness in residential sales. This suggests that government policy addressing income inequality would also boost electricity sales.

Population growth affects demand for electricity as well as the economy as a whole. The EIA has made few changes in its projections, showing 0.7 percent per year population growth in 2015- 2030 in both the 2007 and 2017 forecasts. Recent studies, however, have shown a drop in the birth rate to record lows. More troubling, from a national health perspective is that the average age of death may have stopped rising. Those two factors point to lower population growth, especially if the government also restricts immi-gration. Thus, the US may be approaching a period of rather modest population growth.

All of the above factors point to minimal sales growth for electricity producers in the US--perhaps even lower than the seemingly conservative EIA estimates. But the cloud on the horizon has a silver lining in the shape of an electric car. Both the United Kingdom and France have set dates to end of production of automobiles with internal combustion engines. Several European car makers have declared that 20 percent of their output will be electric vehicles by the early 2020s. If we adopt automobiles powered by electricity and not gasoline or diesel, electricity sales would increase by one third. For the power indus-try, electric vehicles represent the next big thing.

We don’t pretend to know how electric car sales will progress. But assume vehicle turnover rates re-main at the current 7 percent per year and electric cars account for 5 percent of sales in the first five years (as op-posed to 1 percent now), 20 percent in the next five years and 50 percent in the third five year period. Wildly optimistic assumptions? Maybe. By 2030, electric cars would constitute 28 percent of the vehicle fleet. They would add about 10 percent to kilowatt hour sales by that date, assuming that battery efficiencies do not improved by then. Those added sales would require increased electric generation output, with low-emissions sources expected to cover almost all the growth globally. They would also raise long term growth rates for 2015-2030 from the present 0.3 percent to 1.0 percent. The slow upturn in demand should give the electric companies time to gear up so to speak.

In the meantime, weather will continue to play a big role in electricity consumption. Record heat-induced demand peaks are being set here in the US even as surging global demand puts power systems under strain worldwide.

Can we discern a pattern in weather conditions 15 years out? Maybe we can, but that is one topic we don’t expect a government agency to tackle in public right now. Meantime, weather will affect sales more than anything else and we cannot predict the weather. Or can we?

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North American Grid Reliability faces extreme weather, climate change, demand spikes, and renewable variability; utilities, AESO, and NERC stress resilience, dispatchable capacity, interconnections, and grid alerts to prevent blackouts during heatwaves and cold snaps.

Key Points

North American grid reliability is the ability to meet demand during extreme weather while maintaining stability.

✅ Extreme heat and cold drive record demand and resource strain.

✅ Balance dispatchable and intermittent generation for resilience.

✅ Expand interconnections, capacity, and demand response to avert outages.

The recent alerts in Alberta's electricity grid during extreme cold have highlighted a broader North American issue, where power systems are more susceptible to being overwhelmed by extreme weather impacts on reliability.

Electricity Canada's chief executive emphasized that no part of the grid is safe from the escalating intensity and frequency of weather extremes linked to climate change across the sector.

“In recent years, during these extreme weather events, we’ve observed record highs in electricity demand,” he stated.

“It’s a nationwide phenomenon. For instance, last summer in Ontario and last winter in Quebec, we experienced unprecedented demand levels. This pattern of extremes is becoming more pronounced across the country.”

The U.S. has also experienced strain on its electricity grids due to extreme weather, with more blackouts than peers documented in studies. Texas faced power outages in 2021 due to winter storms, and California has had to issue several emergency grid alerts during heat waves.

In Canada, Albertans received a government emergency alert two weeks ago, urging an immediate reduction in electricity use to prevent potential rotating blackouts as temperatures neared -40°C. No blackouts occurred, with a notable decrease in electricity use following the alert, according to the Alberta Electric System Operator (AESO).

AESO's data indicates an increase in grid alerts in Alberta for both heatwaves and cold spells, reflecting dangerous vulnerabilities noted nationwide. The period between 2017 and 2020 saw only four alerts, in contrast to 17 since 2021.

Alberta's electricity grid reliability has sparked political debate, including proposals for a western Canadian grid to improve reliability, particularly with the transition from coal-fired plants to increased reliance on intermittent wind and solar power. Despite this debate, the AESO noted that the crisis eased when wind and solar generation resumed, despite challenges with two idled gas plants.

Bradley pointed out that Alberta's grid issues are not isolated. Every Canadian region is experiencing growing electricity demand, partly due to the surge in electric vehicles and clean energy technologies. No province has a complete solution yet.

“Ontario has had to request reduced consumption during heatwaves,” he noted. “Similar concerns about energy mix are present in British Columbia or Manitoba, especially now with drought affecting their hydro-dependent systems.”

The North American Electric Reliability Corporation (NERC) released a report in November warning of elevated risks across North America this winter for insufficient energy supplies, particularly under extreme conditions like prolonged cold snaps.

While the U.S. is generally more susceptible to winter grid disruptions, and summer blackout warnings remain a concern, the report also highlights risks in parts of Canada. Saskatchewan faces a “high” risk due to increased demand, power plant retirements, and maintenance, whereas Quebec and the Maritimes are at “elevated risk.”

Mark Olson, NERC’s manager of reliability assessments, mentioned that Alberta wasn't initially considered at risk, illustrating the challenges in predicting electricity demand amid intensifying extreme weather.

Rob Thornton, president and CEO of the International District Energy Association, acknowledged public concerns about grid alerts but reassured that the risk of a catastrophic grid failure remains very low.

“The North American grid is exceptionally reliable. It’s a remarkably efficient system,” he said.

However, Thornton emphasized the importance of policies for a resilient and reliable electricity system through 2050 and beyond. This involves balancing dispatchable and intermittent electricity sources, investing in extra capacity, enhancing macrogrids and inter-jurisdictional connections, and more.

“These grid alerts raise awareness, if not anxiety, about our energy future,” Thornton concluded.

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France Negative Electricity Prices highlight surplus renewables as solar and wind output exceeds demand, driving grid flexibility, demand response, and storage signals while reshaping energy markets, lowering emissions, and improving economic efficiency and energy security.

Key Points

They occur when surplus solar and wind push wholesale power prices below zero, signaling flexible, low-carbon grids.

✅ Surplus solar and wind outpace demand, flipping price signals

✅ Incentivizes demand response, storage, and flexible loads

✅ Enhances decarbonization, energy security, and market efficiency

In a remarkable feat for renewable energy, France has recently experienced negative electricity prices due to an abundant supply of solar and wind power. This development highlights the country's progress towards sustainable energy solutions and underscores the potential of renewables to reshape global energy markets.

The Surge in Renewable Energy Supply

France's electricity grid benefited from a surplus of renewable energy generated by solar panels and wind turbines. During periods of peak production, such as sunny and windy days, the supply of electricity exceeded demand, leading to negative prices and reflecting how solar is reshaping price dynamics in Northern Europe.

Implications for Energy Markets

The occurrence of negative electricity prices reflects a shift towards a more flexible and responsive energy system. It demonstrates the capability of renewables to meet substantial portions of electricity demand reliably and economically, with evidence of falling wholesale prices in many markets, challenging traditional notions of energy supply and pricing dynamics.

Technological Advancements and Policy Support

Technological advancements in renewable energy infrastructure, coupled with supportive government policies and incentives, have played pivotal roles in France's achievement. Investments in solar farms, wind farms, and grid modernization, including the launch of France's largest battery storage platform by TagEnergy, have enhanced the efficiency and reliability of renewable energy integration into the national grid.

Economic and Environmental Benefits

The adoption of renewable energy sources not only reduces greenhouse gas emissions but also fosters economic growth and energy independence. By harnessing abundant solar and wind resources, France strengthens its energy security and reduces reliance on fossil fuels, contributing to long-term sustainability goals and reflecting a continental shift as renewable power has surpassed fossil fuels for the first time.

Challenges and Future Outlook

While France celebrates the success of negative electricity prices, challenges remain in scaling renewable energy deployment and optimizing grid management. Balancing supply and demand, integrating intermittent renewables, and investing in energy storage technologies are critical for ensuring grid stability and maximizing the benefits of renewable energy, particularly in addressing clean energy's curtailment challenge across modern grids.

Global Implications

France's experience with negative electricity prices serves as a model for other countries striving to transition to clean energy economies. It underscores the potential of renewables to drive economic prosperity, mitigate climate change impacts, and reshape global energy markets towards sustainability, as seen in Germany where solar-plus-storage is now cheaper than conventional power in several contexts.

Conclusion

France's achievement of negative electricity prices driven by renewable energy surplus marks a significant milestone in the global energy transition. By leveraging solar and wind power effectively, France demonstrates the feasibility and economic viability of renewable energy integration at scale. As countries worldwide seek to reduce carbon emissions and enhance energy resilience, France's example provides valuable insights and inspiration for advancing renewable energy agendas and accelerating towards a sustainable energy future.

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Canadian Hydropower Transmission delivers HVDC clean energy via New England Clean Energy Connect and Champlain Hudson Power Express, linking HydroQuébec to Maine and New York grids for renewable energy, decarbonization, and lower wholesale electricity rates.

Key Points

HVDC delivery of HydroQuébec power to New England and New York via NECEC and CHPE, cutting emissions and costs.

✅ 1,200 MW via NECEC; 1,000 MW via CHPE.

✅ HVDC routes: 145-mile NECEC and 333-mile CHPE.

✅ Debates: land impacts, climate justice, wholesale rates.

As the sole residents of unorganized territory T5 R7 deep within Maine's North Woods, Duane Hanson and his wife, Sally Kwan, have watched the land around them—known for its natural beauty, diverse wildlife and recreational fishing—transformed by decades of development. 

But what troubles them most is what could happen in the next few months. State and corporate officials are pushing for construction of a 53-mile-long power line corridor cutting right through the woods and abutting the wild lands surrounding Hanson's property. 

If its proponents succeed, Hanson fears the corridor may represent the beginning of the end of his ability to live "off the land" away from the noise of technology-obsessed modern society. Soon, that noise may be in his backyard. 

"I moved here to be in the pristine wilderness," said Hanson.
 
With his life in what he considers the last "wild" place left on the East Coast on the line, the stakes have never felt higher to Hanson—and many across New England, as well.

The corridor is part of the New England Clean Energy Connect, one of two major and highly controversial transmission line projects meant to deliver Canadian hydropower from the government-owned utility HydroQuébec, in a province that has closed the door on nuclear power, to New England electricity consumers. 

As New England states rush to green their electric grids and combat the accelerating climate crisis, the simultaneous push from Canada to expand the market for hydroelectric power from its vast water resources, including Manitoba's clean energy, has offered these states a critical lifeline at just the right moment. 

The other big hydropower transmission line project will deliver 1,000 megawatts of power, or enough to serve approximately one million residential customers, to the New York City metropolitan area, which includes the city, Long Island, and parts of the Hudson Valley, New Jersey, Connecticut and Pennsylvania. 

The 333-mile-long Champlain Hudson Power Express project will consist of two high voltage direct current cables running underground and underwater from Canada, beneath Lake Champlain and the Hudson River, to Astoria, Queens. 

There, the Champlain Hudson project will interconnect to a sector of the New York electricity grid where city and corporate officials say the hydropower supplied can help reduce the fossil fuels that currently comprise significantly more of the base load than in other parts of the state. Though New York has yet to finalize a contract with HydroQuébec over its hydropower purchase, developers plan to start construction on the $2.2 billion project in 2021 and say it will be operational in 2025. 

The New England project consists of 145 miles of new HVDC transmission line that will run largely above ground from the Canadian border, through Maine to Massachusetts. The $1 billion project, funded by Massachusetts electricity consumers, is expected to deliver 1,200 megawatts of clean energy to the New England energy grid, becoming the region's largest clean energy source. 

Central Maine Power, which will construct the Maine transmission corridor, says the project will decrease wholesale electric rates and create thousands of jobs. Company officials expect to receive all necessary permits and begin construction by the year's end, with the project completed and in service by 2020. 

With only months until developers start making both projects on-the-ground realities, they have seized public attention within, and beyond, their regions. 

Hanson is one among many concerned New England and New York residents who've joined the ranks of environmental activists in a contentious battle with public and corporate officials over the place of Canadian hydropower in their states' clean energy futures. 

Officials and transmission line proponents say importing Canadian hydropower offers an immediate and feasible way to help decarbonize electricity portfolios in New York and New England and to address existing transmission constraints that limit cross-border flows today, supporting their broader efforts to combat climate change. 

But some environmental activists say hydropower has a significant carbon footprint of its own. They fear the projects will make states look "greener" at the expense of the local environment, Indigenous communities, and ultimately, the climate. 

"We're talking about the most environmentally and economically just pathway" to decarbonization, said Annel Hernandez, associate director of the NYC Environmental Justice Alliance. "Canadian hydro is not going to provide that." 

To that end, environmental groups opposing Canadian hydropower say New York and New England should seize the moment to expedite local development of wind and solar power. 

Paul Gallay, president of the nonprofit environmental organization Riverkeeper—which withdrew its initial support for the Champlain Hudson Power Express last November— believes New York has the capacity to develop enough in-state renewable energy sources to meet its clean energy goals, without the new transmission line. 

Yet New York City's analysis shows clearly that Canadian hydropower is critical for its clean energy strategy, said Dan Zarrilli, director of OneNYC and New York City's chief climate policy adviser. 

"We need every bit of clean energy we can get our hands on," he said, to meet the city's goal of carbon neutrality by 2050 and help achieve the state's clean energy mandates. 

Removing Canadian hydropower from the equation, said Zarilli, would commit the city to the "unacceptable outcome" of burning more gas. The city's marginalized communities would likely suffer most from the resulting air pollution and associated health impacts. 

While the two camps debate Canadian hydropower's carbon footprint and what climate justice requires, this much is clear: When it comes to pursuing a zero-carbon future, there are no easy answers. 

Hydropower's Carbon Footprint
Many people take for granted that because hydropower production doesn't involve burning fossil fuels, it's a carbon-neutral endeavor. But that's not always the case, depending on where hydropower is sourced. 

Large-scale hydropower projects often involve the creation of hydroelectric dams and reservoirs, and, in some cases, repowering existing dams to generate clean electricity. The release and flow of water from the reservoir through the dam provides the energy necessary to generate hydropower, which long-distance power lines, or transmission lines, carry to its intended destination—in this case, New England and New York. 

The initial process of flooding land to create a hydroelectric reservoir can have a sizable carbon footprint, especially in heavily vegetated areas. It causes the vegetation and soil underwater to decompose, releasing carbon dioxide and methane—a greenhouse gas 84 times more potent over a 20-year period than carbon dioxide. 

Hydropower accounts for 60 percent of Canada's electricity generation, and HydroQuébec has planned to increase capacity to 37,000 MW in 2021, with the nation second only to China in the percentage of the world's total hydroelectricity it generates. By contrast, hydropower only accounts for seven percent of U.S. utility-scale electricity generation, making it a foreign concept to many Americans. 

As New England works to introduce substantial amounts of Canadian hydropower to its electricity grid, hydropower proponents are promoting it as a prime source for clean electricity, and new NB Power agreements are expanding regional transfers within Canada as well. 

Last fall, Central Maine Power formed its own political action committee, Clean Energy Matters, to advance the New England hydropower project. Together with HydroQuébec, the Maine utility has spent nearly $17 million campaigning for the project this year. 

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AEMC Storage Charging Rules spark industry backlash as Tesla, Snowy Hydro, and investors warn transmission charges on batteries and pumped hydro could deter grid-scale storage, distort the National Electricity Market, and slow decarbonisation.

Key Points

AEMC Storage Charging Rules are proposals to bill grid storage for network use, shaping costs and investment.

✅ Charges apply when batteries draw power; double-charging concerns.

✅ Tesla and Snowy Hydro warn of reduced viability and delays.

✅ AEMO recommends exemptions; investors seek certainty.

Tesla, Snowy Hydro and other big suppliers of storage capacity on Australia’s main electricity grid warn proposed rule changes amount to a tax on their operations that will deter investors and slow the decarbonisation of the industry.

The Australian Energy Market Commission (AEMC) will release its final decision this Thursday on new rules for integrating batteries, pumped hydro and other forms of storage.

The AEMC’s draft decision, released in July, angered many firms because it proposed charging storage providers for drawing power, ignoring a recommendation by the Australian Electricity Market Operator (AEMO) that they be exempt.

Battery maker Tesla, which has supplied some of the largest storage to the National Electricity Market, said in a submission that the charges would “kill the commercial viability of all grid storage projects, causing inefficient investment in alternative network”, with consumers paying higher costs.

Snowy Hydro, which is building the giant Snowy 2 pumped storage project and already operates a smaller one, said in its submission the proposed changes if implemented would jeopardise investment.

“This is a major policy change, amounting to a tax on infrastructure critical to achieving a renewable future,” Snowy Hydro said.

AEMO itself argued it was important storage providers were not “disincentivised from connecting to the transmission network, as they generally provide a net benefit to the power system by charging at periods of low demand”.

Australia’s electricity grid faces economic and engineering challenges, similar to Ontario's storage push as it adjusts to the arrival of lower cost and also lower carbon alternatives to fossil fuels.

While rule changes are necessary to account for operators that can both draw from and supply power, how they are implemented can have long-lasting effects on the technologies that get encouraged or repelled, including control of EV charging issues, independent experts say.

“It doesn’t have to be this way,” said Bruce Mountain, director of the Victoria Energy Policy Centre. “In Britain, where the UK grid transformation is underway, the regulator dealing with the same issues has said that storage devices don’t pay the system charges when they withdraw electricity from the grid,” he said.

The prospect that storage operators will have to pay transmission charges could “drastically” affect their profitability since their business models rely on the difference between the price their pay for power and how much they can sell it for. Gas generators and network monopolies would benefit from the change, Mountain said.

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An AEMC spokesperson said the commission had consulted widely, including from those who objected to the payment for transmission access.

“The market is moving towards a future that will be increasingly reliant on energy storage to firm up the growing volume of renewable energy and deliver on the increasing need for critical system security services, with examples such as EVs supporting grid stability in California as the ageing fleet of thermal generators retire,” the spokesperson said, declining to elaborate on the final ruling before it is published.

“The regulatory framework needs to facilitate this transition as the energy sector continues to decarbonise,” the official said.

AusNet, which operates the Victorian energy transmission grid, said that while “technological neutrality is paramount for battery and hybrid unit connections to both the distribution and transmission networks,” it did not back charging storage access to networks in all cases.

“[Ausnet] supports a clear exemptions framework for energy storage providers,” a spokesperson said. “We recommend that batteries and other hybrid facilities should have transmission use of system charges waived if they provide a net benefit to network customers.”

We are not aware of anyone that supports the charging storage access to networks in all circumstances.

“Batteries and hybrid facilities that consume energy from the network should be provided no preferential treatment relative to other customers and generators.”

Jonathan Upson, a principal at Strategic Renewable Consulting, though, said the AEMC wants electricity flowing through batteries to be taxed twice to pay network charges – once when the electricity charges the battery and then again when the same electricity is sent out by the battery an hour or two later but this time with customers paying.

“The AEMC’s draft decision has the identical rationale for eliminating franking credits on all dividends, resulting in double taxing of company profits,” he said.

Christiaan Zuur, director of energy transformation at the Clean Energy Council, said that while much of AEMC’s draft proposal was constructive, “those benefits are either nullified or maybe even outweighed” by uncertainty over charges.

“Risk perception” will be important since potential newcomers won’t be sure of what charges they will pay to connect to the grid and existing operators could have their connection agreements reopened, Zuur said.

“Investors focus on the potential risk. It does factor through to the integral costs for projects,” he said.

The outcome of new charges may prompt more people to put batteries on their premises and draw power from their own solar panels, Mountain said, with rising EV adoption introducing new grid challenges, cutting their reliance on a centralised network.

“Ironically, it encourages customers to depend less and less on the grid,” he said. “It’s almost like the capture of the dominant interests playing out over time at their own expense.”

Separately, the latest edition of the Clean Energy Council Confidence Index shows leadership by state governments is helping to shore up investor appetite for investing in renewable energy amid 2021 electricity lessons even with higher 2030 emissions reduction goals from the federal government.

Overall, investor confidence increased by a point in the last six months – from 6.3 to 7.3 out of 10 – following strong commitments and policy development from state governments, particularly on the east coast, the council said.

“The results of this latest survey illustrate the economic value in policy that lowers the emissions footprint of our electricity generation, supporting regional centres and creating jobs. Investors recognise the opportunities created by limiting global temperature rise to 1.5 degrees,” said council chief executive Kane Thornton.

Among the states, NSW, Victoria and Queensland led in terms of positive investor sentiment.

Correction: this article was amended on 30 November. An earlier version stated Ausnet supported charging storage for network access. A spokesperson said it backed a waiver on charges if certain conditions are met.        

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Great Northern Transmission Line delivers 250 MW of carbon-free hydropower from Manitoba Hydro, strengthening Midwest grid reliability, enabling wind storage balancing, and advancing Minnesota Power's EnergyForward strategy for cleaner, renewable energy across the region.

Key Points

A 500 kV cross-border line delivering 250 MW of carbon-free hydropower, strengthening reliability and enabling renewables.

✅ 500 kV, 224-mile line from Manitoba to Minnesota

✅ Delivers 250 MW hydropower via ALLETE-Minnesota Power

✅ Enables wind storage and grid balancing with Manitoba Hydro

Minnesota Power, a utility division of ALLETE Inc. (NYSE:ALE), has energized its Great Northern Transmission Line, bringing online an innovative delivery and storage system for renewable energy that spans two states and one Canadian province, similar to the Maritime Link project in Atlantic Canada.

The 500 kV line is now delivering 250 megawatts of carbon-free hydropower from Manitoba, Canada, to Minnesota Power customers.

Minnesota Power completed the Great Northern Transmission Line (GNTL) in February 2020, ahead of schedule and under budget. The 224-mile line runs from the Canadian border in Roseau County to a substation near Grand Rapids, Minnesota. It consists of 800 tower structures which were fabricated in the United States and used 10,000 tons of North American steel. About 2,200 miles of wire were required to install the line's conductors. The GNTL also is contributing significant property tax revenue to local communities along the route.

"This is such an incredible achievement for Minnesota Power, ALLETE, and our region, and is the culmination of a decade-long vision brought to life by our talented and dedicated employees," said ALLETE President and CEO Bethany Owen. "The GNTL will help Minnesota Power to provide our customers with 50 percent renewable energy less than a year from now. As part of our EnergyForward strategy, it also strengthens the grid across the Midwest and in Canada, enhancing reliability for all of our customers."

With the GNTL energized and connected to Manitoba Hydro's recently completed Manitoba-Minnesota Transmission Project at the border, the companies now have a unique "wind storage" mechanism that quickly balances energy supply and demand in Minnesota and Manitoba, and enables a larger role for renewables in the North American energy grid.

The GNTL and its delivery of carbon-free hydropower are important components of Minnesota Power's EnergyForward strategy to transition away from coal and add renewable power sources while maintaining reliable and affordable service for customers, echoing interties like the Maritime Link that facilitate regional power flows. It also is part of a broader ALLETE strategy to advance and invest in critical regional transmission and distribution infrastructure, such as the TransWest Express transmission project, to ensure grid integrity and enable cleaner energy to reduce carbon emissions.

"The seed for this renewable energy initiative was planted in 2008 when Minnesota Power proposed purchasing 250 megawatts of hydropower from Manitoba Hydro. Beyond the transmission line, it also included a creative asset swap to move wind power from North Dakota to Minnesota, innovative power purchase agreements, and a remarkable advocacy process to find an acceptable route for the GNTL," said ALLETE Executive Chairman Al Hodnik. "It marries wind and water in a unique connection that will help transform the energy landscape of North America and reduce carbon emissions related to the existential threat of climate change."

Minnesota Power and Manitoba Hydro, a provincial Crown Corporation, coordinated on the project from the beginning, navigating National Energy Board reviews along the way. It is based on the companies' shared values of integrity, environmental stewardship and community engagement.

"The completion of Minnesota Power's Great Northern Transmission Line and our Manitoba-Minnesota Transmission Project is a testament to the creativity, perseverance, cooperation and skills of hundreds of people over so many years on both sides of the border," said Jay Grewal, president and CEO of Manitoba Hydro. "Perhaps even more importantly, it is a testament to the wonderful, longstanding relationship between our two companies and two countries. It shows just how much we can accomplish when we all work together toward a common goal."

Minnesota Power engaged federal, state and local agencies; the sovereign Red Lake Nation and other tribes, reflecting First Nations involvement in major transmission planning; and landowners along the proposed routes beginning in 2012. Through 75 voluntary meetings and other outreach forums, a preferred route was selected with strong support from stakeholders that was approved by the Minnesota Public Utilities Commission in April 2016.

A four-year state and federal regulatory process culminated in late 2016 when the federal Department of Energy approved a Presidential Permit for the GNTL, similar to the New England Clean Power Link process, needed because of the international border crossing. Construction of the line began in early 2017.

"A robust stakeholder process is essential to the success of any project, but especially when building a project of this scope," Owen said. "We appreciated the early engagement and support from stakeholders, local communities and tribes, agencies and regulators through the many approval milestones to the completion of the GNTL."

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