Province pays to give away power

EU Electricity Price Limits are proposed by the European Commission to curb contagion from gas prices, bolster energy security, stabilize the power market, and manage inflation via LNG imports, gas storage, and reduced demand.

Key Points

Temporary power-price caps to curb gas contagion, shield consumers, and bolster EU energy security.

✅ Limits decouple electricity from volatile gas benchmarks

✅ Short-term LNG imports and storage to enhance supply security

✅ Market design reforms and demand reduction to tame prices

The European Union should consider emergency measures in the coming weeks that could include price cap strategies on electricity prices, European Commission President Ursula von der Leyen told leaders at an EU summit in Versailles.

The reference to the possible measures was contained in a slide deck Ms. von der Leyen used to discuss efforts to curb the EU’s reliance on Russian energy imports, which last year accounted for about 40% of its natural-gas consumption. The slides were posted to Ms. von der Leyen’s Twitter account.

Russia’s invasion of Ukraine has highlighted the vulnerability of Europe’s energy supplies to severe supply disruptions and raised fears that imports could be cut off by Moscow or because of damage to pipelines that run across Ukraine. It has also driven energy prices up sharply, contributing to worries about inflation and economic growth.

Earlier this week, the European Commission, the EU’s executive arm, published the outline of a plan that it said could cut imports of Russian natural gas by two-thirds this year and end the need for those imports entirely before 2030, aligning with calls to ditch fossil fuels in Europe. In the short-term, the plan relies largely on storing natural gas ahead of next winter’s heating season, reducing consumption and boosting imports of liquefied natural gas from other producers.

The Commission acknowledged in its report that high energy prices are rippling through the economy, even as European gas prices have fallen back toward pre-war levels, raising manufacturing costs for energy-intensive businesses and putting pressure on low-income households. It said it would consult “as a matter of urgency” and propose options for dealing with high prices.

The slide deck used by Ms. von der Leyen on Thursday said the Commission plans by the end of March to present emergency options “to limit the contagion effect of gas prices in electricity prices, including temporary price limits, even though rolling back electricity prices can be complex under current market rules.” It also intends this month to set up a task force to prepare for next winter and a proposal for a gas storage policy.

By mid-May, the Commission will set out options to revamp the electricity market and issue a proposal for phasing out EU dependency on Russian fossil fuels by 2027, according to the slides.

French President Emmanuel Macron said Thursday that Europe needs to protect its citizens and companies from the increase in energy prices, adding that some countries, including France, have already taken some national measures.

“If this lasts, we will need to have a more long-lasting European mechanism,” he said. “We will give a mandate to the Commission so that by the end of the month we can get all the necessary legislation ready.”

The problem with price limits is that they reduce the incentive for people and businesses to consume less, said Daniel Gros, distinguished fellow at the Centre for European Policy Studies, a Brussels think tank. He said low-income families and perhaps some businesses will need help dealing with high prices, but that should come as a lump-sum payment that isn’t tied to how much energy they are consuming.

“The key will be to let the price signal work,” Mr. Gros said in a paper published this week, which argued that high energy prices could result in lower demand in Europe and Asia, reducing the need for Russian natural gas. “Energy must be expensive so that people save energy,” he said.

Ms. von der Leyen’s slides suggest the EU hopes to replace 60 billion cubic meters of Russian gas with alternative suppliers, including suppliers of liquefied natural gas, by the end of this year. Another 27 billion cubic meters could be replaced through a combination of hydrogen and EU production of biomethane, according to the slide deck.

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BC Hydro Winter Payment Plan lets customers spread electricity bills over six months during cold weather, easing costs amid colder-than-average temperatures in British Columbia, with low-income conservation support, energy-saving kits, and insulation upgrades.

Key Points

Allows BC Hydro customers to spread winter electricity bills over six months, with added low-income efficiency support.

✅ Spread Dec-Mar bills across six months

✅ Eases costs during colder-than-average temperatures

✅ Includes low-income conservation and energy-saving kits

As colder temperatures set in across the province again this weekend, BC Hydro says it is activating its winter payment plan to give customers the opportunity to spread out their electricity bills as demand can reach record levels during extreme cold periods.

"Our meteorologists are predicting colder-than-average temperatures will continue over the next of couple of months and we want to provide customers with help to manage their payments," said Chris O'Riley, BC Hydro's president.

All BC Hydro customers will be able to spread payments from the billing period spanning Dec. 1, 2017 to March 31, 2018 over a six-month period.

Cold weather in the second half of December 2017 led to surging electricity demand that was higher than the previous 10-year average and has at times hit all-time highs during peak usage periods, according to BC Hydro.

Hydro operations also respond to summer conditions, as drought and low rainfall can force adjustments in power generation strategies.

People who heat their homes with electricity — about 40 per cent of British Columbians —  have the highest overall bills in the province, $197 more in December than in July, when air conditioning use can affect energy costs.

This is the second year the Crown corporation has activated a cold-weather payment plan, part of broader customer assistance programs it offers.  

BC Hydro has also increased funding for its low-income conservation programs by $2.2 million for a total of $10 million over the next three years. 

The low-income program provides energy-saving kits that include things like free energy assessments, insulation upgrades and weather stripping. 

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BC Hydro Asset Management Audit confirms disciplined oversight of dams, generators, power lines, substations, and transformers, with robust lifecycle planning, reliability metrics, and capital investment sustaining aging infrastructure and near full-capacity performance.

Key Points

Audit confirming BC Hydro's asset governance and lifecycle planning, ensuring safe, reliable grid infrastructure.

✅ $25B in assets; many facilities operating near full capacity.

✅ 80% of assets are dams, generators, lines, poles, substations, transformers.

✅ $2.5B invested in renewal, repair, and replacement in fiscal 2018.

A report by B.C.’s auditor-general says B.C. Hydro is doing a good job managing the province’s dams, generating stations and power lines, including storm response during severe weather events.

Carol Bellringer says in the audit that B.C. Hydro’s assets are valued at more than $25 billion and even though some generating facilities are more than 85 years old they continue to operate near full-capacity and can accommodate holiday demand peaks when needed.

The report says about 80 per cent of Hydro’s assets are dams, generators, power lines, poles, substations and transformers that are used to provide electrical service to B.C., where residential electricity use shifted during the pandemic.

The audit says Hydro invested almost $2.5 billion to renew, repair or replace the assets it manages during the last fiscal year, ending March 31, 2018, and, in a broader context, bill relief has been offered to only part of the province.

Bellringer’s audit doesn’t examine the $10.7 billion Site C dam project, which is currently under construction in northeast B.C. and not slated for completion until 2024.

She says the audit examined whether B.C. Hydro has the information, practices, processes and systems needed to support good asset management, at a time when other utilities are dealing with pandemic impacts on operations.

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Clorox Enel 70 MW VPPA accelerates renewable energy, sourcing Texas solar from the Roadrunner project to support 100% renewable electricity, Scope 2 reductions, and grid decarbonization through a virtual power purchase agreement starting in 2021.

Key Points

A 12-year virtual power purchase agreement for 70 MW of Texas solar to advance Clorox's 100% renewable electricity goal.

✅ 12-year contract supporting 100% renewable electricity by 2021

✅ Supplies 70 MW from Enel's Roadrunner solar project in Texas

✅ Cuts Scope 2 emissions via grid-delivered virtual PPA

The Clorox Company and a wholly owned subsidiary of Enel Green Power North America announced today the signing of a 12-year, 70 megawatt (MW) virtual power purchase agreement (VPPA) for the purchase of renewable energy, aligned with carbon-free electricity investments across the power sector beginning in 2021. Representing about half of Clorox's 100% renewable electricity goal in its operations in the U.S. and Canada, this agreement is expected to help Clorox accelerate achieving its goal in 2021, four years ahead of the company's original plan.

"Climate change and rising greenhouse gas emissions pose a real threat to the health of our planet and ultimately the long-term well-being of people globally. That's why we've taken action for more than 10 years to measure and reduce the carbon footprint of our operations," said Benno Dorer, chair and CEO, The Clorox Company. "Our agreement with Enel helps to expand U.S. renewable energy infrastructure, reflecting our view that companies like Clorox play an important role in addressing global climate change, as landmark policies like the U.S. climate deal further accelerate the transition. We believe this agreement will significantly contribute toward Clorox achieving our goal of 100% renewable electricity in our operations in the U.S. and Canada in 2021, four years earlier than originally planned. Our commitment to climate stewardship is an important pillar of our new IGNITE strategy and part of our overall efforts to drive Good Growth – growth that's profitable, sustainable and responsible."

The 70MW VPPA between Clorox and Enel Green Power North America for the purchase of renewable energy delivered to the electricity grid is for the second phase of Enel's Roadrunner solar project to be built in Texas, and complement global clean energy collaborations such as Canada-Germany hydrogen cooperation announced recently. Roadrunner is a 497-direct current megawatt (MWdc) solar project that is being built in two phases. The first phase, currently under construction, comprises around 252 MWdc and is expected to be completed by the end of 2019, while the remaining 245 MWdc of capacity is expected to be completed by the end of 2020. Once fully operational, the solar plant could generate up to 1.2 terawatt-hours (TWh) of electricity annually, while avoiding an estimated 800,000 metric tons of carbon dioxide emissions per year.

Based on the U.S. Environmental Protection Agency Greenhouse Gas Equivalencies Calculator[i], this VPPA is estimated to avoid approximately 140,000 metric tons of CO2 emissions each year. This is equivalent to the annual impact that 165,000 acres of U.S. forest can have in removing CO2 from the atmosphere, and illustrates why cleaning up Canada's electricity is central to emissions reductions in the power sector, or the carbon impact of the electricity needed to power more than 24,000 U.S. homes annually.

"We are proud to support Clorox on their path towards 100% renewable electricity in its operations in the U.S. and Canada by helping them achieve about half their goal through this agreement," said Georgios Papadimitriou, head of Enel Green Power North America. "This agreement with Clorox reinforces the continued significance of renewable energy as a fundamental part of any company's sustainability strategy."

Schneider Electric Energy & Sustainability Services advised Clorox on this power purchase agreement and, amid heightened investor attention exemplified by the Duke Energy climate report, supported the company in its project selection, analysis, negotiations and deal execution.

Clorox Commits to Scope 1, 2 and 3 Science-Based Targets

For more than 10 years, Clorox has consistently achieved its goals to reduce greenhouse gas emissions in its operations. Clorox is focused on setting emissions reduction targets in line with climate science. As a participant in the Science Based Targets Initiative, Clorox has committed to setting and achieving science-based greenhouse gas emissions reduction targets in its operations (Scopes 1 and 2) and across its value chain (Scope 3), and consistent with national pathways such as Canada's net-zero 2050 target pursued by policymakers. The targets are considered "science-based" if they are in line with what the latest climate science says is necessary to meet the goals of the 2015 Paris Agreement – a global environmental accord to address climate change and its negative impacts.

Clorox's climate stewardship goals are part of its new integrated corporate strategy called IGNITE, which includes several other environmental, social and governance (ESG) goals and reflects lessons from Canada's electricity progress in scaling clean power. More comprehensive information about Clorox's IGNITE ESG goals can be found here. Information on Clorox's 2020 ESG strategy can be found in its fiscal year 2019 annual report.

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Heavy-Duty Truck Electrification is disrupting the aftermarket as diesel declines: fewer parts, regenerative braking, emissions rules, e-drives, gearboxes, and software engineering needs reshape service demand, while ICE fleets persist for years.

Key Points

Transition of heavy trucks to EV systems, reducing parts and emissions while reshaping aftermarket service and skills.

✅ 33% fewer parts; regenerative braking slashes brake wear

✅ Diesel share declines; EVs and natural gas slowly gain

✅ Aftermarket shifts to e-drives, gearboxes, software and service

Those who sell parts and repair trucks might feel uneasy when reports emerge about a coming generation of electric trucks.

There are reportedly about 33% fewer parts to consider when internal combustion engines and transmissions are replaced by electric motors. Features such as regenerative braking are expected to dramatically reduce brake wear. As for many of the fluids needed to keep components moving? They can remain in their tanks and drums.

Think of them as disruptors. But presenters during the annual Heavy Duty Aftermarket Dialogue are stressing that the changes are not coming overnight. Chris Patterson, a consultant and former Daimler Trucks North America CEO, noted that the Daimler electrification plan underscores the shift as he counts just 50 electrified heavy trucks in North America.

About 88% of today’s trucks run on diesel, with the remaining 12% mostly powered by gasoline, said John Blodgett, MacKay and Company’s vice-president of sales and marketing. Five years out, even amid talk of an EV inflection point, he expects 1% to be electric, 2% to be natural gas, 12% to be gasoline, and 84% on diesel.

But a decade from now, forecasts suggest a split of 76% diesel, 11% gasoline, 7% electric, and 5% natural gas, with a fraction of a percent relying on hydrogen-electric power. Existing internal combustion engines will still be in service, and need to be serviced, but aftermarket suppliers are now preparing for their roles in the mix, especially as Canada’s EV opportunity comes into focus for North American players.

“This is real, for sure,” said Delphi Technologies CEO Rick Dauch.

Aftermarket support is needed
“As programs are launched five to six years from now, what are the parts coming back?” he asked the crowd. “Braking and steering. The fuel injection business will go down, but not for 20-25 years.” The electric vehicles will also require a gear box and motor.

“You still have a business model,” he assured the crowd of aftermarket professionals.

Shifting emissions standards are largely responsible for the transformation that is occurring. In Europe, Volkswagen’s diesel emissions scandal and future emissions rules of Euro 7 will essentially sideline diesel-powered cars, even as electric buses have yet to take over transit systems. Delphi’s light-duty diesel business has dropped 70% in just five years, leading to plant closures in Spain, France and England.

“We’ve got a billion-dollar business in electrification, last year down $200 million because of the downturn in light-duty diesel controllers,” Dauch said. “We think we’re going to double our electrification business in five years.”

That has meant opening five new plants in Eastern European markets like Turkey, Romania and Poland alone.

Deciding when the market will emerge is no small task, however. One new plant in China offered manufacturing capacity in July 2019, but it has yet to make any electric vehicle parts, highlighting mainstream EV challenges tied to policy shifts, because the Chinese government changed the incentive plans for electric vehicles.

‘All in’ on electric vehicles
Dana has also gone “all in” on electrification, said chairman and CEO Jim Kamsickas, referring to Dana’s work on e-drives with Kenworth and Peterbilt. Its gasket business is focusing on the needs of battery cooling systems and enclosures.

But he also puts the demand for new electric vehicle systems in perspective. “The mechanical piece is still going to be there.”

The demand for the new components and systems, however, has both companies challenged to find enough capable software engineers. Delphi has 1,600 of them now, and it needs more.

“Just being a motor supplier, just being an inverter supplier, just being a gearbox supplier itself, yes you’ll get value out of that. But in the longhaul you’re going to need to have engineers,” Kamsickas said of the work to develop systems.

Dauch noted that Delphi will leave the capital-intensive work of producing batteries to other companies in markets like China and Korea. “We’re going to make the systems that are in between – inverters, chargers, battery management systems,” he said.

Difficult change
But people working for European companies that have been built around diesel components are facing difficult days. Dauch refers to one German village with a population of 1,200, about 800 of whom build diesel engine parts. That business is working furiously to shift to producing gasoline parts.

Electrification will face hurdles of its own, of course. Major cities around the world are looking to ban diesel-powered vehicles by 2050, but they still lack the infrastructure needed to charge all the cars and truck fleet charging at scale, he added.

Kamsickas welcomes the disruptive forces.

“This is great,” he said. “It’s making us all think a little differently. It’s just that business models have had to pivot – for you, for us, for everybody.”

They need to be balanced against other business demands, including evolving cross-border EV collaboration dynamics, too.

Said Kamsickas: “Working through the disruption of electrification, it’s how do you financially manage that? Oh, by the way, the last time I checked there are [company] shareholders and stakeholders you need to take care of.”

“It’s going to be tough,” Dauch agreed, referring to the changes for suppliers. “The next three to four years are really going to be game changes. “There’ll be some survivors and some losers, that’s for sure.”

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Ukraine Winter Energy Crisis highlights blackouts, damaged grid, and resilient solutions: solar panels, generators, wood stoves, district heating, batteries, and energy efficiency campaigns backed by EU and US aid to support communities through harsh winters.

Key Points

A wartime surge of blackouts driving resilient, off-grid and efficiency solutions to keep heat and power flowing.

✅ Solar panels, batteries, and generators stabilize essential loads

✅ Wood stoves and district heating maintain winter warmth

✅ Efficiency upgrades and aid bolster grid resilience

As winter sets in across Ukraine, the country faces not only the bitter cold but also the ongoing energy crisis exacerbated by Russia’s invasion. Over the past year, Ukraine has experienced widespread blackouts due to targeted strikes on its power infrastructure. With the harsh winter conditions ahead, Ukrainians are finding innovative ways to adapt to these energy challenges and to keep the lights on this winter despite shortages. From relying on alternative power sources to implementing energy-saving measures, the Ukrainian population is demonstrating resilience in the face of adversity.

The Energy Crisis in Ukraine

Since the onset of the war in February 2022, Ukraine’s energy infrastructure has become a prime target for Russian missile strikes. Power plants, electrical grids, and transmission lines have all been hit, causing significant damage to the nation’s energy systems, as Ukraine fights to keep the lights on amid repeated attacks. As a result, millions of Ukrainians have faced regular power outages, especially in the winter months when energy demand surges due to heating needs.

The situation has been compounded by the difficulty of repairing damaged infrastructure while the war continues. Many areas, particularly in eastern and southern Ukraine, still suffer from limited access to electricity, heating, and water, with strikes in western Ukraine occasionally causing further disruptions. With no end in sight to the conflict, the Ukrainian government and its citizens are being forced to think outside the box to ensure they can survive the harsh winter months.

Alternative Energy Sources: Solar Power and Generators

In response to these energy shortages, many Ukrainians are turning to alternative energy sources, particularly solar power and generators. Solar energy, which has been growing in popularity over the past decade, is seen as a promising solution. Solar panels can be installed on homes, schools, and businesses, providing a renewable source of electricity. During the day, the sun provides much-needed energy to power lights, appliances, and even heating systems in homes. While solar power may not fully replace the energy lost during blackouts, it can significantly reduce dependency on the grid, and recent electricity reserve updates suggest fewer planned outages if attacks abate.

To make solar power more accessible, many local and international organizations are providing solar panels and batteries to Ukrainians. These efforts have been critical, especially in rural areas where access to the national grid may be sporadic or unreliable. Additionally, solar-powered streetlights and community energy hubs are being set up in various cities to provide essential services during prolonged outages.

Generators, too, have become a vital tool for many households. Portable generators allow people to maintain some level of comfort during blackouts, powering essential appliances like refrigerators, stoves, and even small heaters. While generators are not a permanent solution, they offer a crucial lifeline when the grid is down for extended periods.

Wood and Coal Stoves: A Return to the Past

In addition to modern energy solutions, many Ukrainians are returning to more traditional sources of energy, such as wood and coal stoves. These methods of heating, while old-fashioned, are still widely available and effective. With gas shortages affecting the country and electricity supplies often unreliable, wood and coal stoves have become an essential part of daily life for many households.

Firewood is being sourced locally, and many Ukrainians are collecting and stockpiling it in preparation for the colder months. While this reliance on solid fuels presents environmental concerns, it remains one of the most feasible options for families living in rural areas or in homes without access to reliable electricity.

Moreover, some urban areas have seen a revival of district heating systems, where heat is generated centrally and distributed throughout a network of buildings. This system, although not without its challenges, is helping to provide warmth to thousands of people in larger cities like Kyiv and Lviv.

Energy Conservation and Efficiency

Beyond alternative energy sources, many Ukrainians are taking measures to reduce their energy consumption. Energy conservation has become a key strategy in dealing with blackouts, as individuals and families aim to minimize their reliance on the national grid. Simple steps like using energy-efficient appliances, sealing windows and doors to prevent heat loss, and limiting the use of electric heating have all become commonplace.

The Ukrainian government, in collaboration with international partners, has also launched campaigns to encourage energy-saving behaviors. These include public information campaigns on how to reduce energy consumption and initiatives to improve the insulation of homes and buildings. By promoting energy efficiency, Ukraine is not only making the most of its limited resources but also preparing for long-term sustainability.

The Role of the International Community

The international community has played a crucial role in helping Ukraine navigate the energy crisis. Several countries and organizations have provided funding, technology, and expertise to assist Ukraine in repairing its power infrastructure and implementing alternative energy solutions. For example, the United States and the European Union have supplied Ukraine with generators, solar panels, and other renewable energy technologies, though U.S. support for grid restoration has recently ended in some areas of assistance. This support has been vital in ensuring that Ukrainians can meet their energy needs despite the ongoing conflict.

In addition, humanitarian organizations have been working to provide emergency relief, including distributing winter clothing, heaters, and fuel to the most vulnerable populations, and Ukraine helped Spain amid blackouts earlier this year, underscoring reciprocal resilience. The global response has been a testament to the solidarity that exists for Ukraine in its time of need.

As winter arrives, Ukrainians are finding creative and resourceful ways to deal with the ongoing energy crisis caused by the war, reflecting the notion that electricity is civilization on the front lines. While the situation remains difficult, the country's reliance on alternative energy sources, traditional heating methods, and energy conservation measures demonstrates a remarkable level of resilience. With continued support from the international community and a commitment to innovation, Ukraine is determined to overcome the challenges of blackouts and ensure that its people can survive the harsh winter months ahead.

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